Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 29, 2016 | |
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 | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Common Class A | ||
Document and Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 31,065,939 | |
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 | Jun. 30, 2016 | Dec. 31, 2015 |
Investments | ||
Debt instruments, trading, at fair value | $ 93,893 | $ 39,087 |
Equity securities, trading, at fair value | 899,904 | 905,994 |
Other investments, at fair value | 176,670 | 119,083 |
Total investments | 1,170,467 | 1,064,164 |
Cash and cash equivalents | 45,556 | 112,162 |
Restricted cash and cash equivalents | 1,077,546 | 1,236,589 |
Financial contracts receivable, at fair value | 23,725 | 13,215 |
Reinsurance balances receivable | 216,803 | 187,940 |
Loss and loss adjustment expenses recoverable | 72,328 | 3,368 |
Deferred acquisition costs, net | 52,828 | 59,823 |
Unearned premiums ceded | 3,669 | 3,251 |
Notes receivable, net | 34,785 | 25,146 |
Other assets | 7,077 | 6,864 |
Total assets | 2,704,784 | 2,712,522 |
Liabilities | ||
Securities sold, not yet purchased, at fair value | 797,773 | 882,906 |
Financial contracts payable, at fair value | 5,290 | 28,245 |
Due to prime brokers | 415,459 | 396,453 |
Loss and loss adjustment expense reserves | 354,703 | 305,997 |
Unearned premium reserves | 201,376 | 211,954 |
Reinsurance balances payable | 96,986 | 18,326 |
Funds withheld | 6,112 | 7,143 |
Other liabilities | 10,839 | 12,725 |
Total liabilities | 1,888,538 | 1,863,749 |
Equity | ||
Preferred share capital (par value $0.10; authorized, 50,000,000; none issued) | 0 | 0 |
Ordinary share capital (Class A: par value $0.10; authorized, 100,000,000; issued and outstanding, 31,060,643 (2015: 30,772,572): Class B: par value $0.10; authorized, 25,000,000; issued and outstanding, 6,254,895 (2015: 6,254,895)) | 3,732 | 3,703 |
Additional paid-in capital | 498,189 | 496,401 |
Retained earnings | 290,961 | 325,287 |
Shareholders’ equity attributable to shareholders | 792,882 | 825,391 |
Non-controlling interest in joint venture | 23,364 | 23,382 |
Total equity | 816,246 | 848,773 |
Total liabilities and equity | $ 2,704,784 | $ 2,712,522 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 |
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) | 31,060,643 | 30,772,572 |
Ordinary share capital, outstanding (in shares) | 31,060,643 | 30,772,572 |
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 | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues | ||||
Gross premiums written | $ 92,237 | $ 92,990 | $ 259,029 | $ 222,672 |
Gross premiums ceded | (3,522) | (1,868) | (5,629) | (3,494) |
Net premiums written | 88,715 | 91,122 | 253,400 | 219,178 |
Change in net unearned premium reserves | 36,867 | 563 | 10,294 | (32,700) |
Net premiums earned | 125,582 | 91,685 | 263,694 | 186,478 |
Net investment income (loss) | (38,054) | (20,305) | (9,619) | (45,134) |
Other income (expense), net | 282 | (3,760) | 11 | (2,172) |
Total revenues | 87,810 | 67,620 | 254,086 | 139,172 |
Expenses | ||||
Loss and loss adjustment expenses incurred, net | 111,376 | 76,653 | 202,044 | 139,860 |
Acquisition costs, net | 35,484 | 23,939 | 74,447 | 50,780 |
General and administrative expenses | 4,994 | 6,894 | 11,993 | 13,054 |
Total expenses | 151,854 | 107,486 | 288,484 | 203,694 |
Income (loss) before income tax | (64,044) | (39,866) | (34,398) | (64,522) |
Income tax (expense) benefit | 258 | (54) | 54 | 161 |
Net income (loss) including non-controlling interest | (63,786) | (39,920) | (34,344) | (64,361) |
Loss (income) attributable to non-controlling interest in joint venture | 791 | 324 | 18 | 718 |
Net income (loss) | $ (62,995) | $ (39,596) | $ (34,326) | $ (63,643) |
Earnings (loss) per share | ||||
Basic | $ (1.69) | $ (1.06) | $ (0.92) | $ (1.71) |
Diluted | $ (1.69) | $ (1.06) | $ (0.92) | $ (1.71) |
Weighted average number of ordinary shares used in the determination of earnings and loss per share | ||||
Basic | 37,281,392 | 37,303,265 | 37,194,428 | 37,168,279 |
Diluted | 37,281,392 | 37,303,265 | 37,194,428 | 37,168,279 |
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, 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 | 22 | 22 | 0 | 0 | 22 | 0 |
Repurchase of Class A ordinary shares | (4,239) | (14) | (1,945) | (2,280) | (4,239) | 0 |
Share-based compensation expense, net of forfeitures | 2,033 | 0 | 2,033 | 0 | 2,033 | 0 |
Income (loss) attributable to non-controlling interest in joint venture | (718) | 0 | 0 | 0 | 0 | (718) |
Net income (loss) | (63,643) | 0 | 0 | (63,643) | (63,643) | 0 |
Balance at Jun. 30, 2015 | 1,127,496 | 3,746 | 500,641 | 594,937 | 1,099,324 | 28,172 |
Balance at Dec. 31, 2015 | 848,773 | 3,703 | 496,401 | 325,287 | 825,391 | 23,382 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issue of Class A ordinary shares, net of forfeitures | 29 | 29 | 0 | 0 | 29 | 0 |
Share-based compensation expense, net of forfeitures | 1,788 | 0 | 1,788 | 0 | 1,788 | 0 |
Income (loss) attributable to non-controlling interest in joint venture | (18) | 0 | 0 | 0 | 0 | (18) |
Net income (loss) | (34,326) | 0 | 0 | (34,326) | (34,326) | 0 |
Balance at Jun. 30, 2016 | $ 816,246 | $ 3,732 | $ 498,189 | $ 290,961 | $ 792,882 | $ 23,364 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Net income (loss) | $ (34,326) | $ (63,643) |
Adjustments to reconcile net income or loss to net cash provided by (used in) operating activities | ||
Net change in unrealized gains and losses on investments and financial contracts | (108,841) | 49,137 |
Net realized gains (losses) on investments and financial contracts | 112,315 | (40,277) |
Foreign exchange (gains) losses on investments | 2,309 | 16,370 |
Income (loss) attributable to non-controlling interest in joint venture | (18) | (718) |
Share-based compensation expense, net of forfeitures | 1,817 | 2,055 |
Depreciation expense | 203 | 203 |
Net change in | ||
Reinsurance balances receivable | (28,863) | (36,183) |
Loss and loss adjustment expenses recoverable | (68,960) | (454) |
Deferred acquisition costs, net | 6,995 | (8,635) |
Unearned premiums ceded | (418) | 1,344 |
Other assets | (416) | (3,467) |
Loss and loss adjustment expense reserves | (48,706) | (6,192) |
Unearned premium reserves | (10,578) | 31,436 |
Reinsurance balances payable | 78,660 | 5,840 |
Funds withheld | (1,031) | 303 |
Other liabilities | (1,886) | (179) |
Net cash provided by (used in) operating activities | (4,332) | (40,676) |
Investing activities | ||
Purchases of investments, trading | (632,044) | (478,199) |
Sales of investments, trading | 538,465 | 500,276 |
Payments for financial contracts | (34,592) | (18,826) |
Proceeds from financial contracts | 12,656 | 6,601 |
Securities sold, not yet purchased | 474,965 | 534,837 |
Dispositions of securities sold, not yet purchased | (586,774) | (364,581) |
Change in due to prime brokers | 19,006 | 303,993 |
Change in restricted cash and cash equivalents, net | 155,683 | (357,829) |
Change in notes receivable, net | (9,639) | (2,432) |
Net cash provided by (used in) investing activities | (62,274) | 123,840 |
Financing activities | ||
Repurchase of Class A ordinary shares | 0 | (4,239) |
Net cash provided by (used in) financing activities | 0 | (4,239) |
Net increase (decrease) in cash and cash equivalents | (66,606) | 78,925 |
Cash and cash equivalents at beginning of the period | 112,162 | 12,030 |
Cash and cash equivalents at end of the period | 45,556 | 90,955 |
Supplementary information | ||
Interest paid in cash | 5,275 | 14,201 |
Income tax paid in cash | 0 | 0 |
Non-cash transfer to notes receivable | $ 0 | $ 25,859 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2016 | |
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. 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, Designated Activity Company ("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 Union (Insurance and Reinsurance) Regulations 2015 ("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, 2015 . 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 six months ended June 30, 2016 are not necessarily indicative of the results expected for the full calendar year. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of condensed 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 derivatives. Additionally, restricted cash and cash equivalent balances are held to collateralize regulatory trusts and letters of credit issued to cedents (see Notes 4 and 8 ). The amount of cash encumbered varies depending on the market value of the securities sold, not yet purchased, and the collateral required by the cedents in the form of trust accounts and letters of credit. In addition, derivative counterparties require cash collateral to support the current value of any amounts that may be due to the counterparty based on the value of the underlying financial instrument. Premium Revenue Recognition The Company accounts for reinsurance contracts in accordance with U.S. GAAP. In the event that a reinsurance contract does not transfer sufficient risk, deposit accounting is used and the contract is reported as a deposit liability. The Company writes excess of loss contracts as well as quota share contracts. The Company estimates the ultimate premiums for the entire contract period. These estimates are based on information received from the ceding companies and estimates from actuarial pricing models used by the Company. For excess of loss contracts, the total ultimate estimated premiums are recorded as premiums written at the inception of the contract. For quota share contracts, the premiums are recorded as written based on cession statements from cedents which typically are received monthly or quarterly depending on the terms specified in each contract. For any reporting lag, premiums written are estimated based on the portion of the ultimate estimated premiums relating to the risks underwritten during the lag period. Premium estimates are reviewed by management at least quarterly. Such review includes a comparison of actual reported premiums to expected ultimate premiums along with a review of the aging and collection of premium estimates. Based on management’s review, the appropriateness of the premium estimates is evaluated, and any adjustments to these estimates are recorded in the period in which they are determined. Changes in premium estimates, including premium receivable on both excess of loss and quota share contracts, are expected and may result in significant adjustments in any period. A significant portion of amounts included in reinsurance balances receivable represent estimated premiums written, net of commissions and brokerage, and are not currently due based on the terms of the underlying contracts. Certain contracts allow for reinstatement premiums in the event of a full limit loss prior to the expiry of a contract. A reinstatement premium is not due until there is a full limit loss event and therefore, in accordance with U.S. GAAP, the Company records a reinstatement premium as written only in the event that a client incurs a full limit loss on the contract and the contract allows for a reinstatement of coverage upon payment of an additional premium. For catastrophe contracts which contractually require the payment of a reinstatement premium equal to or greater than the original premium upon the occurrence of a full limit loss, the reinstatement premiums are earned over the original contract period. Reinstatement premiums that are contractually calculated on a pro-rata basis of the original premiums, are earned over the remaining coverage period. For additional premiums which are due on a contract that has no remaining coverage period, the additional premiums are earned in full when due. Certain contracts may provide for a penalty to be paid if the contract is terminated and canceled prior to its expiration term. Cancellation penalties are recognized in the period the notice of cancellation is received and are recorded in the consolidated statements of income under "other income (expense), net". Premiums written are generally recognized as earned over the contract period in proportion to the period of risk covered. Unearned premiums consist of the unexpired portion of reinsurance provided. 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 June 30, 2016 and December 31, 2015 , 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 June 30, 2016 , $12.2 million ( December 31, 2015 : $12.2 million ) of profit commission reserves were included in reinsurance balances payable on the condensed consolidated balance sheets. For the three and six months ended June 30, 2016 , $1.5 million and $2.6 million , respectively ( 2015 : $1.1 million and $1.6 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. Amounts paid by the Company for retroactive reinsurance that meets the conditions for reinsurance accounting are reported as loss and loss adjustment expenses recoverable to the extent those amounts do not exceed the associated liabilities. If the amounts paid for retroactive reinsurance exceed the liabilities, the Company increases the related liabilities, at the time the reinsurance contract is effective, and the excess is charged to net income as losses incurred. If the liabilities exceed the amounts paid, the recoverable balance is increased to reflect the difference, and the resulting gain is deferred and amortized over the estimated loss payout period. Changes in the estimated amount of liabilities relating to the underlying reinsured contracts are recognized in net income in the period of the change. 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 in accordance with the terms of the note. For notes receivable placed on non-accrual status, the notes are recorded excluding any accrued interest amount. 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 June 30, 2016 , $20.9 million of notes receivable (net of any valuation allowance) were on non-accrual status ( December 31, 2015 : $23.0 million ) and any payments received were applied to reduce the recorded value of the notes. At June 30, 2016 and December 31, 2015 , 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 valuation allowance, at June 30, 2016 and December 31, 2015 , 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 that does not meet the conditions for reinsurance accounting. 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 June 30, 2016 and December 31, 2015 , 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 certain private equity fund investments the Company has elected to measure the fair value using the net asset value practical expedient allowed under U.S. GAAP, and accordingly these investments are not classified as Level 1, 2 or 3 in the fair value hierarchy. 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). Comprehensive Income (Loss) The Company has no 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 June 30 Six months ended June 30 2016 2015 2016 2015 Weighted average shares outstanding - basic 37,281,392 37,303,265 37,194,428 37,168,279 Effect of dilutive employee and director share-based awards — — — — Weighted average shares outstanding - diluted 37,281,392 37,303,265 37,194,428 37,168,279 Anti-dilutive stock options outstanding 435,991 71,821 435,991 71,821 Participating securities excluded from calculation of loss per share 371,642 310,193 371,642 310,193 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. The Company adopted ASU 2015-07 during the first quarter of 2016. 