Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | ||
Sep. 30, 2013 | Oct. 25, 2013 | Oct. 25, 2013 | |
Common Class A [Member] | Common Class B [Member] | ||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 30,626,115 | 6,254,949 | |
Entity Registrant Name | GREENLIGHT CAPITAL RE, LTD. | ||
Entity Central Index Key | 1385613 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-Q | ||
Document Period End Date | 30-Sep-13 | ||
Document Fiscal Year Focus | 2013 | ||
Document Fiscal Period Focus | Q3 | ||
Amendment Flag | FALSE |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Investments | ||
Debt instruments, trading, at fair value | $12,499 | $1,763 |
Equity securities, trading, at fair value | 1,030,207 | 1,042,715 |
Other investments, at fair value | 107,246 | 133,450 |
Total investments | 1,149,952 | 1,177,928 |
Cash and cash equivalents | 83,683 | 21,890 |
Restricted cash and cash equivalents | 1,316,584 | 1,206,837 |
Financial contracts receivable, at fair value | 85,555 | 22,744 |
Reinsurance balances receivable | 195,064 | 173,221 |
Loss and loss adjustment expenses recoverable | 17,996 | 34,451 |
Deferred acquisition costs, net | 62,083 | 59,177 |
Unearned premiums ceded | 3,143 | 3,616 |
Notes receivable | 15,784 | 19,330 |
Other assets | 4,048 | 3,559 |
Total assets | 2,933,892 | 2,722,753 |
Liabilities | ||
Securities sold, not yet purchased, at fair value | 1,065,072 | 908,368 |
Financial contracts payable, at fair value | 17,962 | 19,637 |
Due to prime brokers | 239,074 | 326,488 |
Loss and loss adjustment expense reserves | 325,652 | 356,470 |
Unearned premium reserves | 191,310 | 188,185 |
Reinsurance balances payable | 38,922 | 35,292 |
Funds withheld | 9,469 | 17,415 |
Other liabilities | 12,018 | 10,488 |
Performance compensation payable to related party | 33,818 | 0 |
Total liabilities | 1,933,297 | 1,862,343 |
Equity | ||
Preferred share capital (par value $0.10; authorized, 50,000,000; none issued) | 0 | 0 |
Ordinary share capital (Class A: par value $0.10; authorized, 100,000,000; issued and outstanding, 30,622,458 (2012: 30,447,179): Class B: par value $0.10; authorized, 25,000,000; issued and outstanding, 6,254,949 (2012: 6,254,949)) | 3,688 | 3,670 |
Additional paid-in capital | 495,610 | 492,469 |
Retained earnings | 467,338 | 325,569 |
Shareholders' equity attributable to shareholders | 966,636 | 821,708 |
Non-controlling interest in joint venture | 33,959 | 38,702 |
Total equity | 1,000,595 | 860,410 |
Total liabilities and equity | $2,933,892 | $2,722,753 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Shareholders' equity | ||
Preferred share capital, par value (in dollars per share) | $0.10 | $0.10 |
Preferred share capital, authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred share capital, issued (in shares) | 0 | 0 |
Common Class A [Member] | ||
Shareholders' equity | ||
Ordinary share capital, par value (in dollars per share) | $0.10 | $0.10 |
Ordinary share capital, authorized (in shares) | 100,000,000 | 100,000,000 |
Ordinary share capital, issued (in shares) | 30,622,458 | 30,447,179 |
Ordinary share capital, outstanding (in shares) | 30,622,458 | 30,447,179 |
Common Class B [Member] | ||
Shareholders' equity | ||
Ordinary share capital, par value (in dollars per share) | $0.10 | $0.10 |
Ordinary share capital, authorized (in shares) | 25,000,000 | 25,000,000 |
Ordinary share capital, issued (in shares) | 6,254,949 | 6,254,949 |
Ordinary share capital, outstanding (in shares) | 6,254,949 | 6,254,949 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues | ||||
Gross premiums written | $148,765 | $67,644 | $410,927 | $303,850 |
Gross premiums ceded | -2,389 | 30,637 | -925 | 24,244 |
Net premiums written | 146,376 | 98,281 | 410,002 | 328,094 |
Change in net unearned premium reserves | 17,515 | 18,276 | -3,640 | 20,065 |
Net premiums earned | 163,891 | 116,557 | 406,362 | 348,159 |
Net investment income | 49,448 | 96,450 | 134,834 | 131,161 |
Other income (expense), net | -1 | 191 | -100 | -256 |
Total revenues | 213,338 | 213,198 | 541,096 | 479,064 |
Expenses | ||||
Loss and loss adjustment expenses incurred, net | 94,366 | 126,624 | 238,989 | 277,268 |
Acquisition costs, net | 53,521 | 33,820 | 137,753 | 107,751 |
General and administrative expenses | 7,085 | 4,637 | 16,788 | 13,619 |
Total expenses | 154,972 | 165,081 | 393,530 | 398,638 |
Income before income tax expense | 58,366 | 48,117 | 147,566 | 80,426 |
Income tax expense | -90 | -645 | -540 | -707 |
Net income including non-controlling interest | 58,276 | 47,472 | 147,026 | 79,719 |
Income attributable to non-controlling interest in joint venture | -1,740 | -1,335 | -5,257 | -4,518 |
Net income | $56,536 | $46,137 | $141,769 | $75,201 |
Earnings per share | ||||
Basic | $1.53 | $1.26 | $3.85 | $2.05 |
Diluted | $1.50 | $1.23 | $3.78 | $2.01 |
Weighted average number of ordinary shares used in the determination of earnings per share | ||||
Basic | 36,875,716 | 36,678,653 | 36,820,199 | 36,630,136 |
Diluted | 37,645,053 | 37,402,725 | 37,541,623 | 37,360,049 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Total | Ordinary share capital [Member] | Additional paid-in capital [Member] | Retained earnings [Member] | Shareholders' equity attributable to shareholders [Member] | Non-controlling interest in joint venture [Member] |
In Thousands, unless otherwise specified | ||||||
Balance at Dec. 31, 2011 | $845,698 | $3,654 | $488,478 | $310,971 | $803,103 | $42,595 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issue of Class A ordinary shares, net of forfeitures | 14 | 14 | 0 | 0 | 14 | 0 |
Share-based compensation expense, net of forfeitures | 2,784 | 0 | 2,784 | 0 | 2,784 | 0 |
Non-controlling interest withdrawal from joint venture, net | -34,000 | 0 | 0 | 0 | 0 | -34,000 |
Income attributable to non-controlling interest in joint venture | 4,518 | 0 | 0 | 0 | 0 | 4,518 |
Net income | 75,201 | 0 | 0 | 75,201 | 75,201 | 0 |
Balance at Sep. 30, 2012 | 894,215 | 3,668 | 491,262 | 386,172 | 881,102 | 13,113 |
Balance at Dec. 31, 2012 | 860,410 | 3,670 | 492,469 | 325,569 | 821,708 | 38,702 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issue of Class A ordinary shares, net of forfeitures | 527 | 18 | 509 | 0 | 527 | 0 |
Share-based compensation expense, net of forfeitures | 2,632 | 0 | 2,632 | 0 | 2,632 | 0 |
Non-controlling interest withdrawal from joint venture, net | -10,000 | 0 | 0 | 0 | 0 | -10,000 |
Income attributable to non-controlling interest in joint venture | 5,257 | 0 | 0 | 0 | 0 | 5,257 |
Net income | 141,769 | 0 | 0 | 141,769 | 141,769 | 0 |
Balance at Sep. 30, 2013 | $1,000,595 | $3,688 | $495,610 | $467,338 | $966,636 | $33,959 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of Cash Flows [Abstract] | ||
Net income | $141,769 | $75,201 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities | ||
Net change in unrealized gains and losses on investments and financial contracts | -69,660 | -168,321 |
Net realized (gains) losses on investments and financial contracts | -117,271 | -18,542 |
Foreign exchange gains (losses) on restricted cash and cash equivalents | 15,205 | 218 |
Income attributable to non-controlling interest in joint venture | 5,257 | 4,518 |
Share-based compensation expense, net of forfeitures | 2,646 | 2,798 |
Depreciation expense | 222 | 188 |
Reinsurance balances receivable | -21,843 | -43,790 |
Loss and loss adjustment expenses recoverable | 16,455 | -4,248 |
Deferred acquisition costs, net | -2,906 | 10,990 |
Unearned premiums ceded | 473 | 21,192 |
Other assets | -27 | 1,751 |
Loss and loss adjustment expense reserves | -30,818 | 108,116 |
Unearned premium reserves | 3,125 | -40,682 |
Reinsurance balances payable | 3,630 | 4,097 |
Funds withheld | -7,946 | -19,598 |
Other liabilities | 1,530 | 206 |
Performance compensation payable to related party | 33,818 | 31,646 |
Net cash (used in) provided by operating activities | -56,751 | -34,696 |
Investing activities | ||
Purchases of investments, trading | -540,222 | -628,887 |
Sales of investments, trading | 790,513 | 640,943 |
Purchases of financial contracts | -57,748 | -43,416 |
Dispositions of financial contracts | 67,282 | 17,664 |
Securities sold, not yet purchased | 700,299 | 726,902 |
Dispositions of securities sold, not yet purchased | -652,999 | -367,478 |
Change in due to prime brokers | -87,414 | 36,380 |
Change in restricted cash and cash equivalents, net | -94,542 | -331,754 |
Change in notes receivable, net | 3,546 | -1,641 |
Non-controlling interest withdrawal from joint venture | -10,000 | -34,000 |
Fixed assets additions | -684 | 0 |
Net cash provided by (used in) investing activities | 118,031 | 14,713 |
Financing activities | ||
Net proceeds from exercise of stock options | 513 | 0 |
Net cash provided by financing activities | 513 | 0 |
Net (decrease) increase in cash and cash equivalents | 61,793 | -19,983 |
Cash and cash equivalents at beginning of the period | 21,890 | 42,284 |
Cash and cash equivalents at end of the period | 83,683 | 22,301 |
Interest paid in cash | 19,907 | 17,765 |
Interest received in cash | 793 | 855 |
Income tax paid in cash | $260 | $206 |
ORGANIZATION_AND_BASIS_OF_PRES
ORGANIZATION AND BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | ORGANIZATION AND BASIS OF PRESENTATION |
Greenlight Capital Re, Ltd. ("GLRE") was incorporated as an exempted company under the Companies Law of the Cayman Islands on July 13, 2004. GLRE’s principal wholly-owned subsidiary, Greenlight Reinsurance, Ltd. ("Greenlight Re"), provides global specialty property and casualty reinsurance. Greenlight Re has a Class D insurer license issued in accordance with the terms of The Insurance Law, 2010 and underlying regulations thereto (the "Law") and is subject to regulation by the Cayman Islands Monetary Authority, ("CIMA"), in terms of the Law. Greenlight Re commenced underwriting in April 2006. Effective May 30, 2007, GLRE completed an initial public offering of 11,787,500 Class A ordinary shares at $19.00 per share. Concurrently, 2,631,579 Class B ordinary shares of GLRE were sold at $19.00 per share in a private placement offering. During 2008, Verdant Holding Company, Ltd. ("Verdant"), a wholly owned subsidiary of GLRE, was incorporated in the state of Delaware. During 2010, GLRE established Greenlight Reinsurance Ireland, Ltd. ("GRIL"), a wholly-owned reinsurance subsidiary based in Dublin, Ireland. GRIL is authorized as a non-life reinsurance undertaking in accordance with the provisions of the European Communities (Reinsurance) Regulations 2006 ("Irish Regulations"). GRIL provides multi-line property and casualty reinsurance capacity to the European broker market and provides GLRE with an additional platform to serve clients located in Europe and North America. As used herein, the "Company" refers collectively to GLRE and its subsidiaries. | |
The Class A ordinary shares of GLRE are listed on Nasdaq Global Select Market under the symbol "GLRE". | |
These unaudited condensed consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete consolidated financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2012. In the opinion of management, these unaudited condensed consolidated financial statements reflect all of the normal recurring adjustments considered necessary for a fair presentation of the Company’s financial position and results of operations as of the dates and for the periods presented. | |
The results for the nine months ended September 30, 2013 are not necessarily indicative of the results expected for the full calendar year. |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Accounting Policies [Abstract] | ||||||||||||
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES | |||||||||||
Use of Estimates | ||||||||||||
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses during the period. Actual results could differ from these estimates. | ||||||||||||
Restricted Cash and Cash Equivalents | ||||||||||||
The Company is required to maintain certain cash in segregated accounts with prime brokers and derivative counterparties. The amount of restricted cash held by prime brokers is primarily used to support the liability created from securities sold, not yet purchased, and for collateralizing the letters of credit issued under certain letter of credit facilities (see Notes 4 and 8). The amount of cash encumbered varies depending on the market value of the securities sold, not yet purchased, and letters of credit issued. In addition, derivative counterparties require cash collateral to support the current value of any amounts that may be due to the counterparty based on the value of the underlying financial instrument. | ||||||||||||
Deferred Acquisition Costs | ||||||||||||
Policy acquisition costs, such as commission and brokerage costs, relate directly to, and vary with, the writing of reinsurance contracts. Acquisition costs relating solely to bound contracts are deferred subject to ultimate recoverability and are amortized over the related contract term. The Company evaluates the recoverability of deferred acquisition costs by determining if the sum of future earned premiums and anticipated investment income is greater than the expected future claims and expenses. If a loss is probable on the unexpired portion of policies in force, a premium deficiency loss is recognized. At September 30, 2013 and December 31, 2012, the deferred acquisition costs were considered fully recoverable and no premium deficiency loss was recorded. | ||||||||||||
Acquisition costs also include profit commissions, which are expensed when incurred. Profit commissions are calculated and accrued based on the expected loss experience for contracts and recorded when the current loss estimate indicates that a profit commission is probable under the contract terms. As of September 30, 2013, $10.9 million (December 31, 2012: $9.6 million) of profit commission reserves were included in reinsurance balances payable on the condensed consolidated balance sheets. For the three and nine months ended September 30, 2013, $0.9 million and $2.1 million (2012: $0.9 million and $1.3 million) of net profit commission expenses were included in acquisition costs, respectively, on the condensed consolidated statements of income. | ||||||||||||
Loss and Loss Adjustment Expense Reserves and Recoverable | ||||||||||||
The Company establishes reserves for contracts based on estimates of the ultimate cost of all losses including losses incurred but not reported ("IBNR"). These estimated ultimate reserves are based on the Company’s own actuarial estimates derived from reports received from ceding companies, industry data and historical experience. These estimates are reviewed by the Company periodically on a contract by contract basis and adjusted as necessary. Since reserves are estimates, the final settlement of losses may vary from the reserves established and any adjustments to the estimates, which may be material, are recorded in the period they are determined. | ||||||||||||
Loss and loss adjustment expenses recoverable include the amounts due from retrocessionaires for unpaid loss and loss adjustment expenses on retrocession agreements. Ceded losses incurred but not reported are estimated based on the Company’s actuarial estimates. These estimates are reviewed periodically and adjusted when deemed necessary. The Company may not be able to ultimately recover the loss and loss adjustment expense recoverable amounts due to the retrocessionaires’ inability to pay. The Company regularly evaluates the financial condition of its retrocessionaires and records provisions for uncollectible reinsurance expenses recoverable when recovery is no longer probable. | ||||||||||||
Notes Receivable | ||||||||||||
Notes receivable include promissory notes receivable from third party entities. These notes are recorded at cost along with accrued interest, if any, which approximates the fair value. The Company regularly reviews all notes receivable individually for impairment and records provisions for uncollectible and non-performing notes. The Company places notes on non-accrual status when the value of the note is not considered impaired but there is uncertainty as to the collection of interest based on the terms of the note. The Company resumes accrual of interest on a note when none of the principal or interest remains past due or outstanding, and the Company expects to collect the remaining contractual principal and interest. Interest collected on notes that are placed on non-accrual status is treated on a cash-basis and recorded as interest income when collected, provided that the recorded value of the note is deemed to be fully collectible. Where doubt exists as to the collectability of the remaining recorded value of the notes placed on non-accrual status, any payments received are applied to reduce the recorded value of the notes. | ||||||||||||
For the nine months ended September 30, 2013, the notes receivable earned interest at annual interest rates ranging from 10.0% to 16.0% and had remaining maturity terms ranging from approximately 2 years to 6 years. Interest income earned on notes receivable is included under net investment income in the condensed consolidated statements of income. | ||||||||||||
At September 30, 2013, included in the notes receivable balance was $10.5 million (December 31, 2012: $16.5 million), related to a note placed on non-accrual status based on expectations of the Company’s ability to collect any interest that would accrue up to maturity. For the nine months ended September 30, 2013 and 2012, no interest was received relating to the notes placed on non-accrual status. During the nine months ended September 30, 2013 and 2012, the Company recorded an impairment charge of $6.0 million and nil, respectively, relating to the accrued interest and principal on the note placed on non-accrual status. There were no impairment charges for the three months ended September 30, 2013 and 2012. Impairment charges are included under net investment income in the condensed consolidated statements of income. | ||||||||||||
At September 30, 2013, included in the notes receivable balance was $0.1 million of accrued interest (December 31, 2012: $2.0 million). Based on management’s assessment, the recorded values of the notes receivable, net of valuation allowance, at September 30, 2013 and December 31, 2012, were expected to be fully collectible and therefore no other provision for uncollectible amounts was deemed necessary at September 30, 2013 or December 31, 2012. | ||||||||||||
Deposit Assets and Liabilities | ||||||||||||
In accordance with U.S. GAAP, deposit accounting is used in the event that a reinsurance contract does not transfer sufficient risk, or a contract provides retroactive reinsurance. Any losses on such contracts are charged to earnings immediately. Any gains relating to such contracts are deferred and amortized over the estimated remaining settlement period. All such deferred gains are included in reinsurance balances payable in the condensed consolidated balance sheets. Amortized gains are recorded in the condensed consolidated statements of income as other income. At September 30, 2013, included in the condensed consolidated balance sheets under reinsurance balances receivable and reinsurance balances payable were $2.5 million and $0 of deposit assets and deposit liabilities (December 31, 2012: $5.1 million and $0.7 million), respectively. For the three and nine months ended September 30, 2013, $0.0 million and $0.5 million, respectively, was included in other income (expense), net, relating to losses on deposit accounted contracts (2012: $0.0 million and $0.2 million). For the three and nine months ended September 30, 2013 and 2012, there were no gains on deposit accounted contracts. | ||||||||||||
Fixed Assets | ||||||||||||
Fixed assets are included in other assets on the condensed consolidated balance sheets and are recorded at cost when acquired. Fixed assets are comprised of computer software, furniture and fixtures and leasehold improvements and are depreciated, using the straight-line method, over their estimated useful lives, which are five years for both computer software, and furniture and fixtures. Leasehold improvements are amortized over the lesser of the estimated useful lives of the assets or remaining lease term. | ||||||||||||
At September 30, 2013, the cost, accumulated depreciation and net book values of the fixed assets were as follows: | ||||||||||||
Cost | Accumulated depreciation | |||||||||||
Net book value | ||||||||||||
($ in thousands) | ||||||||||||
Computer software | $ | 200 | $ | (200 | ) | $ | — | |||||
Furniture and fixtures | 620 | (309 | ) | 311 | ||||||||
Leasehold improvements | 2,002 | (637 | ) | 1,365 | ||||||||
Total | $ | 2,822 | $ | (1,146 | ) | $ | 1,676 | |||||
At December 31, 2012, the cost, accumulated depreciation and net book values of the fixed assets were as follows: | ||||||||||||
Cost | Accumulated depreciation | |||||||||||
Net book value | ||||||||||||
($ in thousands) | ||||||||||||
Computer software | $ | 200 | $ | (200 | ) | $ | — | |||||
Furniture and fixtures | 451 | (232 | ) | 219 | ||||||||
Leasehold improvements | 1,487 | (492 | ) | 995 | ||||||||
Total | $ | 2,138 | $ | (924 | ) | $ | 1,214 | |||||
The Company periodically reviews fixed assets that have finite lives, and that are not held for sale, for impairment by comparing the carrying value of the assets to their estimated future undiscounted cash flows. For the nine months ended September 30, 2013 and 2012, there were no impairments in fixed assets. | ||||||||||||
Financial Instruments | ||||||||||||
Investments in Securities and Investments in Securities Sold, Not Yet Purchased | ||||||||||||
The Company’s investments in debt instruments and equity securities that are classified as "trading securities" are carried at fair value. The fair values of the listed equity investments are derived based on quoted prices (unadjusted) in active markets for identical assets (Level 1 inputs). The fair values of listed equities that have restrictions on sale or transfer which expire within one year, are determined by adjusting the observed market price of the equity using a liquidity discount based on observable market inputs. The fair values of debt instruments are derived based on inputs that are observable, either directly or indirectly, such as market maker or broker quotes reflecting recent transactions (Level 2 inputs), and are generally derived based on the average of multiple market maker or broker quotes which are considered to be binding. Where quotes are not available, debt instruments are valued using cash flow models using assumptions and estimates that may be subjective and non-observable (Level 3 inputs). | ||||||||||||
