Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Jun. 30, 2013 | Feb. 14, 2014 | Feb. 14, 2014 | |
Common Class A | Common Class B | |||
Document and Entity Information [Line Items] | ' | ' | ' | ' |
Entity Registrant Name | 'GREENLIGHT CAPITAL RE, LTD. | ' | ' | ' |
Entity Central Index Key | '0001385613 | ' | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' | ' |
Document Type | '10-K | ' | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' | ' |
Amendment Flag | 'false | ' | ' | ' |
Entity Common Stock, Shares Outstanding | ' | ' | 30,799,607 | 6,254,949 |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' | ' |
Entity Voluntary Filers | 'No | ' | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' | ' |
Entity Public Float | ' | $718,464,935 | ' | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Investments | ' | ' |
Debt instruments, trading, at fair value | $4,312 | $1,763 |
Equity securities, trading, at fair value | 1,282,156 | 1,042,715 |
Other investments, at fair value | 107,211 | 133,450 |
Total investments | 1,393,679 | 1,177,928 |
Cash and cash equivalents | 3,722 | 21,890 |
Restricted cash and cash equivalents | 1,334,074 | 1,206,837 |
Financial contracts receivable, at fair value | 104,048 | 22,744 |
Reinsurance balances receivable | 167,340 | 173,221 |
Loss and loss adjustment expenses recoverable | 16,829 | 34,451 |
Deferred acquisition costs, net | 51,797 | 59,177 |
Unearned premiums ceded | 3,173 | 3,616 |
Notes receivable | 16,049 | 19,330 |
Other assets | 4,565 | 3,559 |
Total assets | 3,095,276 | 2,722,753 |
Liabilities | ' | ' |
Securities sold, not yet purchased, at fair value | 1,111,690 | 908,368 |
Financial contracts payable, at fair value | 18,857 | 19,637 |
Due to prime brokers | 314,702 | 326,488 |
Loss and loss adjustment expense reserves | 329,894 | 356,470 |
Unearned premium reserves | 173,057 | 188,185 |
Reinsurance balances payable | 38,789 | 35,292 |
Funds withheld | 10,126 | 17,415 |
Other liabilities | 11,857 | 10,488 |
Total liabilities | 2,008,972 | 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, 30,791,865 (2012: 30,447,179): Class B: par value $0.10; authorized, 25,000,000; issued and outstanding, 6,254,949 (2012: 6,254,949)) | 3,705 | 3,670 |
Additional paid-in capital | 496,622 | 492,469 |
Retained earnings | 551,268 | 325,569 |
Shareholdersb equity attributable to shareholders | 1,051,595 | 821,708 |
Non-controlling interest in joint venture | 34,709 | 38,702 |
Total equity | 1,086,304 | 860,410 |
Total liabilities and equity | $3,095,276 | $2,722,753 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 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 |
Class A | ' | ' |
Shareholders' equity | ' | ' |
Common Stock, Par or Stated Value Per Share | $0.10 | $0.10 |
Ordinary share capital, authorized (in shares) | 100,000,000 | 100,000,000 |
Ordinary share capital, issued (in shares) | 30,791,865 | 30,447,179 |
Ordinary share capital, outstanding (in shares) | 30,791,865 | 30,447,179 |
Class B | ' | ' |
Shareholders' equity | ' | ' |
Common Stock, Par or Stated Value 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 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross premiums written | $124,775 | $148,765 | $135,198 | $126,964 | $123,994 | $67,644 | $83,986 | $152,220 | $535,702 | $427,844 | $397,659 |
Gross premiums ceded | -1,855 | -2,389 | -2,514 | 3,978 | 30 | 30,637 | 4,602 | -10,994 | -2,780 | 24,275 | -46,920 |
Net premiums written | 122,920 | 146,376 | 132,684 | 130,942 | 124,024 | 98,281 | 88,588 | 141,226 | 532,922 | 452,119 | 350,739 |
Change in net unearned premium reserves | 18,617 | 17,515 | 316 | -21,471 | -5,470 | 18,276 | 41,426 | -39,637 | 14,977 | 14,595 | 29,036 |
Net amount | 141,537 | 163,891 | 133,000 | 109,471 | 118,554 | 116,557 | 130,014 | 101,589 | 547,899 | 466,714 | 379,775 |
Net investment income | 83,306 | 49,448 | 24,247 | 61,139 | -52,219 | 96,450 | -36,896 | 71,606 | 218,140 | 78,941 | 23,118 |
Other income (expense), net | -850 | -1 | -488 | 389 | -2 | 191 | -236 | -212 | -950 | -259 | 253 |
Total revenues | 223,993 | 213,338 | 156,759 | 170,999 | 66,333 | 213,198 | 92,882 | 172,983 | 765,089 | 545,396 | 403,146 |
Expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss and loss adjustment expenses incurred, net | 99,504 | 94,366 | 78,345 | 66,278 | 89,333 | 126,624 | 87,337 | 63,307 | 338,493 | 366,601 | 241,690 |
Acquisition costs, net | 34,119 | 53,521 | 42,936 | 41,296 | 34,971 | 33,820 | 37,905 | 36,025 | 171,872 | 142,721 | 138,751 |
General and administrative expenses | 4,930 | 7,085 | 5,943 | 3,760 | 3,919 | 4,637 | 4,359 | 4,624 | 21,718 | 17,539 | 13,892 |
Total expenses | 138,553 | 154,972 | 127,224 | 111,334 | 128,223 | 165,081 | 129,601 | 103,956 | 532,083 | 526,861 | 394,333 |
Income before income tax expense | 85,440 | 58,366 | 29,535 | 59,665 | -61,890 | 48,117 | -36,719 | 69,027 | 233,006 | 18,535 | 8,813 |
Income tax expense | 2 | -90 | -142 | -308 | 620 | -645 | 201 | -262 | -538 | -86 | -247 |
Net income including non-controlling interest | 85,442 | 58,276 | 29,393 | 59,357 | -61,270 | 47,472 | -36,518 | 68,765 | 232,468 | 18,449 | 8,566 |
Income attributable to non-controlling interest in joint venture | 1,512 | 1,740 | 893 | 2,624 | -667 | 1,335 | -449 | 3,632 | 6,769 | 3,851 | 1,797 |
Net income | $83,930 | $56,536 | $28,500 | $56,733 | ($60,603) | $46,137 | ($36,069) | $65,133 | $225,699 | $14,598 | $6,769 |
Earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic | $2.27 | $1.53 | $0.77 | $1.54 | ($1.65) | $1.26 | ($0.98) | $1.78 | $6.13 | $0.40 | $0.19 |
Diluted | $2.22 | $1.50 | $0.76 | $1.52 | ($1.65) | $1.23 | ($0.98) | $1.75 | $6.01 | $0.39 | $0.18 |
Weighted average number of ordinary shares used in the determination of earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic | 36,908,919 | 36,875,716 | 36,830,046 | 36,730,315 | 36,702,128 | 36,678,653 | 36,660,267 | 36,550,953 | 36,838,128 | 36,702,128 | 36,548,466 |
Diluted | 37,746,223 | 37,645,053 | 37,537,500 | 37,424,894 | 36,702,128 | 37,402,725 | 36,660,267 | 37,279,371 | 37,585,167 | 37,361,338 | 37,286,454 |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Total | Ordinary share capital | Additional paid-in capital | Retained earnings | Shareholders' equity attributable to shareholders | Non-controlling interest in joint venture |
In Thousands, unless otherwise specified | ||||||
Balance at Dec. 31, 2010 | $839,161 | $3,646 | $485,555 | $304,202 | $793,403 | $45,758 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Issue of Class A ordinary shares, net of forfeitures | 8 | 8 | 0 | 0 | 8 | 0 |
Share-based compensation expense, net of forfeitures | 2,923 | 0 | 2,923 | 0 | 2,923 | 0 |
Non-controlling interest withdrawal from joint venture, net | -4,960 | 0 | 0 | 0 | 0 | -4,960 |
Income attributable to non-controlling interest in joint venture | 1,797 | 0 | 0 | 0 | 0 | 1,797 |
Net income | 6,769 | 0 | 0 | 6,769 | 6,769 | 0 |
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 | 332 | 16 | 316 | 0 | 332 | 0 |
Share-based compensation expense, net of forfeitures | 3,675 | 0 | 3,675 | 0 | 3,675 | 0 |
Non-controlling interest withdrawal from joint venture, net | -7,744 | 0 | 0 | 0 | 0 | -7,744 |
Income attributable to non-controlling interest in joint venture | 3,851 | 0 | 0 | 0 | 0 | 3,851 |
Net income | 14,598 | 0 | 0 | 14,598 | 14,598 | 0 |
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 | 35 | 492 | 0 | 527 | 0 |
Share-based compensation expense, net of forfeitures | 3,661 | 0 | 3,661 | 0 | 3,661 | 0 |
Non-controlling interest withdrawal from joint venture, net | -10,762 | 0 | 0 | 0 | 0 | -10,762 |
Income attributable to non-controlling interest in joint venture | 6,769 | 0 | 0 | 0 | 0 | 6,769 |
Net income | 225,699 | 0 | 0 | 225,699 | 225,699 | 0 |
Balance at Dec. 31, 2013 | $1,086,304 | $3,705 | $496,622 | $551,268 | $1,051,595 | $34,709 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash provided by (used in) operating activities | ' | ' | ' |
Net income | $225,699 | $14,598 | $6,769 |
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 | -154,792 | -67,307 | 76,170 |
Net realized (gains) losses on investments and financial contracts | -141,976 | -60,762 | -139,760 |
Foreign exchange (gains) losses on restricted cash and cash equivalents, net | -19,305 | -3,682 | 6,953 |
Income attributable to non-controlling interest in joint venture | 6,769 | 3,851 | 1,797 |
Share-based compensation expense, net of forfeitures | 3,675 | 3,689 | 2,931 |
Depreciation expense | 325 | 250 | 232 |
Net change in | ' | ' | ' |
Reinsurance balances receivable | 5,881 | -31,943 | -31,711 |
Loss and loss adjustment expenses recoverable | 17,622 | -4,693 | -17,782 |
Deferred acquisition costs, net | 7,380 | 9,548 | 18,664 |
Unearned premiums ceded | 443 | 23,617 | -19,809 |
Other assets | -291 | 1,683 | -1,378 |
Loss and loss adjustment expense reserves | -26,576 | 115,191 | 54,812 |
Unearned premium reserves | -15,128 | -37,550 | -9,248 |
Reinsurance balances payable | 3,497 | 3,100 | 18,215 |
Funds withheld | -7,289 | -20,616 | 8,957 |
Other liabilities | 1,369 | 434 | -1,732 |
Net cash used in operating activities | -92,697 | -50,592 | -25,920 |
Investing activities | ' | ' | ' |
Purchases of investments, trading | -931,036 | -830,515 | -848,274 |
Sales of investments, trading | 933,356 | 903,344 | 812,235 |
Purchases of financial contracts | -64,153 | -70,658 | -51,277 |
Dispositions of financial contracts | 90,282 | 39,417 | 49,389 |
Securities sold, not yet purchased | 940,486 | 822,718 | 847,821 |
Dispositions of securities sold, not yet purchased | -766,680 | -645,225 | -778,744 |
Change in due to prime brokers | -11,786 | 66,129 | -12,712 |
Change in restricted cash and cash equivalents, net | -107,932 | -245,693 | 12,878 |
Change in notes receivable, net | 3,281 | -1,893 | -3,232 |
Non-controlling interest withdrawal from joint venture | -10,762 | -7,744 | -4,960 |
Fixed assets additions | -1,040 | 0 | -460 |
Net cash provided by investing activities | 74,016 | 29,880 | 22,664 |
Financing activities | ' | ' | ' |
Net proceeds from exercise of stock options | 513 | 318 | 0 |
Net cash provided by financing activities | 513 | 318 | 0 |
Net decrease in cash and cash equivalents | -18,168 | -20,394 | -3,256 |
Cash and cash equivalents at beginning of the period | 21,890 | 42,284 | 45,540 |
Cash and cash equivalents at end of the period | 3,722 | 21,890 | 42,284 |
Supplementary information | ' | ' | ' |
Interest paid in cash | 23,741 | 23,506 | 15,882 |
Interest received in cash | 1,468 | 1,213 | 530 |
Income tax paid in cash | $531 | $216 | $499 |
ORGANIZATION_AND_BASIS_OF_PRES
ORGANIZATION AND BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 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 consolidated subsidiaries. | |
The Class A ordinary shares of GLRE are listed on Nasdaq Global Select Market under the symbol "GLRE". | |
These consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The consolidated financial statements include the accounts of GLRE and the consolidated financial statements of its wholly owned subsidiaries, Greenlight Re, GRIL and Verdant. All significant intercompany transactions and balances have been eliminated on consolidation. | |
Reclassifications | |
Certain prior period balances have been reclassified to conform to the current period presentation. The reclassifications resulted in no changes to net income or retained earnings for any of the periods presented. |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |||||||||||
Dec. 31, 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. | ||||||||||||
Cash and Cash Equivalents | ||||||||||||
Cash and cash equivalents consist of cash and certain short-term, highly liquid investments with original maturity dates of three months or less. | ||||||||||||
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 6). 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. | ||||||||||||
Premium Revenue Recognition | ||||||||||||
The Company accounts for reinsurance contracts in accordance with U.S. GAAP. In the event that a reinsurance contract does not transfer sufficient risk, deposit accounting is used and the contract is reported as a deposit liability. | ||||||||||||
The Company writes excess of loss contracts as well as quota share contracts. The Company estimates the ultimate premiums for the entire contract period. These estimates are based on information received from the ceding companies and estimates from actuarial pricing models used by the Company. For excess of loss contracts, the total ultimate estimated premiums are recorded as premiums written at the inception of the contract. For quota share contracts, the premiums are recorded as written based on cession statements from cedents which typically are received monthly or quarterly depending on terms specified in each contract. For any reporting lag, premiums written are estimated based on the portion of the ultimate estimated premiums relating to the risks underwritten during the lag period. | ||||||||||||
Changes in premium estimates, including premium receivable on both excess of loss and quota share contracts, are expected and may result in significant adjustments in any period. These estimates change over time as additional information regarding the underlying business volume is obtained. Any subsequent adjustments arising on such estimates are recorded in the period in which they are determined. | ||||||||||||
Certain contracts allow for reinstatement premiums in the event of a full limit loss prior to the expiry of a contract. A reinstatement premium is not due until there is a full limit loss event and therefore, in accordance with U.S. GAAP, the Company records a reinstatement premium as written only in the event that a client incurs a full limit loss on the contract and the contract allows for a reinstatement of coverage upon payment of an additional premium. For catastrophe contracts which contractually require the payment of a reinstatement premium equal to or greater than the original premium upon the occurrence of a full limit loss, the reinstatement premiums are earned over the original contract period. Reinstatement premiums that are contractually calculated on a pro-rata basis of the original premiums, are earned over the remaining coverage period. | ||||||||||||
Certain contracts provide for a penalty to be paid if the contract is terminated and cancelled prior to its expiration term. Cancellation penalties are recognized in the period the notice of cancellation is received and are recorded in the consolidated statements of income under other income (expense). | ||||||||||||
Premiums written are generally recognized as earned over the contract period in proportion to the period of risk covered. Unearned premiums consist of the unexpired portion of reinsurance provided. | ||||||||||||
Reinsurance Premiums Ceded | ||||||||||||
The Company reduces the risk of future losses on business assumed by reinsuring certain risks and exposures with other reinsurers (retrocessionaires). The Company remains liable to the extent that any retrocessionaire fails to meet its obligations and to the extent the Company does not hold sufficient security for their unpaid obligations. | ||||||||||||
Ceded premiums are written during the period in which the risks incept and are expensed over the contract period in proportion to the period of protection. Unearned premiums ceded consist of the unexpired portion of reinsurance obtained. | ||||||||||||
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 December 31, 2013 and 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 December 31, 2013, $10.5 million (2012: $9.6 million) of profit commission reserves were included in reinsurance balances payable on the consolidated balance sheets. For the year ended December 31, 2013, $3.7 million (2012: $1.5 million and 2011: $3.9 million) of net profit commission expenses were included in acquisition costs, respectively, on the consolidated statements of income. | ||||||||||||
Funds Withheld | ||||||||||||
Funds withheld include reinsurance balances retained from retrocessionaires as security for a period of time in accordance with the contract terms. Any interest expense that the Company incurs during the period these funds are withheld, are included under net investment income in the 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 year ended December 31, 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 5 years. Interest income earned on notes receivable is included under net investment income in the consolidated statements of income. | ||||||||||||
At December 31, 2013, included in the notes receivable balance was $10.5 million (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 years ended December 31, 2013, 2012 and 2011, no interest was received relating to the note placed on non-accrual status. During the years ended December 31, 2013, 2012 and 2011, the Company recorded an impairment charge of $6.0 million, $0 and $0, respectively, relating to the accrued interest and principal on the note placed on non-accrual status. Impairment charges are included under net investment income in the consolidated statements of income. | ||||||||||||
At December 31, 2013, included in the notes receivable balance was $0.1 million of accrued interest (2012: $2.0 million). Based on management’s assessment, the recorded values of the notes receivable, net of valuation allowance, at December 31, 2013 and 2012, were expected to be fully collectible and therefore no other provision for uncollectible amounts was deemed necessary at December 31, 2013 and 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 consolidated balance sheets. Amortized gains are recorded in the consolidated statements of income as other income. At December 31, 2013, included in the consolidated balance sheets under reinsurance balances receivable and reinsurance balances payable were $1.6 million and $0 of deposit assets and deposit liabilities (2012: $5.1 million and $0.7 million), respectively. For the year ended December 31, 2013, $1.3 million was included in other income (expense), net, relating to losses on deposit accounted contracts (2012: $0.2 million, 2011: $0.9 million). For the years ended December 31, 2013, 2012 and 2011, there was no gain on deposit accounted contracts recorded. | ||||||||||||
Fixed Assets | ||||||||||||
Fixed assets are included in other assets on the consolidated balance sheets and are recorded at cost when acquired. Fixed assets are comprised of computer software, furniture and fixtures and leasehold improvements and are depreciated, using the straight-line method, over their estimated useful lives, which are five years for both computer software, and furniture and fixtures. Leasehold improvements are amortized over the lesser of the estimated useful lives of the assets or remaining lease term. The Company periodically reviews fixed assets that have finite lives, and that are not held for sale, for impairment by comparing the carrying value of the assets to their estimated future undiscounted cash flows. For the years ended December 31, 2013, 2012 and 2011, there were no impairments in fixed assets. | ||||||||||||
At December 31, 2013, the cost, accumulated depreciation and net book values of the fixed assets were as follows: | ||||||||||||
Cost | Accumulated depreciation | |||||||||||
Net book value | ||||||||||||
($ in thousands) | ||||||||||||
Computer software | $ | 556 | $ | (206 | ) | $ | 350 | |||||
Furniture and fixtures | 620 | (340 | ) | 280 | ||||||||
Leasehold improvements | 2,002 | (703 | ) | 1,299 | ||||||||
Total | $ | 3,178 | $ | (1,249 | ) | $ | 1,929 | |||||
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 | |||||
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 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 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 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 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). | ||||||||||||
Share-Based Compensation | ||||||||||||
The Company has established a stock incentive plan for directors, employees and consultants. In addition, the Company granted share purchase options in 2004 to a service provider in exchange for services received (see Note 10). | ||||||||||||
U.S. GAAP requires the Company to recognize share-based compensation transactions using the fair value at the grant date of the award. The Company measures compensation for restricted shares and restricted stock units ("RSUs") based on the price of the Company’s common shares at the grant date and the expense is recognized on a straight line basis over the vesting period. Share purchase options are expensed over the vesting period on a graded vesting basis. | ||||||||||||
Determining the fair value of share purchase options at the grant date requires significant estimation and judgment. The Company uses an option-pricing model (Black-Scholes option pricing model) to assist in the calculation of fair value for share purchase options. The Company's shares have not been publicly traded for a sufficient length of time to solely use the Company's performance to reasonably estimate the expected volatility. Therefore, when estimating the expected volatility, the Company takes into consideration the historical volatility of similar entities. The Company considers factors such as an entity's industry, stage of life cycle, size and financial leverage when selecting similar entities. The Company uses a sample peer group of companies in the reinsurance industry as well as the Company’s own historical volatility in determining the expected volatility. Additionally, the Company uses the full life of the options, ten years, as the estimated term of the options, and has assumed no forfeitures and no dividends paid during the life of the options. | ||||||||||||
Service provider share purchase options are expensed in the consolidated statements of income when services are rendered. For share purchase options issued under the employee stock incentive plan, compensation cost is calculated and expensed over the vesting periods on a graded vesting basis (see Note 10). | ||||||||||||
If actual results differ significantly from these estimates and assumptions, particularly in relation to the Company’s estimation of volatility which requires the most judgment, share-based compensation expense, primarily with respect to future share-based awards, could be materially impacted. | ||||||||||||
Foreign Exchange | ||||||||||||
The reporting and functional currency of the Company and all its subsidiaries is the U.S. dollar. Transactions in foreign currencies are recorded in U.S. dollars at the exchange rates in effect on the transaction date. Monetary assets and liabilities in foreign currencies at the balance sheet date are translated at the exchange rate in effect at the balance sheet date and translation exchange gains and losses, if any, are included in the consolidated statements of income. | ||||||||||||
Other Assets | ||||||||||||
Other assets consist primarily of investment income receivable, prepaid expenses, fixed assets and deferred tax assets. | ||||||||||||
Other Liabilities | ||||||||||||
Other liabilities consist primarily of dividends payable on securities sold, not yet purchased, and employee bonus accruals. At December 31, 2013, other liabilities included accrued bonus of $4.3 million (2012: $2.8 million). Under the Company's bonus program, each employee’s target bonus consists of two components: a discretionary component based on a qualitative assessment of each employee’s performance and a quantitative component based on the return on deployed equity (‘‘RODE”) for each underwriting year relating to reinsurance operations. The qualitative portion of an employee’s annual bonus is accrued at each employee's target amount, which may differ significantly from the actual amount approved and awarded annually by the Compensation Committee. The quantitative portion of each employee’s annual bonus is accrued based on the expected RODE for each underwriting year and adjusted for changes in the expected RODE and actual investment return each quarter until all losses are settled and the underwriting year is declared closed. The quantitative bonus is calculated and paid in annual installments between two to five years from the end of the fiscal year in which the business was underwritten. Any further changes are incorporated into the following open underwriting year. The expected RODE calculation utilizes proprietary models which require significant estimation and judgment. Actual RODE may vary significantly from the expected RODE and any adjustments to the quantitative bonus estimates, which may be material, are recorded in the period in which they are determined. | ||||||||||||
Also included in other liabilities are accruals for income taxes payable, professional fees and other general expenses. | ||||||||||||
Non-controlling Interest | ||||||||||||
Non-controlling interest in joint venture on the consolidated balance sheets represents DME Advisors, LP’s (‘‘DME Advisors”) share of assets in the joint venture whereby DME Advisors manages jointly held assets as disclosed in Note 13. DME Advisors’ share of investment income or loss is included in the consolidated statements of income as income attributable to non-controlling interest in joint venture. | ||||||||||||
Comprehensive Income (Loss) | ||||||||||||
The Company has no other comprehensive income (loss), other than the net income (loss) disclosed in the 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 RSUs 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. | ||||||||||||
Year ended December 31 | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Weighted average shares outstanding - basic | 36,838,128 | 36,702,128 | 36,548,466 | |||||||||
Effect of dilutive service provider share-based awards | 144,726 | 147,036 | 170,056 | |||||||||
Effect of dilutive employee and director share-based awards | 602,313 | 512,174 | 567,932 | |||||||||
Weighted average share outstanding - diluted | 37,585,167 | 37,361,338 | 37,286,454 | |||||||||
Anti-dilutive stock options outstanding | 218,197 | 180,000 | 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 ("IRS"). 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. | ||||||||||||
Segment Information | ||||||||||||
Under U.S. GAAP, operating segments are based on the internal information that management uses for allocating resources and assessing performance as the source of the Company's reportable segments. | ||||||||||||
The Company manages its business on the basis of one operating segment, Property and Casualty Reinsurance, in accordance with the qualitative and quantitative criteria established by U.S. GAAP. | ||||||||||||
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 | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Financial Instruments [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. | |||||||||||||||||||||
The Company is exposed to credit risk in relation to counterparties that may default on their obligations to the Company. The amount of counterparty credit risk predominantly relates to the value of financial contracts receivable and assets held at counterparties. The Company mitigates its counterparty credit risk by using several counterparties which decreases the likelihood of any significant concentration of credit risk with any one counterparty. In addition, the Company is exposed to credit risk on corporate and sovereign debt instruments to the extent that the debtors may default on their debt obligations. | |||||||||||||||||||||
The Company is exposed to market risk including interest rate and foreign exchange fluctuations on financial instruments that are valued at market prices. Market movements can be volatile and difficult to predict. This may affect the ultimate gains or losses realized upon the sale of its holdings as well as the amount of net investment income reported in the consolidated statements of income. Management utilizes the services of the Company's investment advisor to monitor the Company's positions to reduce the risk of potential loss due to changes in market values. | |||||||||||||||||||||
