Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 26, 2018 | Jun. 30, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Third Point Reinsurance Ltd. | ||
Entity Central Index Key | 1,576,018 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 103,282,427 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 917.5 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Equity securities, trading, at fair value (cost - $1,868,735; 2016 - $1,385,866) | $ 2,283,050 | $ 1,506,854 |
Debt securities, trading, at fair value (cost - $711,322; 2016 - $1,036,716) | 675,158 | 1,057,957 |
Other investments, at fair value | 37,731 | 82,701 |
Total investments in securities | 2,995,939 | 2,647,512 |
Cash and cash equivalents | 8,197 | 9,951 |
Restricted cash and cash equivalents | 541,136 | 298,940 |
Due from brokers | 305,093 | 284,591 |
Derivative assets, at fair value | 73,372 | 27,432 |
Interest and dividends receivable | 3,774 | 6,505 |
Reinsurance balances receivable | 476,008 | 381,951 |
Deferred acquisition costs, net | 258,793 | 221,618 |
Other assets | 9,482 | 17,144 |
Total assets | 4,671,794 | 3,895,644 |
Liabilities | ||
Accounts payable and accrued expenses | 34,632 | 10,321 |
Reinsurance balances payable | 41,614 | 43,171 |
Deposit liabilities | 129,133 | 104,905 |
Unearned premium reserves | 649,518 | 557,076 |
Loss and loss adjustment expense reserves | 720,570 | 605,129 |
Securities sold, not yet purchased, at fair value | 394,278 | 92,668 |
Securities sold under an agreement to repurchase | 29,618 | 0 |
Due to brokers | 770,205 | 899,601 |
Derivative liabilities, at fair value | 14,503 | 16,050 |
Interest and dividends payable | 4,275 | 3,443 |
Senior notes payable, net of deferred costs | 113,733 | 113,555 |
Total liabilities | 2,902,079 | 2,445,919 |
Commitments and contingent liabilities | ||
Redeemable Noncontrolling Interest, Equity, Carrying Amount | 108,219 | 0 |
Shareholders’ equity | ||
Preference shares (par value $0.10; authorized, 30,000,000; none issued) | 0 | 0 |
Common shares (Issued: 2017 - 107,227,347; 2016 - 106,501,299; Outstanding: 2017 - 103,282,427; 2016 - 105,856,531) | 10,723 | 10,650 |
Treasury shares (2017 - 3,944,920; 2016 - 644,768) | (48,253) | (7,389) |
Additional paid-in capital | 1,099,599 | 1,094,568 |
Retained earnings | 594,020 | 316,222 |
Shareholders’ equity attributable to Third Point Re common shareholders | 1,656,089 | 1,414,051 |
Noncontrolling interests in related party | 5,407 | 35,674 |
Total shareholders' equity | 1,661,496 | 1,449,725 |
Total liabilities, noncontrolling interests and shareholders' equity | $ 4,671,794 | $ 3,895,644 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Equity securities, trading, at fair value (cost - $1,868,735; 2016 - $1,385,866) | $ 1,385,866 | $ 1,156,369 |
Debt securities, trading, at fair value (cost - $711,322; 2016 - $1,036,716) | $ 1,036,716 | $ 1,049,652 |
Shareholders’ equity | ||
Preference shares, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Preference shares, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Preference shares, shares issued (in shares) | 0 | 0 |
Preference shares, shares outstanding (in shares) | 0 | 0 |
Common share, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common share, shares issued (in shares) | 107,227,347 | 106,501,299 |
Common share, shares outstanding (in shares) | 103,282,427 | 105,856,531 |
Treasury Stock, Shares | 3,944,920 | 644,768 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues | |||||||||||
Gross premiums written | $ 164,163 | $ 174,539 | $ 156,564 | $ 146,354 | $ 80,779 | $ 142,573 | $ 196,866 | $ 197,156 | $ 641,620 | $ 617,374 | $ 702,414 |
Gross premiums ceded | 75 | 0 | (1,425) | (1,125) | 27 | (927) | (1,425) | 0 | (2,475) | (2,325) | (1,876) |
Net premiums written | 164,238 | 174,539 | 155,139 | 145,229 | 80,806 | 141,646 | 195,441 | 197,156 | 639,145 | 615,049 | 700,538 |
Change in net unearned premium reserves | (34,722) | (68,564) | 18,419 | (7,220) | 111,277 | (13,463) | (62,319) | (60,354) | (92,087) | (24,859) | (97,714) |
Net premiums earned | 129,516 | 105,975 | 173,558 | 138,009 | 192,083 | 128,183 | 133,122 | 136,802 | 547,058 | 590,190 | 602,824 |
Net investment income before management and performance fees to related parties | 522,664 | 158,532 | 15,203 | ||||||||
Management and performance fees to related parties | (130,711) | (59,707) | (43,277) | ||||||||
Net investment income (loss) | 67,150 | 88,968 | 107,325 | 128,510 | (35,767) | 88,356 | 86,346 | (40,110) | 391,953 | 98,825 | (28,074) |
Total revenues | 196,666 | 194,943 | 280,883 | 266,519 | 156,316 | 216,539 | 219,468 | 96,692 | 939,011 | 689,015 | 574,750 |
Expenses | |||||||||||
Loss and loss adjustment expenses incurred, net | 99,509 | 77,275 | 107,379 | 85,895 | 122,110 | 85,015 | 104,131 | 84,676 | 370,058 | 395,932 | 415,191 |
Acquisition costs, net | 31,837 | 33,974 | 68,641 | 54,452 | 76,854 | 45,127 | 48,482 | 51,687 | 188,904 | 222,150 | 191,216 |
General and administrative expenses | 14,299 | 13,218 | 15,014 | 10,572 | 5,482 | 12,354 | 10,243 | 11,288 | 53,103 | 39,367 | 46,033 |
Other expenses | 3,822 | 3,846 | 2,105 | 2,901 | 2,161 | 347 | 3,173 | 2,706 | 12,674 | 8,387 | 8,614 |
Interest expense | 2,074 | 2,074 | 2,051 | 2,026 | 2,068 | 2,069 | 2,046 | 2,048 | 8,225 | 8,231 | 7,236 |
Foreign exchange (gains) losses | (2,067) | (5,437) | (4,781) | (15) | 5,162 | 3,905 | 8,068 | 2,386 | (12,300) | 19,521 | 3,196 |
Total expenses | 153,608 | 135,824 | 199,971 | 155,861 | 203,513 | 141,007 | 160,007 | 150,019 | 645,264 | 654,546 | 665,094 |
Income (loss) before income tax (expense) benefit | 43,058 | 59,119 | 80,912 | 110,658 | (47,197) | 75,532 | 59,461 | (53,327) | 293,747 | 34,469 | (90,344) |
Income tax (expense) benefit | 2,104 | (3,475) | (5,307) | (5,298) | 272 | (2,484) | (5,310) | 1,929 | (11,976) | (5,593) | 2,905 |
Net income (loss) | 45,162 | 55,644 | 75,605 | 105,360 | (46,925) | 73,048 | 54,151 | (51,398) | 281,771 | 28,876 | (87,439) |
Net (income) loss attributable to noncontrolling interests in related party | (813) | (959) | (1,027) | (1,174) | 232 | (967) | (775) | 269 | (3,973) | (1,241) | 49 |
Net income (loss) available to Third Point Re common shareholders | $ 44,349 | $ 54,685 | $ 74,578 | $ 104,186 | $ (46,693) | $ 72,081 | $ 53,376 | $ (51,129) | $ 277,798 | $ 27,635 | $ (87,390) |
Earnings (loss) per share available to Third Point Re common shareholders | |||||||||||
Basic (in dollars per share) | $ 0.44 | $ 0.54 | $ 0.73 | $ 1 | $ (0.45) | $ 0.69 | $ 0.51 | $ (0.49) | $ 2.71 | $ 0.26 | $ (0.84) |
Diluted (in dollars per share) | $ 0.42 | $ 0.52 | $ 0.71 | $ 0.98 | $ (0.45) | $ 0.68 | $ 0.51 | $ (0.49) | $ 2.64 | $ 0.26 | $ (0.84) |
Weighted average number of common shares used in the determination of earnings (loss) per share | |||||||||||
Basic (in shares) | 101,405,772 | 101,391,145 | 102,283,844 | 104,013,871 | 104,072,283 | 103,780,196 | 104,132,797 | 104,257,874 | 102,264,094 | 104,060,052 | 104,003,820 |
Diluted (in shares) | 105,524,115 | 104,679,574 | 104,569,226 | 105,701,599 | 104,072,283 | 105,795,313 | 105,233,921 | 104,257,874 | 105,227,038 | 105,563,784 | 104,003,820 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common shares / Share Capital | Treasury Stock [Member] | Additional paid-in capital | Retained earnings | Shareholders’ equity attributable to Third Point Re common shareholders | Noncontrolling interests in related party |
Treasury Stock, Value, Acquired, Cost Method | $ 0 | ||||||
Shares issued and outstanding, beginning of year at Dec. 31, 2014 | $ 10,447 | 0 | $ 1,065,489 | $ 375,977 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common shares, net | 101 | 4,231 | |||||
Share compensation expense | 10,871 | ||||||
Net (income) loss attributable to noncontrolling interests in related party | $ 49 | 49 | |||||
Net income (loss) | (87,439) | (87,439) | |||||
Balance. end of period at Dec. 31, 2015 | 1,395,883 | 10,548 | 0 | 1,080,591 | 288,587 | $ 16,157 | |
Stockholders' Equity Attributable to Parent | $ 1,379,726 | ||||||
Treasury Stock, Value, Acquired, Cost Method | (7,389) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common shares, net | 102 | 5,039 | |||||
Share compensation expense | 8,938 | ||||||
Net (income) loss attributable to noncontrolling interests in related party | (1,241) | (1,241) | |||||
Net income (loss) | 28,876 | 28,876 | |||||
Balance. end of period at Dec. 31, 2016 | 1,449,725 | 10,650 | (7,389) | 1,094,568 | 316,222 | 35,674 | |
Stockholders' Equity Attributable to Parent | 1,414,051 | 1,414,051 | |||||
Treasury Stock, Value, Acquired, Cost Method | (40,864) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common shares, net | 73 | 1,432 | |||||
Share compensation expense | 3,599 | ||||||
Net (income) loss attributable to noncontrolling interests in related party | (3,973) | ||||||
Net income (loss) | 281,771 | 281,771 | |||||
Balance. end of period at Dec. 31, 2017 | 1,661,496 | $ 10,723 | $ (48,253) | $ 1,099,599 | $ 594,020 | $ 5,407 | |
Stockholders' Equity Attributable to Parent | $ 1,656,089 | $ 1,656,089 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Cash Flows [Abstract] | |||
Net income (loss) | $ 281,771 | $ 28,876 | $ (87,439) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Share compensation expense | 3,599 | 8,938 | 10,871 |
Net interest expense (income) on deposit liabilities | 2,800 | (164) | 6,471 |
Net unrealized (gain) loss on investments and derivatives | (255,029) | (72,083) | 32,354 |
Net realized gain on investments and derivatives | (225,016) | (33,179) | (16,655) |
Net foreign exchange (gains) losses | 12,300 | (19,521) | (3,196) |
Amortization of premium and accretion of discount, net | 473 | 5,118 | 324 |
Changes in assets and liabilities: | |||
Reinsurance balances receivable | (86,606) | (86,612) | 8,768 |
Deferred acquisition costs, net | (37,175) | (24,525) | (41,192) |
Other assets | 7,671 | (5,003) | (7,815) |
Interest and dividends receivable, net | 3,563 | 3,225 | (4,382) |
Unearned premium reserves | 92,442 | 25,366 | 97,901 |
Loss and loss adjustment expense reserves | (97,922) | (156,644) | (192,433) |
Accounts payable and accrued expenses | 24,212 | (2,095) | 1,881 |
Reinsurance balances payable | (1,463) | 19,786 | (2,548) |
Net cash provided by (used in) operating activities | (78,536) | 4,771 | 187,776 |
Investing activities | |||
Purchases of investments | (3,099,525) | (3,729,944) | (3,360,626) |
Proceeds from sales of investments | 3,228,251 | 3,504,598 | 2,829,523 |
Purchases of investments to cover short sales | (791,753) | (1,264,404) | (543,936) |
Proceeds from short sales of investments | 1,048,552 | 1,046,422 | 792,344 |
Change in due to/from brokers, net | (149,898) | 367,019 | (6,377) |
Decrease in securities purchased under an agreement to sell | 0 | 0 | 29,852 |
Increase (decrease) in securities sold under an agreement to repurchase | 29,618 | (8,944) | 8,944 |
Change in restricted cash and cash equivalents | (242,196) | 31,975 | 86,392 |
Net cash provided by (used in) investing activities | 23,049 | (53,278) | (163,884) |
Financing activities | |||
Proceeds from issuance of Third Point Re common shares, net of costs | 1,505 | 5,141 | 4,332 |
Purchases of Third Point Re common shares under share repurchase program | (40,864) | (7,389) | 0 |
Proceeds from issuance of senior notes payable, net of costs | 0 | 0 | 113,220 |
Increase (decrease) in deposit liabilities, net | 19,113 | 22,023 | (65,842) |
Change in total noncontrolling interests in related party, net | 73,979 | 18,276 | (24,137) |
Noncontrolling interest in Catastrophe Fund Manager | 0 | 0 | (59,792) |
Net cash provided by (used in) financing activities | 53,733 | 38,051 | (32,219) |
Net increase (decrease) in cash and cash equivalents | (1,754) | (10,456) | (8,327) |
Cash and cash equivalents at beginning of year | 9,951 | 20,407 | 28,734 |
Cash and cash equivalents at end of year | 8,197 | 9,951 | 20,407 |
Supplementary information | |||
Interest paid in cash | 21,394 | 23,027 | 9,311 |
Income taxes paid in cash | $ 7,810 | $ 5,950 | $ 4,429 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Third Point Reinsurance Ltd. (together with its wholly and majority owned subsidiaries, “Third Point Re” or the “Company”) was incorporated under the laws of Bermuda on October 6, 2011. Through its reinsurance subsidiaries, the Company is a provider of global specialty property and casualty reinsurance products. The Company operates through two licensed reinsurance subsidiaries, Third Point Reinsurance Company Ltd. (“Third Point Re BDA”), a Bermuda reinsurance company that commenced operations in January 2012, and Third Point Reinsurance (USA) Ltd. (“Third Point Re USA”). Third Point Re USA is a Bermuda reinsurance company that was incorporated on November 21, 2014 and commenced operations in February 2015. Third Point Re USA made an election under Section 953(d) of the U.S. Internal Revenue Code of 1986, as amended, to be taxed as a U.S. entity. Third Point Re USA prices and underwrites U.S. domiciled reinsurance business from an office in the United States. Third Point Re USA is a wholly owned subsidiary of Third Point Re (USA) Holdings, Inc. (“TPRUSA”), an intermediate holding company based in the U.S., which is a wholly owned subsidiary of Third Point Re (UK) Holdings Ltd. (“Third Point Re UK”), an intermediate holding company based in the United Kingdom. Third Point Re UK is a wholly owned subsidiary of Third Point Re. In June 2012, Third Point Reinsurance Opportunities Fund Ltd. (the “Catastrophe Fund”), Third Point Reinsurance Investment Management Ltd. (the “Catastrophe Fund Manager”), and Third Point Re Cat Ltd. (the “Catastrophe Reinsurer”) were incorporated in Bermuda. The Catastrophe Fund Manager, a Bermuda exempted company, was the investment manager of the Catastrophe Fund. In December 2014, the Company announced that it would no longer accept investments in the Catastrophe Fund, that no new business would be written in the Catastrophe Reinsurer and that the Company would be redeeming all existing investments in the Catastrophe Fund. As of December 31, 2015, all investments in the Catastrophe Fund were redeemed. In February 2016, the Company completed the dissolution of the Catastrophe Fund and Catastrophe Reinsurer. In August 2012, the Company established a wholly-owned subsidiary in the United Kingdom, Third Point Re Marketing (UK) Limited (“TPRUK”). In May 2013, TPRUK was licensed as an insurance intermediary by the UK Financial Conduct Authority. In August 2013, the Company completed an initial public offering (“IPO”) of 24,832,484 common shares at an offering price of $12.50 per share. The net proceeds of the offering were $286.0 million , after deducting offering costs. The Company’s common shares are listed on the New York Stock Exchange (“NYSE”) under the symbol “TPRE”. These consolidated financial statements include the results of Third Point Re and its wholly and majority owned subsidiaries (together, the “Company”) and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All intercompany accounts and transactions have been eliminated. |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Significant accounting policies | The following is a summary of the significant accounting and reporting policies adopted by the Company: Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported and disclosed amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The major estimates reflected in the Company’s consolidated financial statements include, but are not limited to, the loss and loss adjustment expense reserves, estimates of written and earned premiums and fair value of financial instruments. Cash and restricted cash and cash equivalents Cash and cash equivalents consist of cash held in banks and other short-term, highly liquid investments with original maturity dates of ninety days or less. Restricted cash and cash equivalents consist of cash held in trust accounts securing obligations under certain reinsurance contracts and cash held with brokers and in trust accounts securing letters of credit issued under credit facilities. Premium revenue recognition To the extent that the amount of written premium is estimable, the Company estimates the ultimate premiums for the entire contract period and records this estimate at the inception of the contract. For contracts where the full written premium is not estimable at inception, the Company records written premium for the portion of the contract period for which the amount is estimable. These estimates are based primarily on information in the underlying contracts as well as information provided by clients and/or brokers. Changes in premium estimates are expected and may result in adjustments in any reporting period. These estimates change over time as additional information regarding the underlying business volume is obtained. Any subsequent adjustments arising on such estimates are recorded in the period in which they are determined. Premiums written are earned over the exposure period in proportion to the period of risk covered. Unearned premiums represent the portion of premiums written that relate to the remaining term of the underlying policies in force. Premiums for retroactive exposures in reinsurance contracts are earned at the inception of the contract, as all of the underlying loss events covered by these exposures occurred in the past. If the estimated loss and loss adjustment expense reserve differs from the premium received at inception of a retroactive reinsurance contract, the resulting difference is deferred and recognized over the estimated claim payment period of the related contract with the periodic amortization reflected in earnings as a component of loss and loss adjustment expenses incurred. Reinsurance premiums ceded From time to time, the Company reduces the risk of losses on business written by reinsuring certain risks and exposures with other reinsurers. The Company remains liable to the extent that any retrocessionaire fails to meet its obligations and to the extent that the Company does not hold sufficient security for their unpaid obligations. Ceded premiums are written during the period in which the risks incept and are earned over the contract period in proportion to the period of risk covered. Unearned premiums ceded consist of the unexpired portion of reinsurance ceded. Deferred acquisition costs Acquisition costs consist of commissions, brokerage and excise taxes that are related directly to the successful acquisition of new or renewal reinsurance contracts. These costs are deferred and amortized over the period in which the related premiums are earned. 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 expected future loss and loss adjustment expenses and acquisition costs. If a loss is probable on the unexpired portion of contracts in force, a premium deficiency loss is recognized. As of December 31, 2017 , deferred acquisition costs are considered to be fully recoverable and no premium deficiency has been recorded. Acquisition costs also include profit commissions that 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 The Company’s loss and loss adjustment expense reserves include case reserves, reserves for losses incurred but not yet reported (“IBNR reserves”) and deferred gains on retroactive reinsurance contracts. Case reserves are established for losses that have been reported, but not yet paid. IBNR reserves represent the estimated loss and loss adjustment expenses that have been incurred by insureds and reinsureds but not yet reported to the insurer or reinsurer, including unknown future development on loss and loss adjustment expenses that are known to the insurer or reinsurer. IBNR reserves are established by management based on actuarially determined estimates of ultimate loss and loss adjustment expenses. Deferred gains represent the underwriting profit related to retroactive exposures in reinsurance contracts at inception and are deferred and amortized over the estimated future settlement period of the contract. Deferred gains are included in loss and loss adjustment expense reserves. If the premium received is lower than the estimated loss and loss adjustment expense reserves assumed at inception of a retroactive reinsurance contract, the resulting difference is deferred and recorded in other assets. This difference is also amortized over the estimated future settlement period of the contract. Inherent in the estimate of ultimate loss and loss adjustment expenses are expected trends in claim severity and frequency and other factors that may vary significantly as claims are settled. Accordingly, ultimate loss and loss adjustment expenses may differ materially from the amounts recorded in the consolidated financial statements. These estimates are reviewed regularly and, as experience develops and new information becomes known, the reserves are adjusted as necessary. Such adjustments, if any, are recorded in the consolidated statements of income (loss) in the period in which they become known. Deposit liabilities Certain contracts do not transfer sufficient insurance risk to be deemed reinsurance contracts and are accounted for using the deposit method of accounting. Management exercises judgment in determining whether contracts transfer sufficient risk to be accounted for as reinsurance contracts. Using the deposit method of accounting, a deposit liability, rather than written premium, is initially recorded based upon the consideration received less any explicitly identified premiums or fees. In subsequent periods, the deposit liability is adjusted by calculating the effective yield on the deposit to reflect actual payments to date and future expected payments. In some cases, the effective yield on the contract may be negative, which will result in the recognition of other income. Fair value measurement The Company determines the fair value of financial instruments in accordance with current accounting guidance, which defines fair value and establishes a three level fair value hierarchy based upon the transparency of inputs used in the valuation of an asset or liability. Fair value is defined as the price that the Company would receive to sell an asset or would pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Company determines the estimated fair value of each individual security utilizing the highest level inputs available. The fair value of the Company’s assets and liabilities, which qualify as financial instruments, approximates the carrying amounts presented in the consolidated balance sheets. Investments The Company’s investments are classified as “trading securities” and are carried at fair value with changes in fair value included in earnings in the consolidated statements of income (loss) . The fair value of the Company’s investments are based on quoted market prices, or when such prices are not available, by reference to broker or underwriter bid indications, industry recognized pricing vendors, and/or internal pricing valuation techniques. Investment transactions are recorded on a trade date basis with balances pending settlement included in due to/from brokers in the consolidated balance sheets. Realized gains and losses are determined using cost calculated on a specific identification basis. Dividends are recorded on the ex-dividend date. Income and expenses are recorded on the accrual basis including interest and premiums amortized and discounts accreted. Derivatives Investments Derivative instruments within our investment assets managed by our investment manager, Third Point LLC, are recorded in the consolidated balance sheets at fair value, with changes in fair values and realized gains and losses recognized in net investment income (loss) in the consolidated statements of income (loss) . Derivatives serve as a key component of the Company’s investment strategy and are utilized primarily to structure the portfolio, or individual investments, and to economically match the investment objectives of the Company. The Company’s derivatives do not qualify as hedges for financial reporting purposes and are recorded in the consolidated balance sheets on a gross basis and not offset against any collateral pledged or received. Pursuant to the International Swaps and Derivatives Association (“ISDA”) master agreements, securities lending agreements and other derivatives agreements, the Company and its counterparties typically have the ability to net certain payments owed to each other in specified circumstances. In addition, in the event a party to one of the ISDA master agreements, securities lending agreements or other derivatives agreements defaults, or a transaction is otherwise subject to termination, the non-defaulting party generally has the right to set off against payments owed to the defaulting party or collateral held by the non defaulting party. The Company enters into derivative contracts to manage credit risk, interest rate risk, currency exchange risk and other exposure risks. The Company uses derivatives in connection with its risk-management activities to economically hedge certain risks and to gain exposure to certain investments. The utilization of derivative contracts also allows for an efficient means by which to trade certain asset classes. Fair values of derivatives are determined by using quoted market prices, industry recognized pricing vendors and counterparty quotes when available; otherwise fair values are based on pricing models that consider the time value of money, volatility and the current market and contractual prices of underlying financial instruments. Embedded derivatives Certain of the Company’s reinsurance contracts contain interest crediting features that vary based on the net investment return on investments managed by Third Point LLC. These contractual features are considered embedded derivatives in accordance with U.S. GAAP. We include the estimated fair value of these embedded derivatives in the consolidated balance sheets with the host contract in order to reflect the expected settlement of these features with the host contract. The change in estimated fair value of these embedded derivatives are recorded in other expenses in the consolidated statements of income (loss). Share-based compensation The Company accounts for its share-based compensation transactions using the fair value of the award at the grant date and accounts for forfeitures when they occur. Determining the fair value of share purchase options at the grant date requires estimation and judgment. The Company uses an option-pricing model (Black-Scholes) to calculate the fair value of share purchase options. For share purchase options or restricted share awards granted that contain both a service and performance condition, the Company recognizes share compensation expense only for the portion of the options or restricted share awards that are considered probable of vesting. Share compensation for share purchase options or restricted share awards considered probable of vesting is expensed over the service (vesting) period on a graded vesting basis. The probability of share purchase options or restricted share awards vesting is evaluated at each reporting period. When the share purchase options or restricted share awards are considered probable of vesting, the Company records a true up of share compensation expense from the grant date (service inception date) to the current reporting period end based on the fair value of the options or restricted share awards at the grant date. The Company measures grant date fair value for restricted share awards, with a service condition only, based on the price of its common shares at the grant date and the expense is recognized on a straight-line basis over the vesting period. Warrants The Company accounts for warrant contracts issued to certain of its founding investors (“Founders”) in conjunction with the initial capitalization of the Company by using either the physical settlement or net-share settlement methods. The fair value of these warrants was recorded in equity as additional paid-in capital. The fair value of warrants issued are estimated on the grant date using the Black-Scholes option-pricing model. The Company accounts for certain warrant contracts issued to an advisor, where services have been received by the Company, in part, in exchange for equity instruments, based on the fair value of such services. The associated cost of these warrants has been recorded as capital raise costs and is included in additional paid in capital in the consolidated statements of shareholders’ equity. Debt offering costs Costs incurred in issuing debt, which includes underwriters’ fees, legal and accounting fees, printing and other fees are capitalized and presented as a direct deduction from the principal amount of senior notes payable in the consolidated balance sheets. These costs are amortized over the term of the debt and are included in interest expense in the consolidated statements of income (loss) . Other expenses Other expenses are comprised of expenses relating to interest crediting features in certain reinsurance and deposit contracts as well as changes in value of embedded derivatives in reinsurance contracts and deposit liability contracts that have variable interest crediting features. Variable and fixed interest crediting features are calculated on funds transferred to the Company where interest is credited based on actual cash received into a notional experience account. The ceding company can typically elect to commute at specific points in time in exchange for the amounts held in the notional experience account. For those contracts that contain variable interest crediting features, actual investment returns realized by the Company are included in the calculation, which can increase the overall effective interest crediting rate on those contracts. Variable interest credit features are accounted for as embedded derivatives. Fixed interest credits on reinsurance contracts and deposit liability contracts and changes in value of embedded derivative are included other expenses in the consolidated statements of income (loss) . Foreign currency transactions The Company’s functional currency is the U.S. dollar. Transactions involving monetary assets and liabilities denominated in foreign currencies have been converted into U.S. dollars at the exchange rate in effect on the balance sheet date, and the related revenues and expenses are converted using specific rates for the period, as appropriate. Net foreign currency transaction gains and losses arising from these activities are reported in the consolidated statements of income (loss) in the period in which they arise. Certain of the Company's investments are denominated in foreign currencies and thus, are subject to the risk associated with foreign currency fluctuations. These investments are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of investments and income and expenses denominated in foreign currencies are translated in U.S. dollar amounts on the respective dates of such transactions. The Company does not isolate the portion of the net investment income (loss) resulting from changes in foreign exchange rates on investments, dividends and interest from the fluctuations arising from changes in fair values of securities and derivatives held within the total net investments managed by Third Point LLC. Periodic payments received or paid on swap agreements are recorded as realized gain or loss on investment transactions. Such fluctuations are included within net investment income (loss) in the consolidated statements of income (loss) . Income taxes, withholding taxes and uncertain tax positions The Company provides for income taxes for its operations in income tax paying jurisdictions. The Company’s provision relies on estimates and interpretations of currently enacted tax laws. The Company recognizes deferred tax assets and liabilities based on the temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities. Such temporary differences are primarily due to tax basis discounts on loss and loss adjustment expense reserves and unearned premiums, deferred acquisition costs and unrealized gains (losses) on investments. A valuation allowance against deferred tax assets is recorded if it is more likely than not that all, or some portion, of the benefits related to deferred tax assets will not be realized. Any adjustments to deferred income taxes are accounted for as changes in estimates and are reflected in the consolidated statements of income (loss) in the year in which they are made. Adjustments could be material and could significantly impact earnings in the year they are recorded. The Company is subject to withholding tax obligations related to dividends, capital gains and interest on certain investments. These withholding taxes are recorded when they become payable and are included in income tax expense (benefit) in the Company’s consolidated statements of income (loss) . The Company has recognized uncertain tax positions related to certain investment transactions in foreign jurisdictions. The Company records its uncertain tax positions based on an estimate of the potential liability, including potential interests and penalties, arising from its investment transactions conducted in foreign countries. The changes in the Company’s uncertain tax position is included in income tax expense (benefit) in the Company’s consolidated statements of income (loss) . Noncontrolling interests in related party The Company consolidates the results of entities in which it has a controlling financial interest. Redeemable noncontrolling interests with redemption features that are not solely within the Company’s control are presented as a mezzanine item, between liabilities and shareholders’ equity, in the Company’s consolidated balance sheets and non-redeemable noncontrolling interests are presented as a separate line within shareholders’ equity in the consolidated balance sheets. The Company records the portion of net (income) loss attributable to noncontrolling interests in related party as a separate line within the consolidated statements of income (loss) . Changes in the presentation of noncontrolling interests During the year ended December 31, 2017, the Company identified that a portion of its noncontrolling interests were redeemable. See additional information regarding noncontrolling interests in Note 17 . This portion of the noncontrolling interests had previously been presented in noncontrolling interests to related party within shareholders’ equity when it should have been presented in the mezzanine section of the consolidated balance sheet as redeemable noncontrolling interests in related party. As of December 31, 2016, $31.2 million of the noncontrolling interests in related party should have been presented in the mezzanine section of the consolidated balance sheet as redeemable noncontrolling interests in related party and should have been excluded from noncontrolling interests in related party in shareholders’ equity. Although this impacted total shareholders’ equity, it did not impact shareholders’ equity attributable to Third Point Re common shareholders or retained earnings. In addition, this change did not impact the consolidated statements of income, earnings per share or consolidated statement of cash flows. The Company has evaluated the effect of the incorrect presentation, both qualitatively and quantitatively, and concluded that it did not have a material impact on, nor require amendment of, any previously filed annual or quarterly consolidated financial statements. Earnings (loss) per share Basic earnings (loss) per share is based on the weighted average number of common shares and participating securities outstanding during the period. The weighted average number of common shares excludes any dilutive effect of outstanding warrants, options and unvested restricted shares. Diluted earnings (loss) per share is based on the weighted average number of common shares and participating securities outstanding and includes any dilutive effects of warrants, options and unvested restricted shares under share plans and are determined using the treasury stock method. U.S. GAAP requires that unvested share awards that contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid (referred to as “participating securities”), be treated in the same manner as outstanding shares for earnings per share calculations. The Company treats certain of its unvested restricted shares as participating securities. In the event of a net loss, all participating securities, outstanding warrants, options and restricted shares are excluded from both basic and diluted loss per share since their inclusion would be anti-dilutive. Leases Leases in which substantially all of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are recognized in the consolidated statements of income (loss) on a straight-line basis over the term of the lease. Comprehensive income The Company has no comprehensive income other than net income disclosed in the consolidated statements of income (loss) . Segment information Under U.S. GAAP, operating segments are based on the internal information that management uses for allocating resources and assessing performance of the Company. The Company reports one operating segment, Property and Casualty Reinsurance. The Company also has a corporate function that includes the Company’s investment income on capital, certain general and administrative expenses related to its corporate activities, interest expense, foreign exchange gains (losses) and income tax (expense) benefit. Prior to 2016, the Company had another segment, Catastrophe Risk Management, however, as of December 31, 2015, all investments in the Catastrophe Fund had been redeemed. In February 2016, the Company completed the dissolution of the Catastrophe Fund and Catastrophe Reinsurer. As a result, there is no further activity in the Catastrophe Risk Management segment. Treasury shares Common shares repurchased by the Company and not canceled are classified as treasury shares. Treasury shares are recorded at cost, which results in a reduction of shareholders’ equity in the consolidated balance sheets. When shares are reissued from treasury, the Company uses the average cost method to determine the cost of the reissued shares. Gains on sales of treasury shares are credited to additional paid-in capital, while losses are charged to additional paid-in capital to the extent that previous net gains from sales of treasury shares are included therein; otherwise, losses are charged to retained earnings. Recent accounting pronouncements Adoption of New Accounting Standards In March 2016, the FASB issued Accounting Standards Update 2016-06, Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments (ASU 2016-06). ASU 2016-06 clarifies that determining whether the economic characteristics of a put or call are clearly and closely related to its debt host requires only an assessment of the four-step decision sequence outlined in FASB ASC paragraph 815-15-25-24. Additionally, entities are not required to separately assess whether the contingency itself is clearly and closely related. The ASU is effective for interim and annual periods in fiscal years beginning after December 15, 2016. As a result of the Company’s investments being valued at fair value and the Company not holding the type of instruments addressed by the adoption of ASU 2016-06, the adoption of this standard did not have any impact on the Company’s consolidated financial statements. In March 2016, the FASB issued Accounting Standards Update 2016-07, I nvestments - Equity Method and Joint Ventures: Simplifying the Transition to the Equity Method of Accounting (ASU 2016-07). ASU 2016-07 simplifies the equity method of accounting by eliminating the requirement to retrospectively apply the equity method to an investment that subsequently qualifies for such accounting as a result of an increase in the level of ownership interest or degree of influence. ASU 2016-07 is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. None of the Company’s investments qualify for the simplification in ASU 2016-07. As a result, the adoption of this standard did not have any impact on the Company’s consolidated financial statements. In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2016-09, Improvements to Employee Share-Based Payment Accounting (ASU 2016-09). ASU 2016-09 simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. The Company made the election to account for forfeitures when they occur, which resulted in no material impact on the Company’s consolidated financial statements. In October 2016, the FASB issued Accounting Standards Update 2016-17, Consolidation (Topic 810): Interests held through Related Parties that are under Common Control (ASU 2016-17). ASU 2016-17 alters how the Company needs to consider indirect interests in a variable interest entity held through an entity under common control. The new guidance amended ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis , issued in February 2015. ASU 2016-17 is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. The adoption of ASU 2016-17 did not have a material impact on the Company’s consolidated financial statements. Recently Issued Accounting Standards Not Yet Adopted In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (ASU 2014-09). ASU 2014-09 provides a framework, through a five-step process, for recognizing revenue from customers, improves comparability and consistency of recognizing revenue across entities, industries, jurisdictions and capital markets, and requires enhanced disclosures. Certain contracts with customers are specifically excluded from the scope of ASU 2014-09, including amongst others, insurance contracts accounted for under Accounting Standard Codification 944, Financial Services - Insurance . ASU 2014-09 is effective on January 1, 2017 with retrospective adoption required for the comparative periods. Insurance contracts are specifically excluded from ASU 2014-09 and we do not currently have any other revenue generating activities for which this standard would be applicable. As a result, this new pronouncement is not expected to have a material impact on the Company’s consolidated financial statements. In January 2016, the FASB issued Accounting Standards Update 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01). ASU 2016-01 intends to provide users of financial statements with more useful information on the recognition, measurement, presentation, and disclosure of financial instruments. The new standard affects all entities that hold financial assets or owe financial liabilities. ASU 2016-01 is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. This new pronouncement is not expected to have a material impact on the Company’s consolidated financial statements since all of the Company’s investments are valued at fair market value. In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (Topic 842): Section A - Leases, Section B - Conforming Amendments Related to Leases and Section C - Background Information and Basis for Conclusions (ASU 2016-02). ASU 2016-02 intends to improve financial reporting related to leasing transactions. The new standard affects all entities that lease assets such as real estate, airplanes and manufacturing equipment. ASU 2016-02 will require entities that lease assets, referred to as “lessees”, to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. ASU 2016-02 is effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company is currently evaluating the impact of this guidance; however, it is not expected to have a material impact on the Company’s consolidated financial statements as a result of the limited number of leases the Company currently has in place. In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). ASU 2016-13 amends the guidance on the impairment of financial instruments. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which the FASB believes will result in more timely recognition of such losses. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company is currently evaluating the impact of this guidance on the Company’s consolidated financial statements. In August 2016, the FASB issued Accounting Standards Update 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (ASU 2016-15). ASU 2016-15 is intended at reducing diversity in practice and addresses eight specific issues in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. To date, the Company has not entered into any of the eight types of transactions addressed in ASU 2016-15. As a result, this new accounting standard is not expected to have a material impact on the Company’s consolidated financial statements when it becomes effective. In November 2016, the FASB issued Accounting Standards Update 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force). ASU 2016-18 clarifies guidance on the classification and presentation of restricted cash in the statement of cash flows, specifically, the Company should include in its cash and cash-equivalent balances in the statement of cash flows those amounts that are deemed to be restricted cash and cash equivalents. An entity with a material balance of amounts generally described as restricted cash and cash |
Restricted cash and cash equiva
Restricted cash and cash equivalents and investments | 12 Months Ended |
Dec. 31, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Restricted cash and cash equivalents | Restricted cash and cash equivalents and restricted investments as of December 31, 2017 and 2016 consisted of the following: 2017 2016 ($ in thousands) Restricted cash securing letter of credit facilities (1) $ 250,487 $ 231,822 Restricted cash securing other reinsurance contracts (2) 290,649 67,118 Total restricted cash and cash equivalents 541,136 298,940 Restricted investments securing other reinsurance contracts (2) 326,429 427,308 Total restricted cash and cash equivalents and restricted investments $ 867,565 $ 726,248 (1) Restricted cash securing letter of credit facilities primarily pertains to letters of credit issued to clients and cash securing these obligations that the Company will not be released until the underlying reserves have been settled. The time period for which the Company expects these letters of credit to be in place varies from contract to contract, but can last several years. (2) Restricted cash and restricted investments securing other reinsurance contracts pertain to trust accounts securing the Company’s contractual obligations under certain reinsurance contracts that the Company will not be released from until all underlying risks have expired or have been settled. Restricted investments include certain investments in debt securities including U.S. Treasury securities and sovereign debt. The time period for which the Company expects these trust accounts to be in place varies from contract to contract, but can last several years. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Investments | The Company’s investments are managed by its investment manager, Third Point LLC (“Third Point LLC” or the “Investment Manager”), under long-term investment management contracts. The Company directly owns the investments that are held in separate accounts and managed by Third Point LLC. The following is a summary of the separate accounts managed by Third Point LLC: 2017 2016 Assets ($ in thousands) Total investments in securities $ 2,995,097 $ 2,619,839 Cash and cash equivalents 8 5 Restricted cash and cash equivalents 541,136 298,940 Due from brokers 305,093 284,591 Derivative assets, at fair value 73,372 27,432 Interest and dividends receivable 3,774 6,505 Total assets 3,918,480 3,237,312 Liabilities and noncontrolling interests in related party Accounts payable and accrued expenses 5,137 1,374 Securities sold, not yet purchased 394,278 92,668 Securities sold under an agreement to repurchase 29,618 — Due to brokers 770,205 899,601 Derivative liabilities, at fair value 14,503 16,050 Interest and dividends payable 1,218 386 Total noncontrolling interests in related party (1) 113,626 35,674 Total liabilities and noncontrolling interests in related party 1,328,585 1,045,753 Total net investments managed by Third Point LLC $ 2,589,895 $ 2,191,559 (1) See Note 17 for additional information. Fair Value Measurements The Company’s Investment Manager has a formal valuation policy that sets forth the pricing methodology for investments to be used in determining the fair value of each security in the Company’s portfolio. The valuation policy is updated and approved at least on an annual basis by Third Point LLC’s valuation committee (the “Committee”). The Committee is comprised of officers and employees who are senior business management personnel of Third Point LLC and meets monthly. The Committee’s role is to review and verify the propriety and consistency of the valuation methodology to determine the fair value of investments. The Committee also reviews any due diligence performed and approves any changes to current or potential external pricing vendors. Investments are carried at fair value. The fair values of investments are estimated using prices obtained from third-party pricing services, when available. However, situations may arise where the Company believes that the fair value provided by the third-party pricing service does not represent current market conditions. In those situations, Third Point LLC may use dealer quotes to value the investments. The methodology for valuation is generally determined based on the investment’s asset class per the Company’s Investment Manager’s valuation policy. For investments where fair values from pricing services or brokers are unavailable, fair values are estimated using information obtained by the Company’s Investment Manager. U.S. GAAP disclosure requirements establish a framework for measuring fair value, including a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. The three-level hierarchy of inputs is summarized below: • Level 1 – Quoted prices available in active markets/exchanges for identical investments as of the reporting date. • Level 2 – Observable inputs to the valuation methodology other than unadjusted quoted market prices for identical assets or liabilities in active markets. Level 2 inputs include, but are not limited to, prices quoted for similar assets or liabilities in active markets/exchanges, prices quoted for identical or similar assets or liabilities in markets that are not active and fair values determined through the use of models or other valuation methodologies. • Level 3 – Pricing inputs unobservable for the investment and include activities where there is little, if any, market activity for the investment. The inputs applied in the determination of fair value require significant management judgment and estimation. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, for example, the risk inherent in a particular valuation technique used to measure fair value including such a pricing model and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Situations may arise when market quotations or valuations provided by external pricing vendors are available but the fair value may not represent current market conditions. In those cases, Third Point LLC may substitute valuations provided by external pricing vendors with multiple broker-dealer quotations. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources other than those of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and considers factors specific to the investment. Securities listed on a national securities exchange or quoted on NASDAQ are valued at their last sales price as of the last business day of the period. Listed securities with no reported sales on such date and over-the-counter (“OTC”) securities are valued at their last closing bid price if held long by the Company, and last closing ask price if held short by the Company. As of December 31, 2017 , securities valued at $234.4 million ( December 31, 2016 - $315.3 million ), representing 7.6% ( December 31, 2016 - 11.9% ) of investments in securities and derivative assets, and $2.1 million ( December 31, 2016 - $2.0 million ), representing 0.5% ( December 31, 2016 - 1.8% ) of securities sold, not yet purchased and derivative liabilities, are valued based on broker quotes. Private securities, real estate and related debt investments are those not registered for public sale and are carried at an estimated fair value at the end of the period, as determined by Third Point LLC. Valuation techniques used by Third Point LLC may include market approach, last transaction analysis, liquidation analysis and/or using discounted cash flow models where the significant inputs could include but are not limited to additional rounds of equity financing, financial metrics such as revenue multiples or price-earnings ratio, discount rates and other factors. In addition, third party valuation firms may be employed to conduct investment valuations of such private securities. The third party valuation firms provide written reports documenting their recommended valuation as of the determination date for the specified investments. As of December 31, 2017 , the Company had $83.4 million ( December 31, 2016 - $63.2 million ) of investments fair valued by the Company’s Investment Manager representing approximately 2.7% ( December 31, 2016 - 2.4% ) of total investments in securities and derivative assets of which 96.0% were also separately valued by third party valuation firms using information obtained from the Company’s Investment Manager. As a result of the inherent uncertainty of valuation for private securities, the estimated fair value may differ materially from the value that would have been used had a ready market existed for these investments.The actual value at which these securities could be sold or settled with a willing buyer or seller may differ from the Company’s estimated fair values depending on a number of factors including, but not limited to, current and future economic conditions, the quantity sold or settled, the presence of an active market and the availability of a willing buyer or seller. The Company’s free standing derivatives are recorded at fair value, and are included in the consolidated balance sheets in derivative assets and derivative liabilities. Third Point LLC values exchange-traded derivatives at their last sales price on the exchange where they are primarily traded. OTC derivatives, which include swap, option, swaption, forward, future and contract for differences, are valued by an industry recognized third party valuation vendor when available; otherwise, fair values are obtained from broker quotes that are based on pricing models that consider the time value of money, volatility, and the current market and contractual prices of the underlying financial instruments. The Company also has derivatives embedded in non-derivative host contracts that are required to be separated from the host contracts and accounted for at fair value with changes in fair value of the embedded derivative reported in other expenses. The Company’s embedded derivatives relate to interest crediting features in certain reinsurance and deposit contracts that vary based on the returns on the Company’s investments managed by Third Point LLC. The Company determines the fair value of the embedded derivatives using models developed by the Company. See discussion of accounting policy for embedded derivatives in Note 2 for additional information. The Company values its investments in limited partnerships at fair value, which is estimated based on the Company’s share of the net asset value (“NAV”) of the limited partnerships as provided by the investment managers of the underlying investment funds. The resulting net gains or net losses are reflected in the consolidated statements of income (loss) . These investments are included in investment in funds valued at NAV and excluded from the presentation of investments categorized by the level of the fair value hierarchy. These investments are non-redeemable and distributions are made by the investment funds as underlying investments are monetized. As of December 31, 2017 and 2016 , the Company’s asset-backed securities (“ABS”) holdings were as follows: 2017 2016 ($ in thousands) Reperforming loans $ 160,354 71.1 % $ 44,359 17.4 % Subprime RMBS — — % 117,152 46.0 % Market place loans 52,584 23.3 % 44,143 17.3 % Other (1) 12,561 5.6 % 49,198 19.3 % $ 225,499 100.0 % $ 254,852 100.0 % (1) Other includes: U.S. Alt-A positions, collateralized debt obligations, commercial mortgage-backed securities, non-U.S. RMBS and student loans ABS. As of December 31, 2017 , all of the Company’s ABS holdings were private-label issued, non-investment grade securities, and none of these securities were guaranteed by a government sponsored entity. These investments are valued using broker quotes or a recognized third-party pricing vendor. All of these classes of ABS are sensitive to changes in interest rates and any resulting change in the rate at which borrowers sell their properties, refinance, or otherwise pre-pay their loans. As an investor in these classes of ABS, the Company may be exposed to the credit risk of underlying borrowers not being able to make timely payments on loans or the likelihood of borrowers defaulting on their loans. In addition, the Company may be exposed to significant market and liquidity risks. In 2015, the Company made a $25.0 million investment in the Kiskadee Diversified Fund Ltd. (the “Kiskadee Fund”), a fund vehicle managed by Hiscox Insurance Company (Bermuda) Limited. The Kiskadee Fund invests in property catastrophe exposures through collateralized reinsurance transactions and other insurance-linked investments. During the year ended December 31, 2017 , the Company redeemed $26.7 million ( 2016 - $0.3 million ). The Company has elected the fair value option for this investment. This investment is included in investment in funds valued at NAV and is excluded from the presentation of investments categorized by the level of the fair value hierarchy. The fair value is estimated based on the Company’s share of the NAV in the Kiskadee Fund, as provided by the investment manager, and was $0.8 million as of December 31, 2017 ( December 31, 2016 - $ 27.7 million ). The resulting net gains or losses are reflected in the consolidated statements of income (loss) . As of December 31, 2017 , the Company’s investments in Baxter International Inc. and Nestle SA were the only investments in excess of 10% of the Company’s total shareholders’ equity, with fair values of $311.3 million , or 18.7% , and $322.1 million , or 19.4% , respectively. The key inputs for corporate, government and sovereign bond valuation are coupon frequency, coupon rate and underlying bond spreads. The key inputs for ABS are yield, probability of default, loss severity and prepayment. Key inputs for OTC valuations vary based on the type of underlying security on which the contract was written: • The key inputs for most OTC option contracts include notional, strike price, maturity, payout structure, current foreign exchange forward and spot rates, current market price of the underlying security and volatility of the underlying security. • The key inputs for most forward contracts include notional, maturity, forward rate, spot rate, various interest rate curves and discount factor. • The key inputs for swap valuation will vary based on the type of underlying on which the contract was written. Generally, the key inputs for most swap contracts include notional, swap period, fixed rate, credit or interest rate curves, current market or spot price of the underlying security and the volatility of the underlying security. The following tables present the Company’s investments, categorized by the level of the fair value hierarchy as of December 31, 2017 and 2016 : December 31, 2017 Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Total (Level 1) (Level 2) (Level 3) Assets ($ in thousands) Equity securities $ 2,200,379 $ 20,751 $ — $ 2,221,130 Private common equity securities — — 4,794 4,794 Private preferred equity securities — — 57,126 57,126 Total equities 2,200,379 20,751 61,920 2,283,050 Asset-backed securities — 198,191 27,308 225,499 Bank debt — 14,550 — 14,550 Corporate bonds — 67,218 9,868 77,086 U.S. Treasury securities — 249,994 — 249,994 Sovereign debt — 102,569 — 102,569 Other debt securities — 4,747 713 5,460 Total debt securities — 637,269 37,889 675,158 Options 1,973 2,978 — 4,951 Rights and warrants — 168 435 603 Real estate — — 6,831 6,831 Trade claims — 7,496 — 7,496 Total other investments 1,973 10,642 7,266 19,881 Derivative assets (free standing) — 73,372 — 73,372 $ 2,202,352 $ 742,034 $ 107,075 3,051,461 Investments in funds valued at NAV 17,850 Total assets $ 3,069,311 Liabilities Equity securities $ 364,215 $ — $ — 364,215 Corporate bonds — 21,699 — 21,699 Options 2,668 5,696 — 8,364 Total securities sold, not yet purchased 366,883 27,395 — 394,278 Derivative liabilities (free standing) — 12,418 2,085 14,503 Derivative liabilities (embedded) — — 171 171 Total liabilities $ 366,883 $ 39,813 $ 2,256 $ 408,952 December 31, 2016 Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Total (Level 1) (Level 2) (Level 3) Assets ($ in thousands) Equity securities $ 1,450,966 $ 2,255 $ — $ 1,453,221 Private common equity securities — — 4,799 4,799 Private preferred equity securities — — 48,834 48,834 Total equities 1,450,966 2,255 53,633 1,506,854 Asset-backed securities — 237,224 17,628 254,852 Bank debt — 48,546 8,350 56,896 Corporate bonds — 209,025 9,255 218,280 U.S. Treasury securities — 327,016 — 327,016 Sovereign debt — 200,913 — 200,913 Total debt securities — 1,022,724 35,233 1,057,957 Options 343 681 — 1,024 Trade claims — 9,022 — 9,022 Total other investments 343 9,703 — 10,046 Derivative assets (free standing) 961 26,471 — 27,432 $ 1,452,270 $ 1,061,153 $ 88,866 2,602,289 Investments in funds valued at NAV 72,655 Total assets $ 2,674,944 Liabilities Equity securities $ 71,457 $ — $ — $ 71,457 Corporate bonds — 17,683 — 17,683 Options — 3,528 — 3,528 Total securities sold, not yet purchased 71,457 21,211 — 92,668 Derivative liabilities (free standing) 1,608 13,116 1,326 16,050 Derivative liabilities (embedded) — — 92 92 Total liabilities $ 73,065 $ 34,327 $ 1,418 $ 108,810 During the years ended December 31, 2017 and 2016 , the Company made no significant reclassifications of assets or liabilities between Levels 1 and 2. The following table presents the reconciliation of all investments measured at fair value using Level 3 inputs for the years ended December 31, 2017 and 2016 : January 1, Transfers in to (out of) Level 3 Purchases Sales Realized and Unrealized Gains(Losses) (1) December 31, ($ in thousands) Assets Private common equity securities $ 4,799 $ — $ — $ — $ (5 ) $ 4,794 Private preferred equity securities 48,834 — 4,777 (2,102 ) 5,617 57,126 Asset-backed securities 17,628 25,836 72,758 (75,666 ) (13,248 ) 27,308 Bank debt 8,350 — 4 (12,009 ) 3,655 — Corporate bonds 9,255 — 1,577 (1,001 ) 37 9,868 Other debt securities — — 637 — 76 713 Rights and warrants — — — — 435 435 Real estate — — 6,770 — 61 6,831 Total assets $ 88,866 $ 25,836 $ 86,523 $ (90,778 ) $ (3,372 ) $ 107,075 Liabilities Derivative liabilities (free standing) $ (1,326 ) $ — $ — $ (44 ) $ (715 ) $ (2,085 ) Derivative liabilities (embedded) (92 ) — — — (79 ) (171 ) Total liabilities $ (1,418 ) $ — $ — $ (44 ) $ (794 ) $ (2,256 ) January 1, Transfers in to (out of) Level 3 Purchases Sales Realized and Unrealized Gains(Losses) (1) December 31, ($ in thousands) Assets Private common equity securities $ 4,357 $ — $ 60 $ — $ 382 $ 4,799 Private preferred equity securities 24,178 — 20,574 (60 ) 4,142 48,834 Asset-backed securities 2,617 17,390 5,433 (3,527 ) (4,285 ) 17,628 Bank debt 7,660 — 3,248 (928 ) (1,630 ) 8,350 Corporate bonds 3,252 — 12,651 (7,288 ) 640 9,255 Sovereign debt 21 — — (20 ) (1 ) — Total assets $ 42,085 $ 17,390 $ 41,966 $ (11,823 ) $ (752 ) $ 88,866 Liabilities Derivative liabilities (free standing) $ (1,020 ) $ — $ — $ (306 ) $ — $ (1,326 ) Derivative liabilities (embedded) (5,563 ) — 6,072 (861 ) 260 (92 ) Total liabilities $ (6,583 ) $ — $ 6,072 $ (1,167 ) $ 260 $ (1,418 ) (1) Total change in realized and unrealized gains (losses) recorded on Level 3 financial instruments is included in net investment income (loss) in the consolidated statements of income (loss) . Total change in unrealized gains (losses) on fair value of assets using significant unobservable inputs (Level 3) held at the year ended December 31, 2017 was $(9.5) million ( 2016 - $1.0 million and 2015 - $(0.2) million ). For assets and liabilities that were transferred into Level 3 during the period, gains (losses) are presented as if the assets or liabilities had been transferred into Level 3 at the beginning of the period; similarly, for assets and liabilities that were transferred out of Level 3 during the year, gains (losses) are presented as if the assets or liabilities had been transferred out of Level 3 at the beginning of the year. The following table summarizes significant unobservable inputs used in determining the fair value of the Level 3 investments held by the Company. Level 3 investments not presented in the table below are insignificant or do not have any unobservable inputs to disclose, as they are valued primarily using dealer quotes, or at cost. December 31, 2017 Assets Fair value ($ in thousands) Valuation technique Unobservable input Range Private equity investments $ 37,507 Market approach Volatility 35.0% - 65.0% Time to exit 0.5 - 1.8 years Multiple 7.8 - 24.4x Real estate 6,831 Discounted cash flow Discount rate 9.5 % Capitalization rate 6.5% - 10.0% Other debt securities 713 Discounted cash flow Capitalization rate 10.0 % Rights and warrants 433 Discounted cash flow Discount rate 13.5 % Time to exit 5.0 years Market approach Multiple 3.8 - 4.6x December 31, 2016 Assets Fair value ($ in thousands) Valuation technique Unobservable input Range Private equity investments $ 47,608 Market approach Discount 5.0% - 25.0% Volatility 40.0% - 60.0% Time to exit 0.4 - 2.8 years Multiple 2.0 - 3.8x Private equity investments The Company measures the fair value of these investments using a market approach which typically utilizes guideline comparable company trading multiples and/or a discounted cash flow analysis. Under the guideline comparable company multiples approach, the Company determines comparable public companies based on industry, size, developmental stage, strategy, etc., and then calculates a trading multiple for each comparable company. The trading multiple may then be discounted for various considerations as appropriate. The concluded multiple is then applied to the subject company to calculate the value of the subject company. The discounted cash flow model involves using the financial information of the portfolio companies to develop revenue and income projections for the subject company for future years based on information on growth rates relative to the company’s development stage. The enterprise value of the subject company is calculated by discounting the projected cash flows and the terminal value to net present value. The fair value of the company’s debt is reduced from the enterprise value to determine the equity value. Real estate and other debt securities The values of the investments are based upon available information concerning the market for real estate property investments and the underlying assets of the other debt investments. The valuation methods include, but are not limited to the following: (1) forecasts of future net cash flows based on the Investment Manager’s analysis of future earnings from the investment plus anticipated net proceeds from the sale, disposition or resolution of the investment; (2) discounted earnings multiples applied to stabilized income or adjusted earnings from the investment; (3) recent sales of comparable investments. Rights and warrants The values of the investments are based on the valuation techniques discussed in private equity investments above as they relate to the same underlying securities. For the years ended December 31, 2017 and 2016 , there were no changes in the valuation techniques as they relate to the above. |
Securities purchased under an a
Securities purchased under an agreement to sell | 12 Months Ended |
Dec. 31, 2017 | |
Securities Purchased under Agreements to Resell [Abstract] | |
Securities purchased under an agreement to sell | The Company may enter into repurchase and reverse repurchase agreements with financial institutions in which the financial institution agrees to resell or repurchase securities and the Company agrees to repurchase or resell such securities at a mutually agreed price upon maturity. These agreements are generally collateralized by corporate or government bonds or asset-backed securities. As the Company held only repurchase agreements as of December 31, 2017 , these positions are not impacted by counterparty netting agreements. Interest payable and receivable related to these transactions are included in interest payable and receivable in the consolidated balance sheets. Generally, repurchase and reverse repurchase agreements mature within 30 to 90 days . The Company may lend securities for securities lending transactions or pledge securities and/or cash for securities borrowed transactions. The value of any securities loaned is reflected in investments in securities. Any collateral received is reflected in due to brokers in the consolidated balance sheets. The Company’s repurchase and securities lending agreements may result in credit exposure in the event the counterparty to the transaction is unable to fulfill its contractual obligations. It is the Company’s policy to monitor and control collateral under such agreements. The following table presents the remaining contractual maturity of the repurchase agreements and securities lending transactions by class of collateral pledged as of December 31, 2017 and 2016 : December 31, 2017 Overnights and continuous Up to 30 days 30 - 90 days Greater than 90 days Total ($ in thousands) Repurchase agreements Asset-backed securities $ — $ 10,774 $ 18,844 $ — $ 29,618 December 31, 2016 Overnights and continuous Up to 30 days 30 - 90 days Greater than 90 days Total ($ in thousands) Securities lending transactions U.S. Treasury and agency securities $ 310 $ — $ — $ — $ 310 |
Due from_to brokers
Due from/to brokers | 12 Months Ended |
Dec. 31, 2017 | |
Due to and from Broker-Dealers and Clearing Organizations [Abstract] | |
Due from/to brokers | The Company holds substantially all of its investments through prime brokers pursuant to agreements between the Company and each prime broker. The brokerage arrangements differ from broker to broker, but generally cash and investments in securities are available as collateral against investments in securities sold, not yet purchased and derivative positions, if required. As of December 31, 2017 and 2016 , the Company’s due from/to brokers were comprised of the following: 2017 2016 ($ in thousands) Due from brokers Cash held at brokers $ 295,467 $ 240,205 Receivable from unsettled trades (1) 9,626 44,386 $ 305,093 $ 284,591 Due to brokers Borrowing from prime brokers $ 759,267 $ 855,576 Payable from unsettled trades 10,938 44,025 $ 770,205 $ 899,601 (1) Receivables relating to securities sold by the Company are recorded as receivable from unsettled trades in due from brokers in the Company’s consolidated balance sheets. During the year ended December 31, 2015, the Company’s investment manager, Third Point LLC, exercised appraisal rights relating to an underlying investment, which was bought by a private equity firm. As of December 31, 2016 , $37.6 million was included in receivable from unsettled trades in due from brokers while the Company awaited the court decision regarding the sale price. In the second quarter of 2017, the court decision resulted in the Company receiving the total value of $37.6 million as well as interest of $5.0 million for the trial period. Due from/to brokers include cash balances maintained with the Company’s prime brokers, receivables and payables from unsettled trades and proceeds from securities sold, not yet purchased. In addition, due from/to brokers includes cash collateral received and posted from OTC and repurchase agreement counterparties. As of December 31, 2017 , the Company’s borrowing from prime brokers includes a total non-U.S. currency balance of $70.1 million ( December 31, 2016 - $22.0 million ). The Company uses prime brokerage borrowing arrangements to provide collateral for its letter of credit facilities and to fund trust accounts securing certain reinsurance contracts. As of December 31, 2017 , the Company had $867.6 million ( December 31, 2016 - $726.2 million ) of restricted cash and investments securing letter of credit facilities and certain reinsurance contracts. Margin debt balances were collateralized by cash held by the broker and certain of the Company’s securities. Margin interest was paid either at the daily broker call rate or based on London Inter-bank Offered Rate. Amounts are borrowed through committed facilities with terms of up to 90 days, secured by assets of the Company held by the prime broker, and incur interest based on the Company’s negotiated rates. This interest expense is reflected in net investment income (loss) in the consolidated statements of income (loss) . |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | The following tables identify the listing currency, fair value and notional amounts of derivative instruments included in the consolidated balance sheets, categorized by primary underlying risk. Balances are presented on a gross basis. As of December 31, 2017 Listing currency (1) Fair Value Notional Amounts (2) Derivative Assets by Primary Underlying Risk ($ in thousands) Credit Credit Default Swaps - Protection Purchased USD $ 8,205 $ 50,593 Total Return Swaps - Long Contracts EGP 25,245 25,245 Equity Price Contracts for Differences - Long Contracts BRL / CHF / EUR / USD 17,298 163,868 Contracts for Differences - Short Contracts DKK / NOK / SEK / USD 4,384 31,992 Total Return Swaps - Long Contracts BRL / USD 15,936 96,388 Total Return Swaps - Short Contracts USD 1 — Interest Rates Interest Rate Swaptions JPY 539 64,950 Foreign Currency Exchange Rates Foreign Currency Forward Contracts HKD / JPY 1,764 511,937 Total Derivative Assets $ 73,372 $ 944,973 Listing currency (1) Fair Value Notional Amounts (2) Derivative Liabilities by Primary Underlying Risk ($ in thousands) Credit Credit Default Swaps - Protection Purchased USD $ 1,250 $ 19,418 Credit Default Swaps - Protection Sold USD 2,085 2,351 Equity Price Contracts for Differences - Long Contracts BRL / EUR / USD 2,200 93,200 Contracts for Differences - Short Contracts DKK / EUR / USD 776 8,483 Total Return Swaps - Long Contracts BRL / USD 73 50,858 Total Return Swaps - Short Contracts USD 1,885 52,657 Interest Rates Interest Rate Swaptions JPY 70 64,482 Foreign Currency Exchange Rates Foreign Currency Forward Contracts BRL / CHF / CNH / EUR / HKD / SAR 6,164 573,498 Total Derivative Liabilities (free standing) $ 14,503 $ 864,947 Embedded derivative liabilities in reinsurance contracts (3) USD $ 171 $ 20,000 Total Derivative Liabilities (embedded) $ 171 $ 20,000 (1) BRL = Brazilian Real, CHF = Swiss Franc, CNH = Chinese Yuan, DKK = Danish Krone, EGP = Egyptian Pound, EUR = Euro, HKD = Hong Kong Dollar, JPY = Japanese Yen, NOK = Norwegian Krone, SAR = Saudi Arabian Riyal, SEK = Swedish Krona, USD = US Dollar. (2) The absolute notional exposure represents the Company’s derivative activity as of December 31, 2017 , which is representative of the volume of derivatives held during the period. (3) The fair value of embedded derivatives in reinsurance contracts is included in reinsurance balances payable in the consolidated balance sheets. As of December 31, 2016 Listing currency (1) Fair Value Notional Amounts (2) Derivative Assets by Primary Underlying Risk ($ in thousands) Credit Credit Default Swaps - Protection Purchased EUR / USD $ 10,905 $ 84,327 Equity Price Contracts for Differences - Long Contracts EUR / GBP 1,765 36,879 Total Return Swaps - Long Contracts BRL / USD 617 19,140 Total Return Swaps - Short Contracts JPY 183 8,696 Interest Rates Interest Rate Swaps GBP / USD 2,462 195,571 Interest Rate Swaptions JPY / USD 5,354 424,816 Sovereign Debt Futures - Short Contracts USD 961 107,591 Foreign Currency Exchange Rates Foreign Currency Forward Contracts CAD / CNH / GBP / MXN 653 47,754 Foreign Currency Options - Purchased CNH / EUR / HKD / JPY / SAR 4,532 501,465 Total Derivative Assets $ 27,432 $ 1,426,239 Listing currency (1) Fair Value Notional Amounts (2) Derivative Liabilities by Primary Underlying Risk ($ in thousands) Credit Credit Default Swaps - Protection Purchased USD $ 3,286 $ 43,184 Credit Default Swaps - Protection Sold USD 1,952 3,943 Equity Price Contracts for Differences - Long Contracts GBP — 67 Contracts for Differences - Short Contracts EUR / ZAR 1,106 11,424 Total Return Swaps - Long Contracts USD 1,675 26,800 Total Return Swaps - Short Contracts JPY / USD 1,302 10,095 Interest Rates Interest Rate Swaps GBP 722 59,115 Interest Rate Swaptions JPY / USD 1,056 417,052 Sovereign Debt Futures - Short Contracts EUR / GBP 1,608 159,923 Foreign Currency Exchange Rates Foreign Currency Forward Contracts EUR / JPY / SAR 2,009 214,854 Foreign Currency Options - Sold CNH / JPY 1,334 363,840 Total Derivative Liabilities (free standing) $ 16,050 $ 1,310,297 Embedded derivative liabilities in reinsurance contracts (3) USD $ 92 $ 20,000 Total Derivative Liabilities (embedded) $ 92 $ 20,000 (1) BRL = Brazilian Real, CAD = Canadian Dollar, CNH = Chinese Yuan, EUR = Euro, GBP = British Pound, HKD = Hong Kong Dollar, JPY = Japanese Yen, MXN = Mexican Peso, SAR = Saudi Arabian Riyal, USD = US Dollar, ZAR = South African Rand. (2) The absolute notional exposure represents the Company’s derivative activity as of December 31, 2016 , which is representative of the volume of derivatives held during the period. (3) The fair value of embedded derivatives in reinsurance contracts is included in reinsurance balances payable in the consolidated balance sheets. The following table sets forth, by major risk type, the Company’s realized and unrealized gains (losses) relating to derivatives for the years ended December 31, 2017 , 2016 and 2015 . Realized and unrealized gains (losses) related to free standing derivatives are included in net investment income (loss) in the consolidated statements of income (loss) . Realized and unrealized gains (losses) related to embedded derivatives are included in other expenses in the consolidated statements of income (loss) . 2017 2016 2015 Free standing Derivatives - Primary Underlying Risk Realized Gain (Loss) Unrealized Gain (Loss)* Realized Gain (Loss) Unrealized Gain (Loss)* Realized Gain (Loss) Unrealized Gain (Loss)* Commodity Price ($ in thousands) Commodities Futures - Long Contracts $ — $ — $ — $ — $ (1,515 ) $ — Commodity Future Options - Purchased — — 651 — (286 ) 285 Commodity Future Options - Sold — — — — 272 (269 ) Credit Credit Default Swaps - Protection Purchased (3,462 ) (978 ) 4,311 (6,841 ) 1,282 4,839 Credit Default Swaps - Protection Sold 605 (720 ) (4,009 ) 4,149 2,071 (2,098 ) Total Return Swaps - Long Contracts 72 2,000 — — — — Equity Price Contracts for Differences - Long Contracts 58,047 13,334 (4,123 ) 2,245 (6,101 ) 660 Contracts for Differences - Short Contracts 2,608 4,715 (253 ) (3,579 ) 8,459 2,418 Total Return Swaps - Long Contracts 16,863 16,923 (6,835 ) 1,957 1,410 (2,469 ) Total Return Swaps - Short Contracts (15,892 ) (765 ) (4,812 ) (1,198 ) (1,395 ) 45 Index Index Futures - Long Contracts — — — — 1,144 — Interest Rates Bond Futures - Short Contracts — — — — (2,584 ) — Commodity Futures - Short Contracts — — (281 ) (52 ) (580 ) 194 Fixed Income Swap - Short Contracts — — (94 ) — — — Interest Rate Swaps (3,104 ) (1,740 ) 205 1,740 119 — Interest Rate Swaptions (354 ) (2,056 ) (340 ) 869 (771 ) (39 ) Sovereign Debt Futures - Short Contracts (7,798 ) 647 10,519 (647 ) — — Treasury Futures - Short Contracts — — — — (2,734 ) 280 Foreign Currency Exchange Rates Foreign Currency Forward Contracts (10,470 ) (3,048 ) (2,747 ) (2,261 ) 21,429 (3,334 ) Foreign Currency Options - Purchased (6,716 ) 1,164 (2,338 ) (2,229 ) 318 (1,144 ) Foreign Currency Options - Sold 2,183 (80 ) 617 (103 ) 1,214 316 Reinsurance contract derivatives — — — — 30 — $ 32,582 $ 29,396 $ (9,529 ) $ (5,950 ) $ 21,782 $ (316 ) Embedded Derivatives Embedded derivatives in reinsurance contracts $ — $ (79 ) $ — $ 260 $ (5 ) $ 362 Embedded derivatives in deposit contracts — — — — 2,104 — Total Derivative Liabilities (embedded) $ — $ (79 ) $ — $ 260 $ 2,099 $ 362 * Unrealized gain (loss) relates to derivatives still held at reporting date. The Company’s derivative contracts are generally subject to International Swaps and Derivatives Association (“ISDA”) Master Agreements or other similar agreements that contain provisions setting forth events of default and/or termination events (“credit-risk-related contingent features”), including but not limited to provisions setting forth maximum permissible declines in the Company’s net asset value. Upon the occurrence of a termination event with respect to an ISDA Agreement, the Company’s counterparty could elect to terminate the derivative contracts governed by such agreement, resulting in the realization of any net gains or losses with respect to such derivative contracts and the return of collateral held by such party. The Company obtains/provides collateral from/to various counterparties for OTC derivative and futures contracts in accordance with bilateral collateral agreements. During the year ended December 31, 2017 , no termination events were triggered under the ISDA Master Agreements. As of December 31, 2017 , the aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a net liability position was $3.6 million ( December 31, 2016 - $6.1 million ) for which the Company posted collateral in the form of cash of $103.0 million ( December 31, 2016 - $48.8 million ) in the normal course of business. Similarly, the Company held collateral (approximately $3.2 million ) in cash from certain counterparties as of December 31, 2017 . If the credit-risk-related contingent features underlying these instruments had been triggered as of December 31, 2017 and the Company had to settle these instruments immediately, no additional amounts would be required to be posted that would exceed the settlement amounts of open derivative contracts or in the case of cross margining relationships, the assets in the Company’s prime brokerage accounts are sufficient to offset the derivative liabilities. The Company’s derivatives do not qualify as hedges for financial reporting purposes and are recorded in the consolidated financial statements on a gross basis and not offset against any collateral pledged or received. Pursuant to ISDA master agreements and other counterparty agreements, the Company and its counterparties typically have the ability to net certain payments owed to each other in specified circumstances. In addition, in the event a party to one of the ISDA master agreements or other derivatives agreements defaults, or a transaction is otherwise subject to termination, the non-defaulting party generally has the right to offset against payments owed to the defaulting party or collateral held by the non-defaulting party. The Company has pledged cash collateral to counterparties to support the current value of amounts due to the counterparties based on the value of the underlying security. As of December 31, 2017 and 2016 , the gross and net amounts of derivative instruments and repurchase and reverse repurchase agreements that are subject to enforceable master netting arrangements or similar agreements were as follows: Gross Amounts not Offset in the Consolidated Balance Sheet December 31, 2017 Derivative Contracts Gross Amount (1) Financial Instruments Cash Collateral Received Net Amount Financial assets, derivative assets and collateral received ($ in thousands) Counterparty 1 $ 167 $ 167 $ — $ — Counterparty 2 1,343 706 — 637 Counterparty 3 37,313 2,705 — 34,608 Counterparty 4 2,683 2,683 — — Counterparty 5 14,798 6,647 — 8,151 Counterparty 6 5,338 9 2,122 3,207 Counterparty 7 1,377 — 1,100 277 Counterparty 8 12,628 2,963 — 9,665 Counterparty 9 703 703 — — $ 76,350 $ 16,583 $ 3,222 $ 56,545 Gross Amounts not Offset in the Consolidated Balance Sheet December 31, 2017 Derivative Contracts Gross Amount (2) Financial Instruments Cash Collateral Pledged Net Amount Financial liabilities, derivative liabilities and collateral pledged ($ in thousands) Counterparty 1 $ 1,340 $ 167 $ 1,173 $ — Counterparty 2 706 706 — — Counterparty 3 2,705 2,705 — — Counterparty 4 3,812 2,683 1,129 — Counterparty 5 6,647 6,647 — — Counterparty 6 9 9 — — Counterparty 8 2,963 2,963 — — Counterparty 9 1,181 703 478 — Counterparty 15 836 — 732 104 $ 20,199 $ 16,583 $ 3,512 $ 104 Securities sold under an agreement to repurchase Counterparty 4 $ 29,618 $ 29,618 $ — $ — $ 29,618 $ 29,618 $ — $ — (1) The gross amounts of assets presented in the consolidated balance sheets presented above includes the fair value of derivative contract assets as well as gross OTC option contract assets of $3.0 million included in other investments in the consolidated balance sheets. (2) The gross amounts of liabilities presented in the consolidated balance sheets presented above includes the fair value of derivative contract liabilities as well as gross OTC option contract liabilities of $5.7 million included in securities sold, not yet purchased in the consolidated balance sheets. Gross Amounts not Offset in the Consolidated Balance Sheet December 31, 2016 Derivative Contracts Gross Amount (1) Financial Instruments Cash Collateral Received Net Amount Financial assets, derivative assets and collateral received ($ in thousands) Counterparty 1 $ 535 $ 535 $ — $ — Counterparty 2 3,147 607 — 2,540 Counterparty 3 8,652 4,760 — 3,892 Counterparty 4 1,639 1,639 — — Counterparty 5 7,336 3,027 — 4,309 Counterparty 6 6,262 2,599 3,383 280 Counterparty 7 227 — 197 30 Counterparty 8 277 277 — — Counterparty 9 37 37 — — $ 28,112 $ 13,481 $ 3,580 $ 11,051 Gross Amounts not Offset in the Consolidated Balance Sheet December 31, 2016 Derivative Contracts Gross Amount (2) Financial Instruments Cash Collateral Pledged Net Amount Financial liabilities, derivative liabilities and collateral pledged ($ in thousands) Counterparty 1 $ 2,959 $ 535 $ 2,424 $ — Counterparty 2 607 607 — — Counterparty 3 4,760 4,760 — — Counterparty 4 3,827 1,639 2,188 — Counterparty 5 3,027 3,027 — — Counterparty 6 2,599 2,599 — — Counterparty 8 977 277 — 700 Counterparty 9 822 37 785 — $ 19,578 $ 13,481 $ 5,397 $ 700 Securities lending transactions Counterparty 3 $ 302 $ 302 $ — $ — $ 302 $ 302 $ — $ — (1) The gross amounts of assets presented in the consolidated balance sheets presented above includes the fair value of derivative contract assets as well as gross OTC option contract assets of $0.7 million included in other investments in the consolidated balance sheets. (2) The gross amounts of liabilities presented in the consolidated balance sheets presented above includes the fair value of derivative contract liabilities as well as gross OTC option contract liabilities of $3.5 million included in securities sold, not yet purchased in the consolidated balance sheets. |
Loss and loss adjustment expens
Loss and loss adjustment expense reserves | 12 Months Ended |
Dec. 31, 2017 | |
Loss and Loss Adjustment Expense Reserves [Abstract] | |
Loss and loss adjustment expense reserves | As of December 31, 2017 and 2016 , loss and loss adjustment expense reserves in the consolidated balance sheets was comprised of the following: 2017 2016 ($ in thousands) Case loss and loss adjustment expense reserves $ 115,622 $ 80,370 Incurred but not reported loss and loss adjustment expense reserves 604,260 522,818 Deferred gains on retroactive reinsurance contracts 688 1,941 $ 720,570 $ 605,129 Reserving methodologies The Company’s methodology for reserving for its reinsurance contracts and determining its loss and loss adjustment expense reserves, including incurred but not reported reserves, is as follows: The Company’s actuaries perform an actuarial projection of the Company’s reserves quarterly and have a third-party actuarial review performed periodically. All reserves are estimated on an individual contract basis; there is no aggregation of contracts for projection of ultimate loss or reserves. The Company typically initially reserves individual contracts to the expected loss and loss expense ratio in its pricing analysis. As loss information is received from cedents, the Company incorporates other actuarial methods into its projection of ultimate losses and, hence, reserves. In the Company’s pricing analysis, there is a significant amount of information unique to the individual client and, when necessary, the analysis is supplemented with industry data. Industry data primarily takes the form of paid and incurred development patterns from statutory financial statements and statistical agencies. For the Company’s actuarial reserve projections, the relevant information received from clients includes premium estimates, paid loss and loss adjustment expenses and case reserves. The Company’s actuaries review the data for reasonableness and research any noted anomalies. On each contract, the Company’s actuaries compare the expected paid and incurred amounts at each quarter-end with actual amounts reported. The Company’s actuaries also compare premiums received with projected premium receipts at each quarter end. There is a time lag between when a covered loss event occurs and when it is reported to the Company’s cedents. There is also a time lag between when clients pay claims, establish case reserves and re-estimate their reserves, and when they notify the Company of the payments and/or new or revised case reserves. This reporting lag is typically 60 to 90 days after the end of a reporting period, but can be longer in some cases. The Company’s actuaries use techniques that adjust for this reporting lag. While it would be unusual to have lags that extend beyond 90 days, the Company’s actuarial techniques are designed to adjust for such a circumstance. The principal actuarial methods (and associated key assumptions) used to perform the Company’s quarterly loss reserve analysis may include one or more of the following methods: A priori loss ratio method To estimate ultimate losses using the a priori loss ratio method, the Company multiplies earned premiums by an expected loss ratio. The expected loss ratio is selected as part of the pricing and utilizes individual client data, supplemented by industry data where necessary. This method is often useful when there is limited historical data due to few losses being incurred. Paid loss development method This method estimates ultimate losses by calculating past paid loss development factors and applying them to exposure periods with further expected paid loss development. The paid loss development method assumes that losses are paid at a rate consistent with the historical rate of payment. It provides an objective test of reported loss projections because paid losses contain no case reserve estimates. For some lines of business, claim payments are made slowly and it may take many years for claims to be fully reported and settled. Incurred loss development method This method estimates ultimate losses by using past incurred loss development factors and applying them to exposure periods with further expected incurred loss development. Since incurred losses include payments and case reserves, changes in both of these amounts are incorporated in this method. This approach provides a larger volume of data to estimate ultimate losses than paid loss methods. Thus, incurred loss patterns may be less varied than paid loss patterns, especially for coverages that have historically been paid out over a long period of time but for which claims are incurred relatively early and case loss reserve estimates are established. Bornhuetter-Ferguson paid and incurred loss methods These methods are a weighted average of the a priori loss ratio method and the relevant development method. The weighting between the two methods depends on the maturity of the business. This means that for the more recent years a greater weight is placed on the a priori loss ratio method, while for the more mature years a greater weight is placed on the development methods. These methods avoid some of the distortions that could result from a large development factor being applied to a small base of paid or incurred losses to calculate ultimate losses. This method will react slowly if actual paid or incurred loss experience develops differently than historical paid or incurred loss experience because of major changes in rate levels, retentions or deductibles, the forms and conditions of coverage, the types of risks covered or a variety of other factors. IBNR to outstanding ratio method This method is used in selected cases typically for very mature years that still have open claims. This method assumes that the estimated future loss development is indicated by the current level of case reserves. Key to the projection of ultimate loss is the amount of credibility or weight assigned to each actuarial method. Each method has advantages and disadvantages, and those can change depending on numerous factors including the reliability of the underlying data. The selection and weighting of the projection methods is a highly subjective process. In order to achieve a desirable amount of consistency from study to study and between contracts, the Company’s actuaries have implemented a weighting scheme that incorporates numerous “rules” for the weighting of actuarial methods. These rules attempt to effectively standardize the process used for selecting weights for the various methods. There are numerous circumstances where the rules would be modified for specific reinsurance contracts; examples would include a large market event or new information on historical years that may cause us to increase our a priori loss ratio. As part of the Company’s quarterly reserving process, loss-sensitive contingent expenses (e.g., profit commissions, sliding-scale ceding commissions, etc.) are calculated on an individual contract basis. These expense calculations are based on the updated ultimate loss estimates derived from the Company's quarterly reserving process. The Company’s reserving methodologies use a loss reserving model that calculates a point estimate for the Company’s ultimate losses. Although the Company believes that its assumptions and methodologies are reasonable, the ultimate payments may vary, potentially materially, from the estimates that the Company has made. There were no significant changes made to the Company’s methodology for calculating loss and loss adjustment reserves for the year ended December 31, 2017 . Roll forward of loss and loss adjustment expense reserves The following table represents the activity in the loss and loss adjustment expense reserves for the years ended December 31, 2017 , 2016 and 2015 : 2017 2016 2015 ($ in thousands) Gross reserves for loss and loss adjustment expenses, beginning of year $ 605,129 $ 466,047 $ 277,362 Less: loss and loss adjustment expenses recoverable, beginning of year (1 ) (125 ) (814 ) Net reserves for loss and loss adjustment expenses, beginning of year 605,128 465,922 276,548 Increase (decrease) in net loss and loss adjustment expenses incurred in respect of losses occurring in: Current year 422,801 372,002 418,521 Prior years (51,260 ) 24,976 (2,474 ) Amortization of deferred gains on retroactive reinsurance contracts (1,483 ) (1,046 ) (856 ) Total incurred loss and loss adjustment expenses 370,058 395,932 415,191 Net loss and loss adjustment expenses paid in respect of losses occurring in: Current year (110,799 ) (105,921 ) (100,403 ) Prior years (162,447 ) (133,241 ) (121,665 ) Total net paid losses (273,246 ) (239,162 ) (222,068 ) Foreign currency translation 17,517 (17,564 ) (3,749 ) Net reserves for loss and loss adjustment expenses, end of year 719,457 605,128 465,922 Plus: loss and loss adjustment expenses recoverable, end of year 1,113 1 125 Gross reserves for loss and loss adjustment expenses, end of year $ 720,570 $ 605,129 $ 466,047 Changes in the Company’s loss and loss adjustment expense reserves result from re-estimating loss reserves and from changes in premium earnings estimates. Furthermore, many of the Company’s contracts have sliding scale or profit commissions whereby loss reserve development can be offset by changes in acquisition costs that vary inversely with loss experience. In some instances, the Company can have loss reserve development on contracts where there is no sliding scale or profit commission or where the loss ratio falls outside of the loss ratio range to which the sliding scale or profit commission applies. The $52.7 million net favorable development in prior years’ reserves, which includes amortization of deferred gains, for the year ended December 31, 2017 includes $22.3 million of net favorable reserve development related to decreases in loss reserve estimates and $30.4 million decrease in loss reserves resulting from decrease s in premium earnings estimates on certain contracts. The net favorable development in loss reserves as well as the impact of any offsetting changes in acquisition costs as a result of sliding scale or profit commissions is explained as follows: • The $22.3 million of net favorable prior years’ reserve development for the year ended December 31, 2017 was accompanied by net increase s of $19.8 million in acquisition costs, resulting in a $2.5 million improvement in the net underwriting results, primarily due to: • $5.8 million of net favorable underwriting loss development relating to several workers’ compensation contracts written from 2012 to 2014, driven by better than expected loss experience; • $1.3 million of net favorable underwriting loss development from several other contracts as a result of better than expected loss experience; partially offset by • $4.6 million of net adverse underwriting loss development relating to non-standard auto contracts, primarily due to the inability of cedents to promptly react to increasing frequency and severity trends, resulting in underpriced business and adverse selection. • The $30.4 million net favorable development in loss and loss adjustment expenses incurred resulting from decreases in premium earnings estimates was accompanied by a $21.7 million decrease in acquisition costs, for a total of $52.1 million decrease in loss and loss adjustment expenses incurred and acquisition costs. The decrease in loss and loss adjustment expenses incurred and acquisition costs was due to a decrease in prior period earned premium of $50.0 million . The decrease in prior period earned premium was the result of changes in ultimate premium and earning pattern estimates. The net impact was an improvement of $2.1 million to the net underwriting results for the year ended December 31, 2017. • In total, the change in net underwriting loss for prior periods due to loss reserve development and adjustments to premium earnings estimates resulted in an improvement of $4.6 million in the net underwriting results for the year ended December 31, 2017 . The $23.9 million increase in prior years’ reserves, which includes amortization of deferred gains, for the year ended December 31, 2016 includes $10.5 million of net adverse reserve development related to re-estimating loss reserves and $13.4 million of additional loss reserves resulting from increases in premium earnings estimates on certain contracts. The net increase in loss reserves as well as the impact of any offsetting changes in acquisition costs as a result of sliding scale or profit commissions is explained as follows: • The $10.5 million of net adverse prior years’ reserve development for the year ended December 31, 2016 was accompanied by net increases of $2.0 million in acquisition costs, resulting in a net increase of $12.5 million in net underwriting loss, primarily due to: • $4.8 million of net adverse underwriting loss development relating to one multi-line contract written since 2014. This contract contains underlying commercial auto physical damage and auto extended warranty exposure. The adverse loss experience is a result of an increase in the number of reported claims and inadequate pricing in certain segments of the underlying business; • $4.0 million of net adverse underwriting loss development relating to non-standard auto contracts, primarily due to the inability of cedents to promptly react to increasing frequency and severity trends, resulting in underpriced business and adverse selection; • $3.7 million of net adverse underwriting loss development relating to our Florida homeowners’ reinsurance contracts primarily as a result of higher than anticipated water damage claims and an increase in the practice of assignment of benefits whereby homeowners assign their rights for filing and settling claims to attorneys and public adjusters, which has led to increases in the frequency of claims reported as well as the severity of losses and loss adjustment expenses. Contracts for which we experienced this adverse loss development have not been renewed; • $3.3 million of net adverse underwriting loss development relating to a workers’ compensation contract written from 2012 to 2014 under which we have been experiencing higher than expected reported claims development that led to an increase in our previous loss assumptions on this contract; and • $2.1 million of net favorable underwriting loss development from several other contracts. • The $13.4 million increase in loss and loss adjustment expenses incurred related to the increase in premium earnings estimates on certain contracts was accompanied by a $6.4 million increase in acquisition costs, for a total of $19.8 million increase in loss and loss adjustment expenses incurred and acquisition costs. The related increase in earned premium related to the increase in premium estimates was $19.5 million , resulting in a $0.3 million increase to the net underwriting loss for the year ended December 31, 2016 . • In total, the change in net underwriting loss for prior periods due to loss reserve development and adjustments to premium earnings estimates was an increase in net underwriting loss of $12.8 million for the year ended December 31, 2016 . The $3.3 million net favorable development in prior years’ reserves, which includes amortization of deferred gains, for the year ended December 31, 2015 includes $5.4 million of net favorable reserve development related to re-estimating loss reserves and $2.1 million of additional loss reserves resulting from increases in premium earnings estimates on certain contracts. The net favorable reserve development as well as the impact of any offsetting changes in acquisition costs as a result of sliding scale or profit commissions is explained as follows: • The net $5.4 million of favorable prior years’ reserve development for the year ended December 31, 2015 was accompanied by net increases of $13.2 million in acquisition costs, resulting in a net increase of $7.8 million in net underwriting loss. The $7.8 million net increase in net underwriting loss was a result of having favorable loss reserve development on certain contracts that was either fully or partially offset by increases in sliding scale or profit commissions whereas certain workers’ compensation, auto and property contracts with adverse loss development did not have offsetting decreases in acquisition costs to the same degree, resulting in the net favorable development being more than offset by acquisition costs in the period. • The $2.1 million increase in loss and loss adjustment expenses incurred related to the increase in premium estimates on certain contracts was accompanied by similar changes in the net premiums earned and acquisition costs for those contracts, resulting in a net decrease of $0.3 million in net underwriting loss for the year ended December 31, 2015 . • In total, loss reserve development related to re-estimating loss reserves and increases in premium earnings estimates for prior years resulted in an increase of $7.5 million in net underwriting loss for the year ended December 31, 2015 . The net paid losses included $24.8 million , $1.0 million and $79.1 million of paid losses related to contracts that were commuted during the years ended December 31, 2017 , 2016 and 2015 , respectively. Incurred and paid development tables by accident year The Company manages its business on the basis of one operating segment, property and casualty reinsurance. The Company has disaggregated its loss information presented in the tables below by prospective and retroactive reinsurance. For its prospective reinsurance business, the Company further disaggregated by the different lines of business included in this segment. The Company’s retroactive reinsurance contracts have been presented by year of inception. The Company’s retroactive reinsurance contracts within each inception year share similar characteristics and as a result, have not been disaggregated further. The Company has presented the below development tables for all accident years shown using exchange rates as at December 31, 2017. All accident years prior to the current year have been restated and presented using the current year exchange rate. The Company’s loss reserve analysis is based primarily on underwriting year data. The preparation of accident year development tables requires an allocation of underwriting year data to the corresponding accident years. For instance, a contract written in one particular underwriting year may have exposure to losses from two or more accident years. These allocations are done using accident year loss payment and reporting patterns, along with premium earnings patterns. These patterns are derived from either company-specific or industry historical loss data, depending on availability and applicability. The Company believes that its allocations are reasonable; however, to the extent that the Company’s allocation procedure for loss and loss adjustment expenses incurred differs from actual historical development, the actual loss development may differ materially from the loss development presented. As described in the roll forward of loss and loss adjustment expense reserves section above, changes in the Company’s loss and loss adjustment expense reserves result from both re-estimating loss reserves as well as changes in premium estimates. In addition, many of the Company’s contracts have sliding scale or profit commissions whereby loss reserve development can be offset by changes in acquisition costs. See additional disclosure above on the net impact on underwriting income after considering the impact of changes in premium estimates and the impact of acquisition costs for the years ended December 31, 2017 , 2016 and 2015 . Property and Casualty Reinsurance - Prospective Reinsurance Contracts The following tables provide a breakdown of the Company’s loss and loss adjustment expenses incurred, net and net loss and loss adjustment expenses paid by accident year by line of business for the Company’s prospective reinsurance contracts for the years ended December 31, 2017 and 2016. The information related to loss and loss adjustment expenses incurred, net and net loss and loss adjustment expenses paid for the years ended December 31, 2012 through 2016 is presented as supplementary information and is unaudited: Property Loss and loss adjustment expenses incurred, net Accident year 2012 2013 2014 2015 2016 2017 IBNR loss and LAE reserves, net ($ in thousands) <----------------------------------------- Unaudited -----------------------------------------> 2012 $ 10,917 $ 8,672 $ 9,375 $ 9,353 $ 9,416 $ 9,472 $ 31 2013 — 27,765 24,980 25,766 25,882 25,785 101 2014 — — 40,256 40,920 41,336 44,627 640 2015 — — — 50,330 52,533 54,635 3,706 2016 — — — — 45,415 43,038 7,579 2017 — — — — — 41,237 12,153 Total $ 218,794 $ 24,210 Cumulative net losses and loss adjustment expenses paid Accident year 2012 2013 2014 2015 2016 2017 ($ in thousands) <----------------------------------------- Unaudited -----------------------------------------> 2012 $ 4,656 $ 8,381 $ 9,075 $ 9,186 $ 9,352 $ 9,400 2013 — 14,635 22,229 24,023 25,167 25,406 2014 — — 19,420 34,381 38,448 42,775 2015 — — — 22,706 43,382 48,360 2016 — — — — 21,593 31,871 2017 — — — — — 24,713 Total $ 182,525 Property - net reserves for loss and loss adjustment expenses, end of year $ 36,269 Workers’ Compensation Loss and loss adjustment expenses incurred, net Accident year 2012 2013 2014 2015 2016 2017 IBNR loss and LAE reserves, net ($ in thousands) <----------------------------------------- Unaudited -----------------------------------------> 2012 $ 4,037 $ 4,534 $ 5,066 $ 5,596 $ 5,715 $ 5,720 $ 78 2013 — 27,449 28,616 33,365 33,449 33,252 2,107 2014 — — 40,247 46,568 47,200 43,470 6,698 2015 — — — 35,749 37,138 34,800 10,077 2016 — — — — 40,433 39,205 15,461 2017 — — — — — 41,075 27,972 Total $ 197,522 $ 62,393 Cumulative net losses and loss adjustment expenses paid Accident year 2012 2013 2014 2015 2016 2017 ($ in thousands) <----------------------------------------- Unaudited -----------------------------------------> 2012 $ 93 $ 624 $ 3,017 $ 4,280 $ 4,969 $ 4,796 2013 — 2,587 9,142 16,840 22,826 26,956 2014 — — 4,073 15,947 24,280 29,573 2015 — — — 2,669 10,755 17,001 2016 — — — — 3,985 13,236 2017 — — — — — 4,586 Total $ 96,148 Workers’ Compensation - net reserves for loss and loss adjustment expenses, end of year $ 101,374 Auto Loss and loss adjustment expenses incurred, net Accident year 2012 2013 2014 2015 2016 2017 IBNR loss and LAE reserves, net ($ in thousands) <----------------------------------------- Unaudited -----------------------------------------> 2012 $ 13,247 $ 12,264 $ 11,777 $ 11,534 $ 11,433 $ 11,333 $ 10 2013 — 20,830 19,990 19,472 19,338 19,482 61 2014 — — 104,896 103,473 103,568 103,661 347 2015 — — — 82,677 88,705 89,550 1,109 2016 — — — — 77,785 85,903 3,226 2017 — — — — — 48,758 16,932 Total $ 358,687 $ 21,685 Cumulative net losses and loss adjustment expenses paid Accident year 2012 2013 2014 2015 2016 2017 ($ in thousands) <----------------------------------------- Unaudited -----------------------------------------> 2012 $ 5,619 $ 9,989 $ 11,387 $ 11,450 $ 11,382 $ 11,318 2013 — 8,673 17,244 18,686 19,066 19,363 2014 — — 45,766 97,651 101,626 102,868 2015 — — — 42,451 80,765 86,100 2016 — — — — 38,059 77,511 2017 — — — — — 23,546 Total $ 320,706 Auto - net reserves for loss and loss adjustment expenses, end of year $ 37,981 Other Casualty Loss and loss adjustment expenses incurred, net Accident year 2012 2013 2014 2015 2016 2017 IBNR loss and LAE reserves, net ($ in thousands) <----------------------------------------- Unaudited -----------------------------------------> 2012 $ — $ — $ — $ — $ — $ — $ — 2013 — — — — — — — 2014 — — 5,480 7,519 7,316 4,903 1,644 2015 — — — 45,558 48,315 33,396 16,381 2016 — — — — 63,082 52,118 36,975 2017 — — — — — 70,183 66,396 Total $ 160,600 $ 121,396 Cumulative net losses and loss adjustment expenses paid