Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | ||
Sep. 30, 2014 | Oct. 31, 2014 | Oct. 31, 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-Q | ' | ' |
Document Period End Date | 30-Sep-14 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'Q3 | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 31,086,062 | 6,254,895 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investments | ' | ' |
Debt instruments, trading, at fair value | $23,648 | $4,312 |
Equity securities, trading, at fair value | 1,214,510 | 1,282,156 |
Other investments, at fair value | 149,926 | 107,211 |
Total investments | 1,388,084 | 1,393,679 |
Cash and cash equivalents | 8,802 | 3,722 |
Restricted cash and cash equivalents | 1,367,168 | 1,334,074 |
Financial contracts receivable, at fair value | 37,103 | 104,048 |
Reinsurance balances receivable | 165,515 | 167,340 |
Loss and loss adjustment expenses recoverable | 11,214 | 16,829 |
Deferred acquisition costs, net | 38,245 | 51,797 |
Unearned premiums ceded | 5,264 | 3,173 |
Notes receivable | 2,046 | 16,049 |
Other assets | 7,454 | 4,565 |
Total assets | 3,030,895 | 3,095,276 |
Liabilities | ' | ' |
Securities sold, not yet purchased, at fair value | 1,113,300 | 1,111,690 |
Financial contracts payable, at fair value | 30,133 | 18,857 |
Due to prime brokers | 266,677 | 314,702 |
Loss and loss adjustment expense reserves | 278,504 | 329,894 |
Unearned premium reserves | 133,921 | 173,057 |
Reinsurance balances payable | 43,051 | 38,789 |
Funds withheld | 7,462 | 10,126 |
Other liabilities | 12,234 | 11,857 |
Performance compensation payable to related party | 10,852 | 0 |
Total liabilities | 1,896,134 | 2,008,972 |
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, 31,078,295 (2013: 30,791,865): Class B: par value $0.10; authorized, 25,000,000; issued and outstanding, 6,254,895 (2013: 6,254,949)) | 3,733 | 3,705 |
Additional paid-in capital | 499,638 | 496,622 |
Retained earnings | 600,172 | 551,268 |
Shareholdersb equity attributable to shareholders | 1,103,543 | 1,051,595 |
Non-controlling interest in joint venture | 31,218 | 34,709 |
Total equity | 1,134,761 | 1,086,304 |
Total liabilities and equity | $3,030,895 | $3,095,276 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Shareholders' equity | ' | ' |
Preferred share capital, par value (in dollars per share) | $0.10 | $0.10 |
Preferred share capital, authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred share capital, issued (in shares) | 0 | 0 |
Common Class A | ' | ' |
Shareholders' equity | ' | ' |
Ordinary share capital, par value (in dollars per share) | $0.10 | $0.10 |
Ordinary share capital, authorized (in shares) | 100,000,000 | 100,000,000 |
Ordinary share capital, issued (in shares) | 31,078,295 | 30,791,865 |
Ordinary share capital, outstanding (in shares) | 31,078,295 | 30,791,865 |
Common Class B | ' | ' |
Shareholders' equity | ' | ' |
Ordinary share capital, par value (in dollars per share) | $0.10 | $0.10 |
Ordinary share capital, authorized (in shares) | 25,000,000 | 25,000,000 |
Ordinary share capital, issued (in shares) | 6,254,895 | 6,254,949 |
Ordinary share capital, outstanding (in shares) | 6,254,895 | 6,254,949 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Revenues | ' | ' | ' | ' |
Gross premiums written | $97,200 | $148,765 | $249,755 | $410,927 |
Gross premiums ceded | -2,706 | -2,389 | -11,405 | -925 |
Net premiums written | 94,494 | 146,376 | 238,350 | 410,002 |
Change in net unearned premium reserves | -15,003 | 17,515 | 40,685 | -3,640 |
Net premiums earned | 79,491 | 163,891 | 279,035 | 406,362 |
Net investment income (loss) | -54,027 | 49,448 | 49,755 | 134,834 |
Other income (expense), net | -22 | -1 | 401 | -100 |
Total revenues | 25,442 | 213,338 | 329,191 | 541,096 |
Expenses | ' | ' | ' | ' |
Loss and loss adjustment expenses incurred, net | 53,028 | 94,366 | 177,035 | 238,989 |
Acquisition costs, net | 22,478 | 53,521 | 85,844 | 137,753 |
General and administrative expenses | 3,327 | 7,085 | 16,727 | 16,788 |
Total expenses | 78,833 | 154,972 | 279,606 | 393,530 |
Income (loss) before income tax expense | -53,391 | 58,366 | 49,585 | 147,566 |
Income tax (expense) benefit | 254 | -90 | 828 | -540 |
Net income (loss) including non-controlling interest | -53,137 | 58,276 | 50,413 | 147,026 |
Loss (income) attributable to non-controlling interest in joint venture | 1,369 | -1,740 | -1,509 | -5,257 |
Net income (loss) | ($51,768) | $56,536 | $48,904 | $141,769 |
Earnings (loss) per share | ' | ' | ' | ' |
Basic | ($1.40) | $1.53 | $1.31 | $3.85 |
Diluted | ($1.40) | $1.50 | $1.29 | $3.78 |
Weighted average number of ordinary shares used in the determination of earnings and loss per share | ' | ' | ' | ' |
Basic | 36,984,650 | 36,875,716 | 37,214,809 | 36,820,199 |
Diluted | 36,984,650 | 37,645,053 | 37,874,627 | 37,541,623 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED 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, 2012 | $860,410 | $3,670 | $492,469 | $325,569 | $821,708 | $38,702 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Issue of Class A ordinary shares, net of forfeitures | 527 | 18 | 509 | 0 | 527 | 0 |
Share-based compensation expense, net of forfeitures | 2,632 | 0 | 2,632 | 0 | 2,632 | 0 |
Non-controlling interest withdrawal from joint venture, net | -10,000 | 0 | 0 | 0 | 0 | -10,000 |
Income attributable to non-controlling interest in joint venture | 5,257 | 0 | 0 | 0 | 0 | 5,257 |
Net income | 141,769 | 0 | 0 | 141,769 | 141,769 | 0 |
Balance at Sep. 30, 2013 | 1,000,595 | 3,688 | 495,610 | 467,338 | 966,636 | 33,959 |
Balance at Dec. 31, 2013 | 1,086,304 | 3,705 | 496,622 | 551,268 | 1,051,595 | 34,709 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Issue of Class A ordinary shares, net of forfeitures | 28 | 28 | 0 | 0 | 28 | 0 |
Share-based compensation expense, net of forfeitures | 3,016 | 0 | 3,016 | 0 | 3,016 | 0 |
Non-controlling interest withdrawal from joint venture, net | -5,000 | 0 | 0 | 0 | 0 | -5,000 |
Income attributable to non-controlling interest in joint venture | 1,509 | 0 | 0 | 0 | 0 | 1,509 |
Net income | 48,904 | 0 | 0 | 48,904 | 48,904 | 0 |
Balance at Sep. 30, 2014 | $1,134,761 | $3,733 | $499,638 | $600,172 | $1,103,543 | $31,218 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Net income | $48,904 | $141,769 |
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 | 182,681 | -69,660 |
Net realized gains on investments and financial contracts | -266,708 | -117,271 |
Foreign exchange (gains) losses on restricted cash and cash equivalents, net | 6,032 | -15,205 |
Income attributable to non-controlling interest in joint venture | 1,509 | 5,257 |
Share-based compensation expense, net of forfeitures | 3,044 | 2,646 |
Depreciation expense | 334 | 222 |
Net change in | ' | ' |
Reinsurance balances receivable | 1,825 | -21,843 |
Loss and loss adjustment expenses recoverable | 5,615 | 16,455 |
Deferred acquisition costs, net | 13,552 | -2,906 |
Unearned premiums ceded | -2,091 | 473 |
Other assets | -3,223 | -27 |
Loss and loss adjustment expense reserves | -51,390 | -30,818 |
Unearned premium reserves | -39,136 | 3,125 |
Reinsurance balances payable | 4,262 | 3,630 |
Funds withheld | -2,664 | -7,946 |
Other liabilities | 377 | 1,530 |
Performance compensation payable to related party | 10,852 | 33,818 |
Net cash used in operating activities | -86,225 | -56,751 |
Investing activities | ' | ' |
Purchases of investments, trading | -898,614 | -540,222 |
Sales of investments, trading | 1,059,145 | 790,513 |
Purchases of financial contracts | -16,697 | -57,748 |
Dispositions of financial contracts | 101,522 | 67,282 |
Securities sold, not yet purchased | 710,954 | 700,299 |
Dispositions of securities sold, not yet purchased | -791,357 | -652,999 |
Change in due to prime brokers | -48,025 | -87,414 |
Change in restricted cash and cash equivalents, net | -39,126 | -94,542 |
Change in notes receivable, net | 18,503 | 3,546 |
Non-controlling interest withdrawal from joint venture | -5,000 | -10,000 |
Fixed assets additions | 0 | 684 |
Net cash provided by investing activities | 91,305 | 118,031 |
Financing activities | ' | ' |
Net proceeds from exercise of stock options | 0 | 513 |
Net cash provided by financing activities | 0 | 513 |
Net increase in cash and cash equivalents | 5,080 | 61,793 |
Cash and cash equivalents at beginning of the period | 3,722 | 21,890 |
Cash and cash equivalents at end of the period | 8,802 | 83,683 |
Supplementary information | ' | ' |
Interest paid in cash | 17,302 | 19,907 |
Interest received in cash | 419 | 793 |
Income tax paid in cash | $0 | $260 |
ORGANIZATION_AND_BASIS_OF_PRES
ORGANIZATION AND BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2014 | |
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 unaudited condensed consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete consolidated financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2013. In the opinion of management, these unaudited condensed consolidated financial statements reflect all of the normal recurring adjustments considered necessary for a fair presentation of the Company’s financial position and results of operations as of the dates and for the periods presented. | |
The results for the nine months ended September 30, 2014 are not necessarily indicative of the results expected for the full calendar year. |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
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 condensed consolidated financial statements and the reported amounts of income and expenses during the period. Actual results could differ from these estimates. | ||||||||||||
Restricted Cash and Cash Equivalents | ||||||||||||
The Company is required to maintain certain cash in segregated accounts with prime brokers and derivative counterparties. The amount of restricted cash held by prime brokers is primarily used to support the liability created from securities sold, not yet purchased, and to collateralize the letters of credit issued under certain letter of credit facilities (see Notes 4 and 8). The amount of cash encumbered varies depending on the market value of the securities sold, not yet purchased, and letters of credit issued. In addition, derivative counterparties require cash collateral to support the current value of any amounts that may be due to the counterparty based on the value of the underlying financial instrument. | ||||||||||||
Deferred Acquisition Costs | ||||||||||||
Policy acquisition costs, such as commission and brokerage costs, relate directly to, and vary with, the writing of reinsurance contracts. Acquisition costs relating solely to bound contracts are deferred subject to ultimate recoverability and are amortized over the related contract term. The Company evaluates the recoverability of deferred acquisition costs by determining if the sum of future earned premiums and anticipated investment income is greater than the expected future claims and expenses. If a loss is probable on the unexpired portion of policies in force, a premium deficiency loss is recognized. At September 30, 2014 and December 31, 2013, the deferred acquisition costs were considered fully recoverable and no premium deficiency loss was recorded. | ||||||||||||
Acquisition costs also include profit commissions, which are expensed when incurred. Profit commissions are calculated and accrued based on the expected loss experience for contracts and recorded when the current loss estimate indicates that a profit commission is probable under the contract terms. As of September 30, 2014, $12.1 million (December 31, 2013: $10.5 million) of profit commission reserves were included in reinsurance balances payable on the condensed consolidated balance sheets. For the three and nine months ended September 30, 2014, $0.4 million and $1.8 million, respectively (2013: $0.9 million and $2.1 million, respectively), of net profit commission expense was included in acquisition costs on the condensed consolidated statements of income. | ||||||||||||
Loss and Loss Adjustment Expense Reserves and Recoverable | ||||||||||||
The Company establishes reserves for contracts based on estimates of the ultimate cost of all losses including losses incurred but not reported ("IBNR"). These estimated ultimate reserves are based on the Company’s own actuarial estimates derived from reports received from ceding companies, industry data and historical experience. These estimates are reviewed by the Company periodically on a contract by contract basis and adjusted as necessary. Since reserves are estimates, the final settlement of losses may vary from the reserves established and any adjustments to the estimates, which may be material, are recorded in the period they are determined. | ||||||||||||
Loss and loss adjustment expenses recoverable include the amounts due from retrocessionaires for unpaid loss and loss adjustment expenses on retrocession agreements. Ceded losses incurred but not reported are estimated based on the Company’s actuarial estimates. These estimates are reviewed periodically and adjusted when deemed necessary. The Company may not be able to ultimately recover the loss and loss adjustment expense recoverable amounts due to the retrocessionaires’ inability to pay. The Company regularly evaluates the financial condition of its retrocessionaires and records provisions for uncollectible reinsurance expenses recoverable when recovery is no longer probable. | ||||||||||||
Notes Receivable | ||||||||||||
Notes receivable include promissory notes receivable from third party entities. These notes are recorded at cost along with accrued interest, if any, which approximates the fair value. The Company regularly reviews all notes receivable individually for impairment and records provisions for uncollectible and non-performing notes. The Company places notes on non-accrual status when the value of the note is not considered impaired but there is uncertainty as to the collection of interest based on the terms of the note. The Company resumes accrual of interest on a note when none of the principal or interest remains past due, 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. | ||||||||||||
At September 30, 2014, there were no notes receivable placed on non-accrual status (December 31, 2013: $10.5 million). During the nine months ended September 30, 2013, the Company had recorded an impairment charge of $6.0 million relating to the accrued interest and principal on a note placed on non-accrual status. During 2014, the Company sold this note receivable to a third party for a gain of $4.5 million. There were no other impairment charges for the three and nine months ended September 30, 2014 and 2013. | ||||||||||||
At September 30, 2014, the notes receivable earned interest at an annual interest rate of 13.5% and had a remaining maturity term of one year. Interest income and realized gains or losses on sale of notes receivable are included under net investment income in the condensed consolidated statements of income. Impairment charges are also included under net investment income in the condensed consolidated statements of income. | ||||||||||||
At September 30, 2014, included in the notes receivable balance was $0.0 million of accrued interest (December 31, 2013: $0.1 million). Based on management’s assessment, the recorded values of the notes receivable, net of valuation allowance, at September 30, 2014 and December 31, 2013, were expected to be fully collectible and therefore no other provision for uncollectible amounts was deemed necessary at September 30, 2014 or December 31, 2013. | ||||||||||||
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 insurance risk, or a contract provides retroactive reinsurance. Any losses on such contracts are charged to earnings immediately. Any gains relating to such contracts are deferred and amortized over the estimated remaining settlement period. All such deferred gains are included in reinsurance balances payable in the condensed consolidated balance sheets. Amortized gains are recorded in the condensed consolidated statements of income as other income. At September 30, 2014, included in the condensed consolidated balance sheets under reinsurance balances receivable were $0.7 million (December 31, 2013: $1.6 million) of deposit assets. For the three and nine months ended September 30, 2014, there was $0.0 million and $0.1 million, respectively, included in other income relating to losses on deposit accounted contracts (2013: $0.0 million and $0.5 million, respectively). For the three and nine months ended September 30, 2014 and 2013, there was no gain on deposit accounted contracts recorded. | ||||||||||||
Fixed Assets | ||||||||||||
Fixed assets are included in other assets on the condensed consolidated balance sheets and are recorded at cost when acquired. Fixed assets are comprised of computer software, furniture and fixtures and leasehold improvements and are depreciated, using the straight-line method, over their estimated useful lives, which are five years for both computer software, and furniture and fixtures. Leasehold improvements are amortized over the lesser of the estimated useful lives of the assets or remaining lease term. The Company periodically reviews fixed assets that have finite lives, and that are not held for sale, for impairment by comparing the carrying value of the assets to their estimated future undiscounted cash flows. For the nine months ended September 30, 2014 and 2013, there were no impairments in fixed assets. | ||||||||||||
At September 30, 2014, the cost, accumulated depreciation and net book values of the fixed assets were as follows: | ||||||||||||
Cost | Accumulated depreciation | |||||||||||
Net book value | ||||||||||||
($ in thousands) | ||||||||||||
Computer software | $ | 556 | $ | (259 | ) | $ | 297 | |||||
Furniture and fixtures | 620 | (424 | ) | 196 | ||||||||
Leasehold improvements | 2,002 | (900 | ) | 1,102 | ||||||||
Total | $ | 3,178 | $ | (1,583 | ) | $ | 1,595 | |||||
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 | |||||
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 (loss) in the condensed consolidated statements of income. | ||||||||||||
Dividend income and expense are recorded on the ex-dividend date. The ex-dividend date is the date as of when the underlying security must have been traded to be eligible for the dividend declared. Interest income and interest expense are recorded on an accrual basis. | ||||||||||||
Derivative Financial Instruments | ||||||||||||