Purchases and sales of investments are disclosed in the consolidated statements of cash flows. Net realized gains on the sale of investments, financial contracts, and investments sold, not yet purchased during 2013 were $142.0 million (2012: $60.8 million gains, 2011: $139.8 million gains). Gross realized gains were $352.9 million (2012: $268.1 million, 2011: $337.9 million) and gross realized losses were $210.9 million (2012: $207.3 million, 2011: $198.1 million). For the year ended December 31, 2013, included in net investment income in the consolidated statements of income were $154.8 million of net gains (2012: $67.6 million of net gains, 2011: $75.7 million of net losses) relating to change in unrealized gains and losses on trading securities still held at the balance sheet date. | |||||||||||||||||||||
As of December 31, 2013, cash and investments with a fair value of $410.3 million (2012: $441.7 million) have been pledged as security against letters of credit issued. | |||||||||||||||||||||
As of December 31, 2013, the Company’s investment in Apple Inc. and Micron Technology Inc. were the only investments in excess of 10% of the Company’s shareholders’ equity, with fair values of $161.4 million and $147.0 million, or 14.9% and 13.5% of shareholders' equity, respectively. As of December 31, 2012, the Company’s investment in gold and gold derivatives was the only investment in excess of 10% of the Company’s shareholders’ equity, with fair values of $97.6 million, or 11.3% of shareholders' equity. | |||||||||||||||||||||
Fair Value Hierarchy | |||||||||||||||||||||
The Company’s financial instruments are carried at fair value, and the net unrealized gains or losses are included in net investment income in the consolidated statements of income. | |||||||||||||||||||||
The following table presents the Company’s investments, categorized by the level of the fair value hierarchy as of December 31, 2013: | |||||||||||||||||||||
Fair value measurements as of December 31, 2013 | |||||||||||||||||||||
Quoted prices in | Significant other | Significant | Total | ||||||||||||||||||
active markets | observable | unobservable | |||||||||||||||||||
Description | (Level 1) | inputs | inputs | ||||||||||||||||||
(Level 2) | (Level 3) | ||||||||||||||||||||
Assets: | ($ in thousands) | ||||||||||||||||||||
Debt instruments | $ | — | $ | 3,785 | $ | 527 | $ | 4,312 | |||||||||||||
Listed equity securities | 1,274,920 | 7,236 | — | 1,282,156 | |||||||||||||||||
Commodities | 60,888 | — | — | 60,888 | |||||||||||||||||
Private and unlisted equity securities | — | — | 46,323 | 46,323 | |||||||||||||||||
Financial contracts receivable | 4,500 | 99,548 | — | 104,048 | |||||||||||||||||
$ | 1,340,308 | $ | 110,569 | $ | 46,850 | $ | 1,497,727 | ||||||||||||||
Liabilities: | |||||||||||||||||||||
Listed equity securities, sold not yet purchased | $ | (917,123 | ) | $ | — | $ | — | $ | (917,123 | ) | |||||||||||
Debt instruments, sold not yet purchased | — | (194,567 | ) | — | (194,567 | ) | |||||||||||||||
Financial contracts payable | — | (18,857 | ) | — | (18,857 | ) | |||||||||||||||
$ | (917,123 | ) | $ | (213,424 | ) | $ | — | $ | (1,130,547 | ) | |||||||||||
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 year ended December 31, 2013: | |||||||||||||||||||||
2013 | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
Debt instruments | Private and unlisted equity securities | Total | |||||||||||||||||||
($ in thousands) | |||||||||||||||||||||
Beginning balance | $ | 260 | $ | 38,801 | $ | 39,061 | |||||||||||||||
Purchases | 9,224 | 38,086 | 47,310 | ||||||||||||||||||
Sales | (9,224 | ) | (7,252 | ) | (16,476 | ) | |||||||||||||||
Total realized and unrealized gains (losses) and amortization included in earnings, net | 267 | 1,269 | 1,536 | ||||||||||||||||||
Transfers into Level 3 | — | — | — | ||||||||||||||||||
Transfers out of Level 3 | — | (24,581 | ) | (24,581 | ) | ||||||||||||||||
Ending balance | $ | 527 | $ | 46,323 | $ | 46,850 | |||||||||||||||
During the year ended December 31, 2013, $5.0 million of securities at fair value based on the date of transfer, were transferred from Level 3 to Level 2, as these securities started actively trading on a listed exchange during 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 year ended December 31, 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 listed exchange and there were no lock-up restrictions on these securities. During the year ended December 31, 2013, $2.4 million of securities at fair value based on the date of transfer, were transferred from Level 2 to Level 1 as the lock-up period restrictions on those securities expired. | |||||||||||||||||||||
The following table presents the reconciliation of the balances for all investments measured at fair value using significant unobservable inputs (Level 3) for the year ended December 31, 2012: | |||||||||||||||||||||
2012 | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
Debt instruments | Private and unlisted equity securities | Financial contracts receivable | Total | ||||||||||||||||||
($ in thousands) | |||||||||||||||||||||
Beginning balance | $ | 465 | $ | 31,179 | $ | 263 | $ | 31,907 | |||||||||||||
Purchases | — | 11,518 | — | 11,518 | |||||||||||||||||
Sales | (1 | ) | (1,754 | ) | — | (1,755 | ) | ||||||||||||||
Total realized and unrealized gains (losses) and amortization included in earnings, net | (204 | ) | 2,834 | (263 | ) | 2,367 | |||||||||||||||
Transfers into Level 3 | — | — | — | — | |||||||||||||||||
Transfers out of Level 3 | — | (4,976 | ) | — | (4,976 | ) | |||||||||||||||
Ending balance | $ | 260 | $ | 38,801 | $ | — | $ | 39,061 | |||||||||||||
During the year ended December 31, 2012, $32.4 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. Additionally, for the year ended December 31, 2012, $5.0 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 year ended December 31, 2012. However, due to lock-up period restrictions on these securities, a liquidity discount was used in determining their fair value at December 31, 2012, and therefore classified as Level 2. | |||||||||||||||||||||
There were no other transfers between Level 1, Level 2 or Level 3 during the years ended December 31, 2013 and 2012. | |||||||||||||||||||||
For the year ended December 31, 2013, included in net investment income in the consolidated statements of income were realized gains relating to Level 3 securities of $0.7 million (2012: realized gains of $0.6 million). For Level 3 classified securities held as of the reporting date, the change in unrealized losses for the year ended December 31, 2013 of $1.1 million (2012: unrealized gains of $2.0 million) were included in net investment income in the consolidated statements of income. In addition, for the year ended December 31, 2013, amortization expense of $0 (2012: $0.3 million) relating to financial contracts receivable valued using unobservable inputs, was included in other income (expense), net. | |||||||||||||||||||||
Investments | |||||||||||||||||||||
Debt Instruments, Trading | |||||||||||||||||||||
At December 31, 2013, the following investments were included in debt instruments, trading: | |||||||||||||||||||||
2013 | Cost/ | Unrealized | Unrealized | Fair | |||||||||||||||||
amortized | gains | losses | value | ||||||||||||||||||
cost | |||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||
Corporate debt – U.S. | $ | 2,116 | $ | — | $ | (1,589 | ) | $ | 527 | ||||||||||||
Corporate debt – Non U.S. | 3,761 | 115 | (91 | ) | 3,785 | ||||||||||||||||
Total debt instruments | $ | 5,877 | $ | 115 | $ | (1,680 | ) | $ | 4,312 | ||||||||||||
At December 31, 2012, the following investments were included in debt instruments, trading: | |||||||||||||||||||||
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 December 31, 2013 and 2012, was as follows: | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Cost/ | Fair | Cost/ | Fair | ||||||||||||||||||
amortized | value | amortized | value | ||||||||||||||||||
cost | cost | ||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||
Within one year | $ | — | $ | — | $ | — | $ | — | |||||||||||||
From one to five years | — | — | — | — | |||||||||||||||||
From five to ten years | — | — | — | — | |||||||||||||||||
More than ten years | 5,877 | 4,312 | 3,496 | 1,763 | |||||||||||||||||
$ | 5,877 | $ | 4,312 | $ | 3,496 | $ | 1,763 | ||||||||||||||
Investment in Equity Securities, Trading | |||||||||||||||||||||
At December 31, 2013, the following long positions were included in investment in equity securities, trading: | |||||||||||||||||||||
2013 | Cost | Unrealized | Unrealized | Fair | |||||||||||||||||
gains | losses | value | |||||||||||||||||||
($ in thousands) | |||||||||||||||||||||
Equities – listed | $ | 923,594 | $ | 361,695 | $ | (28,712 | ) | $ | 1,256,577 | ||||||||||||
Exchange traded funds | 50,253 | — | (24,674 | ) | 25,579 | ||||||||||||||||
$ | 973,847 | $ | 361,695 | $ | (53,386 | ) | $ | 1,282,156 | |||||||||||||
At December 31, 2012, the following long positions were included in investment in equity 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 December 31, 2013 and 2012, commodities were comprised of gold bullion. | |||||||||||||||||||||
At December 31, 2013, the following securities were included in other investments: | |||||||||||||||||||||
2013 | Cost | Unrealized | Unrealized | Fair | |||||||||||||||||
gains | losses | value | |||||||||||||||||||
($ in thousands) | |||||||||||||||||||||
Commodities | $ | 54,633 | $ | 6,255 | $ | — | $ | 60,888 | |||||||||||||
Private and unlisted equity securities | 45,544 | 8,170 | (7,391 | ) | 46,323 | ||||||||||||||||
$ | 100,177 | $ | 14,425 | $ | (7,391 | ) | $ | 107,211 | |||||||||||||
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 December 31, 2013, included in private and unlisted equity securities are investments in private equity funds with a fair value of $41.6 million (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 December 31, 2013. The private equity funds have varying lock-up periods and as of December 31, 2013, all of the funds had redemption restrictions, and therefore have been categorized within Level 3 of the fair value hierarchy. The redemption restrictions have been in place since inception of the investments and are not expected to lapse. As of December 31, 2013, the Company had $6.3 million (2012: $12.6 million) of unfunded commitments relating to private equity funds whose fair values are determined based on unadjusted net asset values reported by the managers of these securities. These commitments are included in the amounts presented in the schedule of commitments and contingencies in Note 14 of these consolidated financial statements. | |||||||||||||||||||||
Investments in Securities Sold, Not Yet Purchased | |||||||||||||||||||||
Securities sold, not yet purchased are securities that the Company has sold, but does not own, in anticipation of a decline in the market value of the security. The Company’s risk is that the value of the security will increase rather than decline. Consequently, the settlement amount of the liability for securities sold, not yet purchased may exceed the amount recorded in the consolidated balance sheet as the Company is obligated to purchase the securities sold, not yet purchased in the market at prevailing prices to settle its obligations. To sell a security, not yet purchased, the Company needs to borrow the security for delivery to the buyer. On each day the transaction is open, the liability for the obligation to replace the borrowed security is marked-to-market and an unrealized gain or loss is recorded. At the time the transaction is closed, the Company realizes a gain or loss equal to the difference between the price at which the security was sold and the cost of replacing the borrowed security. While the transaction is open, the Company will also incur an expense for any dividends or interest which will be paid to the lender of the securities. | |||||||||||||||||||||
At December 31, 2013, the following securities were included in investments in securities sold, not yet purchased: | |||||||||||||||||||||
2013 | Proceeds | Unrealized gains | Unrealized losses | Fair value | |||||||||||||||||
($ in thousands) | |||||||||||||||||||||
Equities – listed | $ | (836,708 | ) | $ | 57,854 | $ | (130,621 | ) | $ | (909,475 | ) | ||||||||||
Exchange traded funds | (6,318 | ) | — | (1,330 | ) | (7,648 | ) | ||||||||||||||
Corporate debt – U.S. | (8,135 | ) | 2 | (235 | ) | (8,368 | ) | ||||||||||||||
Sovereign debt – Non U.S. | (170,375 | ) | — | (15,824 | ) | (186,199 | ) | ||||||||||||||
$ | (1,021,536 | ) | $ | 57,856 | $ | (148,010 | ) | $ | (1,111,690 | ) | |||||||||||
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 December 31, 2013 and 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 December 31, 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 | |||||||||||||||||||||
Forwards | JPY | 71,162 | $ | 383 | |||||||||||||||||
Futures | JPY/USD | 117,494 | 4,500 | ||||||||||||||||||
Interest rate options | USD | 391,559 | 26 | ||||||||||||||||||
Put options | USD | 217,359 | 12,923 | ||||||||||||||||||
Total return swaps – equities | EUR/GBP/HKD/USD | 178,988 | 83,325 | ||||||||||||||||||
Warrants and rights on listed equities | EUR | 5,237 | 2,891 | ||||||||||||||||||
Total financial contracts receivable, at fair value | $ | 104,048 | |||||||||||||||||||
Financial contracts payable | |||||||||||||||||||||
Credit default swaps, purchased – corporate debt | USD | 273,877 | $ | (3,625 | ) | ||||||||||||||||
Credit default swaps, purchased – sovereign debt | USD | 251,467 | (3,980 | ) | |||||||||||||||||
Forwards | KRW | 32,100 | (58 | ) | |||||||||||||||||
Total return swaps – equities | EUR/GBP/HKD | 36,983 | (11,194 | ) | |||||||||||||||||
Total financial contracts payable, at fair value | $ | (18,857 | ) | ||||||||||||||||||
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 | ) | |||||||||||||||||
Warrants and rights on listed equities | USD/CAD | — | — | ||||||||||||||||||
Total financial contracts payable, at fair value | $ | (19,637 | ) | ||||||||||||||||||
As of December 31, 2013 and 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. | |||||||||||||||||||||
Options are derivative financial instruments that give the buyer, in exchange for a premium payment, the right, but not the obligation, to either purchase from (call option) or sell to (put option) the writer, a specified underlying security at a specified price on or before a specified date. The Company enters into option contracts to meet certain investment objectives. For exchange traded option contracts, the exchange acts as the counterparty to specific transactions and therefore bears the risk of delivery to and from counterparties of specific positions. For OTC options, a dealer acts as the counterparty and therefore the Company is exposed to credit risk to the extent the dealer is unable to meet its obligations. As of December 31, 2013, the Company held OTC put options (long) with fair values of $12.9 million. As of December 31, 2012, the Company held OTC put options (long) and call options (long) with fair values of $17.2 million and $1.5 million, respectively. | |||||||||||||||||||||
During the years ended December 31, 2013, 2012 and 2011, the Company reported gains and losses on derivatives as follows: | |||||||||||||||||||||
Derivatives not designated as hedging instruments | Location of gains and losses on derivatives recognized in income | Gain (loss) on derivatives recognized | |||||||||||||||||||
in income | |||||||||||||||||||||
Year ended December 31 | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
($ in thousands) | |||||||||||||||||||||
Credit default swaps, issued – corporate debt | Net investment income (loss) | $ | — | $ | — | $ | 4,785 | ||||||||||||||
Credit default swaps, purchased – corporate debt | Net investment income (loss) | (3,552 | ) | (7,342 | ) | 1,042 | |||||||||||||||
Credit default swaps, purchased – sovereign debt | Net investment income (loss) | (1,087 | ) | (5,086 | ) | 14,957 | |||||||||||||||
Currency forwards | Net investment income (loss) | 11,209 | — | (3,612 | ) | ||||||||||||||||
Futures | Net investment income (loss) | 12,504 | (13,064 | ) | (2,365 | ) | |||||||||||||||
Interest rate options | Net investment income (loss) | (82 | ) | (2,127 | ) | (9,625 | ) | ||||||||||||||
Options, warrants, and rights | Net investment income (loss) | 21,446 | (8,988 | ) | (29,185 | ) | |||||||||||||||
Total return swaps – equities | Net investment income (loss) | 85,638 | (13,176 | ) | 8,094 | ||||||||||||||||
Weather derivative swap | Other income (expense), net | — | (263 | ) | (451 | ) | |||||||||||||||
Total | $ | 126,076 | $ | (50,046 | ) | $ | (16,360 | ) | |||||||||||||
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 year ended December 31, 2013, the Company’s volume of derivative activities (based on notional amounts) was as follows: | |||||||||||||||||||||
2013 | Year ended December 31 | ||||||||||||||||||||
Derivatives not designated as hedging instruments | Entered | Exited | |||||||||||||||||||
($ in thousands) | |||||||||||||||||||||
Currency forwards | $ | 423,443 | $ | 115,884 | |||||||||||||||||
Futures | 401,672 | 292,529 | |||||||||||||||||||
Interest rate options (1) | — | 376,385 | |||||||||||||||||||
Options (1) | 930,410 | 965,991 | |||||||||||||||||||
Total return swaps | 194,343 | 88,404 | |||||||||||||||||||
Total | $ | 1,949,868 | $ | 1,839,193 | |||||||||||||||||
(1) Exited amount excludes options which expired or were exercised during the period. | |||||||||||||||||||||
For the year ended December 31, 2012, the Company’s volume of derivative activities (based on notional amounts) was as follows: | |||||||||||||||||||||
2012 | Year ended December 31 | ||||||||||||||||||||
Derivatives not designated as hedging instruments | Entered | Exited | |||||||||||||||||||
($ in thousands) | |||||||||||||||||||||
Credit default swaps | $ | — | $ | 45,966 | |||||||||||||||||
Futures | 1,033,604 | 1,208,785 | |||||||||||||||||||
Options (1) | 818,319 | 436,033 | |||||||||||||||||||
Total return swaps | 67,755 | 61,535 | |||||||||||||||||||
Weather derivative swap | — | 5,000 | |||||||||||||||||||
Total | $ | 1,919,678 | $ | 1,757,319 | |||||||||||||||||
(1) Exited amount excludes options which expired or were exercised during the period. | |||||||||||||||||||||
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 December 31, 2013, the gross and net amounts of derivative instruments and the cash collateral applicable to derivative instruments were as follows: | |||||||||||||||||||||
31-Dec-13 | (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 | $ | 104,048 | $ | — | $ | 104,048 | $ | (45,168 | ) | $ | 58,880 | ||||||||||
Financial contracts payable | (18,857 | ) | — | (18,857 | ) | 34,859 | 16,002 | ||||||||||||||
Securities sold, not yet purchased | (1,111,690 | ) | — | (1,111,690 | ) | 1,111,690 | — | ||||||||||||||
As of December 31, 2012, the gross and net amounts of derivative instruments and the cash collateral applicable to derivative instruments were as follows: | |||||||||||||||||||||
31-Dec-12 | (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 | 12 Months Ended |
Dec. 31, 2013 | |
Due to and from Broker-Dealers and Clearing Organizations [Abstract] | ' |
DUE TO PRIME BROKERS | ' |
DUE TO PRIME BROKERS | |
As of December 31, 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 Notes 6 and 14). 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 consolidated balance sheets as due to prime brokers while the cash held in the custodial account is included on the consolidated balance sheets as restricted cash and cash equivalents. At December 31, 2013, the amounts due to prime brokers included $202.2 million (2012: $252.7 million) of cash borrowed under the term margin agreements to provide collateral for letters of credit facilities and $112.5 million (2012: $73.7 million) of borrowing relating to investment purchases. | |
The Company's original investment guidelines allowed for temporary (30 days) leverage for investment purposes up to 20% of net invested assets, and for an extended time period, up to 5% of net invested assets. During 2013, the Board of Directors granted temporary waivers of the 5% leverage restriction. These waivers allowed for an aggregate of 20% net margin leverage for extended periods which terminated on July 24, 2013. Effective July 24, 2013, Greenlight Re's investment guidelines were amended to allow up to 15% net margin leverage for extended periods of time and up to 30% net margin leverage for periods of less than 30 days. |
CASH_AND_CASH_EQUIVALENTS
CASH AND CASH EQUIVALENTS (Cash and Cash Equivalents) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Cash and Cash Equivalents | ' | ||||||||
Cash and Cash Equivalents [Line Items] | ' | ||||||||
CASH AND CASH EQUIVALENTS | ' | ||||||||
CASH AND CASH EQUIVALENTS | |||||||||
2013 | 2012 | ||||||||
($ in thousands) | |||||||||
Cash at banks | $ | 3,674 | $ | 7,561 | |||||
Cash held with brokers | 48 | 14,329 | |||||||
Total cash and cash equivalents | $ | 3,722 | $ | 21,890 | |||||
Due to the short term nature of cash and cash equivalents, management believes the above noted carrying values approximate their fair value. Cash at banks include cash held at non-U.S. financial institutions which are not insured by the FDIC or any other deposit insurance programs. |
RESTRICTED_CASH_AND_CASH_EQUIV
RESTRICTED CASH AND CASH EQUIVALENTS (Restricted Cash and Cash Equivalents) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Restricted Cash and Cash Equivalents | ' | ||||||||
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ||||||||
RESTRICTED CASH AND CASH EQUIVALENTS | ' | ||||||||
RESTRICTED CASH AND CASH EQUIVALENTS | |||||||||
The Company is required to maintain certain cash in segregated accounts with prime brokers and swap 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 a certain letter of credit facility (see Notes 4 and 14). The amount of cash encumbered varies depending on the market value of the securities sold, not yet purchased and letters of credit issued. Swap 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 security. | |||||||||
2013 | 2012 | ||||||||
($ in thousands) | |||||||||
Cash held by prime brokers relating to securities sold, not yet purchased | $ | 1,111,690 | $ | 910,003 | |||||
Cash collateral relating to letters of credit issued | 202,248 | 252,748 | |||||||
Cash and cash equivalents held by swap counterparties | 20,136 | 44,086 | |||||||
Total restricted cash and cash equivalents | $ | 1,334,074 | $ | 1,206,837 | |||||
LOSS_AND_LOSS_ADJUSTMENT_EXPEN
LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Insurance Loss Reserves [Abstract] | ' | ||||||||||||
LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES | ' | ||||||||||||
LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES | |||||||||||||
A summary of changes in outstanding loss and loss adjustment expense reserves is as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
($ in thousands) | |||||||||||||
Gross balance at January 1 | $ | 356,470 | $ | 241,279 | $ | 186,467 | |||||||
Less: Losses recoverable | (34,451 | ) | (29,758 | ) | (11,976 | ) | |||||||
Net balance at January 1 | 322,019 | 211,521 | 174,491 | ||||||||||
Incurred losses related to: | |||||||||||||
Current year | 344,613 | 309,703 | 215,675 | ||||||||||
Prior years | (6,120 | ) | 56,898 | 26,015 | |||||||||
Total incurred | 338,493 | 366,601 | 241,690 | ||||||||||
Paid losses related to: | |||||||||||||
Current year | (177,871 | ) | (130,717 | ) | (81,732 | ) | |||||||
Prior years | (170,018 | ) | (125,767 | ) | (122,898 | ) | |||||||
Total paid | (347,889 | ) | (256,484 | ) | (204,630 | ) | |||||||
Foreign currency revaluation | 442 | 381 | (30 | ) | |||||||||
Net balance at December 31 | 313,065 | 322,019 | 211,521 | ||||||||||
Add: Losses recoverable | 16,829 | 34,451 | 29,758 | ||||||||||
Gross balance at December 31 | $ | 329,894 | $ | 356,470 | $ | 241,279 | |||||||
For the year ended December 31, 2013, the net favorable loss development relating to prior year contracts amounted to $6.1 million and was primarily related to the following: | |||||||||||||
● | Elimination of $15.0 million of reserves relating to super-storm Sandy based on additional information received from the client which indicated that the losses would not exceed the threshold of coverage provided under the contract. As a result of the reversal of loss reserves, the Company also reversed reinstatement premiums earned of $2.6 million; | ||||||||||||
● | $4.0 million of favorable loss development relating to commercial automobile business due to better than expected loss development on open claims and settling of claims at lower amounts than expected. Loss reserves were decreased on these contracts after a detailed review of existing claims data received from the clients, audits of claim files at the third party claims administrators and actuarial analysis based on all available information; | ||||||||||||
● | $3.0 million favorable loss development relating to a non-standard automobile contract as a result of final settlement of losses upon commutation of the contract at an amount lower than originally reserved. However, because this contract included a sliding scale ceding commission rate, the decrease in loss reserves was offset by a $2.3 million increase in ceding commissions recorded as acquisition costs; | ||||||||||||
● | $2.4 million favorable loss development relating to Florida homeowners' insurance business due to better than expected development on sinkhole claims, primarily as a result of legislative changes implemented in the State of Florida during 2012; | ||||||||||||
● | $17.7 million of adverse loss development, net of retrocession recoveries, relating to general liability business. Loss reserves were increased on these contracts after a detailed review of existing claims data received from the clients, audits of claim files at the third party claims administrators and actuarial analysis based on all available information; and | ||||||||||||
● | $4.0 million of adverse loss development on a 2007 casualty clash contract based on updated claims and loss information received from the client. The new information indicated that ground up losses under the contract estimated by the client had increased resulting in additional losses attaching to the Company's layer. As a result of this increase in loss reserves, the Company recorded reinstatement premiums of $1.2 million. | ||||||||||||
There were no other significant developments of prior period loss reserves during the year ended December 31, 2013. | |||||||||||||
For the year ended December 31, 2012, the net loss reserves on prior period contracts increased by $56.9 million which primarily related to the following: | |||||||||||||
● | $18.8 million of adverse loss development on a commercial motor liability contract that has been in run-off since 2010. The increase in loss reserves was based on updated loss data received from the third party claims adjuster and the client, as well as the Company's quarterly analysis of the remaining open claims and the reserves required to settle and resolve all remaining claims and any new reported claims; | ||||||||||||
● | $21.9 million of adverse loss development, net of retrocession recoveries, relating to commercial motor liability exposures that are currently in run-off on two multi-line quota share contracts. Since these contracts are less mature than the Company's other commercial motor liability contract, there is more uncertainty as to the ultimate losses to be paid. As a result, the Company has recorded loss reserves for the commercial motor portion of these contracts consistent with the loss ratio recorded for the more mature commercial motor contract. Loss reserves were increased on these contracts after extensive review of existing claims data, the Company's previous experience with commercial motor liability business and actuarial analysis based on data received from third party claims handlers and the client; | ||||||||||||
● | $9.0 million of adverse loss development on a 2010 natural peril contract relating to the 2010 New Zealand earthquake. This adverse loss development resulted from revised estimated losses expected on the underlying policies by the ceding insurer, primarily due to complex engineering and structural requirements as well as building-code changes being implemented in New Zealand. The updated loss reserves resulted in a full limit loss of $10.0 million under this contract; and | ||||||||||||