Accident year 2012 2013 2014 2015 2016 2017 ($ in thousands) <----------------------------------------- Unaudited -----------------------------------------> 2012 $ — $ — $ — $ — $ — $ — 2013 — — — — — — 2014 — — 16 340 1,390 2,226 2015 — — — 310 3,612 9,053 2016 — — — — 621 6,165 2017 — — — — — 1,418 Total $ 18,862 Other Casualty - net reserves for loss and loss adjustment expenses, end of year $ 141,738 Credit & Financial Lines Loss and loss adjustment expenses incurred, net Accident year 2012 2013 2014 2015 2016 2017 IBNR loss and LAE reserves, net ($ in thousands) <----------------------------------------- Unaudited -----------------------------------------> 2012 $ — $ — $ — $ — $ — $ — $ — 2013 — 364 408 113 107 99 22 2014 — — 5,846 2,653 2,427 2,204 859 2015 — — — 5,245 5,044 4,758 1,834 2016 — — — — 10,743 10,729 6,478 2017 — — — — — 13,768 11,960 Total $ 31,558 $ 21,153 Cumulative net losses and loss adjustment expenses paid Accident year 2012 2013 2014 2015 2016 2017 ($ in thousands) <----------------------------------------- Unaudited -----------------------------------------> 2012 $ — $ — $ — $ — $ — $ — 2013 — — 11 66 74 78 2014 — — 42 784 1,038 1,318 2015 — — — 402 1,128 2,045 2016 — — — — 1,013 2,326 2017 — — — — — 1,100 Total $ 6,867 Credit & Financial Lines - net reserves for loss and loss adjustment expenses, end of year $ 24,691 Multi-line Loss and loss adjustment expenses incurred, net Accident year 2012 2013 2014 2015 2016 2017 IBNR loss and LAE reserves, net ($ in thousands) <----------------------------------------- Unaudited -----------------------------------------> 2012 $ — $ — $ — $ — $ — $ — $ — 2013 — 23,282 4,272 4,564 4,564 4,564 — 2014 — — 41,188 34,570 37,738 35,489 16,338 2015 — — — 86,605 100,023 107,837 30,203 2016 — — — — 132,050 121,723 37,665 2017 — — — — — 101,037 39,451 Total $ 370,650 $ 123,657 Cumulative net losses and loss adjustment expenses paid Accident year 2012 2013 2014 2015 2016 2017 ($ in thousands) <----------------------------------------- Unaudited -----------------------------------------> 2012 $ — $ — $ — $ — $ — $ — 2013 — — 1,243 4,563 4,563 4,563 2014 — — 1,245 14,289 19,476 18,969 2015 — — — 30,914 58,792 74,646 2016 — — — — 39,413 76,791 2017 — — — — — 54,216 Total $ 229,185 Multi-line - net reserves for loss and loss adjustment expenses, end of year $ 141,465 Other Specialty Loss and loss adjustment expenses incurred, net Accident year 2012 2013 2014 2015 2016 2017 IBNR loss and LAE reserves, net ($ in thousands) <----------------------------------------- Unaudited -----------------------------------------> 2012 $ 52,105 $ 49,942 $ 50,055 $ 50,055 $ 50,065 $ 50,104 $ 1 2013 — 2,308 24,274 23,450 23,138 23,135 1 2014 — — — — — — — 2015 — — — — — — — 2016 — — — — — — — 2017 — — — — — 4,033 4,029 Total $ 77,272 $ 4,031 Cumulative net losses and loss adjustment expenses paid Accident year 2012 2013 2014 2015 2016 2017 ($ in thousands) <----------------------------------------- Unaudited -----------------------------------------> 2012 $ 2,666 $ 48,455 $ 50,024 $ 50,025 $ 50,067 $ 50,103 2013 — — 22,232 23,138 23,134 23,135 2014 — — — — — — 2015 — — — — — — 2016 — — — — — — 2017 — — — — — 4 Total $ 73,242 Other Specialty - net reserves for loss and loss adjustment expenses, end of year $ 4,030 Property and Casualty Reinsurance - Retroactive Reinsurance Contracts The Company writes reinsurance contracts that provide limited protection against adverse development on loss originating from multiple accident years. The Company has other retroactive exposure within contracts that provide primarily prospective coverage. These contracts are included in the prospective reinsurance tables above. These contracts are typically part of prospective reinsurance contracts with a small portion of retroactive exposure resulting from the delay between the dates when the relevant contract was bound and the dates on which each incepted. The information below includes loss and loss adjustment expenses incurred, net and loss and loss adjustment expenses paid, net, by accident year for the Company's retroactive reinsurance contracts presented by year of inception of the retroactive reinsurance contracts. The Company's estimate for loss and loss adjustment expenses incurred, net, at inception of all retroactive reinsurance contracts entered into to date was the same when the contract incepted and at the relevant year end position. As a result, there was no development in the year of inception for any of the Company's retroactive reinsurance contracts written to date. In addition, there were no loss and loss adjustment expenses paid, net, at inception of the Company's retroactive reinsurance contracts. The information related to loss and loss adjustment expenses incurred, net and net loss and loss adjustment expenses paid for the years ended December 31, 2012 through 2016 is presented as supplementary information and is unaudited. Contracts incepting in the year ended December 31, 2012 The Company did not enter into any retroactive reinsurance contracts during the year ended December 31, 2012. Contracts incepting in the year ended December 31, 2013 Loss and loss adjustment expenses incurred, net Accident year 2013 2014 2015 2016 2017 IBNR loss and LAE reserves, net ($ in thousands) <------------------------------ Unaudited ------------------------------> 2008 $ — $ — $ — $ — $ — $ — 2009 — — — — — — 2010 914 704 704 704 704 — 2011 5,419 4,173 4,173 4,173 4,173 — 2012 10,197 7,853 7,853 7,853 7,853 — 2013 4,908 3,779 3,779 3,779 3,779 — 2014 — — — — — — 2015 — — — — — — 2016 — — — — — — 2017 — — — — — — Total $ 16,509 $ — Cumulative net loss and loss adjustment expenses paid Accident year 2013 2014 2015 2016 2017 ($ in thousands) <------------------------------ Unaudited ------------------------------> 2008 $ — $ — $ — $ — $ — 2009 — — — — — 2010 — 279 704 704 704 2011 — 1,654 4,173 4,173 4,173 2012 — 3,113 7,853 7,853 7,853 2013 — 1,498 3,779 3,779 3,779 2014 — — — — — 2015 — — — — — 2016 — — — — — 2017 — — — — — Total $ 16,509 Net reserves for loss and loss adjustment expenses from 2008 to 2017 — Net reserves for loss and loss adjustment expenses prior to 2008 12,402 Contracts incepting in the year ended December 31, 2013 - net reserves for loss and loss adjustment expenses, end of year $ 12,402 Contracts incepting in the year ended December 31, 2014 Loss and loss adjustment expenses incurred, net Accident year 2014 2015 2016 2017 IBNR loss and LAE reserves, net ($ in thousands) <-------------------- Unaudited --------------------> 2008 $ 281 $ — $ — $ — $ — 2009 382 — — — — 2010 444 — — — — 2011 4,184 3,411 3,025 3,231 3,231 2012 12,002 10,658 9,451 10,094 10,094 2013 18,640 16,715 14,822 15,831 15,831 2014 10,548 9,469 8,396 8,968 8,968 2015 — — — — — 2016 — — — — — 2017 — — — — — Total $ 38,124 $ 38,124 Cumulative net loss and loss adjustment expenses paid Accident year 2014 2015 2016 2017 ($ in thousands) <-------------------- Unaudited --------------------> 2008 $ — $ — $ — $ — 2009 — — — — 2010 — — — — 2011 — — — — 2012 — — — — 2013 — — — — 2014 — — — — 2015 — — — — 2016 — — — — 2017 — — — — Total $ — Net reserves for loss and loss adjustment expenses from 2008 to 2017 38,124 Net reserves for loss and loss adjustment expenses prior to 2008 — Contracts incepting in the year ended December 31, 2014 - net reserves for loss and loss adjustment expenses, end of year $ 38,124 Contracts incepting in the year ended December 31, 2015 Loss and loss adjustment expenses incurred, net Accident year 2015 2016 2017 IBNR loss and LAE reserves, net ($ in thousands) <--------- Unaudited ---------> 2008 $ 2,010 $ 2,010 $ 1,385 $ 1,385 2009 2,510 2,510 1,729 1,729 2010 24,750 24,750 19,100 19,100 2011 21,238 21,238 16,350 16,350 2012 15,917 15,917 12,223 12,223 2013 13,616 13,616 10,400 10,400 2014 15,802 15,802 12,095 12,095 2015 2,596 2,596 1,788 1,788 2016 — — — — 2017 — — — — Total $ 75,070 $ 75,070 Cumulative net loss and loss adjustment expenses paid Accident year 2015 2016 2017 ($ in thousands) <--------- Unaudited ---------> 2008 $ — $ — $ — 2009 — — — 2010 — — — 2011 — — — 2012 — — — 2013 — — — 2014 — — — 2015 — — — 2016 — — — 2017 — — — Total $ — Net reserves for loss and loss adjustment expenses from 2008 to 2017 75,070 Net reserves for loss and loss adjustment expenses prior to 2008 328 Contracts incepting in the year ended December 31, 2015 - net reserves for loss and loss adjustment expenses, end of year $ 75,398 Contracts incepting in the year ended December 31, 2016 The Company did not enter into any retroactive reinsurance contracts during the year ended December 31, 2016. Contracts incepting in the year ended December 31, 2017 Loss and loss adjustment expenses incurred, net Accident year 2017 IBNR loss and LAE reserves, net ($ in thousands) 2008 $ 183 $ |
Management, performance and fou
Management, performance and founders fees | 12 Months Ended |
Dec. 31, 2017 | |
Management, Performance and Founders Fees [Abstract] | |
Management, performance and founders fees | Third Point Re, Third Point Re BDA, TPRUSA and Third Point Re USA are parties to Joint Venture and Investment Management Agreements (the “Investment Agreements”) with Third Point LLC and Third Point Advisors LLC (“TP GP”) under which Third Point LLC manages certain jointly held assets. Pursuant to the Investment Agreements, TP GP receives a performance fee allocation equal to 20% of the net investment income of the applicable company’s share of the investment assets managed by Third Point LLC. The performance fee accrued on net investment income is included in liabilities as a performance fee payable to related party during the period, unless funds are redeemed from the Joint Venture accounts, in which case, the proportionate share of performance fee, as described in Note 17 , associated with the redemption is earned and allocated to noncontrolling interests in related party. At the end of each year, the remaining portion of the performance fee payable that has not been included in noncontrolling interests in related party through redemptions is earned and then allocated to TP GP’s capital account in accordance with the Investment Agreements. The performance fee is subject to a loss carryforward provision pursuant to which TP GP is required to maintain a loss recovery account, which represents the sum of all prior period net loss amounts, not offset by prior year net profit amounts, and that is allocated to future profit amounts until the loss recovery account has returned to a positive balance. Until such time, no performance fees are payable under the Investment Agreements. Additionally, Third Point LLC is entitled to receive management fees, which are paid monthly. Pursuant to the Investment Agreements, a total management fee of 1.5% , ( 2.0% up to December 22, 2016), of net investments managed by Third Point LLC was paid to Third Point LLC and certain founding investors. For the years ended December 31, 2017 , 2016 and 2015 , management and performance fees to related parties are as follows: 2017 2016 2015 ($ in thousands) Management fees - Third Point LLC $ 36,733 $ 7,110 $ 6,362 Management fees - Founders (1) — 35,321 36,053 Performance fees - Third Point Advisors LLC (before loss carryforward) 93,978 17,276 7,061 Performance fees - loss carryforward — — (6,199 ) $ 130,711 $ 59,707 $ 43,277 (1) KEP TP Bermuda Ltd., KIA TP Bermuda Ltd., Pine Brook LVR, L.P., P RE Opportunities Ltd. and Dowling Capital Partners I, L.P., collectively the “Founders”, received a share of the management fees in proportion to their initial investments in Third Point Re until December 22, 2016. As of December 31, 2017 , $94.0 million ( December 31, 2016 - $17.3 million ) related to performance fees earned by TP GP were included in noncontrolling interests in related party. See Note 17 for additional information. |
Deposit contracts
Deposit contracts | 12 Months Ended |
Dec. 31, 2017 | |
Deposit Contracts, Liabilities [Abstract] | |
Deposit contracts | The following table represents activity in the deposit contacts for the years ended December 31, 2017 , 2016 and 2015 : 2017 2016 2015 ($ in thousands) Balance, beginning of year $ 104,905 $ 83,955 $ 145,430 Consideration received 22,658 22,463 21,246 Consideration receivable 2,080 — — Net investment expense (income) allocation 2,800 (164 ) 2,207 Payments (3,545 ) (915 ) (84,928 ) Foreign currency translation 235 (434 ) — Balance, end of year $ 129,133 $ 104,905 $ 83,955 |
Senior Notes payable and letter
Senior Notes payable and letter of credit facilities (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Senior Notes payable and letter of credit facilities | Senior Notes payable As of December 31, 2017 , TPRUSA had outstanding debt obligations consisting of an aggregate principal amount of $115.0 million of senior unsecured notes (the “Notes”) due February 13, 2025. The Notes bear interest at 7.0% and interest is payable semi-annually on February 13 and August 13 of each year. The Notes are fully and unconditionally guaranteed by Third Point Re, and, in certain circumstances specified in the indenture governing the Notes, certain existing or future subsidiaries of the Company may be required to guarantee the Notes. As of December 31, 2017 , the Company had capitalized $1.3 million of costs associated with the Notes, which are presented as a direct deduction from the principal amount of the Notes on the consolidated balance sheets. As of December 31, 2017 , the Notes had an estimated fair value of $116.7 million (December 31, 2016 - $103.4 million ). The fair value measurements were based on observable inputs and therefore were considered to be Level 2. The Company was in compliance with all debt covenants as of December 31, 2017 and 2016 . Letters of credit As of December 31, 2017 , the Company had entered into the following letter of credit facilities: Facility (1) Utilized Collateral December 31, 2017 ($ in thousands) Citibank 300,000 163,262 163,262 Lloyds Bank 125,000 87,225 87,225 $ 425,000 $ 250,487 $ 250,487 (1) During the year ended December 31, 2017, the BNP Paribas facility of $50.0 million with Third Point Re USA and the J.P. Morgan facility of and $50.0 million with Third Point Re BDA were not renewed. The Company’s letter of credit facilities are bilateral agreements that generally renew on an annual basis. The letters of credit issued under the letter of credit facilities are fully collateralized. See Note 3 for additional information. |
Net investment income
Net investment income | 12 Months Ended |
Dec. 31, 2017 | |
Net Investment Income [Abstract] | |
Net investment income | Net investment income (loss) for the years ended December 31, 2017 , 2016 and 2015 consisted of the following: 2017 2016 2015 Net investment income (loss) by type ($ in thousands) Net realized gains on investments and investment derivatives $ 225,016 $ 33,505 $ 14,398 Net unrealized gains (losses) on investments and investment derivatives 255,194 70,290 (34,181 ) Net gains (losses) on foreign currencies 6,441 (2,557 ) 933 Dividend and interest income 65,896 77,160 45,103 Dividends paid on securities sold, not yet purchased (5,724 ) (1,977 ) (1,279 ) Other expenses (24,073 ) (19,422 ) (11,305 ) Net gain (loss) on investment in Kiskadee Fund (86 ) 1,533 1,465 Net investment income related to Catastrophe Reinsurer and Catastrophe Fund — — 69 Net investment income before management and performance fees to related parties 522,664 158,532 15,203 Management and performance fees to related parties (130,711 ) (59,707 ) (43,277 ) Net investment income (loss) $ 391,953 $ 98,825 $ (28,074 ) The following table provides an additional breakdown of our net investment income (loss) by asset and liability type for the years ended December 31, 2017 , 2016 and 2015 consisted of the following: 2017 2016 2015 Net investment income (loss) by asset type ($ in thousands) Equity securities $ 467,527 $ 78,955 $ (37,689 ) Private common equity securities (6 ) 333 (3,511 ) Private preferred equity securities 5,764 4,146 5,187 Total equities 473,285 83,434 (36,013 ) Asset-backed securities 12,571 1,166 61,730 Bank debt 8,868 6,887 184 Corporate bonds 6,462 115,568 (45,590 ) Municipal bonds — — (139 ) U.S. Treasury securities 2,366 2,605 (1,876 ) Sovereign debt 21,553 8,267 21,142 Other debt securities 2,546 — — Total debt securities 54,366 134,493 35,451 Options (33,510 ) (28,426 ) (29,062 ) Rights and warrants 169 (370 ) (1,679 ) Real estate 502 — — Trade claims (89 ) 116 249 Total other investments (32,928 ) (28,680 ) (30,492 ) Net investment income in funds valued at NAV 10,309 1,330 (5,424 ) Total net investment income from invested assets 505,032 190,577 (36,478 ) Net investment income (loss) by liability type Equity securities (35,643 ) (11,725 ) (4,098 ) Sovereign debt — (382 ) 1,967 Corporate bonds (1,725 ) (4,195 ) 9,806 Options (2,907 ) 11,272 25,411 Total net investment income (loss) from securities sold, not yet purchased (40,275 ) (5,030 ) 33,086 Other investment income (losses) and other expenses not presented above Other investment expenses (5,103 ) (6,068 ) (5,486 ) Net investment income (loss) on derivative contracts 61,978 (15,479 ) 21,437 Net investment income (loss) on cash, including foreign exchange gain (loss) (1,454 ) (10,173 ) 120 Net investment losses on securities purchased under an agreement to sell and securities sold under and agreement to repurchase (87 ) (1,970 ) (2,373 ) Withholding taxes reclassified to income tax expense 2,573 6,675 4,828 Net investment income related to Catastrophe Reinsurer and Catastrophe Fund — — 69 Total other investment income (losses) and other expenses 57,907 (27,015 ) 18,595 Net investment income before management and performance fees to related parties 522,664 158,532 15,203 Management and performance fees to related parties (130,711 ) (59,707 ) (43,277 ) Net investment income (loss) $ 391,953 $ 98,825 $ (28,074 ) |
Other expenses
Other expenses | 12 Months Ended |
Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Other expenses | Other expenses for the years ended December 31, 2017 , 2016 and 2015 consisted of the following: 2017 2016 2015 ($ in thousands) Investment expense (income) and change in fair value of embedded derivatives in deposit liabilities $ 2,800 $ (164 ) $ 2,207 Investment expense and change in fair value of embedded derivatives in reinsurance contracts 9,874 8,551 6,407 $ 12,674 $ 8,387 $ 8,614 |
Income taxes (Notes)
Income taxes (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income taxes | mpany also has subsidiaries in the United Kingdom, TPRUK and Third Point Re UK, which are subject to applicable taxes in that jurisdiction. The Company is subject to withholding taxes on income sourced in the United States and in other countries, subject to each countries’ specific tax regulations. Income subject to withholding taxes includes, but is not limited to, dividends, capital gains and interest on certain investments. The Company has recorded uncertain tax positions related to investment transactions in certain foreign jurisdictions. As of December 31, 2017 , the Company has accrued $1.9 million (December 31, 2016 - $1.6 million ) for uncertain tax positions. For the years ended December 31, 2017 , 2016 and 2015 , the Company recorded income tax expense (benefit), as follows: 2017 2016 2015 ($ in thousands) Income tax expense (benefit) related to U.S. and U.K. subsidiaries $ 9,248 $ (1,232 ) $ (6,633 ) Change in uncertain tax positions 155 147 (1,100 ) Withholding taxes on certain investment transactions 2,573 6,678 4,828 $ 11,976 $ 5,593 $ (2,905 ) The following is a summary of the Company’s income (loss) before income tax expense (benefit) by jurisdiction for the years ended December 31, 2017 , 2016 and 2015 : 2017 2016 2015 ($ in thousands) Bermuda $ 266,497 $ 38,243 $ (71,416 ) United States 27,172 (3,687 ) (18,981 ) United Kingdom 78 (87 ) 53 Income (loss) before income tax expense (benefit) $ 293,747 $ 34,469 $ (90,344 ) The Company’s expected income tax provision computed on pre-tax income at the weighted average tax rate has been calculated as the sum of the pre-tax income in each jurisdiction multiplied by that jurisdiction’s applicable statutory tax rate. Statutory tax rates of 0.0% , 35.0% and 19.25% have been used for Bermuda, the United States and the United Kingdom, respectively. As of December 31, 2017 , the Company has income tax returns open for examination in the United States for the tax years 2015 and 2016. The following table presents a reconciliation of expected income taxes to income tax expense (benefit) for the years ended December 31, 2017 , 2016 and 2015 : 2017 2016 2015 ($ in thousands) Bermuda (expected tax expense at 0%) $ — $ — $ — Foreign taxes at local expected rates: United States 9,510 (1,290 ) (6,644 ) United Kingdom 15 (17 ) 11 Withholding taxes on certain investment transactions 2,573 6,678 4,828 Change in uncertain tax positions 155 147 (1,100 ) Non-deductible expenses and other (277 ) 75 — Income tax expense (benefit) $ 11,976 $ 5,593 $ (2,905 ) The following table presents the Company’s current and deferred incomes taxes for the years ended December 31, 2017 , 2016 and 2015 : 2017 2016 2015 ($ in thousands) Current tax expense $ 2,824 $ 6,825 $ 3,728 Deferred tax expense (benefit) 9,152 (1,232 ) (6,633 ) Income tax expense (benefit) $ 11,976 $ 5,593 $ (2,905 ) The following table presents the tax effects of temporary differences that give rise to the deferred tax assets and deferred tax liabilities as of December 31, 2017 , 2016 and 2015 : 2017 2016 2015 ($ in thousands) Deferred tax assets: Discounting of loss and loss adjustment expense reserves $ 330 $ 451 $ 119 Unearned premiums 1,634 2,486 2,329 Temporary differences in recognition of expenses 138 1,134 573 Net operating and capital loss carryforwards 7,048 13,326 7,839 Total deferred tax assets 9,150 17,397 10,860 Deferred tax liabilities: Deferred acquisition costs 7,798 4,079 3,515 Unrealized gains on investments 2,435 5,438 712 Total deferred tax liabilities 10,233 9,517 4,227 Net deferred tax asset (liability) $ (1,083 ) $ 7,880 $ 6,633 The deferred tax assets and liabilities as of December 31, 2017 were primarily related to U.S. income tax. To evaluate the recoverability of the deferred tax assets, the Company considers the timing of the reversal of deferred income and expense items as well as the likelihood that the Company will generate sufficient taxable income to realize future tax benefits. The Company believes that it is more likely than not that it will generate sufficient taxable income and realize the future tax benefits in order to recover the deferred assets and, accordingly, no valuation allowance was recorded as of December 31, 2017 and 2016 . As of December 31, 2017 , deferred tax assets include $26.1 million net operating loss related to the Company’s U.S. subsidiaries that can be carried forward for twenty years and part of which will begin to expire in 2035. |
Share capital
Share capital | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Share capital | The following tables are a summary of the common shares issued and outstanding and shares repurchased held as treasury shares as of and for the years ended December 31, 2017 and 2016 : Common shares 2017 2016 Common shares issued, beginning of year 106,501,299 105,479,341 Options exercised 150,802 514,059 Restricted shares granted, net of forfeitures (35,011 ) 47,712 Performance restricted shares granted, net of forfeitures 610,257 460,187 Common shares issued, end of year 107,227,347 106,501,299 Treasury shares, end of year (3,944,920 ) (644,768 ) Common shares outstanding, end of year 103,282,427 105,856,531 Authorized and issued The Company’s authorized share capital of $33.0 million is comprised of 300,000,000 common shares with a par value of $0.10 each and 30,000,000 preference shares with a par value of $0.10 each. No preference shares have been issued to date. Share repurchases On May 4, 2016, the Company’s Board of Directors authorized a common share repurchase program for up to an aggregate of $100.0 million of the Company’s outstanding common shares. Under the common share repurchase program, the Company may repurchase shares from time to time in privately negotiated transactions or in open-market purchases in accordance with all applicable securities laws and regulations, including Rule 10b-18 of the Securities Exchange Act of 1934, as amended. During the year ended December 31, 2017 , the Company repurchased 3,300,152 (December 31, 2016 - 644,768 ) of its common shares in the open market for an aggregate cost of $ 40.9 million (December 31, 2016 - $7.4 million ) at a weighted average cost, including commissions, of $ 12.38 (December 31, 2016 - $11.46 ) per share. Common shares repurchased by the Company were not canceled and are classified as treasury shares. As of December 31, 2017 , the Company is authorized to repurchase up to an aggregate of $ 51.7 million of additional common shares under its share repurchase program. Warrants The Company’s Founders and an advisor provided insurance industry expertise, resources and relationships to ensure that the Company would be fully operational with key management in place in time for the January 2012 underwriting season. In consideration of these commitments, the Company reserved for issuance to the Founders and an advisor warrants to purchase, in the aggregate, up to 4.0% (Founders 3.5% and an advisor 0.5% ) of the diluted shares (up to a maximum of $1 billion of subscribed shares) provided that the Founders and the advisor will not be issued any warrants for common shares issued in consideration for any capital raised by the Company in excess of $1 billion . The following is a summary of warrants as of December 31, 2017 : Exercise price Authorized and issued Aggregated fair value of warrants ($ in thousands, except for share and per share amounts) Founders $ 10.00 4,069,868 $ 15,203 Advisor $ 10.00 581,295 2,171 4,651,163 $ 17,374 The warrants expire 10 years from the date of issuance, December 22, 2011, and will be exercisable at a price per share of $10.00 , which is equal to the price per share paid by investors in the initial private offering. |
Share-based compensation
Share-based compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based compensation | On July 15, 2013, the Third Point Re 2013 Omnibus Incentive Plan (“Omnibus Plan”) was approved by the Board of Directors and subsequently on August 2, 2013 by the Shareholders of the Company. An aggregate of 21,627,906 common shares were made available under the Omnibus Plan. This number of shares includes the shares available under the Third Point Re Share Incentive Plan (“Share Incentive Plan”). Awards under the Omnibus Plan may be made in the form of performance awards, restricted shares, restricted share units, share options, share appreciation rights and other share-based awards. As of December 31, 2017 , 9,330,000 (December 31, 2016 - 9,418,538 ) of the Company’s common shares were available for future issuance under the equity incentive compensation plans. The following table provides the total share-based compensation expense included in general and administrative expenses during the years ended December 31, 2017 , 2016 and 2015 : 2017 2016 2015 ($ in thousands) Management and director options $ 648 $ 6,054 $ 6,264 Restricted shares with service condition (1) (331 ) 1,365 1,953 Restricted shares with service and performance condition 3,282 1,519 2,654 $ 3,599 $ 8,938 $ 10,871 (1) Net of forfeitures of $0.9 million in the year ended December 31, 2017 (December 31, 2016 - $nil and December 31, 2015 - $0.7m ) As of December 31, 2017 , the Company had $5.8 million (December 31, 2016 - $4.6 million ) of unamortized share compensation expense, which is expected to be amortized over a weighted average period of 1.5 years (December 31, 2016 - 1.4 years ). Management and director options The management options issued under the Share Incentive Plan were subject to a service and performance condition. The service condition will be met with respect to 20% of the management options on each of the first five anniversary dates following the grant date of the management options. The performance condition with respect to the management options was met as a result of the Company’s IPO. The management and director options activity for the years ended December 31, 2017 , 2016 and 2015 were as follows: Number of options Weighted average exercise price Balances as of January 1, 2015 10,990,841 $ 13.41 Forfeited (306,976 ) 14.36 Exercised (433,279 ) 10.00 Balances as of January 1, 2016 10,250,586 13.52 Forfeited (139,534 ) 18.00 Exercised (514,059 ) 10.00 Balances as of January 1, 2017 9,596,993 13.64 Forfeited (558,138 ) 18.00 Exercised (150,802 ) 10.00 Balances as of December 31, 2017 8,888,053 $ 13.43 The fair value of share options issued were estimated on the grant date using the Black-Scholes option-pricing model. There were no share options granted in the years ended December 31, 2017 and 2016 . As of December 31, 2017 , the weighted average remaining contractual term for options outstanding and exercisable was 4.2 years and 4.1 years , respectively ( 2016 - 4.9 years and 4.8 years , respectively). The following table summarizes information about the Company’s management and director share options outstanding as of December 31, 2017 : Options outstanding Options exercisable Range of exercise prices Number of options Weighted average exercise price Remaining contractual life Number of options Weighted average exercise price $10.00 - $10.89 5,123,532 $ 10.04 4.1 years 5,081,671 $ 10.03 $15.05 - $16.89 1,917,145 $ 15.93 4.3 years 1,861,332 $ 15.94 $20.00 - $25.05 1,847,376 $ 20.26 4.2 years 1,805,518 $ 20.22 8,888,053 $ 13.43 4.2 years 8,748,521 $ 13.39 The aggregate intrinsic value of options outstanding and options exercisable as of December 31, 2017 was $23.6 million and $23.4 million , respectively ( 2016 - $8.0 million and $7.1 million , respectively). For the year ended December 31, 2017 , the Company received proceeds of $1.5 million ( 2016 - $5.1 million ) from the exercise of options. Restricted shares with service condition Restricted shares vest either ratably or at the end of the required service period and contain certain restrictions during the vesting period, relating to, among other things, forfeiture in the event of termination of employment or service and transferability. Restricted share award activity for the restricted shares with only a service condition for the years ended December 31, 2017 , 2016 and 2015 was as follows: Number of non- vested restricted shares Weighted average grant date fair value Balance as of January 1, 2015 616,114 $ 10.10 Granted 118,120 13.06 Forfeited (7,267 ) 13.76 Vested (425,924 ) 10.37 Balance as of January 1, 2016 301,043 11.12 Granted 47,712 11.37 Vested (47,712 ) 11.37 Balance as of January 1, 2017 301,043 11.12 Granted 36,418 12.15 Forfeited (71,429 ) 14.00 Vested (247,823 ) 10.36 Balance as of December 31, 2017 18,209 $ 12.15 For the year ended December 31, 2017 , the Company issued 36,418 ( 2016 - 47,712 and 2015 - 46,691 ) to directors and no ( 2016 - nil and 2015 - 71,429 ) restricted shares to employees. The restricted shares issued to employees in 2015 had an original vesting period of three years from the date of issuance, however, as a result of the grantee’s departure from the Company, these shares were forfeited in the year ended December 31, 2017. The restricted shares issued to directors in 2017 vest quarterly on July 31, 2017, October 31, 2017, January 31, 2018 and April 30, 2018. The restricted shares issued in 2016 and 2015 to directors vested on December 31, 2016 and 2015, respectively. Restricted shares with service and performance condition Beginning in December 2014, the Company granted on an annual basis performance-based restricted shares to certain employees pursuant to the Omnibus Plan. Performance-based restricted shares vest based on continued service and the achievement of certain financial performance measures over a three-year measurement period. The number of performance-based restricted shares that will be retained upon vesting will vary based on the level of achievement of the performance goals. The formula for determining the amount of shares that will vest is based on underwriting performance of the property and casualty reinsurance segment including underwriting income and the amount of float generated, as defined in the relevant award agreements. Restricted share award activity for the restricted shares with a service and performance condition for the years ended December 31, 2017 , 2016 and 2015 was as follows: Number of non- vested restricted shares Number of non- vested restricted shares probable of vesting Weighted average grant date fair value Balance as of January 1, 2015 459,746 306,496 $ 14.60 Granted 514,276 342,846 14.00 Forfeited (52,469 ) (34,980 ) 14.29 Change in estimated restricted shares considered probable of vesting n/a (78,128 ) 14.60 Balance as of January 1, 2016 921,553 536,234 14.24 Granted 653,958 435,974 11.40 Forfeited (193,771 ) (119,009 ) 13.16 Change in estimated restricted shares considered probable of vesting n/a (275,713 ) 13.06 Balance as of January 1, 2017 1,381,740 577,486 12.91 Granted 935,825 623,882 12.66 Forfeited (325,568 ) (45,617 ) 12.57 Vested (136,618 ) (136,618 ) 14.60 Change in estimated restricted shares considered probable of vesting n/a (131,930 ) 12.17 Balance as of December 31, 2017 1,855,379 887,203 $ 12.60 Defined contribution retirement plans The Company's employees are eligible for retirement benefits through defined contribution retirement plans. The Company and employees contribute an amount equal to a specified percentage of each employee's salary. Expenses related to the defined contribution plans were $0.8 million for each of the years ended December 31, 2017 , 2016 and 2015 . |
Non-controlling interests
Non-controlling interests | 12 Months Ended |
Dec. 31, 2017 | |
Noncontrolling Interest [Abstract] | |
Non-controlling interests | Noncontrolling interests in related party represents the portion of equity in consolidated subsidiaries not attributable, directly or indirectly, to the Company. Income (loss) attributable to noncontrolling interests in related party for the years ended December 31, 2017 , 2016 and 2015 was: 2017 2016 2015 ($ in thousands) Catastrophe Fund and Catastrophe Fund Manager $ — $ — $ (102 ) Joint Venture - Third Point Advisors LLC share 3,973 1,241 53 $ 3,973 $ 1,241 $ (49 ) Third Point Reinsurance Opportunities Fund Ltd. and Third Point Re Cat Ltd. As of December 31, 2015, all investments in the Catastrophe Fund had been redeemed. In February 2016, the Company completed the dissolution of the Catastrophe Fund. For the year ended December 31, 2015, the Catastrophe Fund distributed $119.4 million (Third Point Re BDA’s share - $59.4 million ) resulting in a distribution of noncontrolling interests for the Catastrophe Fund of $60.0 million for the year ended December 31, 2015. Investment in Joint Ventures The joint ventures created through the Investment Agreements ( Note 9 ) have been considered variable interest entities and have been consolidated in accordance with ASC 810, Consolidation (ASC 810). Since the Company was deemed to be the primary beneficiary, the Company has consolidated the joint ventures and has recorded TP GP’s minority interests as redeemable noncontrolling interests in related party and noncontrolling interests in related party in the consolidated balance sheets. A portion of the noncontrolling interest in investment affiliates is subject to contractual withdrawal rights of TP GP, whereas TP GP, at its sole discretion, can withdraw the capital over the minimum capital required to be maintained in its capital accounts. This excess capital is therefore recorded on the Company’s consolidated balance sheets as redeemable noncontrolling interest in related party whereas the required minimum capital is recorded as noncontrolling interests in related party within shareholders’ equity on the Company’s consolidated balance sheet since it does not have withdrawal rights. The following table is a reconciliation of the beginning and ending carrying amounts of redeemable noncontrolling interests in related party, noncontrolling interests in related party and total noncontrolling interests in related party for the years ended December 31, 2017 and 2016 (See Note 2 for additional information on changes in the presentation of noncontrolling interests): Redeemable noncontrolling interests in related party Noncontrolling interests in related party Total noncontrolling interests in related party 2017 2016 2017 2016 2017 2016 ($ in thousands) Balance, beginning of period $ — $ — $ 35,674 $ 16,157 $ 35,674 $ 16,157 Changes in capital account allocation 108,219 — (30,267 ) 19,517 77,952 19,517 Balance, end of period $ 108,219 $ — $ 5,407 $ 35,674 $ 113,626 $ 35,674 In addition, the following table is a reconciliation of beginning and ending carrying amount of total noncontrolling interests in related party resulting from the consolidation of the Company’s joint venture in Third Point Re BDA and Third Point Re USA: Third Point Re BDA Third Point Re USA Total 2017 2016 2017 2016 2017 2016 ($ in thousands) Balance, beginning of period $ 30,358 $ 14,152 $ 5,316 $ 2,005 $ 35,674 $ 16,157 Net income attributable to total noncontrolling interests in related party 3,167 1,073 806 168 3,973 1,241 Contributions (1) 82,093 15,133 11,885 3,143 93,978 18,276 Redemptions (17,999 ) — (2,000 ) — (19,999 ) — Balance, end of period $ 97,619 $ 30,358 $ 16,007 $ 5,316 $ 113,626 $ 35,674 (1) Contributions include performance fees earned during the period. See Note 9 for additional information. Non-Consolidated variable interest entities The Company invests in limited partnerships and other investment vehicles as part of its overall investment strategy. Some of these entities are affiliated with our investment manager, Third Point LLC. The activities of these variable interest entities are generally limited to holding investments and the Company’s involvement in these entities is passive in nature. The Company does not have the power to direct the activities which most significantly impact the variable interest entities economic performance and therefore, the Company is not the primary beneficiary of these variable interest entities. The following variable interest entities were not consolidated as per ASC 810: TP Lux Holdco LP The Company is a limited partner in TP Lux Holdco LP (the “Cayman HoldCo”), which is an affiliate of the Investment Manager. The Cayman HoldCo was formed as a limited partnership under the laws of the Cayman Islands and invests and holds debt and equity interests in TP Lux HoldCo S.a.r.l, a Luxembourg private limited liability company (the “LuxCo”) established under the laws of the Grand-Duchy of Luxembourg, which is also an affiliate of the Investment Manager. LuxCo’s principal objective is to act as a collective investment vehicle to purchase Euro debt and equity investments. The Company invests in the Cayman HoldCo alongside other investment funds managed by the Investment Manager. As of December 31, 2017 , the Company held a 15.6% ( December 31, 2016 - 13.8% ) interest in the Cayman Holdco. The Company accounts for its investment in the limited partnership under the variable interest model, in which the Company is not the primary beneficiary, at NAV, as a practical expedient for fair value, in the consolidated balance sheets. The Company records changes in the fair value of this investment in the consolidated statements of income (loss) . As of December 31, 2017 , the estimated fair value of the investment in the limited partnership was $0.6 million ( December 31, 2016 - $37.6 million ). The Company received net distributions of $39.6 million from the Cayman HoldCo during the year ended December 31, 2017 due to the disposition of underlying investments (2016 - $35.5 million net contributions). The valuation policy with respect to this investment in a limited partnership is further described in Note 4 . The Company’s maximum exposure to loss as a result of its involvement with this investment is limited to the carrying value of the investment. Third Point Hellenic Recovery US Feeder Fund, L.P. The Company is a limited partner in Third Point Hellenic Recovery US Feeder Fund, L.P. (the “Hellenic Fund”), which is an affiliate of the Investment Manager. The Hellenic Fund was formed as a limited partnership under the laws of the Cayman Islands on April 12, 2013 and invests and holds debt and equity interests. The Company has committed to invest $10.9 million ( December 31, 2016 - $10.6 million ) in the Hellenic Fund. Capital distributions of $1.5 million ( 2016 - $0.2 million ) were made during the year ended December 31, 2017 . As of December 31, 2017 , the estimated fair value of the Company’s investment in the Hellenic Fund was $4.9 million (December 31, 2016 - $5.5 million ), representing a 2.9% interest (December 31, 2016 - 2.8% ). The Company accounts for its investment in the limited partnership under the variable interest model, in which the Company is not the primary beneficiary, at NAV, as a practical expedient for fair value, in the consolidated balance sheets. The Company records changes in the fair value of this investment in the consolidated statements of income (loss) . The valuation policy with respect to this investment in a limited partnership is further described in Note 4 . The Company’s maximum exposure to loss as a result of its involvement with this investment is limited to the carrying value of the investment. TP DR Holdings LLC The Company holds an equity and debt investment in TP DR Holdings LLC (“TP DR”), which is an affiliate of the Investment Manager. In December 2016, TP DR was formed as a limited liability company under the laws of the Cayman Islands to invest and own 100% equity interest in DCA Holdings Six Ltd. and its wholly owned subsidiary group. TP DR’s principal objective is to own, develop and manage properties in the Dominican Republic. The Company invests in TP DR alongside other investment funds managed by the Investment Manager and third-party investors. As of December 31, 2017 , the Company held a 7.0% equity ( December 31, 2016 - 7.2% ) and 13.1% debt ( December 31, 2016 - 13.7% ) interest in TP DR. The Company accounts for its equity investment in TP DR under the variable interest model, in which the Company is not the primary beneficiary, at NAV, as a practical expedient for fair value, in the consolidated balance sheets. The Company records changes in the fair value of this investment in the consolidated statements of income (loss) . As of December 31, 2017 , the estimated fair value of the investment was $12.7 million ( December 31, 2016 - $9.5 million ), corresponding to $3.7 million of equity ( December 31, 2016 - $0.9 million ) and $9.0 million of debt interest ( December 31, 2016 - $8.6 million ). During the year ended December 31, 2017 , the Company contributed securities worth $nil and cash of $2.4 million to TP DR ( December 31, 2016 - securities worth $7.2 million and cash of $1.9 million ). The Company has no further commitments or guarantees with respect to TP DR. The valuation policy with respect to this investment in investment funds is further described in Note 4 . The Company’s maximum exposure to loss as a result of its involvement with this investment is limited to the carrying value of the investment. Cloudbreak II Cayman Ltd and TP Trading II LLC The Company holds an equity interest in Cloudbreak II Cayman Ltd, Cloudbreak II US LLC (collectively, the “Cloudbreak entities”) and TP Trading II LLC which are affiliates of the Investment Manager. The Company invests in the Cloudbreak entities and TP Trading II LLC alongside other investment funds managed by the Investment Manager. These entities’ are invested in a structure whose primary purpose is to purchase consumer loans for securitization and warrants from a marketplace lending platform. As of December 31, 2017 , the Cloudbreak entities held $4.6 million of the Company’s asset-backed security investments, which are included in investments in securities in the consolidated balance sheets. The Company’s pro rata interest in the underlying investments is registered in the name of Cloudbreak II US LLC and the related income and expense are reflected in the consolidated balance sheets and the consolidated statements of income (loss) . As of December 31, 2017 , the Company held a 9.3% interest in TP Trading II LLC. The Company accounts for its equity investment in TP Trading II LLC under the variable interest model, in which the Company is not the primary beneficiary, at NAV, as a practical expedient for fair value, in the consolidated balance sheets. The Company records changes in the fair value of this investment in the consolidated statements of income (loss) . As of December 31, 2017 , the estimated fair value of the investment was $6.0 million . The valuation policy with respect to this investment is further described in Note 4 . The Company’s maximum exposure to loss as a result of its involvement with these investments are limited to the carrying value of the investments. Ventures Entities The Company holds equity interests in Venture One Holdings LLC, Venture Three Holdings LLC, Venture Four Holdings LLC and Venture Five Holdings LLC (collectively, the “Ventures entities”), which are affiliates of the Investment Manager. The Company invests in the Ventures entities alongside other investment funds managed by the Investment Manager. The primary purpose of these entities is to make investments in direct commercial real estate and real estate debt. The Company accounts for its equity interests in the Ventures entities under the variable interest model, in which the Company is not the primary beneficiary. As of December 31, 2017 , the Ventures entities held $7.5 million of the Company’s real estate and other debt investments, which are included in investments in securities in the consolidated balance sheets. The Company records changes in the fair value of this investment in the consolidated statements of income (loss) . The valuation policy with respect to this investment is further described in Note 4 . The Company’s maximum exposure to loss as a result of its involvement with this investment is limited to the carrying value of the investment. |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per share | The following sets forth the computation of basic and diluted earnings (loss) per share available to Third Point Re common shareholders for the years ended December 31, 2017 , 2016 and 2015 : 2017 2016 2015 Weighted-average number of common shares outstanding: ($ in thousands, except share and per share amounts) Basic number of common shares outstanding 102,264,094 104,060,052 104,003,820 Dilutive effect of options 1,392,384 633,955 — Dilutive effect of warrants 1,270,957 709,499 — Dilutive effect of restricted shares with service and performance condition 299,603 160,278 — Diluted number of common shares outstanding 105,227,038 105,563,784 104,003,820 Basic earnings (loss) per common share: Net income (loss) available to Third Point Re common shareholders $ 277,798 $ 27,635 $ (87,390 ) Net income allocated to Third Point Re participating common shareholders (263 ) (88 ) — Net income (loss) allocated to Third Point Re common shareholders $ 277,535 $ 27,547 $ (87,390 ) Basic earnings (loss) per share available to Third Point Re common shareholders $ 2.71 $ 0.26 $ (0.84 ) Diluted earnings (loss) per common share: Net income (loss) available to Third Point Re common shareholders $ 277,798 $ 27,635 $ (87,390 ) Net income allocated to Third Point Re participating common shareholders (256 ) (87 ) — Net income (loss) allocated to Third Point Re common shareholders $ 277,542 $ 27,548 $ (87,390 ) Diluted earnings (loss) per share available to Third Point Re common shareholders $ 2.64 $ 0.26 $ (0.84 ) For the years ended December 31, 2017 and 2016 , anti-dilutive options of 4,056,588 and 4,369,171 , respectively, were excluded from the computation of diluted earnings per share. For the year ended December 31, 2015, anti-dilutive options and restricted shares with service and performance condition of 4,859,053 were excluded from the computation of diluted loss per share. In addition, as a result of the net loss for the year ended December 31, 2015, dilutive options and warrants totaling 10,669,545 were considered anti-dilutive and excluded from the computation of diluted loss per common share. No allocation of the net loss has been made to participating shares in the calculation of diluted net loss per common share. |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related party transactions | In addition to the transactions disclosed in Notes 4 , 9 and 17 to these consolidated financial statements, the following transaction is classified as a related party transaction, as the counterparties have either a direct or indirect shareholding in the Company or the Company has an investment in such counterparty. Third Point Loan L.L.C. (“Loan LLC”) and Third Point Ventures LLC (“Ventures LLC” and, together with Loan LLC, “Nominees”) serve as nominees of the Company and other affiliated investment management clients of the Investment Manager for certain investments. The Nominees have appointed the Investment Manager as its true and lawful agent and attorney. As of December 31, 2017 , Loan LLC held $99.6 million ( December 31, 2016 - $124.1 million ) and Ventures LLC held $6.3 million ( December 31, 2016 - $ 22.6 million ) of the Company’s investments, which are included in investments in securities and derivative contracts in the consolidated balance sheets. The Company’s pro rata interest in the underlying investments registered in the name of the Nominees and the related income and expense are reflected in the consolidated balance sheets and the consolidated statements of income (loss) . The valuation policy, with respect to investments held by the nominees, is further discussed in Note 4. |
Financial instruments with off-
Financial instruments with off-balance sheet risk or concentrations of credit risk | 12 Months Ended |
Dec. 31, 2017 | |
Guarantees [Abstract] | |
