Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 22, 2015 | |
Document and Entity Information [Line Items] | ||
Entity Registrant Name | GREENLIGHT CAPITAL RE, LTD. | |
Entity Central Index Key | 1,385,613 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Common Class A | ||
Document and Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 30,772,572 | |
Common Class B | ||
Document and Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 6,254,895 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Investments | ||
Debt instruments, trading, at fair value | $ 28,657 | $ 49,212 |
Equity securities, trading, at fair value | 966,755 | 1,266,175 |
Other investments, at fair value | 108,125 | 115,591 |
Total investments | 1,103,537 | 1,430,978 |
Cash and cash equivalents | 99,351 | 12,030 |
Restricted cash and cash equivalents | 1,046,157 | 1,296,914 |
Financial contracts receivable, at fair value | 14,872 | 47,171 |
Reinsurance balances receivable | 156,952 | 151,185 |
Loss and loss adjustment expenses recoverable | 3,253 | 11,523 |
Deferred acquisition costs, net | 54,023 | 34,420 |
Unearned premiums ceded | 2,680 | 4,027 |
Notes receivable | 27,546 | 1,566 |
Other assets | 6,008 | 5,478 |
Total assets | 2,514,379 | 2,995,292 |
Liabilities | ||
Securities sold, not yet purchased, at fair value | 800,105 | 1,090,731 |
Financial contracts payable, at fair value | 25,864 | 44,592 |
Due to prime brokers | 266,975 | 211,070 |
Loss and loss adjustment expense reserves | 302,165 | 264,243 |
Unearned premium reserves | 189,945 | 128,736 |
Reinsurance balances payable | 18,652 | 40,372 |
Funds withheld | 6,428 | 6,558 |
Other liabilities | 12,629 | 14,949 |
Total liabilities | 1,622,763 | 1,801,251 |
Equity | ||
Preferred share capital (par value $0.10; authorized, 50,000,000; none issued) | 0 | 0 |
Ordinary share capital (Class A: par value $0.10; authorized, 100,000,000; issued and outstanding, 30,772,572 (2014: 31,129,648): Class B: par value $0.10; authorized, 25,000,000; issued and outstanding, 6,254,895 (2014: 6,254,895)) | 3,703 | 3,738 |
Additional paid-in capital | 495,258 | 500,553 |
Retained earnings | 368,392 | 660,860 |
Shareholders’ equity attributable to shareholders | 867,353 | 1,165,151 |
Non-controlling interest in joint venture | 24,263 | 28,890 |
Total equity | 891,616 | 1,194,041 |
Total liabilities and equity | $ 2,514,379 | $ 2,995,292 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Shareholders' equity | ||
Preferred share capital, par value | $ 0.10 | $ 0.10 |
Preferred share capital, authorized | 50,000,000 | 50,000,000 |
Preferred share capital, issued | 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) | 30,772,572 | 31,129,648 |
Ordinary share capital, outstanding (in shares) | 30,772,572 | 31,129,648 |
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 | 6,254,895 |
Ordinary share capital, outstanding (in shares) | 6,254,895 | 6,254,895 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues | ||||
Gross premiums written | $ 134,568 | $ 97,200 | $ 357,240 | $ 249,755 |
Gross premiums ceded | (2,288) | (2,706) | (5,782) | (11,405) |
Net premiums written | 132,280 | 94,494 | 351,458 | 238,350 |
Change in net unearned premium reserves | (30,286) | (15,003) | (62,986) | 40,685 |
Net premiums earned | 101,994 | 79,491 | 288,472 | 279,035 |
Net investment income (loss) | (191,322) | (54,027) | (236,456) | 49,755 |
Other income (expense), net | (542) | 2,664 | (2,714) | 1,445 |
Total revenues | (89,870) | 28,128 | 49,302 | 330,235 |
Expenses | ||||
Loss and loss adjustment expenses incurred, net | 97,421 | 53,028 | 237,281 | 177,035 |
Acquisition costs, net | 32,146 | 22,478 | 82,926 | 85,844 |
General and administrative expenses | 5,382 | 6,013 | 18,436 | 17,771 |
Total expenses | 134,949 | 81,519 | 338,643 | 280,650 |
Income (loss) before income tax expense | (224,819) | (53,391) | (289,341) | 49,585 |
Income tax benefit | 1,233 | 254 | 1,394 | 828 |
Net income (loss) including non-controlling interest | (223,586) | (53,137) | (287,947) | 50,413 |
Loss (income) attributable to non-controlling interest in joint venture | 3,909 | 1,369 | 4,627 | (1,509) |
Net income (loss) | $ (219,677) | $ (51,768) | $ (283,320) | $ 48,904 |
Earnings (loss) per share | ||||
Basic | $ (5.98) | $ (1.40) | $ (7.73) | $ 1.31 |
Diluted | $ (5.98) | $ (1.40) | $ (7.73) | $ 1.29 |
Weighted average number of ordinary shares used in the determination of earnings and loss per share | ||||
Basic | 36,710,216 | 36,984,650 | 36,636,464 | 37,214,809 |
Diluted | 36,710,216 | 36,984,650 | 36,636,464 | 37,874,627 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Ordinary share capital | Additional paid-in capital | Retained earnings | Shareholders' equity attributable to shareholders | Non-controlling interest in joint venture |
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 (loss) attributable to non-controlling interest in joint venture | 1,509 | 0 | 0 | 0 | 0 | 1,509 |
Net income (loss) | 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 |
Balance at Dec. 31, 2014 | 1,194,041 | 3,738 | 500,553 | 660,860 | 1,165,151 | 28,890 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issue of Class A ordinary shares, net of forfeitures | 26 | 26 | 0 | 0 | 26 | 0 |
Repurchase of Class A ordinary shares | (17,692) | (61) | (8,483) | (9,148) | (17,692) | 0 |
Share-based compensation expense, net of forfeitures | 3,188 | 0 | 3,188 | 0 | 3,188 | 0 |
Non-controlling interest withdrawal from joint venture, net | 0 | 0 | 0 | 0 | 0 | 0 |
Income (loss) attributable to non-controlling interest in joint venture | (4,627) | 0 | 0 | 0 | 0 | (4,627) |
Net income (loss) | (283,320) | 0 | 0 | (283,320) | (283,320) | 0 |
Balance at Sep. 30, 2015 | $ 891,616 | $ 3,703 | $ 495,258 | $ 368,392 | $ 867,353 | $ 24,263 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Net income (loss) | $ (283,320) | $ 48,904 |
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 | 216,539 | 182,681 |
Net realized gains on investments and financial contracts | (30,587) | (266,708) |
Foreign exchange (gains) losses on investments | 21,496 | 6,032 |
Income (loss) attributable to non-controlling interest in joint venture | (4,627) | 1,509 |
Share-based compensation expense, net of forfeitures | 3,214 | 3,044 |
Depreciation expense | 304 | 334 |
Net change in | ||
Reinsurance balances receivable | (5,767) | 1,825 |
Loss and loss adjustment expenses recoverable | 8,270 | 5,615 |
Deferred acquisition costs, net | (19,603) | 13,552 |
Unearned premiums ceded | 1,347 | (2,091) |
Other assets | (834) | (3,223) |
Loss and loss adjustment expense reserves | 37,922 | (51,390) |
Unearned premium reserves | 61,209 | (39,136) |
Reinsurance balances payable | (21,720) | 4,262 |
Funds withheld | (130) | (2,664) |
Other liabilities | (2,320) | 377 |
Performance compensation payable to related party | 0 | 10,852 |
Net cash provided by (used in) operating activities | (18,607) | (86,225) |
Investing activities | ||
Purchases of investments, trading | (827,800) | (898,614) |
Sales of investments, trading | 895,234 | 1,059,145 |
Purchases of financial contracts | (14,366) | (16,697) |
Dispositions of financial contracts | 3,749 | 101,522 |
Securities sold, not yet purchased | 734,877 | 710,954 |
Dispositions of securities sold, not yet purchased | (939,264) | (791,357) |
Change in due to prime brokers | 55,905 | (48,025) |
Change in restricted cash and cash equivalents, net | 241,265 | (39,126) |
Change in notes receivable, net | (25,980) | 18,503 |
Non-controlling interest withdrawal from joint venture, net | 0 | (5,000) |
Net cash (used in) provided by investing activities | 123,620 | 91,305 |
Financing activities | ||
Repurchase of Class A ordinary shares | (17,692) | 0 |
Net cash used in financing activities | (17,692) | 0 |
Net increase (decrease) in cash and cash equivalents | 87,321 | 5,080 |
Cash and cash equivalents at beginning of the period | 12,030 | 3,722 |
Cash and cash equivalents at end of the period | 99,351 | 8,802 |
Supplementary information | ||
Interest paid in cash | $ 19,237 | $ 17,302 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2015 | |
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, 2014 . 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, 2015 are not necessarily indicative of the results expected for the full calendar year. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2015 | |
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 9 ). 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, 2015 and December 31, 2014 , 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, 2015 , $15.3 million ( December 31, 2014 : $11.0 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, 2015 , $4.2 million and $5.8 million , respectively, ( 2014 : $0.4 million and $1.8 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. Interest income and realized gains or losses on sale of notes receivable are included under net investment income (loss) in the condensed consolidated statements of income. The Company regularly reviews all notes receivable individually for impairment and records valuation allowance provisions for uncollectible and non-performing notes. The Company places notes on non-accrual status when the recorded 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, 2015 , $23.9 million of notes receivable (net of any valuation allowance) were on non-accrual status ( December 31, 2014 : $0.0 million ) and any payments received are applied to reduce the recorded value of the notes. The increase in notes receivable during the nine months ended September 30, 2015 , related to a settlement agreement entered into with a ceding insurer during the first quarter of 2015 whereby certain amounts, previously classified under reinsurance balances receivable, were converted into a ten-year note receivable. At September 30, 2015 and December 31, 2014 , there was no accrued interest included in the notes receivable balance. Based on management’s assessment, the recorded values of the notes receivable, net of any valuation allowance, at September 30, 2015 and December 31, 2014 , were expected to be fully collectible. 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, 2015 and December 31, 2014 , there were no material deposit assets or deposit liabilities and no material gains or losses on deposit accounted contracts. 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 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 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. The Company may from time to time enter into underwriting contracts such as industry loss warranty contracts ("ILW") that are treated as derivatives for U.S GAAP purposes. 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 each 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 may purchase and sell 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). The Company may purchase ILWs to manage its exposure to weather related events. An ILW is designated as a weather derivative swap and included in financial contracts receivable. The carrying amount of an ILW is the unamortized portion of the premium paid for an ILW. An estimate of fair value is not practicable since ILW contracts are generally not exchange traded, and the time and cost involved in creating a valuation model to estimate the fair value would be excessive relative to the size and duration of the ILW. 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 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 2015 2014 2015 2014 Weighted average shares outstanding - basic 36,710,216 36,984,650 36,636,464 37,214,809 Effect of dilutive service provider share-based awards — — — 11,383 Effect of dilutive employee and director share-based awards — — — 648,435 Weighted average shares outstanding - diluted 36,710,216 36,984,650 36,636,464 37,874,627 Anti-dilutive stock options outstanding 250,018 — 151,821 — Participating securities excluded from calculation of loss per share 307,663 334,090 307,663 — 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. Recent Accounting Pronouncements In May 2015, the FASB issued Accounting Standards Update 2015-07, "Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share or Its Equivalent" ("ASU 2015-07"). The amendments apply to reporting entities that elect to measure the fair value of an investment using the net asset value ("NAV") per share (or its equivalent) as a practical expedient. The amendments remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share as a practical expedient. The amendments also remove the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share as a practical expedient. Rather, those disclosures are limited to investments for which the entity has elected to measure the fair value using that practical expedient. The amendments in ASU 2015-07 are effective for reporting periods beginning after December 15, 2015, with early adoption permitted. Entities are required to apply the amendments in this update retrospectively to all periods presented. As the Company measures certain investments in private equity funds using the NAV as a practicable expedient, upon adoption of ASU 2015-07, the fair value of these investments will be removed from the fair value hierarchy for all periods presented in the Company’s condensed consolidated financial statements. The Company will continue to disclose information on these investments for which fair value is measured at NAV as a practical expedient. In May 2015, the FASB issued ASU 2015-09, "Financial Services - Insurance (Topic 944): Disclosures about Short-Duration Contracts" ("ASU 2015-09"). ASU 2015-09 requires additional disclosures for short-duration contracts including incurred and paid claims development information, claims duration information, quantitative claims frequency information (unless impracticable), and an explanation of significant changes in methodologies and assumptions used to calculate the loss and loss adjustment expense reserves. ASU 2015-09 is effective for public entities for annual reporting periods beginning after December 15, 2015, and interim reporting periods within annual reporting periods beginning after December 15, 2016 with early adoption permitted. The Company is evaluating the impact of the disclosure requirements of ASU 2015-09 and is preparing to disclose the additional information in its consolidated financial statements for the fiscal year ending December 31, 2016 and thereafter. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2015 | |