The Company’s "other investments" may include investments in private and unlisted equity securities, limited partnerships, and commodities, which are all carried at fair value. The fair values of commodities are determined based on quoted prices in active markets for identical assets (Level 1). The Company maximizes the use of observable direct or indirect inputs (Level 2 inputs) when deriving the fair values for "other investments". For limited partnerships and private and unlisted equity securities, where observable inputs are not available, the fair values are derived based on unobservable inputs (Level 3 inputs) such as management’s assumptions developed from available information using the services of the investment advisor, including the most recent net asset values obtained from the managers of those underlying investments. | ||||||||||||
For securities classified as "trading securities" and "other investments", any realized and unrealized gains or losses are determined on the basis of the specific identification method (by reference to cost or amortized cost, as appropriate) and included in net investment income in the condensed consolidated statements of income. | ||||||||||||
Dividend income and expense are recorded on the ex-dividend date. The ex-dividend date is the date as of when the underlying security must have been traded to be eligible for the dividend declared. Interest income and interest expense are recorded on an accrual basis. | ||||||||||||
Derivative Financial Instruments | ||||||||||||
U.S. GAAP requires that an entity recognize all derivatives in the balance sheet at fair value. It also requires that unrealized gains and losses resulting from changes in fair value be included in income or comprehensive income, depending on whether the instrument qualifies as a hedge transaction, and if so, the type of hedge transaction. The Company’s derivative financial instrument assets are included in financial contracts receivable. Derivative financial instrument liabilities are generally included in financial contracts payable. The Company's derivatives do not qualify as hedges for financial reporting purposes and are recorded in the condensed consolidated balance sheets on a gross basis and not offset against any collateral pledged or received. Pursuant to the International Swaps and Derivatives Association ("ISDA") master agreements, securities lending agreements and other derivatives agreements, the Company and its counterparties typically have the ability to net certain payments owed to each other in specified circumstances. In addition, in the event a party to one of the ISDA master agreements, securities lending agreements or other derivatives agreements defaults, or a transaction is otherwise subject to termination, the non-defaulting party generally has the right to set off against payments owed to the defaulting party or collateral held by the non-defaulting party. | ||||||||||||
Financial Contracts | ||||||||||||
The Company enters into financial contracts with counterparties as part of its investment strategy. Financial contracts which include total return swaps, credit default swaps ("CDS"), futures, options, currency forwards and other derivative instruments are recorded at their fair value with any unrealized gains and losses included in net investment income in the consolidated statements of income. Financial contracts receivable represents derivative contracts whereby, based upon the contract's current fair value, the Company will be entitled to receive payments upon settlement of the contract. Financial contracts payable represents derivative contracts whereby, based upon the contract's current fair value, the Company will be obligated to make payments upon settlement of the contract. | ||||||||||||
Total return swap agreements, included on the condensed consolidated balance sheets as financial contracts receivable and financial contracts payable, are derivative financial instruments whereby the Company is either entitled to receive or obligated to pay the product of a notional amount multiplied by the movement in an underlying security, which the Company may not own, over a specified time frame. In addition, the Company may also be obligated to pay or receive other payments based on interest rates, dividend payments and receipts, or foreign exchange movements during a specified period. The Company measures its rights or obligations to the counterparty based on the fair value movements of the underlying security together with any other payments due. These contracts are carried at fair value, based on observable inputs (Level 2 inputs) with the resultant unrealized gains and losses reflected in net investment income in the consolidated statements of income. Additionally, any changes in the value of amounts received or paid on swap contracts are reported as a gain or loss in net investment income in the condensed consolidated statements of income. | ||||||||||||
Financial contracts may also include exchange traded futures or options contracts that are based on the movement of a particular index, equity security, commodity, currency or interest rate. Where such contracts are traded in an active market, the Company’s obligations or rights on these contracts are recorded at fair value based on the observable quoted prices of the same or similar financial contracts in an active market (Level 1) or on broker quotes which reflect market information based on actual transactions (Level 2). Amounts invested in exchange traded options and over the counter ("OTC") options are recorded either as an asset or liability at inception. Subsequent to initial recognition, unexpired exchange traded option contracts are recorded at fair value based on quoted prices in active markets (Level 1). For OTC options or exchange traded options where a quoted price in an active market is not available, fair values are derived based upon observable inputs (Level 2) such as multiple quotes from brokers and market makers, which are considered to be binding. | ||||||||||||
The Company purchases and sells CDS for strategic investment purposes. A CDS is a derivative instrument that provides protection against an investment loss due to specified credit or default events of a reference entity. The seller of a CDS guarantees to pay the buyer a specified amount if the reference entity defaults on its obligations or fails to perform. The buyer of a CDS pays a premium over time to the seller in exchange for obtaining this protection. A CDS trading in an active market is valued at fair value based on broker or market maker quotes for identical instruments in an active market (Level 2) or based on the current credit spreads on identical contracts (Level 2). | ||||||||||||
Comprehensive Income (Loss) | ||||||||||||
The Company has no other comprehensive income (loss), other than the net income (loss) disclosed in the condensed consolidated statements of income. | ||||||||||||
Earnings Per Share | ||||||||||||
Basic earnings per share are based on the weighted average number of common shares and participating securities outstanding during the period. Diluted earnings per share includes the dilutive effect of restricted stock units ("RSU") and additional potential common shares issuable when stock options are exercised and are determined using the treasury stock method. The Company treats its unvested restricted stock as participating securities in accordance with U.S. GAAP, which requires that unvested stock awards which contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid (referred to as "participating securities"), be included in the number of shares outstanding for both basic and diluted earnings per share calculations. In the event of a net loss, all RSUs, stock options outstanding and all participating securities are excluded from the calculation of both basic and diluted loss per share since their inclusion would be anti-dilutive. | ||||||||||||
Three months ended September 30 | Nine months ended September 30 | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Weighted average shares outstanding - basic | 36,875,716 | 36,678,653 | 36,820,199 | 36,630,136 | ||||||||
Effect of dilutive service provider share-based awards | 157,281 | 147,659 | 150,039 | 148,518 | ||||||||
Effect of dilutive employee and director share-based awards | 612,056 | 576,413 | 571,385 | 581,395 | ||||||||
Weighted average share outstanding - diluted | 37,645,053 | 37,402,725 | 37,541,623 | 37,360,049 | ||||||||
Anti-dilutive stock options outstanding | 180,000 | 180,000 | 218,197 | 180,000 | ||||||||
Taxation | ||||||||||||
Under current Cayman Islands law, no corporate entity, including GLRE and Greenlight Re, is obligated to pay taxes in the Cayman Islands on either income or capital gains. The Company has an undertaking from the Governor-in-Cabinet of the Cayman Islands, pursuant to the provisions of the Tax Concessions Law, as amended, that, in the event that the Cayman Islands enacts any legislation that imposes tax on profits, income, gains or appreciations, or any tax in the nature of estate duty or inheritance tax, such tax will not be applicable to GLRE, Greenlight Re nor their respective operations, or to the Class A or Class B ordinary shares or related obligations, until February 1, 2025. | ||||||||||||
Verdant is incorporated in Delaware and therefore is subject to taxes in accordance with the U.S. federal rates and regulations prescribed by the U.S. Internal Revenue Service. Verdant’s taxable income is generally expected to be taxed at a rate of 35%. | ||||||||||||
GRIL is incorporated in Ireland and therefore is subject to the Irish corporation tax rate of 12.5% on its trading income, and 25% on its non-trading income, if any. | ||||||||||||
Any deferred tax asset is evaluated for recovery and a valuation allowance is recorded when it is more likely than not that the deferred tax asset will not be realized in the future. The Company has not taken any income tax positions that are subject to significant uncertainty or that are reasonably likely to have a material impact on the Company. | ||||||||||||
Recently Adopted Accounting Standards | ||||||||||||
In January 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2013-01 ("ASU 2013-01"), Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. ASU 2013-01 clarifies the scope of Accounting Standards Update No. 2011-11 ("ASU 2011-11"), Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities. ASU 2011-11 originally required enhanced disclosures by requiring improved information about financial instruments and derivative instruments. ASU 2013-01 clarifies that ASU 2011-11 applies to derivatives including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset or subject to an enforceable master netting arrangement or similar agreement. ASU 2013-01 also clarifies that other types of financial assets and financial liabilities subject to a master netting arrangement are no longer subject to the disclosure requirements of ASU 2011-11. ASU 2011-11 and ASU 2013-01 became effective for the Company during the first quarter of 2013 with retrospective disclosure required for all comparative periods presented. The adoption of ASU 2011-11 and ASU 2013-01 did not have a material impact on the Company’s results of operations or financial position as it only affected the Company's disclosures. |
FINANCIAL_INSTRUMENTS
FINANCIAL INSTRUMENTS | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS | ||||||||||||||||||||||||||||||||
In the normal course of its business, the Company purchases and sells various financial instruments, which include listed and unlisted equities, corporate and sovereign debt, commodities, futures, put and call options, currency forwards, other derivatives and similar instruments sold, not yet purchased. | |||||||||||||||||||||||||||||||||
Fair Value Hierarchy | |||||||||||||||||||||||||||||||||
The Company’s financial instruments are carried at fair value, and the net unrealized gains or losses are included in net investment income in the condensed consolidated statements of income. | |||||||||||||||||||||||||||||||||
The following table presents the Company’s investments, categorized by the level of the fair value hierarchy as of September 30, 2013: | |||||||||||||||||||||||||||||||||
Fair value measurements as of September 30, 2013 | |||||||||||||||||||||||||||||||||
Quoted prices in | Significant other | Significant | Total | ||||||||||||||||||||||||||||||
active markets | observable | unobservable | |||||||||||||||||||||||||||||||
Description | (Level 1) | inputs | inputs | ||||||||||||||||||||||||||||||
(Level 2) | (Level 3) | ||||||||||||||||||||||||||||||||
Assets: | ($ in thousands) | ||||||||||||||||||||||||||||||||
Debt instruments | $ | — | $ | 4,057 | $ | 8,442 | $ | 12,499 | |||||||||||||||||||||||||
Listed equity securities | 1,023,312 | 6,895 | — | 1,030,207 | |||||||||||||||||||||||||||||
Commodities | 67,149 | — | — | 67,149 | |||||||||||||||||||||||||||||
Private and unlisted equity securities | — | — | 40,097 | 40,097 | |||||||||||||||||||||||||||||
Financial contracts receivable | 715 | 84,840 | — | 85,555 | |||||||||||||||||||||||||||||
$ | 1,091,176 | $ | 95,792 | $ | 48,539 | $ | 1,235,507 | ||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||
Listed equity securities, sold not yet purchased | $ | (873,594 | ) | $ | — | $ | — | $ | (873,594 | ) | |||||||||||||||||||||||
Debt instruments, sold not yet purchased | — | (191,478 | ) | — | (191,478 | ) | |||||||||||||||||||||||||||
Financial contracts payable | — | (17,962 | ) | — | (17,962 | ) | |||||||||||||||||||||||||||
$ | (873,594 | ) | $ | (209,440 | ) | $ | — | $ | (1,083,034 | ) | |||||||||||||||||||||||
The following table presents the Company’s investments, categorized by the level of the fair value hierarchy as of December 31, 2012: | |||||||||||||||||||||||||||||||||
Fair value measurements as of December 31, 2012 | |||||||||||||||||||||||||||||||||
Quoted prices in | Significant other | Significant | Total | ||||||||||||||||||||||||||||||
active markets | observable | unobservable | |||||||||||||||||||||||||||||||
Description | (Level 1) | inputs | inputs | ||||||||||||||||||||||||||||||
(Level 2) | (Level 3) | ||||||||||||||||||||||||||||||||
Assets: | ($ in thousands) | ||||||||||||||||||||||||||||||||
Debt instruments | $ | — | $ | 1,503 | $ | 260 | $ | 1,763 | |||||||||||||||||||||||||
Listed equity securities | 1,040,562 | 2,153 | — | 1,042,715 | |||||||||||||||||||||||||||||
Commodities | 94,649 | — | — | 94,649 | |||||||||||||||||||||||||||||
Private and unlisted equity securities | — | — | 38,801 | 38,801 | |||||||||||||||||||||||||||||
Financial contracts receivable | — | 22,744 | — | 22,744 | |||||||||||||||||||||||||||||
$ | 1,135,211 | $ | 26,400 | $ | 39,061 | $ | 1,200,672 | ||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||
Listed equity securities, sold not yet purchased | $ | (679,897 | ) | $ | — | $ | — | $ | (679,897 | ) | |||||||||||||||||||||||
Debt instruments, sold not yet purchased | — | (228,471 | ) | — | (228,471 | ) | |||||||||||||||||||||||||||
Financial contracts payable | — | (19,637 | ) | — | (19,637 | ) | |||||||||||||||||||||||||||
$ | (679,897 | ) | $ | (248,108 | ) | $ | — | $ | (928,005 | ) | |||||||||||||||||||||||
The following table presents the reconciliation of the balances for all investments measured at fair value using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2013: | |||||||||||||||||||||||||||||||||
2013 | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||||||||||||
Debt instruments | Private and unlisted equity securities | Total | Debt instruments | Private and unlisted equity securities | Total | ||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 4,838 | $ | 43,257 | $ | 48,095 | $ | 260 | $ | 38,801 | $ | 39,061 | |||||||||||||||||||||
Purchases | 3,604 | 416 | 4,020 | 8,230 | 31,756 | 39,986 | |||||||||||||||||||||||||||
Sales | — | (829 | ) | (829 | ) | (28 | ) | (6,934 | ) | (6,962 | ) | ||||||||||||||||||||||
Issuances | — | — | — | — | — | — | |||||||||||||||||||||||||||
Settlements | — | — | — | — | — | — | |||||||||||||||||||||||||||
Total realized and unrealized gains (losses) and amortization included in earnings, net | — | 2,198 | 2,198 | (20 | ) | 1,055 | 1,035 | ||||||||||||||||||||||||||
Transfers into Level 3 | — | — | — | — | — | — | |||||||||||||||||||||||||||
Transfers out of Level 3 | — | (4,945 | ) | (4,945 | ) | — | (24,581 | ) | (24,581 | ) | |||||||||||||||||||||||
Ending balance | $ | 8,442 | $ | 40,097 | $ | 48,539 | $ | 8,442 | $ | 40,097 | $ | 48,539 | |||||||||||||||||||||
During the three and nine months ended September 30, 2013,$4.9 million of securities, at fair value based on the date of transfer, were transferred from Level 3 to Level 2, as these securities began actively trading on a listed exchange during the third quarter of 2013. However due to lock-up restrictions on these securities, they were classified as Level 2 upon transfer until the lock-up period expires. Additionally, during the nine months ended September 30, 2013, $19.6 million of securities at fair value based on the date of transfer, were transferred from Level 3 to Level 1 as these securities began actively trading on a listed exchange and there were no lock-up restrictions on these securities. During the nine months ended September 30, 2013, $2.4 million of securities at fair value based on the date of transfer, were transferred from Level 2 to Level 1 as the lock-up period restrictions on those securities expired. | |||||||||||||||||||||||||||||||||
The following table presents the reconciliation of the balances for all investments measured at fair value using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2012: | |||||||||||||||||||||||||||||||||
2012 | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||||||||||||
Debt instruments | Private and unlisted equity securities | Financial contracts receivable | Total | Debt instruments | Private and unlisted equity securities | Financial contracts receivable | Total | ||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 343 | $ | 38,805 | $ | 14 | $ | 39,162 | $ | 465 | $ | 31,179 | $ | 263 | $ | 31,907 | |||||||||||||||||
Purchases | — | 365 | — | 365 | — | 7,277 | — | 7,277 | |||||||||||||||||||||||||
Sales | — | (300 | ) | — | (300 | ) | (1 | ) | (792 | ) | — | (793 | ) | ||||||||||||||||||||
Issuances | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Settlements | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Total realized and unrealized gains (losses) and amortization included in earnings, net | (4 | ) | 945 | (14 | ) | 927 | (125 | ) | 3,299 | (263 | ) | 2,911 | |||||||||||||||||||||
Transfers into Level 3 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Transfers out of Level 3 | — | (3,828 | ) | — | (3,828 | ) | — | (4,976 | ) | — | (4,976 | ) | |||||||||||||||||||||
Ending balance | $ | 339 | $ | 35,987 | $ | — | $ | 36,326 | $ | 339 | $ | 35,987 | $ | — | $ | 36,326 | |||||||||||||||||
During the three and nine months ended September 30, 2012, $1.0 million and $30.4 million, respectively, of securities at fair value based on the date of transfer, were transferred from Level 2 to Level 1 as the lock-up period restrictions on those securities expired. Additionally, for the three and nine months ended September 30, 2012, $3.8 million and $5.0 million, respectively, of securities at fair value based on the date of transfer, were transferred from Level 3 to Level 2, as these securities began actively trading on a listed exchange during the second quarter of 2012. However, due to lock-up period restrictions on these securities, a liquidity discount was used in determining their fair value at September 30, 2012, and therefore classified as Level 2. | |||||||||||||||||||||||||||||||||
There were no other transfers between Level 1, Level 2 or Level 3 during the three and nine months ended September 30, 2013 or 2012. | |||||||||||||||||||||||||||||||||
For the three and nine months ended September 30, 2013, included in net investment income in the condensed consolidated statements of income were realized gains relating to Level 3 securities of $0.3 million and $0.6 million, respectively (2012: realized gains of $0.1 million and $0.4 million, respectively). For Level 3 classified securities held as of the reporting date, the change in unrealized gains for the three and nine months ended September 30, 2013 were $1.2 million and $(1.5) million, respectively (2012: $0.8 million and $2.6 million, respectively). | |||||||||||||||||||||||||||||||||
Investments | |||||||||||||||||||||||||||||||||
Debt instruments, trading | |||||||||||||||||||||||||||||||||
At September 30, 2013, the following investments were included in debt instruments: | |||||||||||||||||||||||||||||||||
2013 | Cost/ | Unrealized | Unrealized | Fair | |||||||||||||||||||||||||||||
amortized | gains | losses | value | ||||||||||||||||||||||||||||||
cost | |||||||||||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||||||||||
Corporate debt – U.S. | $ | 10,318 | $ | — | $ | (1,876 | ) | $ | 8,442 | ||||||||||||||||||||||||
Corporate debt – Non U.S. | 3,761 | 306 | (10 | ) | 4,057 | ||||||||||||||||||||||||||||
Total debt instruments | $ | 14,079 | $ | 306 | $ | (1,886 | ) | $ | 12,499 | ||||||||||||||||||||||||
At December 31, 2012, the following investments were included in debt instruments: | |||||||||||||||||||||||||||||||||
2012 | Cost/ | Unrealized | Unrealized | Fair | |||||||||||||||||||||||||||||
amortized | gains | losses | value | ||||||||||||||||||||||||||||||
cost | |||||||||||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||||||||||
Corporate debt – U.S. | $ | 2,317 | $ | 205 | $ | (1,856 | ) | $ | 666 | ||||||||||||||||||||||||
Corporate debt – Non U.S. | 1,179 | — | (82 | ) | 1,097 | ||||||||||||||||||||||||||||
Total debt instruments | $ | 3,496 | $ | 205 | $ | (1,938 | ) | $ | 1,763 | ||||||||||||||||||||||||
The maturity distribution for debt instruments held at September 30, 2013 and December 31, 2012 was as follows: | |||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Cost/ | Fair | Cost/ | Fair | ||||||||||||||||||||||||||||||
amortized | value | amortized | value | ||||||||||||||||||||||||||||||
cost | cost | ||||||||||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||||||||||
Within one year | $ | 8,202 | $ | 8,202 | $ | — | $ | — | |||||||||||||||||||||||||
From one to five years | — | — | — | — | |||||||||||||||||||||||||||||
From five to ten years | — | — | — | — | |||||||||||||||||||||||||||||
More than ten years | 5,877 | 4,297 | 3,496 | 1,763 | |||||||||||||||||||||||||||||
$ | 14,079 | $ | 12,499 | $ | 3,496 | $ | 1,763 | ||||||||||||||||||||||||||
Investment in Equity Securities, Trading | |||||||||||||||||||||||||||||||||
At September 30, 2013, the following long positions were included in investment securities, trading: | |||||||||||||||||||||||||||||||||
2013 | Cost | Unrealized | Unrealized | Fair | |||||||||||||||||||||||||||||
gains | losses | value | |||||||||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||||||||||
Equities – listed | $ | 752,732 | $ | 271,262 | $ | (24,075 | ) | $ | 999,919 | ||||||||||||||||||||||||
Exchange traded funds | 50,253 | — | (19,965 | ) | 30,288 | ||||||||||||||||||||||||||||
$ | 802,985 | $ | 271,262 | $ | (44,040 | ) | $ | 1,030,207 | |||||||||||||||||||||||||
At December 31, 2012, the following long positions were included in investment securities, trading: | |||||||||||||||||||||||||||||||||
2012 | Cost | Unrealized | Unrealized | Fair | |||||||||||||||||||||||||||||