U.S. GAAP requires that an entity recognize all derivatives in the balance sheet at fair value. It also requires that unrealized gains and losses resulting from changes in fair value be included in income or comprehensive income, depending on whether the instrument qualifies as a hedge transaction, and if so, the type of hedge transaction. The Company’s derivative financial instrument assets are included in financial contracts receivable. Derivative financial instrument liabilities are generally included in financial contracts payable. The Company's derivatives do not qualify as hedges for financial reporting purposes and are recorded in the condensed consolidated balance sheets on a gross basis and not offset against any collateral pledged or received. Pursuant to the International Swaps and Derivatives Association ("ISDA") master agreements, securities lending agreements and other derivatives agreements, the Company and its counterparties typically have the ability to net certain payments owed to each other in specified circumstances. In addition, in the event a party to one of the ISDA master agreements, securities lending agreements or other derivatives agreements defaults, or a transaction is otherwise subject to termination, the non-defaulting party generally has the right to set off against payments owed to the defaulting party or collateral held by the non-defaulting party. | ||||||||||||
Financial Contracts | ||||||||||||
The Company enters into financial contracts with counterparties as part of its investment strategy. Financial contracts which include total return swaps, credit default swaps ("CDS"), futures, options, currency forwards and other derivative instruments are recorded at their fair value with any unrealized gains and losses included in net investment income (loss) in the condensed consolidated statements of income. Financial contracts receivable represents derivative contracts whereby, based upon the contract's current fair value, the Company will be entitled to receive payments upon settlement of the contract. Financial contracts payable represents derivative contracts whereby, based upon the contract's current fair value, the Company will be obligated to make payments upon settlement of the contract. | ||||||||||||
Total return swap agreements, included on the condensed consolidated balance sheets as financial contracts receivable and financial contracts payable, are derivative financial instruments whereby the Company is either entitled to receive or obligated to pay the product of a notional amount multiplied by the movement in an underlying security, which the Company may not own, over a specified time frame. In addition, the Company may also be obligated to pay or receive other payments based on interest rates, dividend payments and receipts, or foreign exchange movements during a specified period. The Company measures its rights or obligations to the counterparty based on the fair value movements of the underlying security together with any other payments due. These contracts are carried at fair value, based on observable inputs (Level 2 inputs) with the resultant unrealized gains and losses reflected in net investment income (loss) in the condensed 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 (loss) in the condensed consolidated statements of income. | ||||||||||||
Financial contracts may also include exchange traded futures or options contracts that are based on the movement of a particular index, equity security, commodity, currency or interest rate. Where such contracts are traded in an active market, the Company’s obligations or rights on these contracts are recorded at fair value based on the observable quoted prices of the same or similar financial contracts in an active market (Level 1) or on broker quotes which reflect market information based on actual transactions (Level 2). Amounts invested in exchange traded options and over the counter ("OTC") options are recorded either as an asset or liability at inception. Subsequent to initial recognition, unexpired exchange traded option contracts are recorded at fair value based on quoted prices in active markets (Level 1). For OTC options or exchange traded options where a quoted price in an active market is not available, fair values are derived based upon observable inputs (Level 2) such as multiple quotes from brokers and market makers, which are considered to be binding. | ||||||||||||
The Company purchases and sells CDS for strategic investment purposes. A CDS is a derivative instrument that provides protection against an investment loss due to specified credit or default events of a reference entity. The seller of a CDS guarantees to pay the buyer a specified amount if the reference entity defaults on its obligations or fails to perform. The buyer of a CDS pays a premium over time to the seller in exchange for obtaining this protection. A CDS trading in an active market is valued at fair value based on broker or market maker quotes for identical instruments in an active market (Level 2) or based on the current credit spreads on identical contracts (Level 2). | ||||||||||||
Comprehensive Income (Loss) | ||||||||||||
The Company has no other comprehensive income or loss, other than the net income or loss disclosed in the condensed consolidated statements of income. | ||||||||||||
Earnings (Loss) Per Share | ||||||||||||
Basic earnings per share are based on the weighted average number of common shares and participating securities outstanding during the period. Diluted earnings per share includes the dilutive effect of restricted stock units ("RSU") and additional potential common shares issuable when stock options are exercised and are determined using the treasury stock method. The Company treats its unvested restricted stock as participating securities in accordance with U.S. GAAP, which requires that unvested stock awards which contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid (referred to as "participating securities"), be included in the number of shares outstanding for both basic and diluted earnings per share calculations. In the event of a net loss, all RSUs, stock options outstanding and all participating securities are excluded from the calculation of both basic and diluted loss per share since their inclusion would be anti-dilutive. | ||||||||||||
Three months ended September 30 | Nine months ended September 30 | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Weighted average shares outstanding - basic | 36,984,650 | 36,875,716 | 37,214,809 | 36,820,199 | ||||||||
Effect of dilutive service provider share-based awards | — | 157,281 | 11,383 | 150,039 | ||||||||
Effect of dilutive employee and director share-based awards | — | 612,056 | 648,435 | 571,385 | ||||||||
Weighted average shares outstanding - diluted | 36,984,650 | 37,645,053 | 37,874,627 | 37,541,623 | ||||||||
Anti-dilutive stock options outstanding | — | 180,000 | — | 218,197 | ||||||||
Participating securities excluded from calculation of loss per share | 334,090 | — | — | — | ||||||||
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. | ||||||||||||
Recently Adopted Accounting Standards | ||||||||||||
None. |
FINANCIAL_INSTRUMENTS
FINANCIAL INSTRUMENTS | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
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. | |||||||||||||||||||||||||
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 (loss) in the condensed consolidated statements of income. | |||||||||||||||||||||||||
The following table presents the Company’s investments, categorized by the level of the fair value hierarchy as of September 30, 2014: | |||||||||||||||||||||||||
Fair value measurements as of September 30, 2014 | |||||||||||||||||||||||||
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 | $ | — | $ | 23,026 | $ | 622 | $ | 23,648 | |||||||||||||||||
Listed equity securities | 1,210,244 | 4,266 | — | 1,214,510 | |||||||||||||||||||||
Commodities | 99,016 | — | — | 99,016 | |||||||||||||||||||||
Private and unlisted equity securities | — | — | 50,910 | 50,910 | |||||||||||||||||||||
Financial contracts receivable | 8,026 | 29,077 | — | 37,103 | |||||||||||||||||||||
$ | 1,317,286 | $ | 56,369 | $ | 51,532 | $ | 1,425,187 | ||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||
Listed equity securities, sold not yet purchased | $ | (848,950 | ) | $ | — | $ | — | $ | (848,950 | ) | |||||||||||||||
Debt instruments, sold not yet purchased | — | (264,350 | ) | — | (264,350 | ) | |||||||||||||||||||
Financial contracts payable | — | (30,133 | ) | — | (30,133 | ) | |||||||||||||||||||
$ | (848,950 | ) | $ | (294,483 | ) | $ | — | $ | (1,143,433 | ) | |||||||||||||||
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 reconciliation of the balances for all investments measured at fair value using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2014: | |||||||||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||
Three months ended September 30, 2014 | Nine months ended September 30, 2014 | ||||||||||||||||||||||||
Debt instruments | Private and unlisted equity securities | Total | Debt instruments | Private and unlisted equity securities | Total | ||||||||||||||||||||
($ in thousands) | ($ in thousands) | ||||||||||||||||||||||||
Beginning balance | $ | 601 | $ | 50,827 | $ | 51,428 | $ | 527 | $ | 46,323 | $ | 46,850 | |||||||||||||
Purchases | — | 961 | 961 | — | 3,032 | 3,032 | |||||||||||||||||||
Sales | — | (10 | ) | (10 | ) | — | (2,071 | ) | (2,071 | ) | |||||||||||||||
Issuances | — | — | — | — | — | — | |||||||||||||||||||
Settlements | — | — | — | — | — | — | |||||||||||||||||||
Total realized and unrealized gains (losses) included in earnings, net | 21 | 3,176 | 3,197 | 95 | 7,670 | 7,765 | |||||||||||||||||||
Transfers into Level 3 | — | — | — | — | — | — | |||||||||||||||||||
Transfers out of Level 3 | — | (4,044 | ) | (4,044 | ) | — | (4,044 | ) | (4,044 | ) | |||||||||||||||
Ending balance | $ | 622 | $ | 50,910 | $ | 51,532 | $ | 622 | $ | 50,910 | $ | 51,532 | |||||||||||||
During the three and nine months ended September 30, 2014, $4.0 million securities, at fair value based on the date of transfer, were transferred from Level 3 to Level 2 as these securities began actively trading on a listed exchange during the third quarter. However, due to lock-up restrictions on these securities, they were classified as Level 2 upon transfer until the lock-up period expires. During the nine months ended September 30, 2014, $10.0 million of securities at fair value based on the date of transfer, were transferred from Level 2 to Level 1 as the lock-up period restrictions on those securities expired. There were no other transfers between Level 1, Level 2 or Level 3 during the three and nine months ended September 30, 2014. | |||||||||||||||||||||||||
The following table presents the reconciliation of the balances for all investments measured at fair value using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2013: | |||||||||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||
Three months ended September 30, 2013 | Nine months ended September 30, 2013 | ||||||||||||||||||||||||
Debt instruments | Private and unlisted equity securities | Total | Debt instruments | Private and unlisted equity securities | Total | ||||||||||||||||||||
($ in thousands) | ($ in thousands) | ||||||||||||||||||||||||
Beginning balance | $ | 4,838 | $ | 43,257 | $ | 48,095 | $ | 260 | $ | 38,801 | $ | 39,061 | |||||||||||||
Purchases | 3,604 | 416 | 4,020 | 8,230 | 31,756 | 39,986 | |||||||||||||||||||
Sales | — | (829 | ) | (829 | ) | (28 | ) | (6,934 | ) | (6,962 | ) | ||||||||||||||
Issuances | — | — | — | — | — | — | |||||||||||||||||||
Settlements | — | — | — | — | — | — | |||||||||||||||||||
Total realized and unrealized gains (losses) included in earnings, net | — | 2,198 | 2,198 | (20 | ) | 1,055 | 1,035 | ||||||||||||||||||
Transfers into Level 3 | — | — | — | — | — | — | |||||||||||||||||||
Transfers out of Level 3 | — | (4,945 | ) | (4,945 | ) | — | (24,581 | ) | (24,581 | ) | |||||||||||||||
Ending balance | $ | 8,442 | $ | 40,097 | $ | 48,539 | $ | 8,442 | $ | 40,097 | $ | 48,539 | |||||||||||||
During the three and nine months ended September 30, 2013, $4.9 million of securities, at fair value based on the date of transfer, were transferred from Level 3 to Level 2, as these securities began actively trading on a listed exchange during the third quarter of 2013. However due to lock-up restrictions on these securities, they were classified as Level 2 upon transfer until the lock-up period expires. Additionally, during the nine months ended September 30, 2013, $19.6 million of securities at fair value based on the date of transfer, were transferred from Level 3 to Level 1 as these securities began actively trading on a listed exchange and there were no lock-up restrictions on these securities. During the nine months ended September 30, 2013, $2.4 million of securities at fair value based on the date of transfer, were transferred from Level 2 to Level 1 as the lock-up period restrictions on those securities expired. There were no other transfers between Level 1, Level 2 or Level 3 during the three and nine months ended September 30, 2013. | |||||||||||||||||||||||||
For the three and nine months ended September 30, 2014, included in net investment income (loss) in the condensed consolidated statements of income were net realized gains relating to Level 3 securities of $0.0 million and $0.3 million, respectively (2013: net realized gains of $0.3 million and $0.6 million, respectively). | |||||||||||||||||||||||||
For Level 3 classified securities held as of the reporting date, net unrealized gains for the three and nine months ended September 30, 2014 of $2.4 million and $6.7 million, respectively (three and nine months ended September 30, 2013: net unrealized gain of $1.2 million and net unrealized loss of $1.5 million, respectively), were included in net investment income in the condensed consolidated statements of income. | |||||||||||||||||||||||||
Investments | |||||||||||||||||||||||||
Debt instruments, trading | |||||||||||||||||||||||||
At September 30, 2014, the following investments were included in debt instruments: | |||||||||||||||||||||||||
Cost/ | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
amortized | gains | losses | value | ||||||||||||||||||||||
cost | |||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||
Corporate debt – U.S. | $ | 2,116 | $ | — | $ | (1,494 | ) | $ | 622 | ||||||||||||||||
Corporate debt – Non U.S. | 5,870 | 204 | (666 | ) | 5,408 | ||||||||||||||||||||
Sovereign debt – Non U.S. | 17,712 | 202 | (296 | ) | 17,618 | ||||||||||||||||||||
Total debt instruments | $ | 25,698 | $ | 406 | $ | (2,456 | ) | $ | 23,648 | ||||||||||||||||
At December 31, 2013, the following investments were included in debt instruments: | |||||||||||||||||||||||||
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 | ||||||||||||||||
The maturity distribution for debt instruments held at September 30, 2014 and December 31, 2013 was as follows: | |||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||||||||
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 | 2,109 | 1,568 | — | — | |||||||||||||||||||||
More than ten years | 23,589 | 22,080 | 5,877 | 4,312 | |||||||||||||||||||||
$ | 25,698 | $ | 23,648 | $ | 5,877 | $ | 4,312 | ||||||||||||||||||
Investment in Equity Securities, Trading | |||||||||||||||||||||||||
At September 30, 2014, the following long positions were included in equity securities, trading: | |||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
gains | losses | value | |||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||
Equities – listed | $ | 991,691 | $ | 243,728 | $ | (43,859 | ) | $ | 1,191,560 | ||||||||||||||||
Exchange traded funds | 42,126 | — | (19,176 | ) | 22,950 | ||||||||||||||||||||
Total equity securities | $ | 1,033,817 | $ | 243,728 | $ | (63,035 | ) | $ | 1,214,510 | ||||||||||||||||
At December 31, 2013, the following long positions were included in equity securities, trading: | |||||||||||||||||||||||||
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 | ||||||||||||||||||||
Total equity securities | $ | 973,847 | $ | 361,695 | $ | (53,386 | ) | $ | 1,282,156 | ||||||||||||||||
Other Investments | |||||||||||||||||||||||||
"Other investments" include commodities and private and unlisted equity securities. As of September 30, 2014 and December 31, 2013, commodities were comprised of gold bullion. | |||||||||||||||||||||||||
At September 30, 2014, the following securities were included in other investments: | |||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
gains | losses | value | |||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||
Commodities | $ | 95,815 | $ | 3,201 | $ | — | $ | 99,016 | |||||||||||||||||
Private and unlisted equity securities | 38,299 | 14,707 | (2,096 | ) | 50,910 | ||||||||||||||||||||
$ | 134,114 | $ | 17,908 | $ | (2,096 | ) | $ | 149,926 | |||||||||||||||||
At December 31, 2013, the following securities were included in other investments: | |||||||||||||||||||||||||
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 | |||||||||||||||||
As of September 30, 2014, included in private and unlisted equity securities are investments in private equity funds with a fair value of $11.7 million (December 31, 2013: $41.6 million) determined based on unadjusted net asset values reported by the managers of these securities. Some of these values were reported from periods prior to September 30, 2014. Also included in private and unlisted equity securities are investments in private equity funds with a fair value of $32.8 million (December 31, 2013: nil) determined based on the price of a transaction agreement between a third party and the private equity funds. Since the closing of the transaction agreement is subject to various shareholder and regulatory approvals, the purchase price was discounted to allow for the risk of the transaction not closing. As of December 31, 2013, these private equity funds were valued at $26.3 million based on unadjusted net asset values reported by the fund managers. | |||||||||||||||||||||||||
The private equity funds have varying lock-up periods and as of September 30, 2014, 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 September 30, 2014, the Company had $9.4 million (December 31, 2013: $6.3 million) of unfunded commitments relating to private equity funds whose fair values are determined based on unadjusted net asset values reported by the managers of these securities. These commitments are included in the amounts presented in the schedule of commitments and contingencies in Note 8 of these condensed consolidated financial statements. | |||||||||||||||||||||||||