Financial instruments with off-balance sheet risk or concentrations of credit risk | Off-balance sheet risk In the normal course of business, the Company trades various financial instruments and engages in various investment activities with off-balance sheet risk. These financial instruments include securities sold, not yet purchased, forwards, futures, options, swaptions, swaps and contracts for differences. Generally, these financial instruments represent future commitments to purchase or sell other financial instruments at specific terms at specified future dates. Each of these financial instruments contains varying degrees of off-balance sheet risk whereby changes in the fair values of the securities underlying the financial instruments or fluctuations in interest rates and index values may exceed the amounts recognized in the consolidated balance sheets. Securities sold, not yet purchased are recorded as liabilities in the consolidated balance sheets and have market risk to the extent that the Company, in satisfying its obligations, may be required to purchase securities at a higher value than that recorded in the consolidated balance sheets. The Company’s investments in securities and commodities and amounts due from brokers are partially restricted until the Company satisfies the obligation to deliver securities sold, not yet purchased. Forward and futures contracts are a commitment to purchase or sell financial instruments, currencies or commodities at a future date at a negotiated rate. Forward and futures contracts expose the Company to market risks to the extent that adverse changes occur to the underlying financial instruments such as currency rates or equity index fluctuations. Option contracts give the purchaser the right, but not the obligation, to purchase from or sell to the option writer financial instruments, commodities or currencies within a defined time period for a specified price. The premium received by the Company upon writing an option contract is recorded as a liability, marked to market on a daily basis and is included in securities sold, not yet purchased in the consolidated balance sheets. In writing an option, the Company bears the market risk of an unfavorable change in the financial instrument underlying the written option. Exercise of an option written by the Company could result in the Company selling or buying a financial instrument at a price different from the current fair value. In the normal course of trading activities in its investment portfolio, the Company trades and holds certain derivative contracts, such as written options, which constitute guarantees. The maximum payout for written put options is limited to the number of contracts written and the related strike prices and the maximum payout for written call options is dependent upon the market price of the underlying security at the date of a payout event. As of December 31, 2017 , the investment portfolio had a maximum payout amount of approximately $399.2 million (December 31, 2016 - $87.5 million ) relating to written put option contracts with expiration ranging from one month to seven months from the balance sheet date. The maximum payout amount could be offset by the subsequent sale, if any, of assets obtained via the settlement of a payout event. The fair value of these written put options as of December 31, 2017 was $3.5 million (December 31, 2016 - $1.3 million ) and is included in securities sold, not yet purchased in the consolidated balance sheets. Swaption contracts give the Company the right, but not the obligation, to enter into a specified interest-rate swap within a specified period of time. The Company’s market and counterparty credit risk is limited to the premium paid to enter into the swaption contract and net unrealized gains. Total return swaps, contracts for differences, index swaps, and interest rate swaps that involve the exchange of cash flows between the Company and counterparties are based on the change in the fair value of a particular equity, index, or interest rate on a specified notional holding. The use of these contracts exposes the Company to market risks equivalent to actually holding securities of the notional value but typically involve little capital commitment relative to the exposure achieved. The gains or losses of the Company may therefore be magnified on the capital commitment. Credit derivatives Credit default swaps protect the buyer against the loss of principal on one or more underlying bonds, loans, or mortgages in the event the issuer suffers a credit event. Typical credit events include failure to pay or restructuring of obligations, bankruptcy, dissolution or insolvency of the underlying issuer. The buyer of the protection pays an initial and/or a periodic premium to the seller and receives protection for the period of the contract. If there is not a credit event, as defined in the contract, the buyer receives no payments from the seller. If there is a credit event, the buyer receives a payment from the seller of protection as calculated by the contract between the two parties. The Company may also enter into index and/or basket credit default swaps where the credit derivative may reference a basket of single-name credit default swaps or a broad-based index. Generally, in the event of a default on one of the underlying names, the buyer will receive a pro-rata portion of the total notional amount of the credit default index or basket contract from the seller. When the Company purchases single-name, index and basket credit default swaps, the Company is exposed to counterparty nonperformance. Upon selling credit default swap protection, the Company may expose itself to the risk of loss from related credit events specified in the contract. Credit spreads of the underlying positions together with the period of expiration is indicative of the likelihood of a credit event under the credit default swap contract and the Company’s risk of loss. Higher credit spreads and shorter expiration dates are indicative of a higher likelihood of a credit event resulting in the Company’s payment to the buyer of protection. Lower credit spreads and longer expiration dates would indicate the opposite and lowers the likelihood the Company needs to pay the buyer of protection. As of December 31, 2017 , there was no cash collateral received specifically related to written credit default swaps as collateral is based on the net exposure associated with all derivative instruments subject to applicable netting agreements with counterparties and may not be specific to any individual derivative contract. The following table sets forth certain information related to the Company’s written credit derivatives as of December 31, 2017 and 2016 : December 31, 2017 Maximum Payout/ Notional Amount Fair Value of Written Credit Derivatives (2) Credit Spreads on underlying (basis points) 0-5 years 5 years or Total Written (1) Asset Liability Net Asset/(Liability) ($ in thousands) Single name (0 - 250) $ — $ 2,351 $ 2,351 $ — $ 2,085 $ (2,085 ) $ — $ 2,351 $ 2,351 $ — $ 2,085 $ (2,085 ) December 31, 2016 Maximum Payout/ Notional Amount Fair Value of Written Credit Derivatives (2) Credit Spreads on underlying (basis points) 0-5 years 5 years or Total Written (1) Asset Liability Net Asset/(Liability) ($ in thousands) Single name (0 - 250) $ — $ 3,943 $ 3,943 $ — $ 1,952 $ (1,952 ) $ — $ 3,943 $ 3,943 $ — $ 1,952 $ (1,952 ) (1) As of December 31, 2017 and 2016 , the Company did not hold any offsetting buy protection credit derivatives with the same underlying reference obligation. (2) Fair value amounts of derivative contracts are shown on a gross basis prior to cash collateral or counterparty netting. Concentrations of credit risk Investments In addition to off-balance sheet risks related to specific financial instruments, the Company may be subject to concentrations of credit risk with certain counterparties. Substantially all securities transactions and individual counterparty concentrations are with major securities firms, such as prime brokers or their affiliates. However, the Company reduces its credit risk with counterparties by entering into master netting agreements. Therefore, assets represent the Company’s greater unrealized gains less unrealized losses for derivative contracts in which the Company has master netting agreements. Similarly, liabilities represent the Company’s greater unrealized losses less unrealized gains for derivative contracts in which the Joint Ventures have master netting agreements. Furthermore, the Company obtains collateral from counterparties to reduce its exposure to counterparty credit risk. The Company’s maximum exposure to credit risk associated with counterparty nonperformance on derivative contracts is limited to the net unrealized gains by counterparties inherent in such contracts which are recognized in the consolidated balance sheets. As of December 31, 2017 , the Company’s maximum counterparty credit risk exposure was $76.4 million ( December 31, 2016 - $28.1 million ). Underwriting The Company is exposed to credit risk in several reinsurance contracts with companies that write credit risk insurance, which primarily consists of mortgage insurance credit risk. Loss experience in these lines of business is cyclical and is affected by the state of the general economic environment. The Company provides its clients in these lines of business with reinsurance protection against credit deterioration, defaults or other types of financial non-performance. The Company mitigates the risks associated with these credit-sensitive lines of business through the use of risk management techniques such as risk diversification and monitoring of risk aggregations. The Company has exposure to credit risk as it relates to its business written through brokers, if any of the Company’s brokers are unable to fulfill their contractual obligations with respect to payments to the Company. In addition, in some jurisdictions, if the broker fails to make payments to the insured under the Company’s policy, the Company may remain liable to the insured for the deficiency. The Company’s exposure to such credit risk is somewhat mitigated in certain jurisdictions by contractual terms. The Company has exposure to credit risk related to balances receivable under our reinsurance contracts, including funds withheld and premiums receivable, and the possibility that counterparties may default on their obligations to the Company. The risk of counterparty default is partially mitigated by the fact that any amount owed from a reinsurance counterparty would be netted against any losses or acquisition costs the Company would pay in the future. The Company monitors the collectability of these balances on a regular basis. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Operating leases The Company leases offices space in Bermuda and in New Jersey, U.S.A. The leases have been accounted for as operating leases. Total rent expense for the year ended December 31, 2017 was $0.8 million ( 2016 - $0.8 million and 2015 - $0.7 million ). Future minimum rental commitments as of December 31, 2017 under these leases are expected to be as follows: ($ in thousands) 2018 $ 871 2019 888 2020 850 2021 42 2022 — Thereafter — $ 2,651 Agreements Third Point LLC In June 2016, Third Point Re, Third Point Re BDA, TPRUSA and Third Point Re USA entered into amended and restated Joint Venture and Investment Management Agreements with Third Point LLC and TP GP for an additional five year term, effective on December 22, 2016. These agreements have similar terms to the expired agreements, however, the management fee was reduced from 2% to 1.5% . NetJets In September 2016, the Company traded in its existing aircraft and acquired from NetJets Sales Inc. (“NetJets”) an undivided 31.25% interest in a new aircraft for a five year period. The agreement with NetJets provides for monthly management fees, occupied hourly fees and other fees. Future minimum management fee commitments as of December 31, 2017 under the existing agreement are expected to be as follows: ($ in thousands) 2018 $ 723 2019 750 2020 779 2021 538 2022 — $ 2,790 Employment agreements As of December 31, 2017 , the Company has entered into employment agreements with certain of its executive officers. Such employment arrangements provide for compensation in the form of base salary, annual bonus, share-based awards, participation in the Company’s employee benefit programs and the reimbursements of expenses. Investments Loan and other participation interests purchased by the Company, such as bank debt, may include revolving credit arrangements or other financing commitments obligating the Company to advance additional amounts on demand. As of December 31, 2017 , the Company had one unfunded capital commitment of $3.2 million related to its investment in the Hellenic Fund (see Note 17 for additional information). In the normal course of business, the Company, as part of its investment strategy, enters into contracts that contain a variety of indemnifications and warranties. The Company’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Company that have not yet occurred. However, the Company has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote. Thus, no amounts have been accrued related to such indemnifications. The Company also indemnifies TP GP, Third Point LLC and its employees from and against any loss or expense, including, without limitation any judgment, settlement, legal fees and other costs. Any expenses related to this indemnification are reflected in net investment income (loss) in the consolidated statements of income (loss) . Financing In February 2015, TPRUSA issued $115.0 million of Notes due February 13, 2025. The Notes bear interest at 7.0% and interest is payable semi-annually on February 13 and August 13 of each year. The Notes are fully and unconditionally guaranteed by Third Point Re, and, in certain circumstances specified in the indenture governing the Notes, certain existing or future subsidiaries of the Company may be required to guarantee the Notes. 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 that may arise cannot be predicted with certainty, the Company is not currently involved in any material formal or informal dispute resolution procedures. |
Segment reporting
Segment reporting | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment reporting | The determination of the Company’s business segments is based on the manner in which management monitors the performance of its operations. The Company reports one operating segment, Property and Casualty Reinsurance. The Company has also identified a corporate function that includes the Company’s investment income on capital, certain general and administrative expenses related to corporate activities, interest expense, foreign exchange gains (losses) and income tax (expense) benefit. As of December 31, 2015, all investments in the Catastrophe Fund had been redeemed. In February 2016, the Company completed the dissolution of the Catastrophe Fund and Catastrophe Reinsurer. As a result, there is no further activity in the Catastrophe Risk Management segment. The Company does not manage its assets by segment; accordingly, total assets are not allocated to the segments. The following is a summary of the Company’s operating segment results for the years ended December 31, 2017 , 2016 and 2015 : Year Ended December 31, 2017 Property and Casualty Reinsurance Catastrophe Risk Management Corporate Total Revenues ($ in thousands) Gross premiums written $ 641,620 $ — $ — $ 641,620 Gross premiums ceded (2,475 ) — — (2,475 ) Net premiums written 639,145 — — 639,145 Change in net unearned premium reserves (92,087 ) — — (92,087 ) Net premiums earned 547,058 — — 547,058 Expenses Loss and loss adjustment expenses incurred, net 370,058 — — 370,058 Acquisition costs, net 188,904 — — 188,904 General and administrative expenses 30,656 — 22,447 53,103 Total expenses 589,618 — 22,447 612,065 Net underwriting loss (42,560 ) n/a n/a n/a Net investment inco me 114,435 — 277,518 391,953 Other expenses (12,674 ) — — (12,674 ) Interest expense — — (8,225 ) (8,225 ) Foreign exchange losses — — (12,300 ) (12,300 ) Income tax expense — — (11,976 ) (11,976 ) Net income attributable to noncontrolling interests in related party — — (3,973 ) (3,973 ) Segment income $ 59,201 $ — $ 218,597 Net income available to Third Point Re common shareholders $ 277,798 Property and Casualty Reinsurance - Underwriting Ratios (1) : Loss ratio 67.6 % Acquisition cost ratio 34.5 % Composite ratio 102.1 % General and administrative expense ratio 5.6 % Combined ratio 107.7 % (1) Underwriting ratios are calculated by dividing the related expense by net premiums earned. Year Ended December 31, 2016 Property and Casualty Reinsurance Catastrophe Risk Management Corporate Total Revenues ($ in thousands) Gross premiums written $ 617,374 $ — $ — $ 617,374 Gross premiums ceded (2,325 ) — — (2,325 ) Net premiums written 615,049 — — 615,049 Change in net unearned premium reserves (24,859 ) — — (24,859 ) Net premiums earned 590,190 — — 590,190 Expenses Loss and loss adjustment expenses incurred, net 395,932 — — 395,932 Acquisition costs, net 222,150 — — 222,150 General and administrative expenses 22,160 — 17,207 39,367 Total expenses 640,242 — 17,207 657,449 Net underwriting loss (50,052 ) n/a n/a n/a Net investment income 16,931 — 81,894 98,825 Other expenses (8,387 ) — — (8,387 ) Interest expense — — (8,231 ) (8,231 ) Foreign exchange gains — — 19,521 19,521 Income tax expense — — (5,593 ) (5,593 ) Net income attributable to noncontrolling interests in related party — — (1,241 ) (1,241 ) Segment income (loss) $ (41,508 ) $ — $ 69,143 Net income available to Third Point Re common shareholders $ 27,635 Property and Casualty Reinsurance - Underwriting Ratios (1) : Loss ratio 67.1 % Acquisition cost ratio 37.6 % Composite ratio 104.7 % General and administrative expense ratio 3.8 % Combined ratio 108.5 % (1) Underwriting ratios are calculated by dividing the related expense by net premiums earned. Year Ended December 31, 2015 Property and Casualty Reinsurance Catastrophe Risk Management Corporate Total Revenues ($ in thousands) Gross premiums written $ 702,458 $ (44 ) $ — $ 702,414 Gross premiums ceded (1,876 ) — — (1,876 ) Net premiums written 700,582 (44 ) — 700,538 Change in net unearned premium reserves (97,766 ) 52 — (97,714 ) Net premiums earned 602,816 8 — 602,824 Expenses Loss and loss adjustment expenses incurred, net 415,041 150 — 415,191 Acquisition costs, net 191,217 (1 ) — 191,216 General and administrative expenses 24,815 447 20,771 46,033 Total expenses 631,073 596 20,771 652,440 Net underwriting loss (28,257 ) n/a n/a n/a Net investment income (loss) (10,810 ) 69 (17,333 ) (28,074 ) Other expenses (8,614 ) — — (8,614 ) Interest expense — — (7,236 ) (7,236 ) Foreign exchange gains — — 3,196 3,196 Income tax benefit — — 2,905 2,905 Net (income) loss attributable to noncontrolling interes ts in related party — 102 (53 ) 49 Segment loss $ (47,681 ) $ (417 ) $ (39,292 ) Net loss attributable to Third Point Re common shareholders $ (87,390 ) Property and Casualty Reinsurance - Underwriting Ratios (1) : Loss ratio 68.9 % Acquisition cost ratio 31.7 % Composite ratio 100.6 % General and administrative expense ratio 4.1 % Combined ratio 104.7 % (1) Underwriting ratios are calculated by dividing the related expense by net premiums earned. The following table lists the number of contracts that individually contributed more than 10% of total gross premiums written for the years ended December 31, 2017 , 2016 and 2015 as a percentage of total gross premiums written in the relevant year: 2017 2016 2015 Largest contract 16.1 % 16.1 % 16.1 % Second largest contract 14.1 % n/a 13.0 % Third largest contract 13.1 % n/a n/a Total for contracts contributing greater than 10% each 43.3 % 16.1 % 29.1 % Total for contracts contributing less than 10% each 56.7 % 83.9 % 70.9 % 100.0 % 100.0 % 100.0 % The following table lists counterparties with whom the Company has reinsurance balances receivable representing more than 10% of the Company’s total reinsurance balances receivable as of December 31, 2017 and 2016 : December 31, 2017 December 31, 2016 ($ in thousands) Counterparty 1 $ 80,187 16.8 % $ 82,162 21.5 % Counterparty 2 58,776 12.4 % n/a n/a Counterparty 3 51,613 10.8 % n/a n/a Counterparty 4 47,438 10.0 % n/a n/a 238,014 50.0 % 82,162 21.5 % Other counterparties representing less than 10% each 237,994 50.0 % 299,789 78.5 % Reinsurance balances receivable $ 476,008 100.0 % $ 381,951 100.0 % The following table provides a breakdown of the Company’s gross premiums written by line of business for the years ended December 31, 2017 , 2016 and 2015 : 2017 2016 2015 ($ in thousands) Property $ 136,999 21.4 % $ 98,334 15.9 % $ 114,215 16.2 % Casualty 269,759 42.0 % 213,050 34.5 % 235,510 33.5 % Specialty 125,511 19.6 % 305,990 49.6 % 244,669 34.9 % Total prospective reinsurance contracts 532,269 83.0 % 617,374 100.0 % 594,394 84.6 % Retroactive reinsurance contracts 109,351 17.0 % — — % 108,064 15.4 % Total property and casualty reinsurance 641,620 100.0 % 617,374 100.0 % 702,458 100.0 % Catastrophe risk management — — % — — % (44 ) — % $ 641,620 100.0 % $ 617,374 100.0 % $ 702,414 100.0 % Substantially all of the Company’s business is sourced through reinsurance brokers. The following table sets forth the Company’s premiums written by source that individually contributed more than 10% of total gross premiums written for the years ended December 31, 2017 , 2016 and 2015 : 2017 2016 2015 ($ in thousands) Largest broker $ 243,581 38.0 % $ 240,172 38.9 % $ 198,209 28.2 % Second largest broker 128,648 20.1 % 185,638 30.1 % 163,832 23.3 % Third largest broker 107,612 16.8 % 97,148 15.7 % 91,554 13.0 % Fourth largest broker n/a n/a n/a n/a 73,499 10.5 % Other 161,779 25.1 % 94,416 15.3 % 175,320 25.0 % $ 641,620 100.0 % $ 617,374 100.0 % $ 702,414 100.0 % The following table provides a breakdown of the Company’s gross premiums written by domicile of the ceding companies for the years ended December 31, 2017 , 2016 and 2015 : 2017 2016 2015 ($ in thousands) United States $ 352,539 54.9 % $ 332,849 53.9 % $ 283,626 40.4 % United Kingdom 203,768 31.8 % 187,625 30.4 % 290,710 41.4 % Bermuda 62,234 9.7 % 96,900 15.7 % 128,078 18.2 % Other 23,079 3.6 % — — % — — % $ 641,620 100.0 % $ 617,374 100.0 % $ 702,414 100.0 % |
Statutory Requirements
Statutory Requirements | 12 Months Ended |
Dec. 31, 2017 | |
Statutory Requirements [Abstract] | |
Statutory Requirements | Under the Bermuda Insurance Act 1978, as amended, and related regulations, Third Point Re BDA and Third Point Re USA are subject to capital requirements calculated using the Bermuda Solvency and Capital Requirement (“BSCR”) model, which is a standardized statutory risk-based capital model used to measure the risk associated with Third Point Re BDA’s and Third Point Re USA’s assets, liabilities and premiums. Third Point Re BDA’s and Third Point Re USA’s required statutory capital and surplus under the BSCR model is referred to as the enhanced capital requirement (“ECR”). Third Point Re BDA and Third Point Re USA are required to calculate and submit the ECR to the Bermuda Monetary Authority (“BMA”), annually. Following receipt of the submission of Third Point Re BDA’s and Third Point Re USA’s ECR, the BMA has the authority to impose additional capital requirements (capital add-ons) if it deems necessary. If a company fails to maintain or meet its ECR, the BMA may take various degrees of regulatory action. In 2016, the BMA implemented the economic balance sheet (“EBS”) framework, which is now used as the basis to determine the Company’s ECR. Under the new framework, assets and liabilities are mainly assessed and included on the EBS at fair value, with the insurer’s U.S. GAAP balance sheet serving as a starting point. The model also requires insurers to estimate insurance technical provisions, which consist of the insurer’s insurance related balances valued based on best-estimate cash flows, adjusted to reflect the time value of money using a risk-free discount rate, with the addition of a risk margin to reflect the uncertainty in the underlying cash flows. As of December 31, 2017 and 2016 , Third Point Re BDA and Third Point Re USA met their ECR. As of December 31, 2017 and 2016 , the principal difference between statutory capital and surplus and shareholders’ equity presented in accordance with GAAP is that prepaid expenses is a non-admitted asset for statutory purposes. Third Point Re BDA and Third Point Re USA are also required under their Class 4 licenses to maintain minimum liquidity ratios whereby the value of their relevant assets are not less than 75% of the amount of their relevant liabilities for general business. As of December 31, 2017 and 2016 , Third Point Re BDA and Third Point Re USA met their minimum liquidity ratio requirements. The following is a summary of actual and required statutory capital and surplus, based on the EBS framework, of Third Point Re BDA and Third Point Re USA as of December 31, 2017 and 2016 : December 31, 2017 December 31, 2016 ($ in thousands) Actual statutory capital and surplus Third Point Re BDA $ 1,430,174 $ 1,259,876 Third Point Re USA 265,206 282,552 Required statutory capital and surplus Third Point Re BDA 759,518 642,349 Third Point Re USA $ 93,261 $ 89,557 The following is a summary of the statutory net income (loss) for Third Point Re and Third Point Re USA for the years ended December 31, 2017 , 2016 and 2015 : 2017 2016 2015 ($ in thousands) Third Point Re BDA $ 265,903 $ 35,096 $ (68,188 ) Third Point Re USA $ 22,310 $ 2,701 $ (7,510 ) Dividend restrictions Third Point Re BDA Third Point Re BDA may declare dividends subject to it continuing to meet its solvency and capital requirements, which includes continuing to hold statutory capital and surplus equal to or exceeding its ECR. In addition, Third Point Re BDA is prohibited from declaring or paying in any fiscal year dividends of more than 25% of its prior year’s statutory capital and surplus unless Third Point Re BDA files with the BMA a signed affidavit by at least two members of the Board of Directors attesting that a dividend would not cause Third Point Re BDA to fail to meet its capital requirements. As of December 31, 2017 , Third Point Re BDA could pay dividends in 2018 of approximately $357.5 million (December 31, 2016 - $315.0 million ) without providing an affidavit to the BMA. Third Point Re USA Third Point Re USA may declare dividends subject to it continuing to meet its solvency and capital requirements, which includes continuing to hold statutory capital and surplus equal to or exceeding its ECR. Third Point Re USA is prohibited from declaring or paying in any fiscal year dividends of more than 25% of its prior year’s statutory capital and surplus, unless Third Point Re USA files with the BMA a signed affidavit by at least two members of the Board of Directors attesting that a dividend would not cause Third Point Re USA to fail to meet its capital requirements. Third Point Re USA is also restricted by the amount of shareholder’s equity that is available for the payment of dividends and must maintain a minimum shareholder’s equity of $250.0 million as per the Net Worth Maintenance Agreement. As of December 31, 2017 , Third Point Re USA could pay dividends in 2018 of approximately $24.3 million (December 31, 2016 - $19.6 million ). |
Supplemental guarantor informat
Supplemental guarantor information | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Supplemental guarantor information | Third Point Re fully and unconditionally guarantees the $115.0 million of debt obligations issued by TPRUSA, a wholly owned subsidiary. The following information sets forth the consolidating balance sheets as of December 31, 2017 and 2016 and the consolidating statements of income (loss) and cash flows for the years ended December 31, 2017 , 2016 and 2015 for Third Point Re, TPRUSA and the non-guarantor subsidiaries of Third Point Re. Investments in subsidiaries are accounted for on the equity method; accordingly, entries necessary to consolidate the parent guarantor, TPRUSA and all other subsidiaries are reflected in the eliminations column. CONSOLIDATING BALANCE SHEET As of December 31, 2017 (expressed in thousands of U.S. dollars) Third Point Re TPRUSA Non-Guarantor Subsidiaries Eliminations Consolidated Assets Equity securities $ — $ — $ 2,283,050 $ — $ 2,283,050 Debt securities — — 675,158 — 675,158 Other investments — — 37,731 — 37,731 Total investments in securities — — 2,995,939 — 2,995,939 Cash and cash equivalents 9 199 7,989 — 8,197 Restricted cash and cash equivalents — — 541,136 — 541,136 Investment in subsidiaries 1,657,467 274,272 164,909 (2,096,648 ) — Due from brokers — — 305,093 — 305,093 Derivative assets, at fair value — — 73,372 — 73,372 Interest and dividends receivable — — 3,774 — 3,774 Reinsurance balances receivable — — 476,008 — 476,008 Deferred acquisition costs, net — — 258,793 — 258,793 Amounts due from (to) affiliates (1,288 ) 412 876 — — Other assets 664 — 8,818 — 9,482 Total assets $ 1,656,852 $ 274,883 $ 4,836,707 $ (2,096,648 ) $ 4,671,794 Liabilities Accounts payable and accrued expenses (1) $ 763 $ (8,805 ) $ 42,674 $ — $ 34,632 Reinsurance balances payable — — 41,614 — 41,614 Deposit liabilities — — 129,133 — 129,133 Unearned premium reserves — — 649,518 — 649,518 Loss and loss adjustment expense reserves — — 720,570 — 720,570 Securities sold, not yet purchased, at fair value — — 394,278 — 394,278 Securities sold under an agreement to repurchase — — 29,618 — 29,618 Due to brokers — — 770,205 — 770,205 Derivative liabilities, at fair value — — 14,503 — 14,503 Interest and dividends payable — 3,055 1,220 — 4,275 Senior notes payable, net of deferred costs — 113,733 — — 113,733 Total liabilities 763 107,983 2,793,333 — 2,902,079 Redeemable noncontrolling interests in related party — — 108,219 — 108,219 Shareholders' equity Common shares 10,723 — 1,250 (1,250 ) 10,723 Treasury shares (48,253 ) — — — (48,253 ) Additional paid-in capital 1,099,599 165,097 1,531,770 (1,696,867 ) 1,099,599 Retained earnings (deficit) 594,020 1,803 396,728 (398,531 ) 594,020 Shareholders’ equity attributable to Third Point Re common shareholders 1,656,089 166,900 1,929,748 (2,096,648 ) 1,656,089 Noncontrolling interests in related party — — 5,407 — 5,407 Total shareholders’ equity 1,656,089 166,900 1,935,155 (2,096,648 ) 1,661,496 Total liabilities, noncontrolling interests and shareholders’ equity $ 1,656,852 $ 274,883 $ 4,836,707 $ (2,096,648 ) $ 4,671,794 (1) Negative balance of $8.8 million represents net deferred tax assets that are offset by net deferred tax liabilities in Third Point Re USA of $9.9 million , resulting in a net liability position as of December 31, 2017 . CONSOLIDATING BALANCE SHEET As of December 31, 2016 (expressed in thousands of U.S. dollars) Third Point Re TPRUSA Non-Guarantor Subsidiaries Eliminations Consolidated Assets Equity securities $ — $ — $ 1,506,854 $ — $ 1,506,854 Debt securities — — 1,057,957 — 1,057,957 Other investments — — 82,701 — 82,701 Total investments in securities — — 2,647,512 — 2,647,512 Cash and cash equivalents 1,629 79 8,243 — 9,951 Restricted cash and cash equivalents — — 298,940 — 298,940 Investment in subsidiaries 1,413,078 269,622 165,324 (1,848,024 ) — Due from brokers — — 284,591 — 284,591 Derivative assets, at fair value — — 27,432 — 27,432 Interest and dividends receivable — — 6,505 — 6,505 Reinsurance balances receivable — — 381,951 — 381,951 Deferred acquisition costs, net — — 221,618 — 221,618 Amounts due from (to) affiliates (142 ) (8,394 ) 8,536 — — Other assets 637 5,507 11,000 — 17,144 Total assets $ 1,415,202 $ 266,814 $ 4,061,652 $ (1,848,024 ) $ 3,895,644 Liabilities Accounts payable and accrued expenses $ 1,151 $ 40 $ 9,130 $ — $ 10,321 Reinsurance balances payable — — 43,171 — 43,171 Deposit liabilities — — 104,905 — 104,905 Unearned premium reserves — — 557,076 — 557,076 Loss and loss adjustment expense reserves — — 605,129 — 605,129 Securities sold, not yet purchased, at fair value — — 92,668 — 92,668 Due to brokers — — 899,601 — 899,601 Derivative liabilities, at fair value — — 16,050 — 16,050 Interest and dividends payable — 3,057 386 — 3,443 Senior notes payable, net of deferred costs — 113,555 — — 113,555 Total liabilities 1,151 116,652 2,328,116 — 2,445,919 Shareholders’ equity Common shares 10,650 — 1,250 (1,250 ) 10,650 Treasury shares (7,389 ) — — — (7,389 ) Additional paid-in capital 1,094,568 165,456 1,528,827 (1,694,283 ) 1,094,568 Retained earnings (deficit) 316,222 (15,294 ) 167,785 (152,491 ) 316,222 Shareholders’ equity attributable to Third Point Re common shareholders 1,414,051 150,162 1,697,862 (1,848,024 ) 1,414,051 Noncontrolling interests in related party — — 35,674 — 35,674 Total shareholders’ equity 1,414,051 150,162 1,733,536 (1,848,024 ) 1,449,725 Total liabilities, noncontrolling interests and shareholders’ equity $ 1,415,202 $ 266,814 $ 4,061,652 $ (1,848,024 ) $ 3,895,644 CONSOLIDATING STATEMENT OF INCOME Year Ended December 31, 2017 (expressed in thousands of U.S. dollars) Third Point Re TPRUSA Non-Guarantor Subsidiaries Eliminations Consolidated Revenues Gross premiums written $ — $ — $ 641,620 $ — $ 641,620 Gross premiums ceded — — (2,475 ) — (2,475 ) Net premiums written — — 639,145 — 639,145 Change in net unearned premium reserves — — (92,087 ) — (92,087 ) Net premiums earned — — 547,058 — 547,058 Net investment income — — 391,953 — 391,953 Equity in earnings (losses) of s ubsidiaries 283,088 22,309 (57 ) (305,340 ) — Total revenues 283,088 22,309 938,954 (305,340 ) 939,011 Expenses Loss and loss adjustment expenses incurred, net — — 370,058 — 370,058 Acquisition costs, net — — 188,904 — 188,904 General and administrative expenses 5,290 49 47,764 — 53,103 Other expenses — — 12,674 — 12,674 Interest expense — 8,225 — — 8,225 Foreign exchange losses — — 12,300 — 12,300 Total expenses 5,290 8,274 631,700 — 645,264 Income before income tax expense 277,798 14,035 307,254 (305,340 ) 293,747 Income tax (expense) benefit — 3,062 (15,038 ) — (11,976 ) Net income 277,798 17,097 292,216 (305,340 ) 281,771 Net income attributable to noncontrolling interests in related party — — (3,973 ) — (3,973 ) Net income available to Third Point Re common shareholders $ 277,798 $ 17,097 $ 288,243 $ (305,340 ) $ 277,798 CONSOLIDATING STATEMENT OF INCOME (LOSS) Year Ended December 31, 2016 (expressed in thousands of U.S. dollars) Third Point Re TPRUSA Non-Guarantor Subsidiaries Eliminations Consolidated Revenues Gross premiums written $ — $ — $ 617,374 $ — $ 617,374 Gross premiums ceded — — (2,325 ) — (2,325 ) Net premiums written — — 615,049 — 615,049 Change in net unearned premium reserves — — (24,859 ) — (24,859 ) Net premiums earned — — 590,190 — 590,190 Net investment inco me — — 98,825 — 98,825 Equity in earnings (losses) of sub sidiaries 32,347 2,701 (107 ) (34,941 ) — Total revenues 32,347 2,701 688,908 (34,941 ) 689,015 Expenses Loss and loss adjustment expenses incurred, net — — 395,932 — 395,932 Acquisition costs, net — — 222,150 — 222,150 General and administrative expenses 4,712 40 34,615 — 39,367 Other expenses — — 8,387 — 8,387 Interest expense — 8,231 — — 8,231 Foreign exchange gains — — (19,521 ) — (19,521 ) Total expenses 4,712 8,271 641,563 — 654,546 Income (loss) before income ta x (expense) benefit 27,635 (5,570 ) 47,345 (34,941 ) 34,469 Income tax (expens e) benefit — 2,895 (8,488 ) — (5,593 ) Net income (loss) 27,635 (2,675 ) 38,857 (34,941 ) 28,876 Net income attributable to noncontrolling inte rests in related party — — (1,241 ) — (1,241 ) Net inco me (loss) available to Third Point Re common shareholders $ 27,635 $ (2,675 ) $ 37,616 $ (34,941 ) $ 27,635 CONSOLIDATING STATEMENT OF LOSS Year Ended December 31, 2015 (expressed in thousands of U.S. dollars) Third Point Re TPRUSA Non-Guarantor Subsidiaries Eliminations Consolidated Revenues Gross premiums written $ — $ — $ 702,414 $ — $ 702,414 Gross premiums ceded — — (1,876 ) — (1,876 ) Net premiums written — — 700,538 — 700,538 Change in net unearned premium reserves — — (97,714 ) — (97,714 ) Net premiums earned — — 602,824 — 602,824 Net investment loss — — (28,074 ) — (28,074 ) Equity in earnings of subsidiaries (79,053 ) (7,510 ) (25 ) 86,588 — Total revenues (79,053 ) (7,510 ) 574,725 86,588 574,750 Expenses Loss and loss adjustment expenses incurred, net — — 415,191 — 415,191 Acquisition costs, net — — 191,216 — 191,216 General and administrative expenses 8,337 231 37,465 — 46,033 Other expenses — — 8,614 — 8,614 Interest expense — 7,236 — — 7,236 Foreign exchange gains — — (3,196 ) — (3,196 ) Total expenses 8,337 7,467 649,290 — 665,094 Loss before income tax benefit (87,390 ) (14,977 ) (74,565 ) 86,588 (90,344 ) Income tax benefit — 2,613 292 — 2,905 Net loss (87,390 ) (12,364 ) (74,273 ) 86,588 (87,439 ) Net loss attributable to noncontrolling interests in related party — — 49 — 49 Net loss attributable to Third Point Re common shareholders $ (87,390 ) $ (12,364 ) $ (74,224 ) $ 86,588 $ (87,390 ) CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2017 (expressed in thousands of U.S. dollars) Third Point Re TPRUSA Non-Guarantor Subsidiaries Eliminations Consolidated Operating activities Net income $ 277,798 $ 17,097 $ 292,216 $ (305,340 ) $ 281,771 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Equity in (earnings) losses of subsidiaries (283,088 ) (22,309 ) 57 305,340 — Share compensation expense 298 — 3,301 — 3,599 Net interest expense on deposit liabilities — — 2,800 — 2,800 Net unrealized gain on investments and derivatives — — (255,029 ) — (255,029 ) Net realized gain on investments and derivatives — — (225,016 ) — (225,016 ) Net foreign exchange losses — — 12,300 — 12,300 Amortization of premium and accretion of discount, net — 178 295 — 473 Changes in assets and liabilities: Reinsurance balances receivable — — (86,606 ) — (86,606 ) Deferred acquisition costs, net — — (37,175 ) — (37,175 ) Other assets (27 ) 5,507 2,191 — 7,671 Interest and dividends receivable, net — (2 ) 3,565 — 3,563 Unearned premium reserves — — 92,442 — 92,442 Loss and loss adjustment expense reserves — — 97,922 — 97,922 Accounts payable and accrued expenses (388 ) (8,845 ) 33,445 — 24,212 Reinsurance balances payable — — (1,463 ) — (1,463 ) Amounts due from (to) affiliates 1,146 (8,806 ) 7,660 — — Net cash used in operating activities (4,261 ) (17,180 ) (57,095 ) — (78,536 ) Investing activities Purchases of investments — — (3,099,525 ) — (3,099,525 ) Proceeds from sales of investments — — 3,228,251 — 3,228,251 Purchases of investments to cover short sales — — (791,753 ) — (791,753 ) Proceeds from short sales of investments — — 1,048,552 — 1,048,552 Change in due to/from brokers, net — — (149,898 ) — (149,898 ) Increase in securities sold under an agreement to repurchase — — 29,618 — 29,618 Change in restricted cash and cash equivalents — — (242,196 ) — (242,196 ) Net cash provided by investing activities — — 23,049 — 23,049 Financing activities Proceeds from issuance of Third Point Re common shares, net of costs 1,505 — — — 1,505 Purchases of Third Point Re common shares under share repurchase program (40,864 ) — — — (40,864 ) Decrease in deposit liabilities, net — — 19,113 — 19,113 Change in total noncontrolling interests in related party, net — — 73,979 — 73,979 Dividend received by (paid to) parent 42,000 17,300 (59,300 ) — — Net cash provided by financing activities 2,641 17,300 33,792 — 53,733 Net increase (decrease) in cash and cash equivalents (1,620 ) 120 (254 ) — (1,754 ) Cash and cash equivalents at beginning of year 1,629 79 8,243 — 9,951 Cash and cash equivalents at end of year $ 9 $ 199 $ 7,989 $ — $ 8,197 CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2016 (expressed in thousands of U.S. dollars) Third Point Re TPRUSA Non-Guarantor Subsidiaries Eliminations Consolidated Operating activities Net income (loss) $ 27,635 $ (2,675 ) $ 38,857 $ (34,941 ) $ 28,876 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Equity in (earnings) losses of subsidiaries (32,347 ) (2,701 ) 107 34,941 — Share compensation expense 543 — 8,395 — 8,938 Net interest income on deposit liabilities — — (164 ) — (164 ) Net unrealized gain on investments and derivatives — — (72,083 ) — (72,083 ) Net realized gain on investments and derivatives — — (33,179 ) — (33,179 ) Net foreign exchange gains — — (19,521 ) — (19,521 ) Amortization of premium and accretion of discount, net — 178 4,940 — 5,118 Changes in assets and liabilities: Reinsurance balances receivable — — (86,612 ) — (86,612 ) Deferred acquisition costs, net — — (24,525 ) — (24,525 ) Other assets (73 ) (2,894 ) (2,036 ) — (5,003 ) Interest and dividends receivable, net — 2 3,223 — 3,225 Unearned premium reserves — — 25,366 — 25,366 Loss and loss adjustment expense reserves — — 156,644 — 156,644 Accounts payable and accrued expenses (1,985 ) — (110 ) — (2,095 ) Reinsurance balances payable — — 19,786 — 19,786 Amounts due from (to) affiliates (204 ) 8,164 (7,960 ) — — Net cash provided by (used in) operating activities (6,431 ) 74 11,128 — 4,771 Investing activities Purchases of investments — — (3,729,944 ) — (3,729,944 ) Proceeds from sales of investments — — 3,504,598 — 3,504,598 Purchases of investments to cover short sales — — (1,264,404 ) — (1,264,404 ) Proceeds from short sales of investments — — 1,046,422 — 1,046,422 Change in due to/from brokers, net — — 367,019 — 367,019 Increase in securities sold under an agreement to repurchase — — (8,944 ) — (8,944 ) Change in restricted cash and cash equivalents — — 31,975 — 31,975 Contributed capital to subsidiaries (5,000 ) 5,000 — — — Contributed capital from parent and/or subsidiaries — (5,000 ) 5,000 — — Net cash used in investing activities (5,000 ) — (48,278 ) — (53,278 ) Financing activities Proceeds from issuance of common shares, net of costs 5,141 — — — 5,141 Purchases of Third Point Re common shares under share repurchase program (7,389 ) — — — (7,389 ) Increase in deposit liabilities — — 22,023 — 22,023 Change in total noncontrolling interests in related party, net — — 18,276 — 18,276 Dividend received by (paid to) parent 15,000 — (15,000 ) — — Net cash provided by financing activities 12,752 — 25,299 — 38,051 Net increase (decrease) in cash and cash equivalents 1,321 74 (11,851 ) — (10,456 ) Cash and cash equivalents at beginning of year 308 5 20,094 — 20,407 Cash and cash equivalents at end of year $ 1,629 $ 79 $ 8,243 $ — $ 9,951 CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2015 (expressed in thousands of U.S. dollars) Third Point Re TPRUSA Non-Guarantor Subsidiaries Eliminations Consolidated Operating activities Net loss $ (87,390 ) $ (12,364 ) $ (74,273 ) $ 86,588 $ (87,439 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities Equity in earnings of subsidiaries 79,053 7,510 25 (86,588 ) — Share compensation expense 542 — 10,329 — 10,871 Net interest expense on deposit liabilities — — 6,471 — 6,471 Net unrealized loss on investments and derivatives — — 32,354 — 32,354 Net realized gain on investments and derivatives — — (16,655 ) — (16,655 ) Net foreign exchange gains — — (3,196 ) — (3,196 ) Amortization of premium and accretion of discount, net — 157 167 — 324 Changes in assets and liabilities: Reinsurance balances receivable — — 8,768 — 8,768 Deferred acquisition costs, net — — (41,192 ) — (41,192 ) Other assets 36 (1,947 ) (5,904 ) — (7,815 ) Interest and dividends receivable, net — 3,055 (7,437 ) — (4,382 ) Unearned premium reserves — — 97,901 — 97,901 Loss and loss adjustment expense reserves — — 192,433 — 192,433 Accounts payable and accrued expenses 1,910 (478 ) 449 — 1,881 Reinsurance balances payable — — (2,548 ) — (2,548 ) Amounts due from (to) affiliates 1,685 (173 ) (1,512 ) — — Net cash provided by (used in) operating activities (4,164 ) (4,240 ) 196,180 — 187,776 Investing activities Purchases of investments — — (3,360,626 ) — (3,360,626 ) Proceeds from sales of investments — — 2,829,523 — 2,829,523 Purchases of investments to cover short sales — — (543,936 ) — (543,936 ) Proceeds from short sales of investments — — 792,344 — 792,344 Change in due to/from brokers, net — — (6,377 ) — (6,377 ) Decrease in securities purchased under an agreement to sell — — 29,852 — 29,852 Increase in securities sold under an agreement to repurchase — — 8,944 — 8,944 Change in restricted cash and cash equivalents — — 86,392 — 86,392 Contributed capital (to) from subsidiaries (158,000 ) (266,975 ) (25 ) 425,000 — Contributed capital from parent — 158,000 267,000 (425,000 ) — Net cash provided by (used in) investing activities (158,000 ) (108,975 ) 103,091 — (163,884 ) Financing activities Proceeds from issuance of common shares, net of costs 4,332 — — — 4,332 Proceeds from issuance of senior notes payable — 113,220 — — 113,220 Increase in deposit liabilities — — (65,842 ) — (65,842 ) Change in total noncontrolling interests in related party, net — — (24,137 ) — (24,137 ) Noncontrolling interest in Catastrophe Fund & Catastrophe Fund Manager — — (59,792 ) — (59,792 ) Dividend received by (paid to) parent 158,000 — (158,000 ) — — Net cash provided by (used in) financing activities 162,332 113,220 (307,771 ) — (32,219 ) Net increase (decrease) in cash and cash equivalents 168 5 (8,500 ) — (8,327 ) Cash and cash equivalents at beginning of year 140 — 28,594 — 28,734 Cash and cash equivalents at end of year $ 308 $ 5 $ 20,094 $ — $ 20,407 |
Quarterly Financial Results
Quarterly Financial Results | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly financial results | Three months ended December 31, September 30, June 30, March 31, ($ in thousands, except per share and share amounts) Revenues Gross premiums written $ 164,163 $ 174,539 $ 156,564 $ 146,354 Gross premiums ceded 75 — (1,425 ) (1,125 ) Net premiums written 164,238 174,539 155,139 145,229 Change in net unearned premium reserves (34,722 ) (68,564 ) 18,419 (7,220 ) Net premiums earned 129,516 105,975 173,558 138,009 Net investment income 67,150 88,968 107,325 128,510 Total revenues 196,666 194,943 280,883 266,519 Expenses Loss and loss adjustment expenses incurred, net 99,509 77,275 107,379 85,895 Acquisition costs, net 31,837 33,974 68,641 54,452 General and administrative expenses 14,299 13,218 15,014 10,572 Other expenses 3,822 3,846 2,105 2,901 Interest expense 2,074 2,074 2,051 2,026 Foreign exchange losses 2,067 5,437 4,781 15 Total expenses 153,608 135,824 199,971 155,861 Income before income tax (expense) benefit 43,058 59,119 80,912 110,658 Income tax (expense) benefit 2,104 (3,475 ) (5,307 ) (5,298 ) Net income 45,162 55,644 75,605 105,360 Net income attributable to noncontrolling interests in related party (813 ) (959 ) (1,027 ) (1,174 ) Net income available to Third Point Re common shareholders $ 44,349 $ 54,685 $ 74,578 $ 104,186 Earnings per share available to Third Point Re common shareholders Basic earnings per share available to Third Point Re common shareholders $ 0.44 $ 0.54 $ 0.73 $ 1.00 Diluted earnings per share available to Third Point Re common shareholders $ 0.42 $ 0.52 $ 0.71 $ 0.98 Weighted average number of common shares used in the determination of earnings per share Basic 101,405,772 101,391,145 102,283,844 104,013,871 Diluted 105,524,115 104,679,574 104,569,226 105,701,599 Three months ended December 31, September 30, June 30, March 31, ($ in thousands, except per share and share amounts) Revenues Gross premiums written $ 80,779 $ 142,573 $ 196,866 $ 197,156 Gross premiums ceded 27 (927 ) (1,425 ) — Net premiums written 80,806 141,646 195,441 197,156 Change in net unearned premium reserves 111,277 (13,463 ) (62,319 ) (60,354 ) Net premiums earned 192,083 128,183 133,122 136,802 Net investment income (loss) (35,767 ) 88,356 86,346 (40,110 ) Total revenues 156,316 216,539 219,468 96,692 Expenses Loss and loss adjustment expenses incurred, net 122,110 85,015 104,131 84,676 Acquisition costs, net 76,854 45,127 48,482 51,687 General and administrative expenses 5,482 12,354 10,243 11,288 Other expenses 2,161 347 3,173 2,706 Interest expense 2,068 2,069 2,046 2,048 Foreign exchange gains (5,162 ) (3,905 ) (8,068 ) (2,386 ) Total expenses 203,513 141,007 160,007 150,019 Income (loss) before income tax (expense) benefit (47,197 ) 75,532 59,461 (53,327 ) Income tax (expense) benefit 272 (2,484 ) (5,310 ) 1,929 Net income (loss) (46,925 ) 73,048 54,151 (51,398 ) Net (income) loss attributable to noncontrolling interests in related party 232 (967 ) (775 ) 269 Net income (loss) available to Third Point Re common shareholders $ (46,693 ) $ 72,081 $ 53,376 $ (51,129 ) Earnings (loss) per share available to Third Point Re common shareholders Basic earnings (loss) per share available to Third Point Re common shareholders $ (0.45 ) $ 0.69 $ 0.51 $ (0.49 ) Diluted earnings (loss) per share available to Third Point Re common shareholders $ (0.45 ) $ 0.68 $ 0.51 $ (0.49 ) Weighted average number of common shares used in the determination of earnings (loss) per share Basic 104,072,283 103,780,196 104,132,797 104,257,874 Diluted 104,072,283 105,795,313 105,233,921 104,257,874 |
Schedule I - Summary of Investm
Schedule I - Summary of Investments - Other than Investments in Related Parties | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Schedule I - Summary of Investments - Other than Investments in Related Parties | Schedule I - Summary of Investments - Other than Investments in Related Parties (expressed in thousands of U.S. dollars) Cost Fair value Balance sheet value Assets Equity securities $ 1,822,021 $ 2,221,130 $ 2,221,130 Private common equity securities 4,445 4,794 4,794 Private preferred equity securities 42,269 57,126 57,126 Total equities 1,868,735 2,283,050 2,283,050 Asset-backed securities 249,254 225,499 225,499 Bank debt 14,377 14,550 14,550 Corporate bonds 78,794 77,086 77,086 U.S. Treasury securities 253,746 249,994 249,994 Sovereign debt 109,786 102,569 102,569 Other debt securities 5,365 5,460 5,460 Total debt securities 711,322 675,158 675,158 Investments in limited partnerships 11,090 17,008 17,008 Options 5,123 4,951 4,951 Rights and warrants — 603 603 Real estate 6,770 6,831 6,831 Trade claims 998 7,496 7,496 Investment in Kiskadee Fund 1,661 842 842 Total other investments 25,642 37,731 37,731 Total investments $ 2,605,699 $ 2,995,939 $ 2,995,939 |
Schedule III - Supplementary In
Schedule III - Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2017 | |
Supplementary Insurance Information [Abstract] | |
Schedule III - Supplementary Insurance Information | Schedule III - Supplementary Insurance Information For the years ended December 31, 2017 , 2016 and 2015 (expressed in thousands of U.S. dollars) As of and for the year ended December 31, 2017 Deferred acquisition costs, net Loss and loss adjustment expense reserves Unearned premium Net premiums earned Net investment income Other expenses Loss and loss adjustment expenses incurred, net Amortization of deferred acquisition costs, net Other operating expenses Net premiums written Property and Casualty Reinsurance $ 258,793 $ 720,570 $ 649,518 $ 547,058 $ 114,435 $ 12,674 $ 370,058 $ 188,904 $ 30,656 $ 639,145 Catastrophe Risk Management — — — — — — — — — — Corporate — — — — 277,518 — — — 22,447 — $ 258,793 $ 720,570 $ 649,518 $ 547,058 $ 391,953 $ 12,674 $ 370,058 $ 188,904 $ 53,103 $ 639,145 As of and for the year ended December 31, 2016 Deferred acquisition costs, net Loss and loss adjustment expense reserves Unearned premium Net premiums earned Net investment income Other expenses Loss and loss adjustment expenses incurred, net Amortization of deferred acquisition costs, net Other operating expenses Net premiums written Property and Casualty Reinsurance $ 221,618 $ 605,129 $ 557,076 $ 590,190 $ 16,931 $ 8,387 $ 395,932 $ 222,150 $ 22,160 $ 615,049 Catastrophe Risk Management — — — — — — — — — — Corporate — — — — 81,894 — — — 17,207 — $ 221,618 $ 605,129 $ 557,076 $ 590,190 $ 98,825 $ 8,387 $ 395,932 $ 222,150 $ 39,367 $ 615,049 As of and for the year ended December 31, 2015 Deferred acquisition costs, net Loss and loss adjustment expense reserves Unearned premium Net premiums earned Net investment income (loss) Other expenses Loss and loss adjustment expenses incurred, net Amortization of deferred acquisition costs, net Other operating expenses Net premiums written Property and Casualty Reinsurance $ 197,093 $ 466,047 $ 531,710 $ 602,816 $ (10,810 ) $ 8,614 $ 415,041 $ 191,217 $ 24,815 $ 700,582 Catastrophe Risk Management — — — 8 69 — 150 (1 ) 447 (44 ) Corporate — — — — (17,333 ) — — — 20,771 — $ 197,093 $ 466,047 $ 531,710 $ 602,824 $ (28,074 ) $ 8,614 $ 415,191 $ 191,216 $ 46,033 $ 700,538 |
Schedule IV - Reinsurance
Schedule IV - Reinsurance | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | |
Schedule IV - Reinsurance | Schedule IV - Reinsurance For the years ended December 31, 2017 , 2016 and 2015 (expressed in thousands of U.S. dollars) Direct gross premiums written Ceded to other companies Assumed from other companies Net amount Percentage of amount assumed to net Year ended December 31, 2017 $ — $ 2,475 $ 641,620 $ 639,145 100 % Year ended December 31, 2016 $ — $ 2,325 $ 617,374 $ 615,049 100 % Year ended December 31, 2015 $ — $ 1,876 $ 702,414 $ 700,538 100 % |
Significant accounting polici35
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Use of estimates | Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported and disclosed amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The major estimates reflected in the Company’s consolidated financial statements include, but are not limited to, the loss and loss adjustment expense reserves, estimates of written and earned premiums and fair value of financial instruments. |
Cash and restricted cash and cash equivalents | Cash and restricted cash and cash equivalents Cash and cash equivalents consist of cash held in banks and other short-term, highly liquid investments with original maturity dates of ninety days or less. Restricted cash and cash equivalents consist of cash held in trust accounts securing obligations under certain reinsurance contracts and cash held with brokers and in trust accounts securing letters of credit issued under credit facilities. |
Premium revenue recognition | Premium revenue recognition To the extent that the amount of written premium is estimable, the Company estimates the ultimate premiums for the entire contract period and records this estimate at the inception of the contract. For contracts where the full written premium is not estimable at inception, the Company records written premium for the portion of the contract period for which the amount is estimable. These estimates are based primarily on information in the underlying contracts as well as information provided by clients and/or brokers. Changes in premium estimates are expected and may result in adjustments in any reporting period. These estimates change over time as additional information regarding the underlying business volume is obtained. Any subsequent adjustments arising on such estimates are recorded in the period in which they are determined. Premiums written are earned over the exposure period in proportion to the period of risk covered. Unearned premiums represent the portion of premiums written that relate to the remaining term of the underlying policies in force. Premiums for retroactive exposures in reinsurance contracts are earned at the inception of the contract, as all of the underlying loss events covered by these exposures occurred in the past. If the estimated loss and loss adjustment expense reserve differs from the premium received at inception of a retroactive reinsurance contract, the resulting difference is deferred and recognized over the estimated claim payment period of the related contract with the periodic amortization reflected in earnings as a component of loss and loss adjustment expenses incurred. |
Reinsurance premiums ceded | Reinsurance premiums ceded From time to time, the Company reduces the risk of losses on business written by reinsuring certain risks and exposures with other reinsurers. The Company remains liable to the extent that any retrocessionaire fails to meet its obligations and to the extent that the Company does not hold sufficient security for their unpaid obligations. Ceded premiums are written during the period in which the risks incept and are earned over the contract period in proportion to the period of risk covered. Unearned premiums ceded consist of the unexpired portion of reinsurance ceded. |
Deferred acquisition costs | Deferred acquisition costs Acquisition costs consist of commissions, brokerage and excise taxes that are related directly to the successful acquisition of new or renewal reinsurance contracts. These costs are deferred and amortized over the period in which the related premiums are earned. 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 expected future loss and loss adjustment expenses and acquisition costs. If a loss is probable on the unexpired portion of contracts in force, a premium deficiency loss is recognized. As of December 31, 2017 , deferred acquisition costs are considered to be fully recoverable and no premium deficiency has been recorded. Acquisition costs also include profit commissions that 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 | Loss and loss adjustment expense reserves The Company’s loss and loss adjustment expense reserves include case reserves, reserves for losses incurred but not yet reported (“IBNR reserves”) and deferred gains on retroactive reinsurance contracts. Case reserves are established for losses that have been reported, but not yet paid. IBNR reserves represent the estimated loss and loss adjustment expenses that have been incurred by insureds and reinsureds but not yet reported to the insurer or reinsurer, including unknown future development on loss and loss adjustment expenses that are known to the insurer or reinsurer. IBNR reserves are established by management based on actuarially determined estimates of ultimate loss and loss adjustment expenses. Deferred gains represent the underwriting profit related to retroactive exposures in reinsurance contracts at inception and are deferred and amortized over the estimated future settlement period of the contract. Deferred gains are included in loss and loss adjustment expense reserves. If the premium received is lower than the estimated loss and loss adjustment expense reserves assumed at inception of a retroactive reinsurance contract, the resulting difference is deferred and recorded in other assets. This difference is also amortized over the estimated future settlement period of the contract. Inherent in the estimate of ultimate loss and loss adjustment expenses are expected trends in claim severity and frequency and other factors that may vary significantly as claims are settled. Accordingly, ultimate loss and loss adjustment expenses may differ materially from the amounts recorded in the consolidated financial statements. These estimates are reviewed regularly and, as experience develops and new information becomes known, the reserves are adjusted as necessary. Such adjustments, if any, are recorded in the consolidated statements of income (loss) in the period in which they become known. |
Deposit liabilities | Deposit liabilities Certain contracts do not transfer sufficient insurance risk to be deemed reinsurance contracts and are accounted for using the deposit method of accounting. Management exercises judgment in determining whether contracts transfer sufficient risk to be accounted for as reinsurance contracts. Using the deposit method of accounting, a deposit liability, rather than written premium, is initially recorded based upon the consideration received less any explicitly identified premiums or fees. In subsequent periods, the deposit liability is adjusted by calculating the effective yield on the deposit to reflect actual payments to date and future expected payments. In some cases, the effective yield on the contract may be negative, which will result in the recognition of other income. |
Fair value measurement | Fair value measurement The Company determines the fair value of financial instruments in accordance with current accounting guidance, which defines fair value and establishes a three level fair value hierarchy based upon the transparency of inputs used in the valuation of an asset or liability. Fair value is defined as the price that the Company would receive to sell an asset or would pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Company determines the estimated fair value of each individual security utilizing the highest level inputs available. The fair value of the Company’s assets and liabilities, which qualify as financial instruments, approximates the carrying amounts presented in the consolidated balance sheets. |