gains | losses | value | |||||||||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||||||||||
Equities – listed | $ | 875,322 | $ | 199,519 | $ | (70,275 | ) | $ | 1,004,566 | ||||||||||||||||||||||||
Exchange traded funds | 38,819 | — | (670 | ) | 38,149 | ||||||||||||||||||||||||||||
$ | 914,141 | $ | 199,519 | $ | (70,945 | ) | $ | 1,042,715 | |||||||||||||||||||||||||
Other Investments | |||||||||||||||||||||||||||||||||
"Other investments" include commodities and private and unlisted equity securities. As of September 30, 2013 and December 31, 2012, commodities were comprised of gold bullion. | |||||||||||||||||||||||||||||||||
At September 30, 2013, the following securities were included in other investments: | |||||||||||||||||||||||||||||||||
2013 | Cost | Unrealized | Unrealized | Fair | |||||||||||||||||||||||||||||
gains | losses | value | |||||||||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||||||||||
Commodities | $ | 54,633 | $ | 12,516 | $ | — | $ | 67,149 | |||||||||||||||||||||||||
Private and unlisted equity securities | 39,421 | 8,425 | (7,749 | ) | 40,097 | ||||||||||||||||||||||||||||
$ | 94,054 | $ | 20,941 | $ | (7,749 | ) | $ | 107,246 | |||||||||||||||||||||||||
At December 31, 2012, the following securities were included in other investments: | |||||||||||||||||||||||||||||||||
2012 | Cost | Unrealized | Unrealized | Fair | |||||||||||||||||||||||||||||
gains | losses | value | |||||||||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||||||||||
Commodities | $ | 59,929 | $ | 34,719 | $ | — | $ | 94,648 | |||||||||||||||||||||||||
Private and unlisted equity securities | 36,672 | 4,914 | (2,784 | ) | 38,802 | ||||||||||||||||||||||||||||
$ | 96,601 | $ | 39,633 | $ | (2,784 | ) | $ | 133,450 | |||||||||||||||||||||||||
As of September 30, 2013, included in private and unlisted equity securities are investments in private equity funds with a fair value of $30.7 million (December 31, 2012: $24.3 million) determined based on unadjusted net asset values reported by the managers of these securities. Some of these values were reported from periods prior to September 30, 2013. The private equity funds have varying lock-up periods and as of September 30, 2013, all of the funds had redemption restrictions, and therefore have been categorized within Level 3 of the fair value hierarchy. As of September 30, 2013, the Company had $9.9 million (December 31, 2012: $12.6 million) of unfunded commitments relating to private equity funds whose fair values are determined based on unadjusted net asset values reported by the managers of these securities. These commitments are included in the amounts presented in the schedule of commitments and contingencies in Note 8 of these condensed consolidated financial statements. | |||||||||||||||||||||||||||||||||
Investments in Securities Sold, Not Yet Purchased | |||||||||||||||||||||||||||||||||
At September 30, 2013, the following securities were included in investments in securities sold, not yet purchased: | |||||||||||||||||||||||||||||||||
2013 | Proceeds | Unrealized gains | Unrealized losses | Fair value | |||||||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||||||||||
Equities – listed | $ | (811,901 | ) | $ | 71,159 | $ | (125,362 | ) | $ | (866,104 | ) | ||||||||||||||||||||||
Exchange traded funds | (6,318 | ) | — | (1,172 | ) | (7,490 | ) | ||||||||||||||||||||||||||
Corporate debt – U.S. | (7,454 | ) | 5 | (239 | ) | (7,688 | ) | ||||||||||||||||||||||||||
Sovereign debt – Non U.S. | (170,376 | ) | — | (13,414 | ) | (183,790 | ) | ||||||||||||||||||||||||||
$ | (996,049 | ) | $ | 71,164 | $ | (140,187 | ) | $ | (1,065,072 | ) | |||||||||||||||||||||||
At December 31, 2012, the following securities were included in investments in securities sold, not yet purchased: | |||||||||||||||||||||||||||||||||
2012 | Proceeds | Unrealized gains | Unrealized losses | Fair value | |||||||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||||||||||
Equities – listed | $ | (697,278 | ) | $ | 76,172 | $ | (58,791 | ) | $ | (679,897 | ) | ||||||||||||||||||||||
Corporate debt – U.S. | (7,353 | ) | 26 | (381 | ) | (7,708 | ) | ||||||||||||||||||||||||||
Sovereign debt – Non U.S. | (207,122 | ) | — | (13,641 | ) | (220,763 | ) | ||||||||||||||||||||||||||
$ | (911,753 | ) | $ | 76,198 | $ | (72,813 | ) | $ | (908,368 | ) | |||||||||||||||||||||||
Financial Contracts | |||||||||||||||||||||||||||||||||
As of September 30, 2013 and December 31, 2012, the Company had entered into total return swaps, CDS, options, futures, forwards and interest rate options contracts with various financial institutions to meet certain investment objectives. Under the terms of each of these financial contracts, the Company is either entitled to receive or is obligated to make payments which are based on the product of a formula contained within each contract that includes the change in the fair value of the underlying or reference security. | |||||||||||||||||||||||||||||||||
At September 30, 2013, the fair values of financial contracts outstanding were as follows: | |||||||||||||||||||||||||||||||||
Financial Contracts | Listing | Notional amount of | Fair value of net assets | ||||||||||||||||||||||||||||||
currency | underlying instruments | (obligations) | |||||||||||||||||||||||||||||||
on financial | |||||||||||||||||||||||||||||||||
contracts | |||||||||||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||||||||||
Financial contracts receivable | |||||||||||||||||||||||||||||||||
Call options | USD | 46,190 | $ | 1,372 | |||||||||||||||||||||||||||||
Forwards | JPY | 107,884 | 172 | ||||||||||||||||||||||||||||||
Futures | JPY | 41,450 | 715 | ||||||||||||||||||||||||||||||
Interest rate options | USD | 1,878,031 | 45 | ||||||||||||||||||||||||||||||
Put options | USD | 222,058 | 13,528 | ||||||||||||||||||||||||||||||
Total return swaps – equities | EUR/GBP/HKD/USD | 204,649 | 68,093 | ||||||||||||||||||||||||||||||
Warrants and rights on listed equities | EUR | 1,630 | 1,630 | ||||||||||||||||||||||||||||||
Total financial contracts receivable, at fair value | $ | 85,555 | |||||||||||||||||||||||||||||||
Financial contracts payable | |||||||||||||||||||||||||||||||||
Credit default swaps, purchased – corporate debt | USD | 273,877 | (3,682 | ) | |||||||||||||||||||||||||||||
Credit default swaps, purchased – sovereign debt | USD | 251,467 | $ | (4,494 | ) | ||||||||||||||||||||||||||||
Forwards | KRW | 25,858 | (584 | ) | |||||||||||||||||||||||||||||
Total return swaps – equities | EUR/GBP/HKD | 31,169 | (9,202 | ) | |||||||||||||||||||||||||||||
Total financial contracts payable, at fair value | $ | (17,962 | ) | ||||||||||||||||||||||||||||||
At December 31, 2012, the fair values of financial contracts outstanding were as follows: | |||||||||||||||||||||||||||||||||
Financial Contracts | Listing | Notional amount of | Fair value of net assets | ||||||||||||||||||||||||||||||
currency | underlying instruments | (obligations) | |||||||||||||||||||||||||||||||
on financial | |||||||||||||||||||||||||||||||||
contracts | |||||||||||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||||||||||
Financial contracts receivable | |||||||||||||||||||||||||||||||||
Call options | USD | 90,374 | $ | 4,498 | |||||||||||||||||||||||||||||
Credit default swaps, purchased – corporate debt | USD | 39,665 | 265 | ||||||||||||||||||||||||||||||
Interest rate options | USD | 2,299,933 | 109 | ||||||||||||||||||||||||||||||
Put options | USD | 314,695 | 17,709 | ||||||||||||||||||||||||||||||
Total return swaps – equities | GBP/HKD/JPY | 3,664 | 163 | ||||||||||||||||||||||||||||||
Total financial contracts receivable, at fair value | $ | 22,744 | |||||||||||||||||||||||||||||||
Financial contracts payable | |||||||||||||||||||||||||||||||||
Credit default swaps, purchased – corporate debt | USD | 234,212 | $ | (3,365 | ) | ||||||||||||||||||||||||||||
Credit default swaps, purchased – sovereign debt | USD | 251,467 | (5,443 | ) | |||||||||||||||||||||||||||||
Put options | USD | 16,071 | (1,636 | ) | |||||||||||||||||||||||||||||
Total return swaps – equities | GBP/HKD | 76,697 | (9,193 | ) | |||||||||||||||||||||||||||||
Total financial contracts payable, at fair value | $ | (19,637 | ) | ||||||||||||||||||||||||||||||
As of September 30, 2013 and December 31, 2012, included in interest rate options are contracts on U.S. and Japanese interest rates denominated in U.S. dollars. Included in put options (under financial contracts receivable) are options on foreign currencies, primarily the Japanese Yen, the Australian Dollar and the Chinese Yuan, denominated in U.S. dollars. | |||||||||||||||||||||||||||||||||
During the three and nine months ended September 30, 2013 and 2012, the Company reported gains and losses on derivatives as follows: | |||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | Location of gains and losses on derivatives recognized in income | Gain (loss) on derivatives recognized | Gain (loss) on derivatives recognized | ||||||||||||||||||||||||||||||
in income | in income | ||||||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | ||||||||||||||||||||||||||||||||
Credit default swaps, purchased – corporate debt | Net investment income (loss) | $ | (589 | ) | $ | (2,448 | ) | $ | (2,847 | ) | $ | (6,448 | ) | ||||||||||||||||||||
Credit default swaps, purchased – sovereign debt | Net investment income (loss) | (942 | ) | (849 | ) | (957 | ) | (4,793 | ) | ||||||||||||||||||||||||
Currency forwards | Net investment income (loss) | (1,282 | ) | — | 5,780 | — | |||||||||||||||||||||||||||
Futures | Net investment income (loss) | 3,628 | (4,542 | ) | 4,677 | (12,501 | ) | ||||||||||||||||||||||||||
Interest rate options | Net investment income (loss) | (97 | ) | (379 | ) | (62 | ) | (1,982 | ) | ||||||||||||||||||||||||
Options, warrants, and rights | Net investment income (loss) | (12,025 | ) | (3,406 | ) | 20,681 | (13,572 | ) | |||||||||||||||||||||||||
Total return swaps – equities | Net investment income (loss) | 38,825 | (1,571 | ) | 59,507 | (4,053 | ) | ||||||||||||||||||||||||||
Weather derivative swap | Other income (expense), net | — | (14 | ) | — | (263 | ) | ||||||||||||||||||||||||||
Total | $ | 27,518 | $ | (13,209 | ) | $ | 86,779 | $ | (43,612 | ) | |||||||||||||||||||||||
The Company generally does not enter into derivatives for risk management or hedging purposes. The volume of derivative activities varies from period to period depending on potential investment opportunities. | |||||||||||||||||||||||||||||||||
For the three and nine months ended September 30, 2013, the Company’s volume of derivative activities (based on notional amounts) was as follows: | |||||||||||||||||||||||||||||||||
2013 | Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | Entered | Exited | Entered | Exited | |||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | ||||||||||||||||||||||||||||||||
Currency forwards | $ | 30,817 | $ | — | $ | 417,754 | $ | 115,884 | |||||||||||||||||||||||||
Futures | — | 12,778 | 218,519 | 180,027 | |||||||||||||||||||||||||||||
Interest rate options | — | 95,400 | — | 376,385 | |||||||||||||||||||||||||||||
Options | 232,530 | 272,988 | 765,509 | 814,812 | |||||||||||||||||||||||||||||
Total return swaps | 16,606 | 6,736 | 187,862 | 54,846 | |||||||||||||||||||||||||||||
Total | $ | 279,953 | $ | 387,902 | $ | 1,589,644 | $ | 1,541,954 | |||||||||||||||||||||||||
For the three and nine months ended September 30, 2012, the Company’s volume of derivative activities (based on notional amounts) was as follows: | |||||||||||||||||||||||||||||||||
2012 | Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | Entered | Exited | Entered | Exited | |||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | ||||||||||||||||||||||||||||||||
Credit default swaps | $ | — | $ | — | $ | — | $ | 45,966 | |||||||||||||||||||||||||
Futures | 259,225 | 393,683 | 1,023,492 | 1,023,239 | |||||||||||||||||||||||||||||
Options | 91,011 | 36,851 | 535,218 | 239,554 | |||||||||||||||||||||||||||||
Total return swaps | 17,340 | 10,645 | 20,146 | 31,199 | |||||||||||||||||||||||||||||
Weather derivative swap | — | 5,000 | — | 5,000 | |||||||||||||||||||||||||||||
Total | $ | 367,576 | $ | 446,179 | $ | 1,578,856 | $ | 1,344,958 | |||||||||||||||||||||||||
The Company does not offset its derivative instruments and presents all amounts in the condensed consolidated balance sheets on a gross basis. The Company has pledged cash collateral to derivative counterparties to support the current value of amounts due to the counterparties based on the value of the underlying security. | |||||||||||||||||||||||||||||||||
As of September 30, 2013, the gross and net amounts of derivative instruments and the cash collateral applicable to derivative instruments were as follows: | |||||||||||||||||||||||||||||||||
September 30, 2013 | (i) | (ii) | (iii) =i) - (ii) | (iv) Gross amounts not offset in the balance sheet | (v) =iii) + (iv) | ||||||||||||||||||||||||||||
Description | Gross amounts of recognized assets (liabilities) | Gross amounts offset in the balance sheet | Net amounts of assets (liabilities) presented in the balance sheet | Cash collateral (received) pledged | Net amount of asset (liability) | ||||||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||||||||||
Financial contracts receivable | $ | 85,555 | $ | — | $ | 85,555 | $ | (30,251 | ) | $ | 55,304 | ||||||||||||||||||||||
Financial contracts payable | $ | (17,962 | ) | $ | — | $ | (17,962 | ) | $ | 34,606 | $ | 16,644 | |||||||||||||||||||||
Securities sold, not yet purchased | $ | (1,065,072 | ) | $ | — | $ | (1,065,072 | ) | $ | 1,065,072 | $ | — | |||||||||||||||||||||
As of December 31, 2012, the gross and net amounts of derivative instruments and the cash collateral applicable to derivative instruments were as follows: | |||||||||||||||||||||||||||||||||
December 31, 2012 | (i) | (ii) | (iii) =i) - (ii) | (iv) Gross amounts not offset in the balance sheet | (v) =iii) + (iv) | ||||||||||||||||||||||||||||
Description | Gross amounts of recognized assets (liabilities) | Gross amounts offset in the balance sheet | Net amounts of assets (liabilities) presented in the balance sheet | Cash collateral (received) pledged | Net amount of asset (liability) | ||||||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||||||||||
Financial contracts receivable | $ | 22,744 | $ | — | $ | 22,744 | $ | (947 | ) | $ | 21,797 | ||||||||||||||||||||||
Financial contracts payable | $ | (19,637 | ) | $ | — | $ | (19,637 | ) | $ | 39,268 | $ | 19,631 | |||||||||||||||||||||
Securities sold, not yet purchased | $ | (908,368 | ) | $ | — | $ | (908,368 | ) | $ | 908,368 | $ | — | |||||||||||||||||||||
DUE_TO_PRIME_BROKERS
DUE TO PRIME BROKERS | 9 Months Ended |
Sep. 30, 2013 | |
Due to and from Broker-Dealers and Clearing Organizations [Abstract] | |
DUE TO PRIME BROKERS | DUE TO PRIME BROKERS |
As of September 30, 2013, the amount due to prime brokers is comprised of margin-borrowing from prime brokers relating to investments purchased on margin, as well as the margin-borrowing for providing collateral to support some of the Company’s outstanding letters of credit (see Note 8). Under term margin agreements and certain letter of credit facility agreements, the Company pledges certain investment securities to borrow cash from the prime brokers. The borrowed cash is placed in a custodial account in the name of the Company and this custodial account provides collateral for any letters of credit issued. Since there is no legal right of offset, the Company’s liability for the cash borrowed from the prime brokers is included on the condensed consolidated balance sheets as due to prime brokers while the cash held in the custodial account is included on the condensed consolidated balance sheets as restricted cash and cash equivalents. At September 30, 2013, the amounts due to prime brokers included $235.2 million (December 31, 2012: $252.7 million) of cash borrowed under the term margin agreements to provide collateral for letters of credit facilities and $3.8 million (December 31, 2012: $73.7 million) of borrowing relating to investment purchases. | |
The Company's original investment guidelines allowed for temporary (30 days) leverage for investment purposes up to 20% of net invested assets, and for an extended time period, up to 5% of net invested assets. During 2013, the Board of Directors granted temporary waivers of the 5% leverage restriction. These waivers allowed for an aggregate of 20% net margin leverage for extended periods which terminated on July 24, 2013. Effective July 24, 2013, Greenlight Re's investment guidelines were amended to allow up to 15% net margin leverage for extended periods of time and up to 30% net margin leverage for periods of less than 30 days. |
RETROCESSION
RETROCESSION | 9 Months Ended |
Sep. 30, 2013 | |
Reinsurance Disclosures [Abstract] | |
RETROCESSION | RETROCESSION |
The Company, from time to time, purchases retrocessional coverage for one or more of the following reasons: to manage its overall exposure, to reduce its net liability on individual risks, to obtain additional underwriting capacity and to balance its underwriting portfolio. Additionally, retrocession can be used as a mechanism to share the risks and rewards of business written and therefore can be used as a tool to align the Company's interests with those of its counterparties. The Company currently has coverages that provide for recovery of a portion of loss and loss expenses incurred on certain contracts. Loss and loss adjustment expense recoverable from the retrocessionaires are recorded as assets. | |
For the three months ended September 30, 2013, loss and loss adjustment expenses incurred of $94.4 million (2012: $126.6 million) reported on the condensed consolidated statements of income are net of loss and loss expenses recovered and recoverable of $0.3 million (2012: negative $5.1 million). For the nine months ended September 30, 2013, loss and loss adjustment expenses incurred of $239.0 million (2012: $277.3 million) reported on the condensed consolidated statements of income are net of loss and loss expenses recovered and recoverable of negative $10.5 million (2012: $10.9 million). The negative loss and loss expenses recovered for the nine months ended September 30, 2013, were due to reversal of loss reserves on retrocession contracts that were novated during the first quarter of 2013. | |
Retrocession contracts do not relieve the Company from its obligations to the insureds. Failure of retrocessionaires to honor their obligations could result in losses to the Company. At September 30, 2013, $7,500 of loss and loss adjustment expenses were recoverable from a retrocessionaire rated "A+ (Superior)" by A.M. Best. (December 31, 2012: $0.1 million). Additionally, the Company had losses recoverable of $18.0 million (December 31, 2012: $34.3 million) with unrated retrocessionaires. At September 30, 2013 and December 31, 2012, the Company retained $4.5 million and $11.4 million, respectively, of cash collateral from unrated retrocessionaires with whom the Company had losses recoverable and held other collateral in the form of guarantees. Additionally, the Company retained funds withheld of $4.9 million and $6.0 million as of September 30, 2013 and December 31, 2012, respectively, on other retroceded contracts. The Company regularly evaluates the financial condition of its retrocessionaires to assess the ability of the retrocessionaires to honor their obligations. At September 30, 2013 and December 31, 2012, no provision for uncollectible losses recoverable was considered necessary. |
SHAREBASED_COMPENSATION
SHARE-BASED COMPENSATION | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION | |||||||||||
The Company has a stock incentive plan for directors, employees and consultants. Shares authorized for issuance are comprised of 300,000 (2012: 300,000) Class A ordinary shares in relation to share purchase options granted to a service provider and 3,500,000 (2012: 3,500,000) Class A ordinary shares authorized for the Company’s stock incentive plan for eligible directors, employees and consultants. As of September 30, 2013, 250,000 (2012: 250,000) Class A ordinary shares remained available for future issuance relating to share purchase options granted to the service provider, and 962,181 (December 31, 2012: 1,136,504) Class A ordinary shares remained available for future issuance under the Company's stock incentive plan. The stock incentive plan is administered by the Compensation Committee of the Board of Directors. | ||||||||||||
Service Provider Share Purchase Options | ||||||||||||
An affiliate of Greenlight Capital, Inc. entered into a consulting agreement (the "Consulting Agreement") with First International Securities Ltd. ("First International") in August 2002. First International received a cash payment of $75,000 for the preparation and delivery of a feasibility study relating to the formation, capitalization, licensing and operation of the Company. Additionally, upon consummation of the initial private offering, First International Capital Holdings Ltd., the successor to First International, received a 10-year share purchase option to purchase 400,000 Class A ordinary shares. These share purchase options were granted on September 20, 2004 and have an exercise price of $10 per share. The Company previously repurchased 100,000 of the share purchase options. During the year ended December 31, 2011, 50,000 share purchase options were exercised resulting in the issuance of 25,843 Class A ordinary shares. As of September 30, 2013, there were 250,000 share purchase options outstanding (2012: 250,000) with an exercise price of $10 per share option, which will expire in August 2014. | ||||||||||||
Employee and Director Restricted Shares | ||||||||||||
As part of its stock incentive plan, the Company issues restricted shares for which the fair value is equal to the price of the Company’s Class A ordinary shares on the grant date. Compensation based on the grant date fair market value of the shares is expensed on a straight line basis over the vesting period. | ||||||||||||
For the nine months ended September 30, 2013, 111,231 (2012: 110,701) restricted Class A ordinary shares were issued to employees pursuant to the Company’s stock incentive plan. These shares contain certain restrictions relating to, among other things, vesting, forfeiture in the event of termination of employment and transferability. Each of these restricted shares will cliff vest after 3 years from the date of issuance, subject to the grantee’s continued service with the Company. During the vesting period, the holder of the restricted shares retains voting rights and is entitled to any dividends declared by the Company. | ||||||||||||
For the nine months ended September 30, 2013, the Company also issued to non-employee directors an aggregate of 36,374 (2012: 35,994) restricted Class A ordinary shares as part of their remuneration for services to the Company. Each of these restricted shares issued to non-employee directors contain similar restrictions to those issued to employees and will vest on the earlier of the first anniversary of the share issuance or the Company’s next annual general meeting, subject to the grantee’s continued service with the Company. | ||||||||||||