Investments in Securities Sold, Not Yet Purchased | |||||||||||||||||||||||||
At September 30, 2014, the following securities were included in investments in securities sold, not yet purchased: | |||||||||||||||||||||||||
Proceeds | Unrealized gains | Unrealized losses | Fair value | ||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||
Equities – listed | $ | (763,551 | ) | $ | 64,963 | $ | (128,315 | ) | $ | (826,903 | ) | ||||||||||||||
Exchange traded funds | (21,297 | ) | 25 | (774 | ) | (22,046 | ) | ||||||||||||||||||
Corporate debt – U.S. | (7,066 | ) | 316 | (11 | ) | (6,761 | ) | ||||||||||||||||||
Sovereign debt – Non U.S. | (246,589 | ) | 3,331 | (14,332 | ) | (257,590 | ) | ||||||||||||||||||
$ | (1,038,503 | ) | $ | 68,635 | $ | (143,432 | ) | $ | (1,113,300 | ) | |||||||||||||||
At December 31, 2013, the following securities were included in investments in securities sold, not yet purchased: | |||||||||||||||||||||||||
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 | ) | |||||||||||||||
Financial Contracts | |||||||||||||||||||||||||
As of September 30, 2014 and December 31, 2013, the Company had entered into total return swaps, CDS, options, warrants, rights, futures, forwards and interest rate options contracts with various financial institutions to meet certain investment objectives. Under the terms of each of these financial contracts, the Company is either entitled to receive or is obligated to make payments which are based on the product of a formula contained within each contract that includes the change in the fair value of the underlying or reference security. | |||||||||||||||||||||||||
At September 30, 2014, the fair values of financial contracts outstanding were as follows: | |||||||||||||||||||||||||
Financial Contracts | Listing | Notional amount of | Fair value of net assets | ||||||||||||||||||||||
currency (1) | underlying instruments | (obligations) | |||||||||||||||||||||||
on financial | |||||||||||||||||||||||||
contracts | |||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||
Financial contracts receivable | |||||||||||||||||||||||||
Forwards | KRW | 30,202 | $ | 1,167 | |||||||||||||||||||||
Futures | USD | 43,454 | 5,306 | ||||||||||||||||||||||
Interest rate options | USD | 78,000 | — | ||||||||||||||||||||||
Put options | USD | 272,799 | 11,873 | ||||||||||||||||||||||
Total return swaps – equities | GBP/HKD/RON/USD | 155,717 | 16,037 | ||||||||||||||||||||||
Warrants and rights on listed equities | EUR/USD | 4,874 | 2,720 | ||||||||||||||||||||||
Total financial contracts receivable, at fair value | $ | 37,103 | |||||||||||||||||||||||
Financial contracts payable | |||||||||||||||||||||||||
Credit default swaps, purchased – corporate debt | USD | 221,198 | $ | (1,681 | ) | ||||||||||||||||||||
Credit default swaps, purchased – sovereign debt | USD | 251,467 | (2,345 | ) | |||||||||||||||||||||
Total return swaps – equities | EUR/GBP/HKD/INR | 116,899 | (26,107 | ) | |||||||||||||||||||||
Total financial contracts payable, at fair value | $ | (30,133 | ) | ||||||||||||||||||||||
(1) USD =S Dollar; JPY =apanese Yen; EUR =uro; GBP =ritish Pound; HKD =ong Kong Dollar; KRW =orean Won; RON =omanian New Leu; INR =ndian Rupee. | |||||||||||||||||||||||||
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 (1) | 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 | ) | ||||||||||||||||||||||
(1) USD =S Dollar; JPY =apanese Yen; EUR =uro; GBP =ritish Pound; HKD =ong Kong Dollar; KRW =orean Won; RON =omanian New Leu; INR =ndian Rupee. | |||||||||||||||||||||||||
As of September 30, 2014 and December 31, 2013, 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 and the Chinese Yuan, denominated in U.S. dollars. | |||||||||||||||||||||||||
During the three and nine months ended September 30, 2014 and 2013, 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 | Gain (loss) on derivatives recognized in income | ||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
($ in thousands) | ($ in thousands) | ||||||||||||||||||||||||
Credit default swaps, purchased – corporate debt | Net investment income (loss) | $ | (11 | ) | $ | (589 | ) | $ | (157 | ) | $ | (2,847 | ) | ||||||||||||
Credit default swaps, purchased – sovereign debt | Net investment income (loss) | (72 | ) | (942 | ) | (286 | ) | (957 | ) | ||||||||||||||||
Forwards | Net investment income (loss) | 1,289 | (1,282 | ) | (1,442 | ) | 5,780 | ||||||||||||||||||
Futures | Net investment income (loss) | 8,617 | 3,628 | 4,657 | 4,677 | ||||||||||||||||||||
Interest rate options | Net investment income (loss) | — | (97 | ) | (26 | ) | (62 | ) | |||||||||||||||||
Options, warrants, and rights | Net investment income (loss) | 240 | (12,025 | ) | (17,868 | ) | 20,681 | ||||||||||||||||||
Total return swaps – equities | Net investment income (loss) | (5,642 | ) | 38,825 | 24,432 | 59,507 | |||||||||||||||||||
Total | $ | 4,421 | $ | 27,518 | $ | 9,310 | $ | 86,779 | |||||||||||||||||
The Company generally does not enter into derivatives for risk management or hedging purposes. The volume of derivative activities varies from period to period depending on potential investment opportunities. | |||||||||||||||||||||||||
For the three and nine months ended September 30, 2014, the Company’s volume of derivative activities (based on notional amounts) was as follows: | |||||||||||||||||||||||||
2014 | Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||||
Derivatives not designated as hedging instruments | Entered | Exited | Entered | Exited | |||||||||||||||||||||
($ in thousands) | ($ in thousands) | ||||||||||||||||||||||||
Forwards | $ | — | $ | 10,943 | $ | — | $ | 74,134 | |||||||||||||||||
Futures | — | 21,570 | 128,823 | 192,134 | |||||||||||||||||||||
Options, warrants and rights (1) | 230,132 | — | 757,232 | 128,147 | |||||||||||||||||||||
Total return swaps | 20,985 | 77,600 | 96,546 | 127,148 | |||||||||||||||||||||
Total | $ | 251,117 | $ | 110,113 | $ | 982,601 | $ | 521,563 | |||||||||||||||||
(1) Exited amount excludes options which expired or were exercised during the period. | |||||||||||||||||||||||||
For the three and nine months ended September 30, 2013, the Company’s volume of derivative activities (based on notional amounts) was as follows: | |||||||||||||||||||||||||
2013 | Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||||
Derivatives not designated as hedging instruments | Entered | Exited | Entered | Exited | |||||||||||||||||||||
($ in thousands) | ($ in thousands) | ||||||||||||||||||||||||
Forwards | $ | 30,817 | $ | — | $ | 417,754 | $ | 115,884 | |||||||||||||||||
Futures | — | 12,778 | 218,519 | 180,027 | |||||||||||||||||||||
Interest rate options (1) | — | 95,400 | — | 376,385 | |||||||||||||||||||||
Options, warrants and rights (1) | 232,530 | 272,988 | 765,509 | 814,812 | |||||||||||||||||||||
Total return swaps | 16,606 | 6,736 | 187,862 | 54,846 | |||||||||||||||||||||
Total | $ | 279,953 | $ | 387,902 | $ | 1,589,644 | $ | 1,541,954 | |||||||||||||||||
(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 September 30, 2014, the gross and net amounts of derivative instruments and the cash collateral applicable to derivative instruments were as follows: | |||||||||||||||||||||||||
September 30, 2014 | (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 | Financial instruments available for offset | Cash collateral (received) pledged | Net amount of asset (liability) | |||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||
Financial contracts receivable | $ | 37,103 | $ | — | $ | 37,103 | $ | (18,469 | ) | $ | (1,929 | ) | $ | 16,705 | |||||||||||
Financial contracts payable | (30,133 | ) | — | (30,133 | ) | 18,469 | 11,664 | — | |||||||||||||||||
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 | Financial instruments available for offset | Cash collateral (received) pledged | Net amount of asset (liability) | |||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||
Financial contracts receivable | $ | 104,048 | $ | — | $ | 104,048 | $ | (18,857 | ) | $ | (49,422 | ) | $ | 35,769 | |||||||||||
Financial contracts payable | (18,857 | ) | — | (18,857 | ) | 18,857 | — | — | |||||||||||||||||
DUE_TO_PRIME_BROKERS
DUE TO PRIME BROKERS | 9 Months Ended |
Sep. 30, 2014 | |
Due to and from Broker-Dealers and Clearing Organizations [Abstract] | ' |
DUE TO PRIME BROKERS | ' |
DUE TO PRIME BROKERS | |
As of September 30, 2014, the amount due to prime brokers is comprised of margin-borrowing from prime brokers relating to investments purchased on margin, as well as the margin-borrowing for providing collateral to support some of the Company’s outstanding letters of credit (see Note 8). Under term margin agreements and certain letter of credit facility agreements, the Company pledges certain investment securities to borrow cash from the prime brokers. The borrowed cash is placed in a custodial account in the name of the Company and this custodial account provides collateral for any letters of credit issued. Since there is no legal right of offset, the Company’s liability for the cash borrowed from the prime brokers is included on the condensed consolidated balance sheets as due to prime brokers while the cash held in the custodial account is included on the condensed consolidated balance sheets as restricted cash and cash equivalents. At September 30, 2014, the amounts due to prime brokers included $174.9 million (December 31, 2013: $202.2 million) of cash borrowed under the term margin agreements to provide collateral for letters of credit facilities and $91.8 million (December 31, 2013: $112.5 million) of borrowing relating to investment purchases. | |
Greenlight Re's investment guidelines, among other stipulations in the guidelines, allow for up to 15% (GRIL: 5%) net margin leverage for extended periods of time and up to 30% (GRIL: 20%) net margin leverage for periods of less than 30 days. |
RETROCESSION
RETROCESSION | 9 Months Ended |
Sep. 30, 2014 | |
Reinsurance Disclosures [Abstract] | ' |
RETROCESSION | ' |
RETROCESSION | |
The Company, from time to time, purchases retrocessional coverage for one or more of the following reasons: to manage its overall exposure, to reduce its net liability on individual risks, to obtain additional underwriting capacity and to balance its underwriting portfolio. Additionally, retrocession can be used as a mechanism to share the risks and rewards of business written and therefore can be used as a tool to align the Company's interests with those of its counterparties. The Company currently has coverages that provide for recovery of a portion of loss and loss expenses incurred on certain contracts. Loss and loss adjustment expense recoverable from the retrocessionaires are recorded as assets. | |
For the three months ended September 30, 2014, loss and loss adjustment expenses incurred of $53.0 million (2013: $94.4 million) reported on the condensed consolidated statements of income are net of loss and loss adjustment expenses recovered and recoverable of $0.5 million (2013: $0.3 million). For the nine months ended September 30, 2014, loss and loss adjustment expenses incurred of $177.0 million (2013: $239.0 million) reported on the condensed consolidated statements of income are net of loss and loss adjustment expenses recovered and recoverable of $1.6 million (2013: negative $10.5 million). The negative loss and loss adjustment expenses recovered for the nine months ended September 30, 2013 were due to reversal of loss reserves on retrocession contracts that were novated during 2013. | |
Retrocession contracts do not relieve the Company from its obligations to the insureds. Failure of retrocessionaires to honor their obligations could result in losses to the Company. At September 30, 2014, the Company had losses recoverable of $11.2 million (December 31, 2013: $16.8 million) with unrated retrocessionaires. At September 30, 2014 and December 31, 2013, $2.4 million and $4.0 million, respectively, of losses recoverable from unrated retrocessionaires were secured by cash collateral held by the Company, while $6.5 million and nil, respectively, were secured through a trust account and the remainder was secured by other collateral in the form of guarantees. | |
At September 30, 2014, an uncollateralized loss reserve recoverable of $2.3 million (December 31, 2013: $12.8 million) was related to an unrated retrocessionaire who is contractually obligated to post collateral for the entire balance 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, whereupon the retrocessionaire challenged the posting of security. During 2014, the retrocession contract was novated to an affiliate of the retrocessionaire, which partially funded a trust account with collateral for the benefit of the Company. | |
Additionally, at September 30, 2014, the parent entity of the retrocessionaire was also delinquent in its payment to the Company of $11.0 million (December 31, 2013: $12.0 million) relating to ceding commission adjustments which are included in reinsurance balances receivable. The Company initiated legal proceedings in order to enforce its contractual rights. By Opinion and Order dated July 28, 2014, the United States District Court for the Southern District of New York (the "Court") granted, in part, the Company's summary judgment motion. Subsequently, on October 15, 2014, the Court entered the judgment in the Company's favor. | |
The Company regularly evaluates the financial condition of all its retrocessionaires to assess the ability of the retrocessionaires to honor their obligations. At September 30, 2014 and December 31, 2013, no provision for uncollectible losses recoverable was considered necessary. |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2014 | |
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 are an affiliate of David Einhorn, Chairman of the Company’s Board of Directors. | |
Pursuant to the venture agreement, performance allocation equal to 20% of the net income of the Company’s share of the account managed by DME Advisors is allocated, subject to a loss carry forward provision, to DME’s account. The loss carry forward provision allows DME to earn a reduced performance allocation of 10% on net investment income in any year subsequent to the year in which the investment account incurs a loss, until all the losses are recouped and an additional amount equal to 150% of the aggregate investment loss is earned. DME is not entitled to earn a performance allocation in a year in which the investment portfolio incurs a loss. For the three and nine months ended September 30, 2014, performance allocation of $(13.2) million and $10.9 million, respectively (2013: $11.9 million and $33.8 million, respectively), was included in net investment income. The negative performance allocation for the three months ended September 30, 2014 was due to the reversal of previously accrued performance allocation expense resulting from negative investment returns for the third quarter of 2014. | |
Pursuant to the advisory agreement, a monthly management fee, equal to 0.125% (1.5% on an annual basis) of the Company’s investment account managed by DME Advisors, is paid to DME Advisors. Included in the net investment income for the three and nine months ended September 30, 2014 were management fees of $5.3 million and $15.4 million, respectively (2013: $4.6 million and $13.4 million, respectively). The management fees have been fully paid as of September 30, 2014. | |
Pursuant to the venture and advisory agreements, the Company has agreed to indemnify DME and DME Advisors for any expense, loss, liability, or damage arising out of any claim asserted or threatened in connection with DME Advisors serving as the Company’s investment advisor. The Company will reimburse DME and DME Advisors for reasonable costs and expenses of investigating and/or defending such claims provided such claims were not caused due to gross negligence, breach of contract or misrepresentation by DME or DME Advisors. For the nine months ended September 30, 2014, there were no indemnification payments made by the Company. | |
Service Agreement | |
The Company has entered into a service agreement with DME Advisors, pursuant to which DME Advisors provides investor relations services to the Company for compensation of five thousand dollars per month (plus expenses). The agreement is automatically renewed annually until terminated by either the Company or DME Advisors for any reason with 30 days prior written notice to the other party. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | ' | |||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||||||||||||||||||
Letters of Credit | ||||||||||||||||||||||||||||
At September 30, 2014, the Company had the following letter of credit facilities, which automatically renew each year unless terminated by either party in accordance with the required notice period: | ||||||||||||||||||||||||||||
Facility | Termination Date | Notice period required for termination | ||||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||
Bank of America, N.A. | $ | 200,000 | July 20, 2015 | 90 days prior to termination date | ||||||||||||||||||||||||
Butterfield Bank (Cayman) Limited | 60,000 | June 30, 2015 | 90 days prior to termination date | |||||||||||||||||||||||||
Citibank Europe plc | 400,000 | October 11, 2015 | 120 days prior to termination date | |||||||||||||||||||||||||
JP Morgan Chase Bank N.A. | 100,000 | January 27, 2016 | 120 days prior to termination date | |||||||||||||||||||||||||
$ | 760,000 | |||||||||||||||||||||||||||
As of September 30, 2014, an aggregate amount of $321.4 million (December 31, 2013: $379.1 million) in letters of credit were issued under the above facilities. Under the facilities, the Company provides collateral that may consist of equity securities, restricted cash, and cash and cash equivalents. As of September 30, 2014, total equity securities, restricted cash, and cash and cash equivalents with a fair value in the aggregate of $356.4 million (December 31, 2013: $410.3 million) were pledged as security against the letters of credit issued (also see Note 4). Each of the facilities contain customary events of default and restrictive covenants, including but not limited to, limitations on liens on collateral, transactions with affiliates, mergers and sales of assets, as well as solvency and maintenance of certain minimum pledged equity requirements, and restricts issuance of any debt without the consent of the letter of credit provider. Additionally, if an event of default exists, as defined in the letter of credit facilities, Greenlight Re will be prohibited from paying dividends to its parent company. The Company was in compliance with all the covenants of each of these facilities as of September 30, 2014 and December 31, 2013. | ||||||||||||||||||||||||||||