● | $4.6 million of adverse loss development, net of retrocession recoveries, on prior period Florida homeowners' contracts due to a combination of an increase in attritional losses as well as an increase in sinkhole losses based on updated information received from the ceding insurer during the period as well as a reassessment in connection with the Company's quarterly reserve analysis. These contracts contain sliding scale commission adjustments which offset some of the adverse loss development. Therefore, $4.6 million of adverse loss development was offset by a reduction of $1.3 million in commission expenses. | ||||||||||||
There were no other significant developments of prior period loss reserves during the year ended December 31, 2012. | |||||||||||||
For the year ended December 31, 2011, the net losses incurred included $26.0 million related to net adverse loss development on reserves relating to prior years. During the year ended December 31, 2011, the loss development on prior year contracts primarily related to the following: | |||||||||||||
● | Adverse loss development of $15.7 million based on data received from the client and the Company's reserve analysis relating to prior year commercial motor liability contracts that are in run-off. The Company received additional loss data from the client during 2011 that indicated higher than expected paid and incurred losses. During 2011, based on a review of the client’s actual loss data and as part of the Company's quarterly reserve analysis, the Company increased its loss reserves accordingly; | ||||||||||||
● | Adverse loss development of $9.7 million, net of retrocession recoveries, on multi-line quota share contracts based on data received from the clients and a reassessment in connection with the Company's quarterly reserve analysis which indicated higher large loss activity on the accounts than originally expected; | ||||||||||||
● | Adverse loss development of $1.6 million on Florida homeowners’ contracts based on data received from the client and a reassessment in connection with the Company's quarterly reserve analysis; and | ||||||||||||
● | Favorable loss development of $1.3 million relating to a specialty health contract based on data received from the client and a reassessment in connection with the Company's quarterly reserve analysis. | ||||||||||||
There were no other significant developments of prior period loss reserves during the year ended December 31, 2011. | |||||||||||||
At December 31, 2013 and 2012, loss and loss adjustment expense reserves were comprised of the following: | |||||||||||||
2013 | 2012 | ||||||||||||
($ in thousands) | |||||||||||||
Case reserves | $ | 137,825 | $ | 140,674 | |||||||||
IBNR | 192,069 | 215,796 | |||||||||||
Total | $ | 329,894 | $ | 356,470 | |||||||||
RETROCESSION
RETROCESSION | 12 Months Ended |
Dec. 31, 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 expenses recoverable from the retrocessionaires are recorded as assets. | |
For the year ended December 31, 2013, loss and loss adjustment expenses incurred of $338.5 million (2012: $366.6 million and 2011: $241.7 million) reported on the consolidated statements of income are net of loss and loss expenses recovered and recoverable of $(10.2) million (2012: $13.0 million and 2011: $28.1 million). The negative loss and loss expenses recovered for the year ended December 31, 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 December 31, 2013, the Company had loss reserves recoverable of $16.8 million (December 31, 2012: $34.3 million) with unrated retrocessionaires. At December 31, 2013 and 2012, $4.0 million and $11.4 million, respectively, of losses recoverable from unrated retrocessionaires were secured by cash collateral, and the remainder was secured by other collateral in the form of guarantees. | |
At December 31, 2013, uncollateralized loss reserves recoverable of $12.8 million related to an unrated retrocessionaire who is contractually obligated to post collateral but has failed to do so. During 2013, an arbitration panel ruled in favor of the Company. The retrocessionaire challenged the arbitration award, seeking to set it aside. A judge in the Grand Court in Grand Cayman subsequently ordered the retrocessionaire to post security in the amount of the arbitration award pending a hearing on the merits. Additionally, at December 31, 2013 the parent entity of the retrocessionaire was also delinquent in its payment to the Company of $12.0 million relating to ceding commission adjustments included in reinsurance balances receivable. The Company has initiated legal proceedings in order to enforce its contractual rights. The Company believes it will be successful in its pending legal actions. | |
The Company regularly evaluates the financial condition of all its retrocessionaires to assess the ability of the retrocessionaires to honor their obligations. At December 31, 2013 and 2012, no provision for uncollectible losses recoverable was considered necessary. |
SHARE_CAPITAL
SHARE CAPITAL | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||
SHARE CAPITAL | ' | ||||||||||||||||||
SHARE CAPITAL | |||||||||||||||||||
The holders of all ordinary shares are entitled to share equally in dividends declared by the Board of Directors. In the event of a winding-up or dissolution of the Company, the ordinary shareholders share equally and ratably in the assets of the Company, after payment of all debts and liabilities of the Company and after liquidation of any issued and outstanding preferred shares. At December 31, 2013, no preferred shares were issued or outstanding. The Board of Directors is authorized to establish the rights and restrictions for preferred shares as they deem appropriate. | |||||||||||||||||||
The Third Amended and Restated Memorandum and Articles of Association as revised by special resolution on July 10, 2008 (the "Articles"), provide that the holders of Class A ordinary shares generally are entitled to one vote per share. However, except upon unanimous consent of the Board of Directors, no Class A shareholder is permitted to vote an amount of shares which would cause any United States person to own (directly, indirectly or constructively under applicable United States tax attribution and constructive ownership rules) 9.9% or more of the total voting power of all issued and outstanding ordinary shares. The Articles further provide that the holders of Class B ordinary shares generally are entitled to ten votes per share. However, holders of Class B ordinary shares, together with their affiliates, are limited to voting that number of Class B ordinary shares equal to 9.5% of the total voting power of the total issued and outstanding ordinary shares. | |||||||||||||||||||
Pursuant to the Shareholders' Agreement, dated August 11, 2004, by and among the Company and certain of its shareholders, (the “Shareholders’ Agreement”) the holders of at least 50% of the outstanding Registrable Securities (as defined in the Shareholders' Agreement), may, subject to certain conditions, request to have all or part of their Registrable Securities to become registered. The Shareholders' Agreement requires, among other things, that the Company use its commercially reasonable best efforts to have a registration statement covering such Registrable Securities to be declared effective. The registration rights granted pursuant to the Shareholders' Agreement are not deemed to be liabilities; therefore, there has been no recognition in the consolidated financial statements of the registration rights granted pursuant to the Shareholders' Agreement. | |||||||||||||||||||
As of December 31, 2013, the Company had an unused Form S-3 registration statement, declared effective by the SEC on July 10, 2009, which was renewed in June 2012 and expires in June 2015 unless renewed, for an aggregate principal amount of $200 million in securities. | |||||||||||||||||||
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 December 31, 2013, 20,000 (2012: 250,000) Class A ordinary shares remained available for future issuance relating to share purchase options granted to the service provider, and 961,587 (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. | |||||||||||||||||||
The Board has adopted a share repurchase plan. Under the share repurchase plan, the Board authorized the Company to purchase up to 2.0 million of its Class A ordinary shares from time to time. Class A ordinary shares or securities convertible into Class A ordinary shares, may be purchased in the open market or through privately negotiated transactions. The timing of such repurchases and actual number of shares repurchased will depend on a variety of factors including price, market conditions and applicable regulatory and corporate requirements. The share repurchase plan, which expires on June 30, 2014, does not require the Company to repurchase any specific number of shares and may be modified, suspended or terminated at any time without prior notice. As of December 31, 2013, 2.0 million shares remained available under the share repurchase plan. Under the Companies Law of the Cayman Islands, the Company cannot hold treasury shares; therefore, all ordinary shares repurchased are canceled immediately upon repurchase. | |||||||||||||||||||
The following table is a summary of voting ordinary shares issued and outstanding: | |||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||
Class A | Class B | Class A | Class B | Class A | Class B | ||||||||||||||
Balance – beginning of year | 30,447,179 | 6,254,949 | 30,283,200 | 6,254,949 | 30,200,835 | 6,254,949 | |||||||||||||
Issue of ordinary shares, net of forfeitures | 344,686 | — | 163,979 | — | 82,365 | — | |||||||||||||
Balance – end of year | 30,791,865 | 6,254,949 | 30,447,179 | 6,254,949 | 30,283,200 | 6,254,949 | |||||||||||||
Previously, Greenlight Re, the Company's reinsurance subsidiary based in the Cayman Islands, was required to maintain a minimum net worth of US$120,000. During 2012, CIMA adopted the Insurance (Capital and Solvency) (Classes B, C, and D Insurers) Regulations, 2012 (the "Insurance Regulations"). The Insurance Regulations impose a Minimum Capital Requirement of US$50.0 million and a Prescribed Capital Requirement of $449.4 million on Greenlight Re as of December 31, 2013. Greenlight Re's statutory capital and surplus of $988.7 million exceeded the Minimum Capital Requirement as well as the Prescribed Capital Requirement. For the years ended December 31, 2013, 2012 and 2011, Greenlight Re's net income was $229.8 million, $15.3 million, and $10.3 million, respectively. | |||||||||||||||||||
Greenlight Re is not required to prepare separate statutory financial statements for filing with CIMA and there were no material differences between Greenlight Re's GAAP capital, surplus and net income, and its statutory capital, surplus and net income as of December 31, 2013 and 2012. | |||||||||||||||||||
As of December 31, 2013, none of the Company's retained earnings were restricted from payment of dividends to the Company's shareholders. However, since most of the Company's capital and retained earnings are invested in its subsidiaries, a dividend from one or more of the Company's subsidiaries would likely be required in order to fund a dividend to the Company's shareholders. Any dividends declared and paid from Greenlight Re to the Company would require approval of CIMA. As of December 31, 2013, $539.3 million of Greenlight Re's capital and surplus was available for distribution as dividends. The amount of dividends that GRIL is permitted to distribute is limited to its retained earnings and the Central Bank of Ireland has powers to intervene if a dividend payment were to lead to a breach of regulatory capital requirements. As of December 31, 2013, $6.0 million of GRIL's capital and surplus was available for distribution as dividends. | |||||||||||||||||||
GRIL is obliged to maintain a minimum level of capital (the "Required Minimum Margin"). As of December 31, 2013 and 2012 GRIL met those requirements. As of December 31, 2013 and 2012, GRIL's statutory capital and surplus was the same as its U.S. GAAP capital and surplus of $46.1 million and $42.5 million, respectively. The required solvency margin for GRIL as of December 31, 2013 and 2012 was $13.6 million and $8.3 million, respectively. GRIL's statutory net income (loss) was $3.6 million, $1.8 million and $(1.6) million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||
Additional paid-in capital includes the premium per share paid by the subscribing shareholders for Class A and B ordinary shares which have a par value of $0.10 each. It also includes share-based awards earned not yet issued. |
SHAREBASED_COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended | ||||||||||
Dec. 31, 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 as detailed in Note 9 above. | |||||||||||
Service Provider Share Purchase Options | |||||||||||
On September 20, 2004, the Company had granted share purchase options to a service provider to purchase 400,000 Class A ordinary shares at an exercise price of $10 per share. The Company had previously repurchased 100,000 of the share purchase options. During the year ended December 31, 2013, 230,000 share purchase options were exercised (2012: 0, 2011: 50,000) resulting in the issuance of 161,734 Class A ordinary shares (2012: 0, 2011: 25,843). As of December 31, 2013, there were 20,000 service provider 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 year ended December 31, 2013, 111,231 (2012: 112,477, 2011: 99,573) 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 three 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 year ended December 31, 2013, the Company also issued to non-employee directors an aggregate of 36,374 (2012: 35,994, 2011: 36,565) 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 year ended December 31, 2013, 16,826 (2012: 7,492, 2011: 79,616) restricted shares were forfeited by employees who left the Company prior to the expiration of the vesting period. For the year ended December 31, 2013, in accordance with U.S. GAAP, stock compensation expense of $0.2 million (2012: $0.2 million, 2011: $0.8 million) relating to the forfeited restricted shares was reversed. | |||||||||||
The Company recorded $3.2 million of share-based compensation expense relating to restricted shares for the year ended December 31, 2013 (2012: $3.1 million, 2011: $2.4 million). As of December 31, 2013, there were $3.5 million (2012: $3.4 million, 2011: $3.0 million) of unrecognized compensation costs related to non-vested restricted shares which are expected to be recognized over a weighted average period of 1.7 years (2012: 1.7 years, 2011: 1.6 years). For the year ended December 31, 2013, the total fair value of restricted shares vested was $2.8 million (2012: $3.3 million, 2011: $3.3 million). | |||||||||||
The restricted share award activity during the years ended December 31, 2013 and 2012 was as follows: | |||||||||||
Number of | Weighted | ||||||||||
non-vested | average | ||||||||||
restricted | grant date | ||||||||||
shares | fair value | ||||||||||
Balance at December 31, 2011 | 358,563 | $ | 21.03 | ||||||||
Granted | 148,471 | 24.6 | |||||||||
Vested | (191,136 | ) | 17.34 | ||||||||
Forfeited | (7,492 | ) | 25.36 | ||||||||
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 December 31, 2013 | 328,991 | $ | 24.74 | ||||||||
Employee and Director Stock Options | |||||||||||
For the year ended December 31, 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 | 2011 | |||||||||
Risk free rate | 2.85 | % | 1.5 | % | 2.27 | % | |||||
Estimated volatility | 35 | % | 35 | % | 35 | % | |||||
Expected term (in years) | 10 | 10 | 10 | ||||||||
Dividend yield | 0 | % | 0 | % | 0 | % | |||||
Forfeiture rate | 0 | % | 0 | % | 0 | % | |||||
At the present time, the Board of Directors does not anticipate that any dividends will be declared during the expected term of the options. The Company uses graded vesting for expensing employee stock options. The total compensation cost expensed for the year ended December 31, 2013 related to employee and director stock options was $0.6 million (2012: $0.6 million, 2011: $0.5 million). At December 31, 2013, the total compensation cost related to non-vested options not yet recognized was $0.4 million (2012: $0.5 million, 2011: $0.6 million) to be recognized over a weighted average period of 1.5 years (2012: 1.5 years, 2011: 1.7 years) assuming the employees complete their service period for vesting of the options. | |||||||||||
For the year ended December 31, 2013, 56,500 (2012: 23,000, 2011: 0) stock options were exercised resulting in the issuance of 52,173 (2012: 23,000, 2011: 0) Class A ordinary shares. The intrinsic value of options exercised during the year ended December 31, 2013 was $0.8 million (2012: $0.2 million, 2011: $0.0 million). 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 years ended December 31, 2013 and 2012 was as follows: | |||||||||||
Number of | Weighted | Weighted | |||||||||
options | average | average | |||||||||
exercise | grant date | ||||||||||
price | fair value | ||||||||||
Balance at December 31, 2011 | 1,399,000 | $ | 15.06 | $ | 6.73 | ||||||
Granted | 45,290 | 23.8 | 11.04 | ||||||||
Exercised | (23,000 | ) | 13.85 | 7.13 | |||||||
Forfeited | — | — | — | ||||||||
Expired | — | — | — | ||||||||
Balance at December 31, 2012 | 1,421,290 | 15.36 | 6.87 | ||||||||
Granted | 38,197 | 26.44 | 13.09 | ||||||||
Exercised | (56,500 | ) | 11.44 | 5.7 | |||||||
Forfeited | — | — | — | ||||||||
Expired | — | — | — | ||||||||
Balance at December 31, 2013 | 1,402,987 | $ | 15.82 | $ | 7.08 | ||||||
At December 31, 2013, the weighted-average remaining contractual term for options outstanding was 3.3 years (2012: 4.1 years). | |||||||||||
At December 31, 2013, 1,326,694 (2012: 1,337,323) stock options were exercisable. These options had a weighted-average exercise price of $15.35 (2012: $14.92) and a weighted-average remaining contractual term of 3.0 years (2012: 3.8 years). | |||||||||||
The weighted average grant date fair value of options granted during the year ended December 31, 2013 was $13.09 (2012: $11.04, 2011: $10.32). The aggregate intrinsic value of options outstanding and options exercisable at December 31, 2013 was $25.1 million and $24.4 million, respectively (2012: $12.2 million and $12.1 million, respectively). During the year ended December 31, 2013, 45,871 (2012: 36,323, 2011: 85,000) options vested which had a weighted average grant date fair value of $11.08 (2012: $10.55, 2011: $9.00). | |||||||||||
Employee Restricted Stock Units | |||||||||||
The Company issues 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 year ended December 31, 2013, 5,941 (2012: nil, 2011: 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 three 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 | 5,941 | 24.41 | |||||||||
Vested | — | — | |||||||||
Forfeited | — | — | |||||||||
Balance at December 31, 2013 | 5,941 | $ | 24.41 | ||||||||
For the years ended December 31, 2013, 2012 and 2011, the general and administrative expenses included stock compensation expense (net of forfeitures) of $3.8 million, $3.7 million and $2.9 million, respectively, for the expensing of the fair value of stock options, restricted stocks and RSUs granted to employees and directors. |
NET_INVESTMENT_INCOME
NET INVESTMENT INCOME | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Net Investment Income [Abstract] | ' | ||||||||||||
NET INVESTMENT INCOME | ' | ||||||||||||
NET INVESTMENT INCOME | |||||||||||||
A summary of net investment income (loss) for the years ended December 31, 2013, 2012 and 2011 is as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
($ in thousands) | |||||||||||||
Realized gains | $ | 141,976 | $ | 60,762 | $ | 139,760 | |||||||
Change in unrealized gains | 154,791 | 67,569 | (75,719 | ) | |||||||||
Investment related foreign exchange gains (losses) | 19,305 | 3,682 | (6,953 | ) | |||||||||
Interest and dividend income | 22,265 | 21,131 | 17,528 | ||||||||||
Interest, dividend and other expenses | (47,665 | ) | (38,545 | ) | (30,837 | ) | |||||||
Investment advisor compensation | (72,532 | ) | (35,658 | ) | (20,661 | ) | |||||||
Net investment income | $ | 218,140 | $ | 78,941 | $ | 23,118 | |||||||
Investment returns are calculated monthly and compounded to calculate the annual returns. The resulting actual investment income may vary depending on cash flows into or out of the investment account. For the year ended December 31, 2013, investment income, net of all fees and expenses, resulted in a gain of 19.6% on the investment portfolio. This compares to a gain of 7.1% and a gain of 2.1% reported for the years ended December 31, 2012 and 2011, respectively. |
TAXATION
TAXATION | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
TAXATION | ' | ||||||||||||
TAXATION | |||||||||||||
The Company and Greenlight Re are each domiciled in the Cayman Islands and under current Cayman Islands law, no corporate entity, including the Company and Greenlight Re, is obligated to pay taxes in the Cayman Islands on either income or capital gains. Each of the Company and Greenlight Re intends to conduct all of its operations in a manner that will not cause it to be treated as engaging in a trade or business within the United States and will not cause it to be subject to current U.S. federal income taxation on its net income. However, because there are no definitive standards provided by the Internal Revenue Code, regulations or court decisions as to the specific activities that constitute being engaged in the conduct of a trade or business within the United States, and as any such determination is essentially factual in nature, there can be no assurance that the IRS will not successfully assert that the Company or Greenlight Re is engaged in a trade or business within the U.S. | |||||||||||||
Verdant is incorporated in Delaware, and therefore is subject to taxes in accordance with the U.S. federal rates and regulations prescribed by the IRS. Verdant’s taxable income is taxed at an effective tax rate of 35%. GRIL is incorporated in Ireland and, therefore, is subject to the Irish corporation tax. GRIL is taxed at a rate of 12.5% on its trading income. | |||||||||||||
At December 31, 2013, included in the consolidated balance sheet under other assets is a deferred tax asset of $0.05 million (2012: $0.05 million) resulting solely from the temporary differences in recognition of expenses. An accrual has been recorded for current taxes payable under other liabilities in the consolidated balance sheet at December 31, 2013 for $0.3 million (2012: $0.3 million). Based on the timing of the reversal of the temporary differences and likelihood of generating sufficient taxable income to realize the future tax benefit, management believes it is more likely than not that the deferred tax asset will be fully realized in the future and therefore no valuation allowance has been recorded. The Company has not taken any tax positions that are subject to uncertainty or that are reasonably likely to have a material impact to the Company, Greenlight Re, GRIL or Verdant. | |||||||||||||
The following table sets forth our current and deferred income tax benefit (expense) on a consolidated basis for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
($ in thousands) | |||||||||||||
Current tax (expense) benefit | $ | (534 | ) | $ | (246 | ) | $ | (226 | ) | ||||
Tax recovered | — | 169 | (1) | — | |||||||||
Deferred tax (expense) benefit | (4 | ) | (9 | ) | (21 | ) | |||||||
Income tax (expense) benefit | $ | (538 | ) | $ | (86 | ) | $ | (247 | ) | ||||
(1) During the year ended December 31, 2012, $0.2 million of tax refunds were received by GRIL relating to its operating losses for the 2011 tax year which were carried back and applied against the taxes previously paid for the 2010 tax year. |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
RELATED PARTY TRANSACTIONS | ' |
RELATED PARTY TRANSACTIONS | |
Investment Advisory Agreement | |
As of December 31, 2013, the Company and its reinsurance subsidiaries were party to an investment advisory agreement with DME Advisors (the "prior agreement") under which the Company, its reinsurance subsidiaries and DME Advisors created a joint venture for the purpose of managing certain jointly held assets. Effective January 1, 2014, the prior agreement was amended and restated to replace DME Advisors with DME Advisors, LLC ("DME") as the participant to the joint venture (the "venture agreement"). Simultaneously, the Company, its reinsurance subsidiaries and DME entered into a separate investment advisory agreement with DME Advisors (the "advisory agreement"). DME and DME Advisors are related to the Company and an affiliate of David Einhorn, Chairman of the Company’s Board of Directors. | |
Pursuant to the prior agreement, performance allocation equal to 20% of the net income of the Company’s share of the account managed by DME Advisors was allocated, subject to a loss carry forward provision, to DME Advisors’ account. The loss carry forward provision allowed 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 incurred a loss, until all the losses were recouped and an additional amount equal to 150% of the aggregate investment loss was earned. DME Advisors was not entitled to earn a performance allocation in a year in which the investment portfolio incurred a loss. For the year ended December 31, 2013, the net investment income (see Note 11) was net of performance allocation of $54.2 million (2012: $18.8 million, 2011: $5.4 million). Effective January 1, 2014, pursuant to the venture agreement, the terms of the performance allocation remained unchanged except that the performance allocation is allocated to DME instead of DME Advisors. | |
Additionally, pursuant to the prior agreement, a monthly management fee, equal to 0.125% (1.5% on an annual basis) of the Company’s capital account managed by DME Advisors was payable to DME Advisors. For the year ended December 31, 2013, the net investment income (see Note 11) is net of management fees of $18.3 million (2012: $16.9 million, 2011: $15.2 million). The management fees have been fully paid as of December 31, 2013. Under the advisory agreement, the 0.125% monthly fee will continue to be paid to DME Advisors. | |
Pursuant to the prior agreement, the Company had 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 would 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 year ended December 31, 2013, there were no indemnification payments made by the Company. Pursuant to the advisory agreement and the venture agreement, the Company continues to indemnity DME Advisors and DME. See Note 17 for further details on the venture agreement and the advisory agreement. | |
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 | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | ' | |||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||||||||||||||||||
Letters of Credit | ||||||||||||||||||||||||||||
At December 31, 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 December 31, 2013, an aggregate amount of $379.1 million (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 December 31, 2013, total equity securities, restricted cash, and cash and cash equivalents with a fair value in the aggregate of $410.3 million (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 December 31, 2013 and 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 five year term. Included in the schedule below are the minimum lease payment obligations relating to these leases as of December 31, 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 €0.1 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 December 31, 2013. | ||||||||||||||||||||||||||||
The total rent expense related to leased office space for the year ended December 31, 2013 was $0.5 million, (2012: $0.4 million, 2011: $0.3 million ). | ||||||||||||||||||||||||||||
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 December 31, 2013, the Company had commitments to invest an additional $6.3 million (2012: $20.8 million) in private equity investments. Included in the schedule below are the minimum payment obligations relating to these investments. | ||||||||||||||||||||||||||||
Schedule of Commitments and Contingencies | ||||||||||||||||||||||||||||