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, 2015 : Fair value measurements as of September 30, 2015 Description Quoted prices in Significant other Significant Total Assets: ($ in thousands) Debt instruments $ — $ 28,126 $ 531 $ 28,657 Listed equity securities 958,072 8,683 — 966,755 Commodities 88,143 — — 88,143 Private and unlisted equity securities — — 19,982 19,982 Financial contracts receivable 194 14,050 628 14,872 $ 1,046,409 $ 50,859 $ 21,141 $ 1,118,409 Liabilities: Listed equity securities, sold not yet purchased $ (721,349 ) $ — $ — $ (721,349 ) Debt instruments, sold not yet purchased — (78,756 ) — (78,756 ) Financial contracts payable (1,005 ) (24,859 ) — (25,864 ) $ (722,354 ) $ (103,615 ) $ — $ (825,969 ) The following table presents the Company’s investments, categorized by the level of the fair value hierarchy as of December 31, 2014 : Fair value measurements as of December 31, 2014 Description Quoted prices in Significant other Significant Total Assets: ($ in thousands) Debt instruments $ — $ 26,953 $ 22,259 $ 49,212 Listed equity securities 1,259,298 6,877 — 1,266,175 Commodities 96,872 — — 96,872 Private and unlisted equity securities — — 18,719 18,719 Financial contracts receivable 2,463 44,708 — 47,171 $ 1,358,633 $ 78,538 $ 40,978 $ 1,478,149 Liabilities: Listed equity securities, sold not yet purchased $ (834,228 ) $ — $ — $ (834,228 ) Debt instruments, sold not yet purchased — (256,503 ) — (256,503 ) Financial contracts payable — (44,592 ) — (44,592 ) $ (834,228 ) $ (301,095 ) $ — $ (1,135,323 ) 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, 2015 : Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Three months ended September 30, 2015 Assets Liabilities Debt instruments Private and unlisted equity securities Financial contracts receivable Listed equity securities Total Financial contracts payable ($ in thousands) Beginning balance $ 22,181 $ 19,189 $ 3,716 $ 5,189 $ 50,275 $ 8,835 Purchases — 2,234 — — 2,234 — Sales (21,561 ) (1,367 ) — — (22,928 ) — Issuances — — — — — — Settlements — — — — — — Total realized and unrealized gains (losses) and amortization included in earnings, net (89 ) (74 ) (1,239 ) (692 ) (2,094 ) 314 Transfers into Level 3 — — — — — Transfers out of Level 3 — — (1,849 ) (4,497 ) (6,346 ) (9,149 ) Ending balance $ 531 $ 19,982 $ 628 $ — $ 21,141 $ — Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Nine months ended September 30, 2015 Assets Liabilities Debt instruments Private and unlisted equity securities Financial contracts receivable Listed equity securities Total Financial contracts payable ($ in thousands) Beginning balance $ 22,259 $ 18,719 $ — $ — $ 40,978 $ — Purchases — 4,471 2,340 — 6,811 — Sales (21,561 ) (3,239 ) — — (24,800 ) — Issuances — — — — — — Settlements — — — — — — Total realized and unrealized gains (losses) and amortization included in earnings, net (167 ) 31 (2,399 ) (692 ) (3,227 ) 314 Transfers into Level 3 — — 2,536 5,189 7,725 8,835 Transfers out of Level 3 — — (1,849 ) (4,497 ) (6,346 ) (9,149 ) Ending balance $ 531 $ 19,982 $ 628 $ — $ 21,141 $ — During the nine months ended September 30, 2015 , $5.2 million of equity securities, listed on the Athens Stock Exchange (the "ASE"), were transferred from Level 1 to Level 3 securities due to trading being halted after June 26, 2015 for all equity securities listed on the ASE. As of June 30, 2015, there was no active market with observable trading prices to determine the fair value of these securities. Therefore, the fair values for these securities as of June 30, 2015, were based on the last trading price of these securities on the ASE and adjusted for the estimated decline in the fair value of American depository receipts of other comparable securities for the period from June 27, 2015 to June 30, 2015. The ASE resumed trading on August 3, 2015 and the fair values of the ASE listed equity securities were once again based on observable prices in an active market. Therefore, $4.5 million of listed equity securities were transferred from Level 3 to Level 1 securities during the three and nine months ended September 30, 2015 . The fair values for derivatives for which the underlying securities traded on the ASE were also transferred to Level 3 securities during the second quarter of 2015 when the ASE halted trading, and were transferred out of Level 3 securities during the third quarter of 2015 when the ASE resumed trading. Therefore, for the nine months ended September 30, 2015 , $2.5 million and $8.8 million of financial contracts receivable and financial contracts payable, respectively, were transfered from Level 2 to Level 3 due to the fair values being based on unobservable inputs. During the three and nine months ended September 30, 2015 , $1.8 million of financial contracts receivable and $9.1 million of financial contracts payable, respectively, were transfered from Level 3 to Level 2 as fair values were based on observable inputs. There were no other transfers between Level 1, Level 2 or Level 3 during the three and nine months ended September 30, 2015 . The following table presents the reconciliation of the balances for all investments measured at fair value using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2014 : Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Three months ended September 30, 2014 Nine months ended September 30, 2014 Debt instruments Private and unlisted equity securities Total Debt instruments Private and unlisted equity securities Total ($ 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 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 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 2014. However, due to lock-up period restrictions on those securities, they were classified as Level 2 upon transfer until the lock-up period expired. Additionally. 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 . For the three and nine months ended September 30, 2015 , included in net investment loss in the condensed consolidated statements of income were net realized gains relating to Level 3 securities of $0.2 million and $0.4 million , respectively ( three and nine months ended September 30, 2014 : net realized gains of $0.0 million and $0.3 million , respectively). In addition, for the three and nine months ended September 30, 2015 , amortization expense of $0.6 million and $1.7 million , respectively, ( three and nine months ended September 30, 2014 : nil and nil , respectively) relating to financial contracts receivable, valued using unobservable inputs, was included in the condensed consolidated statements of income as other income (expense), net. For Level 3 securities still held as of the reporting date, the change in net unrealized loss for the three and nine months ended September 30, 2015 of $0.3 million and $0.5 million , respectively ( three and nine months ended September 30, 2014 : net unrealized gains of $2.4 million and $6.7 million , respectively), were included in net investment income (loss) in the condensed consolidated statements of income. Investments Debt instruments, trading At September 30, 2015 , the following investments were included in debt instruments: Cost/ Unrealized Unrealized Fair ($ in thousands) Corporate debt – U.S. $ 17,543 $ — $ (6,112 ) $ 11,431 Corporate debt – Non U.S. 2,109 — (1,817 ) 292 Sovereign debt – Non U.S. 17,688 757 (1,511 ) 16,934 Total debt instruments $ 37,340 $ 757 $ (9,440 ) $ 28,657 At December 31, 2014 , the following investments were included in debt instruments: Cost/ Unrealized Unrealized Fair ($ in thousands) Corporate debt – U.S. $ 23,677 $ 5 $ (1,423 ) $ 22,259 Corporate debt – Non U.S. 5,870 49 (1,405 ) 4,514 Municipal debt – U.S. 1,759 — (6 ) 1,753 Sovereign debt – Non U.S. 21,769 — (1,083 ) 20,686 Total debt instruments $ 53,075 $ 54 $ (3,917 ) $ 49,212 The maturity distribution for debt instruments held at September 30, 2015 and December 31, 2014 was as follows: September 30, 2015 December 31, 2014 Cost/ Fair Cost/ Fair ($ in thousands) Within one year $ — $ — $ — $ — From one to five years — — 21,922 21,923 From five to ten years 8,346 5,609 2,401 1,282 More than ten years 28,994 23,048 28,752 26,007 $ 37,340 $ 28,657 $ 53,075 $ 49,212 Equity securities, trading At September 30, 2015 , the following long positions were included in equity securities, trading: Cost Unrealized Unrealized Fair ($ in thousands) Equities – listed $ 1,080,522 $ 58,289 $ (187,420 ) $ 951,391 Exchange traded funds 31,571 — (16,207 ) 15,364 Total equity securities $ 1,112,093 $ 58,289 $ (203,627 ) $ 966,755 At December 31, 2014 , the following long positions were included in equity securities, trading: Cost Unrealized Unrealized Fair ($ in thousands) Equities – listed $ 1,079,955 $ 247,109 $ (80,637 ) $ 1,246,427 Exchange traded funds 42,126 — (22,378 ) 19,748 Total equity securities $ 1,122,081 $ 247,109 $ (103,015 ) $ 1,266,175 Other Investments "Other investments" include commodities and private and unlisted equity securities. As of September 30, 2015 and December 31, 2014 , commodities were comprised of gold bullion. At September 30, 2015 , the following securities were included in other investments: Cost Unrealized Unrealized Fair ($ in thousands) Commodities $ 89,597 $ — $ (1,454 ) $ 88,143 Private and unlisted equity securities 18,863 3,360 (2,241 ) 19,982 $ 108,460 $ 3,360 $ (3,695 ) $ 108,125 At December 31, 2014 , the following securities were included in other investments: Cost Unrealized Unrealized Fair ($ in thousands) Commodities $ 95,815 $ 1,057 $ — $ 96,872 Private and unlisted equity securities 17,238 3,451 (1,970 ) 18,719 $ 113,053 $ 4,508 $ (1,970 ) $ 115,591 As of September 30, 2015 , included in private and unlisted equity securities are investments in private equity funds with a fair value of $12.0 million (December 31, 2014 : $12.3 million ) determined based on unadjusted net asset values reported by the managers of these securities. Some of these values were reported from periods prior to September 30, 2015 . The private equity funds have varying lock-up periods and, as of September 30, 2015 , 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 in the near future. As of September 30, 2015 , the Company had $8.5 million (December 31, 2014 : $8.9 million ) of unfunded commitments relating to private equity funds whose fair values are determined based on unadjusted net asset values reported by the managers of these securities. These commitments are included in the amounts presented in the schedule of commitments and contingencies in Note 9 of these condensed consolidated financial statements. Investments in Securities Sold, Not Yet Purchased Securities sold, not yet purchased are securities that the Company has sold, but does not own, in anticipation of a decline in the market value of the security. The Company’s risk is that the value of the security will increase rather than decline. Consequently, the settlement amount of the liability for securities sold, not yet purchased may exceed the amount recorded in the consolidated balance sheet as the Company is obligated to purchase the securities sold, not yet purchased in the market at prevailing prices to settle its obligations. To establish a position in security sold, not yet purchased, the Company needs to borrow the security for delivery to the buyer. On each day the transaction is open, the liability for the obligation to replace the borrowed security is marked-to-market and an unrealized gain or loss is recorded. At the time the transaction is closed, the Company realizes a gain or loss equal to the difference between the price at which the security was sold and the cost of replacing the borrowed security. While the transaction is open, the Company will also incur an expense for any dividends or interest which will be paid to the lender of the securities. At September 30, 2015 , the following securities were included in investments in securities sold, not yet purchased: Proceeds Unrealized gains Unrealized losses Fair value ($ in thousands) Equities – listed $ (744,239 ) $ 120,519 $ (67,006 ) $ (690,726 ) Exchange traded funds (28,220 ) — (2,403 ) (30,623 ) Sovereign debt – Non U.S. (77,443 ) — (1,313 ) (78,756 ) $ (849,902 ) $ 120,519 $ (70,722 ) $ (800,105 ) At December 31, 2014 , the following securities were included in investments in securities sold, not yet purchased: Proceeds Unrealized gains Unrealized losses Fair value ($ in thousands) Corporate debt – U.S. $ (7,066 ) $ 1,007 $ (5 ) $ (6,064 ) Equities – listed (813,365 ) 91,690 (101,715 ) (823,390 ) Exchange traded funds (9,180 ) — (1,658 ) (10,838 ) Sovereign debt – Non U.S. (246,589 ) 6,635 (10,485 ) (250,439 ) $ (1,076,200 ) $ 99,332 $ (113,863 ) $ (1,090,731 ) Financial Contracts As of September 30, 2015 and December 31, 2014 , the Company had entered into total return equity swaps, interest rate swaps, commodity swaps, CDS, options, warrants, rights, futures and forward 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. In addition, as of September 30, 2015 , the Company had entered into an ILW with certain third-parties in order to purchase protection against worldwide wind and earthquake exposures from January 2015 to December 2015. In return for a fixed payment, the Company is entitled to receive a variable payment in the event of losses incurred by the insurance industry, as a whole, exceeding a specified threshold. The maximum total recovery to the Company under the ILW is $12.0 million . Through September 30, 2015 , the Company was not aware of any industry loss event occurring that would have triggered a recovery under the ILW. At September 30, 2015 , the fair values of financial contracts outstanding were as follows: Financial Contracts Listing (1) Notional amount of Fair value of net assets ($ in thousands) Financial contracts receivable Call options USD 4,227 $ 483 Commodity Swaps USD 24,110 1,977 Put options (2) USD 202,020 7,553 Total return swaps – equities EUR/GBP/HKD/USD 58,336 4,036 Warrants and rights on listed equities EUR 611 195 Weather derivative swap USD 12,000 628 Total financial contracts receivable, at fair value $ 14,872 Financial contracts payable Call options 285 $ (94 ) Commodity Swaps USD 46,329 (8,616 ) Credit default swaps, purchased – corporate debt USD 79,937 (120 ) Credit default swaps, purchased – sovereign debt USD 92,259 (194 ) Forwards KRW 6,311 (81 ) Futures USD 36,697 (1,005 ) Interest Rate Swaps USD 1,926,000 (271 ) Put options (3) USD 3,215 (2,745 ) Total return swaps – equities EUR/GBP/HKD/RON/MXN/USD 65,758 (12,738 ) Total financial contracts payable, at fair value $ (25,864 ) (1) USD = US Dollar; EUR = Euro; GBP = British Pound; HKD = Hong Kong Dollar; KRW = Korean Won; MXN = Mexican Peso; RON = Romanian New Leu. (2) Includes options on the Japanese Yen and the Chinese Yuan, denominated in U.S. dollars. (3) Includes options on the Chinese Yuan, denominated in U.S. dollars. At December 31, 2014 , the fair values of financial contracts outstanding were as follows: Financial Contracts Listing (1) Notional amount of Fair value of net assets ($ in thousands) Financial contracts receivable Futures USD 13,204 $ 3,461 Put options (2) USD 299,907 22,349 Total return swaps – equities EUR/GBP/HKD/USD 43,355 18,898 Warrants and rights on listed equities EUR 8,054 2,463 Total financial contracts receivable, at fair value $ 47,171 Financial contracts payable Credit default swaps, purchased – corporate debt USD 221,198 $ (1,305 ) Credit default