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 was 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 those 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 interim and annual periods thereafter. In January 2016, the FASB issued ASU 2016-01, "Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities" ("ASU 2016-01") . The new guidance is intended to improve the recognition and measurement of financial instruments. ASU 2016-01, among other things, requires equity investments to be measured at fair value with changes in fair value recognized in net income or loss; requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; and requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset. ASU 2016-01 affects public and private companies, not-for-profit organizations, and employee benefit plans that hold financial assets or owe financial liabilities. The new guidance is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is in the process of evaluating the impact of adopting ASU 2016-01 on the Company's consolidated financial statements. However, the adoption of this guidance is not expected to have a significant impact on the Company's net income or loss or retained earnings since the Company's investments are currently classified as "trading" and the unrealized gains and losses are already recognized in net income or loss. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)" ("ASU 2016-02") . Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. ASU 2016-02 is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted for any organization in any interim or annual period. The Company is in the process of evaluating the impact of adopting ASU 2016-02 on the Company's consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09") . ASU 2016-09 is intended to improve the accounting for employee share-based payments and affects all organizations that issue share-based payment awards to their employees. Several aspects of the accounting for share-based payment award transactions are simplified, including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. The amendments are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any organization in any interim or annual period. The Company is in the process of evaluating the impact of the requirements of ASU 2016-09 on the Company's disclosures. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016 : Fair value measurements as of June 30, 2016 Quoted prices in Significant other Significant Total Assets: ($ in thousands) Debt instruments $ — $ 93,307 $ 586 $ 93,893 Listed equity securities 891,952 7,952 — 899,904 Commodities 158,004 — — 158,004 Private and unlisted equity securities — — 5,987 5,987 Private equity funds measured at net asset value (1) 12,679 Total investments $ 1,049,956 $ 101,259 $ 6,573 $ 1,170,467 Financial contracts receivable $ 15 $ 23,710 $ — $ 23,725 Liabilities: Listed equity securities, sold not yet purchased $ (714,535 ) $ — $ — $ (714,535 ) Debt instruments, sold not yet purchased — (83,238 ) — (83,238 ) Securities sold, not yet purchased, at fair value $ (714,535 ) $ (83,238 ) $ — $ (797,773 ) Financial contracts payable $ — $ (5,290 ) $ — $ (5,290 ) (1) Investments measured at fair value using the net asset value practical expedient have not been classified in the fair value hierarchy. The fair value amounts are presented in the above table to facilitate reconciliation to the amounts presented in the condensed consolidated balance sheets. The following table presents the Company’s investments, categorized by the level of the fair value hierarchy as of December 31, 2015 : Fair value measurements as of December 31, 2015 Quoted prices in Significant other Significant Total Assets: ($ in thousands) Debt instruments $ — $ 38,582 $ 505 $ 39,087 Listed equity securities 900,369 5,625 — 905,994 Commodities 98,046 — — 98,046 Private and unlisted equity securities — — 8,452 8,452 Private equity funds measured at net asset value (1) 12,585 $ 998,415 $ 44,207 $ 8,957 $ 1,064,164 Financial contracts receivable $ 20 $ 13,195 $ — $ 13,215 Liabilities: Listed equity securities, sold not yet purchased $ (808,481 ) $ — $ — $ (808,481 ) Debt instruments, sold not yet purchased — (74,425 ) — (74,425 ) Securities sold, not yet purchased, at fair value $ (808,481 ) $ (74,425 ) $ — $ (882,906 ) Financial contracts payable $ (488 ) $ (27,757 ) $ — $ (28,245 ) (1) Investments measured at fair value using the net asset value practical expedient have not been classified in the fair value hierarchy. The fair value amounts are presented in the above table to facilitate reconciliation to the amounts presented in the condensed consolidated balance sheets. 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 six months ended June 30, 2016 : Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Three months ended June 30, 2016 Assets Debt instruments Private and unlisted equity securities Total ($ in thousands) Beginning balance $ 496 $ 5,931 $ 6,427 Purchases — — — Sales — — — Issuances — — — Settlements — — — Total realized and unrealized gains (losses) and amortization included in earnings, net 90 56 146 Transfers into Level 3 — — — Transfers out of Level 3 — — — Ending balance $ 586 $ 5,987 $ 6,573 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Six months ended June 30, 2016 Assets Debt instruments Private and unlisted equity securities Total ($ in thousands) Beginning balance $ 505 $ 8,452 $ 8,957 Purchases — — — Sales — (2,539 ) (2,539 ) Issuances — — — Settlements — — — Total realized and unrealized gains (losses) and amortization included in earnings, net 81 74 155 Transfers into Level 3 — — — Transfers out of Level 3 — — — Ending balance $ 586 $ 5,987 $ 6,573 There were no transfers between Level 1, Level 2 or Level 3 during the three and six months ended June 30, 2016 . 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 six months ended June 30, 2015 : Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Three months ended June 30, 2015 Assets Liabilities Debt instruments Private and unlisted equity securities (1) Financial contracts receivable Listed equity securities Total Financial contracts payable ($ in thousands) Beginning balance $ 22,259 $ 6,449 $ 1,763 $ — $ 30,471 $ — Purchases — — — — — — Sales — — — — — — Issuances — — — — — — Settlements — — — — — — Total realized and unrealized gains (losses) and amortization included in earnings, net (78 ) — (583 ) — (661 ) — Transfers into Level 3 — — 2,536 5,189 7,725 8,835 Transfers out of Level 3 — — — — — — Ending balance $ 22,181 $ 6,449 $ 3,716 $ 5,189 $ 37,535 $ 8,835 (1) Restated to exclude investments measured at fair value using the net asset value practical expedient which are no longer classified in the fair value hierarchy. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Six months ended June 30, 2015 Assets Liabilities Debt instruments Private and unlisted equity securities (1) Financial contracts receivable Listed equity securities Total Financial contracts payable ($ in thousands) Beginning balance $ 22,259 $ 6,449 $ — $ — $ 28,708 $ — Purchases — 2,340 — 2,340 — Sales — — — — — Issuances — — — — — — Settlements — — — — — — Total realized and unrealized gains (losses) and amortization included in earnings, net (78 ) (1,160 ) — (1,238 ) — Transfers into Level 3 — — 2,536 5,189 7,725 8,835 Transfers out of Level 3 — — — — — — Ending balance $ 22,181 $ 6,449 $ 3,716 $ 5,189 $ 37,535 $ 8,835 (1) Restated to exclude investments measured at fair value using the net asset value practical expedient which are no longer classified in the fair value hierarchy. During the three and six months ended June 30, 2015 , $5.2 million of equity securities that were listed on the Athens Stock Exchange (the "ASE") were transferred from Level 1 to Level 3 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 values 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 fair values for derivatives for which the underlying securities trade on the ASE were similarly adjusted. Therefore, $2.5 million and $8.8 million of financial contracts receivable and financial contracts payable, respectively, were transfered from Level 2 to Level 3 during the three and six months ended June 30, 2015 due to the fair values being based on unobservable inputs. There were no other transfers between Level 1, Level 2 or Level 3 during the three and six months ended June 30, 2015 . As of June 30, 2016 , the Company held investments in private equity funds of $12.7 million (December 31, 2015 : $12.6 million ) with fair values measured using the unadjusted net asset values as reported by the managers of these funds as a practical expedient. Some of these net asset values were reported from periods prior to June 30, 2016 . The private equity funds have varying lock-up periods and, as of June 30, 2016 , all of the funds had redemption restrictions. The redemption restrictions have been in place since inception of the investments and are not expected to lapse in the near future. As of June 30, 2016 , the Company had $9.6 million (December 31, 2015 : $6.1 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 funds. These commitments are included in the amounts presented in the schedule of commitments and contingencies in Note 8 of these condensed consolidated financial statements. For the three and six months ended June 30, 2016 , included in net investment loss in the condensed consolidated statements of income were net realized losses relating to Level 3 securities of nil and $1.4 million , respectively ( three and six months ended June 30, 2015 : $0.1 million and $0.1 million , respectively). In addition, for the three and six months ended June 30, 2016 , amortization of nil and nil , respectively (2015: $0.6 million and $1.2 million , respectively) relating to financial contracts receivable, valued using unobservable inputs, were 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 gain for the three and six months ended June 30, 2016 of $0.1 million and $1.6 million , respectively ( three and six months ended June 30, 2015 : net unrealized losses of $0.4 million and $0.2 million , respectively), were included in net investment income (loss) in the condensed consolidated statements of income. Investments Debt instruments, trading At June 30, 2016 , the following investments were included in debt instruments: Cost/amortized cost Unrealized gains Unrealized losses Fair ($ in thousands) Corporate debt – U.S. $ 36,223 $ 5,159 $ (6,405 ) $ 34,977 Corporate debt – Non U.S. 2,109 — (2,073 ) 36 Sovereign debt – U.S. 36,952 1,670 — 38,622 Sovereign debt – Non U.S. 17,688 2,570 — 20,258 Total debt instruments $ 92,972 $ 9,399 $ (8,478 ) $ 93,893 At December 31, 2015 , the following investments were included in debt instruments: Cost/amortized cost Unrealized gains Unrealized losses Fair ($ in thousands) Corporate debt – U.S. $ 25,674 $ 155 $ (5,519 ) $ 20,310 Corporate debt – Non U.S. 2,109 — (1,795 ) 314 Sovereign debt – Non U.S. 17,688 1,225 (450 ) 18,463 Total debt instruments $ 45,471 $ 1,380 $ (7,764 ) $ 39,087 The maturity distribution for debt instruments held at June 30, 2016 and December 31, 2015 was as follows: June 30, 2016 December 31, 2015 Cost/ Fair Cost/ Fair ($ in thousands) Within one year $ — $ — $ — $ — From one to five years 11,151 6,725 4,202 4,129 From five to ten years 26,230 27,702 18,840 14,780 More than ten years 55,591 59,466 22,429 20,178 $ 92,972 $ 93,893 $ 45,471 $ 39,087 Equity securities, trading At June 30, 2016 , the following long positions were included in equity securities, trading: Cost Unrealized Unrealized Fair ($ in thousands) Equities – listed $ 930,113 $ 70,718 $ (124,230 ) $ 876,601 Exchange traded funds 17,986 5,317 — 23,303 Total equity securities $ 948,099 $ 76,035 $ (124,230 ) $ 899,904 At December 31, 2015 , the following long positions were included in equity securities, trading: Cost Unrealized Unrealized Fair ($ in thousands) Equities – listed $ 1,011,424 $ 67,114 $ (187,885 ) $ 890,653 Exchange traded funds 31,570 — (16,229 ) 15,341 Total equity securities $ 1,042,994 $ 67,114 $ (204,114 ) $ 905,994 Other Investments "Other investments" include commodities and private and unlisted equity securities. As of June 30, 2016 and December 31, 2015 , commodities were comprised of gold bullion. At June 30, 2016 , the following securities were included in other investments: Cost Unrealized Unrealized Fair ($ in thousands) Commodities $ 130,671 $ 27,333 $ — $ 158,004 Private and unlisted equity securities 14,678 3,989 (1 ) 18,666 $ 145,349 $ 31,322 $ (1 ) $ 176,670 At December 31, 2015 , the following securities were included in other investments: Cost Unrealized Unrealized Fair ($ in thousands) Commodities $ 102,092 $ — $ (4,046 ) $ 98,046 Private and unlisted equity securities 18,720 3,491 (1,174 ) 21,037 $ 120,812 $ 3,491 $ (5,220 ) $ 119,083 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 condensed 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 June 30, 2016 , the following securities were included in investments in securities sold, not yet purchased: Proceeds Unrealized gains Unrealized losses Fair value ($ in thousands) Equities – listed $ (684,731 ) $ 42,442 $ (72,246 ) $ (714,535 ) Exchange traded funds — — — — Sovereign debt – Non U.S. (73,828 ) — (9,410 ) (83,238 ) $ (758,559 ) $ 42,442 $ (81,656 ) $ (797,773 ) At December 31, 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 $ (803,842 ) $ 102,469 $ (94,681 ) $ (796,054 ) Exchange traded funds (9,572 ) — (2,855 ) (12,427 ) Sovereign debt – Non U.S. (77,443 ) 3,018 — (74,425 ) $ (890,857 ) $ 105,487 $ (97,536 ) $ (882,906 ) Financial Contracts As of June 30, 2016 and December 31, 2015 , the Company had entered into total return equity swaps, commodity swaps, 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. 