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 September 30, 2014. | ||||||||||||||||||||||||||||
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), adjusted to the prevailing market rates for each of three subsequent five-year terms. GRIL has the option to terminate the lease agreement in 2016 and 2021. Included in the schedule below are the net minimum lease payment obligations relating to this lease as of September 30, 2014. | ||||||||||||||||||||||||||||
The total rent expense related to leased office space for the three and nine months ended September 30, 2014 was $0.1 million and $0.4 million, respectively (2013: $0.1 million and $0.3 million, respectively). | ||||||||||||||||||||||||||||
Specialist Service Agreement | ||||||||||||||||||||||||||||
The Company has entered into a service agreement with a specialist service provider for the provision of administration and support in developing and maintaining business relationships, reviewing and recommending programs and managing risks relating to certain specialty lines of business. The specialist service provider does not have any authority to bind the Company to any reinsurance contracts. Under the terms of the agreement, the Company has committed to quarterly payments to the specialist service provider. If the agreement is terminated, the Company is obligated to make minimum payments for twelve months starting on September 1 of the year in which the agreement is terminated, 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 the agreement as of September 30, 2014. | ||||||||||||||||||||||||||||
Private Equity and Limited Partnerships | ||||||||||||||||||||||||||||
From time to time, the Company makes investments in private equity vehicles. As part of the Company's participation in such private equity investments, the Company may make funding commitments. As of September 30, 2014, the Company had commitments to invest an additional $9.4 million (December 31, 2013: $6.3 million) in private equity investments. Included in the schedule below are the minimum payment obligations relating to these investments as of September 30, 2014. | ||||||||||||||||||||||||||||
Schedule of Commitments and Contingencies | ||||||||||||||||||||||||||||
The following is a schedule of future minimum payments required under the above commitments: | ||||||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | ||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||
Operating lease obligations | $ | 139 | $ | 557 | $ | 500 | $ | 466 | $ | 233 | $ | — | $ | 1,895 | ||||||||||||||
Specialist service agreement | 225 | 750 | 300 | — | — | — | 1,275 | |||||||||||||||||||||
Private equity and limited partnerships (1) | 9,395 | — | — | — | — | — | 9,395 | |||||||||||||||||||||
$ | 9,759 | $ | 1,307 | $ | 800 | $ | 466 | $ | 233 | $ | — | $ | 12,565 | |||||||||||||||
(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 | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||||||
SEGMENT REPORTING | ' | ||||||||||||||||||||||||||||
SEGMENT REPORTING | |||||||||||||||||||||||||||||
The Company manages its business on the basis of one operating segment, Property & Casualty Reinsurance. | |||||||||||||||||||||||||||||
The following tables provide a breakdown of the Company's gross premiums written by line of business and by geographic area of risks insured for the periods indicated: | |||||||||||||||||||||||||||||
Gross Premiums Written by Line of Business | |||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | ||||||||||||||||||||||||||||
Property | |||||||||||||||||||||||||||||
Aviation | $ | — | — | % | $ | — | — | % | $ | 290 | 0.1 | % | $ | 96 | — | % | |||||||||||||
Commercial | 1,953 | 2 | 789 | 0.5 | 9,183 | 3.7 | 10,523 | 2.6 | |||||||||||||||||||||
Energy | — | — | — | — | 2,131 | 0.9 | 1,553 | 0.4 | |||||||||||||||||||||
Motor physical damage | 7,405 | 7.6 | 21,557 | 14.5 | 19,759 | 7.9 | 48,895 | 11.9 | |||||||||||||||||||||
Personal | 23,728 | 24.4 | 34,521 | 23.2 | 49,236 | 19.7 | 108,181 | 26.3 | |||||||||||||||||||||
Total Property | 33,086 | 34 | 56,867 | 38.2 | 80,599 | 32.3 | 169,248 | 41.2 | |||||||||||||||||||||
Casualty | |||||||||||||||||||||||||||||
General liability (1) | 4,260 | 4.4 | 1,668 | 1.1 | 7,176 | 2.9 | (544 | ) | (0.1 | ) | |||||||||||||||||||
Marine liability | 20 | — | — | — | 3,867 | 1.6 | 603 | 0.1 | |||||||||||||||||||||
Motor liability | 41,177 | 42.4 | 81,474 | 54.8 | 108,631 | 43.5 | 212,174 | 51.6 | |||||||||||||||||||||
Professional liability | 4,378 | 4.5 | 459 | 0.3 | 4,786 | 1.9 | 1,583 | 0.4 | |||||||||||||||||||||
Total Casualty | 49,835 | 51.3 | 83,601 | 56.2 | 124,460 | 49.9 | 213,816 | 52 | |||||||||||||||||||||
Specialty | |||||||||||||||||||||||||||||
Financial | 812 | 0.8 | 806 | 0.6 | 3,830 | 1.5 | 2,103 | 0.5 | |||||||||||||||||||||
Health | 13,113 | 13.5 | 7,491 | 5 | 40,512 | 16.2 | 29,975 | 7.3 | |||||||||||||||||||||
Workers’ compensation (1) | 354 | 0.4 | — | — | 354 | 0.1 | (4,215 | ) | (1.0 | ) | |||||||||||||||||||
Total Specialty | 14,279 | 14.7 | 8,297 | 5.6 | 44,696 | 17.8 | 27,863 | 6.8 | |||||||||||||||||||||
$ | 97,200 | 100 | % | $ | 148,765 | 100 | % | $ | 249,755 | 100 | % | $ | 410,927 | 100 | % | ||||||||||||||
(1) The negative balance represents reversal of premiums due to premium adjustments, termination of contracts or premiums returned upon novation or commutation of contracts. | |||||||||||||||||||||||||||||
Gross Premiums Written by Geographic Area of Risks Insured | |||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | ||||||||||||||||||||||||||||
U.S. | $ | 89,641 | 92.2 | % | $ | 148,249 | 99.7 | % | $ | 227,753 | 91.2 | % | $ | 400,594 | 97.5 | % | |||||||||||||
Worldwide (1) | 7,426 | 7.7 | 379 | 0.2 | 21,491 | 8.6 | 9,814 | 2.4 | |||||||||||||||||||||
Caribbean (2) | — | — | — | — | (30 | ) | — | (95 | ) | — | |||||||||||||||||||
Europe | 133 | 0.1 | 137 | 0.1 | 541 | 0.2 | 614 | 0.1 | |||||||||||||||||||||
$ | 97,200 | 100 | % | $ | 148,765 | 100 | % | $ | 249,755 | 100 | % | $ | 410,927 | 100 | % | ||||||||||||||
-1 | "Worldwide" is comprised of contracts that reinsure risks in more than one geographic area and do not specifically exclude the U.S. | ||||||||||||||||||||||||||||
-2 | The negative balance represents reversal of premiums due to premium adjustments, termination of contracts or premiums returned upon novation or commutation of contracts. |
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
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 condensed consolidated financial statements and the reported amounts of income and expenses during the period. Actual results could differ from these estimates. | |
Restricted Cash and Cash Equivalents | ' |
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 to collateralize the letters of credit issued under certain letter of credit facilities (see Notes 4 and 8). The amount of cash encumbered varies depending on the market value of the securities sold, not yet purchased, and letters of credit issued. In addition, derivative counterparties require cash collateral to support the current value of any amounts that may be due to the counterparty based on the value of the underlying financial instrument | |
Deferred Acquisition Costs | ' |
Deferred Acquisition Costs | |
Policy acquisition costs, such as commission and brokerage costs, relate directly to, and vary with, the writing of reinsurance contracts. Acquisition costs relating solely to bound contracts are deferred subject to ultimate recoverability and are amortized over the related contract term. The Company evaluates the recoverability of deferred acquisition costs by determining if the sum of future earned premiums and anticipated investment income is greater than the expected future claims and expenses. If a loss is probable on the unexpired portion of policies in force, a premium deficiency loss is recognized. At September 30, 2014 and December 31, 2013, the deferred acquisition costs were considered fully recoverable and no premium deficiency loss was recorded. | |
Acquisition costs also include profit commissions, which are expensed when incurred. Profit commissions are calculated and accrued based on the expected loss experience for contracts and recorded when the current loss estimate indicates that a profit commission is probable under the contract terms. As of September 30, 2014, $12.1 million (December 31, 2013: $10.5 million) of profit commission reserves were included in reinsurance balances payable on the condensed consolidated balance sheets. For the three and nine months ended September 30, 2014, $0.4 million and $1.8 million, respectively (2013: $0.9 million and $2.1 million, respectively), of net profit commission expense was included in acquisition costs on the condensed 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, 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 insurance risk, or a contract provides retroactive reinsurance. Any losses on such contracts are charged to earnings immediately. Any gains relating to such contracts are deferred and amortized over the estimated remaining settlement period. All such deferred gains are included in reinsurance balances payable in the condensed consolidated balance sheets. Amortized gains are recorded in the condensed consolidated statements of income as other income. | |
Fixed Assets | ' |
Fixed Assets | |
Fixed assets are included in other assets on the condensed consolidated balance sheets and are recorded at cost when acquired. Fixed assets are comprised of computer software, furniture and fixtures and leasehold improvements and are depreciated, using the straight-line method, over their estimated useful lives, which are five years for both computer software, and furniture and fixtures. Leasehold improvements are amortized over the lesser of the estimated useful lives of the assets or remaining lease term. 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 (loss) in the condensed consolidated statements of income. | |
Dividend income and expense are recorded on the ex-dividend date. The ex-dividend date is the date as of when the underlying security must have been traded to be eligible for the dividend declared. Interest income and interest expense are recorded on an accrual basis. | |
Derivative Financial Instruments | ' |
Derivative Financial Instruments | |
U.S. GAAP requires that an entity recognize all derivatives in the balance sheet at fair value. It also requires that unrealized gains and losses resulting from changes in fair value be included in income or comprehensive income, depending on whether the instrument qualifies as a hedge transaction, and if so, the type of hedge transaction. The Company’s derivative financial instrument assets are included in financial contracts receivable. Derivative financial instrument liabilities are generally included in financial contracts payable. The Company's derivatives do not qualify as hedges for financial reporting purposes and are recorded in the condensed consolidated balance sheets on a gross basis and not offset against any collateral pledged or received. Pursuant to the International Swaps and Derivatives Association ("ISDA") master agreements, securities lending agreements and other derivatives agreements, the Company and its counterparties typically have the ability to net certain payments owed to each other in specified circumstances. In addition, in the event a party to one of the ISDA master agreements, securities lending agreements or other derivatives agreements defaults, or a transaction is otherwise subject to termination, the non-defaulting party generally has the right to set off against payments owed to the defaulting party or collateral held by the non-defaulting party. | |
Financial Contracts | |
The Company enters into financial contracts with counterparties as part of its investment strategy. Financial contracts which include total return swaps, credit default swaps ("CDS"), futures, options, currency forwards and other derivative instruments are recorded at their fair value with any unrealized gains and losses included in net investment income (loss) in the condensed consolidated statements of income. Financial contracts receivable represents derivative contracts whereby, based upon the contract's current fair value, the Company will be entitled to receive payments upon settlement of the contract. Financial contracts payable represents derivative contracts whereby, based upon the contract's current fair value, the Company will be obligated to make payments upon settlement of the contract. | |
Total return swap agreements, included on the condensed consolidated balance sheets as financial contracts receivable and financial contracts payable, are derivative financial instruments whereby the Company is either entitled to receive or obligated to pay the product of a notional amount multiplied by the movement in an underlying security, which the Company may not own, over a specified time frame. In addition, the Company may also be obligated to pay or receive other payments based on interest rates, dividend payments and receipts, or foreign exchange movements during a specified period. The Company measures its rights or obligations to the counterparty based on the fair value movements of the underlying security together with any other payments due. These contracts are carried at fair value, based on observable inputs (Level 2 inputs) with the resultant unrealized gains and losses reflected in net investment income (loss) in the condensed 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 (loss) in the condensed consolidated statements of income. | |
Financial contracts may also include exchange traded futures or options contracts that are based on the movement of a particular index, equity security, commodity, currency or interest rate. Where such contracts are traded in an active market, the Company’s obligations or rights on these contracts are recorded at fair value based on the observable quoted prices of the same or similar financial contracts in an active market (Level 1) or on broker quotes which reflect market information based on actual transactions (Level 2). Amounts invested in exchange traded options and over the counter ("OTC") options are recorded either as an asset or liability at inception. Subsequent to initial recognition, unexpired exchange traded option contracts are recorded at fair value based on quoted prices in active markets (Level 1). For OTC options or exchange traded options where a quoted price in an active market is not available, fair values are derived based upon observable inputs (Level 2) such as multiple quotes from brokers and market makers, which are considered to be binding. | |
The Company purchases and sells CDS for strategic investment purposes. A CDS is a derivative instrument that provides protection against an investment loss due to specified credit or default events of a reference entity. The seller of a CDS guarantees to pay the buyer a specified amount if the reference entity defaults on its obligations or fails to perform. The buyer of a CDS pays a premium over time to the seller in exchange for obtaining this protection. A CDS trading in an active market is valued at fair value based on broker or market maker quotes for identical instruments in an active market (Level 2) or based on the current credit spreads on identical contracts (Level 2). | |
Comprehensive Income (Loss) | ' |
Comprehensive Income (Loss) | |
The Company has no other comprehensive income or loss, other than the net income or loss disclosed in the condensed consolidated statements of income. | |
Earnings (Loss) Per Share | ' |
Earnings (Loss) Per Share | |
Basic earnings per share are based on the weighted average number of common shares and participating securities outstanding during the period. Diluted earnings per share includes the dilutive effect of restricted stock units ("RSU") and additional potential common shares issuable when stock options are exercised and are determined using the treasury stock method. The Company treats its unvested restricted stock as participating securities in accordance with U.S. GAAP, which requires that unvested stock awards which contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid (referred to as "participating securities"), be included in the number of shares outstanding for both basic and diluted earnings per share calculations. In the event of a net loss, all RSUs, stock options outstanding and all participating securities are excluded from the calculation of both basic and diluted loss per share since their inclusion would be anti-dilutive. | |
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. | |
Recently Adopted Accounting Standards | ' |
Recently Adopted Accounting Standards | |
None. |
SIGNIFICANT_ACCOUNTING_POLICIE2
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||
Fixed Assets | ' | |||||||||||
At September 30, 2014, 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 | $ | (259 | ) | $ | 297 | |||||
Furniture and fixtures | 620 | (424 | ) | 196 | ||||||||
Leasehold improvements | 2,002 | (900 | ) | 1,102 | ||||||||
Total | $ | 3,178 | $ | (1,583 | ) | $ | 1,595 | |||||
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 | |||||
Schedule of Weighted Average Number of Shares | ' | |||||||||||
Three months ended September 30 | Nine months ended September 30 | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Weighted average shares outstanding - basic | 36,984,650 | 36,875,716 | 37,214,809 | 36,820,199 | ||||||||
Effect of dilutive service provider share-based awards | — | 157,281 | 11,383 | 150,039 | ||||||||
Effect of dilutive employee and director share-based awards | — | 612,056 | 648,435 | 571,385 | ||||||||
Weighted average shares outstanding - diluted | 36,984,650 | 37,645,053 | 37,874,627 | 37,541,623 | ||||||||
Anti-dilutive stock options outstanding | — | 180,000 | — | 218,197 | ||||||||
Participating securities excluded from calculation of loss per share | 334,090 | — | — | — | ||||||||
FINANCIAL_INSTRUMENTS_Tables
FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Hierarchy | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||||||
The following table presents the Company’s investments, categorized by the level of the fair value hierarchy as of September 30, 2014: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value measurements as of September 30, 2014 | |||||||||||||||||||||||||||||||||||||||||||||||||||
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 | $ | — | $ | 23,026 | $ | 622 | $ | 23,648 | |||||||||||||||||||||||||||||||||||||||||||
Listed equity securities | 1,210,244 | 4,266 | — | 1,214,510 | |||||||||||||||||||||||||||||||||||||||||||||||
Commodities | 99,016 | — | — | 99,016 | |||||||||||||||||||||||||||||||||||||||||||||||
Private and unlisted equity securities | — | — | 50,910 | 50,910 | |||||||||||||||||||||||||||||||||||||||||||||||
Financial contracts receivable | 8,026 | 29,077 | — | 37,103 | |||||||||||||||||||||||||||||||||||||||||||||||
$ | 1,317,286 | $ | 56,369 | $ | 51,532 | $ | 1,425,187 | ||||||||||||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Listed equity securities, sold not yet purchased | $ | (848,950 | ) | $ | — | $ | — | $ | (848,950 | ) | |||||||||||||||||||||||||||||||||||||||||
Debt instruments, sold not yet purchased | — | (264,350 | ) | — | (264,350 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Financial contracts payable | — | (30,133 | ) | — | (30,133 | ) | |||||||||||||||||||||||||||||||||||||||||||||
$ | (848,950 | ) | $ | (294,483 | ) | $ | — | $ | (1,143,433 | ) | |||||||||||||||||||||||||||||||||||||||||
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 | ) | |||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||||||
The following table presents the reconciliation of the balances for all investments measured at fair value using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2014: | The following table presents the reconciliation of the balances for all investments measured at fair value using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2013: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2014 | Nine months ended September 30, 2014 | Three months ended September 30, 2013 | Nine months ended September 30, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||
Debt instruments | Private and unlisted equity securities | Total | Debt instruments | Private and unlisted equity securities | Total | Debt instruments | Private and unlisted equity securities | Total | Debt instruments | Private and unlisted equity securities | Total | ||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | ($ in thousands) | ($ in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 601 | $ | 50,827 | $ | 51,428 | $ | 527 | $ | 46,323 | $ | 46,850 | Beginning balance | $ | 4,838 | $ | 43,257 | $ | 48,095 | $ | 260 | $ | 38,801 | $ | 39,061 | ||||||||||||||||||||||||||
Purchases | — | 961 | 961 | — | 3,032 | 3,032 | Purchases | 3,604 | 416 | 4,020 | 8,230 | 31,756 | 39,986 | ||||||||||||||||||||||||||||||||||||||
Sales | — | (10 | ) | (10 | ) | — | (2,071 | ) | (2,071 | ) | Sales | — | (829 | ) | (829 | ) | (28 | ) | (6,934 | ) | (6,962 | ) | |||||||||||||||||||||||||||||
Issuances | — | — | — | — | — | — | Issuances | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Settlements | — | — | — | — | — | — | Settlements | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Total realized and unrealized gains (losses) included in earnings, net | 21 | 3,176 | 3,197 | 95 | 7,670 | 7,765 | Total realized and unrealized gains (losses) included in earnings, net | — | 2,198 | 2,198 | (20 | ) | 1,055 | 1,035 | |||||||||||||||||||||||||||||||||||||
Transfers into Level 3 | — | — | — | — | — | — | Transfers into Level 3 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 | — | (4,044 | ) | (4,044 | ) | — | (4,044 | ) | (4,044 | ) | Transfers out of Level 3 | — | (4,945 | ) | (4,945 | ) | — | (24,581 | ) | (24,581 | ) | ||||||||||||||||||||||||||||||
Ending balance | $ | 622 | $ | 50,910 | $ | 51,532 | $ | 622 | $ | 50,910 | $ | 51,532 | Ending balance | $ | 8,442 | $ | 40,097 | $ | 48,539 | $ | 8,442 | $ | 40,097 | $ | 48,539 | ||||||||||||||||||||||||||
Maturity Distribution for Debt Instruments | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||||||
The maturity distribution for debt instruments held at September 30, 2014 and December 31, 2013 was as follows: | |||||||||||||||||||||||||||||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||||||||||||
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 | 2,109 | 1,568 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
More than ten years | 23,589 | 22,080 | 5,877 | 4,312 | |||||||||||||||||||||||||||||||||||||||||||||||
$ | 25,698 | $ | 23,648 | $ | 5,877 | $ | 4,312 | ||||||||||||||||||||||||||||||||||||||||||||
Other Investments | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||||||
At September 30, 2014, the following securities were included in other investments: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair | ||||||||||||||||||||||||||||||||||||||||||||||||
gains | losses | value | |||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Commodities | $ | 95,815 | $ | 3,201 | $ | — | $ | 99,016 | |||||||||||||||||||||||||||||||||||||||||||
Private and unlisted equity securities | 38,299 | 14,707 | (2,096 | ) | 50,910 | ||||||||||||||||||||||||||||||||||||||||||||||
$ | 134,114 | $ | 17,908 | $ | (2,096 | ) | $ | 149,926 | |||||||||||||||||||||||||||||||||||||||||||
At December 31, 2013, the following securities were included in other investments: | |||||||||||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||||
Investments in Securities Sold, Not Yet Purchased | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||||||
Investments in Securities Sold, Not Yet Purchased | |||||||||||||||||||||||||||||||||||||||||||||||||||
At September 30, 2014, the following securities were included in investments in securities sold, not yet purchased: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds | Unrealized gains | Unrealized losses | Fair value | ||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Equities – listed | $ | (763,551 | ) | $ | 64,963 | $ | (128,315 | ) | $ | (826,903 | ) | ||||||||||||||||||||||||||||||||||||||||
Exchange traded funds | (21,297 | ) | 25 | (774 | ) | (22,046 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Corporate debt – U.S. | (7,066 | ) | 316 | (11 | ) | (6,761 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Sovereign debt – Non U.S. | (246,589 | ) | 3,331 | (14,332 | ) | (257,590 | ) | ||||||||||||||||||||||||||||||||||||||||||||
$ | (1,038,503 | ) | $ | 68,635 | $ | (143,432 | ) | $ | (1,113,300 | ) | |||||||||||||||||||||||||||||||||||||||||
At December 31, 2013, the following securities were included in investments in securities sold, not yet purchased: | |||||||||||||||||||||||||||||||||||||||||||||||||||
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 | ) | |||||||||||||||||||||||||||||||||||||||||
Fair values of Financial Contracts Outstanding | ' | [1] | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
At September 30, 2014, the fair values of financial contracts outstanding were as follows: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Contracts | Listing | Notional amount of | Fair value of net assets | ||||||||||||||||||||||||||||||||||||||||||||||||
currency (1) | underlying instruments | (obligations) | |||||||||||||||||||||||||||||||||||||||||||||||||
on financial | |||||||||||||||||||||||||||||||||||||||||||||||||||
contracts | |||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Financial contracts receivable | |||||||||||||||||||||||||||||||||||||||||||||||||||
Forwards | KRW | 30,202 | $ | 1,167 | |||||||||||||||||||||||||||||||||||||||||||||||
Futures | USD | 43,454 | 5,306 | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate options | USD | 78,000 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Put options | USD | 272,799 | 11,873 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total return swaps – equities | GBP/HKD/RON/USD | 155,717 | 16,037 | ||||||||||||||||||||||||||||||||||||||||||||||||
Warrants and rights on listed equities | EUR/USD | 4,874 | 2,720 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total financial contracts receivable, at fair value | $ | 37,103 | |||||||||||||||||||||||||||||||||||||||||||||||||
Financial contracts payable | |||||||||||||||||||||||||||||||||||||||||||||||||||
Credit default swaps, purchased – corporate debt | USD | 221,198 | $ | (1,681 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Credit default swaps, purchased – sovereign debt | USD | 251,467 | (2,345 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Total return swaps – equities | EUR/GBP/HKD/INR | 116,899 | (26,107 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Total financial contracts payable, at fair value | $ | (30,133 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
(1) USD =S Dollar; JPY =apanese Yen; EUR =uro; GBP =ritish Pound; HKD =ong Kong Dollar; KRW =orean Won; RON =omanian New Leu; INR =ndian Rupee. | |||||||||||||||||||||||||||||||||||||||||||||||||||
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 (1) | 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 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
(1) USD =S Dollar; JPY =apanese Yen; EUR =uro; GBP =ritish Pound; HKD =ong Kong Dollar; KRW =orean Won; RON =omanian New Leu; INR =ndian Rupee. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Gain (Loss) on derivatives recognized in income | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||||||
During the three and nine months ended September 30, 2014 and 2013, 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 | Gain (loss) on derivatives recognized in income | ||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Credit default swaps, purchased – corporate debt | Net investment income (loss) | $ | (11 | ) | $ | (589 | ) | $ | (157 | ) | $ | (2,847 | ) | ||||||||||||||||||||||||||||||||||||||
Credit default swaps, purchased – sovereign debt | Net investment income (loss) | (72 | ) | (942 | ) | (286 | ) | (957 | ) | ||||||||||||||||||||||||||||||||||||||||||
Forwards | Net investment income (loss) | 1,289 | (1,282 | ) | (1,442 | ) | 5,780 | ||||||||||||||||||||||||||||||||||||||||||||
Futures | Net investment income (loss) | 8,617 | 3,628 | 4,657 | 4,677 | ||||||||||||||||||||||||||||||||||||||||||||||
Interest rate options | Net investment income (loss) | — | (97 | ) | (26 | ) | (62 | ) | |||||||||||||||||||||||||||||||||||||||||||
Options, warrants, and rights | Net investment income (loss) | 240 | (12,025 | ) | (17,868 | ) | 20,681 | ||||||||||||||||||||||||||||||||||||||||||||
Total return swaps – equities | Net investment income (loss) | (5,642 | ) | 38,825 | 24,432 | 59,507 | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 4,421 | $ | 27,518 | $ | 9,310 | $ | 86,779 | |||||||||||||||||||||||||||||||||||||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||||||
For the three and nine months ended September 30, 2014, the Company’s volume of derivative activities (based on notional amounts) was as follows: | |||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | Entered | Exited | Entered | Exited | |||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Forwards | $ | — | $ | 10,943 | $ | — | $ | 74,134 | |||||||||||||||||||||||||||||||||||||||||||
Futures | — | 21,570 | 128,823 | 192,134 | |||||||||||||||||||||||||||||||||||||||||||||||
Options, warrants and rights (1) | 230,132 | — | 757,232 | 128,147 | |||||||||||||||||||||||||||||||||||||||||||||||
Total return swaps | 20,985 | 77,600 | 96,546 | 127,148 | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 251,117 | $ | 110,113 | $ | 982,601 | $ | 521,563 | |||||||||||||||||||||||||||||||||||||||||||
(1) Exited amount excludes options which expired or were exercised during the period. | |||||||||||||||||||||||||||||||||||||||||||||||||||
For the three and nine months ended September 30, 2013, the Company’s volume of derivative activities (based on notional amounts) was as follows: | |||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | Entered | Exited | Entered | Exited | |||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Forwards | $ | 30,817 | $ | — | $ | 417,754 | $ | 115,884 | |||||||||||||||||||||||||||||||||||||||||||
Futures | — | 12,778 | 218,519 | 180,027 | |||||||||||||||||||||||||||||||||||||||||||||||
Interest rate options (1) | — | 95,400 | — | 376,385 | |||||||||||||||||||||||||||||||||||||||||||||||
Options, warrants and rights (1) | 232,530 | 272,988 | 765,509 | 814,812 | |||||||||||||||||||||||||||||||||||||||||||||||
Total return swaps | 16,606 | 6,736 | 187,862 | 54,846 | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 279,953 | $ | 387,902 | $ | 1,589,644 | $ | 1,541,954 | |||||||||||||||||||||||||||||||||||||||||||
(1) Exited amount excludes options which expired or were exercised during the period. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Offsetting assets and liabilities | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||||||
As of September 30, 2014, the gross and net amounts of derivative instruments and the cash collateral applicable to derivative instruments were as follows: | |||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2014 | (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 | Financial instruments available for offset | Cash collateral (received) pledged | Net amount of asset (liability) | |||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Financial contracts receivable | $ | 37,103 | $ | — | $ | 37,103 | $ | (18,469 | ) | $ | (1,929 | ) | $ | 16,705 | |||||||||||||||||||||||||||||||||||||
Financial contracts payable | (30,133 | ) | — | (30,133 | ) | 18,469 | 11,664 | — | |||||||||||||||||||||||||||||||||||||||||||
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 | Financial instruments available for offset | Cash collateral (received) pledged | Net amount of asset (liability) | |||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Financial contracts receivable | $ | 104,048 | $ | — | $ | 104,048 | $ | (18,857 | ) | $ | (49,422 | ) | $ | 35,769 | |||||||||||||||||||||||||||||||||||||
Financial contracts payable | (18,857 | ) | — | (18,857 | ) | 18,857 | — | — | |||||||||||||||||||||||||||||||||||||||||||
Debt instruments | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||||||
Trading securities, Debt and Equities | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||||||
Debt instruments, trading | |||||||||||||||||||||||||||||||||||||||||||||||||||
At September 30, 2014, the following investments were included in debt instruments: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cost/ | Unrealized | Unrealized | Fair | ||||||||||||||||||||||||||||||||||||||||||||||||
amortized | gains | losses | value | ||||||||||||||||||||||||||||||||||||||||||||||||
cost | |||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt – U.S. | $ | 2,116 | $ | — | $ | (1,494 | ) | $ | 622 | ||||||||||||||||||||||||||||||||||||||||||
Corporate debt – Non U.S. | 5,870 | 204 | (666 | ) | 5,408 | ||||||||||||||||||||||||||||||||||||||||||||||
Sovereign debt – Non U.S. | 17,712 | 202 | (296 | ) | 17,618 | ||||||||||||||||||||||||||||||||||||||||||||||
Total debt instruments | $ | 25,698 | $ | 406 | $ | (2,456 | ) | $ | 23,648 | ||||||||||||||||||||||||||||||||||||||||||
At December 31, 2013, the following investments were included in debt instruments: | |||||||||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||
Equity Securities [Member] | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||||||
Trading securities, Debt and Equities | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||||||
Investment in Equity Securities, Trading | |||||||||||||||||||||||||||||||||||||||||||||||||||
At September 30, 2014, the following long positions were included in equity securities, trading: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair | ||||||||||||||||||||||||||||||||||||||||||||||||
gains | losses | value | |||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Equities – listed | $ | 991,691 | $ | 243,728 | $ | (43,859 | ) | $ | 1,191,560 | ||||||||||||||||||||||||||||||||||||||||||
Exchange traded funds | 42,126 | — | (19,176 | ) | 22,950 | ||||||||||||||||||||||||||||||||||||||||||||||
Total equity securities | $ | 1,033,817 | $ | 243,728 | $ | (63,035 | ) | $ | 1,214,510 | ||||||||||||||||||||||||||||||||||||||||||
At December 31, 2013, the following long positions were included in equity securities, trading: | |||||||||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||||
Total equity securities | $ | 973,847 | $ | 361,695 | $ | (53,386 | ) | $ | 1,282,156 | ||||||||||||||||||||||||||||||||||||||||||
[1] | USD =S Dollar; JPY =apanese Yen; EUR =uro; GBP =ritish Pound; HKD =ong Kong Dollar; KRW =orean Won; RON =omanian New Leu; INR =ndian Rupee. |
SHAREBASED_COMPENSATION_Tables
SHARE-BASED COMPENSATION (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | |||||||||||
The restricted share award activity during the nine months ended September 30, 2014 was as follows: | ||||||||||||
Number of | Weighted | |||||||||||
non-vested | average | |||||||||||
restricted | grant date | |||||||||||
shares | fair value | |||||||||||
Balance at December 31, 2013 | 328,991 | $ | 24.74 | |||||||||
Granted | 147,626 | 32.57 | ||||||||||
Vested | (115,444 | ) | 25.35 | |||||||||
Forfeited | (27,083 | ) | 27.32 | |||||||||
Balance at September 30, 2014 | 334,090 | $ | 27.78 | |||||||||
2014 | 2013 | |||||||||||
Risk free rate | 2.47 | % | 2.85 | % | ||||||||
Estimated volatility | 34 | % | 35 | % | ||||||||
Expected term (in years) | 10 | 10 | ||||||||||
Dividend yield | 0 | % | 0 | % | ||||||||
Forfeiture rate | 0 | % | 0 | % | ||||||||
SHARE-BASED COMPENSATION | ||||||||||||
The Company has a stock incentive plan for directors, employees and consultants. Shares authorized for issuance are comprised of 300,000 (December 31, 2013: 300,000) Class A ordinary shares in relation to share purchase options granted to a service provider and 3,500,000 (December 31, 2013: 3,500,000) Class A ordinary shares authorized for the Company’s stock incentive plan for eligible employees, directors and consultants. As of September 30, 2014, no (December 31, 2013: 20,000) Class A ordinary shares remained available for future issuance relating to share purchase options granted to the service provider, and 799,555 (December 31, 2013: 961,587) Class A ordinary shares remained available for future issuance under the Company's stock incentive plan. The stock incentive plan is administered by the Compensation Committee of the Board of Directors. | ||||||||||||