swaps, purchased – sovereign debt USD 251,467 (1,714 ) Forwards KRW 20,563 (512 ) Futures USD 33,625 (867 ) Total return swaps – equities EUR/GBP/HKD/INR/RON/USD 122,667 (40,194 ) Total financial contracts payable, at fair value $ (44,592 ) (1) USD = US Dollar; EUR = Euro; GBP = British Pound; HKD = Hong Kong Dollar; KRW = Korean Won; RON = Romanian New Leu; INR = Indian Rupee. (2) Includes options on the Japanese Yen and the Chinese Yuan, denominated in U.S. dollars. Options are derivative financial instruments that give the buyer, in exchange for a premium payment, the right, but not the obligation, to either purchase from (call option) or sell to (put option) the writer, a specified underlying security at a specified price on or before a specified date. The Company enters into option contracts to meet certain investment objectives. For exchange traded option contracts, the exchange acts as the counterparty to specific transactions and therefore bears the risk of delivery to and from counterparties of specific positions. During the three and nine months ended September 30, 2015 and 2014 , 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 2015 2014 2015 2014 ($ in thousands) ($ in thousands) Commodity swaps Net investment income (loss) $ (8,058 ) $ — $ (8,788 ) $ — Credit default swaps, purchased – corporate debt Net investment income (loss) 8 (11 ) (97 ) (157 ) Credit default swaps, purchased – sovereign debt Net investment income (loss) (16 ) (72 ) (77 ) (286 ) Forwards Net investment income (loss) 907 1,289 1,140 (1,442 ) Futures Net investment income (loss) 1,329 8,617 (899 ) 4,657 Interest rate options Net investment income (loss) — — — (26 ) Interest rate swaps Net investment income (loss) (247 ) — (489 ) — Options, warrants, and rights Net investment income (loss) 389 240 (9,099 ) (17,868 ) Total return swaps – equities Net investment income (loss) (13,231 ) (5,642 ) (9,088 ) 24,432 Weather derivative swap Other income (expense), net (552 ) — (1,712 ) — Total $ (19,471 ) $ 4,421 $ (29,109 ) $ 9,310 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, 2015 , the Company’s volume of derivative activities (based on notional amounts) was as follows: 2015 Three months ended September 30 Nine months ended September 30 Derivatives not designated as hedging instruments (notional amounts) Entered Exited Entered Exited ($ in thousands) ($ in thousands) Commodity swaps $ 27,364 $ 20,083 $ 103,358 $ 20,083 Forwards — 3,777 — 9,870 Futures 169,986 138,609 254,975 269,142 Interest rate swaps 2,581,000 7,213,000 9,139,000 7,213,000 Options, warrants and rights (1) 88,208 1,617,891 4,798,424 10,106,455 Total return swaps 25,809 105,287 46,899 162,278 Weather derivative swap — — 2,340 — Total $ 2,892,367 $ 9,098,647 $ 14,344,996 $ 17,780,828 (1) Exited amount excludes options which expired or were exercised during the period. 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 (notional amounts) 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. 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, 2015 , the gross and net amounts of derivative instruments and the cash collateral applicable to derivative instruments were as follows: September 30, 2015 (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 $ 14,872 $ — $ 14,872 $ (10,897 ) $ (885 ) $ 3,090 Financial contracts payable $ (25,864 ) $ — $ (25,864 ) $ 10,897 $ 12,489 $ (2,478 ) As of December 31, 2014 , the gross and net amounts of derivative instruments and the cash collateral applicable to derivative instruments were as follows: December 31, 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 $ 47,171 $ — $ 47,171 $ (24,265 ) $ (9,452 ) $ 13,454 Financial contracts payable $ (44,592 ) $ — $ (44,592 ) $ 24,265 $ 20,327 $ — |
DUE TO PRIME BROKERS
DUE TO PRIME BROKERS | 9 Months Ended |
Sep. 30, 2015 | |
Due to and from Broker-Dealers and Clearing Organizations [Abstract] | |
DUE TO PRIME BROKERS | DUE TO PRIME BROKERS As of September 30, 2015 , 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 9 ). 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, 2015 , the amounts due to prime brokers included $203.9 million ( December 31, 2014 : $135.0 million ) of cash borrowed under the term margin agreements to provide collateral for letters of credit facilities and $63.1 million ( December 31, 2014 : $76.1 million ) of borrowing relating to investing activities. 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, 2015 | |
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 and nine months ended September 30, 2015 , loss and loss adjustment expenses incurred of $97.4 million and $237.3 million , respectively, ( 2014 : $53.0 million and $177.0 million , respectively,) reported on the condensed consolidated statements of income are net of loss and loss expenses recovered and recoverable of $0.5 million and $1.3 million , respectively ( 2014 : $0.5 million and $1.6 million , respectively). 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, 2015 , the Company had losses receivable and loss reserves recoverable of $3.1 million ( December 31, 2014 : $11.5 million ) from unrated retrocessionaires and $0.2 million ( December 31, 2014 : nil ) from a retrocessionaire rated A- by A.M. Best. During February 2015, the Company reached a settlement to commute a retrocession contract with one of the unrated retrocessionaires, which commutation resulted in a decrease in the losses recoverable from unrated retrocessionaires. At September 30, 2015 and December 31, 2014 , $3.1 million and $2.8 million , respectively, of losses recoverable from unrated retrocessionaires were secured by cash collateral held by the Company. The Company regularly evaluates the financial condition of its retrocessionaires to assess the ability of the retrocessionaires to honor their respective obligations. At September 30, 2015 and December 31, 2014 , no provision for uncollectible losses recoverable was considered necessary. |
SHARE CAPITAL (Notes)
SHARE CAPITAL (Notes) | 9 Months Ended |
Sep. 30, 2015 | |
SHARE CAPITAL [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | SHARE CAPITAL As of September 30, 2015 , the Company has an effective Form S-3 registration statement, on file with the SEC for an aggregate principal amount of $200.0 million in securities. The Board has adopted a share repurchase plan. Under the share repurchase plan, the Board authorized the Company to purchase up to 2.0 million of its Class A ordinary shares from time to time. Class A ordinary shares or securities convertible into Class A ordinary shares, may be purchased in the open market, through privately negotiated transactions or Rule 10b5-1 stock trading plans. The timing of such repurchases and actual number of shares repurchased will depend on a variety of factors including price, market conditions and applicable regulatory and corporate requirements. The share repurchase plan, which expires on June 30, 2016 , does not require the Company to repurchase any specific number of shares and may be modified, suspended or terminated at any time without prior notice. During the nine months ended September 30, 2015 , 613,540 Class A ordinary shares were repurchased by the Company. As of September 30, 2015 , 1.4 million shares remained available under the share repurchase plan. Under the Companies Law of the Cayman Islands, the Company cannot hold treasury shares; therefore, all ordinary shares repurchased are canceled immediately upon repurchase. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION The Company has a stock incentive plan for directors, employees and consultants that is administered by the Compensation Committee of the Board of Directors. The Company's shares authorized for issuance pursuant to the stock incentive plan include 3,500,000 ( December 31, 2014 : 3,500,000 ) Class A ordinary shares. As of September 30, 2015 , 658,775 ( December 31, 2014 : 803,558 ) Class A ordinary shares remained available for future issuance under the Company's stock incentive plan. 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 applicable vesting period. For the nine months ended September 30, 2015 , 78,685 ( 2014 : 119,566 ) 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 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, 2015 , the Company issued an aggregate of 28,215 ( 2014 : 28,060 ) restricted Class A ordinary shares to non-employee directors 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, 2015 , 9,621 ( 2014 : 27,083 ) restricted shares were forfeited by employees who left the Company prior to the expiration of the applicable vesting periods. For the nine months ended September 30, 2015 , in accordance with U.S. GAAP, $0.1 million of stock compensation expense ( 2014 : $0.2 million ) relating to the forfeited restricted shares was reversed. The restricted share award activity during the nine months ended September 30, 2015 was as follows: Number of Weighted Balance at December 31, 2014 330,087 $ 27.90 Granted 106,900 31.56 Vested (119,703 ) 26.28 Forfeited (9,621 ) 30.49 Balance at September 30, 2015 307,663 $ 29.72 Employee and Director Stock Options For the nine months ended September 30, 2015 , 40,683 Class A ordinary share purchase options were granted to the Company's Chief Executive Officer, pursuant to his employment contract ( 2014 : 31,821 ). These options vest 25% on the date of the grant, and 25% each on the anniversary thereof in 2016, 2017 and 2018, and expire 10 years after the grant date. The grant date fair value of these options was $12.29 per share ( 2014 : $15.71 per share), based on the Black-Scholes option pricing model. The estimate of expected volatility for options granted during 2015 was based on the daily historical trading data of the Company's Class A ordinary shares from the date that these shares commenced trading on May 24, 2007 to August 5, 2015 . 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. 2015 2014 Risk free rate 2.15 % 2.47 % Estimated volatility 33 % 34 % Expected term (in years) 10 10 Dividend yield 0.0 % 0.0 % Forfeiture rate 0.0 % 0.0 % For the nine months ended September 30, 2015 , 250,000 ( 2014 : 232,500 ) stock options were exercised by directors and employees resulting in 158,925 (2014: 151,972 ) Class A ordinary shares issued, net of shares surrendered as a result of the cashless exercise of stock options. 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, 2015 was $4.8 million ( 2014 : $4.9 million ). Employee and director stock option activity during the nine months ended September 30, 2015 was as follows: Number of Weighted Weighted Balance at December 31, 2014 1,116,308 $ 17.58 $ 7.73 Granted 40,683 26.67 12.29 Exercised (250,000 ) 11.10 5.57 Forfeited — — — Expired — — — Balance at September 30, 2015 906,991 $ 19.78 $ 8.53 Employee Restricted Stock Units The Company issues RSUs to certain employees as part of the stock incentive plan. The grant date fair value of the RSUs is equal to the price of the Company’s Class A ordinary shares on the grant date. Compensation 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, 2015 , 6,821 ( 2014 : 9,668 ) 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 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, 2015 was as follows: Number of Weighted Balance at December 31, 2014 15,609 $ 29.72 Granted 6,821 32.21 Vested (260 ) 24.30 Forfeited — — Balance at September 30, 2015 22,170 $ 30.55 For the nine months ended September 30, 2015 and 2014 , the general and administrative expenses included stock compensation expense (net of forfeitures) of $3.2 million and $3.0 million , respectively, for the expensing of the fair value of stock options, restricted stocks and RSUs granted to employees and directors. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Investment Advisory Agreement Effective January 1, 2014, the Company and its reinsurance subsidiaries were party to a joint venture agreement with DME Advisors, LP ("DME Advisors") under which the Company, its reinsurance subsidiaries and DME Advisors LLC ("DME") are participants of a joint venture for the purpose of managing certain jointly held assets, as may be amended from time to time, (the "venture agreement"). In addition, the Company, its reinsurance subsidiaries and DME have entered into a separate investment advisory agreement with DME Advisors, as may be amended from time to time, (the "advisory agreement"). DME and DME Advisors are related to the Company and each is 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 investment 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, 2015 , no performance allocation was recorded due to a gross investment loss reported during the periods ( 2014 : $(13.2) million and $10.9 million , respectively). For the three months ended September 30, 2014, the negative performance allocation was a result of reversal of performance allocation due to gross investment loss reported in 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 (loss) for the three and nine months ended September 30, 2015 were management fees of $4.7 million and $15.1 million , respectively, ( 2014 : $5.3 million and $15.4 million , respectively). The management fees payable as of September 30, 2015 were fully paid. 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, 2015 , there were no indemnification payments payable or paid by the Company. David Einhorn also serves as the Chairman of the Board of Directors of Green Brick Partners, Inc ("GRBK"), a publicly traded company. During the year ended December 31, 2014, the Company, along with certain affiliates of DME Advisors, provided debt financing to GRBK and acquired equity shares of GRBK. During the three and nine months ended September 30, 2015 , the Company's net investment income (loss) included $0.0 million and $1.0 million , respectively, of interest income relating to the GRBK debt. During the third quarter of 2015, GRBK repaid the debt ( December 31, 2014 : $21.6 million ) in full along with all accrued interest and prepayment fees, and the Company purchased additional equity shares of GRBK. As of September 30, 2015 , $37.5 million ( December 31, 2014 : $18.4 million ) of GRBK listed equities were included on the balance sheet as "equity securities, trading, at fair value". The Company along with certain affiliates of DME Advisors, collectively own 49% of the issued and outstanding common shares of GRBK. Under applicable securities laws, DME Advisors may be limited at times in its ability to trade GRBK shares on behalf of the Company. Service Agreement The Company has entered into a service agreement with DME Advisors, pursuant to which DME Advisors provides certain investor relations services to the Company for compensation of five thousand dollars per month (plus expenses). The agreement is automatically renewed annually until terminated by either the Company or DME Advisors for any reason with 30 days prior written notice to the other party. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Letters of Credit At September 30, 2015 , the Company had the following letter of credit facilities, which automatically renew each year unless terminated by either party in accordance with the required notice period: Facility Termination Date Notice period required for termination ($ in thousands) Bank of America, N.A. $ 120,000 July 11, 2016 90 days prior to termination date Butterfield Bank (Cayman) Limited 100,000 June 30, 2016 90 days prior to termination date Citibank Europe plc 400,000 October 11, 2016 120 days prior to termination date JP Morgan Chase Bank N.A. 100,000 January 27, 2017 120 days prior to termination date $ 720,000 As of September 30, 2015 , an aggregate amount of $264.7 million ( December 31, 2014 : $273.7 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, 2015 , total equity securities, restricted cash, and cash and cash equivalents with a fair value in the aggregate of $294.1 million ( December 31, 2014 : $302.6 million ) were pledged as collateral 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, 2015 and December 31, 2014 . 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, 2015 . 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), which shall be 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, 2015 . The total rent expense related to leased office space for the three and nine months ended September 30, 2015 was $0.1 million and $0.4 million , respectively ( 2014 : $0.1 million and $0.4 million , respectively). Specialist Service Agreement The Company had 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 did not have any authority to bind the Company to any reinsurance contracts. Under the terms of the agreement, the Company had committed to quarterly payments to the specialist service provider. The agreement was terminated effective September 1, 2015, and the Company is obligated to make minimum payments for twelve months starting on September 1, 2015 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, 2015 . 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, 2015 , the Company had commitments to invest an additional $8.5 million ( December 31, 2014 : $8.9 million ) in private equity investments. Included in the schedule below are the minimum payment obligations relating to these investments as of September 30, 2015 . Schedule of Commitments and Contingencies The following is a schedule of future minimum payments required under the above commitments: 2015 2016 2017 2018 2019 Thereafter Total ($ in thousands) Operating lease obligations $ 135 $ 494 $ 466 $ 233 $ — $ — $ 1,328 Specialist service agreement 150 300 — — — — 450 Private equity and limited partnerships (1) 8,495 — — — — — 8,495 $ 8,780 $ 794 $ 466 $ 233 $ — $ — $ 10,273 (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 ending December 31, 2015 . 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, 2015 | |
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 2015 2014 2015 2014 ($ in thousands) ($ in thousands) Property Aviation $ 154 0.1 % $ — — % $ 557 0.2 % $ 290 0.1 % Commercial 2,701 2.0 1,953 2.0 12,404 3.5 9,183 3.7 Energy 188 0.1 — — 1,926 0.5 2,131 0.9 Motor physical damage 8,931 6.7 7,405 7.6 24,573 6.9 19,759 7.9 Personal 15,839 11.8 23,728 24.4 42,755 12.0 49,236 19.7 Total Property 27,813 20.7 33,086 34.0 82,215 23.1 80,599 32.3 Casualty General liability 8,768 6.5 4,260 4.4 17,472 4.9 7,176 2.9 Marine liability 2,046 1.5 20 — 7,468 2.1 3,867 1.6 Motor liability 50,708 37.7 41,177 42.4 138,933 38.9 108,631 43.5 Professional liability 19,517 14.5 4,378 4.5 47,321 13.2 4,786 1.9 Total Casualty 81,039 60.2 49,835 51.3 211,194 59.1 124,460 49.9 Specialty Financial 2,210 1.6 812 0.8 5,786 1.6 3,830 1.5 Health 18,383 13.7 13,113 13.5 50,523 14.1 40,512 16.2 Workers’ compensation 5,123 3.8 354 0.4 7,522 2.1 354 0.1 Total Specialty 25,716 19.1 14,279 14.7 63,831 17.8 44,696 17.8 $ 134,568 100.0 % $ 97,200 100.0 % $ 357,240 100.0 % $ 249,755 100.0 % Gross Premiums Written by Geographic Area of Risks Insured Three months ended September 30 Nine months ended September 30 2015 2014 2015 2014 ($ in thousands) ($ in thousands) U.S. and Caribbean $ 104,267 77.5 % $ 89,641 92.2 % $ 272,827 76.4 % $ 227,723 91.2 % Worldwide (1) 28,661 21.3 7,426 7.7 79,030 22.1 21,491 8.6 Europe 1,580 1.2 133 0.1 4,716 1.3 541 0.2 Asia 60 — — — 667 0.2 — — $ 134,568 100.0 % $ 97,200 100.0 % $ 357,240 100.0 % $ 249,755 100.0 % (1) "Worldwide" is comprised of contracts that reinsure risks in more than one geographic area and do not specifically exclude the U.S. |
SIGNIFICANT ACCOUNTING POLICI17
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Reclassifications | Reclassifications Certain prior period balances have been reclassified to conform to the current period presentation. Prior to January 1, 2015, non-investment related foreign exchange gains and losses were recorded under general and administrative expenses in the condensed consolidated statements of income. Effective from January 1, 2015, the presentation has been modified and any non-investment related foreign exchange gains or losses are now recorded under “Other income (expense), net” in the condensed consolidated statements of income. As a result, foreign exchange gain s of $2.7 million and $1.0 million that were previously reported in general and administrative expenses for the three and nine months ended September 30, 2014 , respectively, were reclassified as “Other income (expense), net” to conform to the current year 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 9 ). 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, 2015 and December 31, 2014 , 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. |
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. Interest income and realized gains or losses on sale of notes receivable are included under net investment income (loss) in the condensed consolidated statements of income. The Company regularly reviews all notes receivable individually for impairment and records valuation allowance provisions for uncollectible and non-performing notes. The Company places notes on non-accrual status when the recorded 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. |
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 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 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. The Company may from time to time enter into underwriting contracts such as industry loss warranty contracts ("ILW") that are treated as derivatives for U.S GAAP purposes. 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 each 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 may purchase and sell 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). The Company may purchase ILWs to manage its exposure to weather related events. An ILW is designated as a weather derivative swap and included in financial contracts receivable. The carrying amount of an ILW is the unamortized portion of the premium paid for an ILW. An estimate of fair value is not practicable since ILW contracts are generally not exchange traded, and the time and cost involved in creating a valuation model to estimate the fair value would be excessive relative to the size and duration of the ILW. |
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 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. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2015, the FASB issued Accounting Standards Update 2015-07, "Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share or Its Equivalent" ("ASU 2015-07"). The amendments apply to reporting entities that elect to measure the fair value of an investment using the net asset value ("NAV") per share (or its equivalent) as a practical expedient. The amendments remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share as a practical expedient. The amendments also remove the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share as a practical expedient. Rather, those disclosures are limited to investments for which the entity has elected to measure the fair value using that practical expedient. The amendments in ASU 2015-07 are effective for reporting periods beginning after December 15, 2015, with early adoption permitted. Entities are required to apply the amendments in this update retrospectively to all periods presented. As the Company measures certain investments in private equity funds using the NAV as a practicable expedient, upon adoption of ASU 2015-07, the fair value of these investments will be removed from the fair value hierarchy for all periods presented in the Company’s condensed consolidated financial statements. The Company will continue to disclose information on these investments for which fair value is measured at NAV as a practical expedient. In May 2015, the FASB issued ASU 2015-09, "Financial Services - Insurance (Topic 944): Disclosures about Short-Duration Contracts" ("ASU 2015-09"). ASU 2015-09 requires additional disclosures for short-duration contracts including incurred and paid claims development information, claims duration information, quantitative claims frequency information (unless impracticable), and an explanation of significant changes in methodologies and assumptions used to calculate the loss and loss adjustment expense reserves. ASU 2015-09 is effective for public entities for annual reporting periods beginning after December 15, 2015, and interim reporting periods within annual reporting periods beginning after December 15, 2016 with early adoption permitted. The Company is evaluating the impact of the disclosure requirements of ASU 2015-09 and is preparing to disclose the additional information in its consolidated financial statements for the fiscal year ending December 31, 2016 and thereafter. |
SIGNIFICANT ACCOUNTING POLICI18
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Weighted Average Number of Shares | Three months ended September 30 Nine months ended September 30 2015 2014 2015 2014 Weighted average shares outstanding - basic 36,710,216 36,984,650 36,636,464 37,214,809 Effect of dilutive service provider share-based awards — — — 11,383 Effect of dilutive employee and director share-based awards — — — 648,435 Weighted average shares outstanding - diluted 36,710,216 36,984,650 36,636,464 37,874,627 Anti-dilutive stock options outstanding 250,018 — 151,821 — Participating securities excluded from calculation of loss per share 307,663 334,090 307,663 — |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | ||
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, 2015 : Fair value measurements as of September 30, 2015 Description Quoted prices in Significant other Significant Total Assets: ($ in thousands) Debt instruments $ — $ 28,126 $ 531 $ 28,657 Listed equity securities 958,072 8,683 — 966,755 Commodities 88,143 — — 88,143 Private and unlisted equity securities — — 19,982 19,982 Financial contracts receivable 194 14,050 628 14,872 $ 1,046,409 $ 50,859 $ 21,141 $ 1,118,409 Liabilities: Listed equity securities, sold not yet purchased $ (721,349 ) $ — $ — $ (721,349 ) Debt instruments, sold not yet purchased — (78,756 ) — (78,756 ) Financial contracts payable (1,005 ) (24,859 ) — (25,864 ) $ (722,354 ) $ (103,615 ) $ — $ (825,969 ) The following table presents the Company’s investments, categorized by the level of the fair value hierarchy as of December 31, 2014 : Fair value measurements as of December 31, 2014 Description Quoted prices in Significant other Significant Total Assets: ($ in thousands) Debt instruments $ — $ 26,953 $ 22,259 $ 49,212 Listed equity securities 1,259,298 6,877 — 1,266,175 Commodities 96,872 — — 96,872 Private and unlisted equity securities — — 18,719 18,719 Financial contracts receivable 2,463 44,708 — 47,171 $ 1,358,633 $ 78,538 $ 40,978 $ 1,478,149 Liabilities: Listed equity securities, sold not yet purchased $ (834,228 ) $ — $ — $ (834,228 ) Debt instruments, sold not yet purchased — (256,503 ) — (256,503 ) Financial contracts payable — (44,592 ) — (44,592 ) $ (834,228 ) $ (301,095 ) $ — $ (1,135,323 ) | ||
Fair Value Measurements Using Significant Unobservable Inputs | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Nine months ended September 30, 2015 Assets Liabilities Debt instruments Private and unlisted equity securities Financial contracts receivable Listed equity securities Total Financial contracts payable ($ in thousands) Beginning balance $ 22,259 $ 18,719 $ — $ — $ 40,978 $ — Purchases — 4,471 2,340 — 6,811 — Sales (21,561 ) (3,239 ) — — (24,800 ) — Issuances — — — — — — Settlements — — — — — — Total realized and unrealized gains (losses) and amortization included in earnings, net (167 ) 31 (2,399 ) (692 ) (3,227 ) 314 Transfers into Level 3 — — 2,536 5,189 7,725 8,835 Transfers out of Level 3 — — (1,849 ) (4,497 ) (6,346 ) (9,149 ) Ending balance $ 531 $ 19,982 $ 628 $ — $ 21,141 $ — 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, 2015 : Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Three months ended September 30, 2015 Assets Liabilities Debt instruments Private and unlisted equity securities Financial contracts receivable Listed equity securities Total Financial contracts payable ($ in thousands) Beginning balance $ 22,181 $ 19,189 $ 3,716 $ 5,189 $ 50,275 $ 8,835 Purchases — 2,234 — — 2,234 — Sales (21,561 ) (1,367 ) — — (22,928 ) — Issuances — — — — — — Settlements — — — — — — Total realized and unrealized gains (losses) and amortization included in earnings, net (89 ) (74 ) (1,239 ) (692 ) (2,094 ) 314 Transfers into Level 3 — — — — — Transfers out of Level 3 — — (1,849 ) (4,497 ) (6,346 ) (9,149 ) Ending balance $ 531 $ 19,982 $ 628 $ — $ 21,141 $ — | 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 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 | |
Maturity Distribution for Debt Instruments | The maturity distribution for debt instruments held at September 30, 2015 and December 31, 2014 was as follows: September 30, 2015 December 31, 2014 Cost/ Fair Cost/ Fair ($ in thousands) Within one year $ — $ — $ — $ — From one to five years — — 21,922 21,923 From five to ten years 8,346 5,609 2,401 1,282 More than ten years 28,994 23,048 28,752 26,007 $ 37,340 $ 28,657 $ 53,075 $ 49,212 | ||
Other Investments | At September 30, 2015 , the following securities were included in other investments: Cost Unrealized Unrealized Fair ($ in thousands) Commodities $ 89,597 $ — $ (1,454 ) $ 88,143 Private and unlisted equity securities 18,863 3,360 (2,241 ) 19,982 $ 108,460 $ 3,360 $ (3,695 ) $ 108,125 At December 31, 2014 , the following securities were included in other investments: Cost Unrealized Unrealized Fair ($ in thousands) Commodities $ 95,815 $ 1,057 $ — $ 96,872 Private and unlisted equity securities 17,238 3,451 (1,970 ) 18,719 $ 113,053 $ 4,508 $ (1,970 ) $ 115,591 | ||