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. As of June 30, 2016 , the Company held $2.9 million OTC put options (long) ( December 31, 2015 : $8.7 million ). At June 30, 2016 , the fair values of financial contracts outstanding were as follows: Financial Contracts Listing (1) Notional amount of Fair value of net assets ($ in thousands) Financial contracts receivable Commodity Swaps USD 55,355 $ 5,649 Put options (2) USD 44,055 2,905 Total return swaps – equities EUR/GBP/HKD/RON/USD 46,920 15,128 Warrants and rights on listed equities EUR/USD 82 43 Total financial contracts receivable, at fair value $ 23,725 Financial contracts payable Forwards KRW 2,752 $ (44 ) Total return swaps – equities EUR/USD 16,829 (5,246 ) Total financial contracts payable, at fair value $ (5,290 ) (1) USD = US Dollar; EUR = Euro; GBP = British Pound; HKD = Hong Kong Dollar; KRW = Korean Won; RON = Romanian New Leu. (2) Includes options on the Japanese Yen and the Chinese Yuan, denominated in U.S. dollars. At December 31, 2015 , the fair values of financial contracts outstanding were as follows: Financial Contracts Listing currency (1) Notional amount of Fair value of net assets ($ in thousands) Financial contracts receivable Call options (2) USD 47,259 $ 657 Put options (3) USD 147,326 8,790 Total return swaps – equities EUR/GBP/USD 50,205 3,748 Warrants and rights on listed equities EUR 59 20 Total financial contracts receivable, at fair value $ 13,215 Financial contracts payable Call options USD 2,601 $ (64 ) Commodity Swaps USD 42,160 (12,784 ) Forwards KRW 2,908 (22 ) Futures USD 21,195 (488 ) Total return swaps – equities EUR/GBP/HKD/RON/MXN/USD 71,874 (14,887 ) Total financial contracts payable, at fair value $ (28,245 ) (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 interest rate futures relating to U.S. dollar LIBOR interest rates. (3) Includes options on the Japanese Yen and the Chinese Yuan, denominated in U.S. dollars. During the three and six months ended June 30, 2016 and 2015 , 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 Three months ended June 30 Six months ended June 30 2016 2015 2016 2015 ($ in thousands) Credit default swaps, purchased – corporate debt Net investment income (loss) $ — $ (50 ) $ — $ (105 ) Credit default swaps, purchased – sovereign debt Net investment income (loss) — (30 ) — (61 ) Forwards Net investment income (loss) 13 97 (68 ) 233 Futures Net investment income (loss) 309 (151 ) 1,293 (2,228 ) Interest rate swaps Net investment income (loss) — (242 ) — (242 ) Options, warrants, and rights Net investment income (loss) 555 (7,014 ) (2,248 ) (9,488 ) Commodity swaps Net investment income (loss) 5,846 (730 ) 281 (730 ) Total return swaps – equities Net investment income (loss) 6,885 (80 ) 13,804 4,143 Weather derivative swap Other income (expense), net — (583 ) — (1,160 ) Total $ 13,608 $ (8,783 ) $ 13,062 $ (9,638 ) 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 six months ended June 30, 2016 , the Company’s volume of derivative activities (based on notional amounts) was as follows: 2016 Three months ended June 30 Six months ended June 30 Derivatives not designated as hedging instruments (notional amounts) Entered Exited Entered Exited ($ in thousands) Forwards $ — $ 115 $ — $ 178 Futures — 25,456 174,721 195,166 Options, warrants and rights (1) 20,206 83,051 153,539 258,702 Commodity swaps — 9,651 75,566 64,025 Total return swaps 567 20,994 2,050 49,265 Total $ 20,773 $ 139,267 $ 405,876 $ 567,336 (1) Exited amount excludes derivatives which expired or were exercised during the period. For the three and six months ended June 30, 2015 , the Company’s volume of derivative activities (based on notional amounts) was as follows: 2015 Three months ended June 30 Six months ended June 30 Derivatives not designated as hedging instruments (notional amounts) Entered Exited Entered Exited ($ in thousands) Forwards $ — $ 1,368 $ — $ 6,093 Futures — 73,785 84,989 130,533 Interest rate swaps 6,558,000 — 6,558,000 — Options, warrants and rights (1) 4,710,216 8,418,787 4,710,216 8,488,564 Commodity swaps 75,994 — 75,994 — Total return swaps 6,190 17,243 21,090 56,991 Weather derivative swap — — 2,340 — Total $ 11,350,400 $ 8,511,183 $ 11,452,629 $ 8,682,181 (1) Exited amount excludes derivatives 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 on its derivative instruments. As of June 30, 2016 , the gross and net amounts of derivative instruments and the cash collateral applicable to derivative instruments were as follows: June 30, 2016 (i) (ii) (iii) = (i) - (ii) (iv) Gross amounts not offset in the balance sheet (v) = (iii) + (iv) 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 $ 23,725 $ — $ 23,725 $ (2,683 ) $ (11,850 ) $ 9,192 Financial contracts payable (5,290 ) — (5,290 ) 2,683 2,607 — As of December 31, 2015 , the gross and net amounts of derivative instruments and the cash collateral applicable to derivative instruments were as follows: December 31, 2015 (i) (ii) (iii) = (i) - (ii) (iv) Gross amounts not offset in the balance sheet (v) = (iii) + (iv) 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 $ 13,215 $ — $ 13,215 $ (8,937 ) $ (2,036 ) $ 2,242 Financial contracts payable (28,245 ) — (28,245 ) 8,937 19,308 — |
DUE TO PRIME BROKERS
DUE TO PRIME BROKERS | 6 Months Ended |
Jun. 30, 2016 | |
Due to and from Broker-Dealers and Clearing Organizations [Abstract] | |
DUE TO PRIME BROKERS | DUE TO PRIME BROKERS As of June 30, 2016 , the amount due to prime brokers is comprised of margin-borrowing from prime brokers relating to investments purchased on margin, as well as margin-borrowing for providing collateral to support some of the Company’s outstanding letters of credit (see Note 8 ) and trust accounts. 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 June 30, 2016 , the amounts due to prime brokers included $266.4 million ( December 31, 2015 : $301.4 million ) of cash borrowed under the term margin agreements to provide collateral for letters of credit and trust accounts and $149.1 million ( December 31, 2015 : $95.0 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 | 6 Months Ended |
Jun. 30, 2016 | |
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 six months ended June 30, 2016 , loss and loss adjustment expenses incurred of $111.4 million and $202.0 million , respectively, ( 2015 : $76.7 million and $139.9 million , respectively), reported on the condensed consolidated statements of income are net of loss and loss expenses recovered and recoverable of $0.3 million and $0.7 million , respectively ( 2015 : $0.5 million and $0.8 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 June 30, 2016 , the Company had losses receivable and loss reserves recoverable of $71.7 million ( December 31, 2015 : $3.1 million ) from unrated retrocessionaires and $0.6 million ( December 31, 2015 : $0.3 million ) from a retrocessionaire rated A- by A.M. Best. At June 30, 2016 and December 31, 2015 , $3.0 million and $3.1 million , respectively, of losses recoverable from unrated retrocessionaires were secured by cash collateral held by the Company. In addition, at June 30, 2016 , $68.7 million of the losses recoverable from an unrated retrocessionaire was secured by a guarantee from the parent entity of the retrocessionaire. Subsequently, effective July 12, 2016, a trust account was established by the retrocessionaire for the benefit of the Company to provide collateral as required by the contract in the amount of $52.7 million . The Company regularly evaluates the financial condition of its retrocessionaires to assess the ability of the retrocessionaires to honor their respective obligations. At June 30, 2016 and December 31, 2015 , no provision for uncollectible losses recoverable was considered necessary. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2016 | |
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, 2015 : 3,500,000 ) Class A ordinary shares. As of June 30, 2016 , 475,963 ( December 31, 2015 : 658,775 ) 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, net of any estimated forfeitures. For the six months ended June 30, 2016 , 152,138 ( 2015 : 78,685 ) 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 six months ended June 30, 2016 , the Company also issued to non-employee directors an aggregate of 39,288 ( 2015 : 28,215 ) restricted Class A ordinary shares as part of their remuneration for services to the Company. Each of these restricted shares issued to non-employee directors contains similar restrictions to those issued to employees and will vest on the earlier of the first anniversary of the share issuance or the Company’s next annual general meeting, subject to the grantee’s continued service with the Company. For the six months ended June 30, 2016 , 4,177 ( 2015 : 7,091 ) restricted shares were forfeited by employees who left the Company prior to the expiration of the applicable vesting periods. For the six months ended June 30, 2016 , in accordance with U.S. GAAP, $0.05 million of stock compensation expense ( 2015 : $0.1 million ) relating to the forfeited restricted shares was reversed. The restricted share award activity during the six months ended June 30, 2016 was as follows: Number of Weighted Balance at December 31, 2015 307,013 $ 29.74 Granted 191,426 21.54 Vested (122,620 ) 25.66 Forfeited (4,177 ) 32.62 Balance at June 30, 2016 371,642 $ 26.83 Employee and Director Stock Options For the six months ended June 30, 2016 , 261,000 ( 2015 : 186,000 ) stock options were exercised by directors and employees resulting in 99,617 ( 2015 : 120,194 ) 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 six months ended June 30, 2016 was $2.0 million ( 2015 : $3.8 million ). Employee and director stock option activity during the six months ended June 30, 2016 was as follows: Number of Weighted Weighted Balance at December 31, 2015 906,991 $ 19.78 $ 8.53 Granted — — — Exercised (261,000 ) 12.17 6.23 Forfeited — — — Expired — — — Balance at June 30, 2016 645,991 $ 22.85 $ 9.46 Employee Restricted Stock Units The Company issues restricted stock units ("RSUs") to certain employees as part of the stock incentive plan. The grant date fair value of the RSUs is equal to the price of the Company’s Class A ordinary shares on the grant date. Compensation cost based on the grant date fair market value of the RSUs is expensed on a straight line basis over the vesting period. For the six months ended June 30, 2016 , 7,444 ( 2015 : 6,821 ) 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. For the six months ended June 30, 2016 , 11,881 ( 2015 : nil ) restricted share units were forfeited by employees who left the Company prior to the expiration of the applicable vesting periods. For the six months ended June 30, 2016 , in accordance with U.S. GAAP, $0.2 million of stock compensation expense ( 2015 : nil ) relating to the forfeited restricted share units was reversed. Employee RSU activity during the six months ended June 30, 2016 was as follows: Number of Weighted Balance at December 31, 2015 22,170 $ 30.55 Granted 7,444 21.56 Vested (1,205 ) 24.38 Forfeited (11,881 ) 29.60 Balance at June 30, 2016 16,528 $ 27.64 For the six months ended June 30, 2016 and 2015 , the general and administrative expenses included stock compensation expense (net of forfeitures) of $1.8 million and $2.1 million , respectively, for the expensing of the fair value of stock options, restricted shares and RSUs granted to employees and directors. For the six months ended June 30, 2016 , the Company assumed a forfeiture rate of 6.0% ( 2015 : 0% ) for restricted shares and RSUs granted to employees during the period. The Company’s assumed forfeiture rate reduces the unamortized grant date fair value of unvested outstanding restricted shares and RSUs as well as the associated stock compensation expense. As restricted shares and RSUs are actually forfeited, the number of outstanding restricted shares and RSUs is reduced and the remaining unamortized grant date fair value is compared to assumed forfeiture levels and if deemed necessary, true-up adjustments are recorded. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2016 | |
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"). 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 requires 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 year ended December 31, 2015, the Company's investment portfolio managed by DME Advisors reported a net investment loss of $276.7 million (net of minority interest) and as a result no performance allocation was paid to DME Advisors in 2015. In addition, the performance allocation for fiscal year 2016 and subsequent years will be reduced to 10% of net investment income until all the investment losses have been recouped and an additional amount equal to 150% of the investment loss is earned. For the three and six months ended June 30, 2016 , $(3.1) million and nil , respectively, of performance allocation ( 2015 : nil and nil ) was recorded due to net investment losses during the period. The negative performance allocation compensation for the three months ended June 30, 2016 reflects the reversal of performance allocation compensation recorded on the positive investment returns for the three months ended March 31, 2016. 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 six months ended June 30, 2016 were management fees of $4.1 million and $8.3 million , respectively, ( 2015 : $5.2 million and $10.4 million , respectively). The management fees have been fully paid as of June 30, 2016 . 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 six months ended June 30, 2016 , there were no indemnification payments payable or paid by the Company. Green Brick Partners, Inc David Einhorn also serves as the Chairman of the Board of Directors of Green Brick Partners, Inc ("GRBK"), a publicly traded company. As of June 30, 2016 , $25.2 million ( December 31, 2015 : $25.0 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 $5,000 per month (plus expenses). The agreement is automatically renewed annually until terminated by either the Company or DME Advisors for any reason with 30 days prior written notice to the other party. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Letters of Credit and Trusts At June 30, 2016 , the Company had the following letter of credit facilities, which automatically renew each year unless terminated by either party in accordance with the required notice period: Facility Termination Date Notice period required for termination ($ in thousands) Butterfield Bank (Cayman) Limited $ 100,000 June 30, 2017 90 days prior to termination date Citibank Europe plc 400,000 October 11, 2017 120 days prior to termination date JP Morgan Chase Bank N.A. 100,000 January 27, 2017 120 days prior to termination date $ 600,000 On April 4, 2016, the Company provided a notice of cancellation to terminate the Bank of America, N.A. letter of credit facility of $120.0 million . As of June 30, 2016 , an aggregate amount of $232.4 million ( December 31, 2015 : $245.6 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 June 30, 2016 , total equity securities, restricted cash, and cash and cash equivalents with a fair value in the aggregate of $262.5 million ( December 31, 2015 : $324.3 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 June 30, 2016 and December 31, 2015 . In addition to the letters of credit, the Company has established regulatory trust arrangements for certain cedents. As of June 30, 2016 , collateral of $86.0 million ( December 31, 2015 : $78.6 million ) was provided to cedents in the form of regulatory trust accounts. 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 June 30, 2016 . GRIL has entered into a lease agreement for office space in Dublin, Ireland. Under the terms of this lease agreement, GRIL is committed to minimum annual rent payments denominated in Euros approximating €0.1 million until May 2021, and adjusted to the prevailing market rates for each of the two subsequent five-year terms. GRIL has the option to terminate the lease agreement in 2021. Included in the schedule below are the net minimum lease payment obligations relating to this lease as of June 30, 2016 . The total rent expense related to leased office space for the three and six months ended June 30, 2016 was $0.1 million and $0.3 million , respectively ( 2015 : $0.1 million and $0.3 million , respectively). 