Service Provider Share Purchase Options | ||||||||||||
On September 20, 2004, the Company granted share purchase options to a service provider to purchase 400,000 Class A ordinary shares at an exercise price of $10.00 per share. During the third quarter of 2014, all of the remaining 20,000 share purchase options outstanding were exercised, resulting in the net issuance of 13,861 Class A ordinary shares (net of shares surrendered as a result of the cashless exercise of stock options). | ||||||||||||
Employee and Director Restricted Shares | ||||||||||||
As part of its stock incentive plan, the Company issues restricted shares for which the fair value is equal to the price of the Company’s Class A ordinary shares on the grant date. Compensation based on the grant date fair market value of the shares is expensed on a straight line basis over the vesting period. | ||||||||||||
For the nine months ended September 30, 2014, 119,566 (2013: 111,231) 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 nine months ended September 30, 2014, the Company also issued to non-employee directors an aggregate of 28,060 (2013: 36,374) 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 contains similar restrictions to those issued to employees and will vest on the earlier of the first anniversary of the share issuance or the Company’s next annual general meeting, subject to the grantee’s continued service with the Company. | ||||||||||||
For the nine months ended September 30, 2014, 27,083 (2013: 16,826) restricted shares were forfeited by employees who left the Company prior to the expiration of the vesting period. For the nine months ended September 30, 2014, in accordance with U.S. GAAP, $0.2 million of stock compensation expense (2013: $0.2 million) relating to the forfeited restricted shares was reversed. | ||||||||||||
The restricted share award activity during the nine months ended September 30, 2014 was as follows: | ||||||||||||
Number of | Weighted | |||||||||||
non-vested | average | |||||||||||
restricted | grant date | |||||||||||
shares | fair value | |||||||||||
Balance at December 31, 2013 | 328,991 | $ | 24.74 | |||||||||
Granted | 147,626 | 32.57 | ||||||||||
Vested | (115,444 | ) | 25.35 | |||||||||
Forfeited | (27,083 | ) | 27.32 | |||||||||
Balance at September 30, 2014 | 334,090 | $ | 27.78 | |||||||||
Employee and Director Stock Options | ||||||||||||
For the nine months ended September 30, 2014, 31,821 Class A ordinary share purchase options were granted to the Company's Chief Executive Officer, pursuant to his employment contract (2013: 38,197). These options vest 25% on the date of the grant, and 25% each on the anniversary thereof in 2015, 2016 and 2017 and expire 10 years after the grant date. The grant date fair value of these options was $15.71 per share (2013: $13.09 per share), based on the Black-Scholes option pricing model. The estimate of expected volatility for options granted during 2014 was based on the daily historical trading data of the Company's Class A ordinary shares from the date that these shares commenced trading (May 24, 2007) to August 1, 2014. For options granted prior to 2014, the Company had 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. | ||||||||||||
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. | ||||||||||||
2014 | 2013 | |||||||||||
Risk free rate | 2.47 | % | 2.85 | % | ||||||||
Estimated volatility | 34 | % | 35 | % | ||||||||
Expected term (in years) | 10 | 10 | ||||||||||
Dividend yield | 0 | % | 0 | % | ||||||||
Forfeiture rate | 0 | % | 0 | % | ||||||||
For the nine months ended September 30, 2014, 232,500 (2013: 44,500) stock options were exercised by directors and employees resulting in 151,972 Class A ordinary shares issued, net of shares surrendered as a result of the cashless exercise of stock options (2013: 44,500). When stock options are granted, the Company reduces the corresponding number from the shares authorized for issuance as part of the Company’s stock incentive plan. The intrinsic value of options exercised during the nine months ended September 30, 2014 was $4.9 million (2013: $0.6 million). | ||||||||||||
Employee and director stock option activity during the nine months ended September 30, 2014 was as follows: | ||||||||||||
Number of | Weighted | Weighted | ||||||||||
options | average | average | ||||||||||
exercise | grant date | |||||||||||
price | fair value | |||||||||||
Balance at December 31, 2013 | 1,402,987 | $ | 15.82 | $ | 7.08 | |||||||
Granted | 31,821 | 32.37 | 15.71 | |||||||||
Exercised | (232,500 | ) | 11.24 | 5.65 | ||||||||
Forfeited | — | — | — | |||||||||
Expired | — | — | — | |||||||||
Balance at September 30, 2014 | 1,202,308 | $ | 17.14 | $ | 7.59 | |||||||
Employee Restricted Stock Units | ||||||||||||
The Company issues restricted stock units ("RSUs") to certain employees as part of the stock incentive plan. The grant date fair value of the RSUs is equal to the price of the Company’s Class A ordinary shares on the grant date. Compensation cost based on the grant date fair market value of the RSUs is expensed on a straight line basis over the vesting period. | ||||||||||||
For the nine months ended September 30, 2014, 9,668 (2013: 5,347) 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. | ||||||||||||
Employee RSU activity during the nine months ended September 30, 2014 was as follows: | ||||||||||||
Number of | Weighted | |||||||||||
non-vested | average | |||||||||||
RSUs | grant date | |||||||||||
fair value | ||||||||||||
Balance at December 31, 2013 | 5,941 | $ | 24.41 | |||||||||
Granted | 9,668 | 32.6 | ||||||||||
Vested | — | — | ||||||||||
Forfeited | — | — | ||||||||||
Balance at September 30, 2014 | 15,609 | $ | 29.72 | |||||||||
For the nine months ended September 30, 2014 and 2013, the general and administrative expenses included stock compensation expense (net of forfeitures) of $3.0 million and $2.7 million, respectively, for the expensing of the fair value of stock options, restricted stocks and RSUs granted to employees and directors. | ||||||||||||
Employee RSU activity during the nine months ended September 30, 2014 was as follows: | ||||||||||||
Number of | Weighted | |||||||||||
non-vested | average | |||||||||||
RSUs | grant date | |||||||||||
fair value | ||||||||||||
Balance at December 31, 2013 | 5,941 | $ | 24.41 | |||||||||
Granted | 9,668 | 32.6 | ||||||||||
Vested | — | — | ||||||||||
Forfeited | — | — | ||||||||||
Balance at September 30, 2014 | 15,609 | $ | 29.72 | |||||||||
Employee and director stock option activity during the nine months ended September 30, 2014 was as follows: | ||||||||||||
Number of | Weighted | Weighted | ||||||||||
options | average | average | ||||||||||
exercise | grant date | |||||||||||
price | fair value | |||||||||||
Balance at December 31, 2013 | 1,402,987 | $ | 15.82 | $ | 7.08 | |||||||
Granted | 31,821 | 32.37 | 15.71 | |||||||||
Exercised | (232,500 | ) | 11.24 | 5.65 | ||||||||
Forfeited | — | — | — | |||||||||
Expired | — | — | — | |||||||||
Balance at September 30, 2014 | 1,202,308 | $ | 17.14 | $ | 7.59 | |||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||||||||||||||||||
Letters of Credit Facilities | ' | |||||||||||||||||||||||||||
At September 30, 2014, 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, 2015 | 90 days prior to termination date | ||||||||||||||||||||||||
Butterfield Bank (Cayman) Limited | 60,000 | June 30, 2015 | 90 days prior to termination date | |||||||||||||||||||||||||
Citibank Europe plc | 400,000 | October 11, 2015 | 120 days prior to termination date | |||||||||||||||||||||||||
JP Morgan Chase Bank N.A. | 100,000 | January 27, 2016 | 120 days prior to termination date | |||||||||||||||||||||||||
$ | 760,000 | |||||||||||||||||||||||||||
Schedule of Commitments and Contingencies, Fiscal Year Maturity Schedule | ' | |||||||||||||||||||||||||||
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 | $ | 139 | $ | 557 | $ | 500 | $ | 466 | $ | 233 | $ | — | $ | 1,895 | ||||||||||||||
Specialist service agreement | 225 | 750 | 300 | — | — | — | 1,275 | |||||||||||||||||||||
Private equity and limited partnerships (1) | 9,395 | — | — | — | — | — | 9,395 | |||||||||||||||||||||
$ | 9,759 | $ | 1,307 | $ | 800 | $ | 466 | $ | 233 | $ | — | $ | 12,565 | |||||||||||||||
(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) | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||||||
Gross Premiums Written by Line of Business | ' | ||||||||||||||||||||||||||||
The following tables provide a breakdown of the Company's gross premiums written by line of business and by geographic area of risks insured for the periods indicated: | |||||||||||||||||||||||||||||
Gross Premiums Written by Line of Business | |||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | ||||||||||||||||||||||||||||
Property | |||||||||||||||||||||||||||||
Aviation | $ | — | — | % | $ | — | — | % | $ | 290 | 0.1 | % | $ | 96 | — | % | |||||||||||||
Commercial | 1,953 | 2 | 789 | 0.5 | 9,183 | 3.7 | 10,523 | 2.6 | |||||||||||||||||||||
Energy | — | — | — | — | 2,131 | 0.9 | 1,553 | 0.4 | |||||||||||||||||||||
Motor physical damage | 7,405 | 7.6 | 21,557 | 14.5 | 19,759 | 7.9 | 48,895 | 11.9 | |||||||||||||||||||||
Personal | 23,728 | 24.4 | 34,521 | 23.2 | 49,236 | 19.7 | 108,181 | 26.3 | |||||||||||||||||||||
Total Property | 33,086 | 34 | 56,867 | 38.2 | 80,599 | 32.3 | 169,248 | 41.2 | |||||||||||||||||||||
Casualty | |||||||||||||||||||||||||||||
General liability (1) | 4,260 | 4.4 | 1,668 | 1.1 | 7,176 | 2.9 | (544 | ) | (0.1 | ) | |||||||||||||||||||
Marine liability | 20 | — | — | — | 3,867 | 1.6 | 603 | 0.1 | |||||||||||||||||||||
Motor liability | 41,177 | 42.4 | 81,474 | 54.8 | 108,631 | 43.5 | 212,174 | 51.6 | |||||||||||||||||||||
Professional liability | 4,378 | 4.5 | 459 | 0.3 | 4,786 | 1.9 | 1,583 | 0.4 | |||||||||||||||||||||
Total Casualty | 49,835 | 51.3 | 83,601 | 56.2 | 124,460 | 49.9 | 213,816 | 52 | |||||||||||||||||||||
Specialty | |||||||||||||||||||||||||||||
Financial | 812 | 0.8 | 806 | 0.6 | 3,830 | 1.5 | 2,103 | 0.5 | |||||||||||||||||||||
Health | 13,113 | 13.5 | 7,491 | 5 | 40,512 | 16.2 | 29,975 | 7.3 | |||||||||||||||||||||
Workers’ compensation (1) | 354 | 0.4 | — | — | 354 | 0.1 | (4,215 | ) | (1.0 | ) | |||||||||||||||||||
Total Specialty | 14,279 | 14.7 | 8,297 | 5.6 | 44,696 | 17.8 | 27,863 | 6.8 | |||||||||||||||||||||
$ | 97,200 | 100 | % | $ | 148,765 | 100 | % | $ | 249,755 | 100 | % | $ | 410,927 | 100 | % | ||||||||||||||
(1) The negative balance represents reversal of premiums due to premium adjustments, termination of contracts or premiums returned upon novation or commutation of contracts. | |||||||||||||||||||||||||||||
Gross Premiums Written by Geographic Area of Risks Insured | ' | ||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | ||||||||||||||||||||||||||||
U.S. | $ | 89,641 | 92.2 | % | $ | 148,249 | 99.7 | % | $ | 227,753 | 91.2 | % | $ | 400,594 | 97.5 | % | |||||||||||||
Worldwide (1) | 7,426 | 7.7 | 379 | 0.2 | 21,491 | 8.6 | 9,814 | 2.4 | |||||||||||||||||||||
Caribbean (2) | — | — | — | — | (30 | ) | — | (95 | ) | — | |||||||||||||||||||
Europe | 133 | 0.1 | 137 | 0.1 | 541 | 0.2 | 614 | 0.1 | |||||||||||||||||||||
$ | 97,200 | 100 | % | $ | 148,765 | 100 | % | $ | 249,755 | 100 | % | $ | 410,927 | 100 | % | ||||||||||||||
-1 | "Worldwide" is comprised of contracts that reinsure risks in more than one geographic area and do not specifically exclude the U.S. | ||||||||||||||||||||||||||||
-2 | The negative balance represents reversal of premiums due to premium adjustments, termination of contracts or premiums returned upon novation or commutation of contracts. |
ORGANIZATION_AND_BASIS_OF_PRES1
ORGANIZATION AND BASIS OF PRESENTATION (Details) (USD $) | 0 Months Ended |
30-May-07 | |
Common Class A | ' |
Class of Stock [Line Items] | ' |
Stock issued from initial public offering | 11,787,500 |
Price per share of stock issued from initial public offering | $19 |
Common Class B | ' |
Class of Stock [Line Items] | ' |
Stock issued from initial public offering | 2,631,579 |
Price per share of stock issued from initial public offering | $19 |
SIGNIFICANT_ACCOUNTING_POLICIE3
SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Premium deficiency loss | $0 | ' | $0 | ' | $0 |
Profit commission reserves | 12,100,000 | ' | 12,100,000 | ' | 10,500,000 |
Profit commission expense | 400,000 | 900,000 | 1,800,000 | 2,100,000 | ' |
Notes receivable balance related to note placed on non-accrual status | 0 | ' | 0 | ' | 10,500,000 |
Impairment charge relating to accrued interest and principal on note placed on non-accrual status | 0 | 0 | 0 | 6,000,000 | ' |
Gain (Loss) on Sale of Notes Receivable | ' | ' | 4,500,000 | ' | ' |
Notes receivable earned interest annual interest rates | ' | ' | 13.50% | ' | ' |
Maturity term of note receivable | ' | ' | '1 year | ' | ' |
Interest received relating to note placed on non-accrual status | ' | ' | ' | 0 | ' |
Accrued interest | 0 | ' | 0 | ' | 100,000 |
Deposit assets | 700,000 | ' | 700,000 | ' | 1,600,000 |
Losses on deposit accounted contracts | 0 | 0 | 100,000 | 500,000 | ' |
Gain on deposit accounted contracts | $0 | $0 | $0 | $0 | ' |
SIGNIFICANT_ACCOUNTING_POLICIE4
SIGNIFICANT ACCOUNTING POLICIES Fixed Assets (Details) (USD $) | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Cost | $3,178,000 | ' | $3,178,000 |
Accumulated depreciation | -1,583,000 | ' | -1,249,000 |
Net book value | 1,595,000 | ' | 1,929,000 |
Impairments of fixed assets | 0 | 0 | ' |
Computer software | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Cost | 556,000 | ' | 556,000 |
Accumulated depreciation | -259,000 | ' | -206,000 |
Net book value | 297,000 | ' | 350,000 |
Fixed assets estimated useful life | '5 years | ' | ' |
Furniture and fixtures | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Cost | 620,000 | ' | 620,000 |
Accumulated depreciation | -424,000 | ' | -340,000 |
Net book value | 196,000 | ' | 280,000 |
Fixed assets estimated useful life | '5 years | ' | ' |
Leasehold improvements | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Cost | 2,002,000 | ' | 2,002,000 |
Accumulated depreciation | -900,000 | ' | -703,000 |
Net book value | $1,102,000 | ' | $1,299,000 |
SIGNIFICANT_ACCOUNTING_POLICIE5
SIGNIFICANT ACCOUNTING POLICIES Earnings Per Share Reconciliation (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' |
Weighted average shares outstanding - basic | 36,984,650 | 36,875,716 | 37,214,809 | 36,820,199 |
Effect of dilutive service provider share-based awards | 0 | 157,281 | 11,383 | 150,039 |
Effect of dilutive employee and director share-based awards | 0 | 612,056 | 648,435 | 571,385 |
Weighted average shares outstanding - diluted | 36,984,650 | 37,645,053 | 37,874,627 | 37,541,623 |
Stock Options | ' | ' | ' | ' |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' |
Anti-dilutive stock options outstanding | 0 | 180,000 | 0 | 218,197 |
Restricted stock | ' | ' | ' | ' |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' |
Anti-dilutive stock options outstanding | 334,090 | 0 | 0 | 0 |
SIGNIFICANT_ACCOUNTING_POLICIE6
SIGNIFICANT ACCOUNTING POLICIES Income taxes (Details) | 9 Months Ended |
Sep. 30, 2014 | |
Verdant | ' |
Income Taxes [Line Items] | ' |
Income tax rate | 35.00% |
GRIL | Ireland | ' |
Income Taxes [Line Items] | ' |
Tax rate on trading income | 12.50% |
Tax rate on non-trading income | 25.00% |
FINANCIAL_INSTRUMENTS_Schedule
FINANCIAL INSTRUMENTS Schedule of Investments Categorized by Level of Fair Value Hierarchy (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Debt instruments | $23,648 | $4,312 |
Listed equity securities | 1,214,510 | 1,282,156 |
Commodities | 99,016 | 60,888 |
Private and unlisted equity securities | 50,910 | 46,323 |
Financial contracts receivable | 37,103 | 104,048 |
Assets: | 1,425,187 | 1,497,727 |
Listed equity securities, sold not yet purchased | -848,950 | -917,123 |
Debt instruments, sold not yet purchased | -264,350 | -194,567 |
Financial contracts payable | -30,133 | -18,857 |
Liabilities: | -1,143,433 | -1,130,547 |
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 | 1,210,244 | 1,274,920 |
Commodities | 99,016 | 60,888 |
Private and unlisted equity securities | 0 | 0 |
Financial contracts receivable | 8,026 | 4,500 |
Assets: | 1,317,286 | 1,340,308 |
Listed equity securities, sold not yet purchased | -848,950 | -917,123 |
Debt instruments, sold not yet purchased | 0 | 0 |
Financial contracts payable | 0 | 0 |
Liabilities: | -848,950 | -917,123 |
Significant other observable inputs (Level 2) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Debt instruments | 23,026 | 3,785 |
Listed equity securities | 4,266 | 7,236 |
Commodities | 0 | 0 |
Private and unlisted equity securities | 0 | 0 |
Financial contracts receivable | 29,077 | 99,548 |
Assets: | 56,369 | 110,569 |
Listed equity securities, sold not yet purchased | 0 | 0 |
Debt instruments, sold not yet purchased | -264,350 | -194,567 |
Financial contracts payable | -30,133 | -18,857 |
Liabilities: | -294,483 | -213,424 |
Significant unobservable inputs (Level 3) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Debt instruments | 622 | 527 |
Listed equity securities | 0 | 0 |
Commodities | 0 | 0 |
Private and unlisted equity securities | 50,910 | 46,323 |
Financial contracts receivable | 0 | 0 |
Assets: | 51,532 | 46,850 |
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 $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | |
Net Investment Income (Loss) | Net Investment Income (Loss) | Net Investment Income (Loss) | Net Investment Income (Loss) | Quoted prices in active markets (Level 1) | Quoted prices in active markets (Level 1) | Quoted prices in active markets (Level 1) | Quoted prices in active markets (Level 1) | Significant unobservable inputs (Level 3) | Significant unobservable inputs (Level 3) | Significant other observable inputs (Level 2) | Significant other observable inputs (Level 2) | Significant other observable inputs (Level 2) | Significant other observable inputs (Level 2) | Market Approach Valuation Technique [Member] | Market Approach Valuation Technique [Member] | |||||
Private equity and limited partnerships (1) | Private equity and limited partnerships (1) | Significant unobservable inputs (Level 3) | Significant unobservable inputs (Level 3) | |||||||||||||||||