Investments | Investments The Company’s investments are classified as “trading securities” and are carried at fair value with changes in fair value included in earnings in the consolidated statements of income (loss) . The fair value of the Company’s investments are based on quoted market prices, or when such prices are not available, by reference to broker or underwriter bid indications, industry recognized pricing vendors, and/or internal pricing valuation techniques. Investment transactions are recorded on a trade date basis with balances pending settlement included in due to/from brokers in the consolidated balance sheets. Realized gains and losses are determined using cost calculated on a specific identification basis. Dividends are recorded on the ex-dividend date. Income and expenses are recorded on the accrual basis including interest and premiums amortized and discounts accreted. |
Derivatives | Derivatives Investments Derivative instruments within our investment assets managed by our investment manager, Third Point LLC, are recorded in the consolidated balance sheets at fair value, with changes in fair values and realized gains and losses recognized in net investment income (loss) in the consolidated statements of income (loss) . Derivatives serve as a key component of the Company’s investment strategy and are utilized primarily to structure the portfolio, or individual investments, and to economically match the investment objectives of the Company. The Company’s derivatives do not qualify as hedges for financial reporting purposes and are recorded in the consolidated balance sheets on a gross basis and not offset against any collateral pledged or received. Pursuant to the International Swaps and Derivatives Association (“ISDA”) master agreements, securities lending agreements and other derivatives agreements, the Company and its counterparties typically have the ability to net certain payments owed to each other in specified circumstances. In addition, in the event a party to one of the ISDA master agreements, securities lending agreements or other derivatives agreements defaults, or a transaction is otherwise subject to termination, the non-defaulting party generally has the right to set off against payments owed to the defaulting party or collateral held by the non defaulting party. The Company enters into derivative contracts to manage credit risk, interest rate risk, currency exchange risk and other exposure risks. The Company uses derivatives in connection with its risk-management activities to economically hedge certain risks and to gain exposure to certain investments. The utilization of derivative contracts also allows for an efficient means by which to trade certain asset classes. Fair values of derivatives are determined by using quoted market prices, industry recognized pricing vendors and counterparty quotes when available; otherwise fair values are based on pricing models that consider the time value of money, volatility and the current market and contractual prices of underlying financial instruments. Embedded derivatives Certain of the Company’s reinsurance contracts contain interest crediting features that vary based on the net investment return on investments managed by Third Point LLC. These contractual features are considered embedded derivatives in accordance with U.S. GAAP. We include the estimated fair value of these embedded derivatives in the consolidated balance sheets with the host contract in order to reflect the expected settlement of these features with the host contract. The change in estimated fair value of these embedded derivatives are recorded in other expenses in the consolidated statements of income (loss). |
Share-based compensation | Share-based compensation The Company accounts for its share-based compensation transactions using the fair value of the award at the grant date and accounts for forfeitures when they occur. Determining the fair value of share purchase options at the grant date requires estimation and judgment. The Company uses an option-pricing model (Black-Scholes) to calculate the fair value of share purchase options. For share purchase options or restricted share awards granted that contain both a service and performance condition, the Company recognizes share compensation expense only for the portion of the options or restricted share awards that are considered probable of vesting. Share compensation for share purchase options or restricted share awards considered probable of vesting is expensed over the service (vesting) period on a graded vesting basis. The probability of share purchase options or restricted share awards vesting is evaluated at each reporting period. When the share purchase options or restricted share awards are considered probable of vesting, the Company records a true up of share compensation expense from the grant date (service inception date) to the current reporting period end based on the fair value of the options or restricted share awards at the grant date. The Company measures grant date fair value for restricted share awards, with a service condition only, based on the price of its common shares at the grant date and the expense is recognized on a straight-line basis over the vesting period. |
Warrants | Warrants The Company accounts for warrant contracts issued to certain of its founding investors (“Founders”) in conjunction with the initial capitalization of the Company by using either the physical settlement or net-share settlement methods. The fair value of these warrants was recorded in equity as additional paid-in capital. The fair value of warrants issued are estimated on the grant date using the Black-Scholes option-pricing model. The Company accounts for certain warrant contracts issued to an advisor, where services have been received by the Company, in part, in exchange for equity instruments, based on the fair value of such services. The associated cost of these warrants has been recorded as capital raise costs and is included in additional paid in capital in the consolidated statements of shareholders’ equity. |
Offering costs | Debt offering costs Costs incurred in issuing debt, which includes underwriters’ fees, legal and accounting fees, printing and other fees are capitalized and presented as a direct deduction from the principal amount of senior notes payable in the consolidated balance sheets. These costs are amortized over the term of the debt and are included in interest expense in the consolidated statements of income (loss) . |
Other Expenses [Policy Text Block] | Other expenses Other expenses are comprised of expenses relating to interest crediting features in certain reinsurance and deposit contracts as well as changes in value of embedded derivatives in reinsurance contracts and deposit liability contracts that have variable interest crediting features. Variable and fixed interest crediting features are calculated on funds transferred to the Company where interest is credited based on actual cash received into a notional experience account. The ceding company can typically elect to commute at specific points in time in exchange for the amounts held in the notional experience account. For those contracts that contain variable interest crediting features, actual investment returns realized by the Company are included in the calculation, which can increase the overall effective interest crediting rate on those contracts. Variable interest credit features are accounted for as embedded derivatives. Fixed interest credits on reinsurance contracts and deposit liability contracts and changes in value of embedded derivative are included other expenses in the consolidated statements of income (loss) . |
Foreign currency transactions | Foreign currency transactions The Company’s functional currency is the U.S. dollar. Transactions involving monetary assets and liabilities denominated in foreign currencies have been converted into U.S. dollars at the exchange rate in effect on the balance sheet date, and the related revenues and expenses are converted using specific rates for the period, as appropriate. Net foreign currency transaction gains and losses arising from these activities are reported in the consolidated statements of income (loss) in the period in which they arise. Certain of the Company's investments are denominated in foreign currencies and thus, are subject to the risk associated with foreign currency fluctuations. These investments are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of investments and income and expenses denominated in foreign currencies are translated in U.S. dollar amounts on the respective dates of such transactions. The Company does not isolate the portion of the net investment income (loss) resulting from changes in foreign exchange rates on investments, dividends and interest from the fluctuations arising from changes in fair values of securities and derivatives held within the total net investments managed by Third Point LLC. Periodic payments received or paid on swap agreements are recorded as realized gain or loss on investment transactions. Such fluctuations are included within net investment income (loss) in the consolidated statements of income (loss) . |
Income taxes and uncertain tax positions | Income taxes, withholding taxes and uncertain tax positions The Company provides for income taxes for its operations in income tax paying jurisdictions. The Company’s provision relies on estimates and interpretations of currently enacted tax laws. The Company recognizes deferred tax assets and liabilities based on the temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities. Such temporary differences are primarily due to tax basis discounts on loss and loss adjustment expense reserves and unearned premiums, deferred acquisition costs and unrealized gains (losses) on investments. A valuation allowance against deferred tax assets is recorded if it is more likely than not that all, or some portion, of the benefits related to deferred tax assets will not be realized. Any adjustments to deferred income taxes are accounted for as changes in estimates and are reflected in the consolidated statements of income (loss) in the year in which they are made. Adjustments could be material and could significantly impact earnings in the year they are recorded. The Company is subject to withholding tax obligations related to dividends, capital gains and interest on certain investments. These withholding taxes are recorded when they become payable and are included in income tax expense (benefit) in the Company’s consolidated statements of income (loss) . The Company has recognized uncertain tax positions related to certain investment transactions in foreign jurisdictions. The Company records its uncertain tax positions based on an estimate of the potential liability, including potential interests and penalties, arising from its investment transactions conducted in foreign countries. The changes in the Company’s uncertain tax position is included in income tax expense (benefit) in the Company’s consolidated statements of income (loss) . |
Non-controlling interests | Noncontrolling interests in related party The Company consolidates the results of entities in which it has a controlling financial interest. Redeemable noncontrolling interests with redemption features that are not solely within the Company’s control are presented as a mezzanine item, between liabilities and shareholders’ equity, in the Company’s consolidated balance sheets and non-redeemable noncontrolling interests are presented as a separate line within shareholders’ equity in the consolidated balance sheets. The Company records the portion of net (income) loss attributable to noncontrolling interests in related party as a separate line within the consolidated statements of income (loss) . Changes in the presentation of noncontrolling interests During the year ended December 31, 2017, the Company identified that a portion of its noncontrolling interests were redeemable. See additional information regarding noncontrolling interests in Note 17 . This portion of the noncontrolling interests had previously been presented in noncontrolling interests to related party within shareholders’ equity when it should have been presented in the mezzanine section of the consolidated balance sheet as redeemable noncontrolling interests in related party. As of December 31, 2016, $31.2 million of the noncontrolling interests in related party should have been presented in the mezzanine section of the consolidated balance sheet as redeemable noncontrolling interests in related party and should have been excluded from noncontrolling interests in related party in shareholders’ equity. Although this impacted total shareholders’ equity, it did not impact shareholders’ equity attributable to Third Point Re common shareholders or retained earnings. In addition, this change did not impact the consolidated statements of income, earnings per share or consolidated statement of cash flows. The Company has evaluated the effect of the incorrect presentation, both qualitatively and quantitatively, and concluded that it did not have a material impact on, nor require amendment of, any previously filed annual or quarterly consolidated financial statements. |
Earnings per share | Earnings (loss) per share Basic earnings (loss) per share is based on the weighted average number of common shares and participating securities outstanding during the period. The weighted average number of common shares excludes any dilutive effect of outstanding warrants, options and unvested restricted shares. Diluted earnings (loss) per share is based on the weighted average number of common shares and participating securities outstanding and includes any dilutive effects of warrants, options and unvested restricted shares under share plans and are determined using the treasury stock method. U.S. GAAP requires that unvested share awards that contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid (referred to as “participating securities”), be treated in the same manner as outstanding shares for earnings per share calculations. The Company treats certain of its unvested restricted shares as participating securities. In the event of a net loss, all participating securities, outstanding warrants, options and restricted shares are excluded from both basic and diluted loss per share since their inclusion would be anti-dilutive. |
Leases | Leases Leases in which substantially all of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are recognized in the consolidated statements of income (loss) on a straight-line basis over the term of the lease. |
Comprehensive income | Comprehensive income The Company has no comprehensive income other than net income disclosed in the consolidated statements of income (loss) . |
Segment information | Segment information Under U.S. GAAP, operating segments are based on the internal information that management uses for allocating resources and assessing performance of the Company. The Company reports one operating segment, Property and Casualty Reinsurance. The Company also has a corporate function that includes the Company’s investment income on capital, certain general and administrative expenses related to its corporate activities, interest expense, foreign exchange gains (losses) and income tax (expense) benefit. Prior to 2016, the Company had another segment, Catastrophe Risk Management, however, as of December 31, 2015, all investments in the Catastrophe Fund had been redeemed. In February 2016, the Company completed the dissolution of the Catastrophe Fund and Catastrophe Reinsurer. As a result, there is no further activity in the Catastrophe Risk Management segment. |
Treasury, shares | Treasury shares Common shares repurchased by the Company and not canceled are classified as treasury shares. Treasury shares are recorded at cost, which results in a reduction of shareholders’ equity in the consolidated balance sheets. When shares are reissued from treasury, the Company uses the average cost method to determine the cost of the reissued shares. Gains on sales of treasury shares are credited to additional paid-in capital, while losses are charged to additional paid-in capital to the extent that previous net gains from sales of treasury shares are included therein; otherwise, losses are charged to retained earnings. |
Recently issued accounting standards | Recent accounting pronouncements Adoption of New Accounting Standards In March 2016, the FASB issued Accounting Standards Update 2016-06, Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments (ASU 2016-06). ASU 2016-06 clarifies that determining whether the economic characteristics of a put or call are clearly and closely related to its debt host requires only an assessment of the four-step decision sequence outlined in FASB ASC paragraph 815-15-25-24. Additionally, entities are not required to separately assess whether the contingency itself is clearly and closely related. The ASU is effective for interim and annual periods in fiscal years beginning after December 15, 2016. As a result of the Company’s investments being valued at fair value and the Company not holding the type of instruments addressed by the adoption of ASU 2016-06, the adoption of this standard did not have any impact on the Company’s consolidated financial statements. In March 2016, the FASB issued Accounting Standards Update 2016-07, I nvestments - Equity Method and Joint Ventures: Simplifying the Transition to the Equity Method of Accounting (ASU 2016-07). ASU 2016-07 simplifies the equity method of accounting by eliminating the requirement to retrospectively apply the equity method to an investment that subsequently qualifies for such accounting as a result of an increase in the level of ownership interest or degree of influence. ASU 2016-07 is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. None of the Company’s investments qualify for the simplification in ASU 2016-07. As a result, the adoption of this standard did not have any impact on the Company’s consolidated financial statements. In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2016-09, Improvements to Employee Share-Based Payment Accounting (ASU 2016-09). ASU 2016-09 simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. The Company made the election to account for forfeitures when they occur, which resulted in no material impact on the Company’s consolidated financial statements. In October 2016, the FASB issued Accounting Standards Update 2016-17, Consolidation (Topic 810): Interests held through Related Parties that are under Common Control (ASU 2016-17). ASU 2016-17 alters how the Company needs to consider indirect interests in a variable interest entity held through an entity under common control. The new guidance amended ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis , issued in February 2015. ASU 2016-17 is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. The adoption of ASU 2016-17 did not have a material impact on the Company’s consolidated financial statements. Recently Issued Accounting Standards Not Yet Adopted In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (ASU 2014-09). ASU 2014-09 provides a framework, through a five-step process, for recognizing revenue from customers, improves comparability and consistency of recognizing revenue across entities, industries, jurisdictions and capital markets, and requires enhanced disclosures. Certain contracts with customers are specifically excluded from the scope of ASU 2014-09, including amongst others, insurance contracts accounted for under Accounting Standard Codification 944, Financial Services - Insurance . ASU 2014-09 is effective on January 1, 2017 with retrospective adoption required for the comparative periods. Insurance contracts are specifically excluded from ASU 2014-09 and we do not currently have any other revenue generating activities for which this standard would be applicable. As a result, this new pronouncement is not expected to have a material impact on the Company’s consolidated financial statements. In January 2016, the FASB issued Accounting Standards Update 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01). ASU 2016-01 intends to provide users of financial statements with more useful information on the recognition, measurement, presentation, and disclosure of financial instruments. The new standard affects all entities that hold financial assets or owe financial liabilities. ASU 2016-01 is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. This new pronouncement is not expected to have a material impact on the Company’s consolidated financial statements since all of the Company’s investments are valued at fair market value. In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (Topic 842): Section A - Leases, Section B - Conforming Amendments Related to Leases and Section C - Background Information and Basis for Conclusions (ASU 2016-02). ASU 2016-02 intends to improve financial reporting related to leasing transactions. The new standard affects all entities that lease assets such as real estate, airplanes and manufacturing equipment. ASU 2016-02 will require entities that lease assets, referred to as “lessees”, to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. ASU 2016-02 is effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company is currently evaluating the impact of this guidance; however, it is not expected to have a material impact on the Company’s consolidated financial statements as a result of the limited number of leases the Company currently has in place. In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). ASU 2016-13 amends the guidance on the impairment of financial instruments. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which the FASB believes will result in more timely recognition of such losses. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company is currently evaluating the impact of this guidance on the Company’s consolidated financial statements. In August 2016, the FASB issued Accounting Standards Update 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (ASU 2016-15). ASU 2016-15 is intended at reducing diversity in practice and addresses eight specific issues in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. To date, the Company has not entered into any of the eight types of transactions addressed in ASU 2016-15. As a result, this new accounting standard is not expected to have a material impact on the Company’s consolidated financial statements when it becomes effective. In November 2016, the FASB issued Accounting Standards Update 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force). ASU 2016-18 clarifies guidance on the classification and presentation of restricted cash in the statement of cash flows, specifically, the Company should include in its cash and cash-equivalent balances in the statement of cash flows those amounts that are deemed to be restricted cash and cash equivalents. An entity with a material balance of amounts generally described as restricted cash and cash equivalents must disclose information about the nature of the restrictions. ASU 2016-18 is effective for fiscal years beginning after December 15, 2017, and interim periods therein. The Company will begin classifying its restricted cash and cash equivalents within the statement of cashflows and will include additional disclosures in accordance with ASU 2016-18 in its consolidated financial statements for the fiscal years beginning after December 31, 2017 and interim periods within those fiscal years. In March 2017, the FASB issued Accounting Standards Update 2017-08, Premium Amortization on Purchased Callable Debt Securities (ASU 2017-08). ASU 2017-08 is intended to enhance the accounting for the amortization of premiums for purchased callable debt securities.The amendments are effective for interim and annual periods beginning after December 15, 2018. The Company is currently evaluating the impact of this guidance on the Company’s consolidated financial statements. In May 2017, the FASB issued Accounting Standards Update 2017-09, Compensation — Stock Compensation (Topic 718): Scope of Modification Accounting (ASU 2017-09). ASU 2017-09 is intended to reduce diversity in practice and subsequent to its adoption, an entity will not apply modification accounting as a result of changes to terms and conditions of a share-based payment award if certain conditions are met. The amendments in ASU 2017-09 are effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. This new accounting standard is not expected to have a material impact on the Company’s consolidated financial statements when it becomes effective. In July 2017, the FASB issued Accounting Standards Update 2017-11, (Part I) Accounting for Certain Financial Instruments With Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests With a Scope Exception (ASU 2017-11). ASU 2017-11 is intended to reduce the complexity associated with accounting for certain financial instruments with characteristics of liabilities and equity. Specifically, a down round feature would no longer cause a freestanding equity-linked financial instrument (or an embedded conversion option) to be accounted for as a derivative liability at fair value with changes in fair value recognized in current earnings. In addition, ASU 2017-11 re-characterizes the indefinite deferral of certain provisions of Topic 480 to a scope exception. The recharacterization has no accounting effect. The amendments are effective for interim and annual periods beginning after December 15, 2018. The Company does not currently have financial instruments with down round features, therefore, the Company does not expect any impact to the Company’s consolidated financial statements. |
Restricted cash and cash equi36
Restricted cash and cash equivalents and investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of restricted cash and cash equivalents | Restricted cash and cash equivalents and restricted investments as of December 31, 2017 and 2016 consisted of the following: 2017 2016 ($ in thousands) Restricted cash securing letter of credit facilities (1) $ 250,487 $ 231,822 Restricted cash securing other reinsurance contracts (2) 290,649 67,118 Total restricted cash and cash equivalents 541,136 298,940 Restricted investments securing other reinsurance contracts (2) 326,429 427,308 Total restricted cash and cash equivalents and restricted investments $ 867,565 $ 726,248 (1) Restricted cash securing letter of credit facilities primarily pertains to letters of credit issued to clients and cash securing these obligations that the Company will not be released until the underlying reserves have been settled. The time period for which the Company expects these letters of credit to be in place varies from contract to contract, but can last several years. (2) Restricted cash and restricted investments securing other reinsurance contracts pertain to trust accounts securing the Company’s contractual obligations under certain reinsurance contracts that the Company will not be released from until all underlying risks have expired or have been settled. Restricted investments include certain investments in debt securities including U.S. Treasury securities and sovereign debt. The time period for which the Company expects these trust accounts to be in place varies from contract to contract, but can last several years. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Investments Managed by TP LLC | The Company’s investments are managed by its investment manager, Third Point LLC (“Third Point LLC” or the “Investment Manager”), under long-term investment management contracts. The Company directly owns the investments that are held in separate accounts and managed by Third Point LLC. The following is a summary of the separate accounts managed by Third Point LLC: 2017 2016 Assets ($ in thousands) Total investments in securities $ 2,995,097 $ 2,619,839 Cash and cash equivalents 8 5 Restricted cash and cash equivalents 541,136 298,940 Due from brokers 305,093 284,591 Derivative assets, at fair value 73,372 27,432 Interest and dividends receivable 3,774 6,505 Total assets 3,918,480 3,237,312 Liabilities and noncontrolling interests in related party Accounts payable and accrued expenses 5,137 1,374 Securities sold, not yet purchased 394,278 92,668 Securities sold under an agreement to repurchase 29,618 — Due to brokers 770,205 899,601 Derivative liabilities, at fair value 14,503 16,050 Interest and dividends payable 1,218 386 Total noncontrolling interests in related party (1) 113,626 35,674 Total liabilities and noncontrolling interests in related party 1,328,585 1,045,753 Total net investments managed by Third Point LLC $ 2,589,895 $ 2,191,559 (1) See Note 17 for additional information. |
Schedule of the Largest Concentration of the Company's Asset-Backed Securities | As of December 31, 2017 and 2016 , the Company’s asset-backed securities (“ABS”) holdings were as follows: 2017 2016 ($ in thousands) Reperforming loans $ 160,354 71.1 % $ 44,359 17.4 % Subprime RMBS — — % 117,152 46.0 % Market place loans 52,584 23.3 % 44,143 17.3 % Other (1) 12,561 5.6 % 49,198 19.3 % $ 225,499 100.0 % $ 254,852 100.0 % (1) Other includes: U.S. Alt-A positions, collateralized debt obligations, commercial mortgage-backed securities, non-U.S. RMBS and student loans ABS. |
Schedule of investments, categorized by the level of the fair value hierarchy | The following tables present the Company’s investments, categorized by the level of the fair value hierarchy as of December 31, 2017 and 2016 : December 31, 2017 Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Total (Level 1) (Level 2) (Level 3) Assets ($ in thousands) Equity securities $ 2,200,379 $ 20,751 $ — $ 2,221,130 Private common equity securities — — 4,794 4,794 Private preferred equity securities — — 57,126 57,126 Total equities 2,200,379 20,751 61,920 2,283,050 Asset-backed securities — 198,191 27,308 225,499 Bank debt — 14,550 — 14,550 Corporate bonds — 67,218 9,868 77,086 U.S. Treasury securities — 249,994 — 249,994 Sovereign debt — 102,569 — 102,569 Other debt securities — 4,747 713 5,460 Total debt securities — 637,269 37,889 675,158 Options 1,973 2,978 — 4,951 Rights and warrants — 168 435 603 Real estate — — 6,831 6,831 Trade claims — 7,496 — 7,496 Total other investments 1,973 10,642 7,266 19,881 Derivative assets (free standing) — 73,372 — 73,372 $ 2,202,352 $ 742,034 $ 107,075 3,051,461 Investments in funds valued at NAV 17,850 Total assets $ 3,069,311 Liabilities Equity securities $ 364,215 $ — $ — 364,215 Corporate bonds — 21,699 — 21,699 Options 2,668 5,696 — 8,364 Total securities sold, not yet purchased 366,883 27,395 — 394,278 Derivative liabilities (free standing) — 12,418 2,085 14,503 Derivative liabilities (embedded) — — 171 171 Total liabilities $ 366,883 $ 39,813 $ 2,256 $ 408,952 December 31, 2016 Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Total (Level 1) (Level 2) (Level 3) Assets ($ in thousands) Equity securities $ 1,450,966 $ 2,255 $ — $ 1,453,221 Private common equity securities — — 4,799 4,799 Private preferred equity securities — — 48,834 48,834 Total equities 1,450,966 2,255 53,633 1,506,854 Asset-backed securities — 237,224 17,628 254,852 Bank debt — 48,546 8,350 56,896 Corporate bonds — 209,025 9,255 218,280 U.S. Treasury securities — 327,016 — 327,016 Sovereign debt — 200,913 — 200,913 Total debt securities — 1,022,724 35,233 1,057,957 Options 343 681 — 1,024 Trade claims — 9,022 — 9,022 Total other investments 343 9,703 — 10,046 Derivative assets (free standing) 961 26,471 — 27,432 $ 1,452,270 $ 1,061,153 $ 88,866 2,602,289 Investments in funds valued at NAV 72,655 Total assets $ 2,674,944 Liabilities Equity securities $ 71,457 $ — $ — $ 71,457 Corporate bonds — 17,683 — 17,683 Options — 3,528 — 3,528 Total securities sold, not yet purchased 71,457 21,211 — 92,668 Derivative liabilities (free standing) 1,608 13,116 1,326 16,050 Derivative liabilities (embedded) — — 92 92 Total liabilities $ 73,065 $ 34,327 $ 1,418 $ 108,810 |
Schedule of reconciliation of the balances for all investments measured at fair value using significant unobservable inputs | The following table presents the reconciliation of all investments measured at fair value using Level 3 inputs for the years ended December 31, 2017 and 2016 : January 1, Transfers in to (out of) Level 3 Purchases Sales Realized and Unrealized Gains(Losses) (1) December 31, ($ in thousands) Assets Private common equity securities $ 4,799 $ — $ — $ — $ (5 ) $ 4,794 Private preferred equity securities 48,834 — 4,777 (2,102 ) 5,617 57,126 Asset-backed securities 17,628 25,836 72,758 (75,666 ) (13,248 ) 27,308 Bank debt 8,350 — 4 (12,009 ) 3,655 — Corporate bonds 9,255 — 1,577 (1,001 ) 37 9,868 Other debt securities — — 637 — 76 713 Rights and warrants — — — — 435 435 Real estate — — 6,770 — 61 6,831 Total assets $ 88,866 $ 25,836 $ 86,523 $ (90,778 ) $ (3,372 ) $ 107,075 Liabilities Derivative liabilities (free standing) $ (1,326 ) $ — $ — $ (44 ) $ (715 ) $ (2,085 ) Derivative liabilities (embedded) (92 ) — — — (79 ) (171 ) Total liabilities $ (1,418 ) $ — $ — $ (44 ) $ (794 ) $ (2,256 ) January 1, Transfers in to (out of) Level 3 Purchases Sales Realized and Unrealized Gains(Losses) (1) December 31, ($ in thousands) Assets Private common equity securities $ 4,357 $ — $ 60 $ — $ 382 $ 4,799 Private preferred equity securities 24,178 — 20,574 (60 ) 4,142 48,834 Asset-backed securities 2,617 17,390 5,433 (3,527 ) (4,285 ) 17,628 Bank debt 7,660 — 3,248 (928 ) (1,630 ) 8,350 Corporate bonds 3,252 — 12,651 (7,288 ) 640 9,255 Sovereign debt 21 — — (20 ) (1 ) — Total assets $ 42,085 $ 17,390 $ 41,966 $ (11,823 ) $ (752 ) $ 88,866 Liabilities Derivative liabilities (free standing) $ (1,020 ) $ — $ — $ (306 ) $ — $ (1,326 ) Derivative liabilities (embedded) (5,563 ) — 6,072 (861 ) 260 (92 ) Total liabilities $ (6,583 ) $ — $ 6,072 $ (1,167 ) $ 260 $ (1,418 ) (1) Total change in realized and unrealized gains (losses) recorded on Level 3 financial instruments is included in net investment income (loss) in the consolidated statements of income (loss) . |
Schedule of significant unobservable inputs used | The following table summarizes significant unobservable inputs used in determining the fair value of the Level 3 investments held by the Company. Level 3 investments not presented in the table below are insignificant or do not have any unobservable inputs to disclose, as they are valued primarily using dealer quotes, or at cost. December 31, 2017 Assets Fair value ($ in thousands) Valuation technique Unobservable input Range Private equity investments $ 37,507 Market approach Volatility 35.0% - 65.0% Time to exit 0.5 - 1.8 years Multiple 7.8 - 24.4x Real estate 6,831 Discounted cash flow Discount rate 9.5 % Capitalization rate 6.5% - 10.0% Other debt securities 713 Discounted cash flow Capitalization rate 10.0 % Rights and warrants 433 Discounted cash flow Discount rate 13.5 % Time to exit 5.0 years Market approach Multiple 3.8 - 4.6x December 31, 2016 Assets Fair value ($ in thousands) Valuation technique Unobservable input Range Private equity investments $ 47,608 Market approach Discount 5.0% - 25.0% Volatility 40.0% - 60.0% Time to exit 0.4 - 2.8 years Multiple 2.0 - 3.8x |
Securities purchased under an38
Securities purchased under an agreement to sell Securities purchased under an agreement to sell (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings | The following table presents the remaining contractual maturity of the repurchase agreements and securities lending transactions by class of collateral pledged as of December 31, 2017 and 2016 : December 31, 2017 Overnights and continuous Up to 30 days 30 - 90 days Greater than 90 days Total ($ in thousands) Repurchase agreements Asset-backed securities $ — $ 10,774 $ 18,844 $ — $ 29,618 December 31, 2016 Overnights and continuous Up to 30 days 30 - 90 days Greater than 90 days Total ($ in thousands) Securities lending transactions U.S. Treasury and agency securities $ 310 $ — $ — $ — $ 310 |
Due from_to brokers (Tables)
Due from/to brokers (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Due to and from Broker-Dealers and Clearing Organizations [Abstract] | |
Schedule of Due From/To Brokers | As of December 31, 2017 and 2016 , the Company’s due from/to brokers were comprised of the following: 2017 2016 ($ in thousands) Due from brokers Cash held at brokers $ 295,467 $ 240,205 Receivable from unsettled trades (1) 9,626 44,386 $ 305,093 $ 284,591 Due to brokers Borrowing from prime brokers $ 759,267 $ 855,576 Payable from unsettled trades 10,938 44,025 $ 770,205 $ 899,601 (1) Receivables relating to securities sold by the Company are recorded as receivable from unsettled trades in due from brokers in the Company’s consolidated balance sheets. During the year ended December 31, 2015, the Company’s investment manager, Third Point LLC, exercised appraisal rights relating to an underlying investment, which was bought by a private equity firm. As of December 31, 2016 , $37.6 million was included in receivable from unsettled trades in due from brokers while the Company awaited the court decision regarding the sale price. In the second quarter of 2017, the court decision resulted in the Company receiving the total value of $37.6 million as well as interest of $5.0 million for the trial period. |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of listing currency, fair value and notional amounts of derivative instruments | The following tables identify the listing currency, fair value and notional amounts of derivative instruments included in the consolidated balance sheets, categorized by primary underlying risk. Balances are presented on a gross basis. As of December 31, 2017 Listing currency (1) Fair Value Notional Amounts (2) Derivative Assets by Primary Underlying Risk ($ in thousands) Credit Credit Default Swaps - Protection Purchased USD $ 8,205 $ 50,593 Total Return Swaps - Long Contracts EGP 25,245 25,245 Equity Price Contracts for Differences - Long Contracts BRL / CHF / EUR / USD 17,298 163,868 Contracts for Differences - Short Contracts DKK / NOK / SEK / USD 4,384 31,992 Total Return Swaps - Long Contracts BRL / USD 15,936 96,388 Total Return Swaps - Short Contracts USD 1 — Interest Rates Interest Rate Swaptions JPY 539 64,950 Foreign Currency Exchange Rates Foreign Currency Forward Contracts HKD / JPY 1,764 511,937 Total Derivative Assets $ 73,372 $ 944,973 Listing currency (1) Fair Value Notional Amounts (2) Derivative Liabilities by Primary Underlying Risk ($ in thousands) Credit Credit Default Swaps - Protection Purchased USD $ 1,250 $ 19,418 Credit Default Swaps - Protection Sold USD 2,085 2,351 Equity Price Contracts for Differences - Long Contracts BRL / EUR / USD 2,200 93,200 Contracts for Differences - Short Contracts DKK / EUR / USD 776 8,483 Total Return Swaps - Long Contracts BRL / USD 73 50,858 Total Return Swaps - Short Contracts USD 1,885 52,657 Interest Rates Interest Rate Swaptions JPY 70 64,482 Foreign Currency Exchange Rates Foreign Currency Forward Contracts BRL / CHF / CNH / EUR / HKD / SAR 6,164 573,498 Total Derivative Liabilities (free standing) $ 14,503 $ 864,947 Embedded derivative liabilities in reinsurance contracts (3) USD $ 171 $ 20,000 Total Derivative Liabilities (embedded) $ 171 $ 20,000 (1) BRL = Brazilian Real, CHF = Swiss Franc, CNH = Chinese Yuan, DKK = Danish Krone, EGP = Egyptian Pound, EUR = Euro, HKD = Hong Kong Dollar, JPY = Japanese Yen, NOK = Norwegian Krone, SAR = Saudi Arabian Riyal, SEK = Swedish Krona, USD = US Dollar. (2) The absolute notional exposure represents the Company’s derivative activity as of December 31, 2017 , which is representative of the volume of derivatives held during the period. (3) The fair value of embedded derivatives in reinsurance contracts is included in reinsurance balances payable in the consolidated balance sheets. As of December 31, 2016 Listing currency (1) Fair Value Notional Amounts (2) Derivative Assets by Primary Underlying Risk ($ in thousands) Credit Credit Default Swaps - Protection Purchased EUR / USD $ 10,905 $ 84,327 Equity Price Contracts for Differences - Long Contracts EUR / GBP 1,765 36,879 Total Return Swaps - Long Contracts BRL / USD 617 19,140 Total Return Swaps - Short Contracts JPY 183 8,696 Interest Rates Interest Rate Swaps GBP / USD 2,462 195,571 Interest Rate Swaptions JPY / USD 5,354 424,816 Sovereign Debt Futures - Short Contracts USD 961 107,591 Foreign Currency Exchange Rates Foreign Currency Forward Contracts CAD / CNH / GBP / MXN 653 47,754 Foreign Currency Options - Purchased CNH / EUR / HKD / JPY / SAR 4,532 501,465 Total Derivative Assets $ 27,432 $ 1,426,239 Listing currency (1) Fair Value Notional Amounts (2) Derivative Liabilities by Primary Underlying Risk ($ in thousands) Credit Credit Default Swaps - Protection Purchased USD $ 3,286 $ 43,184 Credit Default Swaps - Protection Sold USD 1,952 3,943 Equity Price Contracts for Differences - Long Contracts GBP — 67 Contracts for Differences - Short Contracts EUR / ZAR 1,106 11,424 Total Return Swaps - Long Contracts USD 1,675 26,800 Total Return Swaps - Short Contracts JPY / USD 1,302 10,095 Interest Rates Interest Rate Swaps GBP 722 59,115 Interest Rate Swaptions JPY / USD 1,056 417,052 Sovereign Debt Futures - Short Contracts EUR / GBP 1,608 159,923 Foreign Currency Exchange Rates Foreign Currency Forward Contracts EUR / JPY / SAR 2,009 214,854 Foreign Currency Options - Sold CNH / JPY 1,334 363,840 Total Derivative Liabilities (free standing) $ 16,050 $ 1,310,297 Embedded derivative liabilities in reinsurance contracts (3) USD $ 92 $ 20,000 Total Derivative Liabilities (embedded) $ 92 $ 20,000 (1) BRL = Brazilian Real, CAD = Canadian Dollar, CNH = Chinese Yuan, EUR = Euro, GBP = British Pound, HKD = Hong Kong Dollar, JPY = Japanese Yen, MXN = Mexican Peso, SAR = Saudi Arabian Riyal, USD = US Dollar, ZAR = South African Rand. (2) The absolute notional exposure represents the Company’s derivative activity as of December 31, 2016 , which is representative of the volume of derivatives held during the period. (3) The fair value of embedded derivatives in reinsurance contracts is included in reinsurance balances payable in the consolidated balance sheets. |
Schedule of realized and unrealized gains (losses) relating to trading activities | The following table sets forth, by major risk type, the Company’s realized and unrealized gains (losses) relating to derivatives for the years ended December 31, 2017 , 2016 and 2015 . Realized and unrealized gains (losses) related to free standing derivatives are included in net investment income (loss) in the consolidated statements of income (loss) . Realized and unrealized gains (losses) related to embedded derivatives are included in other expenses in the consolidated statements of income (loss) . 2017 2016 2015 Free standing Derivatives - Primary Underlying Risk Realized Gain (Loss) Unrealized Gain (Loss)* Realized Gain (Loss) Unrealized Gain (Loss)* Realized Gain (Loss) Unrealized Gain (Loss)* Commodity Price ($ in thousands) Commodities Futures - Long Contracts $ — $ — $ — $ — $ (1,515 ) $ — Commodity Future Options - Purchased — — 651 — (286 ) 285 Commodity Future Options - Sold — — — — 272 (269 ) Credit Credit Default Swaps - Protection Purchased (3,462 ) (978 ) 4,311 (6,841 ) 1,282 4,839 Credit Default Swaps - Protection Sold 605 (720 ) (4,009 ) 4,149 2,071 (2,098 ) Total Return Swaps - Long Contracts 72 2,000 — — — — Equity Price Contracts for Differences - Long Contracts 58,047 13,334 (4,123 ) 2,245 (6,101 ) 660 Contracts for Differences - Short Contracts 2,608 4,715 (253 ) (3,579 ) 8,459 2,418 Total Return Swaps - Long Contracts 16,863 16,923 (6,835 ) 1,957 1,410 (2,469 ) Total Return Swaps - Short Contracts (15,892 ) (765 ) (4,812 ) (1,198 ) (1,395 ) 45 Index Index Futures - Long Contracts — — — — 1,144 — Interest Rates Bond Futures - Short Contracts — — — — (2,584 ) — Commodity Futures - Short Contracts — — (281 ) (52 ) (580 ) 194 Fixed Income Swap - Short Contracts — — (94 ) — — — Interest Rate Swaps (3,104 ) (1,740 ) 205 1,740 119 — Interest Rate Swaptions (354 ) (2,056 ) (340 ) 869 (771 ) (39 ) Sovereign Debt Futures - Short Contracts (7,798 ) 647 10,519 (647 ) — — Treasury Futures - Short Contracts — — — — (2,734 ) 280 Foreign Currency Exchange Rates Foreign Currency Forward Contracts (10,470 ) (3,048 ) (2,747 ) (2,261 ) 21,429 (3,334 ) Foreign Currency Options - Purchased (6,716 ) 1,164 (2,338 ) (2,229 ) 318 (1,144 ) Foreign Currency Options - Sold 2,183 (80 ) 617 (103 ) 1,214 316 Reinsurance contract derivatives — — — — 30 — $ 32,582 $ 29,396 $ (9,529 ) $ (5,950 ) $ 21,782 $ (316 ) Embedded Derivatives Embedded derivatives in reinsurance contracts $ — $ (79 ) $ — $ 260 $ (5 ) $ 362 Embedded derivatives in deposit contracts — — — — 2,104 — Total Derivative Liabilities (embedded) $ — $ (79 ) $ — $ 260 $ 2,099 $ 362 * Unrealized gain (loss) relates to derivatives still held at reporting date. |
Schedule of gross and net amounts of derivative instruments that are subject to enforceable master netting arrangements or similar agreements | As of December 31, 2017 and 2016 , the gross and net amounts of derivative instruments and repurchase and reverse repurchase agreements that are subject to enforceable master netting arrangements or similar agreements were as follows: Gross Amounts not Offset in the Consolidated Balance Sheet December 31, 2017 Derivative Contracts Gross Amount (1) Financial Instruments Cash Collateral Received Net Amount Financial assets, derivative assets and collateral received ($ in thousands) Counterparty 1 $ 167 $ 167 $ — $ — Counterparty 2 1,343 706 — 637 Counterparty 3 37,313 2,705 — 34,608 Counterparty 4 2,683 2,683 — — Counterparty 5 14,798 6,647 — 8,151 Counterparty 6 5,338 9 2,122 3,207 Counterparty 7 1,377 — 1,100 277 Counterparty 8 12,628 2,963 — 9,665 Counterparty 9 703 703 — — $ 76,350 $ 16,583 $ 3,222 $ 56,545 Gross Amounts not Offset in the Consolidated Balance Sheet December 31, 2017 Derivative Contracts Gross Amount (2) Financial Instruments Cash Collateral Pledged Net Amount Financial liabilities, derivative liabilities and collateral pledged ($ in thousands) Counterparty 1 $ 1,340 $ 167 $ 1,173 $ — Counterparty 2 706 706 — — Counterparty 3 2,705 2,705 — — Counterparty 4 3,812 2,683 1,129 — Counterparty 5 6,647 6,647 — — Counterparty 6 9 9 — — Counterparty 8 2,963 2,963 — — Counterparty 9 1,181 703 478 — Counterparty 15 836 — 732 104 $ 20,199 $ 16,583 $ 3,512 $ 104 Securities sold under an agreement to repurchase Counterparty 4 $ 29,618 $ 29,618 $ — $ — $ 29,618 $ 29,618 $ — $ — (1) The gross amounts of assets presented in the consolidated balance sheets presented above includes the fair value of derivative contract assets as well as gross OTC option contract assets of $3.0 million included in other investments in the consolidated balance sheets. (2) The gross amounts of liabilities presented in the consolidated balance sheets presented above includes the fair value of derivative contract liabilities as well as gross OTC option contract liabilities of $5.7 million included in securities sold, not yet purchased in the consolidated balance sheets. Gross Amounts not Offset in the Consolidated Balance Sheet December 31, 2016 Derivative Contracts Gross Amount (1) Financial Instruments Cash Collateral Received Net Amount Financial assets, derivative assets and collateral received ($ in thousands) Counterparty 1 $ 535 $ 535 $ — $ — Counterparty 2 3,147 607 — 2,540 Counterparty 3 8,652 4,760 — 3,892 Counterparty 4 1,639 1,639 — — Counterparty 5 7,336 3,027 — 4,309 Counterparty 6 6,262 2,599 3,383 280 Counterparty 7 227 — 197 30 Counterparty 8 277 277 — — Counterparty 9 37 37 — — $ 28,112 $ 13,481 $ 3,580 $ 11,051 Gross Amounts not Offset in the Consolidated Balance Sheet December 31, 2016 Derivative Contracts Gross Amount (2) Financial Instruments Cash Collateral Pledged Net Amount Financial liabilities, derivative liabilities and collateral pledged ($ in thousands) Counterparty 1 $ 2,959 $ 535 $ 2,424 $ — Counterparty 2 607 607 — — Counterparty 3 4,760 4,760 — — Counterparty 4 3,827 1,639 2,188 — Counterparty 5 3,027 3,027 — — Counterparty 6 2,599 2,599 — — Counterparty 8 977 277 — 700 Counterparty 9 822 37 785 — $ 19,578 $ 13,481 $ 5,397 $ 700 Securities lending transactions Counterparty 3 $ 302 $ 302 $ — $ — $ 302 $ 302 $ — $ — (1) The gross amounts of assets presented in the consolidated balance sheets presented above includes the fair value of derivative contract assets as well as gross OTC option contract assets of $0.7 million included in other investments in the consolidated balance sheets. (2) The gross amounts of liabilities presented in the consolidated balance sheets presented above includes the fair value of derivative contract liabilities as well as gross OTC option contract liabilities of $3.5 million included in securities sold, not yet purchased in the consolidated balance sheets. |
Loss and loss adjustment expe41
Loss and loss adjustment expense reserves (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Loss and Loss Adjustment Expense Reserves [Abstract] | |
Schedule of loss and loss adjustment expense reserves | As of December 31, 2017 and 2016 , loss and loss adjustment expense reserves in the consolidated balance sheets was comprised of the following: 2017 2016 ($ in thousands) Case loss and loss adjustment expense reserves $ 115,622 $ 80,370 Incurred but not reported loss and loss adjustment expense reserves 604,260 522,818 Deferred gains on retroactive reinsurance contracts 688 1,941 $ 720,570 $ 605,129 |
Schedule of activity in the reserve for losses and loss adjustment expenses | The following table represents the activity in the loss and loss adjustment expense reserves for the years ended December 31, 2017 , 2016 and 2015 : 2017 2016 2015 ($ in thousands) Gross reserves for loss and loss adjustment expenses, beginning of year $ 605,129 $ 466,047 $ 277,362 Less: loss and loss adjustment expenses recoverable, beginning of year (1 ) (125 ) (814 ) Net reserves for loss and loss adjustment expenses, beginning of year 605,128 465,922 276,548 Increase (decrease) in net loss and loss adjustment expenses incurred in respect of losses occurring in: Current year 422,801 372,002 418,521 Prior years (51,260 ) 24,976 (2,474 ) Amortization of deferred gains on retroactive reinsurance contracts (1,483 ) (1,046 ) (856 ) Total incurred loss and loss adjustment expenses 370,058 395,932 415,191 Net loss and loss adjustment expenses paid in respect of losses occurring in: Current year (110,799 ) (105,921 ) (100,403 ) Prior years (162,447 ) (133,241 ) (121,665 ) Total net paid losses (273,246 ) (239,162 ) (222,068 ) Foreign currency translation 17,517 (17,564 ) (3,749 ) Net reserves for loss and loss adjustment expenses, end of year 719,457 605,128 465,922 Plus: loss and loss adjustment expenses recoverable, end of year 1,113 1 125 Gross reserves for loss and loss adjustment expenses, end of year $ 720,570 $ 605,129 $ 466,047 |