The following is a schedule of future minimum payments required under the above commitments: | ||||||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | ||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||
Operating lease obligations | $ | 557 | $ | 557 | $ | 500 | $ | 466 | $ | 233 | $ | — | $ | 2,313 | ||||||||||||||
Specialist service agreement | 700 | 400 | 150 | — | — | — | 1,250 | |||||||||||||||||||||
Private equity and limited partnerships (1) | 6,280 | — | — | — | — | — | 6,280 | |||||||||||||||||||||
$ | 7,537 | $ | 957 | $ | 650 | $ | 466 | $ | 233 | $ | — | $ | 9,843 | |||||||||||||||
(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, 2014. | ||||||||||||||||||||||||||||
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 | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||
SEGMENT REPORTING | ' | |||||||||||||||||||||
SEGMENT REPORTING | ||||||||||||||||||||||
The Company manages its business on the basis of one operating segment, Property and Casualty Reinsurance. | ||||||||||||||||||||||
Substantially all of the business is sourced through reinsurance brokers. The following table sets forth the premiums sourced from brokers who each accounted for more than 10% of the Company's gross written premiums: | ||||||||||||||||||||||
Year ended December 31 | ||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||
Largest broker | $ | 282,337 | 52.7 | % | $ | 242,665 | 56.7 | % | $ | 139,251 | 35 | % | ||||||||||
2nd largest broker | 119,117 | 22.2 | 63,044 | 14.7 | 107,641 | 27.1 | ||||||||||||||||
3rd largest broker | — | — | 48,497 | 11.3 | 50,985 | 12.8 | ||||||||||||||||
4th largest broker | — | — | — | — | 49,398 | 12.4 | ||||||||||||||||
$ | 401,454 | 74.9 | % | $ | 354,206 | 82.7 | % | $ | 347,275 | 87.3 | % | |||||||||||
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 | ||||||||||||||||||||||
Year ended December 31 | ||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||
Property | ||||||||||||||||||||||
Aviation | $ | 168 | — | % | $ | — | — | % | $ | — | — | % | ||||||||||
Commercial lines | 9,999 | 1.9 | 15,110 | 3.5 | 10,019 | 2.5 | ||||||||||||||||
Energy | 659 | 0.1 | — | — | — | — | ||||||||||||||||
Motor physical damage | 57,952 | 10.8 | 60,262 | 14.1 | 7,026 | 1.8 | ||||||||||||||||
Personal lines | 145,807 | 27.2 | 81,662 | 19.1 | 158,482 | 39.9 | ||||||||||||||||
Total Property | 214,585 | 40 | 157,034 | 36.7 | 175,527 | 44.2 | ||||||||||||||||
Casualty | ||||||||||||||||||||||
General liability (1) | (815 | ) | (0.2 | ) | 22,462 | 5.3 | 34,379 | 8.6 | ||||||||||||||
Marine liability | 1,956 | 0.4 | 2,240 | 0.5 | 360 | 0.1 | ||||||||||||||||
Motor liability | 253,698 | 47.4 | 178,204 | 41.7 | 86,937 | 21.9 | ||||||||||||||||
Professional liability | 29,901 | 5.6 | 17,301 | 4 | 20,631 | 5.2 | ||||||||||||||||
Total Casualty | 284,740 | 53.2 | 220,207 | 51.5 | 142,307 | 35.8 | ||||||||||||||||
Specialty | ||||||||||||||||||||||
Financial (1) | 3,498 | 0.7 | (256 | ) | (0.1 | ) | 12,364 | 3.1 | ||||||||||||||
Health | 37,094 | 6.9 | 33,874 | 7.9 | 38,640 | 9.7 | ||||||||||||||||
Workers’ compensation (1) | (4,215 | ) | (0.8 | ) | 16,985 | 4 | 28,821 | 7.2 | ||||||||||||||
Total Specialty | 36,377 | 6.8 | 50,603 | 11.8 | 79,825 | 20 | ||||||||||||||||
$ | 535,702 | 100 | % | $ | 427,844 | 100 | % | $ | 397,659 | 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 | ||||||||||||||||||||||
Year ended December 31 | ||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||
U.S. | $ | 497,044 | 92.8 | % | $ | 399,082 | 93.3 | % | $ | 353,999 | 89 | % | ||||||||||
Worldwide (1) | 9,821 | 1.8 | 11,134 | 2.6 | 22,595 | 5.7 | ||||||||||||||||
Caribbean (2) | (95 | ) | — | 328 | 0.1 | 300 | 0.1 | |||||||||||||||
Europe | 28,932 | 5.4 | 17,300 | 4 | 20,765 | 5.2 | ||||||||||||||||
$ | 535,702 | 100 | % | $ | 427,844 | 100 | % | $ | 397,659 | 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. |
QUARTERLY_FINANCIAL_RESULTS_UN
QUARTERLY FINANCIAL RESULTS (UNAUDITED) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
QUARTERLY FINANCIAL RESULTS (UNAUDITED) | ' | ||||||||||||||||
QUARTERLY FINANCIAL RESULTS (UNAUDITED) | |||||||||||||||||
The following table presents the quarterly financial results for each of the quarters ended during 2013: | |||||||||||||||||
2013 | |||||||||||||||||
Quarter ended | |||||||||||||||||
31-Mar | 30-Jun | 30-Sep | 31-Dec | ||||||||||||||
($ in thousands, except per share amounts) | |||||||||||||||||
Revenues | |||||||||||||||||
Gross premiums written | $ | 126,964 | $ | 135,198 | $ | 148,765 | $ | 124,775 | |||||||||
Gross premiums ceded | 3,978 | (2,514 | ) | (2,389 | ) | (1,855 | ) | ||||||||||
Net premiums written | 130,942 | 132,684 | 146,376 | 122,920 | |||||||||||||
Change in net unearned premium reserves | (21,471 | ) | 316 | 17,515 | 18,617 | ||||||||||||
Net premiums earned | 109,471 | 133,000 | 163,891 | 141,537 | |||||||||||||
Net investment income | 61,139 | 24,247 | 49,448 | 83,306 | |||||||||||||
Other income (expense), net | 389 | (488 | ) | (1 | ) | (850 | ) | ||||||||||
Total revenues | 170,999 | 156,759 | 213,338 | 223,993 | |||||||||||||
Expenses | |||||||||||||||||
Loss and loss adjustment expenses incurred, net | 66,278 | 78,345 | 94,366 | 99,504 | |||||||||||||
Acquisition costs, net | 41,296 | 42,936 | 53,521 | 34,119 | |||||||||||||
General and administrative expenses | 3,760 | 5,943 | 7,085 | 4,930 | |||||||||||||
Total expenses | 111,334 | 127,224 | 154,972 | 138,553 | |||||||||||||
Income before income tax expense | 59,665 | 29,535 | 58,366 | 85,440 | |||||||||||||
Income tax (expense) benefit | (308 | ) | (142 | ) | (90 | ) | 2 | ||||||||||
Net income including non-controlling interest | 59,357 | 29,393 | 58,276 | 85,442 | |||||||||||||
Net loss attributable to non-controlling interest in joint venture | (2,624 | ) | (893 | ) | (1,740 | ) | (1,512 | ) | |||||||||
Net income | $ | 56,733 | $ | 28,500 | $ | 56,536 | $ | 83,930 | |||||||||
Earnings per share | |||||||||||||||||
Basic | $ | 1.54 | $ | 0.77 | $ | 1.53 | $ | 2.27 | |||||||||
Diluted | $ | 1.52 | $ | 0.76 | $ | 1.5 | $ | 2.22 | |||||||||
Weighted average number of ordinary shares used in the determination of earnings per share: | |||||||||||||||||
Basic | 36,730,315 | 36,830,046 | 36,875,716 | 36,908,919 | |||||||||||||
Diluted | 37,424,894 | 37,537,500 | 37,645,053 | 37,746,223 | |||||||||||||
The following table presents the quarterly financial results for each of the quarters ended during 2012: | |||||||||||||||||
2012 | |||||||||||||||||
Quarter ended | |||||||||||||||||
31-Mar | 30-Jun | 30-Sep | 31-Dec | ||||||||||||||
($ in thousands, except per share amounts) | |||||||||||||||||
Revenues | |||||||||||||||||
Gross premiums written | $ | 152,220 | $ | 83,986 | $ | 67,644 | $ | 123,994 | |||||||||
Gross premiums ceded | (10,994 | ) | 4,602 | 30,637 | 30 | ||||||||||||
Net premiums written | 141,226 | 88,588 | 98,281 | 124,024 | |||||||||||||
Change in net unearned premium reserves | (39,637 | ) | 41,426 | 18,276 | (5,470 | ) | |||||||||||
Net premiums earned | 101,589 | 130,014 | 116,557 | 118,554 | |||||||||||||
Net investment income (loss) | 71,606 | (36,896 | ) | 96,450 | (52,219 | ) | |||||||||||
Other income (expense), net | (212 | ) | (236 | ) | 191 | (2 | ) | ||||||||||
Total revenues | 172,983 | 92,882 | 213,198 | 66,333 | |||||||||||||
Expenses | |||||||||||||||||
Loss and loss adjustment expenses incurred, net | 63,307 | 87,337 | 126,624 | 89,333 | |||||||||||||
Acquisition costs, net | 36,025 | 37,905 | 33,820 | 34,971 | |||||||||||||
General and administrative expenses | 4,624 | 4,359 | 4,637 | 3,919 | |||||||||||||
Total expenses | 103,956 | 129,601 | 165,081 | 128,223 | |||||||||||||
Income (loss) before income tax expense | 69,027 | (36,719 | ) | 48,117 | (61,890 | ) | |||||||||||
Income tax (expense) benefit | (262 | ) | 201 | (645 | ) | 620 | |||||||||||
Net income (loss) including non-controlling interest | 68,765 | (36,518 | ) | 47,472 | (61,270 | ) | |||||||||||
Net (income) loss attributable to non-controlling interest in joint venture | (3,632 | ) | 449 | (1,335 | ) | 667 | |||||||||||
Net income (loss) | $ | 65,133 | $ | (36,069 | ) | $ | 46,137 | $ | (60,603 | ) | |||||||
Earnings (loss) per share | |||||||||||||||||
Basic | $ | 1.78 | $ | (0.98 | ) | $ | 1.26 | $ | (1.65 | ) | |||||||
Diluted | $ | 1.75 | $ | (0.98 | ) | $ | 1.23 | $ | (1.65 | ) | |||||||
Weighted average number of ordinary shares used in the determination of earnings and loss per share | |||||||||||||||||
Basic | 36,550,953 | 36,660,267 | 36,678,653 | 36,702,128 | |||||||||||||
Diluted | 37,279,371 | 36,660,267 | 37,402,725 | 36,702,128 | |||||||||||||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended | |
Dec. 31, 2013 | ||
Subsequent Events [Abstract] | ' | |
SUBSEQUENT EVENTS | ' | |
SUBSEQUENT EVENTS | ||
Effective January 1, 2014, the Company, Greenlight Re, GRIL and DME, (each a "Participant" and collectively the "Participants"), entered into a venture agreement for the purpose of managing certain jointly held assets of each of the Participants. The venture agreement amends and restates the prior agreement dated August 31, 2010 among the Company, Greenlight Re, GRIL and DME Advisors. | ||
The venture agreement (i) replaces DME Advisors with DME as a Participant and (2) simultaneously provides for the Participants to enter into an advisory agreement with DME Advisors. | ||
The term of the venture agreement is January 1, 2014 through December 31, 2016. The term of the prior agreement was from August 31, 2010 through December 31, 2013. The venture agreement renews automatically for successive three-year periods unless at least 90 days prior to the end of the then current term, DME notifies the other Participants of its desire to terminate the venture agreement or any other Participant notifies DME of its desire to withdraw from the venture agreement. During the term of the venture agreement, neither the Company, Greenlight Re nor GRIL shall engage an investment advisor other than DME or DME Advisors (or an affiliate of DME) to manage its investable assets (as defined in the venture agreement). Additionally, the Company, Greenlight Re and GRIL have agreed to use commercially reasonable efforts to cause each of their respective current and future subsidiaries to become participants or enter into similar agreements. | ||
Other than the duration, the material terms of the venture agreement are identical to the prior agreement. In particular, pursuant to the venture agreement: | ||
•DME Advisors will receive a monthly management fee based on an annual rate of 1.5% of the capital account balance of each Participant; and | ||
•DME will receive a performance allocation based on the positive performance change in such Participant’s capital account equal to 20% of net profits calculated per annum, subject to a loss carry forward provision. | ||
The loss carry forward provision allows DME to earn a reduced performance allocation of 10% on profits in any year subsequent to the year in which a Participant’s capital account (other than DME) incurs a loss, until all the losses are recouped and an additional amount equal to 150% of the loss is earned. DME is not entitled to a performance allocation in a year in which the investment portfolio incurs a loss. | ||
Each of the Company, Greenlight Re and GRIL has agreed to release DME and its affiliates from, and to indemnify and hold them harmless against, any liability arising out of the venture agreement, subject to certain exceptions. Furthermore, DME has agreed to indemnify the Company, Greenlight Re, and GRIL against any liability incurred in connection with certain actions. | ||
The Company, Greenlight Re or GRIL may withdraw as a Participant under the venture agreement with at least 90 days notice prior to the end of the then current term and prior to the expiration of the venture agreement's term only ‘‘for cause,’’ which the agreement defines as: | ||
• | a material violation of applicable law relating to DME’s or DME Advisors' business; | |
• | DME’s or DME Advisors' gross negligence, willful misconduct or reckless disregard of any of DME's obligations under this agreement or DME Advisors' obligations under the advisory agreement; | |
• | a material breach by DME or DME Advisors of Greenlight Re’s or GRIL's investment guidelines that is not cured within a 15-day period; or | |
• | a material breach by DME or DME Advisors' of its obligations to return and deliver assets as any other Participant may request. | |
In addition, GRIL may withdraw as a Participant under the venture agreement prior to the expiration of its term due to unsatisfactory long term performance of DME or DME Advisors as determined solely by the Board of Directors of GRIL on each anniversary date of the venture agreement. | ||
Additionally, effective January 1, 2014, Greenlight Re, GRIL, DME, and DME Advisors entered into the advisory agreement to provide discretionary advisory services relating to the assets and liabilities of the Participants. Pursuant to the advisory agreement, DME Advisors may formulate the overall investment strategy to be carried out for the Participants, and exercise full discretion in the management of the trading, investment transactions and related borrowing activities of the Participants in order to implement such strategy. The management fee shall be debited against the account of each Participant (other than DME) and paid in cash to DME Advisors on the first day of each month. | ||
Each Participant has agreed to release DME Advisors and its affiliates from, and to indemnify and hold them harmless against, any liability arising out of the investment agreement, subject to certain exceptions such as gross negligence, willful misconduct or reckless disregard of its obligations or uncured breach of the investment guidelines. Furthermore, DME Advisors has agreed to indemnify each of the Participants against any liability incurred in connection with certain actions. |
SCHEDULE_I
SCHEDULE I | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Summary of Investments, Other than Investments in Related Parties [Abstract] | ' | ||||||||||||
SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES | ' | ||||||||||||
SCHEDULE I | |||||||||||||
GREENLIGHT CAPITAL RE, LTD. | |||||||||||||
SUMMARY OF INVESTMENTS — OTHER THAN INVESTMENTS IN RELATED PARTIES | |||||||||||||
AS OF DECEMBER 31, 2013 | |||||||||||||
(expressed in thousands of U.S. dollars) | |||||||||||||
Type of Investment | Cost | Fair Value | Balance | ||||||||||
Sheet Value | |||||||||||||
($ in thousands) | |||||||||||||
Debt instruments, trading, at fair value | $ | 5,877 | $ | 4,312 | $ | 4,312 | |||||||
Equity securities, trading, at fair value | |||||||||||||
Common stocks, listed | 923,594 | 1,256,577 | 1,256,577 | ||||||||||
Exchange traded funds | 50,253 | 25,579 | 25,579 | ||||||||||
Total equity securities, trading, at fair value | 973,847 | 1,282,156 | 1,282,156 | ||||||||||
Total investments, trading | $ | 979,724 | $ | 1,286,468 | $ | 1,286,468 | |||||||
Other investments, at fair value | |||||||||||||
Private and unlisted equities securities | $ | 54,633 | $ | 60,888 | $ | 60,888 | |||||||
Commodities | 45,544 | 46,323 | 46,323 | ||||||||||
Total other investments, at fair value | 100,177 | 107,211 | 107,211 | ||||||||||
Total investments | $ | 1,079,901 | $ | 1,393,679 | $ | 1,393,679 | |||||||
SCHEDULE_II
SCHEDULE II | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | ||||||||||||
CONDENSED FINANCIAL INFORMATION OF REGISTRANT | ' | ||||||||||||
SCHEDULE II | |||||||||||||
GREENLIGHT CAPITAL RE, LTD. | |||||||||||||
CONDENSED FINANCIAL INFORMATION OF REGISTRANT | |||||||||||||
CONDENSED BALANCE SHEETS — PARENT COMPANY ONLY | |||||||||||||
(expressed in thousands of U.S. dollars) | |||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||
($ in thousands) | |||||||||||||
Cash and cash equivalents | $ | 5 | $ | 14 | |||||||||
Investment in subsidiaries | 1,035,423 | 807,148 | |||||||||||
Note receivable | 3,728 | 1,675 | |||||||||||
Due from subsidiaries | 16,247 | 14,241 | |||||||||||
Total assets | $ | 1,055,403 | $ | 823,078 | |||||||||
Liabilities and shareholders’ equity | |||||||||||||
Liabilities | |||||||||||||
Due to subsidiaries | $ | 3,808 | $ | 1,370 | |||||||||
Total liabilities | 3,808 | 1,370 | |||||||||||
Shareholders’ equity | |||||||||||||
Share capital | 3,705 | 3,670 | |||||||||||
Additional paid-in capital | 496,622 | 492,469 | |||||||||||
Retained earnings | 551,268 | 325,569 | |||||||||||
Total shareholders’ equity | 1,051,595 | 821,708 | |||||||||||
Total liabilities and shareholders’ equity | $ | 1,055,403 | $ | 823,078 | |||||||||
GREENLIGHT CAPITAL RE, LTD. | |||||||||||||
CONDENSED FINANCIAL INFORMATION OF REGISTRANT | |||||||||||||
CONDENSED STATEMENTS OF INCOME — PARENT COMPANY ONLY | |||||||||||||
(expressed in thousands of U.S. dollars) | |||||||||||||
Year ended December 31 | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
($ in thousands) | |||||||||||||
Revenue | |||||||||||||
Investment income | $ | 1,100 | $ | 810 | $ | 740 | |||||||
Total revenues | 1,100 | 810 | 740 | ||||||||||
Expenses | |||||||||||||
General and administrative expenses | 3,735 | 3,603 | 2,884 | ||||||||||
Net income (loss) before equity in earnings of consolidated subsidiaries | (2,635 | ) | (2,793 | ) | (2,144 | ) | |||||||
Equity in earnings of consolidated subsidiaries | 228,334 | 17,391 | 8,913 | ||||||||||
Consolidated net income | $ | 225,699 | $ | 14,598 | $ | 6,769 | |||||||
SCHEDULE II (continued) | |||||||||||||
GREENLIGHT CAPITAL RE, LTD. | |||||||||||||
CONDENSED FINANCIAL INFORMATION OF REGISTRANT | |||||||||||||
CONDENSED STATEMENTS OF CASH FLOWS — PARENT COMPANY ONLY | |||||||||||||
(expressed in thousands of U.S. dollars) | |||||||||||||
Year Ended December 31 | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
($ in thousands) | |||||||||||||
Cash provided by (used in) operating activities | |||||||||||||
Net income | $ | 225,699 | $ | 14,598 | $ | 6,769 | |||||||
Adjustments to reconcile net income (loss) to cash provided by operating activities | |||||||||||||
Equity in earnings of consolidated subsidiaries | (228,334 | ) | (17,391 | ) | (8,913 | ) | |||||||
Share-based compensation expense | 3,675 | 3,689 | 2,884 | ||||||||||
Change in | |||||||||||||
Due from subsidiaries | (2,006 | ) | (52 | ) | (1,523 | ) | |||||||
Due to subsidiaries | 2,438 | 587 | 783 | ||||||||||
Total operating activities | 1,472 | 1,431 | — | ||||||||||
Investing activities | |||||||||||||
Change in note receivable | (2,053 | ) | (1,675 | ) | — | ||||||||
Contributed surplus to subsidiaries, net | 59 | (85 | ) | — | |||||||||
Total investing activities | (1,994 | ) | (1,760 | ) | — | ||||||||
Financing activities | |||||||||||||
Net proceeds from exercise of stock options | 513 | 318 | — | ||||||||||
Total financing activities | 513 | 318 | — | ||||||||||
Net (decrease) increase in cash and cash equivalents | (9 | ) | (11 | ) | — | ||||||||
Cash and cash equivalents at beginning of the year | 14 | 25 | 25 | ||||||||||
Cash and cash equivalents at end of the year | $ | 5 | $ | 14 | $ | 25 | |||||||
SCHEDULE_III
SCHEDULE III | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Supplementary Insurance Information [Abstract] | ' | ||||||||||||||||||||||||||||
SUPPLEMENTARY INSURANCE INFORMATION | ' | ||||||||||||||||||||||||||||
SCHEDULE III | |||||||||||||||||||||||||||||
GREENLIGHT CAPITAL RE, LTD. | |||||||||||||||||||||||||||||
SUPPLEMENTARY INSURANCE INFORMATION | |||||||||||||||||||||||||||||
AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2013, 2012 AND 2011 | |||||||||||||||||||||||||||||
(expressed in thousands of U.S. dollars) | |||||||||||||||||||||||||||||
Year | Segment | Deferred | Reserves | Unearned | Net | Net | Net losses, | Amortization | Other | Gross | |||||||||||||||||||
acquisition | for losses | premiums | premiums | investment | and loss | of deferred | operating | premiums | |||||||||||||||||||||
costs, net | and loss | – gross | earned | income (loss) | adjustment | acquisition | expenses | written | |||||||||||||||||||||
adjustment | expenses | costs | |||||||||||||||||||||||||||
expenses | |||||||||||||||||||||||||||||
– gross | |||||||||||||||||||||||||||||
2013 | Property & Casualty | $ | 51,797 | $ | 329,894 | $ | 173,057 | $ | 547,899 | $ | 218,140 | $ | 338,493 | $ | 171,872 | $ | 21,718 | $ | 535,702 | ||||||||||
2012 | Property & Casualty | $ | 59,177 | $ | 356,470 | $ | 188,185 | $ | 466,714 | $ | 78,941 | $ | 366,601 | $ | 142,721 | $ | 17,539 | $ | 427,844 | ||||||||||
2011 | Property & Casualty | $ | 68,725 | $ | 241,279 | $ | 225,735 | $ | 379,775 | $ | 23,118 | $ | 241,690 | $ | 138,751 | $ | 13,892 | $ | 397,659 | ||||||||||
SCHEDULE_IV
SCHEDULE IV | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | ' | ||||||||||||||||||||
SUPPLEMENTARY REINSURANCE INFORMATION | ' | ||||||||||||||||||||
SCHEDULE IV | |||||||||||||||||||||
GREENLIGHT CAPITAL RE, LTD. | |||||||||||||||||||||
SUPPLEMENTARY REINSURANCE INFORMATION | |||||||||||||||||||||
AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2013, 2012 AND 2011 | |||||||||||||||||||||
(expressed in thousands of U.S. dollars) | |||||||||||||||||||||
Year | Segment | Direct gross | Premiums | Premiums | Net amount | Percentage of | |||||||||||||||
premiums | ceded to | assumed from | amount | ||||||||||||||||||
other companies | other companies | assumed to net | |||||||||||||||||||
2013 | Property & Casualty | $ | — | $ | 2,780 | $ | 535,702 | $ | 532,922 | 101 | % | ||||||||||
2012 | Property & Casualty | $ | — | $ | (24,275 | ) | $ | 427,844 | $ | 452,119 | 95 | % | |||||||||
2011 | Property & Casualty | $ | — | $ | 46,920 | $ | 397,659 | $ | 350,739 | 113 | % | ||||||||||
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Reclassifications | ' |
Reclassifications | |
Certain prior period balances have been reclassified to conform to the current period presentation. The reclassifications resulted in no changes to net income or retained earnings for any of the periods presented. | |
Use of Estimates | ' |
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. | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents | |
Cash and cash equivalents consist of cash and certain short-term, highly liquid investments with original maturity dates of three months or less. | |
Restricted Cash and Cash Equivalents | ' |
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 6). 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. | |
Premium Revenue Recognition | ' |
Premium Revenue Recognition | |
The Company accounts for reinsurance contracts in accordance with U.S. GAAP. In the event that a reinsurance contract does not transfer sufficient risk, deposit accounting is used and the contract is reported as a deposit liability. | |
The Company writes excess of loss contracts as well as quota share contracts. The Company estimates the ultimate premiums for the entire contract period. These estimates are based on information received from the ceding companies and estimates from actuarial pricing models used by the Company. For excess of loss contracts, the total ultimate estimated premiums are recorded as premiums written at the inception of the contract. For quota share contracts, the premiums are recorded as written based on cession statements from cedents which typically are received monthly or quarterly depending on terms specified in each contract. For any reporting lag, premiums written are estimated based on the portion of the ultimate estimated premiums relating to the risks underwritten during the lag period. | |
Changes in premium estimates, including premium receivable on both excess of loss and quota share contracts, are expected and may result in significant adjustments in any period. These estimates change over time as additional information regarding the underlying business volume is obtained. Any subsequent adjustments arising on such estimates are recorded in the period in which they are determined. | |
Certain contracts allow for reinstatement premiums in the event of a full limit loss prior to the expiry of a contract. A reinstatement premium is not due until there is a full limit loss event and therefore, in accordance with U.S. GAAP, the Company records a reinstatement premium as written only in the event that a client incurs a full limit loss on the contract and the contract allows for a reinstatement of coverage upon payment of an additional premium. For catastrophe contracts which contractually require the payment of a reinstatement premium equal to or greater than the original premium upon the occurrence of a full limit loss, the reinstatement premiums are earned over the original contract period. Reinstatement premiums that are contractually calculated on a pro-rata basis of the original premiums, are earned over the remaining coverage period. | |
Certain contracts provide for a penalty to be paid if the contract is terminated and cancelled prior to its expiration term. Cancellation penalties are recognized in the period the notice of cancellation is received and are recorded in the consolidated statements of income under other income (expense). | |
Premiums written are generally recognized as earned over the contract period in proportion to the period of risk covered. Unearned premiums consist of the unexpired portion of reinsurance provided. | |
Reinsurance Premiums Ceded | ' |
Reinsurance Premiums Ceded | |
The Company reduces the risk of future losses on business assumed by reinsuring certain risks and exposures with other reinsurers (retrocessionaires). The Company remains liable to the extent that any retrocessionaire fails to meet its obligations and to the extent the Company does not hold sufficient security for their unpaid obligations. | |
Ceded premiums are written during the period in which the risks incept and are expensed over the contract period in proportion to the period of protection. Unearned premiums ceded consist of the unexpired portion of reinsurance obtained. | |
Deferred Acquisition Costs | ' |
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 December 31, 2013 and 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 December 31, 2013, $10.5 million (2012: $9.6 million) of profit commission reserves were included in reinsurance balances payable on the consolidated balance sheets. For the year ended December 31, 2013, $3.7 million (2012: $1.5 million and 2011: $3.9 million) of net profit commission expenses were included in acquisition costs, respectively, on the consolidated statements of income. | |
Funds Withheld | ' |
Funds Withheld | |
Funds withheld include reinsurance balances retained from retrocessionaires as security for a period of time in accordance with the contract terms. Any interest expense that the Company incurs during the period these funds are withheld, are included under net investment income in the consolidated statements of income. | |
Loss and Loss Adjustment Expense Reserves and Recoverable | ' |
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 | |
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. | |
Deposit Assets and Liabilities | ' |
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 consolidated balance sheets. Amortized gains are recorded in the consolidated statements of income as other income. | |
Fixed Assets | ' |
Fixed Assets | |
Fixed assets are included in other assets on the 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. 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. | |
Financial Instruments | ' |
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 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 | ' |
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 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 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 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). | |
Share-based Compensation | ' |
Share-Based Compensation | |
The Company has established a stock incentive plan for directors, employees and consultants. In addition, the Company granted share purchase options in 2004 to a service provider in exchange for services received (see Note 10). | |
U.S. GAAP requires the Company to recognize share-based compensation transactions using the fair value at the grant date of the award. The Company measures compensation for restricted shares and restricted stock units ("RSUs") based on the price of the Company’s common shares at the grant date and the expense is recognized on a straight line basis over the vesting period. Share purchase options are expensed over the vesting period on a graded vesting basis. | |