Private equity and limited partnerships (1) | Private equity and limited partnerships (1) | |||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of investments in private equity funds | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $11,700,000 | $41,600,000 | ' | ' | ' | ' | $32,800,000 | $0 |
Transfers out of Level 3 | 4,044,000 | 4,945,000 | 4,044,000 | 24,581,000 | ' | ' | ' | ' | 0 | 0 | 0 | 19,600,000 | ' | ' | 4,000,000 | 4,900,000 | 4,000,000 | 4,900,000 | ' | ' |
Transfers from Level 2 to Level 1 due to lock-up period restriction expiration | 10,000,000 | 2,400,000 | 10,000,000 | 2,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total realized and unrealized gains (losses) included in earnings, net | 3,197,000 | 2,198,000 | 7,765,000 | 1,035,000 | 0 | 300,000 | 300,000 | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Change in unrealized gains | ' | ' | ' | ' | $2,400,000 | $1,200,000 | $6,700,000 | ($1,500,000) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
FINANCIAL_INSTRUMENTS_Level_3_
FINANCIAL INSTRUMENTS Level 3 reconciliation (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Beginning balance | $51,428,000 | $48,095,000 | $46,850,000 | $39,061,000 |
Purchases | 961,000 | 4,020,000 | 3,032,000 | 39,986,000 |
Sales | -10,000 | -829,000 | -2,071,000 | -6,962,000 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Total realized and unrealized gains (losses) included in earnings, net | 3,197,000 | 2,198,000 | 7,765,000 | 1,035,000 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | -4,044,000 | -4,945,000 | -4,044,000 | -24,581,000 |
Ending balance | 51,532,000 | 48,539,000 | 51,532,000 | 48,539,000 |
Debt instruments | ' | ' | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Beginning balance | 601,000 | 4,838,000 | 527,000 | 260,000 |
Purchases | 0 | 3,604,000 | 0 | 8,230,000 |
Sales | 0 | 0 | 0 | -28,000 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Total realized and unrealized gains (losses) included in earnings, net | 21,000 | 0 | 95,000 | -20,000 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Ending balance | 622,000 | 8,442,000 | 622,000 | 8,442,000 |
Private equity and limited partnerships (1) | ' | ' | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Beginning balance | 50,827,000 | 43,257,000 | 46,323,000 | 38,801,000 |
Purchases | 961,000 | 416,000 | 3,032,000 | 31,756,000 |
Sales | -10,000 | -829,000 | -2,071,000 | -6,934,000 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Total realized and unrealized gains (losses) included in earnings, net | 3,176,000 | 2,198,000 | 7,670,000 | 1,055,000 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | -4,044,000 | -4,945,000 | -4,044,000 | -24,581,000 |
Ending balance | 50,910,000 | 40,097,000 | 50,910,000 | 40,097,000 |
Net Investment Income (Loss) [Member] | ' | ' | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Total realized and unrealized gains (losses) included in earnings, net | 0 | 300,000 | 300,000 | 600,000 |
Quoted prices in active markets (Level 1) | ' | ' | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Transfers out of Level 3 | 0 | 0 | 0 | -19,600,000 |
Significant other observable inputs (Level 2) | ' | ' | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Transfers out of Level 3 | ($4,000,000) | ($4,900,000) | ($4,000,000) | ($4,900,000) |
FINANCIAL_INSTRUMENTS_Schedule1
FINANCIAL INSTRUMENTS Schedule of Investments Included in Debt Instruments (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Cost/ amortized cost | $25,698 | $5,877 |
Debt instruments | 23,648 | 4,312 |
Corporate debt b U.S. | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Cost/ amortized cost | 2,116 | 2,116 |
Unrealized gains | 0 | 0 |
Unrealized losses | -1,494 | -1,589 |
Debt instruments | 622 | 527 |
Corporate debt b Non U.S. | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Cost/ amortized cost | 5,870 | 3,761 |
Unrealized gains | 204 | 115 |
Unrealized losses | -666 | -91 |
Debt instruments | 5,408 | 3,785 |
Sovereign debt b Non U.S. | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Cost/ amortized cost | 17,712 | ' |
Unrealized gains | 202 | ' |
Unrealized losses | -296 | ' |
Debt instruments | 17,618 | ' |
Total debt instruments | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Cost/ amortized cost | 25,698 | 5,877 |
Unrealized gains | 406 | 115 |
Unrealized losses | ($2,456) | ($1,680) |
FINANCIAL_INSTRUMENTS_Schedule2
FINANCIAL INSTRUMENTS Schedule of Maturity of Debt Instruments (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial Instruments [Abstract] | ' | ' |
Debt instruments, trading, within one year, cost | $0 | $0 |
Debt instruments, trading, within one year, fair value | 0 | 0 |
Debt instruments, trading, from one to five years, cost | 0 | 0 |
Debt instruments, trading, from one to five years, fair value | 0 | 0 |
Debt instruments, trading, from five to ten years, cost | 2,109 | 0 |
Debt instruments, trading, from five to ten years, fair value | 1,568 | 0 |
Debt instruments, trading, more than ten years, cost | 23,589 | 5,877 |
Debt instruments, trading, more than ten years, fair value | 22,080 | 4,312 |
Cost/ amortized cost | 25,698 | 5,877 |
Debt instruments | $23,648 | $4,312 |
FINANCIAL_INSTRUMENTS_Schedule3
FINANCIAL INSTRUMENTS Schedule of Investments in Equity Securities Trading (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Cost/ amortized cost | $25,698 | $5,877 |
Equity securities, trading, at fair value | 1,214,510 | 1,282,156 |
Equities b listed | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Cost/ amortized cost | 991,691 | 923,594 |
Unrealized gains | 243,728 | 361,695 |
Unrealized losses | -43,859 | -28,712 |
Equity securities, trading, at fair value | 1,191,560 | 1,256,577 |
Exchange traded funds | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Cost/ amortized cost | 42,126 | 50,253 |
Unrealized gains | 0 | 0 |
Unrealized losses | -19,176 | -24,674 |
Equity securities, trading, at fair value | 22,950 | 25,579 |
Equities - listed | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Cost/ amortized cost | 1,033,817 | 973,847 |
Unrealized gains | 243,728 | 361,695 |
Unrealized losses | ($63,035) | ($53,386) |
FINANCIAL_INSTRUMENTS_Schedule4
FINANCIAL INSTRUMENTS Schedule of Other Investments (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Cost | $134,114 | $100,177 |
Unrealized gains | 17,908 | 14,425 |
Unrealized losses | -2,096 | -7,391 |
Fair value | 149,926 | 107,211 |
Commodities | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Cost | 95,815 | 54,633 |
Unrealized gains | 3,201 | 6,255 |
Unrealized losses | 0 | 0 |
Fair value | 99,016 | 60,888 |
Private equity and limited partnerships (1) | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Cost | 38,299 | 45,544 |
Unrealized gains | 14,707 | 8,170 |
Unrealized losses | -2,096 | -7,391 |
Fair value | $50,910 | $46,323 |
FINANCIAL_INSTRUMENTS_NAV_Inst
FINANCIAL INSTRUMENTS NAV Instruments (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' |
Percentage of funds that have investment restrictions | 100.00% | ' |
Private equity and limited partnerships (1) | ' | ' |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' |
Unfunded commitments relating to private equity funds | $9.40 | $6.30 |
Significant unobservable inputs (Level 3) | Private equity and limited partnerships (1) | ' | ' |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' |
Fair value of investments in private equity funds | 11.7 | 41.6 |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Sale for Other than NAV, Amount | ' | $26.30 |
FINANCIAL_INSTRUMENTS_Investme
FINANCIAL INSTRUMENTS Investments in Securities Sold, Not Yet Purchased (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Equities - listed | ' | ' |
Investments Sold, Not yet Purchased [Line Items] | ' | ' |
Unrealized gains | $243,728 | $361,695 |
Unrealized losses | -63,035 | -53,386 |
Exchange traded funds | ' | ' |
Investments Sold, Not yet Purchased [Line Items] | ' | ' |
Unrealized gains | 0 | 0 |
Unrealized losses | -19,176 | -24,674 |
Corporate debt b U.S. | ' | ' |
Investments Sold, Not yet Purchased [Line Items] | ' | ' |
Unrealized gains | 0 | 0 |
Unrealized losses | -1,494 | -1,589 |
Securities Sold, Not yet Purchased | ' | ' |
Investments Sold, Not yet Purchased [Line Items] | ' | ' |
Proceeds | -1,038,503 | -1,021,536 |
Unrealized gains | 68,635 | 57,856 |
Unrealized losses | -143,432 | -148,010 |
Fair value | -1,113,300 | -1,111,690 |
Securities Sold, Not yet Purchased | Equities - listed | ' | ' |
Investments Sold, Not yet Purchased [Line Items] | ' | ' |
Proceeds | -763,551 | -836,708 |
Unrealized gains | 64,963 | 57,854 |
Unrealized losses | -128,315 | -130,621 |
Fair value | -826,903 | -909,475 |
Securities Sold, Not yet Purchased | Exchange traded funds | ' | ' |
Investments Sold, Not yet Purchased [Line Items] | ' | ' |
Proceeds | -21,297 | -6,318 |
Unrealized gains | 25 | 0 |
Unrealized losses | -774 | -1,330 |
Fair value | -22,046 | -7,648 |
Securities Sold, Not yet Purchased | Corporate debt b U.S. | ' | ' |
Investments Sold, Not yet Purchased [Line Items] | ' | ' |
Proceeds | -7,066 | -8,135 |
Unrealized gains | 316 | 2 |
Unrealized losses | -11 | -235 |
Fair value | -6,761 | -8,368 |
Securities Sold, Not yet Purchased | Sovereign debt b Non U.S. | ' | ' |
Investments Sold, Not yet Purchased [Line Items] | ' | ' |
Proceeds | -246,589 | -170,375 |
Unrealized gains | 3,331 | 0 |
Unrealized losses | -14,332 | -15,824 |
Fair value | ($257,590) | ($186,199) |
FINANCIAL_INSTRUMENTS_Schedule5
FINANCIAL INSTRUMENTS Schedule of Fair Value of Financial Contracts Outstanding (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivative [Line Items] | ' | ' |
Financial contracts receivable | $37,103 | $104,048 |
Financial contracts payable | -30,133 | -18,857 |
Financial contracts receivable | ' | ' |
Derivative [Line Items] | ' | ' |
Financial contracts receivable | 37,103 | 104,048 |
Financial contracts payable | ' | ' |
Derivative [Line Items] | ' | ' |
Financial contracts payable | -30,133 | -18,857 |
Interest rate options | Financial contracts receivable | ' | ' |
Derivative [Line Items] | ' | ' |
Financial contracts receivable, Notional amount of underlying instruments | 78,000 | 391,559 |
Financial contracts receivable | 0 | 26 |
Put options | Financial contracts receivable | ' | ' |
Derivative [Line Items] | ' | ' |
Financial contracts receivable, Notional amount of underlying instruments | 272,799 | 217,359 |
Financial contracts receivable | 11,873 | 12,923 |
Total return swaps b equities | Financial contracts receivable | ' | ' |
Derivative [Line Items] | ' | ' |
Financial contracts receivable, Notional amount of underlying instruments | 155,717 | 178,988 |
Financial contracts receivable | 16,037 | 83,325 |
Total return swaps b equities | Financial contracts payable | ' | ' |
Derivative [Line Items] | ' | ' |
Financial contracts payable, Notional amount of underlying instruments | 116,899 | 36,983 |
Financial contracts payable | -26,107 | -11,194 |
Warrants and rights on listed equities | Financial contracts receivable | ' | ' |
Derivative [Line Items] | ' | ' |
Financial contracts receivable, Notional amount of underlying instruments | 4,874 | 5,237 |
Financial contracts receivable | 2,720 | 2,891 |
Credit default swaps, purchased | Corporate debt b U.S. | Financial contracts payable | ' | ' |
Derivative [Line Items] | ' | ' |
Financial contracts payable, Notional amount of underlying instruments | 221,198 | 273,877 |
Financial contracts payable | -1,681 | -3,625 |
Credit default swaps, purchased | Sovereign debt b Non U.S. | Financial contracts payable | ' | ' |
Derivative [Line Items] | ' | ' |
Financial contracts payable, Notional amount of underlying instruments | 251,467 | 251,467 |
Financial contracts payable | -2,345 | -3,980 |
Forwards | Financial contracts receivable | ' | ' |
Derivative [Line Items] | ' | ' |
Financial contracts receivable, Notional amount of underlying instruments | 30,202 | 71,162 |
Financial contracts receivable | 1,167 | 383 |
Forwards | Financial contracts payable | ' | ' |
Derivative [Line Items] | ' | ' |
Financial contracts payable, Notional amount of underlying instruments | ' | 32,100 |
Financial contracts payable | ' | -58 |
Futures | Financial contracts receivable | ' | ' |
Derivative [Line Items] | ' | ' |
Financial contracts receivable, Notional amount of underlying instruments | 43,454 | 117,494 |
Financial contracts receivable | $5,306 | $4,500 |
FINANCIAL_INSTRUMENTS_Schedule6
FINANCIAL INSTRUMENTS Schedule of Reported Gains and Losses on Derivatives (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (loss) on derivatives recognized in income | $4,421 | $27,518 | $9,310 | $86,779 |
Forwards | Net Investment Income (Loss) | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (loss) on derivatives recognized in income | 1,289 | -1,282 | -1,442 | 5,780 |
Futures | Net Investment Income (Loss) | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (loss) on derivatives recognized in income | 8,617 | 3,628 | 4,657 | 4,677 |
Interest rate options | Net Investment Income (Loss) | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (loss) on derivatives recognized in income | 0 | -97 | -26 | -62 |
Options, warrants, and rights | Net Investment Income (Loss) | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (loss) on derivatives recognized in income | 240 | -12,025 | -17,868 | 20,681 |
Total return swaps b equities | Net Investment Income (Loss) | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (loss) on derivatives recognized in income | -5,642 | 38,825 | 24,432 | 59,507 |
Corporate debt b U.S. | Credit default swaps, purchased | Net Investment Income (Loss) | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (loss) on derivatives recognized in income | -11 | -589 | -157 | -2,847 |
Sovereign debt b Non U.S. | Credit default swaps, purchased | Net Investment Income (Loss) | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (loss) on derivatives recognized in income | ($72) | ($942) | ($286) | ($957) |
FINANCIAL_INSTRUMENTS_Schedule7
FINANCIAL INSTRUMENTS Schedule of Volumes of Derivative Activities (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Derivative [Line Items] | ' | ' | ' | ' | ||||
Entered | ' | $279,953 | ' | ' | ||||
Exited | ' | 387,902 | ' | ' | ||||
Derivatives not designated as hedging instruments | ' | ' | ' | ' | ||||
Derivative [Line Items] | ' | ' | ' | ' | ||||
Entered | 251,117 | ' | 982,601 | 1,589,644 | ||||
Exited | 110,113 | ' | 521,563 | 1,541,954 | ||||
Forwards | Derivatives not designated as hedging instruments | ' | ' | ' | ' | ||||
Derivative [Line Items] | ' | ' | ' | ' | ||||
Entered | 0 | 30,817 | 0 | 417,754 | ||||
Exited | 10,943 | 0 | 74,134 | 115,884 | ||||
Futures | ' | ' | ' | ' | ||||
Derivative [Line Items] | ' | ' | ' | ' | ||||
Entered | ' | 0 | ' | ' | ||||
Exited | ' | 12,778 | ' | ' | ||||
Futures | Derivatives not designated as hedging instruments | ' | ' | ' | ' | ||||
Derivative [Line Items] | ' | ' | ' | ' | ||||
Entered | 0 | ' | 128,823 | 218,519 | ||||
Exited | 21,570 | ' | 192,134 | 180,027 | ||||
Interest rate options | ' | ' | ' | ' | ||||
Derivative [Line Items] | ' | ' | ' | ' | ||||
Entered | ' | 0 | ' | ' | ||||
Exited | ' | 95,400 | [1] | ' | ' | |||
Interest rate options | Derivatives not designated as hedging instruments | ' | ' | ' | ' | ||||
Derivative [Line Items] | ' | ' | ' | ' | ||||
Entered | ' | ' | ' | 0 | ||||
Exited | ' | ' | ' | 376,385 | [1] | |||
Options, warrants and rights (1) | ' | ' | ' | ' | ||||
Derivative [Line Items] | ' | ' | ' | ' | ||||
Entered | ' | 232,530 | ' | ' | ||||
Exited | ' | 272,988 | [1] | ' | ' | |||
Options, warrants and rights (1) | Derivatives not designated as hedging instruments | ' | ' | ' | ' | ||||
Derivative [Line Items] | ' | ' | ' | ' | ||||
Entered | 230,132 | ' | 757,232 | 765,509 | ||||
Exited | 0 | [1] | ' | 128,147 | [1] | 814,812 | [1] | |
Total return swaps b equities | ' | ' | ' | ' | ||||
Derivative [Line Items] | ' | ' | ' | ' | ||||
Entered | ' | 16,606 | ' | ' | ||||
Exited | ' | 6,736 | ' | ' | ||||
Total return swaps b equities | Derivatives not designated as hedging instruments | ' | ' | ' | ' | ||||
Derivative [Line Items] | ' | ' | ' | ' | ||||
Entered | 20,985 | ' | 96,546 | 187,862 | ||||
Exited | $77,600 | ' | $127,148 | $54,846 | ||||
[1] | Exited amount excludes options which expired or were exercised during the period. |
FINANCIAL_INSTRUMENTS_Schedule8
FINANCIAL INSTRUMENTS Schedule of Gross and Net Amounts of Financial Instruments and Cash Collateral (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial Instruments [Abstract] | ' | ' |
Financial contracts receivable, Gross amounts of recognized assets (liabilities) | $37,103 | $104,048 |
Financial contracts receivable, Gross amounts offset in the balance sheet | 0 | 0 |
Financial contracts receivable, Net amounts of assets (liabilities) presented in the balance sheet | 37,103 | 104,048 |
Financial contracts receivable, Financial instruments available for offset | -18,469 | -18,857 |
Financial contracts receivable, Cash collateral (received) pledged | -1,929 | -49,422 |
Financial contracts receivable, Net amount of asset (liability) | 16,705 | 35,769 |
Financial contracts payable, Fair Value, Gross Liability | -30,133 | -18,857 |
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 | -30,133 | -18,857 |
Financial contracts payable, Financial instruments available for offset | 18,469 | 18,857 |
Financial contracts payable, Cash collateral (received) pledged | 11,664 | 0 |
Financial contracts payable, Net amount of asset (liability) | $0 | $0 |
DUE_TO_PRIME_BROKERS_Details
DUE TO PRIME BROKERS (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | GLRE | GRIL | Collateral for LOCs issued | Collateral for LOCs issued | Investment Purchases | Investment Purchases | ||
Due to Prime Brokers [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Amounts due to prime brokers | $266,677 | $314,702 | ' | ' | $174,900 | $202,200 | $91,800 | $112,500 |
Maximum temporary leverage | ' | ' | 30.00% | 20.00% | ' | ' | ' | ' |
Maximum long-term leverage | ' | ' | 15.00% | 5.00% | ' | ' | ' | ' |
RETROCESSION_Details
RETROCESSION (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Ceded Credit Risk [Line Items] | ' | ' | ' | ' | ' |
Loss and loss adjustment expenses incurred, net | $53,028,000 | $94,366,000 | $177,035,000 | $238,989,000 | ' |
Loss and loss expenses recovered and recoverable | 500,000 | 300,000 | 1,600,000 | -10,500,000 | ' |
Loss and loss adjustment expenses recoverable | 11,214,000 | ' | 11,214,000 | ' | 16,829,000 |