Investments in Securities Sold, Not Yet Purchased | Investments in Securities Sold, Not Yet Purchased Securities sold, not yet purchased are securities that the Company has sold, but does not own, in anticipation of a decline in the market value of the security. The Company’s risk is that the value of the security will increase rather than decline. Consequently, the settlement amount of the liability for securities sold, not yet purchased may exceed the amount recorded in the consolidated balance sheet as the Company is obligated to purchase the securities sold, not yet purchased in the market at prevailing prices to settle its obligations. To establish a position in security sold, not yet purchased, the Company needs to borrow the security for delivery to the buyer. On each day the transaction is open, the liability for the obligation to replace the borrowed security is marked-to-market and an unrealized gain or loss is recorded. At the time the transaction is closed, the Company realizes a gain or loss equal to the difference between the price at which the security was sold and the cost of replacing the borrowed security. While the transaction is open, the Company will also incur an expense for any dividends or interest which will be paid to the lender of the securities. At September 30, 2015 , the following securities were included in investments in securities sold, not yet purchased: Proceeds Unrealized gains Unrealized losses Fair value ($ in thousands) Equities – listed $ (744,239 ) $ 120,519 $ (67,006 ) $ (690,726 ) Exchange traded funds (28,220 ) — (2,403 ) (30,623 ) Sovereign debt – Non U.S. (77,443 ) — (1,313 ) (78,756 ) $ (849,902 ) $ 120,519 $ (70,722 ) $ (800,105 ) At December 31, 2014 , the following securities were included in investments in securities sold, not yet purchased: Proceeds Unrealized gains Unrealized losses Fair value ($ in thousands) Corporate debt – U.S. $ (7,066 ) $ 1,007 $ (5 ) $ (6,064 ) Equities – listed (813,365 ) 91,690 (101,715 ) (823,390 ) Exchange traded funds (9,180 ) — (1,658 ) (10,838 ) Sovereign debt – Non U.S. (246,589 ) 6,635 (10,485 ) (250,439 ) $ (1,076,200 ) $ 99,332 $ (113,863 ) $ (1,090,731 ) | ||
Fair values of Financial Contracts Outstanding | [1] | At September 30, 2015 , the fair values of financial contracts outstanding were as follows: Financial Contracts Listing (1) Notional amount of Fair value of net assets ($ in thousands) Financial contracts receivable Call options USD 4,227 $ 483 Commodity Swaps USD 24,110 1,977 Put options (2) USD 202,020 7,553 Total return swaps – equities EUR/GBP/HKD/USD 58,336 4,036 Warrants and rights on listed equities EUR 611 195 Weather derivative swap USD 12,000 628 Total financial contracts receivable, at fair value $ 14,872 Financial contracts payable Call options 285 $ (94 ) Commodity Swaps USD 46,329 (8,616 ) Credit default swaps, purchased – corporate debt USD 79,937 (120 ) Credit default swaps, purchased – sovereign debt USD 92,259 (194 ) Forwards KRW 6,311 (81 ) Futures USD 36,697 (1,005 ) Interest Rate Swaps USD 1,926,000 (271 ) Put options (3) USD 3,215 (2,745 ) Total return swaps – equities EUR/GBP/HKD/RON/MXN/USD 65,758 (12,738 ) Total financial contracts payable, at fair value $ (25,864 ) (1) USD = US Dollar; EUR = Euro; GBP = British Pound; HKD = Hong Kong Dollar; KRW = Korean Won; MXN = Mexican Peso; RON = Romanian New Leu. (2) Includes options on the Japanese Yen and the Chinese Yuan, denominated in U.S. dollars. (3) Includes options on the Chinese Yuan, denominated in U.S. dollars. At December 31, 2014 , the fair values of financial contracts outstanding were as follows: Financial Contracts Listing (1) Notional amount of Fair value of net assets ($ in thousands) Financial contracts receivable Futures USD 13,204 $ 3,461 Put options (2) USD 299,907 22,349 Total return swaps – equities EUR/GBP/HKD/USD 43,355 18,898 Warrants and rights on listed equities EUR 8,054 2,463 Total financial contracts receivable, at fair value $ 47,171 Financial contracts payable Credit default swaps, purchased – corporate debt USD 221,198 $ (1,305 ) Credit default swaps, purchased – sovereign debt USD 251,467 (1,714 ) Forwards KRW 20,563 (512 ) Futures USD 33,625 (867 ) Total return swaps – equities EUR/GBP/HKD/INR/RON/USD 122,667 (40,194 ) Total financial contracts payable, at fair value $ (44,592 ) (1) USD = US Dollar; EUR = Euro; GBP = British Pound; HKD = Hong Kong Dollar; KRW = Korean Won; RON = Romanian New Leu; INR = Indian Rupee. (2) Includes options on the Japanese Yen and the Chinese Yuan, denominated in U.S. dollars. | |
Gain (Loss) on derivatives recognized in income | During the three and nine months ended September 30, 2015 and 2014 , 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 2015 2014 2015 2014 ($ in thousands) ($ in thousands) Commodity swaps Net investment income (loss) $ (8,058 ) $ — $ (8,788 ) $ — Credit default swaps, purchased – corporate debt Net investment income (loss) 8 (11 ) (97 ) (157 ) Credit default swaps, purchased – sovereign debt Net investment income (loss) (16 ) (72 ) (77 ) (286 ) Forwards Net investment income (loss) 907 1,289 1,140 (1,442 ) Futures Net investment income (loss) 1,329 8,617 (899 ) 4,657 Interest rate options Net investment income (loss) — — — (26 ) Interest rate swaps Net investment income (loss) (247 ) — (489 ) — Options, warrants, and rights Net investment income (loss) 389 240 (9,099 ) (17,868 ) Total return swaps – equities Net investment income (loss) (13,231 ) (5,642 ) (9,088 ) 24,432 Weather derivative swap Other income (expense), net (552 ) — (1,712 ) — Total $ (19,471 ) $ 4,421 $ (29,109 ) $ 9,310 | ||
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | [1] | For the three and nine months ended September 30, 2015 , the Company’s volume of derivative activities (based on notional amounts) was as follows: 2015 Three months ended September 30 Nine months ended September 30 Derivatives not designated as hedging instruments (notional amounts) Entered Exited Entered Exited ($ in thousands) ($ in thousands) Commodity swaps $ 27,364 $ 20,083 $ 103,358 $ 20,083 Forwards — 3,777 — 9,870 Futures 169,986 138,609 254,975 269,142 Interest rate swaps 2,581,000 7,213,000 9,139,000 7,213,000 Options, warrants and rights (1) 88,208 1,617,891 4,798,424 10,106,455 Total return swaps 25,809 105,287 46,899 162,278 Weather derivative swap — — 2,340 — Total $ 2,892,367 $ 9,098,647 $ 14,344,996 $ 17,780,828 (1) Exited amount excludes options which expired or were exercised during the period. 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 (notional amounts) 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. | |
Offsetting assets and liabilities | As of September 30, 2015 , the gross and net amounts of derivative instruments and the cash collateral applicable to derivative instruments were as follows: September 30, 2015 (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 $ 14,872 $ — $ 14,872 $ (10,897 ) $ (885 ) $ 3,090 Financial contracts payable $ (25,864 ) $ — $ (25,864 ) $ 10,897 $ 12,489 $ (2,478 ) As of December 31, 2014 , the gross and net amounts of derivative instruments and the cash collateral applicable to derivative instruments were as follows: December 31, 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 $ 47,171 $ — $ 47,171 $ (24,265 ) $ (9,452 ) $ 13,454 Financial contracts payable $ (44,592 ) $ — $ (44,592 ) $ 24,265 $ 20,327 $ — | ||
Debt instruments | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Trading securities, Debt and Equities | Debt instruments, trading At September 30, 2015 , the following investments were included in debt instruments: Cost/ Unrealized Unrealized Fair ($ in thousands) Corporate debt – U.S. $ 17,543 $ — $ (6,112 ) $ 11,431 Corporate debt – Non U.S. 2,109 — (1,817 ) 292 Sovereign debt – Non U.S. 17,688 757 (1,511 ) 16,934 Total debt instruments $ 37,340 $ 757 $ (9,440 ) $ 28,657 At December 31, 2014 , the following investments were included in debt instruments: Cost/ Unrealized Unrealized Fair ($ in thousands) Corporate debt – U.S. $ 23,677 $ 5 $ (1,423 ) $ 22,259 Corporate debt – Non U.S. 5,870 49 (1,405 ) 4,514 Municipal debt – U.S. 1,759 — (6 ) 1,753 Sovereign debt – Non U.S. 21,769 — (1,083 ) 20,686 Total debt instruments $ 53,075 $ 54 $ (3,917 ) $ 49,212 | ||
Total equity securities | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Trading securities, Debt and Equities | Equity securities, trading At September 30, 2015 , the following long positions were included in equity securities, trading: Cost Unrealized Unrealized Fair ($ in thousands) Equities – listed $ 1,080,522 $ 58,289 $ (187,420 ) $ 951,391 Exchange traded funds 31,571 — (16,207 ) 15,364 Total equity securities $ 1,112,093 $ 58,289 $ (203,627 ) $ 966,755 At December 31, 2014 , the following long positions were included in equity securities, trading: Cost Unrealized Unrealized Fair ($ in thousands) Equities – listed $ 1,079,955 $ 247,109 $ (80,637 ) $ 1,246,427 Exchange traded funds 42,126 — (22,378 ) 19,748 Total equity securities $ 1,122,081 $ 247,109 $ (103,015 ) $ 1,266,175 | ||
[1] | USD = US Dollar; EUR = Euro; GBP = British Pound; HKD = Hong Kong Dollar; KRW = Korean Won; RON = Romanian New Leu; INR = Indian Rupee. |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The Company uses the Black-Scholes option pricing model to determine the valuation of its options and has applied the assumptions set forth in the following table. 2015 2014 Risk free rate 2.15 % 2.47 % Estimated volatility 33 % 34 % Expected term (in years) 10 10 Dividend yield 0.0 % 0.0 % Forfeiture rate 0.0 % 0.0 % |
Schedule of Share-based Compensation, Stock Options, Activity | Employee and director stock option activity during the nine months ended September 30, 2015 was as follows: Number of Weighted Weighted Balance at December 31, 2014 1,116,308 $ 17.58 $ 7.73 Granted 40,683 26.67 12.29 Exercised (250,000 ) 11.10 5.57 Forfeited — — — Expired — — — Balance at September 30, 2015 906,991 $ 19.78 $ 8.53 |
Restricted stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The restricted share award activity during the nine months ended September 30, 2015 was as follows: Number of Weighted Balance at December 31, 2014 330,087 $ 27.90 Granted 106,900 31.56 Vested (119,703 ) 26.28 Forfeited (9,621 ) 30.49 Balance at September 30, 2015 307,663 $ 29.72 |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | Employee RSU activity during the nine months ended September 30, 2015 was as follows: Number of Weighted Balance at December 31, 2014 15,609 $ 29.72 Granted 6,821 32.21 Vested (260 ) 24.30 Forfeited — — Balance at September 30, 2015 22,170 $ 30.55 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Letters of Credit Facilities | At September 30, 2015 , 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. $ 120,000 July 11, 2016 90 days prior to termination date Butterfield Bank (Cayman) Limited 100,000 June 30, 2016 90 days prior to termination date Citibank Europe plc 400,000 October 11, 2016 120 days prior to termination date JP Morgan Chase Bank N.A. 100,000 January 27, 2017 120 days prior to termination date $ 720,000 |
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: 2015 2016 2017 2018 2019 Thereafter Total ($ in thousands) Operating lease obligations $ 135 $ 494 $ 466 $ 233 $ — $ — $ 1,328 Specialist service agreement 150 300 — — — — 450 Private equity and limited partnerships (1) 8,495 — — — — — 8,495 $ 8,780 $ 794 $ 466 $ 233 $ — $ — $ 10,273 (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 ending December 31, 2015 . |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 2015 2014 2015 2014 ($ in thousands) ($ in thousands) Property Aviation $ 154 0.1 % $ — — % $ 557 0.2 % $ 290 0.1 % Commercial 2,701 2.0 1,953 2.0 12,404 3.5 9,183 3.7 Energy 188 0.1 — — 1,926 0.5 2,131 0.9 Motor physical damage 8,931 6.7 7,405 7.6 24,573 6.9 19,759 7.9 Personal 15,839 11.8 23,728 24.4 42,755 12.0 49,236 19.7 Total Property 27,813 20.7 33,086 34.0 82,215 23.1 80,599 32.3 Casualty General liability 8,768 6.5 4,260 4.4 17,472 4.9 7,176 2.9 Marine liability 2,046 1.5 20 — 7,468 2.1 3,867 1.6 Motor liability 50,708 37.7 41,177 42.4 138,933 38.9 108,631 43.5 Professional liability 19,517 14.5 4,378 4.5 47,321 13.2 4,786 1.9 Total Casualty 81,039 60.2 49,835 51.3 211,194 59.1 124,460 49.9 Specialty Financial 2,210 1.6 812 0.8 5,786 1.6 3,830 1.5 Health 18,383 13.7 13,113 13.5 50,523 14.1 40,512 16.2 Workers’ compensation 5,123 3.8 354 0.4 7,522 2.1 354 0.1 Total Specialty 25,716 19.1 14,279 14.7 63,831 17.8 44,696 17.8 $ 134,568 100.0 % $ 97,200 100.0 % $ 357,240 100.0 % $ 249,755 100.0 % |
Gross Premiums Written by Geographic Area of Risks Insured | Gross Premiums Written by Geographic Area of Risks Insured Three months ended September 30 Nine months ended September 30 2015 2014 2015 2014 ($ in thousands) ($ in thousands) U.S. and Caribbean $ 104,267 77.5 % $ 89,641 92.2 % $ 272,827 76.4 % $ 227,723 91.2 % Worldwide (1) 28,661 21.3 7,426 7.7 79,030 22.1 21,491 8.6 Europe 1,580 1.2 133 0.1 4,716 1.3 541 0.2 Asia 60 — — — 667 0.2 — — $ 134,568 100.0 % $ 97,200 100.0 % $ 357,240 100.0 % $ 249,755 100.0 % (1) "Worldwide" is comprised of contracts that reinsure risks in more than one geographic area and do not specifically exclude the U.S. |
ORGANIZATION AND BASIS OF PRE23
ORGANIZATION AND BASIS OF PRESENTATION (Details) | May. 30, 2007$ / sharesshares |
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 | $ / shares | $ 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 | $ / shares | $ 19 |
SIGNIFICANT ACCOUNTING POLICI24
SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Accounting Policies [Line Items] | |||||
Prior Period Reclassification Adjustment | $ (2,700,000) | $ (1,000,000) | |||
Premium deficiency loss | $ 0 | $ 0 | $ 0 | ||
Profit commission reserves | 15,300,000 | 15,300,000 | 11,000,000 | ||
Profit commission expense | 4,200,000 | $ 400,000 | 5,800,000 | $ 1,800,000 | |
Notes receivable balance related to note placed on non-accrual status | 23,900,000 | 23,900,000 | 0 | ||
Interest Receivable, Current | $ 0 | $ 0 | $ 0 |
SIGNIFICANT ACCOUNTING POLICI25
SIGNIFICANT ACCOUNTING POLICIES Earnings Per Share Reconciliation (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Weighted average shares outstanding - basic | 36,710,216 | 36,984,650 | 36,636,464 | 37,214,809 |
Effect of dilutive service provider share-based awards | 0 | 0 | 0 | 11,383 |
Effect of dilutive employee and director share-based awards | 0 | 0 | 0 | 648,435 |
Weighted average shares outstanding - diluted | 36,710,216 | 36,984,650 | 36,636,464 | 37,874,627 |
Stock Options | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Anti-dilutive stock options outstanding | 250,018 | 0 | 151,821 | 0 |
Restricted stock | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Anti-dilutive stock options outstanding | 307,663 | 334,090 | 307,663 | 0 |
SIGNIFICANT ACCOUNTING POLICI26
SIGNIFICANT ACCOUNTING POLICIES Income taxes (Details) | 9 Months Ended |
Sep. 30, 2015 | |
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 ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets: | $ 1,118,409 | $ 1,478,149 |
Debt instruments | 28,657 | 49,212 |
Listed equity securities | 966,755 | 1,266,175 |