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 June 30, 2016 , the Company had commitments to invest an additional $9.6 million ( December 31, 2015 : $6.1 million ) in private equity investments. Included in the schedule below are the minimum payment obligations relating to these investments as of June 30, 2016 . Schedule of Commitments and Contingencies The following is a schedule of future minimum payments required under the above commitments: 2016 2017 2018 2019 2020 Thereafter Total ($ in thousands) Operating lease obligations $ 276 $ 552 $ 319 $ 86 $ 86 $ 32 $ 1,351 Private equity and limited partnerships (1) 9,618 — — — — — 9,618 $ 9,894 $ 552 $ 319 $ 86 $ 86 $ 32 $ 10,969 (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, 2016 . 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 | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30 Six months ended June 30 2016 2015 2016 2015 ($ in thousands) ($ in thousands) Property Aviation $ 221 0.2 % $ 137 0.1 % $ 435 0.2 % $ 403 0.2 % Commercial 4,840 5.2 3,254 3.5 10,477 4.0 9,703 4.4 Energy 327 0.4 68 0.1 2,095 0.8 1,738 0.8 Motor physical damage 8,735 9.5 8,049 8.6 18,100 7.0 15,642 7.0 Personal (1) (12,784 ) (13.9 ) 4,900 5.3 13,864 5.4 26,916 12.1 Total Property 1,339 1.5 16,408 17.6 44,971 17.4 54,402 24.5 Casualty General liability 10,585 11.5 2,306 2.5 18,996 7.3 8,704 3.9 Marine liability 2,164 2.3 1,488 1.6 5,816 2.2 5,422 2.4 Motor liability 51,144 55.4 44,894 48.3 100,712 38.9 88,225 39.6 Professional liability 12,173 13.2 12,745 13.7 26,063 10.1 27,804 12.5 Total Casualty 76,066 82.4 61,433 66.1 151,587 58.5 130,155 58.4 Specialty Financial 4,719 5.1 2,020 2.2 20,397 7.9 3,576 1.6 Health 6,522 7.1 11,459 12.3 33,717 13.0 32,140 14.4 Workers’ compensation 3,591 3.9 1,670 1.8 8,357 3.2 2,399 1.1 Total Specialty 14,832 16.1 15,149 16.3 62,471 24.1 38,115 17.1 $ 92,237 100.0 % $ 92,990 100.0 % $ 259,029 100.0 % $ 222,672 100.0 % (1) The negative balance represents reversal of premiums due to premium adjustments, termination of contracts or premium returned upon novation or commutation of contracts. Gross Premiums Written by Geographic Area of Risks Insured Three months ended June 30 Six months ended June 30 2016 2015 2016 2015 ($ in thousands) ($ in thousands) U.S. and Caribbean $ 61,517 66.7 % $ 74,164 79.8 % $ 192,261 74.2 % $ 168,560 75.7 % Worldwide (1) 29,309 31.8 17,065 18.3 63,667 24.6 50,369 22.6 Europe 1,411 1.5 1,203 1.3 3,321 1.3 3,136 1.4 Asia (2) — — 558 0.6 (220 ) (0.1 ) 607 0.3 $ 92,237 100.0 % $ 92,990 100.0 % $ 259,029 100.0 % $ 222,672 100.0 % (1) "Worldwide" is comprised of contracts that reinsure risks in more than one geographic area and do not specifically exclude the U.S. (2) The negative balance represents reversal of premiums due to premium adjustments, termination of contracts or premium returned upon novation or commutation of contracts. |
SIGNIFICANT ACCOUNTING POLICI16
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of condensed 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 derivatives. Additionally, restricted cash and cash equivalent balances are held to collateralize regulatory trusts and letters of credit issued to cedents (see Notes 4 and 8 ). The amount of cash encumbered varies depending on the market value of the securities sold, not yet purchased, and the collateral required by the cedents in the form of trust accounts and letters of credit. In addition, derivative counterparties require cash collateral to support the current value of any amounts that may be due to the counterparty based on the value of the underlying financial instrument. |
Premium Revenue Recognition | Premium Revenue Recognition The Company accounts for reinsurance contracts in accordance with U.S. GAAP. In the event that a reinsurance contract does not transfer sufficient risk, deposit accounting is used and the contract is reported as a deposit liability. The Company writes excess of loss contracts as well as quota share contracts. The Company estimates the ultimate premiums for the entire contract period. These estimates are based on information received from the ceding companies and estimates from actuarial pricing models used by the Company. For excess of loss contracts, the total ultimate estimated premiums are recorded as premiums written at the inception of the contract. For quota share contracts, the premiums are recorded as written based on cession statements from cedents which typically are received monthly or quarterly depending on the terms specified in each contract. For any reporting lag, premiums written are estimated based on the portion of the ultimate estimated premiums relating to the risks underwritten during the lag period. Premium estimates are reviewed by management at least quarterly. Such review includes a comparison of actual reported premiums to expected ultimate premiums along with a review of the aging and collection of premium estimates. Based on management’s review, the appropriateness of the premium estimates is evaluated, and any adjustments to these estimates are recorded in the period in which they are determined. Changes in premium estimates, including premium receivable on both excess of loss and quota share contracts, are expected and may result in significant adjustments in any period. A significant portion of amounts included in reinsurance balances receivable represent estimated premiums written, net of commissions and brokerage, and are not currently due based on the terms of the underlying contracts. Certain contracts allow for reinstatement premiums in the event of a full limit loss prior to the expiry of a contract. A reinstatement premium is not due until there is a full limit loss event and therefore, in accordance with U.S. GAAP, the Company records a reinstatement premium as written only in the event that a client incurs a full limit loss on the contract and the contract allows for a reinstatement of coverage upon payment of an additional premium. For catastrophe contracts which contractually require the payment of a reinstatement premium equal to or greater than the original premium upon the occurrence of a full limit loss, the reinstatement premiums are earned over the original contract period. Reinstatement premiums that are contractually calculated on a pro-rata basis of the original premiums, are earned over the remaining coverage period. For additional premiums which are due on a contract that has no remaining coverage period, the additional premiums are earned in full when due. Certain contracts may provide for a penalty to be paid if the contract is terminated and canceled prior to its expiration term. Cancellation penalties are recognized in the period the notice of cancellation is received and are recorded in the consolidated statements of income under "other income (expense), net". Premiums written are generally recognized as earned over the contract period in proportion to the period of risk covered. Unearned premiums consist of the unexpired portion of reinsurance provided. |
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 June 30, 2016 and December 31, 2015 , 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. Amounts paid by the Company for retroactive reinsurance that meets the conditions for reinsurance accounting are reported as loss and loss adjustment expenses recoverable to the extent those amounts do not exceed the associated liabilities. If the amounts paid for retroactive reinsurance exceed the liabilities, the Company increases the related liabilities, at the time the reinsurance contract is effective, and the excess is charged to net income as losses incurred. If the liabilities exceed the amounts paid, the recoverable balance is increased to reflect the difference, and the resulting gain is deferred and amortized over the estimated loss payout period. Changes in the estimated amount of liabilities relating to the underlying reinsured contracts are recognized in net income in the period of the change. |
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 in accordance with the terms of the note. For notes receivable placed on non-accrual status, the notes are recorded excluding any accrued interest amount. 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 that does not meet the conditions for reinsurance accounting. 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 certain private equity fund investments the Company has elected to measure the fair value using the net asset value practical expedient allowed under U.S. GAAP, and accordingly these investments are not classified as Level 1, 2 or 3 in the fair value hierarchy. 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). |
Comprehensive Income (Loss) | Comprehensive Income (Loss) The Company has no 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. The Company adopted ASU 2015-07 during the first quarter of 2016. 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 was 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 those 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 interim and annual periods thereafter. In January 2016, the FASB issued ASU 2016-01, "Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities" ("ASU 2016-01") . The new guidance is intended to improve the recognition and measurement of financial instruments. ASU 2016-01, among other things, requires equity investments to be measured at fair value with changes in fair value recognized in net income or loss; requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; and requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset. ASU 2016-01 affects public and private companies, not-for-profit organizations, and employee benefit plans that hold financial assets or owe financial liabilities. The new guidance is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is in the process of evaluating the impact of adopting ASU 2016-01 on the Company's consolidated financial statements. However, the adoption of this guidance is not expected to have a significant impact on the Company's net income or loss or retained earnings since the Company's investments are currently classified as "trading" and the unrealized gains and losses are already recognized in net income or loss. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)" ("ASU 2016-02") . Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. ASU 2016-02 is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted for any organization in any interim or annual period. The Company is in the process of evaluating the impact of adopting ASU 2016-02 on the Company's consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09") . ASU 2016-09 is intended to improve the accounting for employee share-based payments and affects all organizations that issue share-based payment awards to their employees. Several aspects of the accounting for share-based payment award transactions are simplified, including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. The amendments are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any organization in any interim or annual period. The Company is in the process of evaluating the impact of the requirements of ASU 2016-09 on the Company's disclosures. |
SIGNIFICANT ACCOUNTING POLICI17
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Weighted Average Number of Shares | Three months ended June 30 Six months ended June 30 2016 2015 2016 2015 Weighted average shares outstanding - basic 37,281,392 37,303,265 37,194,428 37,168,279 Effect of dilutive employee and director share-based awards — — — — Weighted average shares outstanding - diluted 37,281,392 37,303,265 37,194,428 37,168,279 Anti-dilutive stock options outstanding 435,991 71,821 435,991 71,821 Participating securities excluded from calculation of loss per share 371,642 310,193 371,642 310,193 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016 : Fair value measurements as of June 30, 2016 Quoted prices in Significant other Significant Total Assets: ($ in thousands) Debt instruments $ — $ 93,307 $ 586 $ 93,893 Listed equity securities 891,952 7,952 — 899,904 Commodities 158,004 — — 158,004 Private and unlisted equity securities — — 5,987 5,987 Private equity funds measured at net asset value (1) 12,679 Total investments $ 1,049,956 $ 101,259 $ 6,573 $ 1,170,467 Financial contracts receivable $ 15 $ 23,710 $ — $ 23,725 Liabilities: Listed equity securities, sold not yet purchased $ (714,535 ) $ — $ — $ (714,535 ) Debt instruments, sold not yet purchased — (83,238 ) — (83,238 ) Securities sold, not yet purchased, at fair value $ (714,535 ) $ (83,238 ) $ — $ (797,773 ) Financial contracts payable $ — $ (5,290 ) $ — $ (5,290 ) (1) Investments measured at fair value using the net asset value practical expedient have not been classified in the fair value hierarchy. The fair value amounts are presented in the above table to facilitate reconciliation to the amounts presented in the condensed consolidated balance sheets. The following table presents the Company’s investments, categorized by the level of the fair value hierarchy as of December 31, 2015 : Fair value measurements as of December 31, 2015 Quoted prices in Significant other Significant Total Assets: ($ in thousands) Debt instruments $ — $ 38,582 $ 505 $ 39,087 Listed equity securities 900,369 5,625 — 905,994 Commodities 98,046 — — 98,046 Private and unlisted equity securities — — 8,452 8,452 Private equity funds measured at net asset value (1) 12,585 $ 998,415 $ 44,207 $ 8,957 $ 1,064,164 Financial contracts receivable $ 20 $ 13,195 $ — $ 13,215 Liabilities: Listed equity securities, sold not yet purchased $ (808,481 ) $ — $ — $ (808,481 ) Debt instruments, sold not yet purchased — (74,425 ) — (74,425 ) Securities sold, not yet purchased, at fair value $ (808,481 ) $ (74,425 ) $ — $ (882,906 ) Financial contracts payable $ (488 ) $ (27,757 ) $ — $ (28,245 ) (1) Investments measured at fair value using the net asset value practical expedient have not been classified in the fair value hierarchy. The fair value amounts are presented in the above table to facilitate reconciliation to the amounts presented in the condensed consolidated balance sheets. |