For the nine months ended September 30, 2013, 16,826 (2012: 6,191) restricted shares were forfeited by employees who left the Company prior to the vesting period. For the nine months ended September 30, 2013, in accordance with U.S. GAAP, stock compensation expense of $0.2 million (2012: $0.1 million) relating to the forfeited restricted shares was reversed. | ||||||||||||
The restricted share award activity during the nine months ended September 30, 2013 was as follows: | ||||||||||||
Number of | Weighted | |||||||||||
non-vested | average | |||||||||||
restricted | grant date | |||||||||||
shares | fair value | |||||||||||
Balance at December 31, 2012 | 308,406 | $ | 24.93 | |||||||||
Granted | 147,605 | 24.59 | ||||||||||
Vested | (110,194 | ) | 25.08 | |||||||||
Forfeited | (16,826 | ) | 24.55 | |||||||||
Balance at September 30, 2013 | 328,991 | $ | 24.74 | |||||||||
Employee and Director Stock Options | ||||||||||||
For the nine months ended September 30, 2013, 38,197 Class A ordinary share purchase options were granted to the Company's Chief Executive Officer, pursuant to his employment contract (2012: 45,290). These options vest 25% on the date of the grant, and 25% each on the anniversary thereof in 2014, 2015 and 2016 and expire 10 years after the grant date. The grant date fair value of these options was $13.09 per share (2012: $11.04 per share), based on the Black-Scholes option pricing model. The Company’s shares have not been publicly traded for a sufficient length of time to reasonably estimate the expected volatility. Therefore, the Company determined the expected volatility based primarily on the historical volatility of a peer group of companies in the reinsurance industry while also considering the Company’s own historical volatility in determining the expected volatility. | ||||||||||||
The Company uses the Black-Scholes option pricing model to determine the valuation of its options and has applied the assumptions set forth in the following table. | ||||||||||||
2013 | 2012 | |||||||||||
Risk free rate | 2.85 | % | 1.5 | % | ||||||||
Estimated volatility | 35 | % | 35 | % | ||||||||
Expected term (in years) | 10 | 10 | ||||||||||
Dividend yield | 0 | % | 0 | % | ||||||||
Forfeiture rate | 0 | % | 0 | % | ||||||||
For the nine months ended September 30, 2013, 44,500 (2012: nil) stock options were exercised. The intrinsic value of options exercised during the nine months ended September 30, 2013 was $0.6 million (2012: nil). For any options exercised, the Company issues new Class A ordinary shares from the shares authorized for issuance as part of the Company’s stock incentive plan. | ||||||||||||
Employee and director stock option activity during the nine months ended September 30, 2013 was as follows: | ||||||||||||
Number of | Weighted | Weighted | ||||||||||
options | average | average | ||||||||||
exercise | grant date | |||||||||||
price | fair value | |||||||||||
Balance at December 31, 2012 | 1,421,290 | $ | 15.36 | $ | 6.87 | |||||||
Granted | 38,197 | 26.44 | 13.09 | |||||||||
Exercised | (44,500 | ) | 11.54 | 5.73 | ||||||||
Forfeited | — | — | — | |||||||||
Expired | — | — | — | |||||||||
Balance at September 30, 2013 | 1,414,987 | $ | 15.78 | $ | 7.07 | |||||||
Employee Restricted Stock Units | ||||||||||||
The Company issues restricted stock units ("RSUs") to certain employees as part of the stock incentive plan. The grant date fair value of the RSUs is equal to the price of the Company’s Class A ordinary shares on the grant date. Compensation based on the grant date fair market value of the RSUs is expensed on a straight line basis over the vesting period. | ||||||||||||
For the nine months ended September 30, 2013, 5,347 (2012: nil) RSUs were issued to employees pursuant to the Company’s stock incentive plan. These shares contain certain restrictions relating to, among other things, vesting, forfeiture in the event of termination of employment and transferability. Each of these RSUs will cliff vest after 3 years from the date of issuance, subject to the grantee’s continued service with the Company. On the vesting date, the Company converts each RSU into one Class A ordinary share and issues new Class A ordinary shares from the shares authorized for issuance as part of the Company’s stock incentive plan. | ||||||||||||
Number of | Weighted | |||||||||||
non-vested | average | |||||||||||
RSUs | grant date | |||||||||||
fair value | ||||||||||||
Balance at December 31, 2012 | — | $ | — | |||||||||
Granted | 5,347 | 24.41 | ||||||||||
Vested | — | — | ||||||||||
Forfeited | — | — | ||||||||||
Balance at September 30, 2013 | 5,347 | $ | 24.41 | |||||||||
For the three months ended September 30, 2013 and 2012, the general and administrative expenses included stock compensation expense (net of forfeitures) of $1.1 million and $1.0 million, respectively, for the expensing of the fair value of stock options, restricted stocks and RSUs granted to employees and directors. For the nine months ended September 30, 2013 and 2012, the stock compensation expense was $2.7 million and $2.8 million, respectively. |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2013 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS |
Investment Advisory Agreement | |
The Company and its reinsurance subsidiaries are party to an Investment Advisory Agreement (the "Advisory Agreement") with DME Advisors under which the Company, its reinsurance subsidiaries and DME Advisors created a joint venture for the purpose of managing certain jointly held assets. DME Advisors is a related party and an affiliate of David Einhorn, Chairman of the Company’s board of directors. | |
Pursuant to the Advisory Agreement, performance allocation equal to 20% of the net income of the Company’s share of the account managed by DME Advisors is allocated, subject to a loss carry forward provision, to DME Advisors’ account. The loss carry forward provision allows DME Advisors to earn a reduced performance allocation of 10% on net investment income in any year subsequent to the year in which the investment account incurs a loss, until all the losses are recouped and an additional amount equal to 150% of the aggregate investment loss is earned. DME Advisors is not entitled to earn a performance allocation in a year in which the investment portfolio incurs a loss. For the three and nine months ended September 30, 2013, included in net investment income is performance allocation of $11.9 million and $33.8 million, respectively (2012: $23.8 million and $31.6 million, respectively). | |
Additionally, pursuant to the Advisory Agreement, a monthly management fee, equal to 0.125% (1.5% on an annual basis) of the Company’s investment account managed by DME Advisors, is paid to DME Advisors. Included in the net investment income for the three and nine months ended September 30, 2013 are management fees of $4.6 million and $13.4 million, respectively (2012: $4.2 million and $12.5 million, respectively). The management fees have been fully paid as of September 30, 2013. | |
Pursuant to the Advisory Agreement, the Company has agreed to indemnify DME Advisors for any expense, loss, liability, or damage arising out of any claim asserted or threatened in connection with DME Advisors serving as the Company’s investment advisor. The Company will reimburse DME Advisors for reasonable costs and expenses of investigating and/or defending such claims provided such claims were not caused due to gross negligence, breach of contract or misrepresentation by DME Advisors. For the nine months ended September 30, 2013, there were no indemnification payments made by the Company. | |
Service Agreement | |
The Company has entered into a service agreement with DME Advisors, pursuant to which DME Advisors provides investor relations services to the Company for compensation of five thousand dollars per month (plus expenses). The agreement is automatically renewed annually until terminated by either the Company or DME Advisors for any reason with 30 days prior written notice to the other party. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES | |||||||||||||||||||||||||||
Letters of Credit | ||||||||||||||||||||||||||||
At September 30, 2013, the Company had the following letter of credit facilities, which automatically renew each year unless terminated by either party in accordance with the required notice period: | ||||||||||||||||||||||||||||
Facility | Termination Date | Notice period required for termination | ||||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||
Bank of America, N.A. | $ | 200,000 | July 20, 2014 | 90 days prior to termination date | ||||||||||||||||||||||||
Butterfield Bank (Cayman) Limited | 60,000 | June 30, 2014 | 90 days prior to termination date | |||||||||||||||||||||||||
Citibank Europe plc | 400,000 | October 11, 2014 | 120 days prior to termination date | |||||||||||||||||||||||||
JP Morgan Chase Bank N.A. | 100,000 | January 27, 2015 | 120 days prior to termination date | |||||||||||||||||||||||||
$ | 760,000 | |||||||||||||||||||||||||||
As of September 30, 2013, an aggregate amount of $377.3 million (December 31, 2012: $416.5 million) in letters of credit were issued under the above facilities. Under the facilities, the Company provides collateral that may consist of equity securities, restricted cash, and cash and cash equivalents. As of September 30, 2013, total equity securities, restricted cash, and cash and cash equivalents with a fair value in the aggregate of $418.7 million (December 31, 2012: $441.7 million) were pledged as security against the letters of credit issued (also see Note 4). Each of the facilities contain customary events of default and restrictive covenants, including but not limited to, limitations on liens on collateral, transactions with affiliates, mergers and sales of assets, as well as solvency and maintenance of certain minimum pledged equity requirements, and restricts issuance of any debt without the consent of the letter of credit provider. Additionally, if an event of default exists, as defined in the letter of credit facilities, Greenlight Re will be prohibited from paying dividends to its parent company. The Company was in compliance with all the covenants of each of these facilities as of September 30, 2013 and December 31, 2012. | ||||||||||||||||||||||||||||
Operating Lease Obligations | ||||||||||||||||||||||||||||
Greenlight Re has entered into lease agreements for office space in the Cayman Islands. Under the terms of the lease agreements, Greenlight Re is committed to annual rent payments ranging from $0.3 million at inception to $0.5 million at lease termination. The leases expire on June 30, 2018 and Greenlight Re has the option to renew the leases for a further 5 year term. Included in the schedule below are the minimum lease payment obligations relating to these leases as of September 30, 2013. | ||||||||||||||||||||||||||||
GRIL has entered into a lease agreement for office space in Dublin, Ireland. Under the terms of this lease agreement, GRIL is committed to average annual rent payments denominated in Euros approximating €0.07 million until May 2016 (net of rent inducements), and adjusted to the prevailing market rates for each of three subsequent five-year terms. GRIL has the option to terminate the lease agreement in 2016 and 2021. Included in the schedule below are the net minimum lease payment obligations relating to this lease as of September 30, 2013. | ||||||||||||||||||||||||||||
The total rent expense related to leased office space for the three and nine months ended September 30, 2013 was $0.1 million and $0.3 million, respectively (2012: $0.1 million and $0.3 million, respectively). | ||||||||||||||||||||||||||||
Specialist Service Agreement | ||||||||||||||||||||||||||||
The Company has entered into a service agreement with a specialist service provider for the provision of administration and support in developing and maintaining business relationships, reviewing and recommending programs and managing risks relating to certain specialty lines of business. The specialist service provider does not have any authority to bind the Company to any reinsurance contracts. Under the terms of the agreement, the Company has committed to quarterly payments to the service provider. If the agreement is terminated, the Company is obligated to make minimum payments for another two years to ensure contracts to which the Company is bound are adequately administered by the specialist service provider. Included in the schedule below are the minimum payment obligations relating to this agreement. | ||||||||||||||||||||||||||||
Private Equity and Limited Partnerships | ||||||||||||||||||||||||||||
From time to time, the Company makes investments in private equity vehicles. As part of the Company's participation in such private equity investments, the Company may make funding commitments. As of September 30, 2013, the Company had commitments to invest an additional $9.9 million (December 31, 2012: $20.8 million) in private equity investments. Included in the schedule below are the minimum payment obligations relating to these investments. | ||||||||||||||||||||||||||||
Schedule of Commitments and Contingencies | ||||||||||||||||||||||||||||
The following is a schedule of future minimum payments required under the above commitments: | ||||||||||||||||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | Thereafter | Total | ||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||
Operating lease obligations | $ | 139 | $ | 556 | $ | 556 | $ | 499 | $ | 466 | $ | 232 | $ | 2,448 | ||||||||||||||
Specialist service agreement | 225 | 700 | 400 | 150 | — | — | 1,475 | |||||||||||||||||||||
Private equity and limited partnerships (1) | 9,890 | — | — | — | — | — | 9,890 | |||||||||||||||||||||
$ | 10,254 | $ | 1,256 | $ | 956 | $ | 649 | $ | 466 | $ | 232 | $ | 13,813 | |||||||||||||||
(1) Given the nature of these investments, the Company is unable to determine with any degree of accuracy when these commitments will be called. Therefore, for purposes of the above table, the Company has assumed that all commitments with no fixed payment schedules will be called during the year ended December 31, 2013. | ||||||||||||||||||||||||||||
Litigation | ||||||||||||||||||||||||||||
From time to time in the normal course of business, the Company may be involved in formal and informal dispute resolution procedures, which may include arbitration or litigation, the outcomes of which determine the rights and obligations under the Company's reinsurance contracts and other contractual agreements. In some disputes, the Company may seek to enforce its rights under an agreement or to collect funds owing to it. In other matters, the Company may resist attempts by others to collect funds or enforce alleged rights. While the final outcome of legal disputes cannot be predicted with certainty, the Company does not believe that any existing dispute, when finally resolved, will have a material adverse effect on the Company's business, financial condition or operating results. |
SEGMENT_REPORTING
SEGMENT REPORTING | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||
SEGMENT REPORTING | SEGMENT REPORTING | ||||||||||||||||||||||||||||
The Company manages its business on the basis of one operating segment, Property & Casualty Reinsurance. | |||||||||||||||||||||||||||||
The following tables provide a breakdown of the Company's gross premiums written by line of business and by geographic area of risks insured for the periods indicated: | |||||||||||||||||||||||||||||
Gross Premiums Written by Line of Business | |||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | ||||||||||||||||||||||||||||
Property | |||||||||||||||||||||||||||||
Aviation | $ | — | — | % | $ | — | — | % | $ | 96 | — | % | $ | — | — | % | |||||||||||||
Commercial lines | 789 | 0.5 | — | — | 10,523 | 2.6 | 11,646 | 3.8 | |||||||||||||||||||||
Energy | — | — | — | — | 1,553 | 0.4 | — | — | |||||||||||||||||||||
Motor physical damage | 21,557 | 14.5 | 12,895 | 19 | 48,895 | 11.9 | 48,738 | 16.1 | |||||||||||||||||||||
Personal lines (1) | 34,521 | 23.2 | (1,453 | ) | (2.1 | ) | 108,181 | 26.3 | 51,105 | 16.8 | |||||||||||||||||||
Total Property | 56,867 | 38.2 | 11,442 | 16.9 | 169,248 | 41.2 | 111,489 | 36.7 | |||||||||||||||||||||
Casualty | |||||||||||||||||||||||||||||
General liability (1) | 1,668 | 1.1 | 5,469 | 8.1 | (544 | ) | (0.1 | ) | 20,393 | 6.7 | |||||||||||||||||||
Marine liability | — | — | — | — | 603 | 0.1 | 2,240 | 0.7 | |||||||||||||||||||||
Motor liability | 81,474 | 54.8 | 43,216 | 63.9 | 212,174 | 51.6 | 132,693 | 43.7 | |||||||||||||||||||||
Professional liability (1) | 459 | 0.3 | — | — | 1,583 | 0.4 | (666 | ) | (0.2 | ) | |||||||||||||||||||
Total Casualty | 83,601 | 56.2 | 48,685 | 72 | 213,816 | 52 | 154,660 | 50.9 | |||||||||||||||||||||
Specialty | |||||||||||||||||||||||||||||
Financial (1) | 806 | 0.6 | (3,813 | ) | (5.6 | ) | 2,103 | 0.5 | (508 | ) | (0.2 | ) | |||||||||||||||||
Health | 7,491 | 5 | 9,502 | 14 | 29,975 | 7.3 | 28,888 | 9.5 | |||||||||||||||||||||
Workers’ compensation (1) | — | — | 1,828 | 2.7 | (4,215 | ) | (1.0 | ) | 9,321 | 3.1 | |||||||||||||||||||
Total Specialty | 8,297 | 5.6 | 7,517 | 11.1 | 27,863 | 6.8 | 37,701 | 12.4 | |||||||||||||||||||||
$ | 148,765 | 100 | % | $ | 67,644 | 100 | % | $ | 410,927 | 100 | % | $ | 303,850 | 100 | % | ||||||||||||||
(1) The negative balance represents reversal of premiums due to premium adjustments, termination of contracts or premiums returned upon novation or commutation of contracts. | |||||||||||||||||||||||||||||
Gross Premiums Written by Geographic Area of Risks Insured | |||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | ||||||||||||||||||||||||||||
U.S. | $ | 148,249 | 99.7 | % | $ | 71,709 | 106 | % | $ | 400,594 | 97.5 | % | $ | 293,075 | 96.5 | % | |||||||||||||
Worldwide (1) (2) | 379 | 0.2 | (4,065 | ) | (6.0 | ) | 9,814 | 2.4 | 11,113 | 3.6 | |||||||||||||||||||
Caribbean (2) | — | — | — | — | (95 | ) | — | 328 | 0.1 | ||||||||||||||||||||
Europe (2) | 137 | 0.1 | — | — | 614 | 0.1 | (666 | ) | (0.2 | ) | |||||||||||||||||||
$ | 148,765 | 100 | % | $ | 67,644 | 100 | % | $ | 410,927 | 100 | % | $ | 303,850 | 100 | % | ||||||||||||||
-1 | "Worldwide" is comprised of contracts that reinsure risks in more than one geographic area and do not specifically exclude the U.S. | ||||||||||||||||||||||||||||
-2 | The negative balance represents reversal of premiums due to premium adjustments, termination of contracts or premiums returned upon novation or commutation of contracts. |
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Accounting Policies [Abstract] | ||||||||||||
Use of Estimates, Policy [Policy Text Block] | Use of Estimates | |||||||||||
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses during the period. Actual results could differ from these estimates. | ||||||||||||
Restricted Cash And Cash Equivalents, Policy [Text Block] | Restricted Cash and Cash Equivalents | |||||||||||
The Company is required to maintain certain cash in segregated accounts with prime brokers and derivative counterparties. The amount of restricted cash held by prime brokers is primarily used to support the liability created from securities sold, not yet purchased, and for collateralizing the letters of credit issued under certain letter of credit facilities (see Notes 4 and 8). The amount of cash encumbered varies depending on the market value of the securities sold, not yet purchased, and letters of credit issued. In addition, derivative counterparties require cash collateral to support the current value of any amounts that may be due to the counterparty based on the value of the underlying financial instrument. | ||||||||||||
Deferred Acquisition Costs, Policy [Policy Text Block] | Deferred Acquisition Costs | |||||||||||
Policy acquisition costs, such as commission and brokerage costs, relate directly to, and vary with, the writing of reinsurance contracts. Acquisition costs relating solely to bound contracts are deferred subject to ultimate recoverability and are amortized over the related contract term. The Company evaluates the recoverability of deferred acquisition costs by determining if the sum of future earned premiums and anticipated investment income is greater than the expected future claims and expenses. If a loss is probable on the unexpired portion of policies in force, a premium deficiency loss is recognized. At September 30, 2013 and December 31, 2012, the deferred acquisition costs were considered fully recoverable and no premium deficiency loss was recorded. | ||||||||||||
Acquisition costs also include profit commissions, which are expensed when incurred. Profit commissions are calculated and accrued based on the expected loss experience for contracts and recorded when the current loss estimate indicates that a profit commission is probable under the contract terms. As of September 30, 2013, $10.9 million (December 31, 2012: $9.6 million) of profit commission reserves were included in reinsurance balances payable on the condensed consolidated balance sheets. For the three and nine months ended September 30, 2013, $0.9 million and $2.1 million (2012: $0.9 million and $1.3 million) of net profit commission expenses were included in acquisition costs, respectively, on the condensed consolidated statements of income. | ||||||||||||
Loss and Loss Adjustment Expense Reserves and Recoverable, Policy [Policy Text Block] | Loss and Loss Adjustment Expense Reserves and Recoverable | |||||||||||
The Company establishes reserves for contracts based on estimates of the ultimate cost of all losses including losses incurred but not reported ("IBNR"). These estimated ultimate reserves are based on the Company’s own actuarial estimates derived from reports received from ceding companies, industry data and historical experience. These estimates are reviewed by the Company periodically on a contract by contract basis and adjusted as necessary. Since reserves are estimates, the final settlement of losses may vary from the reserves established and any adjustments to the estimates, which may be material, are recorded in the period they are determined. | ||||||||||||
Loss and loss adjustment expenses recoverable include the amounts due from retrocessionaires for unpaid loss and loss adjustment expenses on retrocession agreements. Ceded losses incurred but not reported are estimated based on the Company’s actuarial estimates. These estimates are reviewed periodically and adjusted when deemed necessary. The Company may not be able to ultimately recover the loss and loss adjustment expense recoverable amounts due to the retrocessionaires’ inability to pay. The Company regularly evaluates the financial condition of its retrocessionaires and records provisions for uncollectible reinsurance expenses recoverable when recovery is no longer probable. | ||||||||||||
Notes Receivable, Policy [Policy Text Block] | Notes Receivable | |||||||||||