Schedule of total loss and loss adjustment expenses incurred, net and net loss and loss adjustment expenses paid by accident years | The following tables provide a breakdown of the Company’s loss and loss adjustment expenses incurred, net and net loss and loss adjustment expenses paid by accident year by line of business for the Company’s prospective reinsurance contracts for the years ended December 31, 2017 and 2016. The information related to loss and loss adjustment expenses incurred, net and net loss and loss adjustment expenses paid for the years ended December 31, 2012 through 2016 is presented as supplementary information and is unaudited: Property Loss and loss adjustment expenses incurred, net Accident year 2012 2013 2014 2015 2016 2017 IBNR loss and LAE reserves, net ($ in thousands) <----------------------------------------- Unaudited -----------------------------------------> 2012 $ 10,917 $ 8,672 $ 9,375 $ 9,353 $ 9,416 $ 9,472 $ 31 2013 — 27,765 24,980 25,766 25,882 25,785 101 2014 — — 40,256 40,920 41,336 44,627 640 2015 — — — 50,330 52,533 54,635 3,706 2016 — — — — 45,415 43,038 7,579 2017 — — — — — 41,237 12,153 Total $ 218,794 $ 24,210 Cumulative net losses and loss adjustment expenses paid Accident year 2012 2013 2014 2015 2016 2017 ($ in thousands) <----------------------------------------- Unaudited -----------------------------------------> 2012 $ 4,656 $ 8,381 $ 9,075 $ 9,186 $ 9,352 $ 9,400 2013 — 14,635 22,229 24,023 25,167 25,406 2014 — — 19,420 34,381 38,448 42,775 2015 — — — 22,706 43,382 48,360 2016 — — — — 21,593 31,871 2017 — — — — — 24,713 Total $ 182,525 Property - net reserves for loss and loss adjustment expenses, end of year $ 36,269 Workers’ Compensation Loss and loss adjustment expenses incurred, net Accident year 2012 2013 2014 2015 2016 2017 IBNR loss and LAE reserves, net ($ in thousands) <----------------------------------------- Unaudited -----------------------------------------> 2012 $ 4,037 $ 4,534 $ 5,066 $ 5,596 $ 5,715 $ 5,720 $ 78 2013 — 27,449 28,616 33,365 33,449 33,252 2,107 2014 — — 40,247 46,568 47,200 43,470 6,698 2015 — — — 35,749 37,138 34,800 10,077 2016 — — — — 40,433 39,205 15,461 2017 — — — — — 41,075 27,972 Total $ 197,522 $ 62,393 Cumulative net losses and loss adjustment expenses paid Accident year 2012 2013 2014 2015 2016 2017 ($ in thousands) <----------------------------------------- Unaudited -----------------------------------------> 2012 $ 93 $ 624 $ 3,017 $ 4,280 $ 4,969 $ 4,796 2013 — 2,587 9,142 16,840 22,826 26,956 2014 — — 4,073 15,947 24,280 29,573 2015 — — — 2,669 10,755 17,001 2016 — — — — 3,985 13,236 2017 — — — — — 4,586 Total $ 96,148 Workers’ Compensation - net reserves for loss and loss adjustment expenses, end of year $ 101,374 Auto Loss and loss adjustment expenses incurred, net Accident year 2012 2013 2014 2015 2016 2017 IBNR loss and LAE reserves, net ($ in thousands) <----------------------------------------- Unaudited -----------------------------------------> 2012 $ 13,247 $ 12,264 $ 11,777 $ 11,534 $ 11,433 $ 11,333 $ 10 2013 — 20,830 19,990 19,472 19,338 19,482 61 2014 — — 104,896 103,473 103,568 103,661 347 2015 — — — 82,677 88,705 89,550 1,109 2016 — — — — 77,785 85,903 3,226 2017 — — — — — 48,758 16,932 Total $ 358,687 $ 21,685 Cumulative net losses and loss adjustment expenses paid Accident year 2012 2013 2014 2015 2016 2017 ($ in thousands) <----------------------------------------- Unaudited -----------------------------------------> 2012 $ 5,619 $ 9,989 $ 11,387 $ 11,450 $ 11,382 $ 11,318 2013 — 8,673 17,244 18,686 19,066 19,363 2014 — — 45,766 97,651 101,626 102,868 2015 — — — 42,451 80,765 86,100 2016 — — — — 38,059 77,511 2017 — — — — — 23,546 Total $ 320,706 Auto - net reserves for loss and loss adjustment expenses, end of year $ 37,981 Other Casualty Loss and loss adjustment expenses incurred, net Accident year 2012 2013 2014 2015 2016 2017 IBNR loss and LAE reserves, net ($ in thousands) <----------------------------------------- Unaudited -----------------------------------------> 2012 $ — $ — $ — $ — $ — $ — $ — 2013 — — — — — — — 2014 — — 5,480 7,519 7,316 4,903 1,644 2015 — — — 45,558 48,315 33,396 16,381 2016 — — — — 63,082 52,118 36,975 2017 — — — — — 70,183 66,396 Total $ 160,600 $ 121,396 Cumulative net losses and loss adjustment expenses paid Accident year 2012 2013 2014 2015 2016 2017 ($ in thousands) <----------------------------------------- Unaudited -----------------------------------------> 2012 $ — $ — $ — $ — $ — $ — 2013 — — — — — — 2014 — — 16 340 1,390 2,226 2015 — — — 310 3,612 9,053 2016 — — — — 621 6,165 2017 — — — — — 1,418 Total $ 18,862 Other Casualty - net reserves for loss and loss adjustment expenses, end of year $ 141,738 Credit & Financial Lines Loss and loss adjustment expenses incurred, net Accident year 2012 2013 2014 2015 2016 2017 IBNR loss and LAE reserves, net ($ in thousands) <----------------------------------------- Unaudited -----------------------------------------> 2012 $ — $ — $ — $ — $ — $ — $ — 2013 — 364 408 113 107 99 22 2014 — — 5,846 2,653 2,427 2,204 859 2015 — — — 5,245 5,044 4,758 1,834 2016 — — — — 10,743 10,729 6,478 2017 — — — — — 13,768 11,960 Total $ 31,558 $ 21,153 Cumulative net losses and loss adjustment expenses paid Accident year 2012 2013 2014 2015 2016 2017 ($ in thousands) <----------------------------------------- Unaudited -----------------------------------------> 2012 $ — $ — $ — $ — $ — $ — 2013 — — 11 66 74 78 2014 — — 42 784 1,038 1,318 2015 — — — 402 1,128 2,045 2016 — — — — 1,013 2,326 2017 — — — — — 1,100 Total $ 6,867 Credit & Financial Lines - net reserves for loss and loss adjustment expenses, end of year $ 24,691 Multi-line Loss and loss adjustment expenses incurred, net Accident year 2012 2013 2014 2015 2016 2017 IBNR loss and LAE reserves, net ($ in thousands) <----------------------------------------- Unaudited -----------------------------------------> 2012 $ — $ — $ — $ — $ — $ — $ — 2013 — 23,282 4,272 4,564 4,564 4,564 — 2014 — — 41,188 34,570 37,738 35,489 16,338 2015 — — — 86,605 100,023 107,837 30,203 2016 — — — — 132,050 121,723 37,665 2017 — — — — — 101,037 39,451 Total $ 370,650 $ 123,657 Cumulative net losses and loss adjustment expenses paid Accident year 2012 2013 2014 2015 2016 2017 ($ in thousands) <----------------------------------------- Unaudited -----------------------------------------> 2012 $ — $ — $ — $ — $ — $ — 2013 — — 1,243 4,563 4,563 4,563 2014 — — 1,245 14,289 19,476 18,969 2015 — — — 30,914 58,792 74,646 2016 — — — — 39,413 76,791 2017 — — — — — 54,216 Total $ 229,185 Multi-line - net reserves for loss and loss adjustment expenses, end of year $ 141,465 Other Specialty Loss and loss adjustment expenses incurred, net Accident year 2012 2013 2014 2015 2016 2017 IBNR loss and LAE reserves, net ($ in thousands) <----------------------------------------- Unaudited -----------------------------------------> 2012 $ 52,105 $ 49,942 $ 50,055 $ 50,055 $ 50,065 $ 50,104 $ 1 2013 — 2,308 24,274 23,450 23,138 23,135 1 2014 — — — — — — — 2015 — — — — — — — 2016 — — — — — — — 2017 — — — — — 4,033 4,029 Total $ 77,272 $ 4,031 Cumulative net losses and loss adjustment expenses paid Accident year 2012 2013 2014 2015 2016 2017 ($ in thousands) <----------------------------------------- Unaudited -----------------------------------------> 2012 $ 2,666 $ 48,455 $ 50,024 $ 50,025 $ 50,067 $ 50,103 2013 — — 22,232 23,138 23,134 23,135 2014 — — — — — — 2015 — — — — — — 2016 — — — — — — 2017 — — — — — 4 Total $ 73,242 Other Specialty - net reserves for loss and loss adjustment expenses, end of year $ 4,030 Property and Casualty Reinsurance - Retroactive Reinsurance Contracts The Company writes reinsurance contracts that provide limited protection against adverse development on loss originating from multiple accident years. The Company has other retroactive exposure within contracts that provide primarily prospective coverage. These contracts are included in the prospective reinsurance tables above. These contracts are typically part of prospective reinsurance contracts with a small portion of retroactive exposure resulting from the delay between the dates when the relevant contract was bound and the dates on which each incepted. The information below includes loss and loss adjustment expenses incurred, net and loss and loss adjustment expenses paid, net, by accident year for the Company's retroactive reinsurance contracts presented by year of inception of the retroactive reinsurance contracts. The Company's estimate for loss and loss adjustment expenses incurred, net, at inception of all retroactive reinsurance contracts entered into to date was the same when the contract incepted and at the relevant year end position. As a result, there was no development in the year of inception for any of the Company's retroactive reinsurance contracts written to date. In addition, there were no loss and loss adjustment expenses paid, net, at inception of the Company's retroactive reinsurance contracts. The information related to loss and loss adjustment expenses incurred, net and net loss and loss adjustment expenses paid for the years ended December 31, 2012 through 2016 is presented as supplementary information and is unaudited. Contracts incepting in the year ended December 31, 2012 The Company did not enter into any retroactive reinsurance contracts during the year ended December 31, 2012. Contracts incepting in the year ended December 31, 2013 Loss and loss adjustment expenses incurred, net Accident year 2013 2014 2015 2016 2017 IBNR loss and LAE reserves, net ($ in thousands) <------------------------------ Unaudited ------------------------------> 2008 $ — $ — $ — $ — $ — $ — 2009 — — — — — — 2010 914 704 704 704 704 — 2011 5,419 4,173 4,173 4,173 4,173 — 2012 10,197 7,853 7,853 7,853 7,853 — 2013 4,908 3,779 3,779 3,779 3,779 — 2014 — — — — — — 2015 — — — — — — 2016 — — — — — — 2017 — — — — — — Total $ 16,509 $ — Cumulative net loss and loss adjustment expenses paid Accident year 2013 2014 2015 2016 2017 ($ in thousands) <------------------------------ Unaudited ------------------------------> 2008 $ — $ — $ — $ — $ — 2009 — — — — — 2010 — 279 704 704 704 2011 — 1,654 4,173 4,173 4,173 2012 — 3,113 7,853 7,853 7,853 2013 — 1,498 3,779 3,779 3,779 2014 — — — — — 2015 — — — — — 2016 — — — — — 2017 — — — — — Total $ 16,509 Net reserves for loss and loss adjustment expenses from 2008 to 2017 — Net reserves for loss and loss adjustment expenses prior to 2008 12,402 Contracts incepting in the year ended December 31, 2013 - net reserves for loss and loss adjustment expenses, end of year $ 12,402 Contracts incepting in the year ended December 31, 2014 Loss and loss adjustment expenses incurred, net Accident year 2014 2015 2016 2017 IBNR loss and LAE reserves, net ($ in thousands) <-------------------- Unaudited --------------------> 2008 $ 281 $ — $ — $ — $ — 2009 382 — — — — 2010 444 — — — — 2011 4,184 3,411 3,025 3,231 3,231 2012 12,002 10,658 9,451 10,094 10,094 2013 18,640 16,715 14,822 15,831 15,831 2014 10,548 9,469 8,396 8,968 8,968 2015 — — — — — 2016 — — — — — 2017 — — — — — Total $ 38,124 $ 38,124 Cumulative net loss and loss adjustment expenses paid Accident year 2014 2015 2016 2017 ($ in thousands) <-------------------- Unaudited --------------------> 2008 $ — $ — $ — $ — 2009 — — — — 2010 — — — — 2011 — — — — 2012 — — — — 2013 — — — — 2014 — — — — 2015 — — — — 2016 — — — — 2017 — — — — Total $ — Net reserves for loss and loss adjustment expenses from 2008 to 2017 38,124 Net reserves for loss and loss adjustment expenses prior to 2008 — Contracts incepting in the year ended December 31, 2014 - net reserves for loss and loss adjustment expenses, end of year $ 38,124 Contracts incepting in the year ended December 31, 2015 Loss and loss adjustment expenses incurred, net Accident year 2015 2016 2017 IBNR loss and LAE reserves, net ($ in thousands) <--------- Unaudited ---------> 2008 $ 2,010 $ 2,010 $ 1,385 $ 1,385 2009 2,510 2,510 1,729 1,729 2010 24,750 24,750 19,100 19,100 2011 21,238 21,238 16,350 16,350 2012 15,917 15,917 12,223 12,223 2013 13,616 13,616 10,400 10,400 2014 15,802 15,802 12,095 12,095 2015 2,596 2,596 1,788 1,788 2016 — — — — 2017 — — — — Total $ 75,070 $ 75,070 Cumulative net loss and loss adjustment expenses paid Accident year 2015 2016 2017 ($ in thousands) <--------- Unaudited ---------> 2008 $ — $ — $ — 2009 — — — 2010 — — — 2011 — — — 2012 — — — 2013 — — — 2014 — — — 2015 — — — 2016 — — — 2017 — — — Total $ — Net reserves for loss and loss adjustment expenses from 2008 to 2017 75,070 Net reserves for loss and loss adjustment expenses prior to 2008 328 Contracts incepting in the year ended December 31, 2015 - net reserves for loss and loss adjustment expenses, end of year $ 75,398 Contracts incepting in the year ended December 31, 2016 The Company did not enter into any retroactive reinsurance contracts during the year ended December 31, 2016. Contracts incepting in the year ended December 31, 2017 Loss and loss adjustment expenses incurred, net Accident year 2017 IBNR loss and LAE reserves, net ($ in thousands) 2008 $ 183 $ 183 2009 317 317 2010 445 445 2011 1,678 1,678 2012 2,227 2,227 2013 3,425 3,425 2014 9,788 9,788 2015 12,865 12,865 2016 24,375 24,375 2017 49,994 49,994 Total $ 105,297 $ 105,297 Cumulative net loss and loss adjustment expenses paid Accident year 2017 ($ in thousands) 2008 $ — 2009 — 2010 — 2011 — 2012 — 2013 — 2014 — 2015 — 2016 — 2017 — Total $ — Net reserves for loss and loss adjustment expenses from 2008 to 2017 105,297 Net reserves for loss and loss adjustment expenses prior to 2008 — Contracts incepting in the year ended December 31, 2017 - net reserves for loss and loss adjustment expenses, end of year $ 105,297 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Table Text Block] | The following table provides a reconciliation of the Company's loss and loss expense reserves as of December 31, 2017 : 2017 ($ in thousands) Prospective reinsurance contracts Property $ 36,269 Workers’ Compensation 101,374 Auto 37,981 Other Casualty 141,738 Credit & Financial Lines 24,691 Multi-line 141,465 Other Specialty 4,030 Retroactive reinsurance contracts Contracts incepting in the year ended December 31, 2012 — Contracts incepting in the year ended December 31, 2013 12,402 Contracts incepting in the year ended December 31, 2014 38,124 Contracts incepting in the year ended December 31, 2015 75,398 Contracts incepting in the year ended December 31, 2016 — Contracts incepting in the year ended December 31, 2017 105,297 Net reserves for loss and loss adjustment expenses, end of year 718,769 Loss and loss adjustment expenses recoverable Property 1,113 Deferred gains on retroactive reinsurance contracts 688 Gross reserves for loss and loss adjustment expenses, end of year $ 720,570 |
Schedule of percentage annual payout on losses | The following table is presented as supplementary information and presents the Company’s historical average annual percentage payout of loss and loss adjustment expenses incurred, net by age, as of December 31, 2017 : Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 (Unaudited) Prospective reinsurance contracts Property 50.2 % 32.8 % 8.1 % 5.1 % 1.3 % 0.5 % Workers’ Compensation 8.0 % 20.6 % 25.5 % 17.4 % 12.2 % (3.0 )% Auto 46.4 % 44.3 % 7.4 % 1.2 % 0.5 % (0.6 )% Other Casualty 1.1 % 9.0 % 18.9 % 17.0 % n/a n/a Credit & Financial Lines 5.6 % 18.0 % 28.8 % 10.6 % 3.9 % n/a Multi-line 23.6 % 30.1 % 34.0 % (0.7 )% — % n/a Other Specialty 1.8 % 93.7 % 3.5 % — % — % 0.1 % Retroactive reinsurance contracts Contracts incepting in the year ended December 31, 2012 n/a n/a n/a n/a n/a n/a Contracts incepting in the year ended December 31, 2013 4.3 % 23.5 % 31.2 % 4.6 % 3.4 % n/a Contracts incepting in the year ended December 31, 2014 — % — % — % — % n/a n/a Contracts incepting in the year ended December 31, 2015 — % — % — % n/a n/a n/a Contracts incepting in the year ended December 31, 2016 n/a n/a n/a n/a n/a n/a Contracts incepting in the year ended December 31, 2017 — % n/a n/a n/a n/a n/a |
Management, performance and f42
Management, performance and founders fees (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Management, Performance and Founders Fees [Abstract] | |
Schedule of investment fee expenses | For the years ended December 31, 2017 , 2016 and 2015 , management and performance fees to related parties are as follows: 2017 2016 2015 ($ in thousands) Management fees - Third Point LLC $ 36,733 $ 7,110 $ 6,362 Management fees - Founders (1) — 35,321 36,053 Performance fees - Third Point Advisors LLC (before loss carryforward) 93,978 17,276 7,061 Performance fees - loss carryforward — — (6,199 ) $ 130,711 $ 59,707 $ 43,277 (1) KEP TP Bermuda Ltd., KIA TP Bermuda Ltd., Pine Brook LVR, L.P., P RE Opportunities Ltd. and Dowling Capital Partners I, L.P., collectively the “Founders”, received a share of the management fees in proportion to their initial investments in Third Point Re until December 22, 2016. |
Deposit contracts (Tables)
Deposit contracts (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deposit Contracts, Liabilities [Abstract] | |
Schedule of deposit contracts | The following table represents activity in the deposit contacts for the years ended December 31, 2017 , 2016 and 2015 : 2017 2016 2015 ($ in thousands) Balance, beginning of year $ 104,905 $ 83,955 $ 145,430 Consideration received 22,658 22,463 21,246 Consideration receivable 2,080 — — Net investment expense (income) allocation 2,800 (164 ) 2,207 Payments (3,545 ) (915 ) (84,928 ) Foreign currency translation 235 (434 ) — Balance, end of year $ 129,133 $ 104,905 $ 83,955 |
Senior Notes payable and lett44
Senior Notes payable and letter of credit facilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Line of Credit Facilities | As of December 31, 2017 , the Company had entered into the following letter of credit facilities: Facility (1) Utilized Collateral December 31, 2017 ($ in thousands) Citibank 300,000 163,262 163,262 Lloyds Bank 125,000 87,225 87,225 $ 425,000 $ 250,487 $ 250,487 (1) During the year ended December 31, 2017, the BNP Paribas facility of $50.0 million with Third Point Re USA and the J.P. Morgan facility of and $50.0 million with Third Point Re BDA were not renewed. |
Net investment income Net inves
Net investment income Net investment income (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Net Investment Income [Line Items] | |
Schedule of Net Investment Income [Table Text Block] | Net investment income (loss) for the years ended December 31, 2017 , 2016 and 2015 consisted of the following: 2017 2016 2015 Net investment income (loss) by type ($ in thousands) Net realized gains on investments and investment derivatives $ 225,016 $ 33,505 $ 14,398 Net unrealized gains (losses) on investments and investment derivatives 255,194 70,290 (34,181 ) Net gains (losses) on foreign currencies 6,441 (2,557 ) 933 Dividend and interest income 65,896 77,160 45,103 Dividends paid on securities sold, not yet purchased (5,724 ) (1,977 ) (1,279 ) Other expenses (24,073 ) (19,422 ) (11,305 ) Net gain (loss) on investment in Kiskadee Fund (86 ) 1,533 1,465 Net investment income related to Catastrophe Reinsurer and Catastrophe Fund — — 69 Net investment income before management and performance fees to related parties 522,664 158,532 15,203 Management and performance fees to related parties (130,711 ) (59,707 ) (43,277 ) Net investment income (loss) $ 391,953 $ 98,825 $ (28,074 ) The following table provides an additional breakdown of our net investment income (loss) by asset and liability type for the years ended December 31, 2017 , 2016 and 2015 consisted of the following: 2017 2016 2015 Net investment income (loss) by asset type ($ in thousands) Equity securities $ 467,527 $ 78,955 $ (37,689 ) Private common equity securities (6 ) 333 (3,511 ) Private preferred equity securities 5,764 4,146 5,187 Total equities 473,285 83,434 (36,013 ) Asset-backed securities 12,571 1,166 61,730 Bank debt 8,868 6,887 184 Corporate bonds 6,462 115,568 (45,590 ) Municipal bonds — — (139 ) U.S. Treasury securities 2,366 2,605 (1,876 ) Sovereign debt 21,553 8,267 21,142 Other debt securities 2,546 — — Total debt securities 54,366 134,493 35,451 Options (33,510 ) (28,426 ) (29,062 ) Rights and warrants 169 (370 ) (1,679 ) Real estate 502 — — Trade claims (89 ) 116 249 Total other investments (32,928 ) (28,680 ) (30,492 ) Net investment income in funds valued at NAV 10,309 1,330 (5,424 ) Total net investment income from invested assets 505,032 190,577 (36,478 ) Net investment income (loss) by liability type Equity securities (35,643 ) (11,725 ) (4,098 ) Sovereign debt — (382 ) 1,967 Corporate bonds (1,725 ) (4,195 ) 9,806 Options (2,907 ) 11,272 25,411 Total net investment income (loss) from securities sold, not yet purchased (40,275 ) (5,030 ) 33,086 Other investment income (losses) and other expenses not presented above Other investment expenses (5,103 ) (6,068 ) (5,486 ) Net investment income (loss) on derivative contracts 61,978 (15,479 ) 21,437 Net investment income (loss) on cash, including foreign exchange gain (loss) (1,454 ) (10,173 ) 120 Net investment losses on securities purchased under an agreement to sell and securities sold under and agreement to repurchase (87 ) (1,970 ) (2,373 ) Withholding taxes reclassified to income tax expense 2,573 6,675 4,828 Net investment income related to Catastrophe Reinsurer and Catastrophe Fund — — 69 Total other investment income (losses) and other expenses 57,907 (27,015 ) 18,595 Net investment income before management and performance fees to related parties 522,664 158,532 15,203 Management and performance fees to related parties (130,711 ) (59,707 ) (43,277 ) Net investment income (loss) $ 391,953 $ 98,825 $ (28,074 ) |
Other expenses (Tables)
Other expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Schedule of other expenses | Other expenses for the years ended December 31, 2017 , 2016 and 2015 consisted of the following: 2017 2016 2015 ($ in thousands) Investment expense (income) and change in fair value of embedded derivatives in deposit liabilities $ 2,800 $ (164 ) $ 2,207 Investment expense and change in fair value of embedded derivatives in reinsurance contracts 9,874 8,551 6,407 $ 12,674 $ 8,387 $ 8,614 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense (Benefit), Continuing Operations | The following table presents the Company’s current and deferred incomes taxes for the years ended December 31, 2017 , 2016 and 2015 : 2017 2016 2015 ($ in thousands) Current tax expense $ 2,824 $ 6,825 $ 3,728 Deferred tax expense (benefit) 9,152 (1,232 ) (6,633 ) Income tax expense (benefit) $ 11,976 $ 5,593 $ (2,905 ) For the years ended December 31, 2017 , 2016 and 2015 , the Company recorded income tax expense (benefit), as follows: 2017 2016 2015 ($ in thousands) Income tax expense (benefit) related to U.S. and U.K. subsidiaries $ 9,248 $ (1,232 ) $ (6,633 ) Change in uncertain tax positions 155 147 (1,100 ) Withholding taxes on certain investment transactions 2,573 6,678 4,828 $ 11,976 $ 5,593 $ (2,905 ) |
Schedule of Income before Income Tax, Domestic and Foreign | The following is a summary of the Company’s income (loss) before income tax expense (benefit) by jurisdiction for the years ended December 31, 2017 , 2016 and 2015 : 2017 2016 2015 ($ in thousands) Bermuda $ 266,497 $ 38,243 $ (71,416 ) United States 27,172 (3,687 ) (18,981 ) United Kingdom 78 (87 ) 53 Income (loss) before income tax expense (benefit) $ 293,747 $ 34,469 $ (90,344 ) |
Schedule of Effective Income Tax Rate Reconciliation | The following table presents a reconciliation of expected income taxes to income tax expense (benefit) for the years ended December 31, 2017 , 2016 and 2015 : 2017 2016 2015 ($ in thousands) Bermuda (expected tax expense at 0%) $ — $ — $ — Foreign taxes at local expected rates: United States 9,510 (1,290 ) (6,644 ) United Kingdom 15 (17 ) 11 Withholding taxes on certain investment transactions 2,573 6,678 4,828 Change in uncertain tax positions 155 147 (1,100 ) Non-deductible expenses and other (277 ) 75 — Income tax expense (benefit) $ 11,976 $ 5,593 $ (2,905 ) |
Schedule of Deferred Tax Assets and Liabilities | The following table presents the tax effects of temporary differences that give rise to the deferred tax assets and deferred tax liabilities as of December 31, 2017 , 2016 and 2015 : 2017 2016 2015 ($ in thousands) Deferred tax assets: Discounting of loss and loss adjustment expense reserves $ 330 $ 451 $ 119 Unearned premiums 1,634 2,486 2,329 Temporary differences in recognition of expenses 138 1,134 573 Net operating and capital loss carryforwards 7,048 13,326 7,839 Total deferred tax assets 9,150 17,397 10,860 Deferred tax liabilities: Deferred acquisition costs 7,798 4,079 3,515 Unrealized gains on investments 2,435 5,438 712 Total deferred tax liabilities 10,233 9,517 4,227 Net deferred tax asset (liability) $ (1,083 ) $ 7,880 $ 6,633 |
Share capital (Tables)
Share capital (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Schedule of Common Stock and Treasury Stock Outstanding | The following tables are a summary of the common shares issued and outstanding and shares repurchased held as treasury shares as of and for the years ended December 31, 2017 and 2016 : Common shares 2017 2016 Common shares issued, beginning of year 106,501,299 105,479,341 Options exercised 150,802 514,059 Restricted shares granted, net of forfeitures (35,011 ) 47,712 Performance restricted shares granted, net of forfeitures 610,257 460,187 Common shares issued, end of year 107,227,347 106,501,299 Treasury shares, end of year (3,944,920 ) (644,768 ) Common shares outstanding, end of year 103,282,427 105,856,531 |
Schedule of summary of warrants | The following is a summary of warrants as of December 31, 2017 : Exercise price Authorized and issued Aggregated fair value of warrants ($ in thousands, except for share and per share amounts) Founders $ 10.00 4,069,868 $ 15,203 Advisor $ 10.00 581,295 2,171 4,651,163 $ 17,374 |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of share-based compensation expense | The following table provides the total share-based compensation expense included in general and administrative expenses during the years ended December 31, 2017 , 2016 and 2015 : 2017 2016 2015 ($ in thousands) Management and director options $ 648 $ 6,054 $ 6,264 Restricted shares with service condition (1) (331 ) 1,365 1,953 Restricted shares with service and performance condition 3,282 1,519 2,654 $ 3,599 $ 8,938 $ 10,871 |
Schedule of management and director options activity | The management and director options activity for the years ended December 31, 2017 , 2016 and 2015 were as follows: Number of options Weighted average exercise price Balances as of January 1, 2015 10,990,841 $ 13.41 Forfeited (306,976 ) 14.36 Exercised (433,279 ) 10.00 Balances as of January 1, 2016 10,250,586 13.52 Forfeited (139,534 ) 18.00 Exercised (514,059 ) 10.00 Balances as of January 1, 2017 9,596,993 13.64 Forfeited (558,138 ) 18.00 Exercised (150,802 ) 10.00 Balances as of December 31, 2017 8,888,053 $ 13.43 |
Schedule of management and director options outstanding | The following table summarizes information about the Company’s management and director share options outstanding as of December 31, 2017 : Options outstanding Options exercisable Range of exercise prices Number of options Weighted average exercise price Remaining contractual life Number of options Weighted average exercise price $10.00 - $10.89 5,123,532 $ 10.04 4.1 years 5,081,671 $ 10.03 $15.05 - $16.89 1,917,145 $ 15.93 4.3 years 1,861,332 $ 15.94 $20.00 - $25.05 1,847,376 $ 20.26 4.2 years 1,805,518 $ 20.22 8,888,053 $ 13.43 4.2 years 8,748,521 $ 13.39 |
Schedule of restricted share award activity | Restricted share award activity for the restricted shares with only a service condition for the years ended December 31, 2017 , 2016 and 2015 was as follows: Number of non- vested restricted shares Weighted average grant date fair value Balance as of January 1, 2015 616,114 $ 10.10 Granted 118,120 13.06 Forfeited (7,267 ) 13.76 Vested (425,924 ) 10.37 Balance as of January 1, 2016 301,043 11.12 Granted 47,712 11.37 Vested (47,712 ) 11.37 Balance as of January 1, 2017 301,043 11.12 Granted 36,418 12.15 Forfeited (71,429 ) 14.00 Vested (247,823 ) 10.36 Balance as of December 31, 2017 18,209 $ 12.15 |
Schedule of restricted shares with a service and performance condition activity | Restricted share award activity for the restricted shares with a service and performance condition for the years ended December 31, 2017 , 2016 and 2015 was as follows: Number of non- vested restricted shares Number of non- vested restricted shares probable of vesting Weighted average grant date fair value Balance as of January 1, 2015 459,746 306,496 $ 14.60 Granted 514,276 342,846 14.00 Forfeited (52,469 ) (34,980 ) 14.29 Change in estimated restricted shares considered probable of vesting n/a (78,128 ) 14.60 Balance as of January 1, 2016 921,553 536,234 14.24 Granted 653,958 435,974 11.40 Forfeited (193,771 ) (119,009 ) 13.16 Change in estimated restricted shares considered probable of vesting n/a (275,713 ) 13.06 Balance as of January 1, 2017 1,381,740 577,486 12.91 Granted 935,825 623,882 12.66 Forfeited (325,568 ) (45,617 ) 12.57 Vested (136,618 ) (136,618 ) 14.60 Change in estimated restricted shares considered probable of vesting n/a (131,930 ) 12.17 Balance as of December 31, 2017 1,855,379 887,203 $ 12.60 |
Non-controlling interests (Tabl
Non-controlling interests (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Noncontrolling Interest [Abstract] | |
Schedule of noncontrolling interests | Income (loss) attributable to noncontrolling interests in related party for the years ended December 31, 2017 , 2016 and 2015 was: 2017 2016 2015 ($ in thousands) Catastrophe Fund and Catastrophe Fund Manager $ — $ — $ (102 ) Joint Venture - Third Point Advisors LLC share 3,973 1,241 53 $ 3,973 $ 1,241 $ (49 ) |
Minority Interests | The following table is a reconciliation of the beginning and ending carrying amounts of redeemable noncontrolling interests in related party, noncontrolling interests in related party and total noncontrolling interests in related party for the years ended December 31, 2017 and 2016 (See Note 2 for additional information on changes in the presentation of noncontrolling interests): Redeemable noncontrolling interests in related party Noncontrolling interests in related party Total noncontrolling interests in related party 2017 2016 2017 2016 2017 2016 ($ in thousands) Balance, beginning of period $ — $ — $ 35,674 $ 16,157 $ 35,674 $ 16,157 Changes in capital account allocation 108,219 — (30,267 ) 19,517 77,952 19,517 Balance, end of period $ 108,219 $ — $ 5,407 $ 35,674 $ 113,626 $ 35,674 In addition, the following table is a reconciliation of beginning and ending carrying amount of total noncontrolling interests in related party resulting from the consolidation of the Company’s joint venture in Third Point Re BDA and Third Point Re USA: Third Point Re BDA Third Point Re USA Total 2017 2016 2017 2016 2017 2016 ($ in thousands) Balance, beginning of period $ 30,358 $ 14,152 $ 5,316 $ 2,005 $ 35,674 $ 16,157 Net income attributable to total noncontrolling interests in related party 3,167 1,073 806 168 3,973 1,241 Contributions (1) 82,093 15,133 11,885 3,143 93,978 18,276 Redemptions (17,999 ) — (2,000 ) — (19,999 ) — Balance, end of period $ 97,619 $ 30,358 $ 16,007 $ 5,316 $ 113,626 $ 35,674 (1) Contributions include performance fees earned during the period. See Note 9 for additional information. |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of basic and diluted weighted average shares outstanding | The following sets forth the computation of basic and diluted earnings (loss) per share available to Third Point Re common shareholders for the years ended December 31, 2017 , 2016 and 2015 : 2017 2016 2015 Weighted-average number of common shares outstanding: ($ in thousands, except share and per share amounts) Basic number of common shares outstanding 102,264,094 104,060,052 104,003,820 Dilutive effect of options 1,392,384 633,955 — Dilutive effect of warrants 1,270,957 709,499 — Dilutive effect of restricted shares with service and performance condition 299,603 160,278 — Diluted number of common shares outstanding 105,227,038 105,563,784 104,003,820 Basic earnings (loss) per common share: Net income (loss) available to Third Point Re common shareholders $ 277,798 $ 27,635 $ (87,390 ) Net income allocated to Third Point Re participating common shareholders (263 ) (88 ) — Net income (loss) allocated to Third Point Re common shareholders $ 277,535 $ 27,547 $ (87,390 ) Basic earnings (loss) per share available to Third Point Re common shareholders $ 2.71 $ 0.26 $ (0.84 ) Diluted earnings (loss) per common share: Net income (loss) available to Third Point Re common shareholders $ 277,798 $ 27,635 $ (87,390 ) Net income allocated to Third Point Re participating common shareholders (256 ) (87 ) — Net income (loss) allocated to Third Point Re common shareholders $ 277,542 $ 27,548 $ (87,390 ) Diluted earnings (loss) per share available to Third Point Re common shareholders $ 2.64 $ 0.26 $ (0.84 ) |
Financial instruments with of52
Financial instruments with off-balance sheet risk or concentrations of credit risk (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Guarantees [Abstract] | |
Schedule of certain information related to the Company’s written credit derivatives | The following table sets forth certain information related to the Company’s written credit derivatives as of December 31, 2017 and 2016 : December 31, 2017 Maximum Payout/ Notional Amount Fair Value of Written Credit Derivatives (2) Credit Spreads on underlying (basis points) 0-5 years 5 years or Total Written (1) Asset Liability Net Asset/(Liability) ($ in thousands) Single name (0 - 250) $ — $ 2,351 $ 2,351 $ — $ 2,085 $ (2,085 ) $ — $ 2,351 $ 2,351 $ — $ 2,085 $ (2,085 ) December 31, 2016 Maximum Payout/ Notional Amount Fair Value of Written Credit Derivatives (2) Credit Spreads on underlying (basis points) 0-5 years 5 years or Total Written (1) Asset Liability Net Asset/(Liability) ($ in thousands) Single name (0 - 250) $ — $ 3,943 $ 3,943 $ — $ 1,952 $ (1,952 ) $ — $ 3,943 $ 3,943 $ — $ 1,952 $ (1,952 ) (1) As of December 31, 2017 and 2016 , the Company did not hold any offsetting buy protection credit derivatives with the same underlying reference obligation. (2) Fair value amounts of derivative contracts are shown on a gross basis prior to cash collateral or counterparty netting. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum rental commitments under lease | Future minimum rental commitments as of December 31, 2017 under these leases are expected to be as follows: ($ in thousands) 2018 $ 871 2019 888 2020 850 2021 42 2022 — Thereafter — $ 2,651 |
Schedule of future minimum management fee commitments under the existing lease | Future minimum management fee commitments as of December 31, 2017 under the existing agreement are expected to be as follows: ($ in thousands) 2018 $ 723 2019 750 2020 779 2021 538 2022 — $ 2,790 |
Segment reporting (Tables)
Segment reporting (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of operating segments | The following is a summary of the Company’s operating segment results for the years ended December 31, 2017 , 2016 and 2015 : Year Ended December 31, 2017 Property and Casualty Reinsurance Catastrophe Risk Management Corporate Total Revenues ($ in thousands) Gross premiums written $ 641,620 $ — $ — $ 641,620 Gross premiums ceded (2,475 ) — — (2,475 ) Net premiums written 639,145 — — 639,145 Change in net unearned premium reserves (92,087 ) — — (92,087 ) Net premiums earned 547,058 — — 547,058 Expenses Loss and loss adjustment expenses incurred, net 370,058 — — 370,058 Acquisition costs, net 188,904 — — 188,904 General and administrative expenses 30,656 — 22,447 53,103 Total expenses 589,618 — 22,447 612,065 Net underwriting loss (42,560 ) n/a n/a n/a Net investment inco me 114,435 — 277,518 391,953 Other expenses (12,674 ) — — (12,674 ) Interest expense — — (8,225 ) (8,225 ) Foreign exchange losses — — (12,300 ) (12,300 ) Income tax expense — — (11,976 ) (11,976 ) Net income attributable to noncontrolling interests in related party — — (3,973 ) (3,973 ) Segment income $ 59,201 $ — $ 218,597 Net income available to Third Point Re common shareholders $ 277,798 Property and Casualty Reinsurance - Underwriting Ratios (1) : Loss ratio 67.6 % Acquisition cost ratio 34.5 % Composite ratio 102.1 % General and administrative expense ratio 5.6 % Combined ratio 107.7 % (1) Underwriting ratios are calculated by dividing the related expense by net premiums earned. Year Ended December 31, 2016 Property and Casualty Reinsurance Catastrophe Risk Management Corporate Total Revenues ($ in thousands) Gross premiums written $ 617,374 $ — $ — $ 617,374 Gross premiums ceded (2,325 ) — — (2,325 ) Net premiums written 615,049 — — 615,049 Change in net unearned premium reserves (24,859 ) — — (24,859 ) Net premiums earned 590,190 — — 590,190 Expenses Loss and loss adjustment expenses incurred, net 395,932 — — 395,932 Acquisition costs, net 222,150 — — 222,150 General and administrative expenses 22,160 — 17,207 39,367 Total expenses 640,242 — 17,207 657,449 Net underwriting loss (50,052 ) n/a n/a n/a Net investment income 16,931 — 81,894 98,825 Other expenses (8,387 ) — — (8,387 ) Interest expense — — (8,231 ) (8,231 ) Foreign exchange gains — — 19,521 19,521 Income tax expense — — (5,593 ) (5,593 ) Net income attributable to noncontrolling interests in related party — — (1,241 ) (1,241 ) Segment income (loss) $ (41,508 ) $ — $ 69,143 Net income available to Third Point Re common shareholders $ 27,635 Property and Casualty Reinsurance - Underwriting Ratios (1) : Loss ratio 67.1 % Acquisition cost ratio 37.6 % Composite ratio 104.7 % General and administrative expense ratio 3.8 % Combined ratio 108.5 % (1) Underwriting ratios are calculated by dividing the related expense by net premiums earned. Year Ended December 31, 2015 Property and Casualty Reinsurance Catastrophe Risk Management Corporate Total Revenues ($ in thousands) Gross premiums written $ 702,458 $ (44 ) $ — $ 702,414 Gross premiums ceded (1,876 ) — — (1,876 ) Net premiums written 700,582 (44 ) — 700,538 Change in net unearned premium reserves (97,766 ) 52 — (97,714 ) Net premiums earned 602,816 8 — 602,824 Expenses Loss and loss adjustment expenses incurred, net 415,041 150 — 415,191 Acquisition costs, net 191,217 (1 ) — 191,216 General and administrative expenses 24,815 447 20,771 46,033 Total expenses 631,073 596 20,771 652,440 Net underwriting loss (28,257 ) n/a n/a n/a Net investment income (loss) (10,810 ) 69 (17,333 ) (28,074 ) Other expenses (8,614 ) — — (8,614 ) Interest expense — — (7,236 ) (7,236 ) Foreign exchange gains — — 3,196 3,196 Income tax benefit — — 2,905 2,905 Net (income) loss attributable to noncontrolling interes ts in related party — 102 (53 ) 49 Segment loss $ (47,681 ) $ (417 ) $ (39,292 ) Net loss attributable to Third Point Re common shareholders $ (87,390 ) Property and Casualty Reinsurance - Underwriting Ratios (1) : Loss ratio 68.9 % Acquisition cost ratio 31.7 % Composite ratio 100.6 % General and administrative expense ratio 4.1 % Combined ratio 104.7 % (1) Underwriting ratios are calculated by dividing the related expense by net premiums earned. |
Schedules of number of contracts that individually contributed more than 10% of total gross premiums written | The following table lists the number of contracts that individually contributed more than 10% of total gross premiums written for the years ended December 31, 2017 , 2016 and 2015 as a percentage of total gross premiums written in the relevant year: 2017 2016 2015 Largest contract 16.1 % 16.1 % 16.1 % Second largest contract 14.1 % n/a 13.0 % Third largest contract 13.1 % n/a n/a Total for contracts contributing greater than 10% each 43.3 % 16.1 % 29.1 % Total for contracts contributing less than 10% each 56.7 % 83.9 % 70.9 % 100.0 % 100.0 % 100.0 % The following table lists counterparties with whom the Company has reinsurance balances receivable representing more than 10% of the Company’s total reinsurance balances receivable as of December 31, 2017 and 2016 : December 31, 2017 December 31, 2016 ($ in thousands) Counterparty 1 $ 80,187 16.8 % $ 82,162 21.5 % Counterparty 2 58,776 12.4 % n/a n/a Counterparty 3 51,613 10.8 % n/a n/a Counterparty 4 47,438 10.0 % n/a n/a 238,014 50.0 % 82,162 21.5 % Other counterparties representing less than 10% each 237,994 50.0 % 299,789 78.5 % Reinsurance balances receivable $ 476,008 100.0 % $ 381,951 100.0 % |
Schedule of breakdown of the Company’s gross premiums written by line of business | The following table provides a breakdown of the Company’s gross premiums written by line of business for the years ended December 31, 2017 , 2016 and 2015 : 2017 2016 2015 ($ in thousands) Property $ 136,999 21.4 % $ 98,334 15.9 % $ 114,215 16.2 % Casualty 269,759 42.0 % 213,050 34.5 % 235,510 33.5 % Specialty 125,511 19.6 % 305,990 49.6 % 244,669 34.9 % Total prospective reinsurance contracts 532,269 83.0 % 617,374 100.0 % 594,394 84.6 % Retroactive reinsurance contracts 109,351 17.0 % — — % 108,064 15.4 % Total property and casualty reinsurance 641,620 100.0 % 617,374 100.0 % 702,458 100.0 % Catastrophe risk management — — % — — % (44 ) — % $ 641,620 100.0 % $ 617,374 100.0 % $ 702,414 100.0 % |
Schedule of breakdown of the Company’s gross premiums written from brokers | The following table sets forth the Company’s premiums written by source that individually contributed more than 10% of total gross premiums written for the years ended December 31, 2017 , 2016 and 2015 : 2017 2016 2015 ($ in thousands) Largest broker $ 243,581 38.0 % $ 240,172 38.9 % $ 198,209 28.2 % Second largest broker 128,648 20.1 % 185,638 30.1 % 163,832 23.3 % Third largest broker 107,612 16.8 % 97,148 15.7 % 91,554 13.0 % Fourth largest broker n/a n/a n/a n/a 73,499 10.5 % Other 161,779 25.1 % 94,416 15.3 % 175,320 25.0 % $ 641,620 100.0 % $ 617,374 100.0 % $ 702,414 100.0 % |
Schedule of breakdown of the Company’s gross premiums written by domicile of the ceding companies | The following table provides a breakdown of the Company’s gross premiums written by domicile of the ceding companies for the years ended December 31, 2017 , 2016 and 2015 : 2017 2016 2015 ($ in thousands) United States $ 352,539 54.9 % $ 332,849 53.9 % $ 283,626 40.4 % United Kingdom 203,768 31.8 % 187,625 30.4 % 290,710 41.4 % Bermuda 62,234 9.7 % 96,900 15.7 % 128,078 18.2 % Other 23,079 3.6 % — — % — — % $ 641,620 100.0 % $ 617,374 100.0 % $ 702,414 100.0 % |
Statutory Requirements (Tables)
Statutory Requirements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Statutory Requirements [Abstract] | |
Schedule of statutory requirements | The following is a summary of actual and required statutory capital and surplus, based on the EBS framework, of Third Point Re BDA and Third Point Re USA as of December 31, 2017 and 2016 : December 31, 2017 December 31, 2016 ($ in thousands) Actual statutory capital and surplus Third Point Re BDA $ 1,430,174 $ 1,259,876 Third Point Re USA 265,206 282,552 Required statutory capital and surplus Third Point Re BDA 759,518 642,349 Third Point Re USA $ 93,261 $ 89,557 The following is a summary of the statutory net income (loss) for Third Point Re and Third Point Re USA for the years ended December 31, 2017 , 2016 and 2015 : 2017 2016 2015 ($ in thousands) Third Point Re BDA $ 265,903 $ 35,096 $ (68,188 ) Third Point Re USA $ 22,310 $ 2,701 $ (7,510 ) |
Supplemental guarantor inform56
Supplemental guarantor information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Balance Sheet | CONSOLIDATING BALANCE SHEET As of December 31, 2017 (expressed in thousands of U.S. dollars) Third Point Re TPRUSA Non-Guarantor Subsidiaries Eliminations Consolidated Assets Equity securities $ — $ — $ 2,283,050 $ — $ 2,283,050 Debt securities — — 675,158 — 675,158 Other investments — — 37,731 — 37,731 Total investments in securities — — 2,995,939 — 2,995,939 Cash and cash equivalents 9 199 7,989 — 8,197 Restricted cash and cash equivalents — — 541,136 — 541,136 Investment in subsidiaries 1,657,467 274,272 164,909 (2,096,648 ) — Due from brokers — — 305,093 — 305,093 Derivative assets, at fair value — — 73,372 — 73,372 Interest and dividends receivable — — 3,774 — 3,774 Reinsurance balances receivable — — 476,008 — 476,008 Deferred acquisition costs, net — — 258,793 — 258,793 Amounts due from (to) affiliates (1,288 ) 412 876 — — Other assets 664 — 8,818 — 9,482 Total assets $ 1,656,852 $ 274,883 $ 4,836,707 $ (2,096,648 ) $ 4,671,794 Liabilities Accounts payable and accrued expenses (1) $ 763 $ (8,805 ) $ 42,674 $ — $ 34,632 Reinsurance balances payable — — 41,614 — 41,614 Deposit liabilities — — 129,133 — 129,133 Unearned premium reserves — — 649,518 — 649,518 Loss and loss adjustment expense reserves — — 720,570 — 720,570 Securities sold, not yet purchased, at fair value — — 394,278 — 394,278 Securities sold under an agreement to repurchase — — 29,618 — 29,618 Due to brokers — — 770,205 — 770,205 Derivative liabilities, at fair value — — 14,503 — 14,503 Interest and dividends payable — 3,055 1,220 — 4,275 Senior notes payable, net of deferred costs — 113,733 — — 113,733 Total liabilities 763 107,983 2,793,333 — 2,902,079 Redeemable noncontrolling interests in related party — — 108,219 — 108,219 Shareholders' equity Common shares 10,723 — 1,250 (1,250 ) 10,723 Treasury shares (48,253 ) — — — (48,253 ) Additional paid-in capital 1,099,599 165,097 1,531,770 (1,696,867 ) 1,099,599 Retained earnings (deficit) 594,020 1,803 396,728 (398,531 ) 594,020 Shareholders’ equity attributable to Third Point Re common shareholders 1,656,089 166,900 1,929,748 (2,096,648 ) 1,656,089 Noncontrolling interests in related party — — 5,407 — 5,407 Total shareholders’ equity 1,656,089 166,900 1,935,155 (2,096,648 ) 1,661,496 Total liabilities, noncontrolling interests and shareholders’ equity $ 1,656,852 $ 274,883 $ 4,836,707 $ (2,096,648 ) $ 4,671,794 (1) Negative balance of $8.8 million represents net deferred tax assets that are offset by net deferred tax liabilities in Third Point Re USA of $9.9 million , resulting in a net liability position as of December 31, 2017 . CONSOLIDATING BALANCE SHEET As of December 31, 2016 (expressed in thousands of U.S. dollars) Third Point Re TPRUSA Non-Guarantor Subsidiaries Eliminations Consolidated Assets Equity securities $ — $ — $ 1,506,854 $ — $ 1,506,854 Debt securities — — 1,057,957 — 1,057,957 Other investments — — 82,701 — 82,701 Total investments in securities — — 2,647,512 — 2,647,512 Cash and cash equivalents 1,629 79 8,243 — 9,951 Restricted cash and cash equivalents — — 298,940 — 298,940 Investment in subsidiaries 1,413,078 269,622 165,324 (1,848,024 ) — Due from brokers — — 284,591 — 284,591 Derivative assets, at fair value — — 27,432 — 27,432 Interest and dividends receivable — — 6,505 — 6,505 Reinsurance balances receivable — — 381,951 — 381,951 Deferred acquisition costs, net — — 221,618 — 221,618 Amounts due from (to) affiliates (142 ) (8,394 ) 8,536 — — Other assets 637 5,507 11,000 — 17,144 Total assets $ 1,415,202 $ 266,814 $ 4,061,652 $ (1,848,024 ) $ 3,895,644 Liabilities Accounts payable and accrued expenses $ 1,151 $ 40 $ 9,130 $ — $ 10,321 Reinsurance balances payable — — 43,171 — 43,171 Deposit liabilities — — 104,905 — 104,905 Unearned premium reserves — — 557,076 — 557,076 Loss and loss adjustment expense reserves — — 605,129 — 605,129 Securities sold, not yet purchased, at fair value — — 92,668 — 92,668 Due to brokers — — 899,601 — 899,601 Derivative liabilities, at fair value — — 16,050 — 16,050 Interest and dividends payable — 3,057 386 — 3,443 Senior notes payable, net of deferred costs — 113,555 — — 113,555 Total liabilities 1,151 116,652 2,328,116 — 2,445,919 Shareholders’ equity Common shares 10,650 — 1,250 (1,250 ) 10,650 Treasury shares (7,389 ) — — — (7,389 ) Additional paid-in capital 1,094,568 165,456 1,528,827 (1,694,283 ) 1,094,568 Retained earnings (deficit) 316,222 (15,294 ) 167,785 (152,491 ) 316,222 Shareholders’ equity attributable to Third Point Re common shareholders 1,414,051 150,162 1,697,862 (1,848,024 ) 1,414,051 Noncontrolling interests in related party — — 35,674 — 35,674 Total shareholders’ equity 1,414,051 150,162 1,733,536 (1,848,024 ) 1,449,725 Total liabilities, noncontrolling interests and shareholders’ equity $ 1,415,202 $ 266,814 $ 4,061,652 $ (1,848,024 ) $ 3,895,644 |
Condensed Consolidating Statement of Income | CONSOLIDATING STATEMENT OF INCOME Year Ended December 31, 2017 (expressed in thousands of U.S. dollars) Third Point Re TPRUSA Non-Guarantor Subsidiaries Eliminations Consolidated Revenues Gross premiums written $ — $ — $ 641,620 $ — $ 641,620 Gross premiums ceded — — (2,475 ) — (2,475 ) Net premiums written — — 639,145 — 639,145 Change in net unearned premium reserves — — (92,087 ) — (92,087 ) Net premiums earned — — 547,058 — 547,058 Net investment income — — 391,953 — 391,953 Equity in earnings (losses) of s ubsidiaries 283,088 22,309 (57 ) (305,340 ) — Total revenues 283,088 22,309 938,954 (305,340 ) 939,011 Expenses Loss and loss adjustment expenses incurred, net — — 370,058 — 370,058 Acquisition costs, net — — 188,904 — 188,904 General and administrative expenses 5,290 49 47,764 — 53,103 Other expenses — — 12,674 — 12,674 Interest expense — 8,225 — — 8,225 Foreign exchange losses — — 12,300 — 12,300 Total expenses 5,290 8,274 631,700 — 645,264 Income before income tax expense 277,798 14,035 307,254 (305,340 ) 293,747 Income tax (expense) benefit — 3,062 (15,038 ) — (11,976 ) Net income 277,798 17,097 292,216 (305,340 ) 281,771 Net income attributable to noncontrolling interests in related party — — (3,973 ) — (3,973 ) Net income available to Third Point Re common shareholders $ 277,798 $ 17,097 $ 288,243 $ (305,340 ) $ 277,798 CONSOLIDATING STATEMENT OF INCOME (LOSS) Year Ended December 31, 2016 (expressed in thousands of U.S. dollars) Third Point Re TPRUSA Non-Guarantor Subsidiaries Eliminations Consolidated Revenues Gross premiums written $ — $ — $ 617,374 $ — $ 617,374 Gross premiums ceded — — (2,325 ) — (2,325 ) Net premiums written — — 615,049 — 615,049 Change in net unearned premium reserves — — (24,859 ) — (24,859 ) Net premiums earned — — 590,190 — 590,190 Net investment inco me — — 98,825 — 98,825 Equity in earnings (losses) of sub sidiaries 32,347 2,701 (107 ) (34,941 ) — Total revenues 32,347 2,701 688,908 (34,941 ) 689,015 Expenses Loss and loss adjustment expenses incurred, net — — 395,932 — 395,932 Acquisition costs, net — — 222,150 — 222,150 General and administrative expenses 4,712 40 34,615 — 39,367 Other expenses — — 8,387 — 8,387 Interest expense — 8,231 — — 8,231 Foreign exchange gains — — (19,521 ) — (19,521 ) Total expenses 4,712 8,271 641,563 — 654,546 Income (loss) before income ta x (expense) benefit 27,635 (5,570 ) 47,345 (34,941 ) 34,469 Income tax (expens e) benefit — 2,895 (8,488 ) — (5,593 ) Net income (loss) 27,635 (2,675 ) 38,857 (34,941 ) 28,876 Net income attributable to noncontrolling inte rests in related party — — (1,241 ) — (1,241 ) Net inco me (loss) available to Third Point Re common shareholders $ 27,635 $ (2,675 ) $ 37,616 $ (34,941 ) $ 27,635 CONSOLIDATING STATEMENT OF LOSS Year Ended December 31, 2015 (expressed in thousands of U.S. dollars) Third Point Re TPRUSA Non-Guarantor Subsidiaries Eliminations Consolidated Revenues Gross premiums written $ — $ — $ 702,414 $ — $ 702,414 Gross premiums ceded — — (1,876 ) — (1,876 ) Net premiums written — — 700,538 — 700,538 Change in net unearned premium reserves — — (97,714 ) — (97,714 ) Net premiums earned — — 602,824 — 602,824 Net investment loss — — (28,074 ) — (28,074 ) Equity in earnings of subsidiaries (79,053 ) (7,510 ) (25 ) 86,588 — Total revenues (79,053 ) (7,510 ) 574,725 86,588 574,750 Expenses Loss and loss adjustment expenses incurred, net — — 415,191 — 415,191 Acquisition costs, net — — 191,216 — 191,216 General and administrative expenses 8,337 231 37,465 — 46,033 Other expenses — — 8,614 — 8,614 Interest expense — 7,236 — — 7,236 Foreign exchange gains — — (3,196 ) — (3,196 ) Total expenses 8,337 7,467 649,290 — 665,094 Loss before income tax benefit (87,390 ) (14,977 ) (74,565 ) 86,588 (90,344 ) Income tax benefit — 2,613 292 — 2,905 Net loss (87,390 ) (12,364 ) (74,273 ) 86,588 (87,439 ) Net loss attributable to noncontrolling interests in related party — — 49 — 49 Net loss attributable to Third Point Re common shareholders $ (87,390 ) $ (12,364 ) $ (74,224 ) $ 86,588 $ (87,390 ) |
Condensed Consolidating Statement of Cash Flows | CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2017 (expressed in thousands of U.S. dollars) Third Point Re TPRUSA Non-Guarantor Subsidiaries Eliminations Consolidated Operating activities Net income $ 277,798 $ 17,097 $ 292,216 $ (305,340 ) $ 281,771 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Equity in (earnings) losses of subsidiaries (283,088 ) (22,309 ) 57 305,340 — Share compensation expense 298 — 3,301 — 3,599 Net interest expense on deposit liabilities — — 2,800 — 2,800 Net unrealized gain on investments and derivatives — — (255,029 ) — (255,029 ) Net realized gain on investments and derivatives — — (225,016 ) — (225,016 ) Net foreign exchange losses — — 12,300 — 12,300 Amortization of premium and accretion of discount, net — 178 295 — 473 Changes in assets and liabilities: Reinsurance balances receivable — — (86,606 ) — (86,606 ) Deferred acquisition costs, net — — (37,175 ) — (37,175 ) Other assets (27 ) 5,507 2,191 — 7,671 Interest and dividends receivable, net — (2 ) 3,565 — 3,563 Unearned premium reserves — — 92,442 — 92,442 Loss and loss adjustment expense reserves — — 97,922 — 97,922 Accounts payable and accrued expenses (388 ) (8,845 ) 33,445 — 24,212 Reinsurance balances payable — — (1,463 ) — (1,463 ) Amounts due from (to) affiliates 1,146 (8,806 ) 7,660 — — Net cash used in operating activities (4,261 ) (17,180 ) (57,095 ) — (78,536 ) Investing activities Purchases of investments — — (3,099,525 ) — (3,099,525 ) Proceeds from sales of investments — — 3,228,251 — 3,228,251 Purchases of investments to cover short sales — — (791,753 ) — (791,753 ) Proceeds from short sales of investments — — 1,048,552 — 1,048,552 Change in due to/from brokers, net — — (149,898 ) — (149,898 ) Increase in securities sold under an agreement to repurchase — — 29,618 — 29,618 Change in restricted cash and cash equivalents — — (242,196 ) — (242,196 ) Net cash provided by investing activities — — 23,049 — 23,049 Financing activities Proceeds from issuance of Third Point Re common shares, net of costs 1,505 — — — 1,505 Purchases of Third Point Re common shares under share repurchase program (40,864 ) — — — (40,864 ) Decrease in deposit liabilities, net — — 19,113 — 19,113 Change in total noncontrolling interests in related party, net — — 73,979 — 73,979 Dividend received by (paid to) parent 42,000 17,300 (59,300 ) — — Net cash provided by financing activities 2,641 17,300 33,792 — 53,733 Net increase (decrease) in cash and cash equivalents (1,620 ) 120 (254 ) — (1,754 ) Cash and cash equivalents at beginning of year 1,629 79 8,243 — 9,951 Cash and cash equivalents at end of year $ 9 $ 199 $ 7,989 $ — $ 8,197 CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2016 (expressed in thousands of U.S. dollars) Third Point Re TPRUSA Non-Guarantor Subsidiaries Eliminations Consolidated Operating activities Net income (loss) $ 27,635 $ (2,675 ) $ 38,857 $ (34,941 ) $ 28,876 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Equity in (earnings) losses of subsidiaries (32,347 ) (2,701 ) 107 34,941 — Share compensation expense 543 — 8,395 — 8,938 Net interest income on deposit liabilities — — (164 ) — (164 ) Net unrealized gain on investments and derivatives — — (72,083 ) — (72,083 ) Net realized gain on investments and derivatives — — (33,179 ) — (33,179 ) Net foreign exchange gains — — (19,521 ) — (19,521 ) Amortization of premium and accretion of discount, net — 178 4,940 — 5,118 Changes in assets and liabilities: Reinsurance balances receivable — — (86,612 ) — (86,612 ) Deferred acquisition costs, net — — (24,525 ) — (24,525 ) Other assets (73 ) (2,894 ) (2,036 ) — (5,003 ) Interest and dividends receivable, net — 2 3,223 — 3,225 Unearned premium reserves — — 25,366 — 25,366 Loss and loss adjustment expense reserves — — 156,644 — 156,644 Accounts payable and accrued expenses (1,985 ) — (110 ) — (2,095 ) Reinsurance balances payable — — 19,786 — 19,786 Amounts due from (to) affiliates (204 ) 8,164 (7,960 ) — — Net cash provided by (used in) operating activities (6,431 ) 74 11,128 — 4,771 Investing activities Purchases of investments — — (3,729,944 ) — (3,729,944 ) Proceeds from sales of investments — — 3,504,598 — 3,504,598 Purchases of investments to cover short sales — — (1,264,404 ) — (1,264,404 ) Proceeds from short sales of investments — — 1,046,422 — 1,046,422 Change in due to/from brokers, net — — 367,019 — 367,019 Increase in securities sold under an agreement to repurchase — — (8,944 ) — (8,944 ) Change in restricted cash and cash equivalents — — 31,975 — 31,975 Contributed capital to subsidiaries (5,000 ) 5,000 — — — Contributed capital from parent and/or subsidiaries — (5,000 ) 5,000 — — Net cash used in investing activities (5,000 ) — (48,278 ) — (53,278 ) Financing activities Proceeds from issuance of common shares, net of costs 5,141 — — — 5,141 Purchases of Third Point Re common shares under share repurchase program (7,389 ) — — — (7,389 ) Increase in deposit liabilities — — 22,023 — 22,023 Change in total noncontrolling interests in related party, net — — 18,276 — 18,276 Dividend received by (paid to) parent 15,000 — (15,000 ) — — Net cash provided by financing activities 12,752 — 25,299 — 38,051 Net increase (decrease) in cash and cash equivalents 1,321 74 (11,851 ) — (10,456 ) Cash and cash equivalents at beginning of year 308 5 20,094 — 20,407 Cash and cash equivalents at end of year $ 1,629 $ 79 $ 8,243 $ — $ 9,951 CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2015 (expressed in thousands of U.S. dollars) Third Point Re TPRUSA Non-Guarantor Subsidiaries Eliminations Consolidated Operating activities Net loss $ (87,390 ) $ (12,364 ) $ (74,273 ) $ 86,588 $ (87,439 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities Equity in earnings of subsidiaries 79,053 7,510 25 (86,588 ) — Share compensation expense 542 — 10,329 — 10,871 Net interest expense on deposit liabilities — — 6,471 — 6,471 Net unrealized loss on investments and derivatives — — 32,354 — 32,354 Net realized gain on investments and derivatives — — (16,655 ) — (16,655 ) Net foreign exchange gains — — (3,196 ) — (3,196 ) Amortization of premium and accretion of discount, net — 157 167 — 324 Changes in assets and liabilities: Reinsurance balances receivable — — 8,768 — 8,768 Deferred acquisition costs, net — — (41,192 ) — (41,192 ) Other assets 36 (1,947 ) (5,904 ) — (7,815 ) Interest and dividends receivable, net — 3,055 (7,437 ) — (4,382 ) Unearned premium reserves — — 97,901 — 97,901 Loss and loss adjustment expense reserves — — 192,433 — 192,433 Accounts payable and accrued expenses 1,910 (478 ) 449 — 1,881 Reinsurance balances payable — — (2,548 ) — (2,548 ) Amounts due from (to) affiliates 1,685 (173 ) (1,512 ) — — Net cash provided by (used in) operating activities (4,164 ) (4,240 ) 196,180 — 187,776 Investing activities Purchases of investments — — (3,360,626 ) — (3,360,626 ) Proceeds from sales of investments — — 2,829,523 — 2,829,523 Purchases of investments to cover short sales — — (543,936 ) — (543,936 ) Proceeds from short sales of investments — — 792,344 — 792,344 Change in due to/from brokers, net — — (6,377 ) — (6,377 ) Decrease in securities purchased under an agreement to sell — — 29,852 — 29,852 Increase in securities sold under an agreement to repurchase — — 8,944 — 8,944 Change in restricted cash and cash equivalents — — 86,392 — 86,392 Contributed capital (to) from subsidiaries (158,000 ) (266,975 ) (25 ) 425,000 — Contributed capital from parent — 158,000 267,000 (425,000 ) — Net cash provided by (used in) investing activities (158,000 ) (108,975 ) 103,091 — (163,884 ) Financing activities Proceeds from issuance of common shares, net of costs 4,332 — — — 4,332 Proceeds from issuance of senior notes payable — 113,220 — — 113,220 Increase in deposit liabilities — — (65,842 ) — (65,842 ) Change in total noncontrolling interests in related party, net — — (24,137 ) — (24,137 ) Noncontrolling interest in Catastrophe Fund & Catastrophe Fund Manager — — (59,792 ) — (59,792 ) Dividend received by (paid to) parent 158,000 — (158,000 ) — — Net cash provided by (used in) financing activities 162,332 113,220 (307,771 ) — (32,219 ) Net increase (decrease) in cash and cash equivalents 168 5 (8,500 ) — (8,327 ) Cash and cash equivalents at beginning of year 140 — 28,594 — 28,734 Cash and cash equivalents at end of year $ 308 $ 5 $ 20,094 $ — $ 20,407 |