Fair Value Measurements Using Significant Unobservable Inputs | The following table presents the reconciliation of the balances for all investments measured at fair value using significant unobservable inputs (Level 3) for the three and six months ended June 30, 2015 : Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Three months ended June 30, 2015 Assets Liabilities Debt instruments Private and unlisted equity securities (1) Financial contracts receivable Listed equity securities Total Financial contracts payable ($ in thousands) Beginning balance $ 22,259 $ 6,449 $ 1,763 $ — $ 30,471 $ — Purchases — — — — — — Sales — — — — — — Issuances — — — — — — Settlements — — — — — — Total realized and unrealized gains (losses) and amortization included in earnings, net (78 ) — (583 ) — (661 ) — Transfers into Level 3 — — 2,536 5,189 7,725 8,835 Transfers out of Level 3 — — — — — — Ending balance $ 22,181 $ 6,449 $ 3,716 $ 5,189 $ 37,535 $ 8,835 (1) Restated to exclude investments measured at fair value using the net asset value practical expedient which are no longer classified in the fair value hierarchy. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Six months ended June 30, 2015 Assets Liabilities Debt instruments Private and unlisted equity securities (1) Financial contracts receivable Listed equity securities Total Financial contracts payable ($ in thousands) Beginning balance $ 22,259 $ 6,449 $ — $ — $ 28,708 $ — Purchases — 2,340 — 2,340 — Sales — — — — — Issuances — — — — — — Settlements — — — — — — Total realized and unrealized gains (losses) and amortization included in earnings, net (78 ) (1,160 ) — (1,238 ) — Transfers into Level 3 — — 2,536 5,189 7,725 8,835 Transfers out of Level 3 — — — — — — Ending balance $ 22,181 $ 6,449 $ 3,716 $ 5,189 $ 37,535 $ 8,835 (1) Restated to exclude investments measured at fair value using the net asset value practical expedient which are no longer classified in the fair value hierarchy. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Six months ended June 30, 2016 Assets Debt instruments Private and unlisted equity securities Total ($ in thousands) Beginning balance $ 505 $ 8,452 $ 8,957 Purchases — — — Sales — (2,539 ) (2,539 ) Issuances — — — Settlements — — — Total realized and unrealized gains (losses) and amortization included in earnings, net 81 74 155 Transfers into Level 3 — — — Transfers out of Level 3 — — — Ending balance $ 586 $ 5,987 $ 6,573 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 six months ended June 30, 2016 : Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Three months ended June 30, 2016 Assets Debt instruments Private and unlisted equity securities Total ($ in thousands) Beginning balance $ 496 $ 5,931 $ 6,427 Purchases — — — Sales — — — Issuances — — — Settlements — — — Total realized and unrealized gains (losses) and amortization included in earnings, net 90 56 146 Transfers into Level 3 — — — Transfers out of Level 3 — — — Ending balance $ 586 $ 5,987 $ 6,573 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Six months ended June 30, 2016 Assets Debt instruments Private and unlisted equity securities Total ($ in thousands) Beginning balance $ 505 $ 8,452 $ 8,957 Purchases — — — Sales — (2,539 ) (2,539 ) Issuances — — — Settlements — — — Total realized and unrealized gains (losses) and amortization included in earnings, net 81 74 155 Transfers into Level 3 — — — Transfers out of Level 3 — — — Ending balance $ 586 $ 5,987 $ 6,573 |
Maturity Distribution for Debt Instruments | The maturity distribution for debt instruments held at June 30, 2016 and December 31, 2015 was as follows: June 30, 2016 December 31, 2015 Cost/ Fair Cost/ Fair ($ in thousands) Within one year $ — $ — $ — $ — From one to five years 11,151 6,725 4,202 4,129 From five to ten years 26,230 27,702 18,840 14,780 More than ten years 55,591 59,466 22,429 20,178 $ 92,972 $ 93,893 $ 45,471 $ 39,087 |
Other Investments | At June 30, 2016 , the following securities were included in other investments: Cost Unrealized Unrealized Fair ($ in thousands) Commodities $ 130,671 $ 27,333 $ — $ 158,004 Private and unlisted equity securities 14,678 3,989 (1 ) 18,666 $ 145,349 $ 31,322 $ (1 ) $ 176,670 At December 31, 2015 , the following securities were included in other investments: Cost Unrealized Unrealized Fair ($ in thousands) Commodities $ 102,092 $ — $ (4,046 ) $ 98,046 Private and unlisted equity securities 18,720 3,491 (1,174 ) 21,037 $ 120,812 $ 3,491 $ (5,220 ) $ 119,083 |
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 condensed 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 June 30, 2016 , the following securities were included in investments in securities sold, not yet purchased: Proceeds Unrealized gains Unrealized losses Fair value ($ in thousands) Equities – listed $ (684,731 ) $ 42,442 $ (72,246 ) $ (714,535 ) Exchange traded funds — — — — Sovereign debt – Non U.S. (73,828 ) — (9,410 ) (83,238 ) $ (758,559 ) $ 42,442 $ (81,656 ) $ (797,773 ) At December 31, 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 $ (803,842 ) $ 102,469 $ (94,681 ) $ (796,054 ) Exchange traded funds (9,572 ) — (2,855 ) (12,427 ) Sovereign debt – Non U.S. (77,443 ) 3,018 — (74,425 ) $ (890,857 ) $ 105,487 $ (97,536 ) $ (882,906 ) |
Fair values of Financial Contracts Outstanding | At June 30, 2016 , 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 Commodity Swaps USD 55,355 $ 5,649 Put options (2) USD 44,055 2,905 Total return swaps – equities EUR/GBP/HKD/RON/USD 46,920 15,128 Warrants and rights on listed equities EUR/USD 82 43 Total financial contracts receivable, at fair value $ 23,725 Financial contracts payable Forwards KRW 2,752 $ (44 ) Total return swaps – equities EUR/USD 16,829 (5,246 ) Total financial contracts payable, at fair value $ (5,290 ) (1) USD = US Dollar; EUR = Euro; GBP = British Pound; HKD = Hong Kong Dollar; KRW = Korean Won; RON = Romanian New Leu. (2) Includes options on the Japanese Yen and the Chinese Yuan, denominated in U.S. dollars. At December 31, 2015 , the fair values of financial contracts outstanding were as follows: Financial Contracts Listing currency (1) Notional amount of Fair value of net assets ($ in thousands) Financial contracts receivable Call options (2) USD 47,259 $ 657 Put options (3) USD 147,326 8,790 Total return swaps – equities EUR/GBP/USD 50,205 3,748 Warrants and rights on listed equities EUR 59 20 Total financial contracts receivable, at fair value $ 13,215 Financial contracts payable Call options USD 2,601 $ (64 ) Commodity Swaps USD 42,160 (12,784 ) Forwards KRW 2,908 (22 ) Futures USD 21,195 (488 ) Total return swaps – equities EUR/GBP/HKD/RON/MXN/USD 71,874 (14,887 ) Total financial contracts payable, at fair value $ (28,245 ) (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 interest rate futures relating to U.S. dollar LIBOR interest rates. (3) 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 six months ended June 30, 2016 and 2015 , 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 Three months ended June 30 Six months ended June 30 2016 2015 2016 2015 ($ in thousands) Credit default swaps, purchased – corporate debt Net investment income (loss) $ — $ (50 ) $ — $ (105 ) Credit default swaps, purchased – sovereign debt Net investment income (loss) — (30 ) — (61 ) Forwards Net investment income (loss) 13 97 (68 ) 233 Futures Net investment income (loss) 309 (151 ) 1,293 (2,228 ) Interest rate swaps Net investment income (loss) — (242 ) — (242 ) Options, warrants, and rights Net investment income (loss) 555 (7,014 ) (2,248 ) (9,488 ) Commodity swaps Net investment income (loss) 5,846 (730 ) 281 (730 ) Total return swaps – equities Net investment income (loss) 6,885 (80 ) 13,804 4,143 Weather derivative swap Other income (expense), net — (583 ) — (1,160 ) Total $ 13,608 $ (8,783 ) $ 13,062 $ (9,638 ) |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | For the three and six months ended June 30, 2016 , the Company’s volume of derivative activities (based on notional amounts) was as follows: 2016 Three months ended June 30 Six months ended June 30 Derivatives not designated as hedging instruments (notional amounts) Entered Exited Entered Exited ($ in thousands) Forwards $ — $ 115 $ — $ 178 Futures — 25,456 174,721 195,166 Options, warrants and rights (1) 20,206 83,051 153,539 258,702 Commodity swaps — 9,651 75,566 64,025 Total return swaps 567 20,994 2,050 49,265 Total $ 20,773 $ 139,267 $ 405,876 $ 567,336 (1) Exited amount excludes derivatives which expired or were exercised during the period. For the three and six months ended June 30, 2015 , the Company’s volume of derivative activities (based on notional amounts) was as follows: 2015 Three months ended June 30 Six months ended June 30 Derivatives not designated as hedging instruments (notional amounts) Entered Exited Entered Exited ($ in thousands) Forwards $ — $ 1,368 $ — $ 6,093 Futures — 73,785 84,989 130,533 Interest rate swaps 6,558,000 — 6,558,000 — Options, warrants and rights (1) 4,710,216 8,418,787 4,710,216 8,488,564 Commodity swaps 75,994 — 75,994 — Total return swaps 6,190 17,243 21,090 56,991 Weather derivative swap — — 2,340 — Total $ 11,350,400 $ 8,511,183 $ 11,452,629 $ 8,682,181 (1) Exited amount excludes derivatives which expired or were exercised during the period. |
Offsetting assets and liabilities | As of June 30, 2016 , the gross and net amounts of derivative instruments and the cash collateral applicable to derivative instruments were as follows: June 30, 2016 (i) (ii) (iii) = (i) - (ii) (iv) Gross amounts not offset in the balance sheet (v) = (iii) + (iv) 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 $ 23,725 $ — $ 23,725 $ (2,683 ) $ (11,850 ) $ 9,192 Financial contracts payable (5,290 ) — (5,290 ) 2,683 2,607 — As of December 31, 2015 , the gross and net amounts of derivative instruments and the cash collateral applicable to derivative instruments were as follows: December 31, 2015 (i) (ii) (iii) = (i) - (ii) (iv) Gross amounts not offset in the balance sheet (v) = (iii) + (iv) 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 $ 13,215 $ — $ 13,215 $ (8,937 ) $ (2,036 ) $ 2,242 Financial contracts payable (28,245 ) — (28,245 ) 8,937 19,308 — |
Debt instruments | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |
Trading securities, Debt and Equities | Debt instruments, trading At June 30, 2016 , the following investments were included in debt instruments: Cost/amortized cost Unrealized gains Unrealized losses Fair ($ in thousands) Corporate debt – U.S. $ 36,223 $ 5,159 $ (6,405 ) $ 34,977 Corporate debt – Non U.S. 2,109 — (2,073 ) 36 Sovereign debt – U.S. 36,952 1,670 — 38,622 Sovereign debt – Non U.S. 17,688 2,570 — 20,258 Total debt instruments $ 92,972 $ 9,399 $ (8,478 ) $ 93,893 At December 31, 2015 , the following investments were included in debt instruments: Cost/amortized cost Unrealized gains Unrealized losses Fair ($ in thousands) Corporate debt – U.S. $ 25,674 $ 155 $ (5,519 ) $ 20,310 Corporate debt – Non U.S. 2,109 — (1,795 ) 314 Sovereign debt – Non U.S. 17,688 1,225 (450 ) 18,463 Total debt instruments $ 45,471 $ 1,380 $ (7,764 ) $ 39,087 |
Total equity securities | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |
Trading securities, Debt and Equities | At June 30, 2016 , the following long positions were included in equity securities, trading: Cost Unrealized Unrealized Fair ($ in thousands) Equities – listed $ 930,113 $ 70,718 $ (124,230 ) $ 876,601 Exchange traded funds 17,986 5,317 — 23,303 Total equity securities $ 948,099 $ 76,035 $ (124,230 ) $ 899,904 At December 31, 2015 , the following long positions were included in equity securities, trading: Cost Unrealized Unrealized Fair ($ in thousands) Equities – listed $ 1,011,424 $ 67,114 $ (187,885 ) $ 890,653 Exchange traded funds 31,570 — (16,229 ) 15,341 Total equity securities $ 1,042,994 $ 67,114 $ (204,114 ) $ 905,994 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation, Stock Options, Activity | Employee and director stock option activity during the six months ended June 30, 2016 was as follows: Number of Weighted Weighted Balance at December 31, 2015 906,991 $ 19.78 $ 8.53 Granted — — — Exercised (261,000 ) 12.17 6.23 Forfeited — — — Expired — — — Balance at June 30, 2016 645,991 $ 22.85 $ 9.46 |
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 six months ended June 30, 2016 was as follows: Number of Weighted Balance at December 31, 2015 307,013 $ 29.74 Granted 191,426 21.54 Vested (122,620 ) 25.66 Forfeited (4,177 ) 32.62 Balance at June 30, 2016 371,642 $ 26.83 |
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 six months ended June 30, 2016 was as follows: Number of Weighted Balance at December 31, 2015 22,170 $ 30.55 Granted 7,444 21.56 Vested (1,205 ) 24.38 Forfeited (11,881 ) 29.60 Balance at June 30, 2016 16,528 $ 27.64 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Letters of Credit Facilities | At June 30, 2016 , 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) Butterfield Bank (Cayman) Limited $ 100,000 June 30, 2017 90 days prior to termination date Citibank Europe plc 400,000 October 11, 2017 120 days prior to termination date JP Morgan Chase Bank N.A. 100,000 January 27, 2017 120 days prior to termination date $ 600,000 |
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: 2016 2017 2018 2019 2020 Thereafter Total ($ in thousands) Operating lease obligations $ 276 $ 552 $ 319 $ 86 $ 86 $ 32 $ 1,351 Private equity and limited partnerships (1) 9,618 — — — — — 9,618 $ 9,894 $ 552 $ 319 $ 86 $ 86 $ 32 $ 10,969 (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, 2016 . |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30 Six months ended June 30 2016 2015 2016 2015 ($ in thousands) ($ in thousands) Property Aviation $ 221 0.2 % $ 137 0.1 % $ 435 0.2 % $ 403 0.2 % Commercial 4,840 5.2 3,254 3.5 10,477 4.0 9,703 4.4 Energy 327 0.4 68 0.1 2,095 0.8 1,738 0.8 Motor physical damage 8,735 9.5 8,049 8.6 18,100 7.0 15,642 7.0 Personal (1) (12,784 ) (13.9 ) 4,900 5.3 13,864 5.4 26,916 12.1 Total Property 1,339 1.5 16,408 17.6 44,971 17.4 54,402 24.5 Casualty General liability 10,585 11.5 2,306 2.5 18,996 7.3 8,704 3.9 Marine liability 2,164 2.3 1,488 1.6 5,816 2.2 5,422 2.4 Motor liability 51,144 55.4 44,894 48.3 100,712 38.9 88,225 39.6 Professional liability 12,173 13.2 12,745 13.7 26,063 10.1 27,804 12.5 Total Casualty 76,066 82.4 61,433 66.1 151,587 58.5 130,155 58.4 Specialty Financial 4,719 5.1 2,020 2.2 20,397 7.9 3,576 1.6 Health 6,522 7.1 11,459 12.3 33,717 13.0 32,140 14.4 Workers’ compensation 3,591 3.9 1,670 1.8 8,357 3.2 2,399 1.1 Total Specialty 14,832 16.1 15,149 16.3 62,471 24.1 38,115 17.1 $ 92,237 100.0 % $ 92,990 100.0 % $ 259,029 100.0 % $ 222,672 100.0 % (1) The negative balance represents reversal of premiums due to premium adjustments, termination of contracts or premium returned upon novation or commutation of contracts. |
Gross Premiums Written by Geographic Area of Risks Insured | Gross Premiums Written by Geographic Area of Risks Insured Three months ended June 30 Six months ended June 30 2016 2015 2016 2015 ($ in thousands) ($ in thousands) U.S. and Caribbean $ 61,517 66.7 % $ 74,164 79.8 % $ 192,261 74.2 % $ 168,560 75.7 % Worldwide (1) 29,309 31.8 17,065 18.3 63,667 24.6 50,369 22.6 Europe 1,411 1.5 1,203 1.3 3,321 1.3 3,136 1.4 Asia (2) — — 558 0.6 (220 ) (0.1 ) 607 0.3 $ 92,237 100.0 % $ 92,990 100.0 % $ 259,029 100.0 % $ 222,672 100.0 % (1) "Worldwide" is comprised of contracts that reinsure risks in more than one geographic area and do not specifically exclude the U.S. (2) The negative balance represents reversal of premiums due to premium adjustments, termination of contracts or premium returned upon novation or commutation of contracts. |
SIGNIFICANT ACCOUNTING POLICI22
SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Accounting Policies [Line Items] | |||||
Premium deficiency loss | $ 0 | $ 0 | $ 0 | ||
Profit commission reserves | 12,200,000 | 12,200,000 | 12,200,000 | ||
Profit commission expense | 1,500,000 | $ 1,100,000 | 2,600,000 | $ 1,600,000 | |
Notes receivable balance related to note placed on non-accrual status | 20,900,000 | 20,900,000 | 23,000,000 | ||
Accrued interest | $ 0 | $ 0 | $ 0 |