Notes receivable include promissory notes receivable from third party entities. These notes are recorded at cost along with accrued interest, if any, which approximates the fair value. The Company regularly reviews all notes receivable individually for impairment and records provisions for uncollectible and non-performing notes. The Company places notes on non-accrual status when the value of the note is not considered impaired but there is uncertainty as to the collection of interest based on the terms of the note. The Company resumes accrual of interest on a note when none of the principal or interest remains past due or outstanding, and the Company expects to collect the remaining contractual principal and interest. Interest collected on notes that are placed on non-accrual status is treated on a cash-basis and recorded as interest income when collected, provided that the recorded value of the note is deemed to be fully collectible. Where doubt exists as to the collectability of the remaining recorded value of the notes placed on non-accrual status, any payments received are applied to reduce the recorded value of the notes. | ||||||||||||
For the nine months ended September 30, 2013, the notes receivable earned interest at annual interest rates ranging from 10.0% to 16.0% and had remaining maturity terms ranging from approximately 2 years to 6 years. Interest income earned on notes receivable is included under net investment income in the condensed consolidated statements of income. | ||||||||||||
At September 30, 2013, included in the notes receivable balance was $10.5 million (December 31, 2012: $16.5 million), related to a note placed on non-accrual status based on expectations of the Company’s ability to collect any interest that would accrue up to maturity. For the nine months ended September 30, 2013 and 2012, no interest was received relating to the notes placed on non-accrual status. During the nine months ended September 30, 2013 and 2012, the Company recorded an impairment charge of $6.0 million and nil, respectively, relating to the accrued interest and principal on the note placed on non-accrual status. There were no impairment charges for the three months ended September 30, 2013 and 2012. Impairment charges are included under net investment income in the condensed consolidated statements of income. | ||||||||||||
At September 30, 2013, included in the notes receivable balance was $0.1 million of accrued interest (December 31, 2012: $2.0 million). Based on management’s assessment, the recorded values of the notes receivable, net of valuation allowance, at September 30, 2013 and December 31, 2012, were expected to be fully collectible and therefore no other provision for uncollectible amounts was deemed necessary at September 30, 2013 or December 31, 2012. | ||||||||||||
Deposit Assets and Liabilities, Policy [Policy Text Block] | Deposit Assets and Liabilities | |||||||||||
In accordance with U.S. GAAP, deposit accounting is used in the event that a reinsurance contract does not transfer sufficient risk, or a contract provides retroactive reinsurance. Any losses on such contracts are charged to earnings immediately. Any gains relating to such contracts are deferred and amortized over the estimated remaining settlement period. All such deferred gains are included in reinsurance balances payable in the condensed consolidated balance sheets. Amortized gains are recorded in the condensed consolidated statements of income as other income. At September 30, 2013, included in the condensed consolidated balance sheets under reinsurance balances receivable and reinsurance balances payable were $2.5 million and $0 of deposit assets and deposit liabilities (December 31, 2012: $5.1 million and $0.7 million), respectively. For the three and nine months ended September 30, 2013, $0.0 million and $0.5 million, respectively, was included in other income (expense), net, relating to losses on deposit accounted contracts (2012: $0.0 million and $0.2 million). For the three and nine months ended September 30, 2013 and 2012, there were no gains on deposit accounted contracts. | ||||||||||||
Fixed Assets, Policy [Policy Text Block] | Fixed Assets | |||||||||||
Fixed assets are included in other assets on the condensed consolidated balance sheets and are recorded at cost when acquired. Fixed assets are comprised of computer software, furniture and fixtures and leasehold improvements and are depreciated, using the straight-line method, over their estimated useful lives, which are five years for both computer software, and furniture and fixtures. Leasehold improvements are amortized over the lesser of the estimated useful lives of the assets or remaining lease term. | ||||||||||||
At September 30, 2013, the cost, accumulated depreciation and net book values of the fixed assets were as follows: | ||||||||||||
Cost | Accumulated depreciation | |||||||||||
Net book value | ||||||||||||
($ in thousands) | ||||||||||||
Computer software | $ | 200 | $ | (200 | ) | $ | — | |||||
Furniture and fixtures | 620 | (309 | ) | 311 | ||||||||
Leasehold improvements | 2,002 | (637 | ) | 1,365 | ||||||||
Total | $ | 2,822 | $ | (1,146 | ) | $ | 1,676 | |||||
At December 31, 2012, the cost, accumulated depreciation and net book values of the fixed assets were as follows: | ||||||||||||
Cost | Accumulated depreciation | |||||||||||
Net book value | ||||||||||||
($ in thousands) | ||||||||||||
Computer software | $ | 200 | $ | (200 | ) | $ | — | |||||
Furniture and fixtures | 451 | (232 | ) | 219 | ||||||||
Leasehold improvements | 1,487 | (492 | ) | 995 | ||||||||
Total | $ | 2,138 | $ | (924 | ) | $ | 1,214 | |||||
The Company periodically reviews fixed assets that have finite lives, and that are not held for sale, for impairment by comparing the carrying value of the assets to their estimated future undiscounted cash flows. For the nine months ended September 30, 2013 and 2012, there were no impairments in fixed assets. | ||||||||||||
Financial Instruments, Policy [Policy Text Block] | Financial Instruments | |||||||||||
Investments in Securities and Investments in Securities Sold, Not Yet Purchased | ||||||||||||
The Company’s investments in debt instruments and equity securities that are classified as "trading securities" are carried at fair value. The fair values of the listed equity investments are derived based on quoted prices (unadjusted) in active markets for identical assets (Level 1 inputs). The fair values of listed equities that have restrictions on sale or transfer which expire within one year, are determined by adjusting the observed market price of the equity using a liquidity discount based on observable market inputs. The fair values of debt instruments are derived based on inputs that are observable, either directly or indirectly, such as market maker or broker quotes reflecting recent transactions (Level 2 inputs), and are generally derived based on the average of multiple market maker or broker quotes which are considered to be binding. Where quotes are not available, debt instruments are valued using cash flow models using assumptions and estimates that may be subjective and non-observable (Level 3 inputs). | ||||||||||||
The Company’s "other investments" may include investments in private and unlisted equity securities, limited partnerships, and commodities, which are all carried at fair value. The fair values of commodities are determined based on quoted prices in active markets for identical assets (Level 1). The Company maximizes the use of observable direct or indirect inputs (Level 2 inputs) when deriving the fair values for "other investments". For limited partnerships and private and unlisted equity securities, where observable inputs are not available, the fair values are derived based on unobservable inputs (Level 3 inputs) such as management’s assumptions developed from available information using the services of the investment advisor, including the most recent net asset values obtained from the managers of those underlying investments. | ||||||||||||
For securities classified as "trading securities" and "other investments", any realized and unrealized gains or losses are determined on the basis of the specific identification method (by reference to cost or amortized cost, as appropriate) and included in net investment income in the condensed consolidated statements of income. | ||||||||||||
Dividend income and expense are recorded on the ex-dividend date. The ex-dividend date is the date as of when the underlying security must have been traded to be eligible for the dividend declared. Interest income and interest expense are recorded on an accrual basis. | ||||||||||||
Derivative Financial Instruments, Policy [Policy Text Block] | Derivative Financial Instruments | |||||||||||
U.S. GAAP requires that an entity recognize all derivatives in the balance sheet at fair value. It also requires that unrealized gains and losses resulting from changes in fair value be included in income or comprehensive income, depending on whether the instrument qualifies as a hedge transaction, and if so, the type of hedge transaction. The Company’s derivative financial instrument assets are included in financial contracts receivable. Derivative financial instrument liabilities are generally included in financial contracts payable. The Company's derivatives do not qualify as hedges for financial reporting purposes and are recorded in the condensed consolidated balance sheets on a gross basis and not offset against any collateral pledged or received. Pursuant to the International Swaps and Derivatives Association ("ISDA") master agreements, securities lending agreements and other derivatives agreements, the Company and its counterparties typically have the ability to net certain payments owed to each other in specified circumstances. In addition, in the event a party to one of the ISDA master agreements, securities lending agreements or other derivatives agreements defaults, or a transaction is otherwise subject to termination, the non-defaulting party generally has the right to set off against payments owed to the defaulting party or collateral held by the non-defaulting party. | ||||||||||||
Financial Contracts | ||||||||||||
The Company enters into financial contracts with counterparties as part of its investment strategy. Financial contracts which include total return swaps, credit default swaps ("CDS"), futures, options, currency forwards and other derivative instruments are recorded at their fair value with any unrealized gains and losses included in net investment income in the consolidated statements of income. Financial contracts receivable represents derivative contracts whereby, based upon the contract's current fair value, the Company will be entitled to receive payments upon settlement of the contract. Financial contracts payable represents derivative contracts whereby, based upon the contract's current fair value, the Company will be obligated to make payments upon settlement of the contract. | ||||||||||||
Total return swap agreements, included on the condensed consolidated balance sheets as financial contracts receivable and financial contracts payable, are derivative financial instruments whereby the Company is either entitled to receive or obligated to pay the product of a notional amount multiplied by the movement in an underlying security, which the Company may not own, over a specified time frame. In addition, the Company may also be obligated to pay or receive other payments based on interest rates, dividend payments and receipts, or foreign exchange movements during a specified period. The Company measures its rights or obligations to the counterparty based on the fair value movements of the underlying security together with any other payments due. These contracts are carried at fair value, based on observable inputs (Level 2 inputs) with the resultant unrealized gains and losses reflected in net investment income in the consolidated statements of income. Additionally, any changes in the value of amounts received or paid on swap contracts are reported as a gain or loss in net investment income in the condensed consolidated statements of income. | ||||||||||||
Financial contracts may also include exchange traded futures or options contracts that are based on the movement of a particular index, equity security, commodity, currency or interest rate. Where such contracts are traded in an active market, the Company’s obligations or rights on these contracts are recorded at fair value based on the observable quoted prices of the same or similar financial contracts in an active market (Level 1) or on broker quotes which reflect market information based on actual transactions (Level 2). Amounts invested in exchange traded options and over the counter ("OTC") options are recorded either as an asset or liability at inception. Subsequent to initial recognition, unexpired exchange traded option contracts are recorded at fair value based on quoted prices in active markets (Level 1). For OTC options or exchange traded options where a quoted price in an active market is not available, fair values are derived based upon observable inputs (Level 2) such as multiple quotes from brokers and market makers, which are considered to be binding. | ||||||||||||
The Company purchases and sells CDS for strategic investment purposes. A CDS is a derivative instrument that provides protection against an investment loss due to specified credit or default events of a reference entity. The seller of a CDS guarantees to pay the buyer a specified amount if the reference entity defaults on its obligations or fails to perform. The buyer of a CDS pays a premium over time to the seller in exchange for obtaining this protection. A CDS trading in an active market is valued at fair value based on broker or market maker quotes for identical instruments in an active market (Level 2) or based on the current credit spreads on identical contracts (Level 2). | ||||||||||||
Comprehensive Income (Loss), Policy [Policy Text Block] | Comprehensive Income (Loss) | |||||||||||
The Company has no other comprehensive income (loss), other than the net income (loss) disclosed in the condensed consolidated statements of income. | ||||||||||||
Earnings Per Share, Policy [Policy Text Block] | Earnings Per Share | |||||||||||
Basic earnings per share are based on the weighted average number of common shares and participating securities outstanding during the period. Diluted earnings per share includes the dilutive effect of restricted stock units ("RSU") and additional potential common shares issuable when stock options are exercised and are determined using the treasury stock method. The Company treats its unvested restricted stock as participating securities in accordance with U.S. GAAP, which requires that unvested stock awards which contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid (referred to as "participating securities"), be included in the number of shares outstanding for both basic and diluted earnings per share calculations. In the event of a net loss, all RSUs, stock options outstanding and all participating securities are excluded from the calculation of both basic and diluted loss per share since their inclusion would be anti-dilutive. | ||||||||||||
Three months ended September 30 | Nine months ended September 30 | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Weighted average shares outstanding - basic | 36,875,716 | 36,678,653 | 36,820,199 | 36,630,136 | ||||||||
Effect of dilutive service provider share-based awards | 157,281 | 147,659 | 150,039 | 148,518 | ||||||||
Effect of dilutive employee and director share-based awards | 612,056 | 576,413 | 571,385 | 581,395 | ||||||||
Weighted average share outstanding - diluted | 37,645,053 | 37,402,725 | 37,541,623 | 37,360,049 | ||||||||
Anti-dilutive stock options outstanding | 180,000 | 180,000 | 218,197 | 180,000 | ||||||||
Taxation, Policy [Policy Text Block] | Taxation | |||||||||||
Under current Cayman Islands law, no corporate entity, including GLRE and Greenlight Re, is obligated to pay taxes in the Cayman Islands on either income or capital gains. The Company has an undertaking from the Governor-in-Cabinet of the Cayman Islands, pursuant to the provisions of the Tax Concessions Law, as amended, that, in the event that the Cayman Islands enacts any legislation that imposes tax on profits, income, gains or appreciations, or any tax in the nature of estate duty or inheritance tax, such tax will not be applicable to GLRE, Greenlight Re nor their respective operations, or to the Class A or Class B ordinary shares or related obligations, until February 1, 2025. | ||||||||||||
Verdant is incorporated in Delaware and therefore is subject to taxes in accordance with the U.S. federal rates and regulations prescribed by the U.S. Internal Revenue Service. Verdant’s taxable income is generally expected to be taxed at a rate of 35%. | ||||||||||||
GRIL is incorporated in Ireland and therefore is subject to the Irish corporation tax rate of 12.5% on its trading income, and 25% on its non-trading income, if any. | ||||||||||||
Any deferred tax asset is evaluated for recovery and a valuation allowance is recorded when it is more likely than not that the deferred tax asset will not be realized in the future. The Company has not taken any income tax positions that are subject to significant uncertainty or that are reasonably likely to have a material impact on the Company. | ||||||||||||
Recently Adopted Accounting Standards, Policy [Policy Text Block] | Recently Adopted Accounting Standards | |||||||||||
In January 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2013-01 ("ASU 2013-01"), Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. ASU 2013-01 clarifies the scope of Accounting Standards Update No. 2011-11 ("ASU 2011-11"), Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities. ASU 2011-11 originally required enhanced disclosures by requiring improved information about financial instruments and derivative instruments. ASU 2013-01 clarifies that ASU 2011-11 applies to derivatives including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset or subject to an enforceable master netting arrangement or similar agreement. ASU 2013-01 also clarifies that other types of financial assets and financial liabilities subject to a master netting arrangement are no longer subject to the disclosure requirements of ASU 2011-11. ASU 2011-11 and ASU 2013-01 became effective for the Company during the first quarter of 2013 with retrospective disclosure required for all comparative periods presented. The adoption of ASU 2011-11 and ASU 2013-01 did not have a material impact on the Company’s results of operations or financial position as it only affected the Company's disclosures. |
SIGNIFICANT_ACCOUNTING_POLICIE2
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||||
Fixed Assets [Table Text Block] | At September 30, 2013, the cost, accumulated depreciation and net book values of the fixed assets were as follows: | At December 31, 2012, the cost, accumulated depreciation and net book values of the fixed assets were as follows: | ||||||||||||||||||||||
Cost | Accumulated depreciation | Cost | Accumulated depreciation | |||||||||||||||||||||
Net book value | Net book value | |||||||||||||||||||||||
($ in thousands) | ($ in thousands) | |||||||||||||||||||||||
Computer software | $ | 200 | $ | (200 | ) | $ | — | Computer software | $ | 200 | $ | (200 | ) | $ | — | |||||||||
Furniture and fixtures | 620 | (309 | ) | 311 | Furniture and fixtures | 451 | (232 | ) | 219 | |||||||||||||||
Leasehold improvements | 2,002 | (637 | ) | 1,365 | Leasehold improvements | 1,487 | (492 | ) | 995 | |||||||||||||||
Total | $ | 2,822 | $ | (1,146 | ) | $ | 1,676 | Total | $ | 2,138 | $ | (924 | ) | $ | 1,214 | |||||||||
Earnings Per Share Reconciliation [Table Text Block] | ||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Weighted average shares outstanding - basic | 36,875,716 | 36,678,653 | 36,820,199 | 36,630,136 | ||||||||||||||||||||
Effect of dilutive service provider share-based awards | 157,281 | 147,659 | 150,039 | 148,518 | ||||||||||||||||||||
Effect of dilutive employee and director share-based awards | 612,056 | 576,413 | 571,385 | 581,395 | ||||||||||||||||||||
Weighted average share outstanding - diluted | 37,645,053 | 37,402,725 | 37,541,623 | 37,360,049 | ||||||||||||||||||||
Anti-dilutive stock options outstanding | 180,000 | 180,000 | 218,197 | 180,000 | ||||||||||||||||||||
FINANCIAL_INSTRUMENTS_Tables
FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Hierarchy [Table Text Block] | The following table presents the Company’s investments, categorized by the level of the fair value hierarchy as of September 30, 2013: | The following table presents the Company’s investments, categorized by the level of the fair value hierarchy as of December 31, 2012: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value measurements as of September 30, 2013 | Fair value measurements as of December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quoted prices in | Significant other | Significant | Total | Quoted prices in | Significant other | Significant | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