Commodities | 88,143 | 96,872 |
Private and unlisted equity securities | 19,982 | 18,719 |
Financial contracts receivable | 14,872 | 47,171 |
Liabilities: | (825,969) | (1,135,323) |
Listed equity securities, sold not yet purchased | (721,349) | (834,228) |
Debt instruments, sold not yet purchased | (78,756) | (256,503) |
Financial contracts payable | (25,864) | (44,592) |
Quoted prices in active markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets: | 1,046,409 | 1,358,633 |
Debt instruments | 0 | 0 |
Listed equity securities | 958,072 | 1,259,298 |
Commodities | 88,143 | 96,872 |
Private and unlisted equity securities | 0 | 0 |
Financial contracts receivable | 194 | 2,463 |
Liabilities: | (722,354) | (834,228) |
Listed equity securities, sold not yet purchased | (721,349) | (834,228) |
Debt instruments, sold not yet purchased | 0 | 0 |
Financial contracts payable | (1,005) | 0 |
Significant other observable inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets: | 50,859 | 78,538 |
Debt instruments | 28,126 | 26,953 |
Listed equity securities | 8,683 | 6,877 |
Commodities | 0 | 0 |
Private and unlisted equity securities | 0 | 0 |
Financial contracts receivable | 14,050 | 44,708 |
Liabilities: | (103,615) | (301,095) |
Listed equity securities, sold not yet purchased | 0 | 0 |
Debt instruments, sold not yet purchased | (78,756) | (256,503) |
Financial contracts payable | (24,859) | (44,592) |
Significant unobservable inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets: | 21,141 | 40,978 |
Debt instruments | 531 | 22,259 |
Listed equity securities | 0 | 0 |
Commodities | 0 | 0 |
Private and unlisted equity securities | 19,982 | 18,719 |
Financial contracts receivable | 628 | 0 |
Liabilities: | 0 | 0 |
Listed equity securities, sold not yet purchased | 0 | 0 |
Debt instruments, sold not yet purchased | 0 | 0 |
Financial contracts payable | $ 0 | $ 0 |
FINANCIAL INSTRUMENTS Fair Valu
FINANCIAL INSTRUMENTS Fair Value Hierarchy- Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Transfers out of Level 3 | $ 6,346,000 | $ 4,044,000 | $ 6,346,000 | $ 4,044,000 | |
Transfers from Level 2 to Level 1 due to lock-up period restriction expiration | 0 | 10,000,000 | 0 | 10,000,000 | |
Total realized and unrealized gains (losses) and amortization included in earnings, net | (2,094,000) | 3,197,000 | (3,227,000) | 7,765,000 | |
Transfers into Level 3 | 0 | 0 | 7,725,000 | 0 | |
Quoted prices in active markets (Level 1) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Transfers out of Level 3 | 0 | 0 | |||
Significant other observable inputs (Level 2) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Transfers out of Level 3 | 0 | 1,800,000 | 0 | ||
Significant unobservable inputs (Level 3) | Private and unlisted equity securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value of investments in private equity funds | 12,000,000 | 12,000,000 | $ 12,300,000 | ||
Net investment income (loss) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total realized and unrealized gains (losses) and amortization included in earnings, net | 200,000 | 0 | 400,000 | 300,000 | |
Change in unrealized gains | (300,000) | 2,400,000 | (500,000) | 6,700,000 | |
Other income (expense), net | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Amortization Expense Included in Earnings | (600,000) | 0 | 1,700,000 | 0 | |
Equity Securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Transfers out of Level 3 | 4,497,000 | 4,497,000 | |||
Total realized and unrealized gains (losses) and amortization included in earnings, net | (692,000) | (692,000) | |||
Transfers into Level 3 | 0 | 5,189,000 | |||
Equity Securities [Member] | Quoted prices in active markets (Level 1) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Transfers out of Level 3 | 4,500,000 | 4,500,000 | |||
Transfers into Level 3 | 0 | 5,200,000 | |||
Equity Securities [Member] | Significant other observable inputs (Level 2) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Transfers out of Level 3 | $ 4,000,000 | $ 4,000,000 | |||
Financial contracts receivable | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Transfers out of Level 3 | 1,849,000 | 1,849,000 | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Amortization Expense Included in Earnings | 2,399,000 | ||||
Total realized and unrealized gains (losses) and amortization included in earnings, net | (1,239,000) | ||||
Transfers into Level 3 | 0 | 2,536,000 | |||
Financial contracts receivable | Significant other observable inputs (Level 2) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Transfers out of Level 3 | 1,800,000 | ||||
Transfers into Level 3 | $ 0 | 2,500,000 | |||
Financial contracts payable | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Transfers into Level 3 | 8,835,000 | ||||
Financial contracts payable | Significant other observable inputs (Level 2) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Transfers into Level 3 | $ 0 | $ 8,800,000 |
FINANCIAL INSTRUMENTS Level 3 r
FINANCIAL INSTRUMENTS Level 3 reconciliation (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | $ 50,275,000 | $ 51,428,000 | $ 40,978,000 | $ 46,850,000 |
Purchases | 2,234,000 | 961,000 | 6,811,000 | 3,032,000 |
Sales | (22,928,000) | (10,000) | (24,800,000) | (2,071,000) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Total realized and unrealized gains (losses) and amortization included in earnings, net | (2,094,000) | 3,197,000 | (3,227,000) | 7,765,000 |
Transfers into Level 3 | 0 | 0 | 7,725,000 | 0 |
Transfers out of Level 3 | (6,346,000) | (4,044,000) | (6,346,000) | (4,044,000) |
Ending balance | 21,141,000 | 51,532,000 | 21,141,000 | 51,532,000 |
Debt instruments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 22,181,000 | 601,000 | 22,259,000 | 527,000 |
Purchases | 0 | 0 | 0 | 0 |
Sales | (21,561,000) | 0 | (21,561,000) | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Total realized and unrealized gains (losses) and amortization included in earnings, net | (89,000) | 21,000 | (167,000) | 95,000 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Ending balance | 531,000 | 622,000 | 531,000 | 622,000 |
Private and unlisted equity securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 19,189,000 | 50,827,000 | 18,719,000 | 46,323,000 |
Purchases | 2,234,000 | 961,000 | 4,471,000 | 3,032,000 |
Sales | (1,367,000) | (10,000) | (3,239,000) | (2,071,000) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Total realized and unrealized gains (losses) and amortization included in earnings, net | (74,000) | 3,176,000 | 31,000 | 7,670,000 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | (4,044,000) | 0 | (4,044,000) |
Ending balance | 19,982,000 | 50,910,000 | 19,982,000 | 50,910,000 |
Financial contracts receivable | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 3,716,000 | 0 | ||
Purchases | 0 | 2,340,000 | ||
Sales | 0 | 0 | ||
Issuances | 0 | 0 | ||
Settlements | 0 | 0 | ||
Total realized and unrealized gains (losses) and amortization included in earnings, net | (1,239,000) | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Amortization Expense Included in Earnings | 2,399,000 | |||
Transfers into Level 3 | 0 | 2,536,000 | ||
Transfers out of Level 3 | (1,849,000) | (1,849,000) | ||
Ending balance | 628,000 | 628,000 | ||
Total equity securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 5,189,000 | 0 | ||
Purchases | 0 | 0 | ||
Sales | 0 | 0 | ||
Issuances | 0 | 0 | ||
Settlements | 0 | 0 | ||
Total realized and unrealized gains (losses) and amortization included in earnings, net | (692,000) | (692,000) | ||
Transfers into Level 3 | 0 | 5,189,000 | ||
Transfers out of Level 3 | (4,497,000) | (4,497,000) | ||
Ending balance | 0 | 0 | ||
Financial contracts payable | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 8,835,000 | 0 | ||
Purchases | 0 | 0 | ||
Sales | 0 | 0 | ||
Issuances | 0 | 0 | ||
Settlements | 0 | 0 | ||
Total realized and unrealized gains (losses) and amortization included in earnings, net | $ 314,000 | 314,000 | ||
Transfers into Level 3 | 8,835,000 | |||
Transfers out of Level 3 | $ (9,149,000) | (9,149,000) | ||
Ending balance | 0 | 0 | ||
Net investment income (loss) | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Total realized and unrealized gains (losses) and amortization included in earnings, net | 200,000 | 0 | 400,000 | 300,000 |
Quoted prices in active markets (Level 1) | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Transfers out of Level 3 | 0 | 0 | ||
Quoted prices in active markets (Level 1) | Total equity securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Transfers into Level 3 | 0 | 5,200,000 | ||
Transfers out of Level 3 | (4,500,000) | (4,500,000) | ||
Significant other observable inputs (Level 2) | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Transfers out of Level 3 | 0 | (1,800,000) | 0 | |
Significant other observable inputs (Level 2) | Financial contracts receivable | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Transfers into Level 3 | 0 | 2,500,000 | ||
Transfers out of Level 3 | (1,800,000) | |||
Significant other observable inputs (Level 2) | Total equity securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Transfers out of Level 3 | $ (4,000,000) | $ (4,000,000) | ||
Significant other observable inputs (Level 2) | Financial contracts payable | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Transfers into Level 3 | $ 0 | 8,800,000 | ||
Transfers out of Level 3 | $ (9,100,000) |
FINANCIAL INSTRUMENTS Schedul30
FINANCIAL INSTRUMENTS Schedule of Investments Included in Debt Instruments (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost/ amortized cost | $ 37,340 | $ 53,075 |
Debt instruments | 28,657 | 49,212 |
Corporate debt – U.S. | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost/ amortized cost | 17,543 | 23,677 |
Unrealized gains | 0 | 5 |
Unrealized losses | (6,112) | (1,423) |
Debt instruments | 11,431 | 22,259 |
Corporate debt – Non U.S. | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost/ amortized cost | 2,109 | 5,870 |
Unrealized gains | 0 | 49 |
Unrealized losses | (1,817) | (1,405) |
Debt instruments | 292 | 4,514 |
Municipal debt – U.S. | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost/ amortized cost | 1,759 | |
Unrealized gains | 0 | |
Unrealized losses | (6) | |
Debt instruments | 1,753 | |
Sovereign debt – Non U.S. | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost/ amortized cost | 17,688 | 21,769 |
Unrealized gains | 757 | 0 |
Unrealized losses | (1,511) | (1,083) |
Debt instruments | 16,934 | 20,686 |
Total debt instruments | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost/ amortized cost | 37,340 | 53,075 |
Unrealized gains | 757 | 54 |
Unrealized losses | $ (9,440) | $ (3,917) |
FINANCIAL INSTRUMENTS Schedul31
FINANCIAL INSTRUMENTS Schedule of Maturity of Debt Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
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 | 21,922 |
Debt instruments, trading, from one to five years, fair value | 0 | 21,923 |
Debt instruments, trading, from five to ten years, cost | 8,346 | 2,401 |
Debt instruments, trading, from five to ten years, fair value | 5,609 | 1,282 |
Debt instruments, trading, more than ten years, cost | 28,994 | 28,752 |
Debt instruments, trading, more than ten years, fair value | 23,048 | 26,007 |
Cost/ amortized cost | 37,340 | 53,075 |
Debt instruments | $ 28,657 | $ 49,212 |
FINANCIAL INSTRUMENTS Schedul32
FINANCIAL INSTRUMENTS Schedule of Investments in Equity Securities Trading (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost/ amortized cost | $ 37,340 | $ 53,075 |
Equity securities, trading, at fair value | 966,755 | 1,266,175 |
Equities – listed | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost/ amortized cost | 1,080,522 | 1,079,955 |
Unrealized gains | 58,289 | 247,109 |
Unrealized losses | (187,420) | (80,637) |
Equity securities, trading, at fair value | 951,391 | 1,246,427 |
Exchange traded funds | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost/ amortized cost | 31,571 | 42,126 |
Unrealized gains | 0 | 0 |
Unrealized losses | (16,207) | (22,378) |
Equity securities, trading, at fair value | 15,364 | 19,748 |
Total equity securities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost/ amortized cost | 1,112,093 | 1,122,081 |
Unrealized gains | 58,289 | 247,109 |
Unrealized losses | $ (203,627) | $ (103,015) |
FINANCIAL INSTRUMENTS Schedul33
FINANCIAL INSTRUMENTS Schedule of Other Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost | $ 108,460 | $ 113,053 |
Unrealized gains | 3,360 | 4,508 |
Unrealized losses | (3,695) | (1,970) |
Fair value | 108,125 | 115,591 |
Commodities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost | 89,597 | 95,815 |
Unrealized gains | 0 | 1,057 |
Unrealized losses | (1,454) | 0 |
Fair value | 88,143 | 96,872 |
Private and unlisted equity securities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost | 18,863 | 17,238 |
Unrealized gains | 3,360 | 3,451 |
Unrealized losses | (2,241) | (1,970) |
Fair value | $ 19,982 | $ 18,719 |
FINANCIAL INSTRUMENTS NAV Instr
FINANCIAL INSTRUMENTS NAV Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Percentage of funds that have investment restrictions | 100.00% | |
Private and unlisted equity securities | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Unfunded commitments relating to private equity funds | $ 8.5 | $ 8.9 |
Significant unobservable inputs (Level 3) | Private and unlisted equity securities | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair value of investments in private equity funds | $ 12 | $ 12.3 |
FINANCIAL INSTRUMENTS Investmen
FINANCIAL INSTRUMENTS Investments in Securities Sold, Not Yet Purchased (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Corporate debt – U.S. | ||
Investments Sold, Not yet Purchased [Line Items] | ||
Unrealized gains | $ 0 | $ 5 |
Unrealized losses | (6,112) | (1,423) |
Total equity securities | ||
Investments Sold, Not yet Purchased [Line Items] | ||
Unrealized gains | 58,289 | 247,109 |
Unrealized losses | (203,627) | (103,015) |
Exchange traded funds | ||
Investments Sold, Not yet Purchased [Line Items] | ||
Unrealized gains | 0 | 0 |
Unrealized losses | (16,207) | (22,378) |
Sovereign debt – Non U.S. | ||
Investments Sold, Not yet Purchased [Line Items] | ||
Unrealized gains | 757 | 0 |
Unrealized losses | (1,511) | (1,083) |
Securities Sold, Not yet Purchased | ||
Investments Sold, Not yet Purchased [Line Items] | ||
Proceeds | (849,902) | (1,076,200) |
Unrealized gains | 120,519 | 99,332 |
Unrealized losses | (70,722) | (113,863) |
Fair value | (800,105) | (1,090,731) |
Securities Sold, Not yet Purchased | Corporate debt – U.S. | ||
Investments Sold, Not yet Purchased [Line Items] | ||
Proceeds | (7,066) | |
Unrealized gains | 1,007 | |
Unrealized losses | (5) | |
Fair value | (6,064) | |
Securities Sold, Not yet Purchased | Total equity securities | ||
Investments Sold, Not yet Purchased [Line Items] | ||