Determining the fair value of share purchase options at the grant date requires significant estimation and judgment. The Company uses an option-pricing model (Black-Scholes option pricing model) to assist in the calculation of fair value for share purchase options. The Company's shares have not been publicly traded for a sufficient length of time to solely use the Company's performance to reasonably estimate the expected volatility. Therefore, when estimating the expected volatility, the Company takes into consideration the historical volatility of similar entities. The Company considers factors such as an entity's industry, stage of life cycle, size and financial leverage when selecting similar entities. The Company uses a sample peer group of companies in the reinsurance industry as well as the Company’s own historical volatility in determining the expected volatility. Additionally, the Company uses the full life of the options, ten years, as the estimated term of the options, and has assumed no forfeitures and no dividends paid during the life of the options. | |
Service provider share purchase options are expensed in the consolidated statements of income when services are rendered. For share purchase options issued under the employee stock incentive plan, compensation cost is calculated and expensed over the vesting periods on a graded vesting basis (see Note 10). | |
If actual results differ significantly from these estimates and assumptions, particularly in relation to the Company’s estimation of volatility which requires the most judgment, share-based compensation expense, primarily with respect to future share-based awards, could be materially impacted. | |
Foreign Exchange | ' |
Foreign Exchange | |
The reporting and functional currency of the Company and all its subsidiaries is the U.S. dollar. Transactions in foreign currencies are recorded in U.S. dollars at the exchange rates in effect on the transaction date. Monetary assets and liabilities in foreign currencies at the balance sheet date are translated at the exchange rate in effect at the balance sheet date and translation exchange gains and losses, if any, are included in the consolidated statements of income. | |
Other Assets | ' |
Other Assets | |
Other assets consist primarily of investment income receivable, prepaid expenses, fixed assets and deferred tax assets. | |
Other Liabilities | ' |
Other Liabilities | |
Other liabilities consist primarily of dividends payable on securities sold, not yet purchased, and employee bonus accruals. At December 31, 2013, other liabilities included accrued bonus of $4.3 million (2012: $2.8 million). Under the Company's bonus program, each employee’s target bonus consists of two components: a discretionary component based on a qualitative assessment of each employee’s performance and a quantitative component based on the return on deployed equity (‘‘RODE”) for each underwriting year relating to reinsurance operations. The qualitative portion of an employee’s annual bonus is accrued at each employee's target amount, which may differ significantly from the actual amount approved and awarded annually by the Compensation Committee. The quantitative portion of each employee’s annual bonus is accrued based on the expected RODE for each underwriting year and adjusted for changes in the expected RODE and actual investment return each quarter until all losses are settled and the underwriting year is declared closed. The quantitative bonus is calculated and paid in annual installments between two to five years from the end of the fiscal year in which the business was underwritten. Any further changes are incorporated into the following open underwriting year. The expected RODE calculation utilizes proprietary models which require significant estimation and judgment. Actual RODE may vary significantly from the expected RODE and any adjustments to the quantitative bonus estimates, which may be material, are recorded in the period in which they are determined. | |
Also included in other liabilities are accruals for income taxes payable, professional fees and other general expenses. | |
Non-controlling Interest | ' |
Non-controlling Interest | |
Non-controlling interest in joint venture on the consolidated balance sheets represents DME Advisors, LP’s (‘‘DME Advisors”) share of assets in the joint venture whereby DME Advisors manages jointly held assets as disclosed in Note 13. DME Advisors’ share of investment income or loss is included in the consolidated statements of income as income attributable to non-controlling interest in joint venture. | |
Comprehensive Income (Loss) | ' |
Comprehensive Income (Loss) | |
The Company has no other comprehensive income (loss), other than the net income (loss) disclosed in the consolidated statements of income. | |
Earnings Per Share | ' |
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 RSUs 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. | |
Taxation | ' |
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 ("IRS"). 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. | |
Segment Information | ' |
Segment Information | |
Under U.S. GAAP, operating segments are based on the internal information that management uses for allocating resources and assessing performance as the source of the Company's reportable segments. | |
The Company manages its business on the basis of one operating segment, Property and Casualty Reinsurance, in accordance with the qualitative and quantitative criteria established by U.S. GAAP. | |
Recently Adopted Accounting Standards | ' |
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) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||
Property, Plant and Equipment | ' | |||||||||||
At December 31, 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 | $ | 556 | $ | (206 | ) | $ | 350 | |||||
Furniture and fixtures | 620 | (340 | ) | 280 | ||||||||
Leasehold improvements | 2,002 | (703 | ) | 1,299 | ||||||||
Total | $ | 3,178 | $ | (1,249 | ) | $ | 1,929 | |||||
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 | |||||
Schedule of Weighted Average Number of Shares | ' | |||||||||||
Year ended December 31 | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Weighted average shares outstanding - basic | 36,838,128 | 36,702,128 | 36,548,466 | |||||||||
Effect of dilutive service provider share-based awards | 144,726 | 147,036 | 170,056 | |||||||||
Effect of dilutive employee and director share-based awards | 602,313 | 512,174 | 567,932 | |||||||||
Weighted average share outstanding - diluted | 37,585,167 | 37,361,338 | 37,286,454 | |||||||||
Anti-dilutive stock options outstanding | 218,197 | 180,000 | 180,000 | |||||||||
FINANCIAL_INSTRUMENTS_Tables
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Financial Instruments [Abstract] | ' | ||||||||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring | ' | ||||||||||||||||||||
The following table presents the Company’s investments, categorized by the level of the fair value hierarchy as of December 31, 2013: | |||||||||||||||||||||
Fair value measurements as of December 31, 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 | $ | — | $ | 3,785 | $ | 527 | $ | 4,312 | |||||||||||||
Listed equity securities | 1,274,920 | 7,236 | — | 1,282,156 | |||||||||||||||||
Commodities | 60,888 | — | — | 60,888 | |||||||||||||||||
Private and unlisted equity securities | — | — | 46,323 | 46,323 | |||||||||||||||||
Financial contracts receivable | 4,500 | 99,548 | — | 104,048 | |||||||||||||||||
$ | 1,340,308 | $ | 110,569 | $ | 46,850 | $ | 1,497,727 | ||||||||||||||
Liabilities: | |||||||||||||||||||||
Listed equity securities, sold not yet purchased | $ | (917,123 | ) | $ | — | $ | — | $ | (917,123 | ) | |||||||||||
Debt instruments, sold not yet purchased | — | (194,567 | ) | — | (194,567 | ) | |||||||||||||||
Financial contracts payable | — | (18,857 | ) | — | (18,857 | ) | |||||||||||||||
$ | (917,123 | ) | $ | (213,424 | ) | $ | — | $ | (1,130,547 | ) | |||||||||||
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 | ) | |||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | ' | ||||||||||||||||||||
The following table presents the reconciliation of the balances for all investments measured at fair value using significant unobservable inputs (Level 3) for the year ended December 31, 2012: | |||||||||||||||||||||
2012 | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
Debt instruments | Private and unlisted equity securities | Financial contracts receivable | Total | ||||||||||||||||||
($ in thousands) | |||||||||||||||||||||
Beginning balance | $ | 465 | $ | 31,179 | $ | 263 | $ | 31,907 | |||||||||||||
Purchases | — | 11,518 | — | 11,518 | |||||||||||||||||
Sales | (1 | ) | (1,754 | ) | — | (1,755 | ) | ||||||||||||||
Total realized and unrealized gains (losses) and amortization included in earnings, net | (204 | ) | 2,834 | (263 | ) | 2,367 | |||||||||||||||
Transfers into Level 3 | — | — | — | — | |||||||||||||||||
Transfers out of Level 3 | — | (4,976 | ) | — | (4,976 | ) | |||||||||||||||
Ending balance | $ | 260 | $ | 38,801 | $ | — | $ | 39,061 | |||||||||||||
The following table presents the reconciliation of the balances for all investments measured at fair value using significant unobservable inputs (Level 3) for the year ended December 31, 2013: | |||||||||||||||||||||
2013 | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
Debt instruments | Private and unlisted equity securities | Total | |||||||||||||||||||
($ in thousands) | |||||||||||||||||||||
Beginning balance | $ | 260 | $ | 38,801 | $ | 39,061 | |||||||||||||||
Purchases | 9,224 | 38,086 | 47,310 | ||||||||||||||||||
Sales | (9,224 | ) | (7,252 | ) | (16,476 | ) | |||||||||||||||
Total realized and unrealized gains (losses) and amortization included in earnings, net | 267 | 1,269 | 1,536 | ||||||||||||||||||
Transfers into Level 3 | — | — | — | ||||||||||||||||||
Transfers out of Level 3 | — | (24,581 | ) | (24,581 | ) | ||||||||||||||||
Ending balance | $ | 527 | $ | 46,323 | $ | 46,850 | |||||||||||||||
Trading Securities (and Certain Trading Assets) | ' | ||||||||||||||||||||
At December 31, 2013, the following investments were included in debt instruments, trading: | |||||||||||||||||||||
2013 | Cost/ | Unrealized | Unrealized | Fair | |||||||||||||||||
amortized | gains | losses | value | ||||||||||||||||||
cost | |||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||
Corporate debt – U.S. | $ | 2,116 | $ | — | $ | (1,589 | ) | $ | 527 | ||||||||||||
Corporate debt – Non U.S. | 3,761 | 115 | (91 | ) | 3,785 | ||||||||||||||||
Total debt instruments | $ | 5,877 | $ | 115 | $ | (1,680 | ) | $ | 4,312 | ||||||||||||
At December 31, 2012, the following investments were included in debt instruments, trading: | |||||||||||||||||||||
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 | ||||||||||||
At December 31, 2013, the following long positions were included in investment in equity securities, trading: | |||||||||||||||||||||
2013 | Cost | Unrealized | Unrealized | Fair | |||||||||||||||||
gains | losses | value | |||||||||||||||||||
($ in thousands) | |||||||||||||||||||||
Equities – listed | $ | 923,594 | $ | 361,695 | $ | (28,712 | ) | $ | 1,256,577 | ||||||||||||
Exchange traded funds | 50,253 | — | (24,674 | ) | 25,579 | ||||||||||||||||
$ | 973,847 | $ | 361,695 | $ | (53,386 | ) | $ | 1,282,156 | |||||||||||||
At December 31, 2012, the following long positions were included in investment in equity 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 | |||||||||||||
Investments Classified by Contractual Maturity Date | ' | ||||||||||||||||||||
The maturity distribution for debt instruments held at December 31, 2013 and 2012, was as follows: | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Cost/ | Fair | Cost/ | Fair | ||||||||||||||||||
amortized | value | amortized | value | ||||||||||||||||||
cost | cost | ||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||
Within one year | $ | — | $ | — | $ | — | $ | — | |||||||||||||
From one to five years | — | — | — | — | |||||||||||||||||
From five to ten years | — | — | — | — | |||||||||||||||||
More than ten years | 5,877 | 4,312 | 3,496 | 1,763 | |||||||||||||||||
$ | 5,877 | $ | 4,312 | $ | 3,496 | $ | 1,763 | ||||||||||||||
Investment Holdings, Other than Securities | ' | ||||||||||||||||||||
At December 31, 2013, the following securities were included in other investments: | |||||||||||||||||||||
2013 | Cost | Unrealized | Unrealized | Fair | |||||||||||||||||
gains | losses | value | |||||||||||||||||||
($ in thousands) | |||||||||||||||||||||
Commodities | $ | 54,633 | $ | 6,255 | $ | — | $ | 60,888 | |||||||||||||
Private and unlisted equity securities | 45,544 | 8,170 | (7,391 | ) | 46,323 | ||||||||||||||||
$ | 100,177 | $ | 14,425 | $ | (7,391 | ) | $ | 107,211 | |||||||||||||
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 | |||||||||||||
Investments Sold, Not yet Purchased | ' | ||||||||||||||||||||
At December 31, 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 | $ | (836,708 | ) | $ | 57,854 | $ | (130,621 | ) | $ | (909,475 | ) | ||||||||||
Exchange traded funds | (6,318 | ) | — | (1,330 | ) | (7,648 | ) | ||||||||||||||
Corporate debt – U.S. | (8,135 | ) | 2 | (235 | ) | (8,368 | ) | ||||||||||||||
Sovereign debt – Non U.S. | (170,375 | ) | — | (15,824 | ) | (186,199 | ) | ||||||||||||||
$ | (1,021,536 | ) | $ | 57,856 | $ | (148,010 | ) | $ | (1,111,690 | ) | |||||||||||
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 | ) | |||||||||||
Schedule of Derivative Instruments | ' | ||||||||||||||||||||
At December 31, 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 | |||||||||||||||||||||
Forwards | JPY | 71,162 | $ | 383 | |||||||||||||||||
Futures | JPY/USD | 117,494 | 4,500 | ||||||||||||||||||
Interest rate options | USD | 391,559 | 26 | ||||||||||||||||||
Put options | USD | 217,359 | 12,923 | ||||||||||||||||||
Total return swaps – equities | EUR/GBP/HKD/USD | 178,988 | 83,325 | ||||||||||||||||||
Warrants and rights on listed equities | EUR | 5,237 | 2,891 | ||||||||||||||||||
Total financial contracts receivable, at fair value | $ | 104,048 | |||||||||||||||||||
Financial contracts payable | |||||||||||||||||||||
Credit default swaps, purchased – corporate debt | USD | 273,877 | $ | (3,625 | ) | ||||||||||||||||
Credit default swaps, purchased – sovereign debt | USD | 251,467 | (3,980 | ) | |||||||||||||||||
Forwards | KRW | 32,100 | (58 | ) | |||||||||||||||||
Total return swaps – equities | EUR/GBP/HKD | 36,983 | (11,194 | ) | |||||||||||||||||
Total financial contracts payable, at fair value | $ | (18,857 | ) | ||||||||||||||||||
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 | ) | |||||||||||||||||
Warrants and rights on listed equities | USD/CAD | — | — | ||||||||||||||||||
Total financial contracts payable, at fair value | $ | (19,637 | ) | ||||||||||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | ' | ||||||||||||||||||||
During the years ended December 31, 2013, 2012 and 2011, 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 | |||||||||||||||||||
in income | |||||||||||||||||||||
Year ended December 31 | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
($ in thousands) | |||||||||||||||||||||
Credit default swaps, issued – corporate debt | Net investment income (loss) | $ | — | $ | — | $ | 4,785 | ||||||||||||||
Credit default swaps, purchased – corporate debt | Net investment income (loss) | (3,552 | ) | (7,342 | ) | 1,042 | |||||||||||||||
Credit default swaps, purchased – sovereign debt | Net investment income (loss) | (1,087 | ) | (5,086 | ) | 14,957 | |||||||||||||||
Currency forwards | Net investment income (loss) | 11,209 | — | (3,612 | ) | ||||||||||||||||
Futures | Net investment income (loss) | 12,504 | (13,064 | ) | (2,365 | ) | |||||||||||||||
Interest rate options | Net investment income (loss) | (82 | ) | (2,127 | ) | (9,625 | ) | ||||||||||||||
Options, warrants, and rights | Net investment income (loss) | 21,446 | (8,988 | ) | (29,185 | ) | |||||||||||||||
Total return swaps – equities | Net investment income (loss) | 85,638 | (13,176 | ) | 8,094 | ||||||||||||||||
Weather derivative swap | Other income (expense), net | — | (263 | ) | (451 | ) | |||||||||||||||
Total | $ | 126,076 | $ | (50,046 | ) | $ | (16,360 | ) | |||||||||||||
Derivatives volume of activities | ' | ||||||||||||||||||||
For the year ended December 31, 2013, the Company’s volume of derivative activities (based on notional amounts) was as follows: | |||||||||||||||||||||
2013 | Year ended December 31 | ||||||||||||||||||||
Derivatives not designated as hedging instruments | Entered | Exited | |||||||||||||||||||
($ in thousands) | |||||||||||||||||||||
Currency forwards | $ | 423,443 | $ | 115,884 | |||||||||||||||||
Futures | 401,672 | 292,529 | |||||||||||||||||||
Interest rate options (1) | — | 376,385 | |||||||||||||||||||
Options (1) | 930,410 | 965,991 | |||||||||||||||||||
Total return swaps | 194,343 | 88,404 | |||||||||||||||||||
Total | $ | 1,949,868 | $ | 1,839,193 | |||||||||||||||||
(1) Exited amount excludes options which expired or were exercised during the period. | |||||||||||||||||||||
For the year ended December 31, 2012, the Company’s volume of derivative activities (based on notional amounts) was as follows: | |||||||||||||||||||||
2012 | Year ended December 31 | ||||||||||||||||||||
Derivatives not designated as hedging instruments | Entered | Exited | |||||||||||||||||||
($ in thousands) | |||||||||||||||||||||
Credit default swaps | $ | — | $ | 45,966 | |||||||||||||||||
Futures | 1,033,604 | 1,208,785 | |||||||||||||||||||
Options (1) | 818,319 | 436,033 | |||||||||||||||||||
Total return swaps | 67,755 | 61,535 | |||||||||||||||||||
Weather derivative swap | — | 5,000 | |||||||||||||||||||
Total | $ | 1,919,678 | $ | 1,757,319 | |||||||||||||||||
(1) Exited amount excludes options which expired or were exercised during the period. | |||||||||||||||||||||
Offsetting assets and liabilities | ' | ||||||||||||||||||||
As of December 31, 2013, the gross and net amounts of derivative instruments and the cash collateral applicable to derivative instruments were as follows: | |||||||||||||||||||||
31-Dec-13 | (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 | $ | 104,048 | $ | — | $ | 104,048 | $ | (45,168 | ) | $ | 58,880 | ||||||||||
Financial contracts payable | (18,857 | ) | — | (18,857 | ) | 34,859 | 16,002 | ||||||||||||||
Securities sold, not yet purchased | (1,111,690 | ) | — | (1,111,690 | ) | 1,111,690 | — | ||||||||||||||
As of December 31, 2012, the gross and net amounts of derivative instruments and the cash collateral applicable to derivative instruments were as follows: | |||||||||||||||||||||
31-Dec-12 | (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 | — | ||||||||||||||
CASH_AND_CASH_EQUIVALENTS_Tabl
CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Cash and Cash Equivalents [Abstract] | ' | ||||||||
Schedule of Cash and Cash Equivalents | ' | ||||||||
2013 | 2012 | ||||||||
($ in thousands) | |||||||||
Cash at banks | $ | 3,674 | $ | 7,561 | |||||
Cash held with brokers | 48 | 14,329 | |||||||
Total cash and cash equivalents | $ | 3,722 | $ | 21,890 | |||||
RESTRICTED_CASH_AND_CASH_EQUIV1
RESTRICTED CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Cash and Cash Equivalents [Abstract] | ' | ||||||||
Schedule of Restricted Cash and Cash Equivalents | ' | ||||||||
2013 | 2012 | ||||||||
($ in thousands) | |||||||||
Cash held by prime brokers relating to securities sold, not yet purchased | $ | 1,111,690 | $ | 910,003 | |||||
Cash collateral relating to letters of credit issued | 202,248 | 252,748 | |||||||
Cash and cash equivalents held by swap counterparties | 20,136 | 44,086 | |||||||
Total restricted cash and cash equivalents | $ | 1,334,074 | $ | 1,206,837 | |||||
LOSS_AND_LOSS_ADJUSTMENT_EXPEN1
LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Insurance Loss Reserves [Abstract] | ' | ||||||||||||
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense | ' | ||||||||||||
A summary of changes in outstanding loss and loss adjustment expense reserves is as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
($ in thousands) | |||||||||||||
Gross balance at January 1 | $ | 356,470 | $ | 241,279 | $ | 186,467 | |||||||
Less: Losses recoverable | (34,451 | ) | (29,758 | ) | (11,976 | ) | |||||||
Net balance at January 1 | 322,019 | 211,521 | 174,491 | ||||||||||
Incurred losses related to: | |||||||||||||
Current year | 344,613 | 309,703 | 215,675 | ||||||||||
Prior years | (6,120 | ) | 56,898 | 26,015 | |||||||||
Total incurred | 338,493 | 366,601 | 241,690 | ||||||||||
Paid losses related to: | |||||||||||||
Current year | (177,871 | ) | (130,717 | ) | (81,732 | ) | |||||||
Prior years | (170,018 | ) | (125,767 | ) | (122,898 | ) | |||||||
Total paid | (347,889 | ) | (256,484 | ) | (204,630 | ) | |||||||
Foreign currency revaluation | 442 | 381 | (30 | ) | |||||||||
Net balance at December 31 | 313,065 | 322,019 | 211,521 | ||||||||||
Add: Losses recoverable | 16,829 | 34,451 | 29,758 | ||||||||||
Gross balance at December 31 | $ | 329,894 | $ | 356,470 | $ | 241,279 | |||||||
Component of Loss and Loss Adjustment Expense Reserves | ' | ||||||||||||
At December 31, 2013 and 2012, loss and loss adjustment expense reserves were comprised of the following: | |||||||||||||
2013 | 2012 | ||||||||||||
($ in thousands) | |||||||||||||
Case reserves | $ | 137,825 | $ | 140,674 | |||||||||
IBNR | 192,069 | 215,796 | |||||||||||
Total | $ | 329,894 | $ | 356,470 | |||||||||
SHARE_CAPITAL_Tables
SHARE CAPITAL (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||
Schedule of Common Stock Outstanding Roll Forward | ' | ||||||||||||||||||
The following table is a summary of voting ordinary shares issued and outstanding: | |||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||
Class A | Class B | Class A | Class B | Class A | Class B | ||||||||||||||
Balance – beginning of year | 30,447,179 | 6,254,949 | 30,283,200 | 6,254,949 | 30,200,835 | 6,254,949 | |||||||||||||
Issue of ordinary shares, net of forfeitures | 344,686 | — | 163,979 | — | 82,365 | — | |||||||||||||
Balance – end of year | 30,791,865 | 6,254,949 | 30,447,179 | 6,254,949 | 30,283,200 | 6,254,949 | |||||||||||||
SHAREBASED_COMPENSATION_Tables
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | ' | ||||||||||
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 | 2011 | |||||||||
Risk free rate | 2.85 | % | 1.5 | % | 2.27 | % | |||||
Estimated volatility | 35 | % | 35 | % | 35 | % | |||||
Expected term (in years) | 10 | 10 | 10 | ||||||||
Dividend yield | 0 | % | 0 | % | 0 | % | |||||
Forfeiture rate | 0 | % | 0 | % | 0 | % | |||||
Schedule of Share-based Compensation, Stock Options, Activity | ' | ||||||||||
Employee and director stock option activity during the years ended December 31, 2013 and 2012 was as follows: | |||||||||||
Number of | Weighted | Weighted | |||||||||
options | average | average | |||||||||
exercise | grant date | ||||||||||
price | fair value | ||||||||||
Balance at December 31, 2011 | 1,399,000 | $ | 15.06 | $ | 6.73 | ||||||
Granted | 45,290 | 23.8 | 11.04 | ||||||||
Exercised | (23,000 | ) | 13.85 | 7.13 | |||||||
Forfeited | — | — | — | ||||||||
Expired | — | — | — | ||||||||
Balance at December 31, 2012 | 1,421,290 | 15.36 | 6.87 | ||||||||
Granted | 38,197 | 26.44 | 13.09 | ||||||||
Exercised | (56,500 | ) | 11.44 | 5.7 | |||||||
Forfeited | — | — | — | ||||||||
Expired | — | — | — | ||||||||
Balance at December 31, 2013 | 1,402,987 | $ | 15.82 | $ | 7.08 | ||||||
Restricted Stock | ' | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | ' | ||||||||||
The restricted share award activity during the years ended December 31, 2013 and 2012 was as follows: | |||||||||||
Number of | Weighted | ||||||||||
non-vested | average | ||||||||||
restricted | grant date | ||||||||||
shares | fair value | ||||||||||
Balance at December 31, 2011 | 358,563 | $ | 21.03 | ||||||||
Granted | 148,471 | 24.6 | |||||||||
Vested | (191,136 | ) | 17.34 | ||||||||
Forfeited | (7,492 | ) | 25.36 | ||||||||
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 December 31, 2013 | 328,991 | $ | 24.74 | ||||||||
RSUs | ' | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | ' | ||||||||||
Number of | Weighted | ||||||||||
non-vested | average | ||||||||||
RSUs | grant date | ||||||||||
fair value | |||||||||||
Balance at December 31, 2012 | — | $ | — | ||||||||
Granted | 5,941 | 24.41 | |||||||||
Vested | — | — | |||||||||
Forfeited | — | — | |||||||||
Balance at December 31, 2013 | 5,941 | $ | 24.41 | ||||||||
NET_INVESTMENT_INCOME_Tables
NET INVESTMENT INCOME (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Net Investment Income [Abstract] | ' | ||||||||||||
Net Investment Income (Loss) | ' | ||||||||||||
A summary of net investment income (loss) for the years ended December 31, 2013, 2012 and 2011 is as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
($ in thousands) | |||||||||||||
Realized gains | $ | 141,976 | $ | 60,762 | $ | 139,760 | |||||||
Change in unrealized gains | 154,791 | 67,569 | (75,719 | ) | |||||||||
Investment related foreign exchange gains (losses) | 19,305 | 3,682 | (6,953 | ) | |||||||||
Interest and dividend income | 22,265 | 21,131 | 17,528 | ||||||||||
Interest, dividend and other expenses | (47,665 | ) | (38,545 | ) | (30,837 | ) | |||||||
Investment advisor compensation | (72,532 | ) | (35,658 | ) | (20,661 | ) | |||||||
Net investment income | $ | 218,140 | $ | 78,941 | $ | 23,118 | |||||||
TAXATION_Tables
TAXATION (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Schedule of Components of Income Tax Benefit (Expense) | ' | ||||||||||||
The following table sets forth our current and deferred income tax benefit (expense) on a consolidated basis for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
($ in thousands) | |||||||||||||
Current tax (expense) benefit | $ | (534 | ) | $ | (246 | ) | $ | (226 | ) | ||||
Tax recovered | — | 169 | (1) | — | |||||||||
Deferred tax (expense) benefit | (4 | ) | (9 | ) | (21 | ) | |||||||
Income tax (expense) benefit | $ | (538 | ) | $ | (86 | ) | $ | (247 | ) | ||||
(1) During the year ended December 31, 2012, $0.2 million of tax refunds were received by GRIL relating to its operating losses for the 2011 tax year which were carried back and applied against the taxes previously paid for the 2010 tax year. |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||||||||||||||||||
Schedule of Line of Credit Facilities | ' | |||||||||||||||||||||||||||
At December 31, 2013, the Company had the following letter of credit facilities, which automatically renew each year unless terminated by either party in accordance with the required notice period: | ||||||||||||||||||||||||||||
Facility | Termination Date | Notice period required for termination | ||||||||||||||||||||||||||
($ 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 | |||||||||||||||||||||||||||
Contractual Obligation, Fiscal Year Maturity Schedule | ' | |||||||||||||||||||||||||||
The following is a schedule of future minimum payments required under the above commitments: | ||||||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | ||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||
Operating lease obligations | $ | 557 | $ | 557 | $ | 500 | $ | 466 | $ | 233 | $ | — | $ | 2,313 | ||||||||||||||
Specialist service agreement | 700 | 400 | 150 | — | — | — | 1,250 | |||||||||||||||||||||
Private equity and limited partnerships (1) | 6,280 | — | — | — | — | — | 6,280 | |||||||||||||||||||||
$ | 7,537 | $ | 957 | $ | 650 | $ | 466 | $ | 233 | $ | — | $ | 9,843 | |||||||||||||||
(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, 2014. |
SEGMENT_REPORTING_Tables
SEGMENT REPORTING (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||
Schedule of Revenue by Major Customers by Reporting Segments | ' | |||||||||||||||||||||
The following table sets forth the premiums sourced from brokers who each accounted for more than 10% of the Company's gross written premiums: | ||||||||||||||||||||||
Year ended December 31 | ||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||
Largest broker | $ | 282,337 | 52.7 | % | $ | 242,665 | 56.7 | % | $ | 139,251 | 35 | % | ||||||||||