SIGNIFICANT ACCOUNTING POLICI23
SIGNIFICANT ACCOUNTING POLICIES Earnings Per Share Reconciliation (Details) - shares | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||
Weighted average shares outstanding - basic | 37,281,392 | 37,303,265 | 37,303,265 | 37,194,428 | 37,168,279 |
Effect of dilutive employee and director share-based awards | 0 | 0 | 0 | 0 | |
Weighted average shares outstanding - diluted | 37,281,392 | 37,303,265 | 37,303,265 | 37,194,428 | 37,168,279 |
Stock Options | |||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||
Anti-dilutive stock or options outstanding | 435,991 | 71,821 | 435,991 | 71,821 | |
Restricted stock | |||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||
Anti-dilutive stock or options outstanding | 371,642 | 310,193 | 371,642 | 310,193 |
SIGNIFICANT ACCOUNTING POLICI24
SIGNIFICANT ACCOUNTING POLICIES Income taxes (Details) | 6 Months Ended |
Jun. 30, 2016 | |
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 | Jun. 30, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets: | $ 1,170,467 | $ 1,064,164 | |
Debt instruments | 93,893 | 39,087 | |
Listed equity securities | 899,904 | 905,994 | |
Commodities | 158,004 | 98,046 | |
Private and unlisted equity securities | 5,987 | 8,452 | |
Fair value of investments in private equity funds | [1] | 12,679 | 12,585 |
Financial contracts receivable | 23,725 | 13,215 | |
Liabilities: | (797,773) | (882,906) | |
Listed equity securities, sold not yet purchased | (714,535) | (808,481) | |
Debt instruments, sold not yet purchased | (83,238) | (74,425) | |
Financial contracts payable | (5,290) | (28,245) | |
Quoted prices in active markets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets: | 1,049,956 | 998,415 | |
Debt instruments | 0 | 0 | |
Listed equity securities | 891,952 | 900,369 | |
Commodities | 158,004 | 98,046 | |
Private and unlisted equity securities | 0 | 0 | |
Financial contracts receivable | 15 | 20 | |
Liabilities: | (714,535) | (808,481) | |
Listed equity securities, sold not yet purchased | (714,535) | (808,481) | |
Debt instruments, sold not yet purchased | 0 | 0 | |
Financial contracts payable | 0 | (488) | |
Significant other observable inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets: | 101,259 | 44,207 | |
Debt instruments | 93,307 | 38,582 | |
Listed equity securities | 7,952 | 5,625 | |
Commodities | 0 | 0 | |
Private and unlisted equity securities | 0 | 0 | |
Financial contracts receivable | 23,710 | 13,195 | |
Liabilities: | (83,238) | (74,425) | |
Listed equity securities, sold not yet purchased | 0 | 0 | |
Debt instruments, sold not yet purchased | (83,238) | (74,425) | |
Financial contracts payable | (5,290) | (27,757) | |
Significant unobservable inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets: | 6,573 | 8,957 | |
Debt instruments | 586 | 505 | |
Listed equity securities | 0 | 0 | |
Commodities | 0 | 0 | |
Private and unlisted equity securities | 5,987 | 8,452 | |
Financial contracts receivable | 0 | 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 | |
[1] | Investments measured at fair value using the net asset value practical expedient have not been classified in the fair value hierarchy. The fair value amounts are presented in the above table to facilitate reconciliation to the amounts presented in the condensed consolidated balance sheets. |
FINANCIAL INSTRUMENTS Fair Valu
FINANCIAL INSTRUMENTS Fair Value Hierarchy- Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||||||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | $ 6,573,000 | $ 37,535,000 | $ 6,573,000 | $ 37,535,000 | $ 6,427,000 | $ 8,957,000 | $ 30,471,000 | $ 28,708,000 | |||||
Fair value of investments in private equity funds | [1] | 12,679,000 | 12,679,000 | 12,585,000 | |||||||||
Transfers out of Level 3 | 0 | 0 | 0 | 0 | |||||||||
Transfers from Level 2 to Level 1 due to lock-up period restriction expiration | 0 | 0 | 0 | 0 | |||||||||
Total realized and unrealized gains (losses) and amortization included in earnings, net | 146,000 | (661,000) | 155,000 | (1,238,000) | |||||||||
Transfers into Level 3 | 0 | 7,725,000 | 0 | 7,725,000 | |||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 0 | 0 | 0 | 2,340,000 | |||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 0 | 0 | (2,539,000) | 0 | |||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Issuances | 0 | 0 | 0 | 0 | |||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | 0 | 0 | 0 | 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 | ||||||||||||
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 | ||||||||||||
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 | 0 | (100,000) | (1,400,000) | (100,000) | |||||||||
Change in unrealized gains | 100,000 | (400,000) | 1,600,000 | (200,000) | |||||||||
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 | 0 | (600,000) | 0 | (1,200,000) | |||||||||
Debt Securities [Member] | |||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 586,000 | 22,181,000 | 586,000 | 22,181,000 | 496,000 | 505,000 | 22,259,000 | 22,259,000 | |||||
Transfers out of Level 3 | 0 | 0 | 0 | 0 | |||||||||
Total realized and unrealized gains (losses) and amortization included in earnings, net | 90,000 | (78,000) | 81,000 | (78,000) | |||||||||
Transfers into Level 3 | 0 | 0 | 0 | 0 | |||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 0 | 0 | 0 | 0 | |||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 0 | 0 | 0 | 0 | |||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Issuances | 0 | 0 | 0 | 0 | |||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | 0 | 0 | 0 | 0 | |||||||||
Private equity and limited partnerships (1) | |||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 5,987,000 | 6,449,000 | [2] | 5,987,000 | 6,449,000 | [2] | $ 5,931,000 | $ 8,452,000 | 6,449,000 | [2] | 6,449,000 | [2] | |
Transfers out of Level 3 | 0 | 0 | 0 | 0 | |||||||||
Total realized and unrealized gains (losses) and amortization included in earnings, net | 56,000 | 0 | 74,000 | ||||||||||
Transfers into Level 3 | 0 | 0 | 0 | 0 | |||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 0 | 0 | 0 | ||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 0 | 0 | (2,539,000) | ||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Issuances | 0 | 0 | 0 | 0 | |||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | 0 | 0 | 0 | 0 | |||||||||
Equity Securities [Member] | |||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 5,189,000 | 5,189,000 | 0 | 0 | |||||||||
Transfers out of Level 3 | 0 | 0 | |||||||||||
Total realized and unrealized gains (losses) and amortization included in earnings, net | 0 | 0 | |||||||||||
Transfers into Level 3 | 5,189,000 | 5,189,000 | |||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 0 | 0 | |||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 0 | 0 | |||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Issuances | 0 | 0 | |||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | 0 | 0 | |||||||||||
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 | 0 | 0 | |||||||||||
Transfers into Level 3 | 0 | 5,200,000 | 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 | 0 | 0 | |||||||||||
Financial contracts receivable | |||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 3,716,000 | 3,716,000 | 1,763,000 | 0 | |||||||||
Transfers out of Level 3 | 0 | 0 | |||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Amortization Expense Included in Earnings | 583,000 | 1,160,000 | |||||||||||
Transfers into Level 3 | 2,536,000 | 2,536,000 | |||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 0 | 2,340,000 | |||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 0 | 0 | |||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Issuances | 0 | 0 | |||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | 0 | 0 | |||||||||||
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 | 0 | 0 | |||||||||||
Transfers into Level 3 | 0 | 2,500,000 | 0 | 2,500,000 | |||||||||
Financial contracts payable | |||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | 8,835,000 | 8,835,000 | $ 0 | $ 0 | |||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3 | 0 | 0 | |||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | 0 | 0 | |||||||||||
Transfers into Level 3 | 8,835,000 | 8,835,000 | |||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases | 0 | 0 | |||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Sales | 0 | 0 | |||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Issuances | 0 | 0 | |||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements | 0 | 0 | |||||||||||
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 | $ 0 | $ 8,800,000 | |||||||||
[1] | Investments measured at fair value using the net asset value practical expedient have not been classified in the fair value hierarchy. The fair value amounts are presented in the above table to facilitate reconciliation to the amounts presented in the condensed consolidated balance sheets. | ||||||||||||
[2] | Restated to exclude investments measured at fair value using the net asset value practical expedient which are no longer classified in the fair value hierarchy. |
FINANCIAL INSTRUMENTS Level 3 r
FINANCIAL INSTRUMENTS Level 3 reconciliation (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Beginning balance | $ 6,427,000 | $ 30,471,000 | $ 8,957,000 | $ 28,708,000 | ||
Purchases | 0 | 0 | 0 | 2,340,000 | ||
Sales | 0 | 0 | (2,539,000) | 0 | ||
Issuances | 0 | 0 | 0 | 0 | ||
Settlements | 0 | 0 | 0 | 0 | ||
Total realized and unrealized gains (losses) and amortization included in earnings, net | 146,000 | (661,000) | 155,000 | (1,238,000) | ||
Transfers into Level 3 | 0 | 7,725,000 | 0 | 7,725,000 | ||
Transfers out of Level 3 | 0 | 0 | 0 | 0 | ||
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | 0 | 0 | 0 | 0 | ||
Ending balance | 6,573,000 | 37,535,000 | 6,573,000 | 37,535,000 | ||
Debt instruments | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Beginning balance | 496,000 | 22,259,000 | 505,000 | 22,259,000 | ||
Purchases | 0 | 0 | 0 | 0 | ||
Sales | 0 | 0 | 0 | 0 | ||
Issuances | 0 | 0 | 0 | 0 | ||
Settlements | 0 | 0 | 0 | 0 | ||
Total realized and unrealized gains (losses) and amortization included in earnings, net | 90,000 | (78,000) | 81,000 | (78,000) | ||
Transfers into Level 3 | 0 | 0 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | 0 | 0 | ||
Ending balance | 586,000 | 22,181,000 | 586,000 | 22,181,000 | ||
Private equity and limited partnerships (1) | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Beginning balance | 5,931,000 | 6,449,000 | [1] | 8,452,000 | 6,449,000 | [1] |
Purchases | 0 | 0 | 0 | |||
Sales | 0 | 0 | (2,539,000) | |||
Issuances | 0 | 0 | 0 | 0 | ||
Settlements | 0 | 0 | 0 | 0 | ||
Total realized and unrealized gains (losses) and amortization included in earnings, net | 56,000 | 0 | 74,000 | |||
Transfers into Level 3 | 0 | 0 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | 0 | 0 | ||
Ending balance | 5,987,000 | 6,449,000 | [1] | 5,987,000 | 6,449,000 | [1] |
Financial contracts receivable | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Beginning balance | 1,763,000 | 0 | ||||
Purchases | 0 | 2,340,000 | ||||
Sales | 0 | 0 | ||||
Issuances | 0 | 0 | ||||
Settlements | 0 | 0 | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Amortization Expense Included in Earnings | (583,000) | (1,160,000) | ||||
Transfers into Level 3 | 2,536,000 | 2,536,000 | ||||
Transfers out of Level 3 | 0 | 0 | ||||
Ending balance | 3,716,000 | 3,716,000 | ||||
Total equity securities | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Beginning balance | 0 | 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 | 0 | 0 | ||||
Transfers into Level 3 | 5,189,000 | 5,189,000 | ||||
Transfers out of Level 3 | 0 | 0 | ||||
Ending balance | 5,189,000 | 5,189,000 | ||||
Financial contracts payable | ||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Beginning balance | 0 | 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 | 0 | 0 | ||||
Transfers into Level 3 | 8,835,000 | 8,835,000 | ||||
Transfers out of Level 3 | 0 | 0 | ||||
Ending balance | 8,835,000 | 8,835,000 | ||||
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 | 0 | (100,000) | (1,400,000) | (100,000) | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 100,000 | (400,000) | 1,600,000 | (200,000) | ||
Other Operating Income (Expense) [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Amortization Expense Included in Earnings | 0 | 600,000 | 0 | 1,200,000 | ||
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 | |||||
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 | 0 | 5,200,000 | ||
Transfers out of Level 3 | 0 | 0 | ||||
Significant other observable inputs (Level 2) | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Transfers out of Level 3 | 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 | 0 | 2,500,000 | ||
Transfers out of Level 3 | 0 | 0 | ||||
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 | 0 | 0 | ||||
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 | $ 0 | $ 8,800,000 | ||
[1] | Restated to exclude investments measured at fair value using the net asset value practical expedient which are no longer classified in the fair value hierarchy. |
FINANCIAL INSTRUMENTS Schedul28
FINANCIAL INSTRUMENTS Schedule of Investments Included in Debt Instruments (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost/amortized cost | $ 92,972 | $ 45,471 |
Debt instruments | 93,893 | 39,087 |
Corporate debt – U.S. | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost/amortized cost | 36,223 | 25,674 |
Unrealized gains | 5,159 | 155 |
Unrealized losses | (6,405) | (5,519) |
Debt instruments | 34,977 | 20,310 |
Corporate debt – Non U.S. | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost/amortized cost | 2,109 | 2,109 |
Unrealized gains | 0 | 0 |
Unrealized losses | (2,073) | (1,795) |
Debt instruments | 36 | 314 |
Sovereign debt - U.S. | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost/amortized cost | 36,952 | |
Unrealized gains | 1,670 | |
Unrealized losses | 0 | |
Debt instruments | 38,622 | |
Sovereign debt – Non U.S. | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost/amortized cost | 17,688 | 17,688 |
Unrealized gains | 2,570 | 1,225 |
Unrealized losses | 0 | (450) |
Debt instruments | 20,258 | 18,463 |
Total debt instruments | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost/amortized cost | 92,972 | 45,471 |
Unrealized gains | 9,399 | 1,380 |
Unrealized losses | $ (8,478) | $ (7,764) |
FINANCIAL INSTRUMENTS Schedul29
FINANCIAL INSTRUMENTS Schedule of Maturity of Debt Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
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 | 11,151 | 4,202 |
Debt instruments, trading, from one to five years, fair value | 6,725 | 4,129 |
Debt instruments, trading, from five to ten years, cost | 26,230 | 18,840 |
Debt instruments, trading, from five to ten years, fair value | 27,702 | 14,780 |
Debt instruments, trading, more than ten years, cost | 55,591 | 22,429 |
Debt instruments, trading, more than ten years, fair value | 59,466 | 20,178 |
Cost/ amortized cost | 92,972 | 45,471 |
Debt instruments | $ 93,893 | $ 39,087 |
FINANCIAL INSTRUMENTS Schedul30