Funds withheld | 7,462,000 | ' | 7,462,000 | ' | 10,126,000 |
Provision for uncollectible losses recoverable | 0 | ' | 0 | ' | 0 |
Unrated | ' | ' | ' | ' | ' |
Ceded Credit Risk [Line Items] | ' | ' | ' | ' | ' |
Loss and loss adjustment expenses recoverable | 11,200,000 | ' | 11,200,000 | ' | 16,800,000 |
Ceded Credit Risk, Secured | ' | ' | ' | ' | ' |
Ceded Credit Risk [Line Items] | ' | ' | ' | ' | ' |
Funds withheld | 2,400,000 | ' | 2,400,000 | ' | 4,000,000 |
Collateral Held in Trust | 6,500,000 | ' | 6,500,000 | ' | 0 |
Ceded Credit Risk, Unsecured | ' | ' | ' | ' | ' |
Ceded Credit Risk [Line Items] | ' | ' | ' | ' | ' |
Loss and loss adjustment expenses recoverable | 2,300,000 | ' | 2,300,000 | ' | 12,800,000 |
Ceded Credit Risk, Unsecured | Premiums Receivable | ' | ' | ' | ' | ' |
Ceded Credit Risk [Line Items] | ' | ' | ' | ' | ' |
Ceding commission adjustments | $11,000,000 | ' | $11,000,000 | ' | $12,000,000 |
SHAREBASED_COMPENSATION_Narrat
SHARE-BASED COMPENSATION Narrative (Details) (USD $) | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | |||||||||||||||||||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 21, 2004 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 21, 2004 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
General and Administrative Expense | General and Administrative Expense | Service Provider [Member] | Service Provider [Member] | Common Class A | Common Class A | Common Class A | Common Class A | Common Class A | Stock options | Stock options | Restricted stock | Restricted stock | Restricted stock | Restricted stock | RSUs | RSUs | Grant Date [Member] | Grant Date [Member] | Vesting In Year One [Member] | Vesting In Year One [Member] | Vesting In Year Two [Member] | Vesting In Year Two [Member] | Vesting In Year Three [Member] | Vesting In Year Three [Member] | |||
Service Provider [Member] | Service Provider [Member] | Service Provider [Member] | Common Class A | Common Class A | Common Class A | Common Class A | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 31,821 | ' | ' | ' | ' | ' | 31,821 | 38,197 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | '10 years | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $15.71 | $13.09 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares authorized for issuance | ' | ' | ' | ' | ' | ' | ' | ' | 400,000 | 300,000 | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares authorized for stock incentive plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,500,000 | 3,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares available for future issuance relating to share purchase options granted to service provider | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 20,000 | 799,555 | 961,587 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price per share | ' | ' | ' | ' | $10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, Restricted Stock Award, Gross | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 119,566 | 111,231 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of restricted shares forfeited | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27,083 | 16,826 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock compensation expense reversed due to forfeitures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.20 | $0.20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of stock options exercised | 232,500 | 44,500 | ' | ' | ' | 20,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, Issued for Services | ' | ' | ' | ' | ' | ' | 13,861 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued from the exercise of stock options | ' | ' | ' | ' | ' | ' | 151,972 | 44,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intrinsic value of options exercised | 4.9 | 0.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of RSUs issued to employees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 147,626 | ' | ' | ' | 9,668 | 5,347 | ' | ' | ' | ' | ' | ' | ' | ' |
Stock based compensation expense | ' | ' | $3 | $2.70 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SHAREBASED_COMPENSATION_Restri
SHARE-BASED COMPENSATION Restricted Shares (Details) (Restricted stock, USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' | ' |
Number of non-vested restricted shares, Balance at December 31, 2013 | 328,991 | ' |
Number of non-vested restricted shares, Granted | 147,626 | ' |
Number of non-vested restricted shares, Vested | -115,444 | ' |
Number of non-vested restricted shares, Forfeited | -27,083 | ' |
Number of non-vested restricted shares, Balance at September 30, 2014 | 334,090 | ' |
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, 2013 | 24.74 | ' |
Weighted average grant date fair value, Granted | 32.57 | ' |
Weighted average grant date fair value, Vested | 25.35 | ' |
Weighted average grant date fair value, Forfeited | 27.32 | ' |
Weighted average grant date fair value, Balance at September 30, 2014 | 27.78 | ' |
Common Class A [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 119,566 | 111,231 |
Common Class A [Member] | Director [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 28,060 | 36,374 |
SHAREBASED_COMPENSATION_Restri1
SHARE-BASED COMPENSATION Restricted Stock Units (Details) (USD $) | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
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 restricted shares, Balance at December 31, 2013 | 328,991 | ' | ' |
Number of non-vested restricted shares, Granted | 147,626 | ' | ' |
Number of non-vested restricted shares, Vested | -115,444 | ' | ' |
Number of non-vested restricted shares, Forfeited | -27,083 | ' | ' |
Number of non-vested restricted shares, Balance at September 30, 2014 | 334,090 | ' | ' |
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, Granted | $32.57 | ' | ' |
Weighted average grant date fair value, Vested | $25.35 | ' | ' |
Weighted average grant date fair value, Forfeited | $27.32 | ' | ' |
Weighted average grant date fair value, Balance at September 30, 2014 | $27.78 | ' | $24.74 |
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 restricted shares, Balance at December 31, 2013 | 5,941 | ' | ' |
Number of non-vested restricted shares, Granted | 9,668 | 5,347 | ' |
Number of non-vested restricted shares, Vested | 0 | ' | ' |
Number of non-vested restricted shares, Forfeited | 0 | ' | ' |
Number of non-vested restricted shares, Balance at September 30, 2014 | 15,609 | ' | ' |
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, Granted | $32.60 | ' | ' |
Weighted average grant date fair value, Vested | $0 | ' | ' |
Weighted average grant date fair value, Forfeited | $0 | ' | ' |
Weighted average grant date fair value, Balance at September 30, 2014 | $29.72 | ' | $24.41 |
SHAREBASED_COMPENSATION_Share_
SHARE-BASED COMPENSATION Share Based Compensation Options Rollfoward (Details) (USD $) | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' | ' |
Number of options, Balance at December 31, 2013 | 1,402,987 | ' | ' |
Number of options, Granted | 31,821 | ' | ' |
Number of options, Exercised | -232,500 | -44,500 | ' |
Number of options, Forfeited | 0 | ' | ' |
Number of options, Expired | 0 | ' | ' |
Number of options, Balance at September 30, 2014 | 1,202,308 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ' | ' | ' |
Weighted average exercise price, Granted | $32.37 | ' | ' |
Weighted average exercise price, Exercised | $11.24 | ' | ' |
Weighted average exercise price, Forfeited | $0 | ' | ' |
Weighted average exercise price, Expired | $0 | ' | ' |
Weighted average exercise price, Balance at September 30, 2014 | $17.14 | ' | $15.82 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ' | ' | ' |
Weighted average grant date fair value, Granted | $15.71 | $13.09 | ' |
Weighted average grant date fair value, Exercised | $5.65 | ' | ' |
Weighted average grant date fair value, Forfeited | $0 | ' | ' |
Weighted average grant date fair value, Expired | $0 | ' | ' |
Weighted average grant date fair value, Balance at September 30, 2014 | $7.59 | ' | $7.08 |
SHAREBASED_COMPENSATION_Black_
SHARE-BASED COMPENSATION Black Scholes option pricing model assumptions (Details) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' |
Risk free rate | 2.47% | 2.85% |
Estimated volatility | 34.00% | 35.00% |
Expected term (in years) | '10 years | '10 years |
Dividend yield | 0.00% | 0.00% |
Forfeiture rate | 0.00% | 0.00% |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (Board of Directors Chairman, USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
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 | ($13,200,000) | $11,900,000 | $10,900,000 | $33,800,000 |
Investment management fee rate - monthly | ' | ' | 0.13% | ' |
Investment management fee rate - annual | ' | ' | 1.50% | ' |
Management fees | 5,300,000 | 4,600,000 | 15,400,000 | 13,400,000 |
Service Agreement | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Investor relations monthly fee | ' | ' | $5,000 | ' |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
Facility | Facility | Facility | Facility | Facility | ||||
Bank of America, N.A. | Butterfield Bank (Cayman) Limited | Citibank Europe plc | JP Morgan Chase Bank N.A. | |||||
Letters of Credit Facilities [Line Items] | ' | ' | ' | ' | ' | ' | ' | |
Contractual Obligation, Future Minimum Payments Due, Remainder of Fiscal Year | $9,759,000 | [1] | ' | ' | ' | ' | ' | ' |
Facility | ' | ' | 760,000,000 | 200,000,000 | 60,000,000 | 400,000,000 | 100,000,000 | |
Notice period required for termination | ' | ' | ' | '90 days | '90 days | '120 days | '120 days | |
Amount of letters of credit issued | 321,400,000 | 379,100,000 | ' | ' | ' | ' | ' | |
Total equity securities, restricted cash, and cash and cash equivalents fair value pledged as security against the letters of credit | $356,400,000 | $410,300,000 | ' | ' | ' | ' | ' | |
[1] | Given the nature of these investments, the Company is unable to determine with any degree of accuracy when these commitments will be called. Therefore, for purposes of the above table, the Company has assumed that all commitments with no fixed payment schedulesB will be called during the year ended DecemberB 31, 2014 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES Lease (Details) | 3 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |||||
USD ($) | USD ($) | USD ($) | USD ($) | Specialist service agreement | Private equity and limited partnerships (1) | Private equity and limited partnerships (1) | GLRE | GLRE | GLRE | GRIL | |||||
USD ($) | 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 | 100,000 | 100,000 | 400,000 | 300,000 | ' | ' | ' | ' | ' | ' | ' | ||||
Operating lease obligations, 2014 | 139,000 | ' | 139,000 | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Operating lease obligations, 2015 | 557,000 | ' | 557,000 | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Operating lease obligations, 2016 | 500,000 | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Operating lease obligations, 2017 | 466,000 | ' | 466,000 | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Operating lease obligations, 2018 | 233,000 | ' | 233,000 | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Operating lease obligations, Thereafter | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Operating lease obligations, Total | 1,895,000 | ' | 1,895,000 | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Specialist service agreement and Private equity and limited partnerships, 2014 | 9,759,000 | [1] | ' | 9,759,000 | [1] | ' | 225,000 | 9,395,000 | [1] | 6,300,000 | [1] | ' | ' | ' | ' |
Specialist service agreement and Private equity and limited partnerships, 2015 | 1,307,000 | [1] | ' | 1,307,000 | [1] | ' | 750,000 | 0 | [1] | ' | ' | ' | ' | ' | |
Specialist service agreement and Private equity and limited partnerships, 2016 | 800,000 | [1] | ' | 800,000 | [1] | ' | 300,000 | 0 | [1] | ' | ' | ' | ' | ' | |
Specialist service agreement and Private equity and limited partnerships, 2017 | 466,000 | [1] | ' | 466,000 | [1] | ' | 0 | 0 | [1] | ' | ' | ' | ' | ' | |
Specialist service agreement and Private equity and limited partnerships, 2018 | 233,000 | [1] | ' | 233,000 | [1] | ' | 0 | 0 | [1] | ' | ' | ' | ' | ' | |
Specialist service agreement and Private equity and limited partnership, Thereafter | 0 | [1] | ' | 0 | [1] | ' | 0 | 0 | [1] | ' | ' | ' | ' | ' | |
Specialist service agreement and Private equity and limited partnerships, Total | $12,565,000 | [1] | ' | $12,565,000 | [1] | ' | $1,275,000 | $9,395,000 | [1] | ' | ' | ' | ' | ' | |
[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_Details
SEGMENT REPORTING (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Segment | |||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | |
Number of operating segments | ' | ' | 1 | ' | |
Gross premiums written | $97,200 | $148,765 | $249,755 | $410,927 | |
Gross premiums by line of business as a percentage of total gross premiums | 100.00% | 100.00% | 100.00% | 100.00% | |
Total Property | ' | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | |
Gross premiums written | 33,086 | 56,867 | 80,599 | 169,248 | |
Gross premiums by line of business as a percentage of total gross premiums | 34.00% | 38.20% | 32.30% | 41.20% | |
Aviation | ' | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | |
Gross premiums written | 0 | 0 | 290 | 96 | |
Gross premiums by line of business as a percentage of total gross premiums | 0.00% | 0.00% | 0.10% | 0.00% | |
Commercial | ' | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | |
Gross premiums written | 1,953 | 789 | 9,183 | 10,523 | |
Gross premiums by line of business as a percentage of total gross premiums | 2.00% | 0.50% | 3.70% | 2.60% | |
Energy | ' | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | |
Gross premiums written | 0 | 0 | 2,131 | 1,553 | |
Gross premiums by line of business as a percentage of total gross premiums | 0.00% | 0.00% | 0.90% | 0.40% | |
Motor physical damage | ' | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | |
Gross premiums written | 7,405 | 21,557 | 19,759 | 48,895 | |
Gross premiums by line of business as a percentage of total gross premiums | 7.60% | 14.50% | 7.90% | 11.90% | |
Personal | ' | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | |
Gross premiums written | 23,728 | 34,521 | 49,236 | 108,181 | |
Gross premiums by line of business as a percentage of total gross premiums | 24.40% | 23.20% | 19.70% | 26.30% | |
Total Casualty | ' | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | |
Gross premiums written | 49,835 | 83,601 | 124,460 | 213,816 | |
Gross premiums by line of business as a percentage of total gross premiums | 51.30% | 56.20% | 49.90% | 52.00% | |
General liability (1) | ' | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | |
Gross premiums written | 4,260 | 1,668 | 7,176 | -544 | [1] |
Gross premiums by line of business as a percentage of total gross premiums | 4.40% | 1.10% | 2.90% | -0.10% | [1] |
Marine liability | ' | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | |
Gross premiums written | 20 | 0 | 3,867 | 603 | |
Gross premiums by line of business as a percentage of total gross premiums | 0.00% | 0.00% | 1.60% | 0.10% | |
Motor liability | ' | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | |
Gross premiums written | 41,177 | 81,474 | 108,631 | 212,174 | |
Gross premiums by line of business as a percentage of total gross premiums | 42.40% | 54.80% | 43.50% | 51.60% | |
Professional liability | ' | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | |
Gross premiums written | 4,378 | 459 | 4,786 | 1,583 | |
Gross premiums by line of business as a percentage of total gross premiums | 4.50% | 0.30% | 1.90% | 0.40% | |
Total Specialty | ' | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | |
Gross premiums written | 14,279 | 8,297 | 44,696 | 27,863 | |
Gross premiums by line of business as a percentage of total gross premiums | 14.70% | 5.60% | 17.80% | 6.80% | |
Financial | ' | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | |
Gross premiums written | 812 | 806 | 3,830 | 2,103 | |
Gross premiums by line of business as a percentage of total gross premiums | 0.80% | 0.60% | 1.50% | 0.50% | |
Health | ' | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | |
Gross premiums written | 13,113 | 7,491 | 40,512 | 29,975 | |
Gross premiums by line of business as a percentage of total gross premiums | 13.50% | 5.00% | 16.20% | 7.30% | |
Workersb compensation (1) | ' | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | |
Gross premiums written | $354 | $0 | $354 | ($4,215) | [1] |
Gross premiums by line of business as a percentage of total gross premiums | 0.40% | 0.00% | 0.10% | -1.00% | [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 | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Gross premiums written | $97,200 | $148,765 | $249,755 | $410,927 | ||||
Gross premiums by geographical area as a percentage of total gross premiums | 100.00% | 100.00% | ' | ' | ||||
Gross premiums by line of business as a percentage of total gross premiums | 100.00% | 100.00% | 100.00% | 100.00% | ||||
U.S. | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Gross premiums written | 89,641 | 148,249 | 227,753 | 400,594 | ||||
Gross premiums by geographical area as a percentage of total gross premiums | 92.20% | 99.70% | ' | ' | ||||
Gross premiums by line of business as a percentage of total gross premiums | ' | ' | 91.20% | 97.50% | ||||
Worldwide (1) | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Gross premiums written | 7,426 | [1] | 379 | [1] | 21,491 | [1] | 9,814 | [1] |
Gross premiums by geographical area as a percentage of total gross premiums | 7.70% | [1] | 0.20% | [1] | ' | ' | ||
Gross premiums by line of business as a percentage of total gross premiums | ' | ' | 8.60% | [1] | 2.40% | [1] | ||
Caribbean (2) | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Gross premiums written | 0 | 0 | -30 | [2] | -95 | [2] | ||
Gross premiums by geographical area as a percentage of total gross premiums | 0.00% | 0.00% | ' | ' | ||||
Gross premiums by line of business as a percentage of total gross premiums | ' | ' | 0.00% | 0.00% | ||||
Europe | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Gross premiums written | $133 | $137 | $541 | $614 | ||||
Gross premiums by geographical area as a percentage of total gross premiums | 0.10% | 0.10% | ' | ' | ||||
Gross premiums by line of business as a percentage of total gross premiums | ' | ' | 0.20% | 0.10% | ||||
[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. |