2nd largest broker | 119,117 | 22.2 | 63,044 | 14.7 | 107,641 | 27.1 | ||||||||||||||||
3rd largest broker | — | — | 48,497 | 11.3 | 50,985 | 12.8 | ||||||||||||||||
4th largest broker | — | — | — | — | 49,398 | 12.4 | ||||||||||||||||
$ | 401,454 | 74.9 | % | $ | 354,206 | 82.7 | % | $ | 347,275 | 87.3 | % | |||||||||||
Schedule of Segment Reporting Information, by Segment | ' | |||||||||||||||||||||
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 | ||||||||||||||||||||||
Year ended December 31 | ||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||
Property | ||||||||||||||||||||||
Aviation | $ | 168 | — | % | $ | — | — | % | $ | — | — | % | ||||||||||
Commercial lines | 9,999 | 1.9 | 15,110 | 3.5 | 10,019 | 2.5 | ||||||||||||||||
Energy | 659 | 0.1 | — | — | — | — | ||||||||||||||||
Motor physical damage | 57,952 | 10.8 | 60,262 | 14.1 | 7,026 | 1.8 | ||||||||||||||||
Personal lines | 145,807 | 27.2 | 81,662 | 19.1 | 158,482 | 39.9 | ||||||||||||||||
Total Property | 214,585 | 40 | 157,034 | 36.7 | 175,527 | 44.2 | ||||||||||||||||
Casualty | ||||||||||||||||||||||
General liability (1) | (815 | ) | (0.2 | ) | 22,462 | 5.3 | 34,379 | 8.6 | ||||||||||||||
Marine liability | 1,956 | 0.4 | 2,240 | 0.5 | 360 | 0.1 | ||||||||||||||||
Motor liability | 253,698 | 47.4 | 178,204 | 41.7 | 86,937 | 21.9 | ||||||||||||||||
Professional liability | 29,901 | 5.6 | 17,301 | 4 | 20,631 | 5.2 | ||||||||||||||||
Total Casualty | 284,740 | 53.2 | 220,207 | 51.5 | 142,307 | 35.8 | ||||||||||||||||
Specialty | ||||||||||||||||||||||
Financial (1) | 3,498 | 0.7 | (256 | ) | (0.1 | ) | 12,364 | 3.1 | ||||||||||||||
Health | 37,094 | 6.9 | 33,874 | 7.9 | 38,640 | 9.7 | ||||||||||||||||
Workers’ compensation (1) | (4,215 | ) | (0.8 | ) | 16,985 | 4 | 28,821 | 7.2 | ||||||||||||||
Total Specialty | 36,377 | 6.8 | 50,603 | 11.8 | 79,825 | 20 | ||||||||||||||||
$ | 535,702 | 100 | % | $ | 427,844 | 100 | % | $ | 397,659 | 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. | ||||||||||||||||||||||
Revenue from External Customers by Products and Services | ' | |||||||||||||||||||||
Year ended December 31 | ||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||
U.S. | $ | 497,044 | 92.8 | % | $ | 399,082 | 93.3 | % | $ | 353,999 | 89 | % | ||||||||||
Worldwide (1) | 9,821 | 1.8 | 11,134 | 2.6 | 22,595 | 5.7 | ||||||||||||||||
Caribbean (2) | (95 | ) | — | 328 | 0.1 | 300 | 0.1 | |||||||||||||||
Europe | 28,932 | 5.4 | 17,300 | 4 | 20,765 | 5.2 | ||||||||||||||||
$ | 535,702 | 100 | % | $ | 427,844 | 100 | % | $ | 397,659 | 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. |
QUARTERLY_FINANCIAL_RESULTS_UN1
QUARTERLY FINANCIAL RESULTS (UNAUDITED) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Quarterly Financial Information | ' | ||||||||||||||||
The following table presents the quarterly financial results for each of the quarters ended during 2013: | |||||||||||||||||
2013 | |||||||||||||||||
Quarter ended | |||||||||||||||||
31-Mar | 30-Jun | 30-Sep | 31-Dec | ||||||||||||||
($ in thousands, except per share amounts) | |||||||||||||||||
Revenues | |||||||||||||||||
Gross premiums written | $ | 126,964 | $ | 135,198 | $ | 148,765 | $ | 124,775 | |||||||||
Gross premiums ceded | 3,978 | (2,514 | ) | (2,389 | ) | (1,855 | ) | ||||||||||
Net premiums written | 130,942 | 132,684 | 146,376 | 122,920 | |||||||||||||
Change in net unearned premium reserves | (21,471 | ) | 316 | 17,515 | 18,617 | ||||||||||||
Net premiums earned | 109,471 | 133,000 | 163,891 | 141,537 | |||||||||||||
Net investment income | 61,139 | 24,247 | 49,448 | 83,306 | |||||||||||||
Other income (expense), net | 389 | (488 | ) | (1 | ) | (850 | ) | ||||||||||
Total revenues | 170,999 | 156,759 | 213,338 | 223,993 | |||||||||||||
Expenses | |||||||||||||||||
Loss and loss adjustment expenses incurred, net | 66,278 | 78,345 | 94,366 | 99,504 | |||||||||||||
Acquisition costs, net | 41,296 | 42,936 | 53,521 | 34,119 | |||||||||||||
General and administrative expenses | 3,760 | 5,943 | 7,085 | 4,930 | |||||||||||||
Total expenses | 111,334 | 127,224 | 154,972 | 138,553 | |||||||||||||
Income before income tax expense | 59,665 | 29,535 | 58,366 | 85,440 | |||||||||||||
Income tax (expense) benefit | (308 | ) | (142 | ) | (90 | ) | 2 | ||||||||||
Net income including non-controlling interest | 59,357 | 29,393 | 58,276 | 85,442 | |||||||||||||
Net loss attributable to non-controlling interest in joint venture | (2,624 | ) | (893 | ) | (1,740 | ) | (1,512 | ) | |||||||||
Net income | $ | 56,733 | $ | 28,500 | $ | 56,536 | $ | 83,930 | |||||||||
Earnings per share | |||||||||||||||||
Basic | $ | 1.54 | $ | 0.77 | $ | 1.53 | $ | 2.27 | |||||||||
Diluted | $ | 1.52 | $ | 0.76 | $ | 1.5 | $ | 2.22 | |||||||||
Weighted average number of ordinary shares used in the determination of earnings per share: | |||||||||||||||||
Basic | 36,730,315 | 36,830,046 | 36,875,716 | 36,908,919 | |||||||||||||
Diluted | 37,424,894 | 37,537,500 | 37,645,053 | 37,746,223 | |||||||||||||
The following table presents the quarterly financial results for each of the quarters ended during 2012: | |||||||||||||||||
2012 | |||||||||||||||||
Quarter ended | |||||||||||||||||
31-Mar | 30-Jun | 30-Sep | 31-Dec | ||||||||||||||
($ in thousands, except per share amounts) | |||||||||||||||||
Revenues | |||||||||||||||||
Gross premiums written | $ | 152,220 | $ | 83,986 | $ | 67,644 | $ | 123,994 | |||||||||
Gross premiums ceded | (10,994 | ) | 4,602 | 30,637 | 30 | ||||||||||||
Net premiums written | 141,226 | 88,588 | 98,281 | 124,024 | |||||||||||||
Change in net unearned premium reserves | (39,637 | ) | 41,426 | 18,276 | (5,470 | ) | |||||||||||
Net premiums earned | 101,589 | 130,014 | 116,557 | 118,554 | |||||||||||||
Net investment income (loss) | 71,606 | (36,896 | ) | 96,450 | (52,219 | ) | |||||||||||
Other income (expense), net | (212 | ) | (236 | ) | 191 | (2 | ) | ||||||||||
Total revenues | 172,983 | 92,882 | 213,198 | 66,333 | |||||||||||||
Expenses | |||||||||||||||||
Loss and loss adjustment expenses incurred, net | 63,307 | 87,337 | 126,624 | 89,333 | |||||||||||||
Acquisition costs, net | 36,025 | 37,905 | 33,820 | 34,971 | |||||||||||||
General and administrative expenses | 4,624 | 4,359 | 4,637 | 3,919 | |||||||||||||
Total expenses | 103,956 | 129,601 | 165,081 | 128,223 | |||||||||||||
Income (loss) before income tax expense | 69,027 | (36,719 | ) | 48,117 | (61,890 | ) | |||||||||||
Income tax (expense) benefit | (262 | ) | 201 | (645 | ) | 620 | |||||||||||
Net income (loss) including non-controlling interest | 68,765 | (36,518 | ) | 47,472 | (61,270 | ) | |||||||||||
Net (income) loss attributable to non-controlling interest in joint venture | (3,632 | ) | 449 | (1,335 | ) | 667 | |||||||||||
Net income (loss) | $ | 65,133 | $ | (36,069 | ) | $ | 46,137 | $ | (60,603 | ) | |||||||
Earnings (loss) per share | |||||||||||||||||
Basic | $ | 1.78 | $ | (0.98 | ) | $ | 1.26 | $ | (1.65 | ) | |||||||
Diluted | $ | 1.75 | $ | (0.98 | ) | $ | 1.23 | $ | (1.65 | ) | |||||||
Weighted average number of ordinary shares used in the determination of earnings and loss per share | |||||||||||||||||
Basic | 36,550,953 | 36,660,267 | 36,678,653 | 36,702,128 | |||||||||||||
Diluted | 37,279,371 | 36,660,267 | 37,402,725 | 36,702,128 | |||||||||||||
SCHEDULE_II_Tables
SCHEDULE II (Tables) (Parent Company) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Parent Company | ' | ||||||||||||
Condensed Financial Statements, Captions [Line Items] | ' | ||||||||||||
Schedule of Condensed Balance Sheet | ' | ||||||||||||
GREENLIGHT CAPITAL RE, LTD. | |||||||||||||
CONDENSED FINANCIAL INFORMATION OF REGISTRANT | |||||||||||||
CONDENSED BALANCE SHEETS — PARENT COMPANY ONLY | |||||||||||||
(expressed in thousands of U.S. dollars) | |||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||
($ in thousands) | |||||||||||||
Cash and cash equivalents | $ | 5 | $ | 14 | |||||||||
Investment in subsidiaries | 1,035,423 | 807,148 | |||||||||||
Note receivable | 3,728 | 1,675 | |||||||||||
Due from subsidiaries | 16,247 | 14,241 | |||||||||||
Total assets | $ | 1,055,403 | $ | 823,078 | |||||||||
Liabilities and shareholders’ equity | |||||||||||||
Liabilities | |||||||||||||
Due to subsidiaries | $ | 3,808 | $ | 1,370 | |||||||||
Total liabilities | 3,808 | 1,370 | |||||||||||
Shareholders’ equity | |||||||||||||
Share capital | 3,705 | 3,670 | |||||||||||
Additional paid-in capital | 496,622 | 492,469 | |||||||||||
Retained earnings | 551,268 | 325,569 | |||||||||||
Total shareholders’ equity | 1,051,595 | 821,708 | |||||||||||
Total liabilities and shareholders’ equity | $ | 1,055,403 | $ | 823,078 | |||||||||
Schedule of Condensed Income Statement | ' | ||||||||||||
GREENLIGHT CAPITAL RE, LTD. | |||||||||||||
CONDENSED FINANCIAL INFORMATION OF REGISTRANT | |||||||||||||
CONDENSED STATEMENTS OF INCOME — PARENT COMPANY ONLY | |||||||||||||
(expressed in thousands of U.S. dollars) | |||||||||||||
Year ended December 31 | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
($ in thousands) | |||||||||||||
Revenue | |||||||||||||
Investment income | $ | 1,100 | $ | 810 | $ | 740 | |||||||
Total revenues | 1,100 | 810 | 740 | ||||||||||
Expenses | |||||||||||||
General and administrative expenses | 3,735 | 3,603 | 2,884 | ||||||||||
Net income (loss) before equity in earnings of consolidated subsidiaries | (2,635 | ) | (2,793 | ) | (2,144 | ) | |||||||
Equity in earnings of consolidated subsidiaries | 228,334 | 17,391 | 8,913 | ||||||||||
Consolidated net income | $ | 225,699 | $ | 14,598 | $ | 6,769 | |||||||
Schedule of Condensed Cash Flow Statement | ' | ||||||||||||
GREENLIGHT CAPITAL RE, LTD. | |||||||||||||
CONDENSED FINANCIAL INFORMATION OF REGISTRANT | |||||||||||||
CONDENSED STATEMENTS OF CASH FLOWS — PARENT COMPANY ONLY | |||||||||||||
(expressed in thousands of U.S. dollars) | |||||||||||||
Year Ended December 31 | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
($ in thousands) | |||||||||||||
Cash provided by (used in) operating activities | |||||||||||||
Net income | $ | 225,699 | $ | 14,598 | $ | 6,769 | |||||||
Adjustments to reconcile net income (loss) to cash provided by operating activities | |||||||||||||
Equity in earnings of consolidated subsidiaries | (228,334 | ) | (17,391 | ) | (8,913 | ) | |||||||
Share-based compensation expense | 3,675 | 3,689 | 2,884 | ||||||||||
Change in | |||||||||||||
Due from subsidiaries | (2,006 | ) | (52 | ) | (1,523 | ) | |||||||
Due to subsidiaries | 2,438 | 587 | 783 | ||||||||||
Total operating activities | 1,472 | 1,431 | — | ||||||||||
Investing activities | |||||||||||||
Change in note receivable | (2,053 | ) | (1,675 | ) | — | ||||||||
Contributed surplus to subsidiaries, net | 59 | (85 | ) | — | |||||||||
Total investing activities | (1,994 | ) | (1,760 | ) | — | ||||||||
Financing activities | |||||||||||||
Net proceeds from exercise of stock options | 513 | 318 | — | ||||||||||
Total financing activities | 513 | 318 | — | ||||||||||
Net (decrease) increase in cash and cash equivalents | (9 | ) | (11 | ) | — | ||||||||
Cash and cash equivalents at beginning of the year | 14 | 25 | 25 | ||||||||||
Cash and cash equivalents at end of the year | $ | 5 | $ | 14 | $ | 25 | |||||||
ORGANIZATION_AND_BASIS_OF_PRES1
ORGANIZATION AND BASIS OF PRESENTATION (Details) (USD $) | 0 Months Ended |
30-May-07 | |
Common Class A | ' |
Class of Stock [Line Items] | ' |
Shares issued from initial public offering | 11,787,500 |
Price per share of shares issued from initial public offering | $19 |
Common Class B | ' |
Class of Stock [Line Items] | ' |
Shares issued from initial public offering | 2,631,579 |
Price per share of shares issued from initial public offering | $19 |
SIGNIFICANT_ACCOUNTING_POLICIE3
SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Accounting Policies [Line Items] | ' | ' | ' |
Premium deficiency loss | $0 | $0 | ' |
Profit commissions payable | 10,500,000 | 9,600,000 | ' |
Profit commission expense | 3,700,000 | 1,500,000 | 3,900,000 |
Amount of note placed on non-accrual status | 10,500,000 | 16,500,000 | ' |
Amount of interest received relating to the notes placed on non-accrual status | 0 | 0 | ' |
Impairment charge relating to accrued interest and principal on the note placed on non-accrual status | 6,000,000 | 0 | 0 |
Accrued interest | 100,000 | 2,000,000 | ' |
Provision for uncollectible notes | 0 | 0 | ' |
Deposit assets | 1,600,000 | 5,100,000 | ' |
Deposit liabilities | 0 | 700,000 | ' |
Losses on deposit accounted contracts | 1,300,000 | 200,000 | 900,000 |
Gain on deposit accounted contracts | 0 | 0 | 0 |
Other Liabilities | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' |
Accrued bonuses | $4,300,000 | $2,800,000 | ' |
Minimum | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' |
Notes receivable interest rate | 10.00% | ' | ' |
Maturity term of note receivable | '2 years | ' | ' |
Annual installment period | '2 years | ' | ' |
Maximum | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' |
Notes receivable interest rate | 16.00% | ' | ' |
Maturity term of note receivable | '5 years | ' | ' |
Annual installment period | '5 years | ' | ' |
SIGNIFICANT_ACCOUNTING_POLICIE4
SIGNIFICANT ACCOUNTING POLICIES Fixed Assets (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Cost | $3,178,000 | $2,138,000 | ' |
Accumulated depreciation | -1,249,000 | -924,000 | ' |
Net book value | 1,929,000 | 1,214,000 | ' |
Impairment of fixed assets | 0 | 0 | 0 |
Computer software | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Cost | 556,000 | 200,000 | ' |
Accumulated depreciation | -206,000 | -200,000 | ' |
Net book value | 350,000 | 0 | ' |
Fixed asset estimated useful lives | '5 years | ' | ' |
Furniture and fixtures | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Cost | 620,000 | 451,000 | ' |
Accumulated depreciation | -340,000 | -232,000 | ' |
Net book value | 280,000 | 219,000 | ' |
Fixed asset estimated useful lives | '5 years | ' | ' |
Leasehold improvements | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Cost | 2,002,000 | 1,487,000 | ' |
Accumulated depreciation | -703,000 | -492,000 | ' |
Net book value | $1,299,000 | $995,000 | ' |
SIGNIFICANT_ACCOUNTING_POLICIE5
SIGNIFICANT ACCOUNTING POLICIES Earnings Per Share Reconciliation (Details) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average shares outstanding - basic | 36,908,919 | 36,875,716 | 36,830,046 | 36,730,315 | 36,702,128 | 36,678,653 | 36,660,267 | 36,550,953 | 36,838,128 | 36,702,128 | 36,548,466 |
Effect of dilutive service provider share-based awards | ' | ' | ' | ' | ' | ' | ' | ' | 144,726 | 147,036 | 170,056 |
Effect of dilutive employee and director share-based awards | ' | ' | ' | ' | ' | ' | ' | ' | 602,313 | 512,174 | 567,932 |
Weighted average share outstanding - diluted | 37,746,223 | 37,645,053 | 37,537,500 | 37,424,894 | 36,702,128 | 37,402,725 | 36,660,267 | 37,279,371 | 37,585,167 | 37,361,338 | 37,286,454 |
Stock Options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Anti-dilutive stock options outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 218,197 | 180,000 | 180,000 |
SIGNIFICANT_ACCOUNTING_POLICIE6
SIGNIFICANT ACCOUNTING POLICIES Income taxes (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Verdant | ' |
Income Taxes [Line Items] | ' |
Tax rate for taxable income | 35.00% |
Ireland | GRIL | ' |
Income Taxes [Line Items] | ' |
Tax rate for trading income | 12.50% |
Tax rate for non-trading income | 25.00% |
FINANCIAL_INSTRUMENTS_Financia
FINANCIAL INSTRUMENTS Financial Instruments Additional Information (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ' | ' | ' |
Realized gains | $142 | $60.80 | $139.80 |
Gross realized gains | 352.9 | 268.1 | 337.9 |
Gross realized losses | 210.9 | 207.3 | 198.1 |
Fair value of cash and investments that have been pledged as security against letters of credit issued | 410.3 | 441.7 | ' |
Net investment income (loss) | ' | ' | ' |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ' | ' | ' |
Change in unrealized gains and losses on trading securities | 154.8 | 67.6 | -75.7 |
Apple Inc. | ' | ' | ' |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ' | ' | ' |
Fair value of investments | 161.4 | ' | ' |
Micron Technology Inc. | ' | ' | ' |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ' | ' | ' |
Fair value of investments | 147 | ' | ' |
Investment in Gold | ' | ' | ' |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ' | ' | ' |
Fair value of investments | ' | $97.60 | ' |
Stockholders' Equity, Total | Investment Concentration Risk | Apple Inc. | ' | ' | ' |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ' | ' | ' |
Concentration risk, percentage | 14.90% | ' | ' |
Stockholders' Equity, Total | Investment Concentration Risk | Micron Technology Inc. | ' | ' | ' |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ' | ' | ' |
Concentration risk, percentage | 13.50% | ' | ' |
Stockholders' Equity, Total | Investment Concentration Risk | Investment in Gold | ' | ' | ' |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ' | ' | ' |
Concentration risk, percentage | ' | 11.30% | ' |
FINANCIAL_INSTRUMENTS_Schedule
FINANCIAL INSTRUMENTS Schedule of Investments Categorized by the Level of Fair Value Hierarchy (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Debt instruments | $4,312 | $1,763 |
Listed equity securities | 1,282,156 | 1,042,715 |
Commodities | 60,888 | 94,649 |
Private and unlisted equity securities | 46,323 | 38,801 |
Financial contracts receivable | 104,048 | 22,744 |
Assets: | 1,497,727 | 1,200,672 |
Listed equity securities, sold not yet purchased | -917,123 | -679,897 |
Debt instruments, sold not yet purchased | -194,567 | -228,471 |
Financial contracts payable | -18,857 | -19,637 |
Liabilities: | -1,130,547 | -928,005 |
Quoted prices in active markets (Level 1) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Debt instruments | 0 | 0 |
Listed equity securities | 1,274,920 | 1,040,562 |
Commodities | 60,888 | 94,649 |
Private and unlisted equity securities | 0 | 0 |
Financial contracts receivable | 4,500 | 0 |
Assets: | 1,340,308 | 1,135,211 |
Listed equity securities, sold not yet purchased | -917,123 | -679,897 |
Debt instruments, sold not yet purchased | 0 | 0 |
Financial contracts payable | 0 | 0 |
Liabilities: | -917,123 | -679,897 |
Significant other observable inputs (Level 2) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Debt instruments | 3,785 | 1,503 |
Listed equity securities | 7,236 | 2,153 |
Commodities | 0 | 0 |
Private and unlisted equity securities | 0 | 0 |
Financial contracts receivable | 99,548 | 22,744 |
Assets: | 110,569 | 26,400 |
Listed equity securities, sold not yet purchased | 0 | 0 |
Debt instruments, sold not yet purchased | -194,567 | -228,471 |
Financial contracts payable | -18,857 | -19,637 |
Liabilities: | -213,424 | -248,108 |
Significant unobservable inputs (Level 3) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Debt instruments | 527 | 260 |
Listed equity securities | 0 | 0 |
Commodities | 0 | 0 |
Private and unlisted equity securities | 46,323 | 38,801 |
Financial contracts receivable | 0 | 0 |
Assets: | 46,850 | 39,061 |
Listed equity securities, sold not yet purchased | 0 | 0 |
Debt instruments, sold not yet purchased | 0 | 0 |
Financial contracts payable | 0 | 0 |
Liabilities: | $0 | $0 |
FINANCIAL_INSTRUMENTS_Fair_Val
FINANCIAL INSTRUMENTS Fair Value Hierarchy Additional Information (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Transfers out of Level 3 | $24,581,000 | ' |
Amount transferred from Level 2 to Level 1 due to lock-up period restriction expiration | 2,400,000 | 32,400,000 |
Total realized and unrealized gains (losses) and amortization included in earnings, net | 1,536,000 | 2,367,000 |
Net investment income (loss) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total realized and unrealized gains (losses) and amortization included in earnings, net | -700,000 | -600,000 |
Change in unrealized (losses) gains | -1,100,000 | 2,000,000 |
Other income (expense), net | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Amortization expense relating to financial contracts receivable valued using unobservable inputs | 0 | -300,000 |
Significant other observable inputs (Level 2) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Transfers out of Level 3 | 5,000,000 | 4,976,000 |
Quoted prices in active markets (Level 1) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Transfers out of Level 3 | $19,600,000 | ' |
FINANCIAL_INSTRUMENTS_Level_3_
FINANCIAL INSTRUMENTS Level 3 reconciliation (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' |
Beginning balance | $39,061 | $31,907 |
Purchases | 47,310 | 11,518 |
Sales | -16,476 | -1,755 |
Total realized and unrealized gains (losses) and amortization included in earnings, net | 1,536 | 2,367 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | -24,581 | ' |
Ending balance | 46,850 | 39,061 |
Debt instruments | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' |
Beginning balance | 260 | 465 |
Purchases | 9,224 | 0 |
Sales | -9,224 | -1 |
Total realized and unrealized gains (losses) and amortization included in earnings, net | 267 | -204 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Ending balance | 527 | 260 |
Private and unlisted equities securities | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' |
Beginning balance | 38,801 | 31,179 |
Purchases | 38,086 | 11,518 |
Sales | -7,252 | -1,754 |
Total realized and unrealized gains (losses) and amortization included in earnings, net | 1,269 | 2,834 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | -24,581 | -4,976 |
Ending balance | 46,323 | 38,801 |
Financial contracts receivable | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' |
Beginning balance | ' | 263 |
Purchases | ' | 0 |
Sales | ' | 0 |
Total realized and unrealized gains (losses) and amortization included in earnings, net | ' | -263 |
Transfers into Level 3 | ' | 0 |
Transfers out of Level 3 | ' | 0 |
Ending balance | ' | $0 |
FINANCIAL_INSTRUMENTS_Schedule1
FINANCIAL INSTRUMENTS Schedule of Investments Included in Debt Instruments (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Cost/ amortized cost | $5,877 | $3,496 |
Debt instruments, trading, at fair value | 4,312 | 1,763 |
Corporate debt b U.S. | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Cost/ amortized cost | 2,116 | 2,317 |
Unrealized gains | 0 | 205 |
Unrealized losses | -1,589 | -1,856 |
Debt instruments, trading, at fair value | 527 | 666 |
Corporate debt b Non U.S. | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Cost/ amortized cost | 3,761 | 1,179 |
Unrealized gains | 115 | 0 |
Unrealized losses | -91 | -82 |
Debt instruments, trading, at fair value | 3,785 | 1,097 |
Debt instruments | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Cost/ amortized cost | 5,877 | 3,496 |
Unrealized gains | 115 | 205 |
Unrealized losses | ($1,680) | ($1,938) |
FINANCIAL_INSTRUMENTS_Schedule2
FINANCIAL INSTRUMENTS Schedule of Maturity Distribution of Debt Instruments (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financial Instruments [Abstract] | ' | ' |
Trading, debt maturities, next 12 twelve months, cost | $0 | $0 |
Trading, debt maturities, next 12 months, fair value | 0 | 0 |
Trading, debt maturities, 2 to 5 years, Cost | 0 | 0 |
Trading, debt maturities, 2 to 5 years, fair value | 0 | 0 |
Trading, debt maturities, 6 to 10 years, Cost | 0 | 0 |
Trading, debt maturities, 6 to 10 years, fair value | 0 | 0 |
Trading, debt maturities, after 10 years, Cost | 5,877 | 3,496 |
Trading, debt maturities, after 10 years, fair value | 4,312 | 1,763 |
Cost/ amortized cost | 5,877 | 3,496 |
Debt instruments, trading, at fair value | $4,312 | $1,763 |
FINANCIAL_INSTRUMENTS_Schedule3
FINANCIAL INSTRUMENTS Schedule of Investments in Equity Securities, Trading (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Cost/ amortized cost | $5,877 | $3,496 |
Equity securities, trading, at fair value | 1,282,156 | 1,042,715 |
Common stocks, listed | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Cost/ amortized cost | 923,594 | 875,322 |
Unrealized gains | 361,695 | 199,519 |
Unrealized losses | -28,712 | -70,275 |
Equity securities, trading, at fair value | 1,256,577 | 1,004,566 |
Exchange traded funds | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Cost/ amortized cost | 50,253 | 38,819 |
Unrealized gains | 0 | 0 |
Unrealized losses | -24,674 | -670 |
Equity securities, trading, at fair value | 25,579 | 38,149 |
Equities b listed | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Cost/ amortized cost | 973,847 | 914,141 |
Unrealized gains | 361,695 | 199,519 |
Unrealized losses | ($53,386) | ($70,945) |
FINANCIAL_INSTRUMENTS_Schedule4
FINANCIAL INSTRUMENTS Schedule of Other Investments (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Cost/ amortized cost | $100,177 | $96,601 |
Unrealized gains | 14,425 | 39,633 |
Unrealized losses | -7,391 | -2,784 |
Fair value | 107,211 | 133,450 |
Commodities | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Cost/ amortized cost | 54,633 | 59,929 |
Unrealized gains | 6,255 | 34,719 |
Unrealized losses | 0 | 0 |
Fair value | 60,888 | 94,648 |
Private and unlisted equities securities | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Cost/ amortized cost | 45,544 | 36,672 |
Unrealized gains | 8,170 | 4,914 |
Unrealized losses | -7,391 | -2,784 |
Fair value | $46,323 | $38,802 |
FINANCIAL_INSTRUMENTS_NAV_Inst
FINANCIAL INSTRUMENTS NAV Instruments (Details) (Private and unlisted equities securities, USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' |
Amount of unfunded commitments relating to private equity funds | $6.30 | $12.60 |
Significant unobservable inputs (Level 3) | ' | ' |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' |
Fair Value of investments in private equity funds | $41.60 | $24.30 |
Percentage of funds that have redemption restrictions | 100.00% | ' |
FINANCIAL_INSTRUMENTS_Schedule5
FINANCIAL INSTRUMENTS Schedule of Investments in Securities Sold, Not Yet Purchased (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Equities b listed | ' | ' |
Investments Sold, Not yet Purchased [Line Items] | ' | ' |
Unrealized gains | $361,695 | $199,519 |
Unrealized losses | -53,386 | -70,945 |
Exchange traded funds | ' | ' |
Investments Sold, Not yet Purchased [Line Items] | ' | ' |
Unrealized gains | 0 | 0 |
Unrealized losses | -24,674 | -670 |
Corporate debt b U.S. | ' | ' |
Investments Sold, Not yet Purchased [Line Items] | ' | ' |
Unrealized gains | 0 | 205 |
Unrealized losses | -1,589 | -1,856 |
Securities Sold, Not yet Purchased | ' | ' |
Investments Sold, Not yet Purchased [Line Items] | ' | ' |
Proceeds | -1,021,536 | -911,753 |
Unrealized gains | 57,856 | 76,198 |
Unrealized losses | -148,010 | -72,813 |
Fair value | -1,111,690 | -908,368 |
Securities Sold, Not yet Purchased | Equities b listed | ' | ' |
Investments Sold, Not yet Purchased [Line Items] | ' | ' |
Proceeds | -836,708 | -697,278 |
Unrealized gains | 57,854 | 76,172 |
Unrealized losses | -130,621 | -58,791 |
Fair value | -909,475 | -679,897 |
Securities Sold, Not yet Purchased | Exchange traded funds | ' | ' |
Investments Sold, Not yet Purchased [Line Items] | ' | ' |
Proceeds | -6,318 | ' |
Unrealized gains | 0 | ' |
Unrealized losses | -1,330 | ' |
Fair value | -7,648 | ' |
Securities Sold, Not yet Purchased | Corporate debt b U.S. | ' | ' |
Investments Sold, Not yet Purchased [Line Items] | ' | ' |
Proceeds | -8,135 | -7,353 |
Unrealized gains | 2 | 26 |
Unrealized losses | -235 | -381 |
Fair value | -8,368 | -7,708 |
Securities Sold, Not yet Purchased | Sovereign debt b Non U.S. | ' | ' |
Investments Sold, Not yet Purchased [Line Items] | ' | ' |
Proceeds | -170,375 | -207,122 |
Unrealized gains | 0 | 0 |
Unrealized losses | -15,824 | -13,641 |
Fair value | ($186,199) | ($220,763) |
FINANCIAL_INSTRUMENTS_Financia1
FINANCIAL INSTRUMENTS Financial Contracts Additional Information (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Derivative [Line Items] | ' | ' |
Financial contracts receivable, Gross amounts of recognized assets (liabilities) | $104,048 | $22,744 |
OTC options | Financial contracts receivable | Put options | ' | ' |
Derivative [Line Items] | ' | ' |
Financial contracts receivable, Gross amounts of recognized assets (liabilities) | 12,900 | 17,200 |
OTC options | Financial contracts receivable | Call options | ' | ' |