Quarterly Financial Results (Ta
Quarterly Financial Results (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial results | Three months ended December 31, September 30, June 30, March 31, ($ in thousands, except per share and share amounts) Revenues Gross premiums written $ 164,163 $ 174,539 $ 156,564 $ 146,354 Gross premiums ceded 75 — (1,425 ) (1,125 ) Net premiums written 164,238 174,539 155,139 145,229 Change in net unearned premium reserves (34,722 ) (68,564 ) 18,419 (7,220 ) Net premiums earned 129,516 105,975 173,558 138,009 Net investment income 67,150 88,968 107,325 128,510 Total revenues 196,666 194,943 280,883 266,519 Expenses Loss and loss adjustment expenses incurred, net 99,509 77,275 107,379 85,895 Acquisition costs, net 31,837 33,974 68,641 54,452 General and administrative expenses 14,299 13,218 15,014 10,572 Other expenses 3,822 3,846 2,105 2,901 Interest expense 2,074 2,074 2,051 2,026 Foreign exchange losses 2,067 5,437 4,781 15 Total expenses 153,608 135,824 199,971 155,861 Income before income tax (expense) benefit 43,058 59,119 80,912 110,658 Income tax (expense) benefit 2,104 (3,475 ) (5,307 ) (5,298 ) Net income 45,162 55,644 75,605 105,360 Net income attributable to noncontrolling interests in related party (813 ) (959 ) (1,027 ) (1,174 ) Net income available to Third Point Re common shareholders $ 44,349 $ 54,685 $ 74,578 $ 104,186 Earnings per share available to Third Point Re common shareholders Basic earnings per share available to Third Point Re common shareholders $ 0.44 $ 0.54 $ 0.73 $ 1.00 Diluted earnings per share available to Third Point Re common shareholders $ 0.42 $ 0.52 $ 0.71 $ 0.98 Weighted average number of common shares used in the determination of earnings per share Basic 101,405,772 101,391,145 102,283,844 104,013,871 Diluted 105,524,115 104,679,574 104,569,226 105,701,599 Three months ended December 31, September 30, June 30, March 31, ($ in thousands, except per share and share amounts) Revenues Gross premiums written $ 80,779 $ 142,573 $ 196,866 $ 197,156 Gross premiums ceded 27 (927 ) (1,425 ) — Net premiums written 80,806 141,646 195,441 197,156 Change in net unearned premium reserves 111,277 (13,463 ) (62,319 ) (60,354 ) Net premiums earned 192,083 128,183 133,122 136,802 Net investment income (loss) (35,767 ) 88,356 86,346 (40,110 ) Total revenues 156,316 216,539 219,468 96,692 Expenses Loss and loss adjustment expenses incurred, net 122,110 85,015 104,131 84,676 Acquisition costs, net 76,854 45,127 48,482 51,687 General and administrative expenses 5,482 12,354 10,243 11,288 Other expenses 2,161 347 3,173 2,706 Interest expense 2,068 2,069 2,046 2,048 Foreign exchange gains (5,162 ) (3,905 ) (8,068 ) (2,386 ) Total expenses 203,513 141,007 160,007 150,019 Income (loss) before income tax (expense) benefit (47,197 ) 75,532 59,461 (53,327 ) Income tax (expense) benefit 272 (2,484 ) (5,310 ) 1,929 Net income (loss) (46,925 ) 73,048 54,151 (51,398 ) Net (income) loss attributable to noncontrolling interests in related party 232 (967 ) (775 ) 269 Net income (loss) available to Third Point Re common shareholders $ (46,693 ) $ 72,081 $ 53,376 $ (51,129 ) Earnings (loss) per share available to Third Point Re common shareholders Basic earnings (loss) per share available to Third Point Re common shareholders $ (0.45 ) $ 0.69 $ 0.51 $ (0.49 ) Diluted earnings (loss) per share available to Third Point Re common shareholders $ (0.45 ) $ 0.68 $ 0.51 $ (0.49 ) Weighted average number of common shares used in the determination of earnings (loss) per share Basic 104,072,283 103,780,196 104,132,797 104,257,874 Diluted 104,072,283 105,795,313 105,233,921 104,257,874 |
Organization (Details)
Organization (Details) - IPO $ / shares in Units, $ in Millions | Aug. 20, 2013USD ($)$ / sharesshares |
Organization [Line Items] | |
Issuance of common shares (in shares) | shares | 24,832,484 |
Sale of stock, price per share (in dollars per share) | $ / shares | $ 12.50 |
Sale of stock, net proceeds | $ | $ 286 |
- Accounting Policies (Details)
- Accounting Policies (Details) | Dec. 31, 2017USD ($) |
Accounting Policies [Abstract] | |
Premium Deficiency Loss | $ 0 |
Significant accounting polici60
Significant accounting policies Change in the presentation of noncontrolling interests (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Change in accounting presentation | |||
Redeemable Noncontrolling Interest, Equity, Carrying Amount | $ 108,219 | $ 0 | |
Number of operating segments | segment | 1 | ||
Redeemable Noncontrolling Interest [Member] | |||
Change in accounting presentation | |||
Redeemable Noncontrolling Interest, Equity, Carrying Amount | $ 108,219 | 0 | $ 0 |
Scenario, Adjustment [Member] | |||
Change in accounting presentation | |||
Redeemable Noncontrolling Interest, Equity, Carrying Amount | $ 31,200 |
Restricted cash and cash equi61
Restricted cash and cash equivalents and investments (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Restricted Cash and Cash Equivalents and Investments Items [Line Items] | ||
Restricted cash and cash equivalents | $ 541,136 | $ 298,940 |
Restricted investments securing other reinsurance contracts | 326,429 | 427,308 |
Total restricted cash and cash equivalents and restricted investments | 867,565 | 726,248 |
Letter of Credit | ||
Restricted Cash and Cash Equivalents and Investments Items [Line Items] | ||
Restricted cash and cash equivalents | 250,487 | 231,822 |
Restricted cash securing other reinsurance contracts | ||
Restricted Cash and Cash Equivalents and Investments Items [Line Items] | ||
Restricted cash and cash equivalents | $ 290,649 | $ 67,118 |
Investments - Schedule of the s
Investments - Schedule of the separate account managed by TP LLC (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Total assets | $ 3,918,480 | $ 3,237,312 |
Liabilities and shareholders’ equity | ||
Total liabilities and shareholders' equity | 1,328,585 | 1,045,753 |
Total net investments managed by Third Point LLC | 2,589,895 | 2,191,559 |
Total investments in securities | ||
Assets | ||
Total assets | 2,995,097 | 2,619,839 |
Cash and cash equivalents | ||
Assets | ||
Total assets | 8 | 5 |
Restricted cash and cash equivalents | ||
Assets | ||
Total assets | 541,136 | 298,940 |
Due from brokers | ||
Assets | ||
Total assets | 305,093 | 284,591 |
Derivative assets, at fair value | ||
Assets | ||
Total assets | 73,372 | 27,432 |
Interest and dividends receivable | ||
Assets | ||
Total assets | 3,774 | 6,505 |
Accounts payable and accrued expenses | ||
Liabilities and shareholders’ equity | ||
Total liabilities and shareholders' equity | 5,137 | 1,374 |
Securities sold, not yet purchased | ||
Liabilities and shareholders’ equity | ||
Total liabilities and shareholders' equity | 394,278 | 92,668 |
Securities sold under an agreement to repurchase | ||
Liabilities and shareholders’ equity | ||
Total liabilities and shareholders' equity | 29,618 | 0 |
Due to brokers | ||
Liabilities and shareholders’ equity | ||
Total liabilities and shareholders' equity | 770,205 | 899,601 |
Derivative liabilities, at fair value | ||
Liabilities and shareholders’ equity | ||
Total liabilities and shareholders' equity | 14,503 | 16,050 |
Interest and dividends payable | ||
Liabilities and shareholders’ equity | ||
Total liabilities and shareholders' equity | 1,218 | 386 |
Total noncontrolling interests in related party (1) | ||
Liabilities and shareholders’ equity | ||
Total liabilities and shareholders' equity | $ 113,626 | $ 35,674 |
Investments - Schedule of the l
Investments - Schedule of the largest concentration of asset-backed securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Asset-backed securities | $ 225,499 | $ 254,852 |
Portfolio Concentration Risk | Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Asset-backed securities | $ 225,499 | $ 254,852 |
Concentration risk, percentage | 100.00% | 100.00% |
Portfolio Concentration Risk | Asset-backed securities | Re-REMIC | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Asset-backed securities | $ 160,354 | $ 44,359 |
Concentration risk, percentage | 71.10% | 17.40% |
Portfolio Concentration Risk | Asset-backed securities | Subprime RMBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Asset-backed securities | $ 0 | $ 117,152 |
Concentration risk, percentage | 0.00% | 46.00% |
Portfolio Concentration Risk | Asset-backed securities | Market place loans | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Asset-backed securities | $ 52,584 | $ 44,143 |
Concentration risk, percentage | 23.30% | 17.30% |
Portfolio Concentration Risk | Asset-backed securities | Other debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Asset-backed securities | $ 12,561 | $ 49,198 |
Concentration risk, percentage | 5.60% | 19.30% |
Investments - Schedule of inves
Investments - Schedule of investments, categorized by the level of the fair value hierarchy (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Equity securities | $ 2,221,130 | $ 1,453,221 |
Private common equity securities | 4,794 | 4,799 |
Private preferred equity securities | 57,126 | 48,834 |
Total equities | 2,283,050 | 1,506,854 |
Asset-backed securities | 225,499 | 254,852 |
Bank debts | 14,550 | 56,896 |
Corporate bonds | 77,086 | 218,280 |
U.S. Treasury securities | 249,994 | 327,016 |
Sovereign debt | 102,569 | 200,913 |
Financial Instruments, Owned, Other, at Fair Value | 5,460 | |
Total debt securities | 675,158 | 1,057,957 |
Options | 4,951 | 1,024 |
Rights and warrants | 603 | |
Financial Instruments, Owned, Real Estate, at Fair Value | 6,831 | |
Trade claims | 7,496 | 9,022 |
Total other investments | 19,881 | 10,046 |
Derivative assets, at fair value | 73,372 | 27,432 |
Total assets | 3,051,461 | 2,602,289 |
Investments in funds valued at NAV | 17,850 | 72,655 |
Total assets | 3,069,311 | 2,674,944 |
Liabilities | ||
Equity securities | 364,215 | 71,457 |
Corporate bonds | 21,699 | 17,683 |
Options | 8,364 | 3,528 |
Total securities sold, not yet purchased | 394,278 | 92,668 |
Derivative liabilities, at fair value | 14,503 | 16,050 |
Derivative liabilities (embedded) | 171 | 92 |
Total liabilities | 408,952 | 108,810 |
Quoted prices in active markets (Level 1) | ||
Assets | ||
Equity securities | 2,200,379 | 1,450,966 |
Private common equity securities | 0 | 0 |
Private preferred equity securities | 0 | 0 |
Total equities | 2,200,379 | 1,450,966 |
Asset-backed securities | 0 | 0 |
Bank debts | 0 | 0 |
Corporate bonds | 0 | 0 |
U.S. Treasury securities | 0 | 0 |
Sovereign debt | 0 | 0 |
Financial Instruments, Owned, Other, at Fair Value | 0 | |
Total debt securities | 0 | 0 |
Options | 1,973 | 343 |
Rights and warrants | 0 | |
Financial Instruments, Owned, Real Estate, at Fair Value | 0 | |
Trade claims | 0 | 0 |
Total other investments | 1,973 | 343 |
Derivative assets, at fair value | 0 | 961 |
Total assets | 2,202,352 | 1,452,270 |
Liabilities | ||
Equity securities | 364,215 | 71,457 |
Corporate bonds | 0 | 0 |
Options | 2,668 | 0 |
Total securities sold, not yet purchased | 366,883 | 71,457 |
Derivative liabilities, at fair value | 0 | 1,608 |
Derivative liabilities (embedded) | 0 | 0 |
Total liabilities | 366,883 | 73,065 |
Significant other observable inputs (Level 2) | ||
Assets | ||
Equity securities | 20,751 | 2,255 |
Private common equity securities | 0 | 0 |
Private preferred equity securities | 0 | 0 |
Total equities | 20,751 | 2,255 |
Asset-backed securities | 198,191 | 237,224 |
Bank debts | 14,550 | 48,546 |
Corporate bonds | 67,218 | 209,025 |
U.S. Treasury securities | 249,994 | 327,016 |
Sovereign debt | 102,569 | 200,913 |
Financial Instruments, Owned, Other, at Fair Value | 4,747 | |
Total debt securities | 637,269 | 1,022,724 |
Options | 2,978 | 681 |
Rights and warrants | 168 | |
Financial Instruments, Owned, Real Estate, at Fair Value | 0 | |
Trade claims | 7,496 | 9,022 |
Total other investments | 10,642 | 9,703 |
Derivative assets, at fair value | 73,372 | 26,471 |
Total assets | 742,034 | 1,061,153 |
Liabilities | ||
Equity securities | 0 | 0 |
Corporate bonds | 21,699 | 17,683 |
Options | 5,696 | 3,528 |
Total securities sold, not yet purchased | 27,395 | 21,211 |
Derivative liabilities, at fair value | 12,418 | 13,116 |
Derivative liabilities (embedded) | 0 | 0 |
Total liabilities | 39,813 | 34,327 |
Significant unobservable inputs (Level 3) | ||
Assets | ||
Equity securities | 0 | 0 |
Private common equity securities | 4,794 | 4,799 |
Private preferred equity securities | 57,126 | 48,834 |
Total equities | 61,920 | 53,633 |
Asset-backed securities | 27,308 | 17,628 |
Bank debts | 0 | 8,350 |
Corporate bonds | 9,868 | 9,255 |
U.S. Treasury securities | 0 | 0 |
Sovereign debt | 0 | 0 |
Financial Instruments, Owned, Other, at Fair Value | 713 | |
Total debt securities | 37,889 | 35,233 |
Options | 0 | 0 |
Rights and warrants | 435 | |
Financial Instruments, Owned, Real Estate, at Fair Value | 6,831 | |
Trade claims | 0 | 0 |
Total other investments | 7,266 | 0 |
Derivative assets, at fair value | 0 | 0 |
Total assets | 107,075 | 88,866 |
Liabilities | ||
Equity securities | 0 | 0 |
Corporate bonds | 0 | 0 |
Options | 0 | 0 |
Total securities sold, not yet purchased | 0 | 0 |
Derivative liabilities, at fair value | 2,085 | 1,326 |
Derivative liabilities (embedded) | 171 | 92 |
Total liabilities | $ 2,256 | $ 1,418 |
Investments - Schedule of recon
Investments - Schedule of reconciliation of the balances for all investments measured at fair value using significant unobservable inputs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Assets | ||
Asset fair value, beginning balance | $ 88,866 | $ 42,085 |
Transfers in to (out of) Level 3 | 25,836 | 17,390 |
Purchases | 86,523 | 41,966 |
Sales | (90,778) | (11,823) |
Realized and Unrealized Gains (Losses) | (3,372) | (752) |
Asset fair value, ending balance | 107,075 | 88,866 |
Liabilities | ||
Liability fair value, beginning balance | (1,418) | (6,583) |
Transfers in to (out of) Level 3 | 0 | 0 |
Purchases | 0 | 6,072 |
Sales | (44) | (1,167) |
Realized and Unrealized Gains(Losses) (1) | (794) | 260 |
Liability fair value, ending balance | (2,256) | (1,418) |
Derivative liabilities (free standing) | ||
Liabilities | ||
Liability fair value, beginning balance | (1,326) | (1,020) |
Transfers in to (out of) Level 3 | 0 | 0 |
Purchases | 0 | 0 |
Sales | (44) | (306) |
Realized and Unrealized Gains(Losses) (1) | (715) | 0 |
Liability fair value, ending balance | (2,085) | (1,326) |
Derivative liabilities (embedded) | ||
Liabilities | ||
Liability fair value, beginning balance | (92) | (5,563) |
Transfers in to (out of) Level 3 | 0 | 0 |
Purchases | 0 | 6,072 |
Sales | 0 | (861) |
Realized and Unrealized Gains(Losses) (1) | (79) | 260 |
Liability fair value, ending balance | (171) | (92) |
Private Common Equity Securities | ||
Assets | ||
Asset fair value, beginning balance | 4,799 | 4,357 |
Transfers in to (out of) Level 3 | 0 | 0 |
Purchases | 0 | 60 |
Sales | 0 | 0 |
Realized and Unrealized Gains (Losses) | (5) | 382 |
Asset fair value, ending balance | 4,794 | 4,799 |
Private preferred equity securities | ||
Assets | ||
Asset fair value, beginning balance | 48,834 | 24,178 |
Transfers in to (out of) Level 3 | 0 | 0 |
Purchases | 4,777 | 20,574 |
Sales | (2,102) | (60) |
Realized and Unrealized Gains (Losses) | 5,617 | 4,142 |
Asset fair value, ending balance | 57,126 | 48,834 |
Asset-backed securities | ||
Assets | ||
Asset fair value, beginning balance | 17,628 | 2,617 |
Transfers in to (out of) Level 3 | 25,836 | 17,390 |
Purchases | 72,758 | 5,433 |
Sales | (75,666) | (3,527) |
Realized and Unrealized Gains (Losses) | (13,248) | (4,285) |
Asset fair value, ending balance | 27,308 | 17,628 |
Bank debt | ||
Assets | ||
Asset fair value, beginning balance | 8,350 | 7,660 |
Transfers in to (out of) Level 3 | 0 | 0 |
Purchases | 4 | 3,248 |
Sales | (12,009) | (928) |
Realized and Unrealized Gains (Losses) | 3,655 | (1,630) |
Asset fair value, ending balance | 0 | 8,350 |
Corporate bonds | ||
Assets | ||
Asset fair value, beginning balance | 9,255 | 3,252 |
Transfers in to (out of) Level 3 | 0 | 0 |
Purchases | 1,577 | 12,651 |
Sales | (1,001) | (7,288) |
Realized and Unrealized Gains (Losses) | 37 | 640 |
Asset fair value, ending balance | 9,868 | 9,255 |
Other debt securities | ||
Assets | ||
Asset fair value, beginning balance | 0 | |
Transfers in to (out of) Level 3 | 0 | |
Purchases | 637 | |
Sales | 0 | |
Realized and Unrealized Gains (Losses) | 76 | |
Asset fair value, ending balance | 713 | 0 |
Sovereign debt | ||
Assets | ||
Asset fair value, beginning balance | 0 | 21 |
Transfers in to (out of) Level 3 | 0 | |
Purchases | 0 | |
Sales | (20) | |
Realized and Unrealized Gains (Losses) | (1) | |
Asset fair value, ending balance | 0 | |
Rights and warrants | ||
Assets | ||
Asset fair value, beginning balance | 0 | |
Transfers in to (out of) Level 3 | 0 | |
Purchases | 0 | |
Sales | 0 | |
Realized and Unrealized Gains (Losses) | 435 | |
Asset fair value, ending balance | 435 | 0 |
Real estate | ||
Assets | ||
Asset fair value, beginning balance | 0 | |
Transfers in to (out of) Level 3 | 0 | |
Purchases | 6,770 | |
Sales | 0 | |
Realized and Unrealized Gains (Losses) | 61 | |
Asset fair value, ending balance | $ 6,831 | $ 0 |
Investments - Schedule of unobs
Investments - Schedule of unobservable inputs (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative liabilities (embedded) | $ 171 | $ 92 |
Corporate bonds | 77,086 | 218,280 |
Significant unobservable inputs (Level 3) | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative liabilities (embedded) | 171 | 92 |
Corporate bonds | 9,868 | 9,255 |
Other debt securities | Discounted Cash Flow Valuation Technique [Member] | Significant unobservable inputs (Level 3) | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Investments, Fair Value Disclosure | $ 713 | |
Fair Value Assumptions, Capitalization Rate | 10.00% | |
Real Estate Funds [Member] | Discounted Cash Flow Valuation Technique [Member] | Significant unobservable inputs (Level 3) | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Investments, Fair Value Disclosure | $ 6,831 | |
Fair Value Inputs, Discount Rate | 9.50% | |
Real Estate Funds [Member] | Discounted Cash Flow Valuation Technique [Member] | Minimum | Significant unobservable inputs (Level 3) | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Assumptions, Capitalization Rate | 6.50% | |
Real Estate Funds [Member] | Discounted Cash Flow Valuation Technique [Member] | Maximum | Significant unobservable inputs (Level 3) | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Assumptions, Capitalization Rate | 10.00% | |
Private Equity Funds [Member] | Market Approach Valuation Technique [Member] | Significant unobservable inputs (Level 3) | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Investments, Fair Value Disclosure | $ 37,507 | $ 47,608 |
Private Equity Funds [Member] | Market Approach Valuation Technique [Member] | Minimum | Significant unobservable inputs (Level 3) | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Volatility (U) | 35.00% | 40.00% |
Time to exit | 6 months | 4 months 24 days |
Multiple | 7.8 | 2 |
Fair Value Inputs, Discount Rate | 0.00% | 5.00% |
Private Equity Funds [Member] | Market Approach Valuation Technique [Member] | Maximum | Significant unobservable inputs (Level 3) | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Volatility (U) | 65.00% | 60.00% |
Time to exit | 1 year 9 months 18 days | 2 years 9 months 18 days |
Multiple | 24.4 | 3.8 |
Fair Value Inputs, Discount Rate | 0.00% | 25.00% |
Rights and warrants | Discounted Cash Flow Valuation Technique [Member] | Significant unobservable inputs (Level 3) | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Time to exit | 5 years | |
Investments, Fair Value Disclosure | $ 433 | |
Fair Value Inputs, Discount Rate | 13.50% | |
Rights and warrants | Market Approach Valuation Technique [Member] | Minimum | Significant unobservable inputs (Level 3) | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Multiple | 3.8 | |
Rights and warrants | Market Approach Valuation Technique [Member] | Maximum | Significant unobservable inputs (Level 3) | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Multiple | 4.6 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investment [Line Items] | |||
Securities valued based on dealer quotes or other quoted market prices for similar securities | $ 234,400,000 | $ 315,300,000 | |
Percent of securities valued based on dealer quotes or other quoted market prices for similar securities | 7.60% | 11.90% | |
Security Owned and Sold Not Yet Purchased, Not Readily Marketable, Quoted Price | $ 2,100,000 | $ 2,000,000 | |
Percent of securities sold, not yet purchased, valued based on dealer quotes or other quoted market prices for similar securities | 0.50% | 1.80% | |
Private common equity securities | $ 83,400,000 | $ 63,200,000 | |
investments fair valued by the Company’s Investment Manager | 2.70% | 2.40% | |
Investments separately valued by third party valuation firms | 96.00% | ||
Investments in funds valued at NAV | $ 17,850,000 | $ 72,655,000 | |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | (9,500,000) | 1,000,000 | $ (200,000) |
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | 0 | 0 | |
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | 0 | 0 | |
Fair Value, Liabilities, Level 1 to Level 2 Transfers, Amount | 0 | 0 | |
Fair Value, Liabilities, Level 2 to Level 1 Transfers, Amount | 0 | 0 | |
Investment in Kiskadee Fund | Investment in Kiskadee Fund | |||
Investment [Line Items] | |||
Committed capital | $ 25,000,000 | ||
Proceeds from Limited Partnership Investments | 26,700,000 | 300,000 | |
Investments in funds valued at NAV | 800,000 | 27,700,000 | |
Baxter International Inc. [Member] | |||
Investment [Line Items] | |||
Fair Value, Concentration of Risk, Investments | $ 311,300,000 | ||
Concentration Risk, Percentage | 18.70% | ||
Nestle SA [Member] | |||
Investment [Line Items] | |||
Fair Value, Concentration of Risk, Investments | $ 322,100,000 | ||
Concentration Risk, Percentage | 19.40% |
Securities purchased under an68
Securities purchased under an agreement to sell (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Minimum | ||
Investment Holdings [Line Items] | ||
Maturity term for reverse repurchase agreements | 30 days | |
Maximum | ||
Investment Holdings [Line Items] | ||
Maturity term for reverse repurchase agreements | 90 days | |
Asset-backed securities | ||
Investment Holdings [Line Items] | ||
Securities sold under repurchase agreements and securities lending transactions | $ 29,618 | |
Asset-backed securities | Overnights and continuous | ||
Investment Holdings [Line Items] | ||
Securities sold under repurchase agreements and securities lending transactions | 0 | |
Asset-backed securities | Up to 30 days | ||
Investment Holdings [Line Items] | ||
Securities sold under repurchase agreements and securities lending transactions | 10,774 | |
Asset-backed securities | 30 - 90 days | ||
Investment Holdings [Line Items] | ||
Securities sold under repurchase agreements and securities lending transactions | 18,844 | |
Asset-backed securities | Greater than 90 days | ||
Investment Holdings [Line Items] | ||
Securities sold under repurchase agreements and securities lending transactions | $ 0 | |
U.S. Treasury securities | ||
Investment Holdings [Line Items] | ||
Securities sold under repurchase agreements and securities lending transactions | $ 310 | |
U.S. Treasury securities | Overnights and continuous | ||
Investment Holdings [Line Items] | ||
Securities sold under repurchase agreements and securities lending transactions | 310 | |
U.S. Treasury securities | Up to 30 days | ||
Investment Holdings [Line Items] | ||
Securities sold under repurchase agreements and securities lending transactions | 0 | |
U.S. Treasury securities | 30 - 90 days | ||
Investment Holdings [Line Items] | ||
Securities sold under repurchase agreements and securities lending transactions | 0 | |
U.S. Treasury securities | Greater than 90 days | ||
Investment Holdings [Line Items] | ||
Securities sold under repurchase agreements and securities lending transactions | $ 0 |
Due from_to brokers (Details)
Due from/to brokers (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Cash held at brokers | $ 295,467 | $ 240,205 | |
Receivable from unsettled trades (1) | 9,626 | 44,386 | |
Due from brokers | 305,093 | 284,591 | |
Borrowing from prime brokers | 759,267 | 855,576 | |
Payable from unsettled trades | 10,938 | 44,025 | |
Due to brokers | 770,205 | 899,601 | |
Collateral | 867,600 | 726,200 | |
Non US Dollar [Member] | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Cash held at brokers | $ 70,100 | 22,000 | |
Third Point LLC | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Receivable from unsettled trades (1) | $ 37,600 | $ 37,600 | |
Litigation Settlement Interest | $ 5,000 |
Derivatives - Schedule of listi
Derivatives - Schedule of listing currency, fair value and notional amounts of derivative instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative [Line Items] | |||
Derivative assets, at fair value | $ 73,372 | $ 27,432 | |
Derivative assets, notional amount | 944,973 | 1,426,239 | |
Derivative liabilities, at fair value | 14,503 | 16,050 | |
Derivative liabilities, notional amount | 864,947 | 1,310,297 | |
Realized Gain (Loss) on Derivatives | 32,582 | (9,529) | $ 21,782 |
Unrealized Gain (Loss) on Derivatives | 29,396 | (5,950) | (316) |
Credit Default Swaps - Protection Purchased | |||
Derivative [Line Items] | |||
Derivative assets, at fair value | 8,205 | 10,905 | |
Derivative assets, notional amount | 50,593 | 84,327 | |
Derivative liabilities, at fair value | 1,250 | 3,286 | |
Derivative liabilities, notional amount | 19,418 | 43,184 | |
Realized Gain (Loss) on Derivatives | (3,462) | 4,311 | 1,282 |
Unrealized Gain (Loss) on Derivatives | (978) | (6,841) | 4,839 |
Contracts for Differences - Long Contracts | Long Contracts / Purchased | |||
Derivative [Line Items] | |||
Derivative assets, at fair value | 17,298 | 1,765 | |
Derivative assets, notional amount | 163,868 | 36,879 | |
Derivative liabilities, at fair value | 2,200 | 0 | |
Derivative liabilities, notional amount | 93,200 | 67 | |
Realized Gain (Loss) on Derivatives | 58,047 | (4,123) | (6,101) |
Unrealized Gain (Loss) on Derivatives | 13,334 | 2,245 | 660 |
Contracts for Differences - Long Contracts | Short Contracts / Sold | |||
Derivative [Line Items] | |||
Derivative assets, at fair value | 4,384 | ||
Derivative assets, notional amount | 31,992 | ||
Derivative liabilities, at fair value | 776 | 1,106 | |
Derivative liabilities, notional amount | 8,483 | 11,424 | |
Realized Gain (Loss) on Derivatives | 2,608 | (253) | 8,459 |
Unrealized Gain (Loss) on Derivatives | 4,715 | (3,579) | 2,418 |
Total Return Swaps | Long Contracts / Purchased | |||
Derivative [Line Items] | |||
Derivative assets, at fair value | 15,936 | 617 | |
Derivative assets, notional amount | 96,388 | 19,140 | |
Derivative liabilities, at fair value | 73 | 1,675 | |
Derivative liabilities, notional amount | 50,858 | 26,800 | |
Realized Gain (Loss) on Derivatives | 16,863 | (6,835) | 1,410 |
Unrealized Gain (Loss) on Derivatives | 16,923 | 1,957 | (2,469) |
Total Return Swaps | Short Contracts / Sold | |||
Derivative [Line Items] | |||
Derivative assets, at fair value | 1 | 183 | |
Derivative assets, notional amount | 0 | 8,696 | |
Derivative liabilities, at fair value | 1,885 | 1,302 | |
Derivative liabilities, notional amount | 52,657 | 10,095 | |
Realized Gain (Loss) on Derivatives | (15,892) | (4,812) | (1,395) |
Unrealized Gain (Loss) on Derivatives | (765) | (1,198) | 45 |
Interest Rate Swaps | |||
Derivative [Line Items] | |||
Derivative assets, at fair value | 2,462 | ||
Derivative assets, notional amount | 195,571 | ||
Derivative liabilities, at fair value | 722 | ||
Derivative liabilities, notional amount | 59,115 | ||
Realized Gain (Loss) on Derivatives | (3,104) | 205 | 119 |
Unrealized Gain (Loss) on Derivatives | (1,740) | 1,740 | 0 |
Interest Rate Swaptions | |||
Derivative [Line Items] | |||
Derivative assets, at fair value | 539 | 5,354 | |
Derivative assets, notional amount | 64,950 | 424,816 | |
Derivative liabilities, at fair value | 70 | 1,056 | |
Derivative liabilities, notional amount | 64,482 | 417,052 | |
Realized Gain (Loss) on Derivatives | (354) | (340) | (771) |
Unrealized Gain (Loss) on Derivatives | (2,056) | 869 | (39) |
Foreign Currency Forward Contracts | |||
Derivative [Line Items] | |||
Derivative assets, at fair value | 1,764 | 653 | |
Derivative assets, notional amount | 511,937 | 47,754 | |
Derivative liabilities, at fair value | 6,164 | 2,009 | |
Derivative liabilities, notional amount | 573,498 | 214,854 | |
Realized Gain (Loss) on Derivatives | (10,470) | (2,747) | 21,429 |
Unrealized Gain (Loss) on Derivatives | (3,048) | (2,261) | (3,334) |
Foreign Currency Options - Purchased | |||
Derivative [Line Items] | |||
Derivative assets, at fair value | 4,532 | ||
Derivative assets, notional amount | 501,465 | ||
Derivative liabilities, at fair value | 1,334 | ||
Derivative liabilities, notional amount | 363,840 | ||
Foreign Currency Options - Purchased | Long Contracts / Purchased | |||
Derivative [Line Items] | |||
Realized Gain (Loss) on Derivatives | (6,716) | (2,338) | 318 |
Unrealized Gain (Loss) on Derivatives | 1,164 | (2,229) | (1,144) |
Foreign Currency Options - Purchased | Short Contracts / Sold | |||
Derivative [Line Items] | |||
Realized Gain (Loss) on Derivatives | 2,183 | 617 | 1,214 |
Unrealized Gain (Loss) on Derivatives | (80) | (103) | 316 |
Credit Default Swaps - Protection Sold | |||
Derivative [Line Items] | |||
Derivative liabilities, at fair value | 2,085 | 1,952 | |
Derivative liabilities, notional amount | 2,351 | 3,943 | |
Realized Gain (Loss) on Derivatives | 605 | (4,009) | 2,071 |
Unrealized Gain (Loss) on Derivatives | (720) | 4,149 | (2,098) |
Credit Default Swap [Member] | |||
Derivative [Line Items] | |||
Derivative assets, at fair value | 25,245 | ||
Derivative assets, notional amount | 25,245 | ||
Realized Gain (Loss) on Derivatives | 72 | 0 | 0 |
Unrealized Gain (Loss) on Derivatives | 2,000 | 0 | 0 |
Embedded derivatives in reinsurance contracts | |||
Derivative [Line Items] | |||
Derivative liabilities, at fair value | 171 | 92 | |
Derivative liabilities, notional amount | 20,000 | 20,000 | |
Realized Gain (Loss) on Derivatives | 0 | 0 | (5) |
Unrealized Gain (Loss) on Derivatives | (79) | 260 | 362 |
Derivative liabilities (embedded) | |||
Derivative [Line Items] | |||
Derivative liabilities, at fair value | 171 | 92 | |
Derivative liabilities, notional amount | 20,000 | 20,000 | |
Realized Gain (Loss) on Derivatives | 0 | 0 | 2,099 |
Unrealized Gain (Loss) on Derivatives | (79) | 260 | 362 |
Commodity Future | Long Contracts / Purchased | |||
Derivative [Line Items] | |||
Realized Gain (Loss) on Derivatives | 0 | 0 | (1,515) |
Unrealized Gain (Loss) on Derivatives | 0 | 0 | 0 |
Commodity Future | Short Contracts / Sold | |||
Derivative [Line Items] | |||
Realized Gain (Loss) on Derivatives | 0 | (281) | (580) |
Unrealized Gain (Loss) on Derivatives | 0 | (52) | 194 |
Commodity Future Options | Long Contracts / Purchased | |||
Derivative [Line Items] | |||
Realized Gain (Loss) on Derivatives | 0 | 651 | (286) |
Unrealized Gain (Loss) on Derivatives | 0 | 0 | 285 |
Commodity Future Options | Short Contracts / Sold | |||
Derivative [Line Items] | |||
Realized Gain (Loss) on Derivatives | 0 | 0 | 272 |
Unrealized Gain (Loss) on Derivatives | 0 | 0 | (269) |
Index Futures | Long Contracts / Purchased | |||
Derivative [Line Items] | |||
Realized Gain (Loss) on Derivatives | 0 | 0 | 1,144 |
Unrealized Gain (Loss) on Derivatives | 0 | 0 | 0 |
Bond Futures | Short Contracts / Sold | |||
Derivative [Line Items] | |||
Realized Gain (Loss) on Derivatives | 0 | 0 | (2,584) |
Unrealized Gain (Loss) on Derivatives | 0 | 0 | 0 |
Fixed Income Swap | Short Contracts / Sold | |||
Derivative [Line Items] | |||
Realized Gain (Loss) on Derivatives | 0 | (94) | 0 |
Unrealized Gain (Loss) on Derivatives | 0 | 0 | 0 |
Sovereign Debt Futures | Short Contracts / Sold | |||
Derivative [Line Items] | |||
Derivative assets, at fair value | 961 | ||
Derivative assets, notional amount | 107,591 | ||
Derivative liabilities, at fair value | 1,608 | ||
Derivative liabilities, notional amount | 159,923 | ||
Realized Gain (Loss) on Derivatives | (7,798) | 10,519 | 0 |
Unrealized Gain (Loss) on Derivatives | 647 | (647) | 0 |
Reinsurance contract derivatives | |||
Derivative [Line Items] | |||
Realized Gain (Loss) on Derivatives | 0 | 0 | 30 |
Unrealized Gain (Loss) on Derivatives | 0 | 0 | 0 |
Embedded derivatives in deposit contracts | |||
Derivative [Line Items] | |||
Realized Gain (Loss) on Derivatives | 0 | 0 | 2,104 |
Unrealized Gain (Loss) on Derivatives | 0 | 0 | 0 |
Treasury Futures [Member] | Short Contracts / Sold | |||
Derivative [Line Items] | |||
Realized Gain (Loss) on Derivatives | 0 | 0 | (2,734) |
Unrealized Gain (Loss) on Derivatives | $ 0 | $ 0 | $ 280 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative with Credit Risk Feature, Net | $ 3.6 | $ 6.1 |
OTC Option Asset | 3 | 0.7 |
OTC Option Liability | 5.7 | 3.5 |
Derivative Instruments with Credit-Risk-Related Contingent Features [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Cash Collateral Received | 103 | $ 48.8 |
Cash Collateral Received | $ 3.2 |
Derivatives - Schedule of gross
Derivatives - Schedule of gross and net amounts of derivative instruments that are subject to enforceable master netting arrangements or similar agreements (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Gross Amounts not Offset in the Consolidated Balance Sheet | ||
Gross Amounts of Assets Presented in the Consolidated Balance Sheet | $ 73,372 | $ 27,432 |
Gross Amounts not Offset in the Consolidated Balance Sheet | ||
Gross Amounts of Liabilities Presented in the Consolidated Balance Sheet | 14,503 | 16,050 |
Financial Assets, Derivative Assets and Collateral Received [Member] | ||
Gross Amounts not Offset in the Consolidated Balance Sheet | ||
Gross Amounts of Assets Presented in the Consolidated Balance Sheet | 76,350 | 28,112 |
Financial Instruments | 16,583 | 13,481 |
Cash Collateral Received | 3,222 | 3,580 |
Net Amount | 56,545 | 11,051 |
Financial Liabilities, Derivative Liabilities and Collateral Pledged [Member] | ||
Gross Amounts not Offset in the Consolidated Balance Sheet | ||
Gross Amounts of Liabilities Presented in the Consolidated Balance Sheet | 20,199 | 19,578 |
Financial Instruments | 16,583 | 13,481 |
Cash Collateral Received | 3,512 | 5,397 |
Net Amount | 104 | 700 |
Financial Assets, Derivative Assets and Collateral Received [Member] | Counterparty 1 | ||
Gross Amounts not Offset in the Consolidated Balance Sheet | ||
Gross Amounts of Assets Presented in the Consolidated Balance Sheet | 167 | 535 |
Financial Instruments | 167 | 535 |
Cash Collateral Received | 0 | 0 |
Net Amount | 0 | 0 |
Financial Assets, Derivative Assets and Collateral Received [Member] | Counterparty 2 | ||
Gross Amounts not Offset in the Consolidated Balance Sheet | ||
Gross Amounts of Assets Presented in the Consolidated Balance Sheet | 1,343 | 3,147 |
Financial Instruments | 706 | 607 |
Cash Collateral Received | 0 | 0 |
Net Amount | 637 | 2,540 |
Financial Assets, Derivative Assets and Collateral Received [Member] | Counterparty 3 | ||
Gross Amounts not Offset in the Consolidated Balance Sheet | ||
Gross Amounts of Assets Presented in the Consolidated Balance Sheet | 37,313 | 8,652 |
Financial Instruments | 2,705 | 4,760 |
Cash Collateral Received | 0 | 0 |
Net Amount | 34,608 | 3,892 |
Financial Assets, Derivative Assets and Collateral Received [Member] | Counterparty 4 | ||
Gross Amounts not Offset in the Consolidated Balance Sheet | ||
Gross Amounts of Assets Presented in the Consolidated Balance Sheet | 2,683 | 1,639 |
Financial Instruments | 2,683 | 1,639 |
Cash Collateral Received | 0 | 0 |
Net Amount | 0 | 0 |
Financial Assets, Derivative Assets and Collateral Received [Member] | Counterparty 5 | ||
Gross Amounts not Offset in the Consolidated Balance Sheet | ||
Gross Amounts of Assets Presented in the Consolidated Balance Sheet | 14,798 | 7,336 |
Financial Instruments | 6,647 | 3,027 |
Cash Collateral Received | 0 | 0 |
Net Amount | 8,151 | 4,309 |
Financial Assets, Derivative Assets and Collateral Received [Member] | Counterparty 6 | ||
Gross Amounts not Offset in the Consolidated Balance Sheet | ||
Gross Amounts of Assets Presented in the Consolidated Balance Sheet | 5,338 | 6,262 |
Financial Instruments | 9 | 2,599 |
Cash Collateral Received | 2,122 | 3,383 |
Net Amount | 3,207 | 280 |
Financial Assets, Derivative Assets and Collateral Received [Member] | Counterparty 7 | ||
Gross Amounts not Offset in the Consolidated Balance Sheet | ||
Gross Amounts of Assets Presented in the Consolidated Balance Sheet | 1,377 | 227 |
Financial Instruments | 0 | 0 |
Cash Collateral Received | 1,100 | 197 |
Net Amount | 277 | 30 |
Financial Assets, Derivative Assets and Collateral Received [Member] | Counterparty 8 | ||
Gross Amounts not Offset in the Consolidated Balance Sheet | ||
Gross Amounts of Assets Presented in the Consolidated Balance Sheet | 12,628 | 277 |
Financial Instruments | 2,963 | 277 |
Cash Collateral Received | 0 | 0 |
Net Amount | 9,665 | 0 |
Financial Assets, Derivative Assets and Collateral Received [Member] | Counterparty 9 | ||
Gross Amounts not Offset in the Consolidated Balance Sheet | ||
Gross Amounts of Assets Presented in the Consolidated Balance Sheet | 703 | 37 |
Financial Instruments | 703 | 37 |
Cash Collateral Received | 0 | 0 |
Net Amount | 0 | 0 |
Financial Liabilities, Derivative Liabilities and Collateral Pledged [Member] | Counterparty 1 | ||
Gross Amounts not Offset in the Consolidated Balance Sheet | ||
Gross Amounts of Liabilities Presented in the Consolidated Balance Sheet | 1,340 | 2,959 |
Financial Instruments | 167 | 535 |
Cash Collateral Received | 1,173 | 2,424 |
Net Amount | 0 | 0 |
Financial Liabilities, Derivative Liabilities and Collateral Pledged [Member] | Counterparty 2 | ||
Gross Amounts not Offset in the Consolidated Balance Sheet | ||
Gross Amounts of Liabilities Presented in the Consolidated Balance Sheet | 706 | 607 |
Financial Instruments | 706 | 607 |
Cash Collateral Received | 0 | 0 |
Net Amount | 0 | 0 |
Financial Liabilities, Derivative Liabilities and Collateral Pledged [Member] | Counterparty 3 | ||
Gross Amounts not Offset in the Consolidated Balance Sheet | ||
Gross Amounts of Liabilities Presented in the Consolidated Balance Sheet | 2,705 | 4,760 |
Financial Instruments | 2,705 | 4,760 |
Cash Collateral Received | 0 | 0 |
Net Amount | 0 | 0 |
Financial Liabilities, Derivative Liabilities and Collateral Pledged [Member] | Counterparty 4 | ||
Gross Amounts not Offset in the Consolidated Balance Sheet | ||
Gross Amounts of Liabilities Presented in the Consolidated Balance Sheet | 3,812 | 3,827 |
Financial Instruments | 2,683 | 1,639 |
Cash Collateral Received | 1,129 | 2,188 |
Net Amount | 0 | 0 |
Financial Liabilities, Derivative Liabilities and Collateral Pledged [Member] | Counterparty 5 | ||
Gross Amounts not Offset in the Consolidated Balance Sheet | ||
Gross Amounts of Liabilities Presented in the Consolidated Balance Sheet | 6,647 | 3,027 |
Financial Instruments | 6,647 | 3,027 |
Cash Collateral Received | 0 | 0 |
Net Amount | 0 | 0 |
Financial Liabilities, Derivative Liabilities and Collateral Pledged [Member] | Counterparty 6 | ||
Gross Amounts not Offset in the Consolidated Balance Sheet | ||
Gross Amounts of Liabilities Presented in the Consolidated Balance Sheet | 9 | 2,599 |
Financial Instruments | 9 | 2,599 |
Cash Collateral Received | 0 | 0 |
Net Amount | 0 | 0 |
Financial Liabilities, Derivative Liabilities and Collateral Pledged [Member] | Counterparty 8 | ||
Gross Amounts not Offset in the Consolidated Balance Sheet | ||
Gross Amounts of Liabilities Presented in the Consolidated Balance Sheet | 2,963 | 977 |
Financial Instruments | 2,963 | 277 |
Cash Collateral Received | 0 | 0 |
Net Amount | 0 | 700 |
Financial Liabilities, Derivative Liabilities and Collateral Pledged [Member] | Counterparty 9 | ||
Gross Amounts not Offset in the Consolidated Balance Sheet | ||
Gross Amounts of Liabilities Presented in the Consolidated Balance Sheet | 1,181 | 822 |
Financial Instruments | 703 | 37 |
Cash Collateral Received | 478 | 785 |
Net Amount | 0 | 0 |
Financial Liabilities, Derivative Liabilities and Collateral Pledged [Member] | Counterparty 15 | ||
Gross Amounts not Offset in the Consolidated Balance Sheet | ||
Gross Amounts of Liabilities Presented in the Consolidated Balance Sheet | 836 | |
Financial Instruments | 0 | |
Cash Collateral Received | 732 | |
Net Amount | 104 | |
Net investment losses on securities sold under an agreement to repurchase | Counterparty 3 | ||
Gross Amounts not Offset in the Consolidated Balance Sheet | ||
Gross Amounts of Liabilities Presented in the Consolidated Balance Sheet | 302 | |
Financial Instruments | 302 | |
Cash Collateral Received | 0 | |
Net Amount | 0 | |
Net investment losses on securities sold under an agreement to repurchase | Counterparty 4 | ||
Gross Amounts not Offset in the Consolidated Balance Sheet | ||
Gross Amounts of Liabilities Presented in the Consolidated Balance Sheet | 29,618 | |
Financial Instruments | 29,618 | |
Cash Collateral Received | 0 | |
Net Amount | 0 | |
Net investment losses on securities sold under an agreement to repurchase | Financial Liabilities, Derivative Liabilities and Collateral Pledged [Member] | ||
Gross Amounts not Offset in the Consolidated Balance Sheet | ||
Gross Amounts of Liabilities Presented in the Consolidated Balance Sheet | 29,618 | 302 |
Financial Instruments | 29,618 | 302 |
Cash Collateral Received | 0 | 0 |
Net Amount | $ 0 | $ 0 |
Loss and loss adjustment expe73
Loss and loss adjustment expense reserves - Schedule of loss and loss adjustment expense reserves (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Insurance Loss Reserves [Abstract] | ||
Case loss and loss adjustment expense reserves | $ 115,622 | $ 80,370 |
Incurred but not reported loss and loss adjustment expense reserves | 604,260 | 522,818 |
Deferred gains on retroactive reinsurance contracts | 688 | 1,941 |
Loss and loss adjustment expense reserves | $ 720,570 | $ 605,129 |
Loss and loss adjustment expe74
Loss and loss adjustment expense reserves - Schedule of activity in the reserve for losses and loss adjustment expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||||||
Gross reserves for loss and loss adjustment expenses, beginning of year | $ 605,129 | $ 466,047 | $ 277,362 | ||||
Less: loss and loss adjustment expenses recoverable, beginning of year | (1,113) | (1) | (125) | $ (1,113) | $ (1) | $ (125) | $ (814) |
Net reserves for loss and loss adjustment expenses, beginning of year | 719,457 | 605,128 | 465,922 | 276,548 | |||
Increase (decrease) in net loss and loss adjustment expenses incurred in respect of losses occurring in: | |||||||
Current year | 422,801 | 372,002 | 418,521 | ||||
Prior years | (51,260) | 24,976 | (2,474) | ||||
Amortization of deferred gains on retroactive reinsurance contracts | (1,483) | (1,046) | (856) | ||||
Total incurred loss and loss adjustment expenses | 370,058 | 395,932 | 415,191 | ||||
Net loss and loss adjustment expenses paid in respect of losses occurring in: | |||||||
Current year | (110,799) | (105,921) | (100,403) | ||||
Prior years | (162,447) | (133,241) | (121,665) | ||||
Total net paid losses | (273,246) | (239,162) | (222,068) | ||||
Foreign currency translation | 17,517 | (17,564) | (3,749) | ||||
Net reserves for loss and loss adjustment expenses, beginning of year | $ 719,457 | $ 605,128 | $ 465,922 | $ 276,548 | |||
Plus: loss and loss adjustment expenses recoverable, end of year | (1,113) | (1) | (125) | ||||
Gross reserves for loss and loss adjustment expenses, end of year | 720,570 | 605,129 | 466,047 | ||||
Prior Year Claims and Claims Adjustment Expense, Including Amortization of Deferred Gains | (52,700) | 23,900 | (3,300) | ||||
Impact On Underwriting Income [Member] | |||||||
Net loss and loss adjustment expenses paid in respect of losses occurring in: | |||||||
Paid Losses on Commuted Contracts | 24,800 | 1,000 | 79,100 | ||||
Prior Year Claims and Claims Adjustment Expense, Increase (Decrease) in Net Underwriting Loss | (4,600) | 12,800 | 7,500 | ||||
Ratio Split [Member] | |||||||
Increase (decrease) in net loss and loss adjustment expenses incurred in respect of losses occurring in: | |||||||
Prior years | (22,300) | 10,500 | (5,400) | ||||
Net loss and loss adjustment expenses paid in respect of losses occurring in: | |||||||
Change In Policy Acquisition Costs | 19,800 | 2,000 | 13,200 | ||||
Prior Year Claims and Claims Adjustment Expense, Increase (Decrease) in Net Underwriting Loss | (2,500) | 12,500 | 7,800 | ||||
Premium Adjustments on Certain Contracts [Member] | |||||||
Increase (decrease) in net loss and loss adjustment expenses incurred in respect of losses occurring in: | |||||||
Prior years | (30,400) | 13,400 | 2,100 | ||||
Net loss and loss adjustment expenses paid in respect of losses occurring in: | |||||||
Change in Accounting Estimate, Financial Impact | (52,100) | 19,800 | |||||
Change In Policy Acquisition Costs | (21,700) | 6,400 | |||||
Prior Year Claims and Claims Adjustment Expense, Increase (Decrease) in Premium Estimates | (50,000) | 19,500 | |||||
Prior Year Claims and Claims Adjustment Expense, Increase (Decrease) in Net Underwriting Loss | $ (2,100) | $ 300 | $ (300) |
Loss and loss adjustment expe75
Loss and loss adjustment expense reserves Loss and loss adjustment expense reserves (claims development triangles) (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Claims Development [Line Items] | ||||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | $ 718,769,000 | |||||
Property | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 218,794,000 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 24,210,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 182,525,000 | |||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | 36,269,000 | |||||
Property | Accident Year 2012 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 9,472,000 | $ 9,416,000 | $ 9,353,000 | $ 9,375,000 | $ 8,672,000 | $ 10,917,000 |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 31,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 9,400,000 | 9,352,000 | 9,186,000 | 9,075,000 | 8,381,000 | 4,656,000 |
Property | Accident Year 2013 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 25,785,000 | 25,882,000 | 25,766,000 | 24,980,000 | 27,765,000 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 101,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 25,406,000 | 25,167,000 | 24,023,000 | 22,229,000 | 14,635,000 | |
Property | Accident Year 2014 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 44,627,000 | 41,336,000 | 40,920,000 | 40,256,000 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 640,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 42,775,000 | 38,448,000 | 34,381,000 | 19,420,000 | ||
Property | Accident Year 2015 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 54,635,000 | 52,533,000 | 50,330,000 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 3,706,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 48,360,000 | 43,382,000 | 22,706,000 | |||
Property | Accident Year 2016 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 43,038,000 | 45,415,000 | ||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 7,579,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 31,871,000 | 21,593,000 | ||||
Property | Accident Year 2017 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 41,237,000 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 12,153,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 24,713,000 | |||||
Workers’ Compensation | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 197,522,000 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 62,393,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 96,148,000 | |||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | 101,374,000 | |||||
Workers’ Compensation | Accident Year 2012 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 5,720,000 | 5,715,000 | 5,596,000 | 5,066,000 | 4,534,000 | 4,037,000 |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 78,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 4,796,000 | 4,969,000 | 4,280,000 | 3,017,000 | 624,000 | 93,000 |
Workers’ Compensation | Accident Year 2013 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 33,252,000 | 33,449,000 | 33,365,000 | 28,616,000 | 27,449,000 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 2,107,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 26,956,000 | 22,826,000 | 16,840,000 | 9,142,000 | 2,587,000 | |
Workers’ Compensation | Accident Year 2014 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 43,470,000 | 47,200,000 | 46,568,000 | 40,247,000 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 6,698,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 29,573,000 | 24,280,000 | 15,947,000 | 4,073,000 | ||
Workers’ Compensation | Accident Year 2015 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 34,800,000 | 37,138,000 | 35,749,000 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 10,077,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 17,001,000 | 10,755,000 | 2,669,000 | |||
Workers’ Compensation | Accident Year 2016 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 39,205,000 | 40,433,000 | ||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 15,461,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 13,236,000 | 3,985,000 | ||||
Workers’ Compensation | Accident Year 2017 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 41,075,000 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 27,972,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 4,586,000 | |||||
Auto | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 358,687,000 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 21,685,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 320,706,000 | |||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | 37,981,000 | |||||
Auto | Accident Year 2012 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 11,333,000 | 11,433,000 | 11,534,000 | 11,777,000 | 12,264,000 | 13,247,000 |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 10,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 11,318,000 | 11,382,000 | 11,450,000 | 11,387,000 | 9,989,000 | 5,619,000 |
Auto | Accident Year 2013 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 19,482,000 | 19,338,000 | 19,472,000 | 19,990,000 | 20,830,000 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 61,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 19,363,000 | 19,066,000 | 18,686,000 | 17,244,000 | 8,673,000 | |
Auto | Accident Year 2014 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 103,661,000 | 103,568,000 | 103,473,000 | 104,896,000 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 347,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 102,868,000 | 101,626,000 | 97,651,000 | 45,766,000 | ||
Auto | Accident Year 2015 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 89,550,000 | 88,705,000 | 82,677,000 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 1,109,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 86,100,000 | 80,765,000 | 42,451,000 | |||
Auto | Accident Year 2016 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 85,903,000 | 77,785,000 | ||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 3,226,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 77,511,000 | 38,059,000 | ||||
Auto | Accident Year 2017 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 48,758,000 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 16,932,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 23,546,000 | |||||
Other Casualty | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 160,600,000 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 121,396,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 18,862,000 | |||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | 141,738,000 | |||||
Other Casualty | Accident Year 2012 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 0 | 0 | 0 | 0 | 0 | 0 |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 0 | |||||
Cumulative net losses and loss adjustment expenses paid | 0 | 0 | 0 | 0 | 0 | 0 |
Other Casualty | Accident Year 2013 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 0 | 0 | 0 | 0 | 0 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 0 | |||||
Cumulative net losses and loss adjustment expenses paid | 0 | 0 | 0 | 0 | 0 | |
Other Casualty | Accident Year 2014 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 4,903,000 | 7,316,000 | 7,519,000 | 5,480,000 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 1,644,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 2,226,000 | 1,390,000 | 340,000 | 16,000 | ||
Other Casualty | Accident Year 2015 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 33,396,000 | 48,315,000 | 45,558,000 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 16,381,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 9,053,000 | 3,612,000 | 310,000 | |||
Other Casualty | Accident Year 2016 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 52,118,000 | 63,082,000 | ||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 36,975,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 6,165,000 | 621,000 | ||||
Other Casualty | Accident Year 2017 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 70,183,000 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 66,396,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 1,418,000 | |||||
Credit & Financial Lines | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 31,558,000 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 21,153,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 6,867,000 | |||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | 24,691,000 | |||||
Credit & Financial Lines | Accident Year 2012 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 0 | 0 | 0 | 0 | 0 | 0 |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 0 | |||||
Cumulative net losses and loss adjustment expenses paid | 0 | 0 | 0 | 0 | 0 | 0 |
Credit & Financial Lines | Accident Year 2013 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 99,000 | 107,000 | 113,000 | 408,000 | 364,000 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 22,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 78,000 | 74,000 | 66,000 | 11,000 | 0 | |
Credit & Financial Lines | Accident Year 2014 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 2,204,000 | 2,427,000 | 2,653,000 | 5,846,000 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 859,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 1,318,000 | 1,038,000 | 784,000 | 42,000 | ||
Credit & Financial Lines | Accident Year 2015 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 4,758,000 | 5,044,000 | 5,245,000 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 1,834,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 2,045,000 | 1,128,000 | 402,000 | |||
Credit & Financial Lines | Accident Year 2016 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 10,729,000 | 10,743,000 | ||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 6,478,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 2,326,000 | 1,013,000 | ||||