FINANCIAL INSTRUMENTS Schedule of Investments in Equity Securities Trading (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost/amortized cost | $ 92,972 | $ 45,471 |
Equity securities, trading, at fair value | 899,904 | 905,994 |
Equities – listed | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost/amortized cost | 930,113 | 1,011,424 |
Unrealized gains | 70,718 | 67,114 |
Unrealized losses | (124,230) | (187,885) |
Equity securities, trading, at fair value | 876,601 | 890,653 |
Exchange traded funds | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost/amortized cost | 17,986 | 31,570 |
Unrealized gains | 5,317 | 0 |
Unrealized losses | 0 | (16,229) |
Equity securities, trading, at fair value | 23,303 | 15,341 |
Total equity securities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost/amortized cost | 948,099 | 1,042,994 |
Unrealized gains | 76,035 | 67,114 |
Unrealized losses | $ (124,230) | $ (204,114) |
FINANCIAL INSTRUMENTS Schedul31
FINANCIAL INSTRUMENTS Schedule of Other Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost | $ 145,349 | $ 120,812 |
Unrealized gains | 31,322 | 3,491 |
Unrealized losses | (1) | (5,220) |
Fair value | 176,670 | 119,083 |
Commodities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost | 130,671 | 102,092 |
Unrealized gains | 27,333 | 0 |
Unrealized losses | 0 | (4,046) |
Fair value | 158,004 | 98,046 |
Private and unlisted equity securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost | 14,678 | 18,720 |
Unrealized gains | 3,989 | 3,491 |
Unrealized losses | (1) | (1,174) |
Fair value | $ 18,666 | $ 21,037 |
FINANCIAL INSTRUMENTS NAV Instr
FINANCIAL INSTRUMENTS NAV Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Fair value of investments in private equity funds | [1] | $ 12,679 | $ 12,585 |
Percentage of funds that have investment restrictions | 100.00% | ||
Private Equity Funds [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Unfunded commitments relating to private equity funds | $ 9,600 | 6,100 | |
Estimate of Fair Value Measurement [Member] | Private Equity Funds [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Fair value of investments in private equity funds | $ 12,700 | $ 12,600 | |
[1] | Investments measured at fair value using the net asset value practical expedient have not been classified in the fair value hierarchy. The fair value amounts are presented in the above table to facilitate reconciliation to the amounts presented in the condensed consolidated balance sheets. |
FINANCIAL INSTRUMENTS Investmen
FINANCIAL INSTRUMENTS Investments in Securities Sold, Not Yet Purchased (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Corporate debt – U.S. | ||
Investments Sold, Not yet Purchased [Line Items] | ||
Unrealized gains | $ 5,159 | $ 155 |
Unrealized losses | (6,405) | (5,519) |
Total equity securities | ||
Investments Sold, Not yet Purchased [Line Items] | ||
Unrealized gains | 76,035 | 67,114 |
Unrealized losses | (124,230) | (204,114) |
Exchange traded funds | ||
Investments Sold, Not yet Purchased [Line Items] | ||
Unrealized gains | 5,317 | 0 |
Unrealized losses | 0 | (16,229) |
Sovereign debt – Non U.S. | ||
Investments Sold, Not yet Purchased [Line Items] | ||
Unrealized gains | 2,570 | 1,225 |
Unrealized losses | 0 | (450) |
Securities Sold, Not yet Purchased | ||
Investments Sold, Not yet Purchased [Line Items] | ||
Proceeds | (758,559) | (890,857) |
Unrealized gains | 42,442 | 105,487 |
Unrealized losses | (81,656) | (97,536) |
Fair value | (797,773) | (882,906) |
Securities Sold, Not yet Purchased | Total equity securities | ||
Investments Sold, Not yet Purchased [Line Items] | ||
Proceeds | (684,731) | (803,842) |
Unrealized gains | 42,442 | 102,469 |
Unrealized losses | (72,246) | (94,681) |
Fair value | (714,535) | (796,054) |
Securities Sold, Not yet Purchased | Exchange traded funds | ||
Investments Sold, Not yet Purchased [Line Items] | ||
Proceeds | 0 | (9,572) |
Unrealized gains | 0 | 0 |
Unrealized losses | 0 | (2,855) |
Fair value | 0 | (12,427) |
Securities Sold, Not yet Purchased | Sovereign debt – Non U.S. | ||
Investments Sold, Not yet Purchased [Line Items] | ||
Proceeds | (73,828) | (77,443) |
Unrealized gains | 0 | 3,018 |
Unrealized losses | (9,410) | 0 |
Fair value | $ (83,238) | $ (74,425) |
FINANCIAL INSTRUMENTS Schedul34
FINANCIAL INSTRUMENTS Schedule of Fair Value of Financial Contracts Outstanding (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |||
Derivative [Line Items] | |||||
Financial contracts receivable | $ 23,725 | $ 13,215 | |||
Financial contracts payable | (5,290) | (28,245) | |||
Financial contracts receivable | |||||
Derivative [Line Items] | |||||
Financial contracts receivable | 23,725 | 13,215 | |||
Financial contracts payable | |||||
Derivative [Line Items] | |||||
Financial contracts payable | (5,290) | (28,245) | |||
Call options | Financial contracts receivable | |||||
Derivative [Line Items] | |||||
Financial contracts receivable, Notional amount of underlying instruments | [1] | 47,259 | |||
Financial contracts receivable | [1] | 657 | |||
Call options | Financial contracts payable | |||||
Derivative [Line Items] | |||||
Financial contracts payable, Notional amount of underlying instruments | 2,601 | ||||
Financial contracts payable | (64) | ||||
Commodity Swaps | Financial contracts receivable | |||||
Derivative [Line Items] | |||||
Financial contracts receivable, Notional amount of underlying instruments | 55,355 | ||||
Financial contracts receivable | 5,649 | ||||
Commodity Swaps | Financial contracts payable | |||||
Derivative [Line Items] | |||||
Financial contracts payable, Notional amount of underlying instruments | 42,160 | ||||
Financial contracts payable | (12,784) | ||||
Forwards | Financial contracts payable | |||||
Derivative [Line Items] | |||||
Financial contracts payable, Notional amount of underlying instruments | 2,752 | 2,908 | |||
Financial contracts payable | (44) | (22) | |||
Futures | Financial contracts payable | |||||
Derivative [Line Items] | |||||
Financial contracts payable, Notional amount of underlying instruments | 21,195 | ||||
Financial contracts payable | (488) | ||||
Put options (2) | Financial contracts receivable | |||||
Derivative [Line Items] | |||||
Financial contracts receivable, Notional amount of underlying instruments | 44,055 | [2] | 147,326 | [3] | |
Financial contracts receivable | 2,905 | [2] | 8,790 | [3] | |
Total return swaps – equities | Financial contracts receivable | |||||
Derivative [Line Items] | |||||
Financial contracts receivable, Notional amount of underlying instruments | 46,920 | 50,205 | |||
Financial contracts receivable | 15,128 | 3,748 | |||
Total return swaps – equities | Financial contracts payable | |||||
Derivative [Line Items] | |||||
Financial contracts payable, Notional amount of underlying instruments | 16,829 | 71,874 | |||
Financial contracts payable | (5,246) | (14,887) | |||
Warrants and rights on listed equities | Financial contracts receivable | |||||
Derivative [Line Items] | |||||
Financial contracts receivable, Notional amount of underlying instruments | 82 | 59 | |||
Financial contracts receivable | $ 43 | $ 20 | |||
[1] | Includes options on interest rate futures relating to U.S. dollar LIBOR interest rates. | ||||
[2] | Includes options on the Japanese Yen and the Chinese Yuan, denominated in U.S. dollars. | ||||
[3] | Includes options on the Japanese Yen and the Chinese Yuan, denominated in U.S. dollars. |
FINANCIAL INSTRUMENTS Schedul35
FINANCIAL INSTRUMENTS Schedule of Reported Gains and Losses on Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivatives recognized in income | $ 13,608 | $ (8,783) | $ 13,062 | $ (9,638) |
Commodity Swaps | Net investment income (loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivatives recognized in income | 5,846 | (730) | 281 | (730) |
Forwards | Net investment income (loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivatives recognized in income | 13 | 97 | (68) | 233 |
Futures | Net investment income (loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivatives recognized in income | 309 | (151) | 1,293 | (2,228) |
Interest Rate Swaps | Net investment income (loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivatives recognized in income | 0 | (242) | 0 | (242) |
Options, warrants, and rights | Net investment income (loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivatives recognized in income | 555 | (7,014) | (2,248) | (9,488) |
Total return swaps – equities | Net investment income (loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivatives recognized in income | 6,885 | (80) | 13,804 | 4,143 |
Weather derivative swap | Other income (expense), net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivatives recognized in income | 0 | (583) | 0 | (1,160) |
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 | 0 | (50) | 0 | (105) |
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 | $ 0 | $ (30) | $ 0 | $ (61) |
FINANCIAL INSTRUMENTS Schedul36
FINANCIAL INSTRUMENTS Schedule of Volumes of Derivative Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Derivatives not designated as hedging instruments (notional amounts) | |||||
Derivative [Line Items] | |||||
Entered | $ 20,773 | $ 11,350,400 | $ 405,876 | $ 11,452,629 | |
Exited | 139,267 | 8,511,183 | 567,336 | 8,682,181 | |
Forwards | Derivatives not designated as hedging instruments (notional amounts) | |||||
Derivative [Line Items] | |||||
Entered | 0 | 0 | 0 | 0 | |
Exited | 115 | 1,368 | 178 | 6,093 | |
Futures | |||||
Derivative [Line Items] | |||||
Entered | 0 | ||||
Exited | 73,785 | ||||
Futures | Derivatives not designated as hedging instruments (notional amounts) | |||||
Derivative [Line Items] | |||||
Entered | 0 | 174,721 | 84,989 | ||
Exited | 25,456 | 195,166 | 130,533 | ||
Interest Rate Swaps | Derivatives not designated as hedging instruments (notional amounts) | |||||
Derivative [Line Items] | |||||
Entered | 6,558,000 | 6,558,000 | |||
Exited | 0 | 0 | |||
Options, warrants and rights (1) | |||||
Derivative [Line Items] | |||||
Entered | 4,710,216 | ||||
Exited | [1] | 8,418,787 | |||
Options, warrants and rights (1) | Derivatives not designated as hedging instruments (notional amounts) | |||||
Derivative [Line Items] | |||||
Entered | 20,206 | 153,539 | 4,710,216 | ||
Exited | [1] | 83,051 | 258,702 | 8,488,564 | |
Commodity Swaps | Derivatives not designated as hedging instruments (notional amounts) | |||||
Derivative [Line Items] | |||||
Entered | 0 | 75,994 | 75,566 | 75,994 | |
Exited | 9,651 | 0 | 64,025 | 0 | |
Total return swaps – equities | Derivatives not designated as hedging instruments (notional amounts) | |||||
Derivative [Line Items] | |||||
Entered | 567 | 6,190 | 2,050 | 21,090 | |
Exited | $ 20,994 | 17,243 | $ 49,265 | 56,991 | |
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 derivatives which expired or were exercised during the period. |
FINANCIAL INSTRUMENTS Schedul37
FINANCIAL INSTRUMENTS Schedule of Gross and Net Amounts of Financial Instruments and Cash Collateral (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | ||
Derivative [Line Items] | ||||
Financial contracts receivable, Gross amounts of recognized assets | $ 23,725 | $ 13,215 | ||
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 | 23,725 | 13,215 | ||
Financial contracts receivable, Financial instruments available for offset | (2,683) | (8,937) | ||
Financial contracts receivable, Cash collateral (received) pledged | (11,850) | (2,036) | ||
Financial contracts receivable, Net amount of asset (liability) | 9,192 | 2,242 | ||
Financial contracts payable, Gross amounts of recognized assets (liabilities) | (5,290) | (28,245) | ||
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 | (5,290) | (28,245) | ||
Financial contracts payable, Financial instruments available for offset | 2,683 | 8,937 | ||
Financial contracts payable, Cash collateral (received) pledged | 2,607 | 19,308 | ||
Financial contracts payable, Net amount of asset (liability) | 0 | 0 | ||
Financial contracts receivable | ||||
Derivative [Line Items] | ||||
Financial contracts receivable, Net amounts of assets (liabilities) presented in the balance sheet | 23,725 | 13,215 | ||
Put Option [Member] | Financial contracts receivable | ||||
Derivative [Line Items] | ||||
Financial contracts receivable, Net amounts of assets (liabilities) presented in the balance sheet | 2,905 | [1] | 8,790 | [2] |
Put Option [Member] | NO MARKET (E.G. UNLISTED) [Member] | Financial contracts receivable | ||||
Derivative [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | $ 2,900 | $ 8,700 | ||
[1] | Includes options on the Japanese Yen and the Chinese Yuan, denominated in U.S. dollars. | |||
[2] | Includes options on the Japanese Yen and the Chinese Yuan, denominated in U.S. dollars. |
DUE TO PRIME BROKERS (Details)
DUE TO PRIME BROKERS (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Due to Prime Brokers [Line Items] | ||
Amounts due to prime brokers | $ 415,459 | $ 396,453 |
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 | $ 266,400 | 301,400 |
Investing activities | ||
Due to Prime Brokers [Line Items] | ||
Amounts due to prime brokers | $ 149,100 | $ 95,000 |
RETROCESSION (Details)
RETROCESSION (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jul. 12, 2016 | Dec. 31, 2015 | |
Ceded Credit Risk [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | $ 111,376,000 | $ 76,653,000 | $ 202,044,000 | $ 139,860,000 | ||
Loss and loss expenses recovered and recoverable | 300,000 | $ 500,000 | 700,000 | $ 800,000 | ||
Loss and loss adjustment expenses recoverable | 72,328,000 | 72,328,000 | $ 3,368,000 | |||
Funds withheld | 6,112,000 | 6,112,000 | 7,143,000 | |||
Provision for uncollectible losses recoverable | 0 | 0 | 0 | |||
Ceded Credit Risk, Secured | ||||||
Ceded Credit Risk [Line Items] | ||||||
Funds withheld | 3,000,000 | 3,000,000 | 3,100,000 | |||
Reinsurance Recoverables on Unpaid Losses, Gross | 68,700,000 | 68,700,000 | ||||
Unrated [Member] | ||||||
Ceded Credit Risk [Line Items] | ||||||
Loss and loss adjustment expenses recoverable | 71,700,000 | 71,700,000 | 3,100,000 | |||
AM Best, A- Rating [Member] | ||||||
Ceded Credit Risk [Line Items] | ||||||
Loss and loss adjustment expenses recoverable | $ 600,000 | $ 600,000 | $ 300,000 | |||
Scenario, Forecast [Member] | Ceded Credit Risk, Secured | ||||||
Ceded Credit Risk [Line Items] | ||||||
Collateral Held in Trust | $ 52,700,000 |
SHARE-BASED COMPENSATION Narrat
SHARE-BASED COMPENSATION Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
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 | 0 | ||
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 | $ 0 | ||
Number of stock options exercised | 261,000 | 186,000 | |
Intrinsic value of options exercised | $ 2,000 | $ 3,800 | |
General and Administrative Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation expense | $ 1,800 | $ 2,100 | |
Common Class A | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued from the exercise of stock options | 99,617 | 120,194 | |
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 | 475,963 | 658,775 | |
Restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Stock compensation expense reversed due to forfeitures | $ 50 | $ 100 | |