Derivative [Line Items] | ' | ' |
Financial contracts receivable, Gross amounts of recognized assets (liabilities) | ' | $1,500 |
FINANCIAL_INSTRUMENTS_Schedule6
FINANCIAL INSTRUMENTS Schedule of Fair Values of Financial Contracts Outstanding (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Derivative [Line Items] | ' | ' |
Financial contracts receivable | $104,048 | $22,744 |
Financial contracts payable, Fair value of net assets (obligations) on financial contracts | -18,857 | -19,637 |
Financial contracts receivable | ' | ' |
Derivative [Line Items] | ' | ' |
Financial contracts receivable | 104,048 | 22,744 |
Financial contracts receivable | Call options | ' | ' |
Derivative [Line Items] | ' | ' |
Financial contracts receivable, Notional amount of underlying instruments | ' | 90,374 |
Financial contracts receivable | ' | 4,498 |
Financial contracts receivable | Forwards | ' | ' |
Derivative [Line Items] | ' | ' |
Financial contracts receivable, Notional amount of underlying instruments | 71,162 | ' |
Financial contracts receivable | 383 | ' |
Financial contracts receivable | Futures | ' | ' |
Derivative [Line Items] | ' | ' |
Financial contracts receivable, Notional amount of underlying instruments | 117,494 | ' |
Financial contracts receivable | 4,500 | ' |
Financial contracts receivable | Interest rate options | ' | ' |
Derivative [Line Items] | ' | ' |
Financial contracts receivable, Notional amount of underlying instruments | 391,559 | 2,299,933 |
Financial contracts receivable | 26 | 109 |
Financial contracts receivable | Put options | ' | ' |
Derivative [Line Items] | ' | ' |
Financial contracts receivable, Notional amount of underlying instruments | 217,359 | 314,695 |
Financial contracts receivable | 12,923 | 17,709 |
Financial contracts receivable | Total return swaps b equities | ' | ' |
Derivative [Line Items] | ' | ' |
Financial contracts receivable, Notional amount of underlying instruments | 178,988 | 3,664 |
Financial contracts receivable | 83,325 | 163 |
Financial contracts receivable | Warrants and rights on listed equities | ' | ' |
Derivative [Line Items] | ' | ' |
Financial contracts receivable, Notional amount of underlying instruments | 5,237 | ' |
Financial contracts receivable | 2,891 | ' |
Financial contracts receivable | Credit default swaps, purchased | Corporate Debt | ' | ' |
Derivative [Line Items] | ' | ' |
Financial contracts receivable, Notional amount of underlying instruments | ' | 39,665 |
Financial contracts receivable | ' | 265 |
Financial contracts payable | ' | ' |
Derivative [Line Items] | ' | ' |
Financial contracts payable, Fair value of net assets (obligations) on financial contracts | -18,857 | -19,637 |
Financial contracts payable | Forwards | ' | ' |
Derivative [Line Items] | ' | ' |
Financial contracts payable, Notional amount of underlying instruments | 32,100 | ' |
Financial contracts payable, Fair value of net assets (obligations) on financial contracts | -58 | ' |
Financial contracts payable | Put options | ' | ' |
Derivative [Line Items] | ' | ' |
Financial contracts payable, Notional amount of underlying instruments | ' | 16,071 |
Financial contracts payable, Fair value of net assets (obligations) on financial contracts | ' | -1,636 |
Financial contracts payable | Total return swaps b equities | ' | ' |
Derivative [Line Items] | ' | ' |
Financial contracts payable, Notional amount of underlying instruments | 36,983 | 76,697 |
Financial contracts payable, Fair value of net assets (obligations) on financial contracts | -11,194 | -9,193 |
Financial contracts payable | Warrants and rights on listed equities | ' | ' |
Derivative [Line Items] | ' | ' |
Financial contracts payable, Notional amount of underlying instruments | ' | 0 |
Financial contracts payable, Fair value of net assets (obligations) on financial contracts | ' | 0 |
Financial contracts payable | Credit default swaps, purchased | Corporate Debt | ' | ' |
Derivative [Line Items] | ' | ' |
Financial contracts payable, Notional amount of underlying instruments | 273,877 | 234,212 |
Financial contracts payable, Fair value of net assets (obligations) on financial contracts | -3,625 | -3,365 |
Financial contracts payable | Credit default swaps, purchased | Sovereign debt b Non U.S. | ' | ' |
Derivative [Line Items] | ' | ' |
Financial contracts payable, Notional amount of underlying instruments | 251,467 | 251,467 |
Financial contracts payable, Fair value of net assets (obligations) on financial contracts | ($3,980) | ($5,443) |
FINANCIAL_INSTRUMENTS_Schedule7
FINANCIAL INSTRUMENTS Schedule of Reported Gains and Losses on Derivatives (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (loss) on derivatives recognized in income | $126,076 | ($50,046) | ($16,360) |
Credit Default Swap, issued | Corporate Debt | Net investment income (loss) | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (loss) on derivatives recognized in income | 0 | 0 | 4,785 |
Credit default swaps, purchased | Corporate Debt | Net investment income (loss) | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (loss) on derivatives recognized in income | -3,552 | -7,342 | 1,042 |
Credit default swaps, purchased | Sovereign debt b Non U.S. | Net investment income (loss) | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (loss) on derivatives recognized in income | -1,087 | -5,086 | 14,957 |
Currency forwards | Net investment income (loss) | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (loss) on derivatives recognized in income | 11,209 | 0 | -3,612 |
Futures | Net investment income (loss) | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (loss) on derivatives recognized in income | 12,504 | -13,064 | -2,365 |
Interest rate options | Net investment income (loss) | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (loss) on derivatives recognized in income | -82 | -2,127 | -9,625 |
Options, warrants, and rights | Net investment income (loss) | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (loss) on derivatives recognized in income | 21,446 | -8,988 | -29,185 |
Total return swaps b equities | Net investment income (loss) | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (loss) on derivatives recognized in income | 85,638 | -13,176 | 8,094 |
Weather derivative swap | Other income (expense), net | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (loss) on derivatives recognized in income | $0 | ($263) | ($451) |
FINANCIAL_INSTRUMENTS_Schedule8
FINANCIAL INSTRUMENTS Schedule of Volume of Derivative Activities (Details) (Not Designated as Hedging Instrument, USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Derivative [Line Items] | ' | ' | ||
Entered | $1,949,868 | $1,919,678 | ||
Exited | 1,839,193 | 1,757,319 | ||
Credit default swaps | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Entered | ' | 0 | ||
Exited | ' | 45,966 | ||
Currency forwards | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Entered | 423,443 | ' | ||
Exited | 115,884 | ' | ||
Futures | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Entered | 401,672 | 1,033,604 | ||
Exited | 292,529 | 1,208,785 | ||
Interest rate options | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Entered | 0 | ' | ||
Exited | 376,385 | [1] | ' | |
Options | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Entered | 930,410 | 818,319 | ||
Exited | 965,991 | [1] | 436,033 | [1] |
Total return swaps | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Entered | 194,343 | 67,755 | ||
Exited | 88,404 | 61,535 | ||
Weather derivative swap | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Entered | ' | 0 | ||
Exited | ' | $5,000 | ||
[1] | Exited amount excludes options which expired or were exercised during the period. |
FINANCIAL_INSTRUMENTS_Schedule9
FINANCIAL INSTRUMENTS Schedule of Gross and Net Amounts of Derivative Instruments and Cash Collateral (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financial Instruments [Abstract] | ' | ' |
Financial contracts receivable, Gross amounts of recognized assets (liabilities) | $104,048 | $22,744 |
Financial contracts payable, Gross amounts offset in the balance sheet | 0 | 0 |
Financial contracts receivable, Net amounts of assets (liabilities) presented in the balance sheet | 104,048 | 22,744 |
Financial contracts receivable, Cash collateral (received) pledged | 45,168 | 947 |
Financial contracts receivable, Net amount of asset (liability) | 58,880 | 21,797 |
Financial contracts payable, Gross amounts of recognized assets (liabilities) | -18,857 | -19,637 |
Financial contracts payable, Gross amounts offset in the balance sheet | 0 | 0 |
Financial contracts payable, Net amounts of assets (liabilities) presented in the balance sheet | -18,857 | -19,637 |
Financial contracts payable, Cash collateral (received) pledged | 34,859 | 39,268 |
Financial contracts payable, Net amount of asset (liability) | 16,002 | 19,631 |
Securities sold, not yet purchased, Gross amounts recognized assets (liabilities) | -1,111,690 | -908,368 |
Securities sold, not yet purchased, Gross amounts offset in the balance sheet | 0 | 0 |
Securities sold, not yet purchased, Net amounts of assets (liabilities) presented in the balance sheet | -1,111,690 | -908,368 |
Securities sold, not yet purchased, Cash collateral (received) pledged | 1,111,690 | 908,368 |
Securities sold, not yet purchased, Net amount of asset (liability) | $0 | $0 |
DUE_TO_PRIME_BROKERS_Details
DUE TO PRIME BROKERS (Details) (USD $) | 0 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Jul. 24, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Due to Prime Broker [Line Items] | ' | ' | ' |
Amounts due to prime brokers | ' | $314,702 | $326,488 |
Maximum temporary leverage | 30.00% | 20.00% | ' |
Maximum long-term leverage | 15.00% | 5.00% | ' |
Collateral for LOCs issued | ' | ' | ' |
Due to Prime Broker [Line Items] | ' | ' | ' |
Amounts due to prime brokers | ' | 202,200 | 252,700 |
Bank Overdrafts | ' | ' | ' |
Due to Prime Broker [Line Items] | ' | ' | ' |
Amounts due to prime brokers | ' | $112,500 | $73,700 |
CASH_AND_CASH_EQUIVALENTS_Deta
CASH AND CASH EQUIVALENTS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Cash and Cash Equivalents [Line Items] | ' | ' | ' | ' |
Total cash and cash equivalents | $3,722 | $21,890 | $42,284 | $45,540 |
Cash at banks | ' | ' | ' | ' |
Cash and Cash Equivalents [Line Items] | ' | ' | ' | ' |
Total cash and cash equivalents | 3,674 | 7,561 | ' | ' |
Cash held with brokers | ' | ' | ' | ' |
Cash and Cash Equivalents [Line Items] | ' | ' | ' | ' |
Total cash and cash equivalents | $48 | $14,329 | ' | ' |
RESTRICTED_CASH_AND_CASH_EQUIV2
RESTRICTED CASH AND CASH EQUIVALENTS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Cash and Cash Equivalents [Line Items] | ' | ' |
Total restricted cash and cash equivalents | $1,334,074 | $1,206,837 |
Cash held by prime brokers relating to securities sold, not yet purchased | ' | ' |
Cash and Cash Equivalents [Line Items] | ' | ' |
Total restricted cash and cash equivalents | 1,111,690 | 910,003 |
Cash collateral relating to letters of credit issued | ' | ' |
Cash and Cash Equivalents [Line Items] | ' | ' |
Total restricted cash and cash equivalents | 202,248 | 252,748 |
Cash and cash equivalents held by swap counterparties | ' | ' |
Cash and Cash Equivalents [Line Items] | ' | ' |
Total restricted cash and cash equivalents | $20,136 | $44,086 |
LOSS_AND_LOSS_ADJUSTMENT_EXPEN2
LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ' | ' | ' |
Gross balance at January 1 | $356,470,000 | $241,279,000 | $186,467,000 |
Less: Losses recoverable | -34,451,000 | -29,758,000 | -11,976,000 |
Net balance at January 1 | 322,019,000 | 211,521,000 | 174,491,000 |
Incurred losses related to Current year | 344,613,000 | 309,703,000 | 215,675,000 |
Incurred losses related to Prior years | -6,120,000 | 56,898,000 | 26,015,000 |
Incurred losses related to Total incurred | 338,493,000 | 366,601,000 | 241,690,000 |
Paid losses related to Current year | -177,871,000 | -130,717,000 | -81,732,000 |
Paid losses related to Prior years | -170,018,000 | -125,767,000 | -122,898,000 |
Paid losses related to Total paid | -347,889,000 | -256,484,000 | -204,630,000 |
Paid losses related to Foreign currency revaluation | 442,000 | 381,000 | -30,000 |
Net balance at December 31 | 313,065,000 | 322,019,000 | 211,521,000 |
Add: Losses recoverable | -16,829,000 | -34,451,000 | -29,758,000 |
Gross balance at December 31 | 329,894,000 | 356,470,000 | 241,279,000 |
Case reserves | 137,825,000 | 140,674,000 | ' |
IBNR | 192,069,000 | 215,796,000 | ' |
Total | 329,894,000 | 356,470,000 | ' |
Hurricane | ' | ' | ' |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ' | ' | ' |
Amount of cause of increase (decrease) in liability for unpaid claims and claims adjustment expense | -15,000,000 | ' | ' |
Reinstatement (reversal) of premiums earned | -2,600,000 | ' | ' |
Earthquake | ' | ' | ' |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ' | ' | ' |
Amount of cause of increase (decrease) in liability for unpaid claims and claims adjustment expense | ' | 9,000,000 | ' |
Full limit loss under contract | ' | 10,000,000 | ' |
Commercial Automobile Business | Change in Historical Claims Rate Experience | ' | ' | ' |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ' | ' | ' |
Amount of cause of increase (decrease) in liability for unpaid claims and claims adjustment expense | 4,000,000 | ' | ' |
Non standard Automobile Business | Change in Historical Claims Rate Experience | ' | ' | ' |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ' | ' | ' |
Amount of cause of increase (decrease) in liability for unpaid claims and claims adjustment expense | 3,000,000 | ' | ' |
Ceding commissions | 2,300,000 | ' | ' |
Property & Casualty | Change in Historical Claims Rate Experience | ' | ' | ' |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ' | ' | ' |
Amount of cause of increase (decrease) in liability for unpaid claims and claims adjustment expense | 17,700,000 | ' | ' |
Casualty Clash Contract | Change in Historical Claims Rate Experience | ' | ' | ' |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ' | ' | ' |
Amount of cause of increase (decrease) in liability for unpaid claims and claims adjustment expense | 4,000,000 | ' | ' |
Reinstatement (reversal) of premiums earned | 1,200,000 | ' | ' |
Commercial motor contracts in run-off since 2010 | Change in Historical Claims Rate Experience | ' | ' | ' |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ' | ' | ' |
Amount of cause of increase (decrease) in liability for unpaid claims and claims adjustment expense | ' | 18,800,000 | 15,700,000 |
Commercial motor related to multi-line contracts | Change in Historical Claims Rate Experience | ' | ' | ' |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ' | ' | ' |
Amount of cause of increase (decrease) in liability for unpaid claims and claims adjustment expense | ' | 21,900,000 | 9,700,000 |
Homeowners' property contracts | Change in Historical Claims Rate Experience | ' | ' | ' |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ' | ' | ' |
Amount of cause of increase (decrease) in liability for unpaid claims and claims adjustment expense | 2,400,000 | 4,600,000 | 1,600,000 |
Ceding commissions | ' | -1,300,000 | ' |
Health | Change in Historical Claims Rate Experience | ' | ' | ' |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ' | ' | ' |
Amount of cause of increase (decrease) in liability for unpaid claims and claims adjustment expense | ' | ' | ($1,300,000) |
RETROCESSION_Details
RETROCESSION (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Ceded Credit Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss and loss adjustment expenses incurred, net | $99,504,000 | $94,366,000 | $78,345,000 | $66,278,000 | $89,333,000 | $126,624,000 | $87,337,000 | $63,307,000 | $338,493,000 | $366,601,000 | $241,690,000 | ' |
Loss and loss expenses recovered and recoverable | ' | ' | ' | ' | ' | ' | ' | ' | -10,200,000 | 13,000,000 | 28,100,000 | ' |
Loss and loss adjustment expenses recoverable | 16,829,000 | ' | ' | ' | 34,451,000 | ' | ' | ' | 16,829,000 | 34,451,000 | 29,758,000 | 11,976,000 |
Losses recoverable | 10,126,000 | ' | ' | ' | 17,415,000 | ' | ' | ' | 10,126,000 | 17,415,000 | ' | ' |
Provision for uncollectible losses recoverable | 0 | ' | ' | ' | 0 | ' | ' | ' | 0 | 0 | ' | ' |
Unrated | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ceded Credit Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss and loss adjustment expenses recoverable | 16,800,000 | ' | ' | ' | 34,300,000 | ' | ' | ' | 16,800,000 | 34,300,000 | ' | ' |
Ceded Credit Risk, Secured | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ceded Credit Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Losses recoverable | 4,000,000 | ' | ' | ' | 11,400,000 | ' | ' | ' | 4,000,000 | 11,400,000 | ' | ' |
Ceded Credit Risk, Unsecured | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ceded Credit Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss and loss adjustment expenses recoverable | 12,800,000 | ' | ' | ' | ' | ' | ' | ' | 12,800,000 | ' | ' | ' |
Premiums and Other Receivables, Net [Member] | Ceded Credit Risk, Unsecured | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ceded Credit Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ceding commission adjustments | $12,000,000 | ' | ' | ' | ' | ' | ' | ' | $12,000,000 | ' | ' | ' |
SHARE_CAPITAL_Details
SHARE CAPITAL (Details) (USD $) | 0 Months Ended | 12 Months Ended | |||
Sep. 21, 2004 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Class of Stock [Line Items] | ' | ' | ' | ' | ' |
Preferred shares issued | ' | 0 | 0 | ' | ' |
Preferred shares outstanding | ' | 0 | ' | ' | ' |
Registration rights | ' | 50.00% | ' | ' | ' |
Aggregate principal amount of securities | ' | $200,000,000 | ' | ' | ' |
Increase (Decrease) in Common Stock [Roll Forward] | ' | ' | ' | ' | ' |
Amount of retained earnings restricted from payment of dividends | ' | 0 | ' | ' | ' |
Class A | ' | ' | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' | ' | ' |
Number of entitled votes per share | ' | 1 | ' | ' | ' |
Percentage of total voting power of all issued and outstanding ordinary shares | ' | 9.90% | ' | ' | ' |
Shares authorized for issuance in relation to share purchase options granted to service provider | 400,000 | ' | ' | ' | ' |
Shares authorized to purchase under the share repurchase plan | ' | 2,000,000 | ' | ' | ' |
Number of shares available under share repurchase plan | ' | ' | 2,000,000 | ' | ' |
Increase (Decrease) in Common Stock [Roll Forward] | ' | ' | ' | ' | ' |
Balance b beginning of year | ' | 30,791,865 | 30,447,179 | 30,283,200 | 30,200,835 |
Issue of ordinary shares, net of forfeitures | ' | 344,686 | 163,979 | 82,365 | ' |
Balance b end of year | ' | 30,791,865 | 30,447,179 | 30,283,200 | 30,200,835 |
Par value per share | ' | $0.10 | $0.10 | ' | ' |
Class B | ' | ' | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' | ' | ' |
Percentage of total voting power of all issued and outstanding ordinary shares | ' | 9.50% | ' | ' | ' |
Increase (Decrease) in Common Stock [Roll Forward] | ' | ' | ' | ' | ' |
Balance b beginning of year | ' | 6,254,949 | 6,254,949 | 6,254,949 | 6,254,949 |
Issue of ordinary shares, net of forfeitures | ' | 0 | 0 | 0 | ' |
Balance b end of year | ' | 6,254,949 | 6,254,949 | 6,254,949 | 6,254,949 |
Par value per share | ' | $0.10 | $0.10 | ' | ' |
Service Provider | Class A | ' | ' | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' | ' | ' |
Shares authorized for issuance in relation to share purchase options granted to service provider | ' | 300,000 | 300,000 | ' | ' |
Shares available for future issuance | ' | 20,000 | 250,000 | ' | ' |
Stock Compensation Plan | Class A | ' | ' | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' | ' | ' |
Shares authorized for the company's stock incentive plan | ' | 3,500,000 | 3,500,000 | ' | ' |
Stock Compensation Plan | Service Provider | Class A | ' | ' | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' | ' | ' |
Shares available for future issuance | ' | 961,587 | 1,136,504 | ' | ' |
GLRE | Cayman Islands | ' | ' | ' | ' | ' |
Increase (Decrease) in Common Stock [Roll Forward] | ' | ' | ' | ' | ' |
Minimum net worth requirement | ' | 449,429,000 | 120,000 | 120,000 | ' |
Insurance Regulations Minimum Capital Requirement | ' | 50,000,000 | ' | ' | ' |
Statutory capital and surplus | ' | 988,700,000 | ' | ' | ' |
Net income | ' | 229,800,000 | 15,300,000 | 10,300,000 | ' |
Amount of capital and surplus available for distribution as dividends | ' | 539,300,000 | ' | ' | ' |
GRIL | Ireland | ' | ' | ' | ' | ' |
Increase (Decrease) in Common Stock [Roll Forward] | ' | ' | ' | ' | ' |
Minimum net worth requirement | ' | 13,600,000 | 8,300,000 | ' | ' |
Statutory capital and surplus | ' | 46,100,000 | 42,500,000 | ' | ' |
Net income | ' | 3,600,000 | 1,800,000 | -1,600,000 | ' |
Amount of capital and surplus available for distribution as dividends | ' | $6,000,000 | ' | ' | ' |
SHAREBASED_COMPENSATION_Narrat
SHARE-BASED COMPENSATION Narrative (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Sep. 21, 2004 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Exercise price of share purchase options | $10 | ' | ' | ' |
Share Based Compensation Arrangement - Options Repurchased | 100,000 | ' | ' | ' |
Share purchase options exercised (shares) | ' | 230,000 | 0 | 50,000 |
Service provider share purchase options outstanding | ' | 20,000 | 250,000 | ' |
Share purchase options granted | ' | 38,197 | 45,290 | ' |
Expiration period after the grant date | ' | '10 years | '10 years | '10 years |
Grant date fair value of the options | ' | $13.09 | $11.04 | $10.32 |
Total compensation cost related to non-vested options not yet recognized | ' | $0.40 | $0.50 | $0.60 |
Number of stock options exercised | ' | 56,500 | 23,000 | 0 |
Intrinsic value of options exercised | ' | 0.8 | 0.2 | 0 |
Weighted average remaining contractual term for options outstanding | ' | '3 years 4 months | '4 years 1 month | ' |
Number of stock options exercisable | ' | 1,326,694 | 1,337,323 | ' |
Weighted-average exercise price | ' | $15.35 | $14.92 | ' |
Weighted-average remaining contractual term | ' | '3 years 0 months | '3 years 9 months | ' |
Aggregate intrinsic value of options outstanding | ' | 25.1 | 12.2 | ' |
Aggregate intrinsic value of options exercisable | ' | 24.4 | 12.1 | ' |
Number of options vested | ' | 45,871 | 36,323 | 85,000 |
Weighted average grant date fair value of options vested | ' | $11.08 | $10.55 | $9 |
General and Administrative Expense | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Share-based compensation expense | ' | 3.8 | 3.7 | 2.9 |
Stock Options | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Share-based compensation expense | ' | 0.6 | 0.6 | 0.5 |
Weighted average period for recognition | ' | '1 year 6 months | '1 year 6 months | '1 year 8 months |
Restricted Stock | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Cliff vesting period after date of issuance | ' | '3 years | ' | ' |
Restricted shares forfeited by employees who left the Company prior to the vesting period | ' | 16,826 | 7,492 | 79,616 |
Stock compensation expense relating to forfeited restricted shares reversed | ' | 0.2 | 0.2 | 0.8 |
Share-based compensation expense | ' | 3.2 | 3.1 | 2.4 |
Unrecognized compensation costs related to non-vested restricted shares | ' | 3.5 | 3.4 | 3 |
Weighted average period for recognition | ' | '1 year 8 months | '1 year 8 months | '1 year 7 months |
Total fair value of restricted shares vested | ' | $2.80 | $3.30 | $3.30 |
Number of non-vested RSUs, Granted | ' | 147,605 | 148,471 | ' |
RSUs | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Cliff vesting period after date of issuance | ' | '3 years | ' | ' |
Number of non-vested RSUs, Granted | ' | 5,941 | 0 | 0 |
Grant Date | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Vesting percentage | ' | 25.00% | 25.00% | ' |
Vesting In Year 1 | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Vesting percentage | ' | 25.00% | 25.00% | ' |
Vesting In Year 2 | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Vesting percentage | ' | 25.00% | 25.00% | ' |
Vesting In Year 3 | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Vesting percentage | ' | 25.00% | 25.00% | ' |
Director | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Cliff vesting period after date of issuance | ' | '1 year | ' | ' |
Class A | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Number of share purchase options granted to service provider (shares) | 400,000 | ' | ' | ' |
Number of shares issued as a result of share purchase options exercised | ' | 161,734 | ' | 25,843 |
Share purchase options granted | ' | 38,197 | 45,290 | ' |
Issuance of shares as a result of stock options exercised | ' | 52,173 | 23,000 | 0 |
Class A | Restricted Stock | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Restricted shares issued pursuant to stock incentive plan | ' | 111,231 | 112,477 | 99,573 |
Class A | Director | Restricted Stock | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Restricted shares issued pursuant to stock incentive plan | ' | 36,374 | 35,994 | 36,565 |
SHAREBASED_COMPENSATION_Restri
SHARE-BASED COMPENSATION Restricted Shares (Details) (Restricted Stock, USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Restricted Stock | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' | ' |
Number of non-vested shares, Balance at December 31, 2012 | 308,406 | 358,563 |
Number of non-vested RSUs, Granted | 147,605 | 148,471 |
Number of non-vested RSU's, Vested | -110,194 | -191,136 |
Number of non-vested RSU's, Forfeited | -16,826 | -7,492 |
Number of non-vested shares, Balance at December 31, 2013 | 328,991 | 308,406 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ' | ' |
Weighted average grant date fair value, Balance at December 31, 2012 | $24.93 | $21.03 |
Weighted average grant date fair value, Granted | $24.59 | $24.60 |
Weighted average grant date fair value, Vested | $25.08 | $17.34 |
Weighted average grant date fair value, Forfeited | $24.55 | $25.36 |
Weighted average grant date fair value, Balance at December 31, 2013 | $24.74 | $24.93 |
SHAREBASED_COMPENSATION_Black_
SHARE-BASED COMPENSATION Black Scholes option pricing model assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' |
Risk free rate | 2.85% | 1.50% | 2.27% |
Estimated volatility | 35.00% | 35.00% | 35.00% |
Expected term (in years) | '10 years | '10 years | '10 years |
Dividend yield | 0.00% | 0.00% | 0.00% |
Forfeiture rate | 0.00% | 0.00% | 0.00% |
SHAREBASED_COMPENSATION_Share_
SHARE-BASED COMPENSATION Share Based Compensation Options Rollfoward (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' | ' |
Number of options, Balance at beginning of period | 1,421,290 | 1,399,000 | ' |
Number of options, Granted | 38,197 | 45,290 | ' |
Number of options, Exercised | -56,500 | -23,000 | 0 |
Number of options, Forfeited | 0 | 0 | ' |
Number of options, Expired | 0 | 0 | ' |
Number of options, Balance at end of period | 1,402,987 | 1,421,290 | 1,399,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ' | ' | ' |
Weighted average exercise price, Balance at beginning of period | $15.36 | $15.06 | ' |
Weighted average exercise price, Granted | $26.44 | $23.80 | ' |
Weighted average exercise price, Exercised | $11.44 | $13.85 | ' |
Weighted average exercise price, Forfeited | $0 | $0 | ' |
Weighted average exercise price, Expired | $0 | $0 | ' |
Weighted average exercise price, Balance at end of period | $15.82 | $15.36 | $15.06 |
Share-based compensation arrangement by share-based payment award, Options, Weighted Average Grant Date Fair Value [Roll Forward] | ' | ' | ' |
Weighted average grant date fair value, Balance at beginning of period | $6.87 | $6.73 | ' |
Weighted average grant date fair value, Granted | $13.09 | $11.04 | $10.32 |
Weighted average grant date fair value, Exercised | $5.70 | $7.13 | ' |
Weighted average grant date fair value, Forfeited | $0 | $0 | ' |
Weighted average grant date fair value, Expired | $0 | $0 | ' |
Weighted average grant date fair value, Balance at end of period | $7.08 | $6.87 | $6.73 |
SHAREBASED_COMPENSATION_Restri1
SHARE-BASED COMPENSATION Restricted Units (Details) (RSUs, USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
RSUs | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' | ' | ' |