Proceeds | (744,239) | (813,365) |
Unrealized gains | 120,519 | 91,690 |
Unrealized losses | (67,006) | (101,715) |
Fair value | (690,726) | (823,390) |
Securities Sold, Not yet Purchased | Exchange traded funds | ||
Investments Sold, Not yet Purchased [Line Items] | ||
Proceeds | (28,220) | (9,180) |
Unrealized gains | 0 | 0 |
Unrealized losses | (2,403) | (1,658) |
Fair value | (30,623) | (10,838) |
Securities Sold, Not yet Purchased | Sovereign debt – Non U.S. | ||
Investments Sold, Not yet Purchased [Line Items] | ||
Proceeds | (77,443) | (246,589) |
Unrealized gains | 0 | 6,635 |
Unrealized losses | (1,313) | (10,485) |
Fair value | $ (78,756) | $ (250,439) |
FINANCIAL INSTRUMENTS Schedul36
FINANCIAL INSTRUMENTS Schedule of Fair Value of Financial Contracts Outstanding (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | |||
Financial contracts receivable | $ 14,872 | $ 47,171 | |
Financial contracts payable | (25,864) | (44,592) | |
Financial contracts receivable | |||
Derivative [Line Items] | |||
Financial contracts receivable | 14,872 | 47,171 | |
Financial contracts payable | |||
Derivative [Line Items] | |||
Financial contracts payable | (25,864) | (44,592) | |
Call options | Financial contracts receivable | |||
Derivative [Line Items] | |||
Financial contracts receivable, Notional amount of underlying instruments | 4,227 | ||
Financial contracts receivable | 483 | ||
Call options | Financial contracts payable | |||
Derivative [Line Items] | |||
Financial contracts payable, Notional amount of underlying instruments | 285 | ||
Financial contracts payable | (94) | ||
Commodity Swaps | Financial contracts receivable | |||
Derivative [Line Items] | |||
Financial contracts receivable, Notional amount of underlying instruments | 24,110 | ||
Financial contracts receivable | 1,977 | ||
Commodity Swaps | Financial contracts payable | |||
Derivative [Line Items] | |||
Financial contracts payable, Notional amount of underlying instruments | 46,329 | ||
Financial contracts payable | (8,616) | ||
Forwards | Financial contracts payable | |||
Derivative [Line Items] | |||
Financial contracts payable, Notional amount of underlying instruments | 6,311 | 20,563 | |
Financial contracts payable | (81) | (512) | |
Futures | Financial contracts receivable | |||
Derivative [Line Items] | |||
Financial contracts receivable, Notional amount of underlying instruments | 13,204 | ||
Financial contracts receivable | 3,461 | ||
Futures | Financial contracts payable | |||
Derivative [Line Items] | |||
Financial contracts payable, Notional amount of underlying instruments | 36,697 | ||
Financial contracts payable | (1,005) | ||
Put options (2) | Financial contracts receivable | |||
Derivative [Line Items] | |||
Financial contracts receivable, Notional amount of underlying instruments | [1] | 202,020 | 299,907 |
Financial contracts receivable | [1] | 7,553 | 22,349 |
Put options (2) | Financial contracts payable | |||
Derivative [Line Items] | |||
Financial contracts payable, Notional amount of underlying instruments | [2] | 3,215 | |
Financial contracts payable | [2] | (2,745) | |
Total return swaps – equities | Financial contracts receivable | |||
Derivative [Line Items] | |||
Financial contracts receivable, Notional amount of underlying instruments | 58,336 | 43,355 | |
Financial contracts receivable | 4,036 | 18,898 | |
Total return swaps – equities | Financial contracts payable | |||
Derivative [Line Items] | |||
Financial contracts payable, Notional amount of underlying instruments | 65,758 | 33,625 | |
Financial contracts payable | (12,738) | (867) | |
Warrants and rights on listed equities | Financial contracts receivable | |||
Derivative [Line Items] | |||
Financial contracts receivable, Notional amount of underlying instruments | 611 | 8,054 | |
Financial contracts receivable | 195 | 2,463 | |
Warrants and rights on listed equities | Financial contracts payable | |||
Derivative [Line Items] | |||
Financial contracts payable, Notional amount of underlying instruments | 122,667 | ||
Financial contracts payable | (40,194) | ||
Weather derivative swap | Financial contracts receivable | |||
Derivative [Line Items] | |||
Financial contracts receivable, Notional amount of underlying instruments | 12,000 | ||
Financial contracts receivable | 628 | ||
Credit default swaps, purchased | Corporate debt – U.S. | Financial contracts payable | |||
Derivative [Line Items] | |||
Financial contracts payable, Notional amount of underlying instruments | 79,937 | 221,198 | |
Financial contracts payable | (120) | (1,305) | |
Credit default swaps, purchased | Sovereign debt – Non U.S. | Financial contracts payable | |||
Derivative [Line Items] | |||
Financial contracts payable, Notional amount of underlying instruments | 92,259 | 251,467 | |
Financial contracts payable | (194) | $ (1,714) | |
Interest Rate Swaps | Financial contracts payable | |||
Derivative [Line Items] | |||
Financial contracts payable, Notional amount of underlying instruments | 1,926,000 | ||
Financial contracts payable | $ (271) | ||
[1] | Includes options on the Japanese Yen and the Chinese Yuan, denominated in U.S. dollars. | ||
[2] | Includes options on the Chinese Yuan, denominated in U.S. dollars. |
FINANCIAL INSTRUMENTS Schedul37
FINANCIAL INSTRUMENTS Schedule of Reported Gains and Losses on Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivatives recognized in income | $ (19,471) | $ 4,421 | $ (29,109) | $ 9,310 |
Commodity Swaps | Net investment income (loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivatives recognized in income | (8,058) | 0 | (8,788) | 0 |
Forwards | Net investment income (loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivatives recognized in income | 907 | 1,289 | 1,140 | (1,442) |
Futures | Net investment income (loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivatives recognized in income | 1,329 | 8,617 | (899) | 4,657 |
Interest rate options | Net investment income (loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivatives recognized in income | 0 | 0 | 0 | (26) |
Interest Rate Swaps | Net investment income (loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivatives recognized in income | (247) | 0 | (489) | 0 |
Options, warrants, and rights | Net investment income (loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivatives recognized in income | 389 | 240 | (9,099) | (17,868) |
Total return swaps – equities | Net investment income (loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivatives recognized in income | (13,231) | (5,642) | (9,088) | 24,432 |
Weather derivative swap | Other income (expense), net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivatives recognized in income | (552) | 0 | (1,712) | 0 |
Corporate debt – U.S. | Credit default swaps, purchased | Net investment income (loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivatives recognized in income | 8 | (11) | (97) | (157) |
Sovereign debt – Non U.S. | Credit default swaps, purchased | Net investment income (loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivatives recognized in income | $ (16) | $ (72) | $ (77) | $ (286) |
FINANCIAL INSTRUMENTS Schedul38
FINANCIAL INSTRUMENTS Schedule of Volumes of Derivative Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |||
Derivative [Line Items] | ||||||
Entered | $ 251,117 | |||||
Exited | 110,113 | |||||
Derivatives not designated as hedging instruments (notional amounts) | ||||||
Derivative [Line Items] | ||||||
Entered | $ 2,892,367 | $ 14,344,996 | $ 982,601 | |||
Exited | 9,098,647 | 17,780,828 | 521,563 | |||
Commodity Swaps | Derivatives not designated as hedging instruments (notional amounts) | ||||||
Derivative [Line Items] | ||||||
Entered | 27,364 | 103,358 | ||||
Exited | 20,083 | 20,083 | ||||
Forwards | Derivatives not designated as hedging instruments (notional amounts) | ||||||
Derivative [Line Items] | ||||||
Entered | 0 | 0 | 0 | 0 | ||
Exited | 3,777 | 10,943 | 9,870 | 74,134 | ||
Futures | ||||||
Derivative [Line Items] | ||||||
Entered | 0 | |||||
Exited | 21,570 | |||||
Futures | Derivatives not designated as hedging instruments (notional amounts) | ||||||
Derivative [Line Items] | ||||||
Entered | 169,986 | 254,975 | 128,823 | |||
Exited | 138,609 | 269,142 | 192,134 | |||
Interest Rate Swaps | Derivatives not designated as hedging instruments (notional amounts) | ||||||
Derivative [Line Items] | ||||||
Entered | 2,581,000 | 9,139,000 | ||||
Exited | 7,213,000 | 7,213,000 | ||||
Options, warrants and rights (1) | ||||||
Derivative [Line Items] | ||||||
Entered | [1] | 230,132 | ||||
Exited | [1] | 0 | ||||
Options, warrants and rights (1) | Derivatives not designated as hedging instruments (notional amounts) | ||||||
Derivative [Line Items] | ||||||
Entered | 88,208 | 4,798,424 | 757,232 | [1] | ||
Exited | [1] | 1,617,891 | 10,106,455 | 128,147 | ||
Total return swaps – equities | ||||||
Derivative [Line Items] | ||||||
Entered | 20,985 | |||||
Exited | $ 77,600 | |||||
Total return swaps – equities | Derivatives not designated as hedging instruments (notional amounts) | ||||||
Derivative [Line Items] | ||||||
Entered | 25,809 | 46,899 | 96,546 | |||
Exited | 105,287 | 162,278 | $ 127,148 | |||
Weather derivative swap | Derivatives not designated as hedging instruments (notional amounts) | ||||||
Derivative [Line Items] | ||||||
Entered | 0 | 2,340 | ||||
Exited | $ 0 | $ 0 | ||||
[1] | Exited amount excludes options which expired or were exercised during the period. |
FINANCIAL INSTRUMENTS Schedul39
FINANCIAL INSTRUMENTS Schedule of Gross and Net Amounts of Financial Instruments and Cash Collateral (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Financial Instruments [Abstract] | ||
Financial contracts receivable, Gross amounts of recognized assets (liabilities) | $ 14,872 | $ 47,171 |
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 | 14,872 | 47,171 |
Financial contracts receivable, Financial instruments available for offset | (10,897) | (24,265) |
Financial contracts receivable, Cash collateral (received) pledged | (885) | (9,452) |
Financial contracts receivable, Net amount of asset (liability) | 3,090 | 13,454 |
Financial contracts payable, Gross amounts of recognized assets (liabilities) | (25,864) | (44,592) |
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 | (25,864) | (44,592) |
Financial contracts payable, Financial instruments available for offset | 10,897 | 24,265 |
Financial contracts payable, Cash collateral (received) pledged | 12,489 | 20,327 |
Financial contracts payable, Net amount of asset (liability) | $ (2,478) | $ 0 |
DUE TO PRIME BROKERS (Details)
DUE TO PRIME BROKERS (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Due to Prime Brokers [Line Items] | ||
Amounts due to prime brokers | $ 266,975 | $ 211,070 |
GLRE | ||
Due to Prime Brokers [Line Items] | ||
Maximum temporary leverage | 30.00% | |
Maximum long-term leverage | 15.00% | |
GRIL | ||
Due to Prime Brokers [Line Items] | ||
Maximum temporary leverage | 20.00% | |
Maximum long-term leverage | 5.00% | |
Collateral for LOCs issued | ||
Due to Prime Brokers [Line Items] | ||
Amounts due to prime brokers | $ 203,900 | 135,000 |
Investing activities | ||
Due to Prime Brokers [Line Items] | ||
Amounts due to prime brokers | $ 63,100 | $ 76,100 |
RETROCESSION (Details)
RETROCESSION (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Ceded Credit Risk [Line Items] | |||||
Loss and loss adjustment expenses incurred, net | $ 97,421,000 | $ 53,028,000 | $ 237,281,000 | $ 177,035,000 | |
Loss and loss expenses recovered and recoverable | 500,000 | $ 500,000 | 1,300,000 | $ 1,600,000 | |
Loss and loss adjustment expenses recoverable | 3,253,000 | 3,253,000 | $ 11,523,000 | ||
Funds withheld | 6,428,000 | 6,428,000 | 6,558,000 | ||
Provision for uncollectible losses recoverable | 0 | 0 | 0 | ||
Ceded Credit Risk, Secured | |||||
Ceded Credit Risk [Line Items] | |||||
Funds withheld | 3,100,000 | 3,100,000 | 2,800,000 | ||
Unrated [Member] | |||||
Ceded Credit Risk [Line Items] | |||||
Loss and loss adjustment expenses recoverable | 3,100,000 | 3,100,000 | 11,500,000 | ||
AM Best, A- Rating [Member] | |||||
Ceded Credit Risk [Line Items] | |||||
Loss and loss adjustment expenses recoverable | $ 200,000 | $ 200,000 | $ 0 |
SHARE CAPITAL (Details)
SHARE CAPITAL (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($)shares | |
Equity, Class of Treasury Stock [Line Items] | |
Stock Repurchase Program Expiration Date | Jun. 30, 2016 |
Stock Repurchased During Period, Shares | 613,540 |
Registration Statement, Unused Aggregate Principal Amount of Securities | $ | $ 200 |
Common Class A | |
Equity, Class of Treasury Stock [Line Items] | |
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 2,000,000 |
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 1,400,000 |
SHARE-BASED COMPENSATION Narrat
SHARE-BASED COMPENSATION Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
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 | 40,683 | ||
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 | $ 12.29 | $ 15.71 | |
Number of stock options exercised | 250,000 | 232,500 | |
Intrinsic value of options exercised | $ 4.8 | $ 4.9 | |
General and Administrative Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation expense | $ 3.2 | $ 3 | |
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 | 40,683 | 31,821 | |
Shares issued from the exercise of stock options | 158,925 | 151,972 | |
Stock options | Common Class A | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
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 | 658,775 | 803,558 | |
Restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Stock compensation expense reversed due to forfeitures | $ 0.1 | $ 0.2 | |
Number of RSUs issued to employees | 106,900 | ||
Restricted stock | Common Class A | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 78,685 | 119,566 | |
Number of restricted shares forfeited | 9,621 | 27,083 | |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Number of RSUs issued to employees | 6,821 | 9,668 | |
Grant Date [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | 25.00% | |
Vesting In Year One [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | 25.00% | |
Vesting In Year Two [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | 25.00% | |
Vesting In Year Three [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | 25.00% |
SHARE-BASED COMPENSATION Restri
SHARE-BASED COMPENSATION Restricted Shares (Details) - Restricted stock - $ / shares | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
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 | 330,087 | |
Number of non-vested restricted shares, Granted | 106,900 | |
Number of non-vested restricted shares, Vested | (119,703) | |
Number of non-vested restricted shares, Forfeited | (9,621) | |
Number of non-vested restricted shares, Balance | 307,663 | |
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 | $ 27.90 | |
Weighted average grant date fair value, Granted | 31.56 | |