active markets | observable | unobservable | active markets | observable | unobservable | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description | (Level 1) | inputs | inputs | Description | (Level 1) | inputs | inputs | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Level 2) | (Level 3) | (Level 2) | (Level 3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets: | ($ in thousands) | Assets: | ($ in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instruments | $ | — | $ | 4,057 | $ | 8,442 | $ | 12,499 | Debt instruments | $ | — | $ | 1,503 | $ | 260 | $ | 1,763 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Listed equity securities | 1,023,312 | 6,895 | — | 1,030,207 | Listed equity securities | 1,040,562 | 2,153 | — | 1,042,715 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commodities | 67,149 | — | — | 67,149 | Commodities | 94,649 | — | — | 94,649 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private and unlisted equity securities | — | — | 40,097 | 40,097 | Private and unlisted equity securities | — | — | 38,801 | 38,801 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial contracts receivable | 715 | 84,840 | — | 85,555 | Financial contracts receivable | — | 22,744 | — | 22,744 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 1,091,176 | $ | 95,792 | $ | 48,539 | $ | 1,235,507 | $ | 1,135,211 | $ | 26,400 | $ | 39,061 | $ | 1,200,672 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities: | Liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Listed equity securities, sold not yet purchased | $ | (873,594 | ) | $ | — | $ | — | $ | (873,594 | ) | Listed equity securities, sold not yet purchased | $ | (679,897 | ) | $ | — | $ | — | $ | (679,897 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instruments, sold not yet purchased | — | (191,478 | ) | — | (191,478 | ) | Debt instruments, sold not yet purchased | — | (228,471 | ) | — | (228,471 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial contracts payable | — | (17,962 | ) | — | (17,962 | ) | Financial contracts payable | — | (19,637 | ) | — | (19,637 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | (873,594 | ) | $ | (209,440 | ) | $ | — | $ | (1,083,034 | ) | $ | (679,897 | ) | $ | (248,108 | ) | $ | — | $ | (928,005 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs [Table Text Block] | The following table presents the reconciliation of the balances for all investments measured at fair value using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2013: | The following table presents the reconciliation of the balances for all investments measured at fair value using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2012: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | 2012 | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instruments | Private and unlisted equity securities | Total | Debt instruments | Private and unlisted equity securities | Total | Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | Debt instruments | Private and unlisted equity securities | Financial contracts receivable | Total | Debt instruments | Private and unlisted equity securities | Financial contracts receivable | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 4,838 | $ | 43,257 | $ | 48,095 | $ | 260 | $ | 38,801 | $ | 39,061 | ($ in thousands) | ($ in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 343 | $ | 38,805 | $ | 14 | $ | 39,162 | $ | 465 | $ | 31,179 | $ | 263 | $ | 31,907 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases | 3,604 | 416 | 4,020 | 8,230 | 31,756 | 39,986 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases | — | 365 | — | 365 | — | 7,277 | — | 7,277 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales | — | (829 | ) | (829 | ) | (28 | ) | (6,934 | ) | (6,962 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales | — | (300 | ) | — | (300 | ) | (1 | ) | (792 | ) | — | (793 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlements | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlements | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total realized and unrealized gains (losses) and amortization included in earnings, net | — | 2,198 | 2,198 | (20 | ) | 1,055 | 1,035 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total realized and unrealized gains (losses) and amortization included in earnings, net | (4 | ) | 945 | (14 | ) | 927 | (125 | ) | 3,299 | (263 | ) | 2,911 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 | — | (4,945 | ) | (4,945 | ) | — | (24,581 | ) | (24,581 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 | — | (3,828 | ) | — | (3,828 | ) | — | (4,976 | ) | — | (4,976 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 8,442 | $ | 40,097 | $ | 48,539 | $ | 8,442 | $ | 40,097 | $ | 48,539 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 339 | $ | 35,987 | $ | — | $ | 36,326 | $ | 339 | $ | 35,987 | $ | — | $ | 36,326 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FINANCIAL_INSTRUMENTS_Debt_ins
FINANCIAL INSTRUMENTS Debt instruments (Tables) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instruments, trading [Table Text Block] | At September 30, 2013, the following investments were included in debt instruments: | At December 31, 2012, the following investments were included in debt instruments: | |||||||||||||||||||||||||||||||||||||||||||||||||
2013 | Cost/ | Unrealized | Unrealized | Fair | 2012 | Cost/ | Unrealized | Unrealized | Fair | ||||||||||||||||||||||||||||||||||||||||||
amortized | gains | losses | value | amortized | gains | losses | value | ||||||||||||||||||||||||||||||||||||||||||||
cost | cost | ||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt – U.S. | $ | 10,318 | $ | — | $ | (1,876 | ) | $ | 8,442 | Corporate debt – U.S. | $ | 2,317 | $ | 205 | $ | (1,856 | ) | $ | 666 | ||||||||||||||||||||||||||||||||
Corporate debt – Non U.S. | 3,761 | 306 | (10 | ) | 4,057 | Corporate debt – Non U.S. | 1,179 | — | (82 | ) | 1,097 | ||||||||||||||||||||||||||||||||||||||||
Total debt instruments | $ | 14,079 | $ | 306 | $ | (1,886 | ) | $ | 12,499 | Total debt instruments | $ | 3,496 | $ | 205 | $ | (1,938 | ) | $ | 1,763 | ||||||||||||||||||||||||||||||||
Maturity Distribution for Debt Instruments [Table Text Block] | The maturity distribution for debt instruments held at September 30, 2013 and December 31, 2012 was as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cost/ | Fair | Cost/ | Fair | ||||||||||||||||||||||||||||||||||||||||||||||||
amortized | value | amortized | value | ||||||||||||||||||||||||||||||||||||||||||||||||
cost | cost | ||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Within one year | $ | 8,202 | $ | 8,202 | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||||||
From one to five years | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
From five to ten years | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
More than ten years | 5,877 | 4,297 | 3,496 | 1,763 | |||||||||||||||||||||||||||||||||||||||||||||||
$ | 14,079 | $ | 12,499 | $ | 3,496 | $ | 1,763 | ||||||||||||||||||||||||||||||||||||||||||||
Investment in Equity Securities, Trading [Table Text Block] | Investment in Equity Securities, Trading | At December 31, 2012, the following long positions were included in investment securities, trading: | |||||||||||||||||||||||||||||||||||||||||||||||||
At September 30, 2013, the following long positions were included in investment securities, trading: | |||||||||||||||||||||||||||||||||||||||||||||||||||
2012 | Cost | Unrealized | Unrealized | Fair | |||||||||||||||||||||||||||||||||||||||||||||||
gains | losses | value | |||||||||||||||||||||||||||||||||||||||||||||||||
2013 | Cost | Unrealized | Unrealized | Fair | ($ in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||
gains | losses | value | Equities – listed | $ | 875,322 | $ | 199,519 | $ | (70,275 | ) | $ | 1,004,566 | |||||||||||||||||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Equities – listed | $ | 752,732 | $ | 271,262 | $ | (24,075 | ) | $ | 999,919 | Exchange traded funds | 38,819 | — | (670 | ) | 38,149 | ||||||||||||||||||||||||||||||||||||
Exchange traded funds | 50,253 | — | (19,965 | ) | 30,288 | $ | 914,141 | $ | 199,519 | $ | (70,945 | ) | $ | 1,042,715 | |||||||||||||||||||||||||||||||||||||
$ | 802,985 | $ | 271,262 | $ | (44,040 | ) | $ | 1,030,207 | |||||||||||||||||||||||||||||||||||||||||||
Other Investments [Table Text Block] | At September 30, 2013, the following securities were included in other investments: | At December 31, 2012, the following securities were included in other investments: | |||||||||||||||||||||||||||||||||||||||||||||||||
2013 | Cost | Unrealized | Unrealized | Fair | 2012 | Cost | Unrealized | Unrealized | Fair | ||||||||||||||||||||||||||||||||||||||||||
gains | losses | value | gains | losses | value | ||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commodities | $ | 54,633 | $ | 12,516 | $ | — | $ | 67,149 | Commodities | $ | 59,929 | $ | 34,719 | $ | — | $ | 94,648 | ||||||||||||||||||||||||||||||||||
Private and unlisted equity securities | 39,421 | 8,425 | (7,749 | ) | 40,097 | Private and unlisted equity securities | 36,672 | 4,914 | (2,784 | ) | 38,802 | ||||||||||||||||||||||||||||||||||||||||
$ | 94,054 | $ | 20,941 | $ | (7,749 | ) | $ | 107,246 | $ | 96,601 | $ | 39,633 | $ | (2,784 | ) | $ | 133,450 | ||||||||||||||||||||||||||||||||||
Investments in Securities Sold, Not Yet Purchased [Table Text Block] | Investments in Securities Sold, Not Yet Purchased | At December 31, 2012, the following securities were included in investments in securities sold, not yet purchased: | |||||||||||||||||||||||||||||||||||||||||||||||||
At September 30, 2013, the following securities were included in investments in securities sold, not yet purchased: | |||||||||||||||||||||||||||||||||||||||||||||||||||
2012 | Proceeds | Unrealized gains | Unrealized losses | Fair value | |||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | Proceeds | Unrealized gains | Unrealized losses | Fair value | Equities – listed | $ | (697,278 | ) | $ | 76,172 | $ | (58,791 | ) | $ | (679,897 | ) | |||||||||||||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Equities – listed | $ | (811,901 | ) | $ | 71,159 | $ | (125,362 | ) | $ | (866,104 | ) | Corporate debt – U.S. | (7,353 | ) | 26 | (381 | ) | (7,708 | ) | ||||||||||||||||||||||||||||||||
Exchange traded funds | (6,318 | ) | — | (1,172 | ) | (7,490 | ) | Sovereign debt – Non U.S. | (207,122 | ) | — | (13,641 | ) | (220,763 | ) | ||||||||||||||||||||||||||||||||||||
Corporate debt – U.S. | (7,454 | ) | 5 | (239 | ) | (7,688 | ) | $ | (911,753 | ) | $ | 76,198 | $ | (72,813 | ) | $ | (908,368 | ) | |||||||||||||||||||||||||||||||||
Sovereign debt – Non U.S. | (170,376 | ) | — | (13,414 | ) | (183,790 | ) | ||||||||||||||||||||||||||||||||||||||||||||
$ | (996,049 | ) | $ | 71,164 | $ | (140,187 | ) | $ | (1,065,072 | ) | |||||||||||||||||||||||||||||||||||||||||
FINANCIAL_INSTRUMENTS_Derivati
FINANCIAL INSTRUMENTS Derivatives (Tables) | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair values of Financial Contracts Outstanding [Table Text Block] | At September 30, 2013, the fair values of financial contracts outstanding were as follows: | At December 31, 2012, the fair values of financial contracts outstanding were as follows: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Contracts | Listing | Notional amount of | Fair value of net assets | Financial Contracts | Listing | Notional amount of | Fair value of net assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||
currency | underlying instruments | (obligations) | currency | underlying instruments | (obligations) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
on financial | on financial | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
contracts | contracts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial contracts receivable | Financial contracts receivable | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Call options | USD | 46,190 | $ | 1,372 | Call options | USD | 90,374 | $ | 4,498 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Forwards | JPY | 107,884 | 172 | Credit default swaps, purchased – corporate debt | USD | 39,665 | 265 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Futures | JPY | 41,450 | 715 | Interest rate options | USD | 2,299,933 | 109 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate options | USD | 1,878,031 | 45 | Put options | USD | 314,695 | 17,709 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Put options | USD | 222,058 | 13,528 | Total return swaps – equities | GBP/HKD/JPY | 3,664 | 163 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return swaps – equities | EUR/GBP/HKD/USD | 204,649 | 68,093 | Total financial contracts receivable, at fair value | $ | 22,744 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Warrants and rights on listed equities | EUR | 1,630 | 1,630 | Financial contracts payable | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit default swaps, purchased – corporate debt | USD | 234,212 | $ | (3,365 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total financial contracts receivable, at fair value | $ | 85,555 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit default swaps, purchased – sovereign debt | USD | 251,467 | (5,443 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial contracts payable | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit default swaps, purchased – corporate debt | USD | 273,877 | (3,682 | ) | Put options | USD | 16,071 | (1,636 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Credit default swaps, purchased – sovereign debt | USD | 251,467 | $ | (4,494 | ) | Total return swaps – equities | GBP/HKD | 76,697 | (9,193 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Forwards | KRW | 25,858 | (584 | ) | Total financial contracts payable, at fair value | $ | (19,637 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total return swaps – equities | EUR/GBP/HKD | 31,169 | (9,202 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total financial contracts payable, at fair value | $ | (17,962 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain (Loss) on derivatives recognized in income [Table Text Block] | During the three and nine months ended September 30, 2013 and 2012, the Company reported gains and losses on derivatives as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | Location of gains and losses on derivatives recognized in income | Gain (loss) on derivatives recognized | Gain (loss) on derivatives recognized | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
in income | in income | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit default swaps, purchased – corporate debt | Net investment income (loss) | $ | (589 | ) | $ | (2,448 | ) | $ | (2,847 | ) | $ | (6,448 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Credit default swaps, purchased – sovereign debt | Net investment income (loss) | (942 | ) | (849 | ) | (957 | ) | (4,793 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Currency forwards | Net investment income (loss) | (1,282 | ) | — | 5,780 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Futures | Net investment income (loss) | 3,628 | (4,542 | ) | 4,677 | (12,501 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate options | Net investment income (loss) | (97 | ) | (379 | ) | (62 | ) | (1,982 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Options, warrants, and rights | Net investment income (loss) | (12,025 | ) | (3,406 | ) | 20,681 | (13,572 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total return swaps – equities | Net investment income (loss) | 38,825 | (1,571 | ) | 59,507 | (4,053 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Weather derivative swap | Other income (expense), net | — | (14 | ) | — | (263 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 27,518 | $ | (13,209 | ) | $ | 86,779 | $ | (43,612 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives volume of activities, based on notional amounts [Table Text Block] | For the three and nine months ended September 30, 2013, the Company’s volume of derivative activities (based on notional amounts) was as follows: | For the three and nine months ended September 30, 2012, the Company’s volume of derivative activities (based on notional amounts) was as follows: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | Three months ended September 30 | Nine months ended September 30 | 2012 | Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | Entered | Exited | Entered | Exited | Derivatives not designated as hedging instruments | Entered | Exited | Entered | Exited | ||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | ($ in thousands) | ($ in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency forwards | $ | 30,817 | $ | — | $ | 417,754 | $ | 115,884 | Credit default swaps | $ | — | $ | — | $ | — | $ | 45,966 | ||||||||||||||||||||||||||||||||||||||||||
Futures | — | 12,778 | 218,519 | 180,027 | Futures | 259,225 | 393,683 | 1,023,492 | 1,023,239 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate options | — | 95,400 | — | 376,385 | Options | 91,011 | 36,851 | 535,218 | 239,554 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Options | 232,530 | 272,988 | 765,509 | 814,812 | Total return swaps | 17,340 | 10,645 | 20,146 | 31,199 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total return swaps | 16,606 | 6,736 | 187,862 | 54,846 | Weather derivative swap | — | 5,000 | — | 5,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 279,953 | $ | 387,902 | $ | 1,589,644 | $ | 1,541,954 | Total | $ | 367,576 | $ | 446,179 | $ | 1,578,856 | $ | 1,344,958 | ||||||||||||||||||||||||||||||||||||||||||
Offsetting assets and liabilities [Table Text Block] | As of September 30, 2013, the gross and net amounts of derivative instruments and the cash collateral applicable to derivative instruments were as follows: | As of December 31, 2012, the gross and net amounts of derivative instruments and the cash collateral applicable to derivative instruments were as follows: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2013 | (i) | (ii) | (iii) =i) - (ii) | (iv) Gross amounts not offset in the balance sheet | (v) =iii) + (iv) | December 31, 2012 | (i) | (ii) | (iii) =i) - (ii) | (iv) Gross amounts not offset in the balance sheet | (v) =iii) + (iv) | ||||||||||||||||||||||||||||||||||||||||||||||||
Description | Gross amounts of recognized assets (liabilities) | Gross amounts offset in the balance sheet | Net amounts of assets (liabilities) presented in the balance sheet | Cash collateral (received) pledged | Net amount of asset (liability) | Description | Gross amounts of recognized assets (liabilities) | Gross amounts offset in the balance sheet | Net amounts of assets (liabilities) presented in the balance sheet | Cash collateral (received) pledged | Net amount of asset (liability) | ||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial contracts receivable | $ | 85,555 | $ | — | $ | 85,555 | $ | (30,251 | ) | $ | 55,304 | Financial contracts receivable | $ | 22,744 | $ | — | $ | 22,744 | $ | (947 | ) | $ | 21,797 | ||||||||||||||||||||||||||||||||||||
Financial contracts payable | $ | (17,962 | ) | $ | — | $ | (17,962 | ) | $ | 34,606 | $ | 16,644 | Financial contracts payable | $ | (19,637 | ) | $ | — | $ | (19,637 | ) | $ | 39,268 | $ | 19,631 | ||||||||||||||||||||||||||||||||||
Securities sold, not yet purchased | $ | (1,065,072 | ) | $ | — | $ | (1,065,072 | ) | $ | 1,065,072 | $ | — | Securities sold, not yet purchased | $ | (908,368 | ) | $ | — | $ | (908,368 | ) | $ | 908,368 | $ | — | ||||||||||||||||||||||||||||||||||
SHAREBASED_COMPENSATION_Tables
SHARE-BASED COMPENSATION (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The Company uses the Black-Scholes option pricing model to determine the valuation of its options and has applied the assumptions set forth in the following table. | |||||||||||
2013 | 2012 | |||||||||||
Risk free rate | 2.85 | % | 1.5 | % | ||||||||
Estimated volatility | 35 | % | 35 | % | ||||||||
Expected term (in years) | 10 | 10 | ||||||||||
Dividend yield | 0 | % | 0 | % | ||||||||
Forfeiture rate | 0 | % | 0 | % | ||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Employee and director stock option activity during the nine months ended September 30, 2013 was as follows: | |||||||||||
Number of | Weighted | Weighted | ||||||||||
options | average | average | ||||||||||
exercise | grant date | |||||||||||
price | fair value | |||||||||||
Balance at December 31, 2012 | 1,421,290 | $ | 15.36 | $ | 6.87 | |||||||
Granted | 38,197 | 26.44 | 13.09 | |||||||||
Exercised | (44,500 | ) | 11.54 | 5.73 | ||||||||
Forfeited | — | — | — | |||||||||
Expired | — | — | — | |||||||||
Balance at September 30, 2013 | 1,414,987 | $ | 15.78 | $ | 7.07 | |||||||
Restricted Stock [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | The restricted share award activity during the nine months ended September 30, 2013 was as follows: | |||||||||||
Number of | Weighted | |||||||||||
non-vested | average | |||||||||||
restricted | grant date | |||||||||||
shares | fair value | |||||||||||
Balance at December 31, 2012 | 308,406 | $ | 24.93 | |||||||||
Granted | 147,605 | 24.59 | ||||||||||
Vested | (110,194 | ) | 25.08 | |||||||||
Forfeited | (16,826 | ) | 24.55 | |||||||||
Balance at September 30, 2013 | 328,991 | $ | 24.74 | |||||||||
Restricted Stock Units (RSUs) [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | ||||||||||||
Number of | Weighted | |||||||||||
non-vested | average | |||||||||||
RSUs | grant date | |||||||||||
fair value | ||||||||||||
Balance at December 31, 2012 | — | $ | — | |||||||||
Granted | 5,347 | 24.41 | ||||||||||
Vested | — | — | ||||||||||
Forfeited | — | — | ||||||||||
Balance at September 30, 2013 | 5,347 | $ | 24.41 | |||||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Letters of Credit Facilities [Line Items] | |||||||||
Letters of Credit Facilities [Table Text Block] | At September 30, 2013, the Company had the following letter of credit facilities, which automatically renew each year unless terminated by either party in accordance with the required notice period: | ||||||||
Facility | Termination Date | Notice period required for termination | |||||||
($ in thousands) | |||||||||
Bank of America, N.A. | $ | 200,000 | July 20, 2014 | 90 days prior to termination date | |||||
Butterfield Bank (Cayman) Limited | 60,000 | June 30, 2014 | 90 days prior to termination date | ||||||
Citibank Europe plc | 400,000 | October 11, 2014 | 120 days prior to termination date | ||||||
JP Morgan Chase Bank N.A. | 100,000 | January 27, 2015 | 120 days prior to termination date | ||||||
$ | 760,000 | ||||||||
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES Commitments table (Tables) | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES [Abstract] | ||||||||||||||||||||||||||||
Schedule of Committments and Contingencies, Fiscal Year Maturity Schedule [Table Text Block] | Schedule of Commitments and Contingencies | |||||||||||||||||||||||||||
The following is a schedule of future minimum payments required under the above commitments: | ||||||||||||||||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | Thereafter | Total | ||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||
Operating lease obligations | $ | 139 | $ | 556 | $ | 556 | $ | 499 | $ | 466 | $ | 232 | $ | 2,448 | ||||||||||||||
Specialist service agreement | 225 | 700 | 400 | 150 | — | — | 1,475 | |||||||||||||||||||||
Private equity and limited partnerships (1) | 9,890 | — | — | — | — | — | 9,890 | |||||||||||||||||||||
$ | 10,254 | $ | 1,256 | $ | 956 | $ | 649 | $ | 466 | $ | 232 | $ | 13,813 | |||||||||||||||
(1) Given the nature of these investments, the Company is unable to determine with any degree of accuracy when these commitments will be called. Therefore, for purposes of the above table, the Company has assumed that all commitments with no fixed payment schedules will be called during the year ended December 31, 2013. |
SEGMENT_REPORTING_Tables
SEGMENT REPORTING (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||
Gross Premiums Written by Line of Business [Table Text Block] | The following tables provide a breakdown of the Company's gross premiums written by line of business and by geographic area of risks insured for the periods indicated: | ||||||||||||||||||||||||||||
Gross Premiums Written by Line of Business | |||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | ||||||||||||||||||||||||||||
Property | |||||||||||||||||||||||||||||
Aviation | $ | — | — | % | $ | — | — | % | $ | 96 | — | % | $ | — | — | % | |||||||||||||
Commercial lines | 789 | 0.5 | — | — | 10,523 | 2.6 | 11,646 | 3.8 | |||||||||||||||||||||
Energy | — | — | — | — | 1,553 | 0.4 | — | — | |||||||||||||||||||||
Motor physical damage | 21,557 | 14.5 | 12,895 | 19 | 48,895 | 11.9 | 48,738 | 16.1 | |||||||||||||||||||||
Personal lines (1) | 34,521 | 23.2 | (1,453 | ) | (2.1 | ) | 108,181 | 26.3 | 51,105 | 16.8 | |||||||||||||||||||
Total Property | 56,867 | 38.2 | 11,442 | 16.9 | 169,248 | 41.2 | 111,489 | 36.7 | |||||||||||||||||||||