Number of non-vested shares, Balance at December 31, 2012 | 0 | ' | ' |
Number of non-vested restricted shares, Granted | 5,941 | 0 | 0 |
Number of non-vested restricted shares, Vested | 0 | ' | ' |
Number of non-vested restricted shares, Forfeited | 0 | ' | ' |
Number of non-vested shares, Balance at December 31, 2013 | 5,941 | 0 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ' | ' | ' |
Weighted average grant date fair value, Balance at December 31, 2012 | $0 | ' | ' |
Weighted average grant date fair value, Granted | $24.41 | ' | ' |
Weighted average grant date fair value, Vested | $0 | ' | ' |
Weighted average grant date fair value, Forfeited | $0 | ' | ' |
Weighted average grant date fair value, Balance at December 31, 2013 | $24.41 | $0 | ' |
NET_INVESTMENT_INCOME_Details
NET INVESTMENT INCOME (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net Investment Income [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Realized gains | ' | ' | ' | ' | ' | ' | ' | ' | $141,976 | $60,762 | $139,760 |
Change in unrealized gains | ' | ' | ' | ' | ' | ' | ' | ' | 154,791 | 67,569 | -75,719 |
Investment related foreign exchange gains (losses) | ' | ' | ' | ' | ' | ' | ' | ' | 19,305 | 3,682 | -6,953 |
Interest and dividend income | ' | ' | ' | ' | ' | ' | ' | ' | 22,265 | 21,131 | 17,528 |
Interest, dividend and other expenses | ' | ' | ' | ' | ' | ' | ' | ' | -47,665 | -38,545 | -30,837 |
Investment advisor compensation | ' | ' | ' | ' | ' | ' | ' | ' | -72,532 | -35,658 | -20,661 |
Net investment income | $83,306 | $49,448 | $24,247 | $61,139 | ($52,219) | $96,450 | ($36,896) | $71,606 | $218,140 | $78,941 | $23,118 |
Net investment return (loss) (percentage) | ' | ' | ' | ' | ' | ' | ' | ' | 19.60% | 7.10% | 2.10% |
TAXATION_Details
TAXATION (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Income Taxes [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Valuation allowance | $0 | ' | ' | ' | $0 | ' | ' | ' | $0 | $0 | ' | |
Current tax (expense) benefit | ' | ' | ' | ' | ' | ' | ' | ' | -534,000 | -246,000 | -226,000 | |
Tax recovered | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -169,000 | [1] | 0 |
Deferred tax (expense) benefit | ' | ' | ' | ' | ' | ' | ' | ' | -4,000 | -9,000 | -21,000 | |
Income tax (expense) benefit | 2,000 | -90,000 | -142,000 | -308,000 | 620,000 | -645,000 | 201,000 | -262,000 | -538,000 | -86,000 | -247,000 | |
Other Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Income Taxes [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Deferred tax asset | 50,000 | ' | ' | ' | 50,000 | ' | ' | ' | 50,000 | 50,000 | ' | |
Other Liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Income Taxes [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Current taxes payable | 300,000 | ' | ' | ' | 300,000 | ' | ' | ' | 300,000 | 300,000 | ' | |
Verdant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Income Taxes [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Tax rate for taxable income | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | ' | ' | |
GRIL | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Income Taxes [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Tax refunds received | ' | ' | ' | ' | ' | ' | ' | ' | ' | $200,000 | ' | |
GRIL | Ireland | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Income Taxes [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Tax rate for trading income | ' | ' | ' | ' | ' | ' | ' | ' | 12.50% | ' | ' | |
[1] | During the year ended December 31, 2012, $0.2 million of tax refunds were received by GRIL relating to its operating losses for the 2011 tax year which were carried back and applied against the taxes previously paid for the 2010 tax year. |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (Board of Directors Chairman, USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Investment Advisory Agreement | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Performance compensation full rate | 20.00% | ' | ' |
Performance compensation reduced rate | 10.00% | ' | ' |
Loss carry forward recoupment required | 150.00% | ' | ' |
Performance compensation expense | $54,200,000 | $18,800,000 | $5,400,000 |
Investment management fee rate - monthly | 0.13% | ' | ' |
Investment management fee rate - annual | 1.50% | ' | ' |
Investment management fee expense | 18,300,000 | 16,900,000 | 15,200,000 |
Service Agreement | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Investor relations fee monthly | $5,000 | ' | ' |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Line of Credit Facility [Line Items] | ' | ' |
Aggregate amount of letters of credit issued | $379,100,000 | $416,500,000 |
Total equity securities, restricted cash, and cash and cash equivalents fair value pledged as security against the letters of credit | 410,300,000 | 441,700,000 |
Financial Standby Letter of Credit | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Facility | 760,000,000 | ' |
Financial Standby Letter of Credit | Bank of America, N.A. | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Facility | 200,000,000 | ' |
Notice period required for termination | '90 days | ' |
Financial Standby Letter of Credit | Butterfield Bank (Cayman) Limited | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Facility | 60,000,000 | ' |
Notice period required for termination | '90 days | ' |
Financial Standby Letter of Credit | Citibank Europe plc | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Facility | 400,000,000 | ' |
Notice period required for termination | '120 days | ' |
Financial Standby Letter of Credit | JP Morgan Chase Bank N.A. | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Facility | $100,000,000 | ' |
Notice period required for termination | '120 days | ' |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES Lease (Details) | 12 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | ||
USD ($) | USD ($) | USD ($) | Specialist service agreement | Private and unlisted equities securities | Private and unlisted equities securities | GLRE | GLRE | GRIL | ||
USD ($) | USD ($) | USD ($) | Minimum | Maximum | EUR (€) | |||||
USD ($) | USD ($) | |||||||||
Operating Leased Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Annual rent payments | ' | ' | ' | ' | ' | ' | $300,000 | $500,000 | € 100,000 | |
Operating lease renewal option | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | |
Total rent expense related to leased office space | 500,000 | 400,000 | 300,000 | ' | ' | ' | ' | ' | ' | |
Operating lease obligations, 2014 | 557,000 | ' | ' | ' | ' | ' | ' | ' | ' | |
Operating lease obligations, 2015 | 557,000 | ' | ' | ' | ' | ' | ' | ' | ' | |
Operating lease obligations, 2015 | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | |
Operating lease obligations, 2016 | 466,000 | ' | ' | ' | ' | ' | ' | ' | ' | |
Operating lease obligations, 2018 | 233,000 | ' | ' | ' | ' | ' | ' | ' | ' | |
Operating lease obligations, Thereafter | 0 | ' | ' | ' | ' | ' | ' | ' | ' | |
Operating lease obligations, Total | 2,313,000 | ' | ' | ' | ' | ' | ' | ' | ' | |
Specialist service agreement and Private equity and limited partnerships, 2014 | ' | ' | ' | 700,000 | 6,280,000 | [1] | 20,800,000 | ' | ' | ' |
Specialist service agreement and Private equity and limited partnerships, 2015 | ' | ' | ' | 400,000 | 0 | [1] | ' | ' | ' | ' |
Specialist service agreement and Private equity and limited partnerships, 2016 | ' | ' | ' | 150,000 | 0 | [1] | ' | ' | ' | ' |
Specialist service agreement and Private equity and limited partnerships, 2017 | ' | ' | ' | 0 | 0 | [1] | ' | ' | ' | ' |
Specialist service agreement and Private equity and limited partnerships, 2018 | ' | ' | ' | 0 | 0 | [1] | ' | ' | ' | ' |
Specialist service agreement and Private equity and limited partnerships, Thereafter | ' | ' | ' | 0 | 0 | [1] | ' | ' | ' | ' |
Specialist service agreement and Private equity and limited partnerships, Total | ' | ' | ' | 1,250,000 | 6,280,000 | [1] | ' | ' | ' | ' |
2014 | 7,537,000 | ' | ' | ' | ' | ' | ' | ' | ' | |
2015 | 957,000 | ' | ' | ' | ' | ' | ' | ' | ' | |
2016 | 650,000 | ' | ' | ' | ' | ' | ' | ' | ' | |
2017 | 466,000 | ' | ' | ' | ' | ' | ' | ' | ' | |
2018 | 233,000 | ' | ' | ' | ' | ' | ' | ' | ' | |
Thereafter | 0 | ' | ' | ' | ' | ' | ' | ' | ' | |
Total | $9,843,000 | ' | ' | ' | ' | ' | ' | ' | ' | |
[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 schedulesB will be called during the year ended DecemberB 31, 2014. |
SEGMENT_REPORTING_Schedule_of_
SEGMENT REPORTING Schedule of Revenue by Major Customers (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment | |||||||||||
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of operating segments | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' |
Largest broker | $223,993 | $213,338 | $156,759 | $170,999 | $66,333 | $213,198 | $92,882 | $172,983 | $765,089 | $545,396 | $403,146 |
Customer Concentration Risk | Sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Largest broker | ' | ' | ' | ' | ' | ' | ' | ' | 401,454 | 354,206 | 347,275 |
Concentration risk, percentage | ' | ' | ' | ' | ' | ' | ' | ' | 74.90% | 82.70% | 87.30% |
Customer Concentration Risk | Sales | Largest broker | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Largest broker | ' | ' | ' | ' | ' | ' | ' | ' | 282,337 | 242,665 | 139,251 |
Concentration risk, percentage | ' | ' | ' | ' | ' | ' | ' | ' | 52.70% | 56.70% | 35.00% |
Customer Concentration Risk | Sales | 2nd largest broker | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Largest broker | ' | ' | ' | ' | ' | ' | ' | ' | 119,117 | 63,044 | 107,641 |
Concentration risk, percentage | ' | ' | ' | ' | ' | ' | ' | ' | 22.20% | 14.70% | 27.10% |
Customer Concentration Risk | Sales | 3rd largest broker | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Largest broker | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 48,497 | 50,985 |
Concentration risk, percentage | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | 11.30% | 12.80% |
Customer Concentration Risk | Sales | 4th largest broker | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Largest broker | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $49,398 |
Concentration risk, percentage | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | 0.00% | 12.40% |
SEGMENT_REPORTING_Schedule_of_1
SEGMENT REPORTING Schedule of Gross Premiums Written by Line of Business (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Gross premiums written | $124,775 | $148,765 | $135,198 | $126,964 | $123,994 | $67,644 | $83,986 | $152,220 | $535,702 | $427,844 | $397,659 | |||
Gross premiums by line of business as a percentage of total gross premiums | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 100.00% | 100.00% | |||
Total Property | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Gross premiums written | ' | ' | ' | ' | ' | ' | ' | ' | 214,585 | 157,034 | 175,527 | |||
Gross premiums by line of business as a percentage of total gross premiums | ' | ' | ' | ' | ' | ' | ' | ' | 40.00% | 36.70% | 44.20% | |||
Aviation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Gross premiums written | ' | ' | ' | ' | ' | ' | ' | ' | 168 | 0 | 0 | |||
Gross premiums by line of business as a percentage of total gross premiums | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | 0.00% | 0.00% | |||
Commercial lines | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Gross premiums written | ' | ' | ' | ' | ' | ' | ' | ' | 9,999 | 15,110 | 10,019 | |||
Gross premiums by line of business as a percentage of total gross premiums | ' | ' | ' | ' | ' | ' | ' | ' | 1.90% | 3.50% | 2.50% | |||
Energy | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Gross premiums written | ' | ' | ' | ' | ' | ' | ' | ' | 659 | 0 | 0 | |||
Gross premiums by line of business as a percentage of total gross premiums | ' | ' | ' | ' | ' | ' | ' | ' | 0.10% | 0.00% | 0.00% | |||
Motor physical damage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Gross premiums written | ' | ' | ' | ' | ' | ' | ' | ' | 57,952 | 60,262 | 7,026 | |||
Gross premiums by line of business as a percentage of total gross premiums | ' | ' | ' | ' | ' | ' | ' | ' | 10.80% | 14.10% | 1.80% | |||
Personal lines | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Gross premiums written | ' | ' | ' | ' | ' | ' | ' | ' | 145,807 | 81,662 | 158,482 | |||
Gross premiums by line of business as a percentage of total gross premiums | ' | ' | ' | ' | ' | ' | ' | ' | 27.20% | 19.10% | 39.90% | |||
Total Casualty | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Gross premiums written | ' | ' | ' | ' | ' | ' | ' | ' | 284,740 | 220,207 | 142,307 | |||
Gross premiums by line of business as a percentage of total gross premiums | ' | ' | ' | ' | ' | ' | ' | ' | 53.20% | 51.50% | 35.80% | |||
General liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Gross premiums written | ' | ' | ' | ' | ' | ' | ' | ' | -815 | [1] | 22,462 | [1] | 34,379 | [1] |
Gross premiums by line of business as a percentage of total gross premiums | ' | ' | ' | ' | ' | ' | ' | ' | -0.20% | [1] | 5.30% | [1] | 8.60% | [1] |
Marine liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Gross premiums written | ' | ' | ' | ' | ' | ' | ' | ' | 1,956 | 2,240 | 360 | |||
Gross premiums by line of business as a percentage of total gross premiums | ' | ' | ' | ' | ' | ' | ' | ' | 0.40% | 0.50% | 0.10% | |||
Motor liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Gross premiums written | ' | ' | ' | ' | ' | ' | ' | ' | 253,698 | 178,204 | 86,937 | |||
Gross premiums by line of business as a percentage of total gross premiums | ' | ' | ' | ' | ' | ' | ' | ' | 47.40% | 41.70% | 21.90% | |||
Professional liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Gross premiums written | ' | ' | ' | ' | ' | ' | ' | ' | 29,901 | 17,301 | 20,631 | |||
Gross premiums by line of business as a percentage of total gross premiums | ' | ' | ' | ' | ' | ' | ' | ' | 5.60% | 4.00% | 5.20% | |||
Total Specialty | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Gross premiums written | ' | ' | ' | ' | ' | ' | ' | ' | 36,377 | 50,603 | 79,825 | |||
Gross premiums by line of business as a percentage of total gross premiums | ' | ' | ' | ' | ' | ' | ' | ' | 6.80% | 11.80% | 20.00% | |||
Financial | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Gross premiums written | ' | ' | ' | ' | ' | ' | ' | ' | 3,498 | [1] | -256 | [1] | 12,364 | [1] |
Gross premiums by line of business as a percentage of total gross premiums | ' | ' | ' | ' | ' | ' | ' | ' | 0.70% | [1] | -0.10% | [1] | 3.10% | [1] |
Health | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Gross premiums written | ' | ' | ' | ' | ' | ' | ' | ' | 37,094 | 33,874 | 38,640 | |||
Gross premiums by line of business as a percentage of total gross premiums | ' | ' | ' | ' | ' | ' | ' | ' | 6.90% | 7.90% | 9.70% | |||
Workersb compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Gross premiums written | ' | ' | ' | ' | ' | ' | ' | ' | ($4,215) | [1] | $16,985 | [1] | $28,821 | [1] |
Gross premiums by line of business as a percentage of total gross premiums | ' | ' | ' | ' | ' | ' | ' | ' | -0.80% | [1] | 4.00% | [1] | 7.20% | [1] |
[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 | 12 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Gross premiums written | $124,775 | $148,765 | $135,198 | $126,964 | $123,994 | $67,644 | $83,986 | $152,220 | $535,702 | $427,844 | $397,659 | |||
Gross premiums by geographical area as a percentage of total gross premiums | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 100.00% | 100.00% | |||
U.S. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Gross premiums written | ' | ' | ' | ' | ' | ' | ' | ' | 497,044 | 399,082 | 353,999 | |||
Gross premiums by geographical area as a percentage of total gross premiums | ' | ' | ' | ' | ' | ' | ' | ' | 92.80% | 93.30% | 89.00% | |||
Worldwide | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Gross premiums written | ' | ' | ' | ' | ' | ' | ' | ' | 9,821 | [1] | 11,134 | [1] | 22,595 | [1] |
Gross premiums by geographical area as a percentage of total gross premiums | ' | ' | ' | ' | ' | ' | ' | ' | 1.80% | [1] | 2.60% | [1] | 5.70% | [1] |
Caribbean | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Gross premiums written | ' | ' | ' | ' | ' | ' | ' | ' | -95 | [2] | 328 | [2] | 300 | [2] |
Gross premiums by geographical area as a percentage of total gross premiums | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | [2] | 0.10% | [2] | 0.10% | [2] |
Europe | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Gross premiums written | ' | ' | ' | ' | ' | ' | ' | ' | $28,932 | $17,300 | $20,765 | |||
Gross premiums by geographical area as a percentage of total gross premiums | ' | ' | ' | ' | ' | ' | ' | ' | 5.40% | 4.00% | 5.20% | |||
[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. |
QUARTERLY_FINANCIAL_RESULTS_UN2
QUARTERLY FINANCIAL RESULTS (UNAUDITED) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross premiums written | $124,775 | $148,765 | $135,198 | $126,964 | $123,994 | $67,644 | $83,986 | $152,220 | $535,702 | $427,844 | $397,659 |
Gross premiums ceded | -1,855 | -2,389 | -2,514 | 3,978 | 30 | 30,637 | 4,602 | -10,994 | -2,780 | 24,275 | -46,920 |
Net premiums written | 122,920 | 146,376 | 132,684 | 130,942 | 124,024 | 98,281 | 88,588 | 141,226 | 532,922 | 452,119 | 350,739 |
Change in net unearned premium reserves | 18,617 | 17,515 | 316 | -21,471 | -5,470 | 18,276 | 41,426 | -39,637 | 14,977 | 14,595 | 29,036 |
Net amount | 141,537 | 163,891 | 133,000 | 109,471 | 118,554 | 116,557 | 130,014 | 101,589 | 547,899 | 466,714 | 379,775 |
Net investment income | 83,306 | 49,448 | 24,247 | 61,139 | -52,219 | 96,450 | -36,896 | 71,606 | 218,140 | 78,941 | 23,118 |
Other income (expense), net | -850 | -1 | -488 | 389 | -2 | 191 | -236 | -212 | -950 | -259 | 253 |
Total revenues | 223,993 | 213,338 | 156,759 | 170,999 | 66,333 | 213,198 | 92,882 | 172,983 | 765,089 | 545,396 | 403,146 |
Expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss and loss adjustment expenses incurred, net | 99,504 | 94,366 | 78,345 | 66,278 | 89,333 | 126,624 | 87,337 | 63,307 | 338,493 | 366,601 | 241,690 |
Acquisition costs, net | 34,119 | 53,521 | 42,936 | 41,296 | 34,971 | 33,820 | 37,905 | 36,025 | 171,872 | 142,721 | 138,751 |
General and administrative expenses | 4,930 | 7,085 | 5,943 | 3,760 | 3,919 | 4,637 | 4,359 | 4,624 | 21,718 | 17,539 | 13,892 |
Total expenses | 138,553 | 154,972 | 127,224 | 111,334 | 128,223 | 165,081 | 129,601 | 103,956 | 532,083 | 526,861 | 394,333 |
Income (loss) before income tax expense | 85,440 | 58,366 | 29,535 | 59,665 | -61,890 | 48,117 | -36,719 | 69,027 | 233,006 | 18,535 | 8,813 |
Income tax expense | 2 | -90 | -142 | -308 | 620 | -645 | 201 | -262 | -538 | -86 | -247 |
Net income including non-controlling interest | 85,442 | 58,276 | 29,393 | 59,357 | -61,270 | 47,472 | -36,518 | 68,765 | 232,468 | 18,449 | 8,566 |
Net loss attributable to non-controlling interest in joint venture | -1,512 | -1,740 | -893 | -2,624 | 667 | -1,335 | 449 | -3,632 | -6,769 | -3,851 | -1,797 |
Net income | $83,930 | $56,536 | $28,500 | $56,733 | ($60,603) | $46,137 | ($36,069) | $65,133 | $225,699 | $14,598 | $6,769 |
Earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings Per Share, Basic | $2.27 | $1.53 | $0.77 | $1.54 | ($1.65) | $1.26 | ($0.98) | $1.78 | $6.13 | $0.40 | $0.19 |
Earnings Per Share, Diluted | $2.22 | $1.50 | $0.76 | $1.52 | ($1.65) | $1.23 | ($0.98) | $1.75 | $6.01 | $0.39 | $0.18 |
Weighted average number of ordinary shares used in the determination of earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average shares outstanding - basic | 36,908,919 | 36,875,716 | 36,830,046 | 36,730,315 | 36,702,128 | 36,678,653 | 36,660,267 | 36,550,953 | 36,838,128 | 36,702,128 | 36,548,466 |
Weighted Average Number of Shares Outstanding, Diluted | 37,746,223 | 37,645,053 | 37,537,500 | 37,424,894 | 36,702,128 | 37,402,725 | 36,660,267 | 37,279,371 | 37,585,167 | 37,361,338 | 37,286,454 |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (Investment Advisory Agreement, Board of Directors Chairman) | 12 Months Ended | 0 Months Ended |
Dec. 31, 2013 | Jan. 02, 2014 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ' | ' |
Venture agreement renewal period | ' | '3 years |
Notification period prior to termination | ' | '90 days |
Investment management fee rate - annual | 1.50% | 1.50% |
Performance compensation full rate | 20.00% | 20.00% |
Performance compensation reduced rate | 10.00% | 10.00% |
Loss carry forward recoupment required | 150.00% | 150.00% |
SCHEDULE_I_Details
SCHEDULE I (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' |
Cost | $1,079,901 |
Fair Value | 1,393,679 |
Balance Sheet Value | 1,393,679 |
Debt instruments, trading, at fair value | ' |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' |
Cost | 5,877 |
Fair Value | 4,312 |
Balance Sheet Value | 4,312 |
Common stocks, listed | ' |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' |
Cost | 923,594 |
Fair Value | 1,256,577 |
Balance Sheet Value | 1,256,577 |
Exchange traded funds | ' |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' |
Cost | 50,253 |
Fair Value | 25,579 |
Balance Sheet Value | 25,579 |
Total equity securities, trading, at fair value | ' |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' |
Cost | 973,847 |
Fair Value | 1,282,156 |
Balance Sheet Value | 1,282,156 |
Total investments, trading | ' |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' |
Cost | 979,724 |
Fair Value | 1,286,468 |
Balance Sheet Value | 1,286,468 |
Private and unlisted equities securities | ' |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' |
Cost | 54,633 |
Fair Value | 60,888 |
Balance Sheet Value | 60,888 |
Commodities | ' |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' |
Cost | 45,544 |
Fair Value | 46,323 |
Balance Sheet Value | 46,323 |
Total other investments, at fair value | ' |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' |
Cost | 100,177 |
Fair Value | 107,211 |
Balance Sheet Value | $107,211 |
SCHEDULE_II_Condensed_Balance_
SCHEDULE II Condensed Balance Sheets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Assets | ' | ' | ' | ' |
Cash and cash equivalents | $3,722 | $21,890 | $42,284 | $45,540 |
Notes receivable | 16,049 | 19,330 | ' | ' |
Total assets | 3,095,276 | 2,722,753 | ' | ' |
Liabilities | ' | ' | ' | ' |
Total liabilities | 2,008,972 | 1,862,343 | ' | ' |
Equity | ' | ' | ' | ' |
Share capital | 3,705 | 3,670 | ' | ' |
Additional paid-in capital | 496,622 | 492,469 | ' | ' |
Retained earnings | 551,268 | 325,569 | ' | ' |
Shareholdersb equity attributable to shareholders | 1,051,595 | 821,708 | ' | ' |
Total liabilities and equity | 3,095,276 | 2,722,753 | ' | ' |
Parent Company | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Cash and cash equivalents | 5 | 14 | 25 | 25 |
Investment in subsidiaries | 1,035,423 | 807,148 | ' | ' |
Notes receivable | 3,728 | 1,675 | ' | ' |
Due from subsidiaries | 16,247 | 14,241 | ' | ' |
Total assets | 1,055,403 | 823,078 | ' | ' |
Liabilities | ' | ' | ' | ' |
Due to subsidiaries | 3,808 | 1,370 | ' | ' |
Total liabilities | 3,808 | 1,370 | ' | ' |
Equity | ' | ' | ' | ' |
Share capital | 3,705 | 3,670 | ' | ' |
Additional paid-in capital | 496,622 | 492,469 | ' | ' |
Retained earnings | 551,268 | 325,569 | ' | ' |
Shareholdersb equity attributable to shareholders | 1,051,595 | 821,708 | ' | ' |
Total liabilities and equity | $1,055,403 | $823,078 | ' | ' |
SCHEDULE_II_Condensed_Statemen
SCHEDULE II Condensed Statements of Income (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | $223,993 | $213,338 | $156,759 | $170,999 | $66,333 | $213,198 | $92,882 | $172,983 | $765,089 | $545,396 | $403,146 |
Expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
General and administrative expenses | 4,930 | 7,085 | 5,943 | 3,760 | 3,919 | 4,637 | 4,359 | 4,624 | 21,718 | 17,539 | 13,892 |
Income before income tax expense | 85,440 | 58,366 | 29,535 | 59,665 | -61,890 | 48,117 | -36,719 | 69,027 | 233,006 | 18,535 | 8,813 |
Net income | 83,930 | 56,536 | 28,500 | 56,733 | -60,603 | 46,137 | -36,069 | 65,133 | 225,699 | 14,598 | 6,769 |
Parent Company | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment income | ' | ' | ' | ' | ' | ' | ' | ' | 1,100 | 810 | 740 |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 1,100 | 810 | 740 |
Expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
General and administrative expenses | ' | ' | ' | ' | ' | ' | ' | ' | 3,735 | 3,603 | 2,884 |
Income before income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | -2,635 | -2,793 | -2,144 |
Equity in earnings of consolidated subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 228,334 | 17,391 | 8,913 |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | $225,699 | $14,598 | $6,769 |
SCHEDULE_II_Condensed_Statemen1
SCHEDULE II Condensed Statements of Cash Flows (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash provided by (used in) operating activities | ' | ' | ' |
Net income | $225,699 | $14,598 | $6,769 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities | ' | ' | ' |
Share-based compensation expense, net of forfeitures | 3,675 | 3,689 | 2,931 |
Net change in | ' | ' | ' |
Total operating activities | -92,697 | -50,592 | -25,920 |
Investing activities | ' | ' | ' |
Change in notes receivable, net | 3,281 | -1,893 | -3,232 |
Net cash provided by investing activities | 74,016 | 29,880 | 22,664 |
Financing activities | ' | ' | ' |
Net proceeds from exercise of stock options | 513 | 318 | 0 |
Net cash provided by financing activities | 513 | 318 | 0 |
Net decrease in cash and cash equivalents | -18,168 | -20,394 | -3,256 |
Cash and cash equivalents at beginning of the period | 21,890 | 42,284 | 45,540 |
Cash and cash equivalents at end of the period | 3,722 | 21,890 | 42,284 |
Parent Company | ' | ' | ' |
Cash provided by (used in) operating activities | ' | ' | ' |
Net income | 225,699 | 14,598 | 6,769 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities | ' | ' | ' |
Equity in earnings of consolidated subsidiaries | -228,334 | -17,391 | -8,913 |
Share-based compensation expense, net of forfeitures | 3,675 | 3,689 | 2,884 |
Net change in | ' | ' | ' |
Due from subsidiaries | -2,006 | -52 | -1,523 |
Due to subsidiaries | 2,438 | 587 | 783 |
Total operating activities | 1,472 | 1,431 | 0 |
Investing activities | ' | ' | ' |
Change in notes receivable, net | -2,053 | -1,675 | 0 |
Contributed surplus to subsidiaries, net | -59 | 85 | 0 |
Net cash provided by investing activities | -1,994 | -1,760 | 0 |
Financing activities | ' | ' | ' |
Net proceeds from exercise of stock options | 513 | 318 | 0 |
Net cash provided by financing activities | 513 | 318 | 0 |
Net decrease in cash and cash equivalents | -9 | -11 | 0 |
Cash and cash equivalents at beginning of the period | 14 | 25 | 25 |
Cash and cash equivalents at end of the period | $5 | $14 | $25 |
SCHEDULE_III_Details
SCHEDULE III (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Supplementary Insurance Information [Abstract] | ' | ' | ' |
Deferred acquisition costs, net | $51,797 | $59,177 | $68,725 |
Reserves for losses and loss adjustment expenses b gross | 329,894 | 356,470 | 241,279 |
Unearned premiums b gross | 173,057 | 188,185 | 225,735 |
Net premiums earned | 547,899 | 466,714 | 379,775 |
Net investment income (loss) | 218,140 | 78,941 | 23,118 |
Net losses, and loss adjustment expenses | 338,493 | 366,601 | 241,690 |
Amortization of deferred acquisition costs | 171,872 | 142,721 | 138,751 |
Other operating expenses | 21,718 | 17,539 | 13,892 |
Gross premiums written | $535,702 | $427,844 | $397,659 |
SCHEDULE_IV_Details
SCHEDULE IV (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net amount | $141,537 | $163,891 | $133,000 | $109,471 | $118,554 | $116,557 | $130,014 | $101,589 | $547,899 | $466,714 | $379,775 |
Property & Casualty | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Direct gross premiums | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Premiums ceded to other companies | ' | ' | ' | ' | ' | ' | ' | ' | 2,780 | -24,275 | 46,920 |
Premiums assumed from other companies | ' | ' | ' | ' | ' | ' | ' | ' | 535,702 | 427,844 | 397,659 |
Net amount | ' | ' | ' | ' | ' | ' | ' | ' | $532,922 | $452,119 | $350,739 |
Percentage of amount assumed to net | ' | ' | ' | ' | ' | ' | ' | ' | 101.00% | 95.00% | 113.00% |