Weighted average grant date fair value, Vested | 26.28 | |
Weighted average grant date fair value, Forfeited | 30.49 | |
Weighted average grant date fair value, Balance | $ 29.72 | |
Common Class A [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 78,685 | 119,566 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Number of restricted shares forfeited | (9,621) | (27,083) |
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 | 28,215 | 28,060 |
SHARE-BASED COMPENSATION Rest45
SHARE-BASED COMPENSATION Restricted Stock Units (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
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 | 330,087 | |
Number of non-vested restricted shares, Granted | 106,900 | |
Number of non-vested restricted shares, Vested | (119,703) | |
Number of non-vested restricted shares, Forfeited | (9,621) | |
Number of non-vested restricted shares, Balance | 307,663 | |
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 | $ 27.90 | |
Weighted average grant date fair value, Granted | 31.56 | |
Weighted average grant date fair value, Vested | 26.28 | |
Weighted average grant date fair value, Forfeited | 30.49 | |
Weighted average grant date fair value, Balance | $ 29.72 | |
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 | 15,609 | |
Number of non-vested restricted shares, Granted | 6,821 | 9,668 |
Number of non-vested restricted shares, Vested | (260) | |
Number of non-vested restricted shares, Forfeited | 0 | |
Number of non-vested restricted shares, Balance | 22,170 | |
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 | $ 29.72 | |
Weighted average grant date fair value, Granted | 32.21 | |
Weighted average grant date fair value, Vested | 24.30 | |
Weighted average grant date fair value, Forfeited | 0 | |
Weighted average grant date fair value, Balance | $ 30.55 |
SHARE-BASED COMPENSATION Share
SHARE-BASED COMPENSATION Share Based Compensation Options Rollfoward (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Number of options, Balance | 1,116,308 | |
Number of options, Granted | 40,683 | |
Number of options, Exercised | (250,000) | (232,500) |
Number of options, Forfeited | 0 | |
Number of options, Expired | 0 | |
Number of options, Balance | 906,991 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||
Weighted average exercise price, Balance | $ 17.58 | |
Weighted average exercise price, Granted | 26.67 | |
Weighted average exercise price, Exercised | 11.10 | |
Weighted average exercise price, Forfeited | 0 | |
Weighted average exercise price, Expired | 0 | |
Weighted average exercise price, Balance | 19.78 | |
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, Balance | 7.73 | |
Weighted average grant date fair value, Granted | 12.29 | $ 15.71 |
Weighted average grant date fair value, Exercised | 5.57 | |
Weighted average grant date fair value, Forfeited | 0 | |
Weighted average grant date fair value, Expired | 0 | |
Weighted average grant date fair value, Balance | $ 8.53 |
SHARE-BASED COMPENSATION Black
SHARE-BASED COMPENSATION Black Scholes option pricing model assumptions (Details) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Risk free rate | 2.15% | 2.47% |
Estimated volatility | 33.00% | 34.00% |
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) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | ||
Related Party Transaction [Line Items] | ||||||
Debt instruments | $ 28,657,000 | $ 28,657,000 | $ 49,212,000 | |||
Listed equity securities | 966,755,000 | $ 966,755,000 | 1,266,175,000 | |||
Investment Advisory Agreement | Board of Directors Chairman | ||||||
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 | 0 | $ (13,200,000) | $ 0 | $ 10,900,000 | ||
Investment management fee rate - monthly | 0.125% | |||||
Investment management fee rate - annual | 1.50% | |||||
Management fees | 4,700,000 | $ 5,300,000 | $ 15,100,000 | $ 15,400,000 | ||
Debt instruments | Board of Directors Chairman | ||||||
Related Party Transaction [Line Items] | ||||||
Debt instruments | 21,600,000 | |||||
Listed equity securities | 37,500,000 | 37,500,000 | 18,400,000 | |||
Interest Income, Related Party | 0 | 1,000,000 | ||||
Specialist service agreement | Board of Directors Chairman | ||||||
Related Party Transaction [Line Items] | ||||||
Investor relations monthly fee | 5,000 | |||||
Private and unlisted equity securities | ||||||
Related Party Transaction [Line Items] | ||||||
Unrecorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year | [1] | 8,495,000 | 8,495,000 | |||
Unrecorded Unconditional Purchase Obligation, Due in Next Twelve Months | $ 8,900,000 | |||||
Unrecorded Unconditional Purchase Obligation, Due within Two Years | 0 | 0 | ||||
Unrecorded Unconditional Purchase Obligation, Due within Three Years | 0 | 0 | ||||
Unrecorded Unconditional Purchase Obligation, Due within Four Years | 0 | 0 | ||||
Unrecorded Unconditional Purchase Obligation, Due within Five Years | 0 | 0 | ||||
Unrecorded Unconditional Purchase Obligation, Due after Five Years | 0 | 0 | ||||
Unrecorded Unconditional Purchase Obligation | $ 8,495,000 | $ 8,495,000 | ||||
[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 schedules will be called during the year ending December 31, 2015 |
COMMITMENTS AND CONTINGENCIES49
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Letters of Credit Facilities [Line Items] | ||
Contractual Obligation, Future Minimum Payments Due, Remainder of Fiscal Year | $ 8,780 | |
Amount of letters of credit issued | 264,700 | $ 273,700 |
Total equity securities, restricted cash, and cash and cash equivalents fair value pledged as security against the letters of credit | 294,100 | $ 302,600 |
Facility | ||
Letters of Credit Facilities [Line Items] | ||
Facility | 720,000 | |
Facility | Bank of America, N.A. | ||
Letters of Credit Facilities [Line Items] | ||
Facility | $ 120,000 | |
Notice period required for termination | 90 days | |
Facility | Butterfield Bank (Cayman) Limited | ||
Letters of Credit Facilities [Line Items] | ||
Facility | $ 100,000 | |
Notice period required for termination | 90 days | |
Facility | Citibank Europe plc | ||
Letters of Credit Facilities [Line Items] | ||
Facility | $ 400,000 | |
Notice period required for termination | 120 days | |
Facility | JP Morgan Chase Bank N.A. | ||
Letters of Credit Facilities [Line Items] | ||
Facility | $ 100,000 | |
Notice period required for termination | 120 days |
COMMITMENTS AND CONTINGENCIES L
COMMITMENTS AND CONTINGENCIES Lease (Details) $ in Thousands, € in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2015EUR (€) | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | ||
Operating Leased Assets [Line Items] | |||||||
Total rent expense related to leased office space | $ 100 | $ 100 | $ 400 | $ 400 | |||
Operating Lease obligations, 2015 | 135 | 135 | |||||
Operating lease obligations, 2016 | 494 | 494 | |||||
Operating lease obligations, 2017 | 466 | 466 | |||||
Operating lease obligations, 2018 | 233 | 233 | |||||
Operating lease obligations, 2019 | 0 | 0 | |||||
Operating lease obligations, Thereafter | 0 | 0 | |||||
Operating lease obligations, Total | 1,328 | 1,328 | |||||
Contractual Obligations Total 2015 | 8,780 | 8,780 | |||||
Contractual Obligations Total 2016 | 794 | 794 | |||||
Contractual Obligations Total 2017 | 466 | 466 | |||||
Contractual Obligations Total 2018 | 233 | 233 | |||||
Contractual Obligations Total 2019 | 0 | 0 | |||||
Contractual Obligations Total, Thereafter | 0 | 0 | |||||
Contractual Obligations Total | 10,273 | $ 10,273 | |||||
GLRE | |||||||
Operating Leased Assets [Line Items] | |||||||
Operating lease renewal option | 5 years | 5 years | |||||
GLRE | Minimum | |||||||
Operating Leased Assets [Line Items] | |||||||
Annual rent payments | $ 300 | ||||||
GLRE | Maximum | |||||||
Operating Leased Assets [Line Items] | |||||||
Annual rent payments | 500 | ||||||
GRIL | |||||||
Operating Leased Assets [Line Items] | |||||||
Annual rent payments | € | € 0.1 | ||||||
Private equity and limited partnerships (1) | |||||||
Operating Leased Assets [Line Items] | |||||||
Unrecorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year | [1] | 8,495 | 8,495 | ||||
Unrecorded Unconditional Purchase Obligation, Due in Next Twelve Months | $ 8,900 | ||||||
Unrecorded Unconditional Purchase Obligation, Due within Two Years | 0 | 0 | |||||
Unrecorded Unconditional Purchase Obligation, Due within Three Years | 0 | 0 | |||||
Unrecorded Unconditional Purchase Obligation, Due within Four Years | 0 | 0 | |||||
Unrecorded Unconditional Purchase Obligation, Due within Five Years | 0 | 0 | |||||
Unrecorded Unconditional Purchase Obligation, Due after Five Years | 0 | 0 | |||||
Unrecorded Unconditional Purchase Obligation | 8,495 | 8,495 | |||||
Specialist service agreement | |||||||
Operating Leased Assets [Line Items] | |||||||
Unrecorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year | 150 | 150 | |||||
Unrecorded Unconditional Purchase Obligation, Due within Two Years | 300 | 300 | |||||
Unrecorded Unconditional Purchase Obligation, Due within Three Years | 0 | 0 | |||||
Unrecorded Unconditional Purchase Obligation, Due within Four Years | 0 | 0 | |||||
Unrecorded Unconditional Purchase Obligation, Due within Five Years | 0 | 0 | |||||
Unrecorded Unconditional Purchase Obligation, Due after Five Years | 0 | 0 | |||||
Unrecorded Unconditional Purchase Obligation | $ 450 | $ 450 | |||||
[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 ending December 31, 2015 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)Segment | Sep. 30, 2014USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of operating segments | Segment | 1 | |||
Gross premiums written | $ 134,568 | $ 97,200 | $ 357,240 | $ 249,755 |
Premiums Written, Gross as a percentage of Total Gross Premiums Written | 100.00% | 100.00% | 100.00% | 100.00% |
Total Property | ||||
Segment Reporting Information [Line Items] | ||||
Gross premiums written | $ 27,813 | $ 33,086 | $ 82,215 | $ 80,599 |
Premiums Written, Gross as a percentage of Total Gross Premiums Written | 20.70% | 34.00% | 23.10% | 32.30% |
Aviation | ||||
Segment Reporting Information [Line Items] | ||||
Gross premiums written | $ 154 | $ 0 | $ 557 | $ 290 |
Premiums Written, Gross as a percentage of Total Gross Premiums Written | 0.10% | 0.00% | 0.20% | 0.10% |
Commercial | ||||
Segment Reporting Information [Line Items] | ||||
Gross premiums written | $ 2,701 | $ 1,953 | $ 12,404 | $ 9,183 |
Premiums Written, Gross as a percentage of Total Gross Premiums Written | 2.00% | 2.00% | 3.50% | 3.70% |
Energy | ||||
Segment Reporting Information [Line Items] | ||||
Gross premiums written | $ 188 | $ 0 | $ 1,926 | $ 2,131 |
Premiums Written, Gross as a percentage of Total Gross Premiums Written | 0.10% | 0.00% | 0.50% | 0.90% |
Motor physical damage | ||||
Segment Reporting Information [Line Items] | ||||
Gross premiums written | $ 8,931 | $ 7,405 | $ 24,573 | $ 19,759 |
Premiums Written, Gross as a percentage of Total Gross Premiums Written | 6.70% | 7.60% | 6.90% | 7.90% |
Personal | ||||
Segment Reporting Information [Line Items] | ||||
Gross premiums written | $ 15,839 | $ 23,728 | $ 42,755 | $ 49,236 |
Premiums Written, Gross as a percentage of Total Gross Premiums Written | 11.80% | 24.40% | 12.00% | 19.70% |
Total Casualty | ||||
Segment Reporting Information [Line Items] | ||||
Gross premiums written | $ 81,039 | $ 49,835 | $ 211,194 | $ 124,460 |
Premiums Written, Gross as a percentage of Total Gross Premiums Written | 60.20% | 51.30% | 59.10% | 49.90% |
General liability | ||||
Segment Reporting Information [Line Items] | ||||
Gross premiums written | $ 8,768 | $ 4,260 | $ 17,472 | $ 7,176 |
Premiums Written, Gross as a percentage of Total Gross Premiums Written | 6.50% | 4.40% | 4.90% | 2.90% |
Marine liability | ||||
Segment Reporting Information [Line Items] | ||||
Gross premiums written | $ 2,046 | $ 20 | $ 7,468 | $ 3,867 |
Premiums Written, Gross as a percentage of Total Gross Premiums Written | 1.50% | 0.00% | 2.10% | 1.60% |
Motor liability | ||||
Segment Reporting Information [Line Items] | ||||
Gross premiums written | $ 50,708 | $ 41,177 | $ 138,933 | $ 108,631 |
Premiums Written, Gross as a percentage of Total Gross Premiums Written | 37.70% | 42.40% | 38.90% | 43.50% |
Professional liability | ||||
Segment Reporting Information [Line Items] | ||||
Gross premiums written | $ 19,517 | $ 4,378 | $ 47,321 | $ 4,786 |
Premiums Written, Gross as a percentage of Total Gross Premiums Written | 14.50% | 4.50% | 13.20% | 1.90% |
Total Specialty | ||||
Segment Reporting Information [Line Items] | ||||
Gross premiums written | $ 25,716 | $ 14,279 | $ 63,831 | $ 44,696 |
Premiums Written, Gross as a percentage of Total Gross Premiums Written | 19.10% | 14.70% | 17.80% | 17.80% |
Financial | ||||
Segment Reporting Information [Line Items] | ||||
Gross premiums written | $ 2,210 | $ 812 | $ 5,786 | $ 3,830 |
Premiums Written, Gross as a percentage of Total Gross Premiums Written | 1.60% | 0.80% | 1.60% | 1.50% |
Health | ||||
Segment Reporting Information [Line Items] | ||||
Gross premiums written | $ 18,383 | $ 13,113 | $ 50,523 | $ 40,512 |
Premiums Written, Gross as a percentage of Total Gross Premiums Written | 13.70% | 13.50% | 14.10% | 16.20% |
Workers’ compensation | ||||
Segment Reporting Information [Line Items] | ||||
Gross premiums written | $ 5,123 | $ 354 | $ 7,522 | $ 354 |
Premiums Written, Gross as a percentage of Total Gross Premiums Written | 3.80% | 0.40% | 2.10% | 0.10% |
SEGMENT REPORTING Geographic in
SEGMENT REPORTING Geographic information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Revenue from External Customer [Line Items] | |||||
Gross premiums written | $ 134,568 | $ 97,200 | $ 357,240 | $ 249,755 | |
Gross premiums by geographical area as a percentage of total gross premiums | 100.00% | 100.00% | 100.00% | 100.00% | |
U.S. and Caribbean | |||||
Revenue from External Customer [Line Items] | |||||
Gross premiums written | $ 104,267 | $ 89,641 | $ 272,827 | $ 227,723 | |
Gross premiums by geographical area as a percentage of total gross premiums | 77.50% | 92.20% | 76.40% | 91.20% | |
Worldwide (1) | |||||
Revenue from External Customer [Line Items] | |||||
Gross premiums written | [1] | $ 28,661 | $ 7,426 | $ 79,030 | $ 21,491 |
Gross premiums by geographical area as a percentage of total gross premiums | [1] | 21.30% | 7.70% | 22.10% | 8.60% |
Europe | |||||
Revenue from External Customer [Line Items] | |||||
Gross premiums written | $ 1,580 | $ 133 | $ 4,716 | $ 541 | |
Gross premiums by geographical area as a percentage of total gross premiums | 1.20% | 0.10% | 1.30% | 0.20% | |
Asia | |||||
Revenue from External Customer [Line Items] | |||||
Gross premiums written | $ 60 | $ 0 | $ 667 | $ 0 | |
Gross premiums by geographical area as a percentage of total gross premiums | 0.00% | 0.00% | 0.20% | 0.00% | |
[1] | "Worldwide" is comprised of contracts that reinsure risks in more than one geographic area and do not specifically exclude the U.S. |