Casualty | |||||||||||||||||||||||||||||
General liability (1) | 1,668 | 1.1 | 5,469 | 8.1 | (544 | ) | (0.1 | ) | 20,393 | 6.7 | |||||||||||||||||||
Marine liability | — | — | — | — | 603 | 0.1 | 2,240 | 0.7 | |||||||||||||||||||||
Motor liability | 81,474 | 54.8 | 43,216 | 63.9 | 212,174 | 51.6 | 132,693 | 43.7 | |||||||||||||||||||||
Professional liability (1) | 459 | 0.3 | — | — | 1,583 | 0.4 | (666 | ) | (0.2 | ) | |||||||||||||||||||
Total Casualty | 83,601 | 56.2 | 48,685 | 72 | 213,816 | 52 | 154,660 | 50.9 | |||||||||||||||||||||
Specialty | |||||||||||||||||||||||||||||
Financial (1) | 806 | 0.6 | (3,813 | ) | (5.6 | ) | 2,103 | 0.5 | (508 | ) | (0.2 | ) | |||||||||||||||||
Health | 7,491 | 5 | 9,502 | 14 | 29,975 | 7.3 | 28,888 | 9.5 | |||||||||||||||||||||
Workers’ compensation (1) | — | — | 1,828 | 2.7 | (4,215 | ) | (1.0 | ) | 9,321 | 3.1 | |||||||||||||||||||
Total Specialty | 8,297 | 5.6 | 7,517 | 11.1 | 27,863 | 6.8 | 37,701 | 12.4 | |||||||||||||||||||||
$ | 148,765 | 100 | % | $ | 67,644 | 100 | % | $ | 410,927 | 100 | % | $ | 303,850 | 100 | % | ||||||||||||||
(1) The negative balance represents reversal of premiums due to premium adjustments, termination of contracts or premiums returned upon novation or commutation of contracts. | |||||||||||||||||||||||||||||
Gross Premiums Written by Geographic Area of Risks Insured [Table Text Block] | Gross Premiums Written by Geographic Area of Risks Insured | ||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | ||||||||||||||||||||||||||||
U.S. | $ | 148,249 | 99.7 | % | $ | 71,709 | 106 | % | $ | 400,594 | 97.5 | % | $ | 293,075 | 96.5 | % | |||||||||||||
Worldwide (1) (2) | 379 | 0.2 | (4,065 | ) | (6.0 | ) | 9,814 | 2.4 | 11,113 | 3.6 | |||||||||||||||||||
Caribbean (2) | — | — | — | — | (95 | ) | — | 328 | 0.1 | ||||||||||||||||||||
Europe (2) | 137 | 0.1 | — | — | 614 | 0.1 | (666 | ) | (0.2 | ) | |||||||||||||||||||
$ | 148,765 | 100 | % | $ | 67,644 | 100 | % | $ | 410,927 | 100 | % | $ | 303,850 | 100 | % | ||||||||||||||
-1 | "Worldwide" is comprised of contracts that reinsure risks in more than one geographic area and do not specifically exclude the U.S. | ||||||||||||||||||||||||||||
-2 | The negative balance represents reversal of premiums due to premium adjustments, termination of contracts or premiums returned upon novation or commutation of contracts. |
ORGANIZATION_AND_BASIS_OF_PRES1
ORGANIZATION AND BASIS OF PRESENTATION (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | 30-May-07 |
Entity Information [Line Items] | |||
Sale of Stock at IPO, Price Per Share | 19 | ||
Common Class A [Member] | |||
Entity Information [Line Items] | |||
Common Stock, Shares, Issued | 30,622,458 | 30,447,179 | 11,787,500 |
Common Class B [Member] | |||
Entity Information [Line Items] | |||
Common Stock, Shares, Issued | 6,254,949 | 6,254,949 | 2,631,579 |
SIGNIFICANT_ACCOUNTING_POLICIE3
SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Accounting Policies [Abstract] | |||||
Premium deficiency loss | $0 | $0 | $0 | ||
Profit Commissions Payable | 10,900,000 | 10,900,000 | 9,600,000 | ||
Profit commission expense | 900,000 | 900,000 | 2,100,000 | 1,300,000 | |
Notes receivable interest rate range Start | 10.00% | ||||
notes receivable interest rate range End | 16.00% | ||||
Maturity term of note receivable Start | 2 years | ||||
Maturity term of note receivable End | 6 years | ||||
Financing Receivable, Recorded Investment, Nonaccrual Status | 10,500,000 | 10,500,000 | 16,500,000 | ||
Impaired Financing Receivable, Interest Income, Cash Basis Method | 0 | 0 | |||
Other Asset Impairment Charges | 0 | 0 | 6,000,000 | 0 | |
Interest Receivable | 100,000 | 100,000 | 2,000,000 | ||
Deposit Contracts, Assets | 2,500,000 | 2,500,000 | 5,100,000 | ||
Deposit Contracts, Liabilities | 0 | 0 | 700,000 | ||
Deposit Assets or Liabilities, Amortization Expense from Expirations | 0 | 0 | 500,000 | 200,000 | |
Gain on deposit accounted contracts | 0 | 0 | 0 | ||
Property, Plant and Equipment, Estimated Useful Lives | five years | ||||
Impairment of Long-Lived Assets Held-for-use | $0 | $0 | $0 |
SIGNIFICANT_ACCOUNTING_POLICIE4
SIGNIFICANT ACCOUNTING POLICIES Fixed Assets (Details) (USD $) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Lives | five years | ||
Impairment of Long-Lived Assets Held-for-use | $0 | $0 | $0 |
Property, Plant and Equipment, Gross | 2,822,000 | 2,138,000 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | -1,146,000 | -924,000 | |
Property, Plant and Equipment, Net | 1,676,000 | 1,214,000 | |
Computer Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 200,000 | 200,000 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | -200,000 | -200,000 | |
Property, Plant and Equipment, Net | 0 | 0 | |
Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 620,000 | 451,000 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | -309,000 | -232,000 | |
Property, Plant and Equipment, Net | 311,000 | 219,000 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 2,002,000 | 1,487,000 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | -637,000 | -492,000 | |
Property, Plant and Equipment, Net | $1,365,000 | $995,000 |
SIGNIFICANT_ACCOUNTING_POLICIE5
SIGNIFICANT ACCOUNTING POLICIES Earnings Per Share Reconciliation (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Weighted Average Number of Shares Outstanding, Basic | 36,875,716 | 36,678,653 | 36,820,199 | 36,630,136 |
Effect of dilutive service provider share-based awards | 157,281 | 147,659 | 150,039 | 148,518 |
Effect of dilutive employee and director share-based awards | 612,056 | 576,413 | 571,385 | 581,395 |
Weighted Average Number of Shares Outstanding, Diluted | 37,645,053 | 37,402,725 | 37,541,623 | 37,360,049 |
Stock Options [Member] | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Antidilutive stock options outstanding | 180,000 | 180,000 | 218,197 | 180,000 |
SIGNIFICANT_ACCOUNTING_POLICIE6
SIGNIFICANT ACCOUNTING POLICIES Income taxes (Details) | 9 Months Ended |
Sep. 30, 2013 | |
Internal Revenue Service (IRS) [Member] | |
Effective Income Tax Rate | 35.00% |
Irish tax rate trading Income [Member] | |
Effective Income Tax Rate | 12.50% |
Irish tax rate non-trading income [Member] | |
Effective Income Tax Rate | 25.00% |
FINANCIAL_INSTRUMENTS_Details
FINANCIAL INSTRUMENTS (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Quoted prices in active markets, Level 1 [Member] | Quoted prices in active markets, Level 1 [Member] | Significant other observable inputs, Level 2 [Member] | Significant other observable inputs, Level 2 [Member] | Significant other observable inputs, Level 2 [Member] | Significant other observable inputs, Level 2 [Member] | Significant unobservable inputs, Level 3 [Member] | Significant unobservable inputs, Level 3 [Member] | Corporate debt - U.S. [Member] | Corporate debt - U.S. [Member] | Corporate debt - Non U.S. [Member] | Corporate debt - Non U.S. [Member] | Debt Instruments [Member] | Debt Instruments [Member] | Commodities [Member] | Commodities [Member] | Private and unlisted equity securities [Member] | Private and unlisted equity securities [Member] | Investment Type [Member] | Investment Type [Member] | Securities Sold, Not Yet Purchased [Member] | Securities Sold, Not Yet Purchased [Member] | Securities Sold, Not Yet Purchased [Member] | Securities Sold, Not Yet Purchased [Member] | Securities Sold, Not Yet Purchased [Member] | Securities Sold, Not Yet Purchased [Member] | Securities Sold, Not Yet Purchased [Member] | Securities Sold, Not Yet Purchased [Member] | Securities Sold, Not Yet Purchased [Member] | Equities - listed [Member] | Equities - listed [Member] | Exchange traded funds [Member] | Exchange traded funds [Member] | Total long positions included in investment securities, trading [Member] | Total long positions included in investment securities, trading [Member] | Private and unlisted equity securities [Member] | Private and unlisted equity securities [Member] | Private and unlisted equity securities [Member] | Private and unlisted equity securities [Member] | Private and unlisted equity securities [Member] | Private and unlisted equity securities [Member] | Private and unlisted equity securities [Member] | ||||||
Equities - listed [Member] | Equities - listed [Member] | Exchange traded funds [Member] | Corporate debt - U.S. [Member] | Corporate debt - U.S. [Member] | Sovereign debt - Non U.S. [Member] | Sovereign debt - Non U.S. [Member] | Quoted prices in active markets, Level 1 [Member] | Significant other observable inputs, Level 2 [Member] | Significant other observable inputs, Level 2 [Member] | ||||||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt instruments, trading, at fair value | $12,499,000 | $12,499,000 | $1,763,000 | $0 | $0 | $4,057,000 | $1,503,000 | $8,442,000 | $260,000 | $8,442,000 | $666,000 | $4,057,000 | $1,097,000 | $1,763,000 | |||||||||||||||||||||||||||||||||
Listed equity securities, at fair value | 1,030,207,000 | 1,030,207,000 | 1,042,715,000 | 1,023,312,000 | 1,040,562,000 | 6,895,000 | 2,153,000 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||
Commodities, at fair value | 67,149,000 | 67,149,000 | 94,649,000 | 67,149,000 | 94,649,000 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||
Private and unlisted equity securities | 40,097,000 | 40,097,000 | 38,801,000 | 0 | 0 | 0 | 0 | 40,097,000 | 38,801,000 | ||||||||||||||||||||||||||||||||||||||
Financial contracts receivable, at fair value | 85,555,000 | 85,555,000 | 22,744,000 | 715,000 | 0 | 84,840,000 | 22,744,000 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||
Assets, Fair Value Disclosure | 1,235,507,000 | 1,235,507,000 | 1,200,672,000 | 1,091,176,000 | 1,135,211,000 | 95,792,000 | 26,400,000 | 48,539,000 | 39,061,000 | ||||||||||||||||||||||||||||||||||||||
Listed equity securities, sold not yet purchased, at fair value | 873,594,000 | 873,594,000 | 679,897,000 | 873,594,000 | 679,897,000 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||
Debt instruments, sold not yet purchased, at fair value | 191,478,000 | 191,478,000 | 228,471,000 | 0 | 0 | 191,478,000 | 228,471,000 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||
Financial contracts payable, at fair value | 17,962,000 | 17,962,000 | 19,637,000 | 0 | 0 | 17,962,000 | 19,637,000 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||
Liabilities, Fair Value Disclosure | 1,083,034,000 | 1,083,034,000 | 928,005,000 | 873,594,000 | 679,897,000 | 209,440,000 | 248,108,000 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||
Fair Value Measurements using Significant Unobservable Inputs Level 3 Reconciliation, transfers out of Level 3 | -4,945,000 | -24,581,000 | -3,828,000 | -4,976,000 | -4,945,000 | -3,828,000 | -24,581,000 | -4,976,000 | -19,600,000 | 4,900,000 | 4,900,000 | ||||||||||||||||||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Realized Gain (Loss) Included in Investment Income | 300,000 | 100,000 | 600,000 | 400,000 | |||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) Included in Investment Income | 1,200,000 | 800,000 | -1,500,000 | 2,600,000 | |||||||||||||||||||||||||||||||||||||||||||
Debt instruments, trading, within one year, cost | 8,202,000 | 8,202,000 | 0 | ||||||||||||||||||||||||||||||||||||||||||||
Debt instruments, trading, within one year, fair value | 8,202,000 | 8,202,000 | 0 | ||||||||||||||||||||||||||||||||||||||||||||
Debt instruments, trading, from one to five years, cost | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||
Debt instruments, trading, from one to five years, fair value | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||
Debt instruments, trading, from five to ten years, cost | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||
Debt instruments, trading, from five to ten years, fair value | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||
Debt instruments, trading, more than ten years, cost | 5,877,000 | 5,877,000 | 3,496,000 | ||||||||||||||||||||||||||||||||||||||||||||
Debt instruments, trading, more than ten years, fair value | 4,297,000 | 4,297,000 | 1,763,000 | ||||||||||||||||||||||||||||||||||||||||||||
Trading Securities, Debt, Equities and Other, Cost | 10,318,000 | 2,317,000 | 3,761,000 | 1,179,000 | 14,079,000 | 3,496,000 | 54,633,000 | 59,929,000 | 39,421,000 | 36,672,000 | 94,054,000 | 96,601,000 | 752,732,000 | 875,322,000 | 50,253,000 | 38,819,000 | 802,985,000 | 914,141,000 | |||||||||||||||||||||||||||||
Other investments, Fair value | 67,149,000 | 94,648,000 | 40,097,000 | 38,802,000 | 107,246,000 | 133,450,000 | |||||||||||||||||||||||||||||||||||||||||
Equity securities, trading, at fair value | 1,030,207,000 | 1,030,207,000 | 1,042,715,000 | 999,919,000 | 1,004,566,000 | 30,288,000 | 38,149,000 | 1,030,207,000 | 1,042,715,000 | ||||||||||||||||||||||||||||||||||||||
Investments Sold, Not Yet Purchased, Sale Proceeds | -996,049,000 | -911,753,000 | -811,901,000 | -697,278,000 | -6,318,000 | -7,454,000 | -7,353,000 | -170,376,000 | -207,122,000 | ||||||||||||||||||||||||||||||||||||||
Trading securities, Gross Unrealized Gains | 0 | 205,000 | 306,000 | 0 | 306,000 | 205,000 | 12,516,000 | 34,719,000 | 8,425,000 | 4,914,000 | 20,941,000 | 39,633,000 | 71,164,000 | 76,198,000 | 71,159,000 | 76,172,000 | 0 | 5,000 | 26,000 | 0 | 0 | 271,262,000 | 199,519,000 | 0 | 0 | 271,262,000 | 199,519,000 | ||||||||||||||||||||
Trading securities, Gross Unrealized Loss | -1,876,000 | -1,856,000 | -10,000 | -82,000 | -1,886,000 | -1,938,000 | 0 | 0 | -7,749,000 | -2,784,000 | -7,749,000 | -2,784,000 | -140,187,000 | -72,813,000 | -125,362,000 | -58,791,000 | -1,172,000 | -239,000 | -381,000 | -13,414,000 | -13,641,000 | -24,075,000 | -70,275,000 | -19,965,000 | -670,000 | -44,040,000 | -70,945,000 | ||||||||||||||||||||
Securities sold, not yet purchased, at fair value | ($1,065,072,000) | ($1,065,072,000) | ($908,368,000) | ($1,065,072,000) | ($908,368,000) | ($866,104,000) | ($679,897,000) | ($7,490,000) | ($7,688,000) | ($7,708,000) | ($183,790,000) | ($220,763,000) |
FINANCIAL_INSTRUMENTS_Level_3_
FINANCIAL INSTRUMENTS Level 3 reconciliation (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Fair Value Measurements using Significant Unobservable Inputs Level 3 Reconciliation, balance | $39,162,000 | $39,061,000 | $31,907,000 | $48,095,000 | |
Fair Value Measurements using Significant Unobservable Inputs Level 3 Reconciliation, purchases | 4,020,000 | 365,000 | 39,986,000 | 7,277,000 | |
Fair Value Measurements using Significant Unobservable Inputs Level 3 Reconciliation, sales | -829,000 | -300,000 | -6,962,000 | -793,000 | |
Fair Value Measurements using Significant Unobservable Inputs Level 3 Reconciliation, issuances | 0 | 0 | 0 | 0 | |
Fair Value Measurements using Significant Unobservable Inputs Level 3 Reconciliation, settlements | 0 | 0 | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | -2,198,000 | -927,000 | -1,035,000 | -2,911,000 | |
Fair Value Measurements using Significant Unobservable Inputs Level 3 Reconciliation, transfers into Level 3 | 0 | 0 | 0 | 0 | |
Fair Value Measurements using Significant Unobservable Inputs Level 3 Reconciliation, transfers out of Level 3 | 4,945,000 | 24,581,000 | |||
Fair Value Measurements using Significant Unobservable Inputs Level 3 Reconciliation, balance | 48,539,000 | 36,326,000 | 48,539,000 | 36,326,000 | 48,095,000 |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Redemption Restriction, Percentage | 100.00% | 100.00% | |||
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) Included in Investment Income | 1,200,000 | 800,000 | -1,500,000 | 2,600,000 | |
Debt Instruments [Member] | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Fair Value Measurements using Significant Unobservable Inputs Level 3 Reconciliation, balance | 343,000 | 260,000 | 465,000 | 4,838,000 | |
Fair Value Measurements using Significant Unobservable Inputs Level 3 Reconciliation, purchases | 3,604,000 | 0 | 8,230,000 | 0 | |
Fair Value Measurements using Significant Unobservable Inputs Level 3 Reconciliation, sales | 0 | 0 | -28,000 | -1,000 | |
Fair Value Measurements using Significant Unobservable Inputs Level 3 Reconciliation, issuances | 0 | 0 | 0 | 0 | |
Fair Value Measurements using Significant Unobservable Inputs Level 3 Reconciliation, settlements | 0 | 0 | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 0 | 4,000 | -20,000 | 125,000 | |
Fair Value Measurements using Significant Unobservable Inputs Level 3 Reconciliation, transfers into Level 3 | 0 | 0 | 0 | 0 | |
Fair Value Measurements using Significant Unobservable Inputs Level 3 Reconciliation, transfers out of Level 3 | 0 | 0 | 0 | 0 | |
Fair Value Measurements using Significant Unobservable Inputs Level 3 Reconciliation, balance | 8,442,000 | 339,000 | 8,442,000 | 339,000 | 4,838,000 |
Private and unlisted equity securities [Member] | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Fair Value Measurements using Significant Unobservable Inputs Level 3 Reconciliation, balance | 38,805,000 | 38,801,000 | 31,179,000 | 43,257,000 | |
Fair Value Measurements using Significant Unobservable Inputs Level 3 Reconciliation, purchases | 416,000 | 365,000 | 31,756,000 | 7,277,000 | |
Fair Value Measurements using Significant Unobservable Inputs Level 3 Reconciliation, sales | -829,000 | -300,000 | -6,934,000 | -792,000 | |
Fair Value Measurements using Significant Unobservable Inputs Level 3 Reconciliation, issuances | 0 | 0 | 0 | 0 | |
Fair Value Measurements using Significant Unobservable Inputs Level 3 Reconciliation, settlements | 0 | 0 | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | -2,198,000 | -945,000 | -1,055,000 | -3,299,000 | |
Fair Value Measurements using Significant Unobservable Inputs Level 3 Reconciliation, transfers into Level 3 | 0 | 0 | 0 | 0 | |
Fair Value Measurements using Significant Unobservable Inputs Level 3 Reconciliation, transfers out of Level 3 | 4,945,000 | 3,828,000 | 24,581,000 | 4,976,000 | |
Fair Value Measurements using Significant Unobservable Inputs Level 3 Reconciliation, balance | 40,097,000 | 35,987,000 | 40,097,000 | 35,987,000 | 43,257,000 |
Derivative [Member] | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Fair Value Measurements using Significant Unobservable Inputs Level 3 Reconciliation, balance | 14,000 | 263,000 | |||
Fair Value Measurements using Significant Unobservable Inputs Level 3 Reconciliation, purchases | 0 | 0 | |||
Fair Value Measurements using Significant Unobservable Inputs Level 3 Reconciliation, sales | 0 | 0 | |||
Fair Value Measurements using Significant Unobservable Inputs Level 3 Reconciliation, issuances | 0 | 0 | |||
Fair Value Measurements using Significant Unobservable Inputs Level 3 Reconciliation, settlements | 0 | 0 | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 14,000 | 263,000 | |||
Fair Value Measurements using Significant Unobservable Inputs Level 3 Reconciliation, transfers into Level 3 | 0 | 0 | |||
Fair Value Measurements using Significant Unobservable Inputs Level 3 Reconciliation, transfers out of Level 3 | 0 | 0 | |||
Fair Value Measurements using Significant Unobservable Inputs Level 3 Reconciliation, balance | 0 | 0 | |||
Quarter to date [Member] | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | 0 | 1,000,000 | 0 | 1,000,000 | |
Year to date [Member] | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | 2,400,000 | 30,400,000 | 2,400,000 | 30,400,000 | |
Quoted prices in active markets, Level 1 [Member] | Private and unlisted equity securities [Member] | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Fair Value Measurements using Significant Unobservable Inputs Level 3 Reconciliation, transfers out of Level 3 | 19,600,000 | ||||
Significant other observable inputs, Level 2 [Member] | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Fair Value Measurements using Significant Unobservable Inputs Level 3 Reconciliation, transfers out of Level 3 | 3,828,000 | 4,976,000 | |||
Significant other observable inputs, Level 2 [Member] | Private and unlisted equity securities [Member] | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Fair Value Measurements using Significant Unobservable Inputs Level 3 Reconciliation, transfers out of Level 3 | ($4,900,000) | ($4,900,000) |
FINANCIAL_INSTRUMENTS_NAV_Inst
FINANCIAL INSTRUMENTS NAV Instruments (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Redemption Restriction, Percentage | 100.00% | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Unfunded Commitments | $9.90 | $12.60 |
Significant unobservable inputs, Level 3 [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Private Equity Funds, Fair Value Disclosure | $30.70 | $24.30 |
FINANCIAL_INSTRUMENTS_Derivati1
FINANCIAL INSTRUMENTS Derivatives (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Derivative [Line Items] | |||||
Financial contracts receivable, at fair value | $85,555 | $85,555 | $22,744 | ||
Securities sold, not yet purchased, at fair value | -1,065,072 | -1,065,072 | -908,368 | ||
Cash Collateral for Borrowed Securities | 1,065,072 | 1,065,072 | 908,368 | ||
Financial contracts receivable, Fair Value, Amount Offset Against Collateral | 0 | 0 | 0 | ||
Financial contracts receivable, at fair value,net | 85,555 | 85,555 | 22,744 | ||
Financial contracts receivable, Collateral, Obligation to Return Cash | -30,251 | -30,251 | -947 | ||
Financial contracts payable, Fair Value, Gross Liability | -17,962 | -17,962 | -19,637 | ||
Financial contracts payable, Fair Value, Amount Offset Against Collateral | 0 | 0 | 0 | ||
Financial contracts payable, Fair Value, Net | -17,962 | -17,962 | -19,637 | ||
Financial contracts payable, Collateral, Right to Reclaim Cash | 34,606 | 34,606 | 39,268 | ||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 27,518 | -13,209 | 86,779 | -43,612 | |
Derivative contracts entered | 279,953 | 367,576 | 1,589,644 | 1,578,856 | |
Derivative contracts exited | 387,902 | 446,179 | 1,541,954 | 1,344,958 | |
Call Option [Member] | Derivative Financial Instruments, Assets [Member] | |||||
Derivative [Line Items] | |||||
Derivative, Notional Amount of underlying instruments | 46,190 | 46,190 | 90,374 | ||
Financial contracts receivable, at fair value | 1,372 | 1,372 | 4,498 | ||
Forward Contracts [Member] | |||||
Derivative [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | -1,282 | 0 | 5,780 | 0 | |
Derivative contracts entered | 30,817 | 417,754 | |||
Derivative contracts exited | 0 | 115,884 | |||
Forward Contracts [Member] | Derivative Financial Instruments, Assets [Member] | |||||
Derivative [Line Items] | |||||
Derivative, Notional Amount of underlying instruments | 107,884 | 107,884 | |||
Financial contracts receivable, at fair value | 172 | 172 | |||
Future [Member] | |||||
Derivative [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 3,628 | -4,542 | 4,677 | -12,501 | |
Derivative contracts entered | 0 | 259,225 | 218,519 | 1,023,492 | |
Derivative contracts exited | 12,778 | 393,683 | 180,027 | 1,023,239 | |
Future [Member] | Derivative Financial Instruments, Assets [Member] | |||||
Derivative [Line Items] | |||||
Derivative, Notional Amount of underlying instruments | 41,450 | 41,450 | |||
Financial contracts receivable, at fair value | 715 | 715 | |||