Number of RSUs issued to employees | 191,426 | ||
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Forfeiture Rate | 0.00% | 0.00% | |
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 | 152,138 | 78,685 | |
Number of restricted shares forfeited | 4,177 | 7,091 | |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Stock compensation expense reversed due to forfeitures | $ 200 | $ 0 | |
Number of RSUs issued to employees | 7,444 | 6,821 | |
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Forfeiture Rate | 6.00% | 0.00% | |
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% | |
Director [Member] | 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 | 39,288 | 28,215 |
SHARE-BASED COMPENSATION Restri
SHARE-BASED COMPENSATION Restricted Shares (Details) - Restricted stock - $ / shares | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Number of non-vested restricted shares, Balance | 307,013 | |
Number of non-vested restricted shares, Granted | 191,426 | |
Number of non-vested restricted shares, Vested | (122,620) | |
Number of non-vested restricted shares, Forfeited | (4,177) | |
Number of non-vested restricted shares, Balance | 371,642 | |
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 | $ 29.74 | |
Weighted average grant date fair value, Granted | 21.54 | |
Weighted average grant date fair value, Vested | 25.66 | |
Weighted average grant date fair value, Forfeited | 32.62 | |
Weighted average grant date fair value, Balance | $ 26.83 | |
Common Class A [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 152,138 | 78,685 |
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 | (4,177) | (7,091) |
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 | 39,288 | 28,215 |
SHARE-BASED COMPENSATION Rest42
SHARE-BASED COMPENSATION Restricted Stock Units (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
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 | 307,013 | |
Number of non-vested restricted shares, Granted | 191,426 | |
Number of non-vested restricted shares, Vested | (122,620) | |
Number of non-vested restricted shares, Forfeited | (4,177) | |
Number of non-vested restricted shares, Balance | 371,642 | |
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 | $ 29.74 | |
Weighted average grant date fair value, Granted | 21.54 | |
Weighted average grant date fair value, Vested | 25.66 | |
Weighted average grant date fair value, Forfeited | 32.62 | |
Weighted average grant date fair value, Balance | $ 26.83 | |
Stock Issued During Period, Value, Restricted Stock Award, Forfeitures | $ 50 | $ 100 |
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 | 22,170 | |
Number of non-vested restricted shares, Granted | 7,444 | 6,821 |
Number of non-vested restricted shares, Vested | (1,205) | |
Number of non-vested restricted shares, Forfeited | (11,881) | 0 |
Number of non-vested restricted shares, Balance | 16,528 | |
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 | $ 30.55 | |
Weighted average grant date fair value, Granted | 21.56 | |
Weighted average grant date fair value, Vested | 24.38 | |
Weighted average grant date fair value, Forfeited | 29.60 | |
Weighted average grant date fair value, Balance | $ 27.64 | |
Stock Issued During Period, Value, Restricted Stock Award, Forfeitures | $ 200 | $ 0 |
SHARE-BASED COMPENSATION Share
SHARE-BASED COMPENSATION Share Based Compensation Options Rollfoward (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Number of options, Balance | 906,991 | |
Number of options, Granted | 0 | |
Number of options, Exercised | (261,000) | (186,000) |
Number of options, Forfeited | 0 | |
Number of options, Expired | 0 | |
Number of options, Balance | 645,991 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||
Weighted average exercise price, Balance | $ 19.78 | |
Weighted average exercise price, Granted | 0 | |
Weighted average exercise price, Exercised | 12.17 | |
Weighted average exercise price, Forfeited | 0 | |
Weighted average exercise price, Expired | 0 | |
Weighted average exercise price, Balance | 22.85 | |
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 | 8.53 | |
Weighted average grant date fair value, Granted | 0 | |
Weighted average grant date fair value, Exercised | 6.23 | |
Weighted average grant date fair value, Forfeited | 0 | |
Weighted average grant date fair value, Expired | 0 | |
Weighted average grant date fair value, Balance | $ 9.46 |
SHARE-BASED COMPENSATION Black
SHARE-BASED COMPENSATION Black Scholes option pricing model assumptions (Details) | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Expected term (in years) | 10 years | 10 years |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | ||||
Related Party Transaction [Line Items] | ||||||||
Investment Income | $ 38,054,000 | $ 20,305,000 | $ 9,619,000 | $ 45,134,000 | ||||
Debt instruments | 93,893,000 | 93,893,000 | $ 39,087,000 | |||||
Listed equity securities | 899,904,000 | $ 899,904,000 | 905,994,000 | |||||
Corporate Joint Venture [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Investment Income | 276,700,000 | |||||||
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 | (3,080,400) | 0 | $ 0 | 0 | ||||
Investment management fee rate - monthly | 0.125% | |||||||
Investment management fee rate - annual | 1.50% | |||||||
Management fees | 4,100,000 | $ 5,200,000 | $ 8,300,000 | $ 10,400,000 | ||||
Equity Securities [Member] | Board of Directors Chairman | ||||||||
Related Party Transaction [Line Items] | ||||||||
Listed equity securities | $ 25,200,000 | $ 25,200,000 | ||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 49.00% | 49.00% | ||||||
Debt instruments | Board of Directors Chairman | ||||||||
Related Party Transaction [Line Items] | ||||||||
Listed equity securities | 25,000,000 | |||||||
Service Agreement [Member] | Board of Directors Chairman | ||||||||
Related Party Transaction [Line Items] | ||||||||
Investor relations monthly fee | $ 5,000 | |||||||
Private Equity Funds [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Unrecorded Unconditional Purchase Obligation, Due in Next Twelve Months | $ 9,618,000 | [1] | 9,618,000 | [1] | $ 6,100,000 | |||
Private equity and limited partnerships (1) | ||||||||
Related Party Transaction [Line Items] | ||||||||
Unrecorded Unconditional Purchase Obligation, Due within Two Years | [1] | 0 | 0 | |||||
Unrecorded Unconditional Purchase Obligation, Due within Three Years | [1] | 0 | 0 | |||||
Unrecorded Unconditional Purchase Obligation, Due within Four Years | [1] | 0 | 0 | |||||
Unrecorded Unconditional Purchase Obligation, Due within Five Years | [1] | 0 | 0 | |||||
Unrecorded Unconditional Purchase Obligation, Due after Five Years | [1] | 0 | 0 | |||||
Unrecorded Unconditional Purchase Obligation | [1] | $ 9,618,000 | $ 9,618,000 | |||||
[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, 2016 |
COMMITMENTS AND CONTINGENCIES46
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Letters of Credit Facilities [Line Items] | ||
Contractual Obligation, Future Minimum Payments Due, Remainder of Fiscal Year | $ 9,894 | |
Amount of letters of credit issued | 232,400 | $ 245,600 |
Total equity securities, restricted cash, and cash and cash equivalents fair value pledged as security against the letters of credit | 262,500 | 324,300 |
Trust arrangement collateral | 86,000 | $ 78,600 |
Facility | ||
Letters of Credit Facilities [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 600,000 | |
Facility | Bank of America, N.A. | ||
Letters of Credit Facilities [Line Items] | ||
Line of Credit Facility, Increase (Decrease), Net | $ (120,000) | |
Notice period required for termination | 90 days | |
Facility | Butterfield Bank (Cayman) Limited [Member] | ||
Letters of Credit Facilities [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 100,000 | |
Notice period required for termination | 90 days | |
Facility | Citibank Europe plc | ||
Letters of Credit Facilities [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 400,000 | |
Notice period required for termination | 120 days | |
Facility | JP Morgan Chase Bank N.A. | ||
Letters of Credit Facilities [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 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 | 6 Months Ended | ||||||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2016EUR (€) | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |||
Operating Leased Assets [Line Items] | ||||||||
Total rent expense related to leased office space | $ 100 | $ 100 | $ 300 | $ 300 | ||||
Operating Lease obligations, 2016 | 276 | 276 | ||||||
Operating lease obligations, 2017 | 552 | 552 | ||||||
Operating lease obligations, 2018 | 319 | 319 | ||||||
Operating lease obligations, 2019 | 86 | 86 | ||||||
Operating lease obligations, 2020 | 86 | 86 | ||||||
Operating lease obligations, Thereafter | 32 | 32 | ||||||
Operating lease obligations, Total | 1,351 | 1,351 | ||||||
Contractual Obligations Total 2016 | 9,894 | 9,894 | ||||||
Contractual Obligations Total 2017 | 552 | 552 | ||||||
Contractual Obligations Total 2018 | 319 | 319 | ||||||
Contractual Obligations Total 2019 | 86 | 86 | ||||||
Contractual Obligations Total 2020 | 86 | 86 | ||||||
Contractual Obligations Total, Thereafter | 32 | 32 | ||||||
Contractual Obligations Total | 10,969 | $ 10,969 | ||||||
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 Next Twelve Months | $ 9,618 | [1] | $ 9,618 | [1] | $ 6,100 | |||
[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, 2016 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)Segment | Jun. 30, 2015USD ($) | ||
Segment Reporting Information [Line Items] | |||||
Number of operating segments | Segment | 1 | ||||
Gross premiums written | $ 92,237 | $ 92,990 | $ 259,029 | $ 222,672 | |
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 | $ 1,339 | $ 16,408 | $ 44,971 | $ 54,402 | |
Premiums Written, Gross as a percentage of Total Gross Premiums Written | 1.50% | 17.60% | 17.40% | 24.50% | |
Aviation | |||||
Segment Reporting Information [Line Items] | |||||
Gross premiums written | $ 221 | $ 137 | $ 435 | $ 403 | |
Premiums Written, Gross as a percentage of Total Gross Premiums Written | 0.20% | 0.10% | 0.20% | 0.20% | |
Commercial | |||||
Segment Reporting Information [Line Items] | |||||
Gross premiums written | $ 4,840 | $ 3,254 | $ 10,477 | $ 9,703 | |
Premiums Written, Gross as a percentage of Total Gross Premiums Written | 5.20% | 3.50% | 4.00% | 4.40% | |
Energy | |||||
Segment Reporting Information [Line Items] | |||||
Gross premiums written | $ 327 | $ 68 | $ 2,095 | $ 1,738 | |
Premiums Written, Gross as a percentage of Total Gross Premiums Written | 0.40% | 0.10% | 0.80% | 0.80% | |
Motor physical damage | |||||
Segment Reporting Information [Line Items] | |||||
Gross premiums written | $ 8,735 | $ 8,049 | $ 18,100 | $ 15,642 | |
Premiums Written, Gross as a percentage of Total Gross Premiums Written | 9.50% | 8.60% | 7.00% | 7.00% | |
Personal (1) | |||||
Segment Reporting Information [Line Items] | |||||
Gross premiums written | $ (12,784) | [1] | $ 4,900 | $ 13,864 | $ 26,916 |
Premiums Written, Gross as a percentage of Total Gross Premiums Written | (13.90%) | [1] | 5.30% | 5.40% | 12.10% |
Total Casualty | |||||
Segment Reporting Information [Line Items] | |||||
Gross premiums written | $ 76,066 | $ 61,433 | $ 151,587 | $ 130,155 | |
Premiums Written, Gross as a percentage of Total Gross Premiums Written | 82.40% | 66.10% | 58.50% | 58.40% | |
General liability | |||||
Segment Reporting Information [Line Items] | |||||
Gross premiums written | $ 10,585 | $ 2,306 | $ 18,996 | $ 8,704 | |
Premiums Written, Gross as a percentage of Total Gross Premiums Written | 11.50% | 2.50% | 7.30% | 3.90% | |
Marine liability | |||||
Segment Reporting Information [Line Items] | |||||
Gross premiums written | $ 2,164 | $ 1,488 | $ 5,816 | $ 5,422 | |
Premiums Written, Gross as a percentage of Total Gross Premiums Written | 2.30% | 1.60% | 2.20% | 2.40% | |
Motor liability | |||||
Segment Reporting Information [Line Items] | |||||
Gross premiums written | $ 51,144 | $ 44,894 | $ 100,712 | $ 88,225 | |
Premiums Written, Gross as a percentage of Total Gross Premiums Written | 55.40% | 48.30% | 38.90% | 39.60% | |
Professional liability | |||||
Segment Reporting Information [Line Items] | |||||
Gross premiums written | $ 12,173 | $ 12,745 | $ 26,063 | $ 27,804 | |
Premiums Written, Gross as a percentage of Total Gross Premiums Written | 13.20% | 13.70% | 10.10% | 12.50% | |
Total Specialty | |||||
Segment Reporting Information [Line Items] | |||||
Gross premiums written | $ 14,832 | $ 15,149 | $ 62,471 | $ 38,115 | |
Premiums Written, Gross as a percentage of Total Gross Premiums Written | 16.10% | 16.30% | 24.10% | 17.10% | |
Financial | |||||
Segment Reporting Information [Line Items] | |||||
Gross premiums written | $ 4,719 | $ 2,020 | $ 20,397 | $ 3,576 | |
Premiums Written, Gross as a percentage of Total Gross Premiums Written | 5.10% | 2.20% | 7.90% | 1.60% | |
Health | |||||
Segment Reporting Information [Line Items] | |||||
Gross premiums written | $ 6,522 | $ 11,459 | $ 33,717 | $ 32,140 | |
Premiums Written, Gross as a percentage of Total Gross Premiums Written | 7.10% | 12.30% | 13.00% | 14.40% | |
Workers’ compensation | |||||
Segment Reporting Information [Line Items] | |||||
Gross premiums written | $ 3,591 | $ 1,670 | $ 8,357 | $ 2,399 | |
Premiums Written, Gross as a percentage of Total Gross Premiums Written | 3.90% | 1.80% | 3.20% | 1.10% | |
[1] | The negative balance represents reversal of premiums due to premium adjustments, termination of contracts or premium returned upon novation or commutation of contracts. |
SEGMENT REPORTING Geographic in
SEGMENT REPORTING Geographic information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |||
Revenue from External Customer [Line Items] | ||||||
Gross premiums written | $ 92,237 | $ 92,990 | $ 259,029 | $ 222,672 | ||
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 | $ 61,517 | $ 74,164 | $ 192,261 | $ 168,560 | ||
Gross premiums by geographical area as a percentage of total gross premiums | 66.70% | 79.80% | 74.20% | 75.70% | ||
Worldwide (1) | ||||||
Revenue from External Customer [Line Items] | ||||||
Gross premiums written | [1] | $ 29,309 | $ 17,065 | $ 63,667 | $ 50,369 | |
Gross premiums by geographical area as a percentage of total gross premiums | [1] | 31.80% | 18.30% | 24.60% | 22.60% | |
Europe | ||||||
Revenue from External Customer [Line Items] | ||||||
Gross premiums written | $ 1,411 | $ 1,203 | $ 3,321 | $ 3,136 | ||
Gross premiums by geographical area as a percentage of total gross premiums | 1.50% | 1.30% | 1.30% | 1.40% | ||
Asia (2) | ||||||
Revenue from External Customer [Line Items] | ||||||
Gross premiums written | $ 0 | $ 558 | $ (220) | [2] | $ 607 | |
Gross premiums by geographical area as a percentage of total gross premiums | 0.00% | 0.60% | (0.10%) | [2] | 0.30% | |
[1] | "Worldwide" is comprised of contracts that reinsure risks in more than one geographic area and do not specifically exclude the U.S. | |||||
[2] | The negative balance represents reversal of premiums due to premium adjustments, termination of contracts or premium returned upon novation or commutation of contracts. |