Future [Member] | Derivative Financial Instruments, Liabilities [Member] | |||||
Derivative [Line Items] | |||||
Derivative, Notional Amount of underlying instruments | 25,858 | 25,858 | |||
Financial contracts payable, Fair Value, Gross Liability | -584 | -584 | |||
Interest Rate Options [Member] | |||||
Derivative [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | -97 | -379 | -62 | -1,982 | |
Derivative contracts entered | 0 | 0 | |||
Derivative contracts exited | 95,400 | 376,385 | |||
Interest Rate Options [Member] | Derivative Financial Instruments, Assets [Member] | |||||
Derivative [Line Items] | |||||
Derivative, Notional Amount of underlying instruments | 1,878,031 | 1,878,031 | 2,299,933 | ||
Financial contracts receivable, at fair value | 45 | 45 | 109 | ||
Credit Default Swap, Buying Protection [Member] | |||||
Derivative [Line Items] | |||||
Derivative contracts entered | 0 | 0 | |||
Derivative contracts exited | 0 | 45,966 | |||
Put Option [Member] | Derivative Financial Instruments, Assets [Member] | |||||
Derivative [Line Items] | |||||
Derivative, Notional Amount of underlying instruments | 222,058 | 222,058 | 314,695 | ||
Financial contracts receivable, at fair value | 13,528 | 13,528 | 17,709 | ||
Put Option [Member] | Derivative Financial Instruments, Liabilities [Member] | |||||
Derivative [Line Items] | |||||
Derivative, Notional Amount of underlying instruments | 16,071 | ||||
Financial contracts payable, Fair Value, Gross Liability | -1,636 | ||||
Options Held [Member] | |||||
Derivative [Line Items] | |||||
Derivative contracts entered | 232,530 | 91,011 | 765,509 | 535,218 | |
Derivative contracts exited | 272,988 | 36,851 | 814,812 | 239,554 | |
Options, Warrants and Rights [Member] | |||||
Derivative [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | -12,025 | -3,406 | 20,681 | -13,572 | |
Total Return Swap [Member] | |||||
Derivative [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 38,825 | -1,571 | 59,507 | -4,053 | |
Derivative contracts entered | 16,606 | 17,340 | 187,862 | 20,146 | |
Derivative contracts exited | 6,736 | 10,645 | 54,846 | 31,199 | |
Total Return Swap [Member] | Derivative Financial Instruments, Assets [Member] | |||||
Derivative [Line Items] | |||||
Derivative, Notional Amount of underlying instruments | 204,649 | 204,649 | 3,664 | ||
Financial contracts receivable, at fair value | 68,093 | 68,093 | 163 | ||
Total Return Swap [Member] | Derivative Financial Instruments, Liabilities [Member] | |||||
Derivative [Line Items] | |||||
Derivative, Notional Amount of underlying instruments | 31,169 | 31,169 | 76,697 | ||
Financial contracts payable, Fair Value, Gross Liability | -9,202 | -9,202 | -9,193 | ||
Warrant [Member] | Derivative Financial Instruments, Assets [Member] | |||||
Derivative [Line Items] | |||||
Derivative, Notional Amount of underlying instruments | 1,630 | 1,630 | |||
Financial contracts receivable, at fair value | 1,630 | 1,630 | |||
Weather derivative swap [Member] | |||||
Derivative [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 0 | -14 | 0 | -263 | |
Derivative contracts entered | 0 | 0 | |||
Derivative contracts exited | 5,000 | 5,000 | |||
Corporate debt - U.S. [Member] | Credit Default Swap, Buying Protection [Member] | |||||
Derivative [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | -589 | -2,448 | -2,847 | -6,448 | |
Corporate debt - U.S. [Member] | Credit Default Swap, Buying Protection [Member] | Derivative Financial Instruments, Assets [Member] | |||||
Derivative [Line Items] | |||||
Derivative, Notional Amount of underlying instruments | 39,665 | ||||
Financial contracts receivable, at fair value | 265 | ||||
Corporate debt - U.S. [Member] | Credit Default Swap, Buying Protection [Member] | Derivative Financial Instruments, Liabilities [Member] | |||||
Derivative [Line Items] | |||||
Derivative, Notional Amount of underlying instruments | 273,877 | 273,877 | 234,212 | ||
Financial contracts payable, Fair Value, Gross Liability | -3,682 | -3,682 | -3,365 | ||
Sovereign debt - Non U.S. [Member] | Credit Default Swap, Buying Protection [Member] | |||||
Derivative [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | -942 | -849 | -957 | -4,793 | |
Sovereign debt - Non U.S. [Member] | Credit Default Swap, Buying Protection [Member] | Derivative Financial Instruments, Liabilities [Member] | |||||
Derivative [Line Items] | |||||
Derivative, Notional Amount of underlying instruments | 251,467 | 251,467 | 251,467 | ||
Financial contracts payable, Fair Value, Gross Liability | -4,494 | -4,494 | -5,443 | ||
Securities Sold, Not Yet Purchased [Member] | |||||
Derivative [Line Items] | |||||
Securities sold, not yet purchased, at fair value | -1,065,072 | -1,065,072 | -908,368 | ||
Derivative Financial Instruments, Assets [Member] | |||||
Derivative [Line Items] | |||||
Derivative, Fair Value, Net | 55,304 | 55,304 | 21,797 | ||
Derivative Financial Instruments, Liabilities [Member] | |||||
Derivative [Line Items] | |||||
Derivative, Fair Value, Net | 16,644 | 16,644 | 19,631 | ||
Securities Sold, Not Yet Purchased [Member] | |||||
Derivative [Line Items] | |||||
Derivative, Fair Value, Net | 0 | 0 | 0 | ||
Financial contracts payable, Fair Value, Amount Offset Against Collateral | $0 | $0 | $0 |
DUE_TO_PRIME_BROKERS_Details
DUE TO PRIME BROKERS (Details) (USD $) | 0 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Jul. 24, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
Other Payables to Broker-Dealers and Clearing Organizations | $239,074 | $326,488 | |
Maximum temporary leverage | 30.00% | 20.00% | |
Maximum long-term leverage | 15.00% | 5.00% | |
Collateral for LOCs issued [Member] | |||
Other Payables to Broker-Dealers and Clearing Organizations | 235,200 | 252,700 | |
Bank Overdrafts [Member] | |||
Other Payables to Broker-Dealers and Clearing Organizations | $3,800 | $73,700 |
RETROCESSION_Details
RETROCESSION (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Retrocession disclosure [Line Items] | |||||
Incurred Claims, Property, Casualty and Liability | $94,366,000 | $126,624,000 | $238,989,000 | $277,268,000 | |
Reinsurance Costs and Recoveries, Net | -300,000 | 5,100,000 | 10,500,000 | -10,900,000 | |
Reinsurance Recoverables | 17,996,000 | 17,996,000 | 34,451,000 | ||
Funds Held under Reinsurance Agreements, Liability | 9,469,000 | 9,469,000 | 17,415,000 | ||
Allowance for Doubtful Accounts Receivable | 0 | 0 | 0 | ||
Unrated [Member] | |||||
Retrocession disclosure [Line Items] | |||||
Reinsurance Recoverables | 18,000,000 | 18,000,000 | 34,300,000 | ||
Ceded Credit Risk, Secured [Member] | |||||
Retrocession disclosure [Line Items] | |||||
Funds Held under Reinsurance Agreements, Liability | 4,500,000 | 4,500,000 | 11,400,000 | ||
Non-collateral [Member] | |||||
Retrocession disclosure [Line Items] | |||||
Funds Held under Reinsurance Agreements, Liability | 4,900,000 | 4,900,000 | 6,000,000 | ||
AM Best, A+ Rating [Member] | |||||
Retrocession disclosure [Line Items] | |||||
Reinsurance Recoverables | $7,500 | $7,500 | $100,000 |
SHAREBASED_COMPENSATION_Detail
SHARE-BASED COMPENSATION (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||||
Aug. 31, 2002 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2013 | Sep. 21, 2004 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Share-based Goods and Nonemployee Services Transaction, Supplier [Domain] | Share-based Goods and Nonemployee Services Transaction, Supplier [Domain] | Share-based Goods and Nonemployee Services Transaction, Supplier [Domain] | Share-based Goods and Nonemployee Services Transaction, Supplier [Domain] | Stock Compensation Plan [Member] | Stock Compensation Plan [Member] | Employee [Member] | Employee [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Director [Member] | Director [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||
Allocated Share-based Compensation Expense | $1,100,000 | $1,000,000 | $2,700,000 | $2,800,000 | ||||||||||||||
Share-based Compensation | 2,646,000 | 2,798,000 | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | 0.25 | |||||||||||||||||
Common Stock, Capital Shares Reserved for Future Issuance | 300,000 | 300,000 | 3,500,000 | 3,500,000 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 250,000 | 250,000 | 962,181 | 1,136,504 | ||||||||||||||
Professional and Contract Services Expense | 75,000 | |||||||||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 111,231 | 110,701 | 36,374 | 35,994 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | 1 year | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 328,991 | 308,406 | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 147,605 | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 110,194 | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 16,826 | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $24.74 | $24.93 | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $24.59 | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $25.08 | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $24.55 | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 10 years | 10 years | 10 years | 10 years | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 38,197 | 45,290 | 400,000 | |||||||||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $26.44 | $10 | ||||||||||||||||
Share Based Compensation Arrangement - Options Repurchased | 100,000 | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 44,500 | 0 | 50,000 | |||||||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 25,843 | |||||||||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Forfeited | 16,826 | 6,191 | ||||||||||||||||
Stock Issued During Period, Value, Restricted Stock Award, Forfeitures | $200,000 | $100,000 |
SHAREBASED_COMPENSATION_ShareB
SHARE-BASED COMPENSATION ShareBasedCompensation Options Rollfoward (Details) (USD $) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 1,414,987 | 1,421,290 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 38,197 | 45,290 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 44,500 | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $15.78 | $15.36 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $26.44 | |||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $11.54 | |||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | $0 | |||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price | $0 | |||
Share-based compensation arrangement by share-based payment award, Options, Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Share-based compensation arrangement by share-based payment award, options, outstanding, weighted average grant date fair value | $7.07 | $6.87 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $13.09 | $11.04 | ||
Share-based compensation arrangement by share-based payment award, Options, Exercised in period, weighted average grant date fair value | $5.73 | |||
Share-based compensation arrangement by share-based payment award, Options, Forfeited in period, weighted average grant date fair value | $0 | |||
Share-based compensation arrangement by share-based payment award, Options, Expired in period, weighted average grant date fair value | $0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | $600,000 | $0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | 0.25 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 10 years | 10 years | 10 years |
SHAREBASED_COMPENSATION_Black_
SHARE-BASED COMPENSATION Black Scholes option pricing model assumptions (Details) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.85% | 1.50% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 35.00% | 35.00% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 10 years | 10 years | 10 years |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | 0.00% | |
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Forfeiture Rate | 0.00% | 0.00% |
SHAREBASED_COMPENSATION_Restri
SHARE-BASED COMPENSATION Restricted Stock Units (Details) (Restricted Stock Units (RSUs) [Member], USD $) | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Restricted Stock Units (RSUs) [Member] | |||
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 | 5,347 | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $24.41 | $0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 5,347 | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $24.41 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $0 |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Related Party Transaction [Line Items] | ||||
Performance compensation full rate | 20.00% | |||
Performance compensastion reduced rate | 10.00% | |||
Loss carry forward recoupment required | 150.00% | |||
Performance compensation expense | $11,900,000 | $23,800,000 | $33,800,000 | $31,600,000 |
Investment management fee rate - monthly | 0.13% | |||
Investment management fee rate - annual | 1.50% | |||
Investment management fee expense | 4,600,000 | 4,200,000 | 13,400,000 | 12,500,000 |
Investor relations fee monthly | $5,000 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Letters of Credit Facilities [Line Items] | ||
Letters of Credit Issued and Outstanding, Amount | $377,300,000 | $416,500,000 |
Pledged Financial Instruments, Not Separately Reported, Securities for Letter of Credit Facilities | 418,700,000 | 441,700,000 |
Letters of Credit Facilities [Member] | ||
Letters of Credit Facilities [Line Items] | ||
Letters of Credit Facilities, Maximum Borrowing Capacity | 760,000,000 | |
Letters of Credit Facilities [Member] | Bank of America, N.A. [Member] | ||
Letters of Credit Facilities [Line Items] | ||
Letters of Credit Facilities, Maximum Borrowing Capacity | 200,000,000 | |
Notice period required for termination | 90 days prior to termination date | |
Letters of Credit Facilities [Member] | Butterfield Bank (Cayman) Limited [Member] | ||
Letters of Credit Facilities [Line Items] | ||
Letters of Credit Facilities, Maximum Borrowing Capacity | 60,000,000 | |
Notice period required for termination | 90 days prior to termination date | |
Letters of Credit Facilities [Member] | Citibank Europe plc [Member] | ||
Letters of Credit Facilities [Line Items] | ||
Letters of Credit Facilities, Maximum Borrowing Capacity | 400,000,000 | |
Notice period required for termination | 120 days prior to termination date | |
Letters of Credit Facilities [Member] | JP Morgan Chase Bank N.A. [Member] | ||
Letters of Credit Facilities [Line Items] | ||
Letters of Credit Facilities, Maximum Borrowing Capacity | $100,000,000 | |
Notice period required for termination | 120 days prior to termination date |
COMMITMENTS_AND_CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES Lease (Details) | 3 Months Ended | 9 Months Ended | |||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
USD ($) | USD ($) | USD ($) | USD ($) | GLRE [Member] | GLRE [Member] | GLRE [Member] | GRIL [Member] | Specialist service agreement [Member] | Private and unlisted equity securities [Member] | Private and unlisted equity securities [Member] | |
Minimum [Member] | Maximum [Member] | EUR (€) | USD ($) | USD ($) | USD ($) | ||||||
USD ($) | USD ($) | ||||||||||
Operating Leased Assets [Line Items] | |||||||||||
Operating Leases, Rent Expense, Minimum Rentals | $300,000 | $500,000 | € 70,000 | ||||||||
Operating lease renewal option | 5 years | ||||||||||
Operating Leases, Rent Expense | 100,000 | 100,000 | 300,000 | 300,000 | |||||||
Operating Leases, Future Minimum Payments, Remainder of Fiscal Year | 139,000 | 139,000 | |||||||||
Operating Leases, Future Minimum Payments, Due in Two Years | 556,000 | 556,000 | |||||||||
Operating Leases, Future Minimum Payments, Due in Three Years | 556,000 | 556,000 | |||||||||
Operating Leases, Future Minimum Payments, Due in Four Years | 499,000 | 499,000 | |||||||||
Operating Leases, Future Minimum Payments, Due in Five Years | 466,000 | 466,000 | |||||||||
Operating Leases, Future Minimum Payments, Due Thereafter | 232,000 | 232,000 | |||||||||
Operating Leases, Future Minimum Payments Due | 2,448,000 | 2,448,000 | |||||||||
Specialist service agreement, Due in Remainder of Fiscal Year | 225,000 | 9,890,000 | 20,800,000 | ||||||||
Specialist service agreement, Due within Two Years | 700,000 | 0 | |||||||||
Specialist service agreement, Due within Three Years | 400,000 | 0 | |||||||||
Specialist service agreement, Due within Four Years | 150,000 | 0 | |||||||||
Specialist service agreement, Due within Five Years | 0 | 0 | |||||||||
Specialist service agreement, Due after Five Years | 0 | 0 | |||||||||
Specialist service agreement, future payments due | 1,475,000 | 9,890,000 | |||||||||
Contractual Obligation, Due in Next Twelve Months | 10,254,000 | 10,254,000 | |||||||||
Contractual Obligation, Due in Second Year | 1,256,000 | 1,256,000 | |||||||||
Contractual Obligation, Due in Third Year | 956,000 | 956,000 | |||||||||
Contractual Obligation, Due in Fourth Year | 649,000 | 649,000 | |||||||||
Contractual Obligation, Due in Fifth Year | 466,000 | 466,000 | |||||||||
Contractual Obligation, Due thereafter | 232,000 | 232,000 | |||||||||
Contractual Obligation, Total | $13,813,000 | $13,813,000 |
SEGMENT_REPORTING_Details
SEGMENT REPORTING (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |||
Segment Reporting Information [Line Items] | |||||||
Number of Operating Segments | 1 | ||||||
Assumed Premiums Written | $148,765 | $67,644 | $410,927 | $303,850 | |||
Gross premiums by line of business as a percentage of total gross premiums | 100.00% | 100.00% | 100.00% | 100.00% | |||
Aviation [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Assumed Premiums Written | 0 | 0 | 96 | 0 | |||
Gross premiums by line of business as a percentage of total gross premiums | 0.00% | 0.00% | 0.00% | 0.00% | |||
Commercial Lines [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Assumed Premiums Written | 789 | 0 | 10,523 | 11,646 | |||
Gross premiums by line of business as a percentage of total gross premiums | 0.50% | 0.00% | 2.60% | 3.80% | |||
Energy [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Assumed Premiums Written | 0 | 0 | 1,553 | 0 | |||
Gross premiums by line of business as a percentage of total gross premiums | 0.00% | 0.00% | 0.40% | 0.00% | |||
Motor physical damage [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Assumed Premiums Written | 21,557 | 12,895 | 48,895 | 48,738 | |||
Gross premiums by line of business as a percentage of total gross premiums | 14.50% | 19.00% | 11.90% | 16.10% | |||
Personal Lines [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Assumed Premiums Written | 34,521 | -1,453 | [1] | 108,181 | 51,105 | ||
Gross premiums by line of business as a percentage of total gross premiums | 23.20% | -2.10% | [1] | 26.30% | 16.80% | ||
Total property [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Assumed Premiums Written | 56,867 | 11,442 | 169,248 | 111,489 | |||
Gross premiums by line of business as a percentage of total gross premiums | 38.20% | 16.90% | 41.20% | 36.70% | |||
General Liability [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Assumed Premiums Written | 1,668 | 5,469 | -544 | [1] | 20,393 | ||
Gross premiums by line of business as a percentage of total gross premiums | 1.10% | 8.10% | -0.10% | [1] | 6.70% | ||
Marine liability [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Assumed Premiums Written | 0 | 0 | 603 | 2,240 | |||
Gross premiums by line of business as a percentage of total gross premiums | 0.00% | 0.00% | 0.10% | 0.70% | |||
Motor liability [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Assumed Premiums Written | 81,474 | 43,216 | 212,174 | 132,693 | |||
Gross premiums by line of business as a percentage of total gross premiums | 54.80% | 63.90% | 51.60% | 43.70% | |||
Professional Liability [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Assumed Premiums Written | 459 | 0 | 1,583 | -666 | [1] | ||
Gross premiums by line of business as a percentage of total gross premiums | 0.30% | 0.00% | 0.40% | -0.20% | [1] | ||
Total Casualty [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Assumed Premiums Written | 83,601 | 48,685 | 213,816 | 154,660 | |||
Gross premiums by line of business as a percentage of total gross premiums | 56.20% | 72.00% | 52.00% | 50.90% | |||
Specialty Financial [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Assumed Premiums Written | 806 | -3,813 | [1] | 2,103 | -508 | [1] | |
Gross premiums by line of business as a percentage of total gross premiums | 0.60% | -5.60% | [1] | 0.50% | -0.20% | [1] | |
Specialty Health [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Assumed Premiums Written | 7,491 | 9,502 | 29,975 | 28,888 | |||
Gross premiums by line of business as a percentage of total gross premiums | 5.00% | 14.00% | 7.30% | 9.50% | |||
Workers' compensation [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Assumed Premiums Written | 0 | 1,828 | -4,215 | [1] | 9,321 | ||
Gross premiums by line of business as a percentage of total gross premiums | 0.00% | 2.70% | -1.00% | [1] | 3.10% | ||
Total Specialty [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Assumed Premiums Written | $8,297 | $7,517 | $27,863 | $37,701 | |||
Gross premiums by line of business as a percentage of total gross premiums | 5.60% | 11.10% | 6.80% | 12.40% | |||
[1] | The negative balance represents reversal of premiums due to premium adjustments, termination of contracts or premiums returned upon novation or commutation of contracts. |
SEGMENT_REPORTING_Geographic_i
SEGMENT REPORTING Geographic information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Revenue from External Customer [Line Items] | ||||||||
Assumed Premiums Written | $148,765 | $67,644 | $410,927 | $303,850 | ||||
Gross premiums by geographical area as a percentage of total gross premiums | 100.00% | 100.00% | 100.00% | 100.00% | ||||
UNITED STATES | ||||||||
Revenue from External Customer [Line Items] | ||||||||
Assumed Premiums Written | 148,249 | 71,709 | 400,594 | 293,075 | ||||
Gross premiums by geographical area as a percentage of total gross premiums | 99.70% | 106.00% | 97.50% | 96.50% | ||||
Worldwide [Member] | ||||||||
Revenue from External Customer [Line Items] | ||||||||
Assumed Premiums Written | 379 | [1] | -4,065 | [1],[2] | 9,814 | [1] | 11,113 | [1] |
Gross premiums by geographical area as a percentage of total gross premiums | 0.20% | [1] | -6.00% | [1],[2] | 2.40% | [1] | 3.60% | [1] |
Caribbean [Member] | ||||||||
Revenue from External Customer [Line Items] | ||||||||
Assumed Premiums Written | 0 | 0 | -95 | [2] | 328 | |||
Gross premiums by geographical area as a percentage of total gross premiums | 0.00% | 0.00% | 0.00% | [2] | 0.10% | |||
Europe [Member] | ||||||||
Revenue from External Customer [Line Items] | ||||||||
Assumed Premiums Written | $137 | $0 | $614 | ($666) | [2] | |||
Gross premiums by geographical area as a percentage of total gross premiums | 0.10% | 0.00% | 0.10% | -0.20% | [2] | |||
[1] | "Worldwide" is comprised of contracts that reinsure risks in more than one geographic area and do not specifically exclude the U.S. | |||||||
[2] | The negative balance represents reversal of premiums due to premium adjustments, termination of contracts or premiums returned upon novation or commutation of contracts. |