Credit & Financial Lines | Accident Year 2017 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 13,768,000 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 11,960,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 1,100,000 | |||||
Multi-line | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 370,650,000 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 123,657,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 229,185,000 | |||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | 141,465,000 | |||||
Multi-line | Accident Year 2012 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 0 | 0 | 0 | 0 | 0 | 0 |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 0 | |||||
Cumulative net losses and loss adjustment expenses paid | 0 | 0 | 0 | 0 | 0 | 0 |
Multi-line | Accident Year 2013 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 4,564,000 | 4,564,000 | 4,564,000 | 4,272,000 | 23,282,000 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 0 | |||||
Cumulative net losses and loss adjustment expenses paid | 4,563,000 | 4,563,000 | 4,563,000 | 1,243,000 | 0 | |
Multi-line | Accident Year 2014 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 35,489,000 | 37,738,000 | 34,570,000 | 41,188,000 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 16,338,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 18,969,000 | 19,476,000 | 14,289,000 | 1,245,000 | ||
Multi-line | Accident Year 2015 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 107,837,000 | 100,023,000 | 86,605,000 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 30,203,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 74,646,000 | 58,792,000 | 30,914,000 | |||
Multi-line | Accident Year 2016 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 121,723,000 | 132,050,000 | ||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 37,665,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 76,791,000 | 39,413,000 | ||||
Multi-line | Accident Year 2017 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 101,037,000 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 39,451,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 54,216,000 | |||||
Other Specialty | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 77,272,000 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 4,031,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 73,242,000 | |||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | 4,030,000 | |||||
Other Specialty | Accident Year 2012 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 50,104,000 | 50,065,000 | 50,055,000 | 50,055,000 | 49,942,000 | 52,105,000 |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 1,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 50,103,000 | 50,067,000 | 50,025,000 | 50,024,000 | 48,455,000 | $ 2,666,000 |
Other Specialty | Accident Year 2013 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 23,135,000 | 23,138,000 | 23,450,000 | 24,274,000 | 2,308,000 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 1,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 23,135,000 | 23,134,000 | 23,138,000 | 22,232,000 | 0 | |
Other Specialty | Accident Year 2014 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 0 | 0 | 0 | 0 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 0 | |||||
Cumulative net losses and loss adjustment expenses paid | 0 | 0 | 0 | 0 | ||
Other Specialty | Accident Year 2015 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 0 | 0 | 0 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 0 | |||||
Cumulative net losses and loss adjustment expenses paid | 0 | 0 | 0 | |||
Other Specialty | Accident Year 2016 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 0 | 0 | ||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 0 | |||||
Cumulative net losses and loss adjustment expenses paid | 0 | 0 | ||||
Other Specialty | Accident Year 2017 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 4,033,000 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 4,029,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 4,000 | |||||
Contracts incepting in 2012 | Retroactive Reinsurance Contract [Member] | ||||||
Claims Development [Line Items] | ||||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | 0 | |||||
Contracts incepting in 2013 | Retroactive Reinsurance Contract [Member] | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 16,509,000 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 0 | |||||
Cumulative net losses and loss adjustment expenses paid | 16,509,000 | |||||
Short Duration Insurance Contracts, Liability For Unpaid Claims And Allocated Claims Adjustment Expense, Net, Separately Presented | 0 | |||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net, Not Separately Presented | 12,402,000 | |||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | 12,402,000 | |||||
Contracts incepting in 2013 | Retroactive Reinsurance Contract [Member] | Accident Year 2008 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 0 | 0 | 0 | 0 | 0 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 0 | |||||
Cumulative net losses and loss adjustment expenses paid | 0 | 0 | 0 | 0 | 0 | |
Contracts incepting in 2013 | Retroactive Reinsurance Contract [Member] | Accident Year 2009 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 0 | 0 | 0 | 0 | 0 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 0 | |||||
Cumulative net losses and loss adjustment expenses paid | 0 | 0 | 0 | 0 | 0 | |
Contracts incepting in 2013 | Retroactive Reinsurance Contract [Member] | Accident Year 2010 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 704,000 | 704,000 | 704,000 | 704,000 | 914,000 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 0 | |||||
Cumulative net losses and loss adjustment expenses paid | 704,000 | 704,000 | 704,000 | 279,000 | 0 | |
Contracts incepting in 2013 | Retroactive Reinsurance Contract [Member] | Accident Year 2011 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 4,173,000 | 4,173,000 | 4,173,000 | 4,173,000 | 5,419,000 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 0 | |||||
Cumulative net losses and loss adjustment expenses paid | 4,173,000 | 4,173,000 | 4,173,000 | 1,654,000 | 0 | |
Contracts incepting in 2013 | Retroactive Reinsurance Contract [Member] | Accident Year 2012 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 7,853,000 | 7,853,000 | 7,853,000 | 7,853,000 | 10,197,000 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 0 | |||||
Cumulative net losses and loss adjustment expenses paid | 7,853,000 | 7,853,000 | 7,853,000 | 3,113,000 | 0 | |
Contracts incepting in 2013 | Retroactive Reinsurance Contract [Member] | Accident Year 2013 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 3,779,000 | 3,779,000 | 3,779,000 | 3,779,000 | 4,908,000 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 0 | |||||
Cumulative net losses and loss adjustment expenses paid | 3,779,000 | 3,779,000 | 3,779,000 | 1,498,000 | 0 | |
Contracts incepting in 2013 | Retroactive Reinsurance Contract [Member] | Accident Year 2014 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 0 | 0 | 0 | 0 | 0 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 0 | |||||
Cumulative net losses and loss adjustment expenses paid | 0 | 0 | 0 | 0 | 0 | |
Contracts incepting in 2013 | Retroactive Reinsurance Contract [Member] | Accident Year 2015 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 0 | 0 | 0 | 0 | 0 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 0 | |||||
Cumulative net losses and loss adjustment expenses paid | 0 | 0 | 0 | 0 | 0 | |
Contracts incepting in 2013 | Retroactive Reinsurance Contract [Member] | Accident Year 2016 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 0 | 0 | 0 | 0 | 0 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 0 | |||||
Cumulative net losses and loss adjustment expenses paid | 0 | 0 | 0 | 0 | 0 | |
Contracts incepting in 2013 | Retroactive Reinsurance Contract [Member] | Accident Year 2017 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 0 | 0 | 0 | 0 | 0 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 0 | |||||
Cumulative net losses and loss adjustment expenses paid | 0 | 0 | 0 | 0 | $ 0 | |
Contracts incepting in 2014 | Retroactive Reinsurance Contract [Member] | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 38,124,000 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 38,124,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 0 | |||||
Short Duration Insurance Contracts, Liability For Unpaid Claims And Allocated Claims Adjustment Expense, Net, Separately Presented | 38,124,000 | |||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net, Not Separately Presented | 0 | |||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | 38,124,000 | |||||
Contracts incepting in 2014 | Retroactive Reinsurance Contract [Member] | Accident Year 2008 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 0 | 0 | 0 | 281,000 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 0 | |||||
Cumulative net losses and loss adjustment expenses paid | 0 | 0 | 0 | 0 | ||
Contracts incepting in 2014 | Retroactive Reinsurance Contract [Member] | Accident Year 2009 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 0 | 0 | 0 | 382,000 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 0 | |||||
Cumulative net losses and loss adjustment expenses paid | 0 | 0 | 0 | 0 | ||
Contracts incepting in 2014 | Retroactive Reinsurance Contract [Member] | Accident Year 2010 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 0 | 0 | 0 | 444,000 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 0 | |||||
Cumulative net losses and loss adjustment expenses paid | 0 | 0 | 0 | 0 | ||
Contracts incepting in 2014 | Retroactive Reinsurance Contract [Member] | Accident Year 2011 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 3,231,000 | 3,025,000 | 3,411,000 | 4,184,000 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 3,231,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 0 | 0 | 0 | 0 | ||
Contracts incepting in 2014 | Retroactive Reinsurance Contract [Member] | Accident Year 2012 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 10,094,000 | 9,451,000 | 10,658,000 | 12,002,000 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 10,094,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 0 | 0 | 0 | 0 | ||
Contracts incepting in 2014 | Retroactive Reinsurance Contract [Member] | Accident Year 2013 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 15,831,000 | 14,822,000 | 16,715,000 | 18,640,000 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 15,831,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 0 | 0 | 0 | 0 | ||
Contracts incepting in 2014 | Retroactive Reinsurance Contract [Member] | Accident Year 2014 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 8,968,000 | 8,396,000 | 9,469,000 | 10,548,000 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 8,968,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 0 | 0 | 0 | 0 | ||
Contracts incepting in 2014 | Retroactive Reinsurance Contract [Member] | Accident Year 2015 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 0 | 0 | 0 | 0 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 0 | |||||
Cumulative net losses and loss adjustment expenses paid | 0 | 0 | 0 | 0 | ||
Contracts incepting in 2014 | Retroactive Reinsurance Contract [Member] | Accident Year 2016 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 0 | 0 | 0 | 0 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 0 | |||||
Cumulative net losses and loss adjustment expenses paid | 0 | 0 | 0 | 0 | ||
Contracts incepting in 2014 | Retroactive Reinsurance Contract [Member] | Accident Year 2017 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 0 | 0 | 0 | 0 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 0 | |||||
Cumulative net losses and loss adjustment expenses paid | 0 | 0 | 0 | $ 0 | ||
Contracts incepting in 2015 | Retroactive Reinsurance Contract [Member] | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 75,070,000 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 75,070,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 0 | |||||
Short Duration Insurance Contracts, Liability For Unpaid Claims And Allocated Claims Adjustment Expense, Net, Separately Presented | 75,070,000 | |||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net, Not Separately Presented | 328,000 | |||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | 75,398,000 | |||||
Contracts incepting in 2015 | Retroactive Reinsurance Contract [Member] | Accident Year 2008 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 1,385,000 | 2,010,000 | 2,010,000 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 1,385,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 0 | 0 | 0 | |||
Contracts incepting in 2015 | Retroactive Reinsurance Contract [Member] | Accident Year 2009 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 1,729,000 | 2,510,000 | 2,510,000 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 1,729,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 0 | 0 | 0 | |||
Contracts incepting in 2015 | Retroactive Reinsurance Contract [Member] | Accident Year 2010 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 19,100,000 | 24,750,000 | 24,750,000 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 19,100,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 0 | 0 | 0 | |||
Contracts incepting in 2015 | Retroactive Reinsurance Contract [Member] | Accident Year 2011 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 16,350,000 | 21,238,000 | 21,238,000 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 16,350,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 0 | 0 | 0 | |||
Contracts incepting in 2015 | Retroactive Reinsurance Contract [Member] | Accident Year 2012 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 12,223,000 | 15,917,000 | 15,917,000 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 12,223,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 0 | 0 | 0 | |||
Contracts incepting in 2015 | Retroactive Reinsurance Contract [Member] | Accident Year 2013 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 10,400,000 | 13,616,000 | 13,616,000 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 10,400,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 0 | 0 | 0 | |||
Contracts incepting in 2015 | Retroactive Reinsurance Contract [Member] | Accident Year 2014 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 12,095,000 | 15,802,000 | 15,802,000 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 12,095,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 0 | 0 | 0 | |||
Contracts incepting in 2015 | Retroactive Reinsurance Contract [Member] | Accident Year 2015 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 1,788,000 | 2,596,000 | 2,596,000 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 1,788,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 0 | 0 | 0 | |||
Contracts incepting in 2015 | Retroactive Reinsurance Contract [Member] | Accident Year 2016 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 0 | 0 | 0 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 0 | |||||
Cumulative net losses and loss adjustment expenses paid | 0 | 0 | 0 | |||
Contracts incepting in 2015 | Retroactive Reinsurance Contract [Member] | Accident Year 2017 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 0 | 0 | 0 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 0 | |||||
Cumulative net losses and loss adjustment expenses paid | 0 | $ 0 | $ 0 | |||
Contracts incepting in 2016 | Retroactive Reinsurance Contract [Member] | ||||||
Claims Development [Line Items] | ||||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | 0 | |||||
Contracts incepting in 2017 | Retroactive Reinsurance Contract [Member] | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 105,297,000 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 105,297,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 0 | |||||
Short Duration Insurance Contracts, Liability For Unpaid Claims And Allocated Claims Adjustment Expense, Net, Separately Presented | 105,297,000 | |||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net, Not Separately Presented | 0 | |||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | 105,297,000 | |||||
Contracts incepting in 2017 | Retroactive Reinsurance Contract [Member] | Accident Year 2008 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 183,000 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 183,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 0 | |||||
Contracts incepting in 2017 | Retroactive Reinsurance Contract [Member] | Accident Year 2009 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 317,000 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 317,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 0 | |||||
Contracts incepting in 2017 | Retroactive Reinsurance Contract [Member] | Accident Year 2010 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 445,000 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 445,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 0 | |||||
Contracts incepting in 2017 | Retroactive Reinsurance Contract [Member] | Accident Year 2011 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 1,678,000 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 1,678,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 0 | |||||
Contracts incepting in 2017 | Retroactive Reinsurance Contract [Member] | Accident Year 2012 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 2,227,000 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 2,227,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 0 | |||||
Contracts incepting in 2017 | Retroactive Reinsurance Contract [Member] | Accident Year 2013 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 3,425,000 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 3,425,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 0 | |||||
Contracts incepting in 2017 | Retroactive Reinsurance Contract [Member] | Accident Year 2014 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 9,788,000 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 9,788,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 0 | |||||
Contracts incepting in 2017 | Retroactive Reinsurance Contract [Member] | Accident Year 2015 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 12,865,000 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 12,865,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 0 | |||||
Contracts incepting in 2017 | Retroactive Reinsurance Contract [Member] | Accident Year 2016 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 24,375,000 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 24,375,000 | |||||
Cumulative net losses and loss adjustment expenses paid | 0 | |||||
Contracts incepting in 2017 | Retroactive Reinsurance Contract [Member] | Accident Year 2017 | ||||||
Claims Development [Line Items] | ||||||
Loss and loss adjustment expenses incurred, net | 49,994,000 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 49,994,000 | |||||
Cumulative net losses and loss adjustment expenses paid | $ 0 |
Loss and loss adjustment expe76
Loss and loss adjustment expense reserves Loss and loss adjustment expense reserves (reconciliation of loss development information to reserves for loss and loss adjustment expense reserves) (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | $ 718,769,000 | |||
Loss and loss adjustment expenses recoverable | 1,113,000 | $ 1,000 | $ 125,000 | $ 814,000 |
Deferred gains on retroactive reinsurance contracts | 688,000 | 1,941,000 | ||
Liability for Claims and Claims Adjustment Expense | 720,570,000 | $ 605,129,000 | $ 466,047,000 | $ 277,362,000 |
Property | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | 36,269,000 | |||
Workers’ Compensation | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | 101,374,000 | |||
Auto | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | 37,981,000 | |||
Credit & Financial Lines | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | 24,691,000 | |||
Multi-line | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | 141,465,000 | |||
Other Specialty | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | 4,030,000 | |||
Contracts incepting in 2013 | Retroactive Reinsurance Contract [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | 12,402,000 | |||
Contracts incepting in 2017 | Retroactive Reinsurance Contract [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | $ 105,297,000 |
Loss and loss adjustment expe77
Loss and loss adjustment expense reserves - Schedule of payout percentage on losses (Details) | Dec. 31, 2017 |
Property | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 50.20% |
Year 2 | 32.80% |
Year 3 | 8.10% |
Year 4 | 5.10% |
Year 5 | 1.30% |
Year 6 | 0.50% |
Workers’ Compensation | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 8.00% |
Year 2 | 20.60% |
Year 3 | 25.50% |
Year 4 | 17.40% |
Year 5 | 12.20% |
Year 6 | (3.00%) |
Auto | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 46.40% |
Year 2 | 44.30% |
Year 3 | 7.40% |
Year 4 | 1.20% |
Year 5 | 0.50% |
Year 6 | (0.60%) |
Other Casualty | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 1.10% |
Year 2 | 9.00% |
Year 3 | 18.90% |
Year 4 | 17.00% |
Credit & Financial Lines | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 5.60% |
Year 2 | 18.00% |
Year 3 | 28.80% |
Year 4 | 10.60% |
Year 5 | 3.90% |
Multi-line | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 23.60% |
Year 2 | 30.10% |
Year 3 | 34.00% |
Year 4 | (0.70%) |
Year 5 | 0.00% |
Other Specialty | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 1.80% |
Year 2 | 93.70% |
Year 3 | 3.50% |
Year 4 | 0.00% |
Year 5 | 0.00% |
Year 6 | 0.10% |
Contracts incepting in 2013 | Retroactive reinsurance contracts | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 4.30% |
Year 2 | 23.50% |
Year 3 | 31.20% |
Year 4 | 4.60% |
Year 5 | 3.40% |
Contracts incepting in 2014 | Retroactive reinsurance contracts | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 0.00% |
Year 2 | 0.00% |
Year 3 | 0.00% |
Year 4 | 0.00% |
Contracts incepting in 2015 | Retroactive reinsurance contracts | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 0.00% |
Year 2 | 0.00% |
Year 3 | 0.00% |
Contracts incepting in 2017 | Retroactive reinsurance contracts | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 0.00% |
Management, performance and f78
Management, performance and founders fees (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 21, 2016 | |
Related Party Transaction [Line Items] | ||||
Investment fee expenses | $ 130,711 | $ 59,707 | $ 43,277 | |
Management and performance fees | ||||
Related Party Transaction [Line Items] | ||||
Investment fee expenses | $ 130,711 | 59,707 | 43,277 | |
TP LLC and Various Third Point Re Founders | ||||
Related Party Transaction [Line Items] | ||||
Annual investment management fee | 1.50% | 2.00% | ||
Third Point LLC | Management and performance fees | ||||
Related Party Transaction [Line Items] | ||||
Investment fee expenses | $ 36,733 | 7,110 | 6,362 | |
Founders | Management and performance fees | ||||
Related Party Transaction [Line Items] | ||||
Investment fee expenses | $ 0 | 35,321 | 36,053 | |
Third Point Advisors LLC | ||||
Related Party Transaction [Line Items] | ||||
Annual investment performance fee | 20.00% | |||
Third Point Advisors LLC | Management and performance fees | ||||
Related Party Transaction [Line Items] | ||||
Investment fee expenses | $ 93,978 | 17,276 | 7,061 | |
Performance fees - loss carryforward | Management and performance fees | ||||
Related Party Transaction [Line Items] | ||||
Investment fee expenses | $ 0 | $ 0 | $ (6,199) |
Deposit contracts (Details)
Deposit contracts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Deposit Contracts, Liabilities [Roll Forward] | |||
Balance, beginning of year | $ 104,905 | $ 83,955 | $ 145,430 |
Consideration received | 22,658 | 22,463 | 21,246 |
Consideration receivable | 2,080 | 0 | 0 |
Net investment expense (income) allocation | 2,800 | (164) | 2,207 |
Payments | (3,545) | (915) | (84,928) |
Foreign currency translation | 235 | (434) | 0 |
Balance, end of year | $ 129,133 | $ 104,905 | $ 83,955 |
Senior Notes payable and lett80
Senior Notes payable and letter of credit facilities Senior Notes payable and letter of credit facilities (Details) - Unsecured Debt - 7% Senior Unsecured Notes - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Debt issued | $ 115 | |
Interest rate | 7.00% | |
Debt Issuance Costs, Net | $ 1.3 | |
Debt instrument, fair value disclosure | $ 116.7 | $ 103.4 |
Senior Notes payable and lett81
Senior Notes payable and letter of credit facilities - Letters of credit (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Line of Credit Facility [Line Items] | ||
Collateral | $ 867,600,000 | $ 726,200,000 |
Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Facility (1) | 425,000,000 | |
Utilized | 250,487,000 | |
Collateral | 250,487,000 | |
Letter of Credit | Citibank | ||
Line of Credit Facility [Line Items] | ||
Facility (1) | 300,000,000 | |
Utilized | 163,262,000 | |
Collateral | 163,262,000 | |
Letter of Credit | Lloyds Bank | ||
Line of Credit Facility [Line Items] | ||
Facility (1) | 125,000,000 | |
Utilized | 87,225,000 | |
Collateral | 87,225,000 | |
Letter of Credit | BNP Paribas (1) | ||
Line of Credit Facility [Line Items] | ||
Extinguishment of Debt, Amount | 50,000,000 | |
Letter of Credit | J.P. Morgan | ||
Line of Credit Facility [Line Items] | ||
Extinguishment of Debt, Amount | $ 50,000,000 |
Net investment income (Details)
Net investment income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Cost-method Investments [Line Items] | |||||||||||
Net realized gains on investments and investment derivatives | $ 225,016 | $ 33,505 | $ 14,398 | ||||||||
Net unrealized gains (losses) on investments and investment derivatives | 255,194 | 70,290 | (34,181) | ||||||||
Net gains (losses) on foreign currencies | 6,441 | (2,557) | 933 | ||||||||
Dividend and interest income | 65,896 | 77,160 | 45,103 | ||||||||
Dividends paid on securities sold, not yet purchased | (5,724) | (1,977) | (1,279) | ||||||||
Other expenses | (24,073) | (19,422) | (11,305) | ||||||||
Net gain (loss) on investment in Kiskadee Fund | (86) | 1,533 | 1,465 | ||||||||
Net investment income related to Catastrophe Reinsurer and Catastrophe Fund | 0 | 0 | 69 | ||||||||
Net investment income before management and performance fees to related parties | 522,664 | 158,532 | 15,203 | ||||||||
Management and performance fees to related parties | (130,711) | (59,707) | (43,277) | ||||||||
Net investment income (loss) | $ 67,150 | $ 88,968 | $ 107,325 | $ 128,510 | $ (35,767) | $ 88,356 | $ 86,346 | $ (40,110) | 391,953 | 98,825 | (28,074) |
Other Investment Expense | (5,103) | (6,068) | (5,486) | ||||||||
Net Investment Income from Derivatives | 61,978 | (15,479) | 21,437 | ||||||||
Net Investment Income From Cash, Including Foreign Exchange Gain Loss | (1,454) | (10,173) | 120 | ||||||||
Net Investments Income From Securities Sold but Not Yet Purchased | (87) | (1,970) | (2,373) | ||||||||
Withholding Taxes Transferred to Income Tax Expense | 2,573 | 6,675 | 4,828 | ||||||||
Other Investment Income and Other | 57,907 | (27,015) | 18,595 | ||||||||
Assets | |||||||||||
Schedule of Cost-method Investments [Line Items] | |||||||||||
Net Investment Income From Invested Assets | 505,032 | 190,577 | (36,478) | ||||||||
Assets | Options | |||||||||||
Schedule of Cost-method Investments [Line Items] | |||||||||||
Gross Investment Income, Operating | (33,510) | (28,426) | (29,062) | ||||||||
Assets | Rights and warrants | |||||||||||
Schedule of Cost-method Investments [Line Items] | |||||||||||
Gross Investment Income, Operating | 169 | (370) | (1,679) | ||||||||
Assets | Trade claims | |||||||||||
Schedule of Cost-method Investments [Line Items] | |||||||||||
Gross Investment Income, Operating | (89) | 116 | 249 | ||||||||
Assets | Real estate | |||||||||||
Schedule of Cost-method Investments [Line Items] | |||||||||||
Gross Investment Income, Operating | 502 | 0 | 0 | ||||||||
Assets | Total other investments | |||||||||||
Schedule of Cost-method Investments [Line Items] | |||||||||||
Gross Investment Income, Operating | (32,928) | (28,680) | (30,492) | ||||||||
Assets | Mutual Fund | |||||||||||
Schedule of Cost-method Investments [Line Items] | |||||||||||
Gross Investment Income, Operating | 10,309 | 1,330 | (5,424) | ||||||||
Assets | Equity securities | |||||||||||
Schedule of Cost-method Investments [Line Items] | |||||||||||
Gross Investment Income, Operating | 467,527 | 78,955 | (37,689) | ||||||||
Assets | Private common equity securities | |||||||||||
Schedule of Cost-method Investments [Line Items] | |||||||||||
Gross Investment Income, Operating | (6) | 333 | (3,511) | ||||||||
Assets | Private preferred equity securities | |||||||||||
Schedule of Cost-method Investments [Line Items] | |||||||||||
Gross Investment Income, Operating | 5,764 | 4,146 | 5,187 | ||||||||
Assets | Equity securities | |||||||||||
Schedule of Cost-method Investments [Line Items] | |||||||||||
Gross Investment Income, Operating | 473,285 | 83,434 | (36,013) | ||||||||
Assets | Asset-backed securities | |||||||||||
Schedule of Cost-method Investments [Line Items] | |||||||||||
Gross Investment Income, Operating | 12,571 | 1,166 | 61,730 | ||||||||
Assets | Bank debt | |||||||||||
Schedule of Cost-method Investments [Line Items] | |||||||||||
Gross Investment Income, Operating | 8,868 | 6,887 | 184 | ||||||||
Assets | Corporate bonds | |||||||||||
Schedule of Cost-method Investments [Line Items] | |||||||||||
Gross Investment Income, Operating | 6,462 | 115,568 | (45,590) | ||||||||
Assets | Municipal Bonds [Member] | |||||||||||
Schedule of Cost-method Investments [Line Items] | |||||||||||
Gross Investment Income, Operating | 0 | 0 | (139) | ||||||||
Assets | U.S. Treasury securities | |||||||||||
Schedule of Cost-method Investments [Line Items] | |||||||||||
Gross Investment Income, Operating | 2,366 | 2,605 | (1,876) | ||||||||
Assets | Sovereign debt | |||||||||||
Schedule of Cost-method Investments [Line Items] | |||||||||||
Gross Investment Income, Operating | 21,553 | 8,267 | 21,142 | ||||||||
Assets | Other debt securities | |||||||||||
Schedule of Cost-method Investments [Line Items] | |||||||||||
Gross Investment Income, Operating | 2,546 | 0 | 0 | ||||||||
Assets | Total debt securities | |||||||||||
Schedule of Cost-method Investments [Line Items] | |||||||||||
Gross Investment Income, Operating | 54,366 | 134,493 | 35,451 | ||||||||
Liability | Options | |||||||||||
Schedule of Cost-method Investments [Line Items] | |||||||||||
Gross Investment Income, Operating | (2,907) | 11,272 | 25,411 | ||||||||
Liability | Equity securities | |||||||||||
Schedule of Cost-method Investments [Line Items] | |||||||||||
Gross Investment Income, Operating | (35,643) | (11,725) | (4,098) | ||||||||
Liability | Equity securities | |||||||||||
Schedule of Cost-method Investments [Line Items] | |||||||||||
Gross Investment Income, Operating | (40,275) | (5,030) | 33,086 | ||||||||
Liability | Corporate bonds | |||||||||||
Schedule of Cost-method Investments [Line Items] | |||||||||||
Gross Investment Income, Operating | (1,725) | (4,195) | 9,806 | ||||||||
Liability | Sovereign debt | |||||||||||
Schedule of Cost-method Investments [Line Items] | |||||||||||
Gross Investment Income, Operating | $ 0 | $ (382) | $ 1,967 |
Other expenses (Details)
Other expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |||||||||||
Investment expense (income) and change in fair value of embedded derivatives in deposit liabilities | $ 2,800 | $ (164) | $ 2,207 | ||||||||
Investment expense and change in fair value of embedded derivatives in reinsurance contracts | 9,874 | 8,551 | 6,407 | ||||||||
Other expenses | $ 3,822 | $ 3,846 | $ 2,105 | $ 2,901 | $ 2,161 | $ 347 | $ 3,173 | $ 2,706 | $ 12,674 | $ 8,387 | $ 8,614 |
Income taxes - Narratives (Deta
Income taxes - Narratives (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Loss Carryforwards [Line Items] | |||
Tax Cuts And Jobs Act Of 2017, Incomplete Accounting, Change In Tax Rate, Deferred Tax Asset, Provisional Income Tax Expense | $ 6,000 | ||
Tax Cuts and Jobs Act of 2017, Incomplete Accounting, Change in Tax Rate, Deferred Tax Liability, Provisional Income Tax Benefit | 6,800 | ||
Tax Cuts And Jobs Act Of 2017, Incomplete Accounting, Provisional Income Tax Expense (Benefit) | 800 | ||
Uncertain tax positions | 1,900 | $ 1,600 | |
Operating loss carryforwards | $ 26,100 | ||
United States | |||
Operating Loss Carryforwards [Line Items] | |||
Effective tax rate | 35.00% | ||
Forecast | United States | |||
Operating Loss Carryforwards [Line Items] | |||
Effective tax rate | 21.00% |
Income taxes (Details)
Income taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | |||||||||||
Income tax (expense) benefit | $ (2,104) | $ 3,475 | $ 5,307 | $ 5,298 | $ (272) | $ 2,484 | $ 5,310 | $ (1,929) | $ 11,976 | $ 5,593 | $ (2,905) |
Income tax expense (benefit) related to U.S. and U.K. subsidiaries | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Income tax (expense) benefit | 9,248 | (1,232) | (6,633) | ||||||||
Change in uncertain tax positions | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Income tax (expense) benefit | 155 | 147 | (1,100) | ||||||||
Withholding taxes on certain investment transactions | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Income tax (expense) benefit | $ 2,573 | $ 6,678 | $ 4,828 |
Income taxes - Location (Detail
Income taxes - Location (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | |||||||||||
Income (loss) before income tax (expense) benefit | $ 43,058 | $ 59,119 | $ 80,912 | $ 110,658 | $ (47,197) | $ 75,532 | $ 59,461 | $ (53,327) | $ 293,747 | $ 34,469 | $ (90,344) |
Bermuda | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Income (loss) before income tax (expense) benefit | $ 266,497 | 38,243 | (71,416) | ||||||||
Effective tax rate | 0.00% | ||||||||||
United States | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Income (loss) before income tax (expense) benefit | $ 27,172 | (3,687) | (18,981) | ||||||||
Effective tax rate | 35.00% | ||||||||||
United Kingdom | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Income (loss) before income tax (expense) benefit | $ 78 | $ (87) | $ 53 | ||||||||
Effective tax rate | 19.25% |
Income taxes - Reconciliation (
Income taxes - Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | |||||||||||
Withholding taxes on certain investment transactions | $ 2,573 | $ 6,678 | $ 4,828 | ||||||||
Change in uncertain tax positions | 155 | 147 | (1,100) | ||||||||
Non-deductible expenses and other | (277) | 75 | 0 | ||||||||
Income tax expense (benefit) | $ (2,104) | $ 3,475 | $ 5,307 | $ 5,298 | $ (272) | $ 2,484 | $ 5,310 | $ (1,929) | 11,976 | 5,593 | (2,905) |
Bermuda | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Bermuda (expected tax expense at 0%) | 0 | 0 | 0 | ||||||||
United States | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Foreign location | 9,510 | (1,290) | (6,644) | ||||||||
United Kingdom | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Foreign location | $ 15 | $ (17) | $ 11 |
Income taxes - Current and Defe
Income taxes - Current and Deferred (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||||||||||
Current tax expense | $ 2,824 | $ 6,825 | $ 3,728 | ||||||||
Deferred tax expense (benefit) | 9,152 | (1,232) | (6,633) | ||||||||
Income tax expense (benefit) | $ (2,104) | $ 3,475 | $ 5,307 | $ 5,298 | $ (272) | $ 2,484 | $ 5,310 | $ (1,929) | $ 11,976 | $ 5,593 | $ (2,905) |
Income taxes - Deferred Tax Ass
Income taxes - Deferred Tax Asset (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | |||
Deferred Tax Liabilities, Gross | $ 10,233 | $ 9,517 | $ 4,227 |
Deferred tax assets: | |||
Discounting of loss and loss adjustment expense reserves | 330 | 451 | 119 |
Unearned premiums | 1,634 | 2,486 | 2,329 |
Temporary differences in recognition of expenses | 138 | 1,134 | 573 |
Net operating and capital loss carryforwards | 7,048 | 13,326 | 7,839 |
Total deferred tax assets | 9,150 | 17,397 | 10,860 |
Deferred tax liabilities: | |||
Deferred acquisition costs | 7,798 | 4,079 | 3,515 |
Unrealized gains on investments | 2,435 | 5,438 | 712 |
Total deferred tax liabilities | $ (1,083) | ||
Net deferred tax asset (liability) | $ 7,880 | $ 6,633 |
Share capital - Common shares a
Share capital - Common shares and treasury shares (Details) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common Stock, Shares, Issued | 107,227,347 | 106,501,299 | 105,479,341 |
Balance, beginning of year | (644,768) | ||
Balance, end of year | (3,944,920) | (644,768) | |
Common shares outstanding, end of year | 105,856,531 | ||
Management and director options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted | 150,802 | 514,059 | |
Restricted share awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted | (35,011) | 47,712 | |
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted | 610,257 | 460,187 |
Share capital - Authorized and
Share capital - Authorized and issued (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Equity [Abstract] | ||
Share capital authorized | $ 33,000,000 | $ 33,000,000 |
Common share, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common share, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Preference shares, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Preference shares, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Preference shares, shares outstanding (in shares) | 0 | 0 |
Share capital - Share repurchas
Share capital - Share repurchases (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Feb. 28, 2018 | May 04, 2016 | |
Share repurchase [Abstract] | ||||
Stock Repurchase Program, Authorized Amount | $ 200,000,000 | $ 100,000,000 | ||
Stock Repurchased and Retired During Period, Shares | 3,300,152 | 644,768 | ||
Payments for Repurchase of Common Stock | $ 40,900,000 | $ 7,400,000 | ||
Treasury Stock Acquired, Average Cost Per Share | $ 12.38 | $ 11.46 | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 51,700,000 |
Share capital - Warrants (Detai
Share capital - Warrants (Details) | 12 Months Ended |
Dec. 31, 2017USD ($)$ / sharesshares | |
Class of Warrant or Right [Line Items] | |
Maximum percent of warrants reserved for issuance | 4.00% |
Maximum value of warrants reserved for issuance | $ 1,000,000,000 |
Exercise price (in dollars per share) | $ / shares | $ 10 |
Authorized and issued (in shares) | shares | 4,651,163 |
Aggregated fair value of warrants | $ 17,374,000 |
Term of warrants | 10 years |
Founders | |
Class of Warrant or Right [Line Items] | |
Maximum percent of warrants reserved for issuance | 3.50% |
Exercise price (in dollars per share) | $ / shares | $ 10 |
Authorized and issued (in shares) | shares | 4,069,868 |
Aggregated fair value of warrants | $ 15,203,000 |
Advisor | |
Class of Warrant or Right [Line Items] | |
Maximum percent of warrants reserved for issuance | 0.50% |
Exercise price (in dollars per share) | $ / shares | $ 10 |
Authorized and issued (in shares) | shares | 581,295 |
Aggregated fair value of warrants | $ 2,171,000 |
Share-based compensation - Narr
Share-based compensation - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jul. 15, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unamortized share compensation expense | $ 5.8 | $ 4.6 | ||
Unamortized share compensation expense, period of recognition | 1 year 6 months | 1 year 4 months 24 days | ||
Fair value assumptions | ||||
Aggregate intrinsic value of options outstanding | $ 23.6 | $ 8 | ||
Aggregate intrinsic value of options exercisable | 23.4 | 7.1 | ||
Proceeds from stock options exercised | 1.5 | 5.1 | ||
Defined Contribution Plan, Administrative Expense | $ 0.8 | $ 0.8 | $ 0.8 | |
Non-Employee Directors | ||||
Fair value assumptions | ||||
Restricted stock awards issued | 36,418 | 47,712 | 46,691 | |
Employees | ||||
Fair value assumptions | ||||
Restricted stock awards issued | 0 | 0 | 71,429 | |
Management and director options | ||||
Fair value assumptions | ||||
Remaining contractual life | 4 years 1 month 27 days | 4 years 10 months 7 days | ||
Management and director options | Management | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Service condition met on each of first five anniversary dates following grant date | 20.00% | |||
Award vesting period | 5 years | |||
Restricted share awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
Omnibus plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized (in shares) | 21,627,906 | |||
Number of shares available for future issuance (in shares) | 9,330,000 | 9,418,538 |
Share-based compensation - Sche
Share-based compensation - Schedule of share-based compensation expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share compensation expense | $ 3,599 | $ 8,938 | $ 10,871 |
Restricted Stock Award, Forfeitures | 900 | ||
Management and director options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | 648 | 6,054 | 6,264 |
Restricted share awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | (331) | 1,365 | 1,953 |
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | $ 3,282 | $ 1,519 | $ 2,654 |
Share-based compensation - Sc96
Share-based compensation - Schedule of management and director options activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Number of options (in shares) | |||
Outstanding (in shares) | 9,596,993 | 10,250,586 | 10,990,841 |
Forfeited (in shares) | (558,138) | (139,534) | (306,976) |
Exercised (in shares) | (150,802) | (514,059) | (433,279) |
Outstanding (in shares) | 8,888,053 | 9,596,993 | 10,250,586 |
Weighted average exercise price (in dollars per share) | |||
Outstanding (in dollars per share) | $ 13.64 | $ 13.52 | $ 13.41 |
Forfeited (in dollars per share) | 18 | 18 | 14.36 |
Exercised (in dollars per share) | 10 | 10 | 10 |
Outstanding (in dollars per share) | $ 13.43 | $ 13.64 | $ 13.52 |
Share-based compensation - Sc97
Share-based compensation - Schedule of management and director options outstanding (Details) - $ / shares | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options outstanding (in shares) | 8,888,053 | 9,596,993 | 10,250,586 | 10,990,841 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 13.43 | $ 13.64 | $ 13.52 | $ 13.41 |
Management and director options | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options outstanding (in shares) | 8,888,053 | |||
Options outstanding, weighted average exercise price (in dollars per share) | $ 13.43 | |||
Remaining contractual life | 4 years 1 month 27 days | 4 years 10 months 7 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 4 years 1 month 6 days | 4 years 9 months 15 days | ||
Options exercisable (in shares) | 8,748,521 | |||
Options exercisable, weighted average exercise price (in dollars per share) | $ 13.39 | |||
Management and director options | $10.00 - $10.89 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise price, lower limit (in dollars per share) | 10 | |||
Exercise price, upper limit (in dollars per share) | $ 10.89 | |||
Options outstanding (in shares) | 5,123,532 | |||
Options outstanding, weighted average exercise price (in dollars per share) | $ 10.04 | |||
Remaining contractual life | 4 years 1 month 1 day | |||
Options exercisable (in shares) | 5,081,671 | |||
Options exercisable, weighted average exercise price (in dollars per share) | $ 10.03 | |||
Management and director options | $15.05 - $16.89 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise price, lower limit (in dollars per share) | 15.05 | |||
Exercise price, upper limit (in dollars per share) | $ 16.89 | |||
Options outstanding (in shares) | 1,917,145 | |||
Options outstanding, weighted average exercise price (in dollars per share) | $ 15.93 | |||
Remaining contractual life | 4 years 4 months 1 day | |||
Options exercisable (in shares) | 1,861,332 | |||
Options exercisable, weighted average exercise price (in dollars per share) | $ 15.94 | |||
Management and director options | $20.00 - $25.05 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise price, lower limit (in dollars per share) | 20 | |||
Exercise price, upper limit (in dollars per share) | $ 25.05 | |||
Options outstanding (in shares) | 1,847,376 | |||
Options outstanding, weighted average exercise price (in dollars per share) | $ 20.26 | |||
Remaining contractual life | 4 years 2 months 1 day | |||
Options exercisable (in shares) | 1,805,518 | |||
Options exercisable, weighted average exercise price (in dollars per share) | $ 20.22 |
Share-based compensation - Sc98
Share-based compensation - Schedule of restricted share award activity (Details) - Restricted share awards - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Number of non-vested restricted shares (in shares) | |||
Outstanding, beginning of year (in shares) | 301,043 | 301,043 | 616,114 |
Granted (in shares) | 36,418 | 47,712 | 118,120 |
Forfeited (in shares) | (71,429) | (7,267) | |
Vested (in shares) | (247,823) | (47,712) | (425,924) |
Outstanding, end of year (in shares) | 18,209 | 301,043 | 301,043 |
Weighted average grant data fair value (in dollars per share) | |||
Outstanding, beginning of year (in dollars per share) | $ 11.12 | $ 11.12 | $ 10.10 |
Granted (in dollars per share) | 12.15 | 11.37 | 13.06 |
Forfeited (in dollars per share) | 14 | 13.76 | |
Vested (in dollars per share) | 10.36 | 11.37 | 10.37 |
Outstanding, end of year (in dollars per share) | $ 12.15 | $ 11.12 | $ 11.12 |
Share-based compensation - Sc99
Share-based compensation - Schedule of restricted shares with performance condition (Details) - Performance Shares - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Number of non-vested restricted shares (in shares) | |||
Outstanding, beginning of year (in shares) | 1,381,740 | 921,553 | 459,746 |
Granted (in shares) | 935,825 | 653,958 | 514,276 |
Forfeited (in shares) | (325,568) | (193,771) | (52,469) |
Vested (in shares) | (136,618) | ||
Outstanding, end of year (in shares) | 1,855,379 | 1,381,740 | 921,553 |
Number of non-vested restricted shares probable of vesting | |||
Outstanding, beginning of year (in shares) | 577,486 | 536,234 | 306,496 |
Granted (in shares) | 623,882 | 435,974 | 342,846 |
Forfeited (in shares) | (45,617) | (119,009) | (34,980) |
Vested ( in shares) | $ (136,618) | ||
Change in estimated restricted shares considered probable of vesting (in shares) | (131,930) | (275,713) | (78,128) |
Outstanding, end of year (in shares) | 887,203 | 577,486 | 536,234 |
Weighted average grant data fair value (in dollars per share) | |||
Outstanding, beginning of year (in dollars per share) | $ 12.91 | $ 14.24 | $ 14.60 |
Granted (in dollars per share) | 12.66 | 11.40 | 14 |
Forfeited (in dollars per share) | 12.57 | 13.16 | 14.29 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 14.60 | ||
Change in estimated restricted shares considerable probable of vesting (in dollars per share) | 12.17 | 13.06 | 14.60 |
Outstanding, end of year (in dollars per share) | $ 12.60 | $ 12.91 | $ 14.24 |
Non-controlling interests - Nar
Non-controlling interests - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Noncontrolling Interest [Line Items] | |||
Noncontrolling interests in related party | $ 5,407 | $ 35,674 | |
Noncontrolling interest, increase from contributed capital | $ 60,000 | ||
Third Point Reinsurance Opportunities Fund Ltd | |||
Noncontrolling Interest [Line Items] | |||
Payments of Capital Distribution | 119,400 | ||
Third Point Reinsurance Company Ltd | |||
Noncontrolling Interest [Line Items] | |||
Payments of Capital Distribution | $ 59,400 | ||
TP Trading II LLC [Member] | |||
Noncontrolling Interest [Line Items] | |||
Equity method investment | 9.30% | ||
Fair value of equity method investments | $ 6,000 | ||
Cayman Holdco | |||
Noncontrolling Interest [Line Items] | |||
Payments for (Proceeds from) Limited Partnership | $ 39,600 | $ (35,500) | |
Equity method investment | 15.60% | 13.80% | |
Fair value of equity method investments | $ 600 | $ 37,600 | |
Third Point Hellenic Recovery US Feeder Fund, L.P. | |||
Noncontrolling Interest [Line Items] | |||
Payments for (Proceeds from) Limited Partnership | 1,500 | 200 | |
Committed Capital | $ 10,900 | $ 10,600 | |
Equity method investment | 2.90% | 2.80% | |
Fair value of equity method investments | $ 4,900 | $ 5,500 | |
TP DR Holdings LLC | |||
Noncontrolling Interest [Line Items] | |||
Equity Method Investment, Fair Value of Interest in Debt | $ 9,000 | $ 8,600 | |
Equity method investment | 100.00% | ||
Equity method investment, interest in equity | 7.00% | 7.20% | |
Equity method investments, interest in debt | 13.10% | 13.70% | |
Fair value of equity method investments | $ 12,700 | $ 9,500 | |
Equity Method Investment, Fair Value of Interest in Equity | 3,700 | 900 | |
Equity securities | TP DR Holdings LLC | |||
Noncontrolling Interest [Line Items] | |||
Payments for (Proceeds from) Limited Partnership | 0 | (7,200) | |
Cash [Member] | TP DR Holdings LLC | |||
Noncontrolling Interest [Line Items] | |||
Payments for (Proceeds from) Limited Partnership | (2,400) | $ (1,900) | |
Asset-backed securities | Cloudbreak II Cayman Ltd [Member] | |||
Noncontrolling Interest [Line Items] | |||
Investments in and Advances to Affiliates, at Fair Value | 4,600 | ||
Real Estate Funds [Member] | Ventures Entities [Member] | |||
Noncontrolling Interest [Line Items] | |||
Investments in and Advances to Affiliates, at Fair Value | $ 7,500 |
Non-controlling interests - Inc
Non-controlling interests - Income Attributable to Non-controlling Interests (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Noncontrolling Interest [Line Items] | |||
Income (loss) attributable to non-controlling interests | $ 3,973 | $ 1,241 | $ (49) |
Catastrophe Fund and Catastrophe Fund Manager | |||
Noncontrolling Interest [Line Items] | |||
Income (loss) attributable to non-controlling interests | 0 | 0 | (102) |
Joint Venture - Third Point Advisors LLC share | |||
Noncontrolling Interest [Line Items] | |||
Income (loss) attributable to non-controlling interests | $ 3,973 | $ 1,241 | $ 53 |
Non-controlling interests Nonco
Non-controlling interests Noncontrolling interests (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Minority Interests [Line Items] | |||||||||||
Redeemable noncontrolling interests, beginning of period | $ 0 | $ 0 | |||||||||
Redeemable noncontrolling interests, end of period | $ 108,219 | $ 0 | 108,219 | $ 0 | |||||||
Noncontrolling interests in related party, beginning of period | 35,674 | 35,674 | |||||||||
Noncontrolling interests in related party, end of period | 5,407 | 35,674 | 5,407 | 35,674 | |||||||
Total Noncontrolling Interests, beginning of period | 35,674 | $ 16,157 | 35,674 | 16,157 | |||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 813 | $ 959 | $ 1,027 | 1,174 | (232) | $ 967 | $ 775 | (269) | 3,973 | 1,241 | $ (49) |
Contributions From Noncontrolling Interest | 93,978 | 18,276 | |||||||||
Redemptions | 19,999 | 0 | |||||||||
Total Noncontrolling Interests, end of period | 113,626 | 35,674 | 113,626 | 35,674 | 16,157 | ||||||
Redeemable Noncontrolling Interest [Member] | |||||||||||
Minority Interests [Line Items] | |||||||||||
Redeemable noncontrolling interests, beginning of period | 0 | 0 | 0 | 0 | |||||||
Change in Capital Account Allocation, Redeemable | 108,219 | 0 | |||||||||
Redeemable noncontrolling interests, end of period | 108,219 | 0 | 108,219 | 0 | 0 | ||||||
Noncontrolling interests in related party | |||||||||||
Minority Interests [Line Items] | |||||||||||
Noncontrolling interests in related party, beginning of period | 35,674 | 16,157 | 35,674 | 16,157 | |||||||
Change in Capital Account Allocation, Nonredeemable | (30,267) | 19,517 | |||||||||
Noncontrolling interests in related party, end of period | 5,407 | 35,674 | 5,407 | 35,674 | 16,157 | ||||||
Total Noncontrolling Interests [Member] | |||||||||||
Minority Interests [Line Items] | |||||||||||
Total Noncontrolling Interests, beginning of period | 35,674 | 16,157 | 35,674 | 16,157 | |||||||
Change in Capital Account Allocation | 77,952 | 19,517 | |||||||||
Total Noncontrolling Interests, end of period | 113,626 | 35,674 | 113,626 | 35,674 | 16,157 | ||||||
Third Point USA [Member] | |||||||||||
Minority Interests [Line Items] | |||||||||||
Total Noncontrolling Interests, beginning of period | 5,316 | 2,005 | 5,316 | 2,005 | |||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 806 | 168 | |||||||||
Contributions From Noncontrolling Interest | 11,885 | 3,143 | |||||||||
Redemptions | 2,000 | 0 | |||||||||
Total Noncontrolling Interests, end of period | 16,007 | 5,316 | 16,007 | 5,316 | 2,005 | ||||||
Third Point Bermuda [Member] | |||||||||||
Minority Interests [Line Items] | |||||||||||
Total Noncontrolling Interests, beginning of period | $ 30,358 | $ 14,152 | 30,358 | 14,152 | |||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 3,167 | 1,073 | |||||||||
Contributions From Noncontrolling Interest | 82,093 | 15,133 | |||||||||
Redemptions | 17,999 | 0 | |||||||||
Total Noncontrolling Interests, end of period | $ 97,619 | $ 30,358 | $ 97,619 | $ 30,358 | $ 14,152 |
Earnings per share (Details)
Earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Weighted-average number of common shares outstanding: | |||||||||||
Basic number of common shares outstanding (in shares) | 101,405,772 | 101,391,145 | 102,283,844 | 104,013,871 | 104,072,283 | 103,780,196 | 104,132,797 | 104,257,874 | 102,264,094 | 104,060,052 | 104,003,820 |
Dilutive effect of options (in shares) | 1,392,384 | 633,955 | 0 | ||||||||
Dilutive effect of warrants (in shares) | 1,270,957 | 709,499 | 0 | ||||||||
Dilutive effect of restricted shares with service and performance condition | 299,603 | 160,278 | 0 | ||||||||
Diluted number of common shares outstanding (in shares) | 105,524,115 | 104,679,574 | 104,569,226 | 105,701,599 | 104,072,283 | 105,795,313 | 105,233,921 | 104,257,874 | 105,227,038 | 105,563,784 | 104,003,820 |
Basic earnings (loss) per common share: | |||||||||||
Net income (loss) available to Third Point Re common shareholders | $ 44,349 | $ 54,685 | $ 74,578 | $ 104,186 | $ (46,693) | $ 72,081 | $ 53,376 | $ (51,129) | $ 277,798 | $ 27,635 | $ (87,390) |
Net income allocated to Third Point Re participating common shareholders | (263) | (88) | 0 | ||||||||
Net income (loss) allocated to Third Point Re common shareholders | $ 277,535 | $ 27,547 | $ (87,390) | ||||||||
Basic net income (loss) per common share (in dollars per share) | $ 0.44 | $ 0.54 | $ 0.73 | $ 1 | $ (0.45) | $ 0.69 | $ 0.51 | $ (0.49) | $ 2.71 | $ 0.26 | $ (0.84) |
Earnings Per Share, Diluted [Abstract] | |||||||||||
Net income (loss) available to Third Point Re common shareholders | $ 44,349 | $ 54,685 | $ 74,578 | $ 104,186 | $ (46,693) | $ 72,081 | $ 53,376 | $ (51,129) | $ 277,798 | $ 27,635 | $ (87,390) |
Net income allocated to Third Point Re participating common shareholders | (256) | (87) | 0 | ||||||||
Net income (loss) allocated to Third Point Re common shareholders | $ 277,542 | $ 27,548 | $ (87,390) | ||||||||
Diluted net income (loss) per common share (in dollars per share) | $ 0.42 | $ 0.52 | $ 0.71 | $ 0.98 | $ (0.45) | $ 0.68 | $ 0.51 | $ (0.49) | $ 2.64 | $ 0.26 | $ (0.84) |
Options | |||||||||||
Earnings Per Share, Diluted [Abstract] | |||||||||||
Antidilutive securities excluded from computation of earnings per share | 4,056,588 | 4,369,171 | |||||||||
Options and Restricted Shares | |||||||||||
Earnings Per Share, Diluted [Abstract] | |||||||||||
Antidilutive securities excluded from computation of earnings per share | 4,859,053 | ||||||||||
Options and Warrants | |||||||||||
Earnings Per Share, Diluted [Abstract] | |||||||||||
Antidilutive securities excluded from computation of earnings per share | 10,669,545 |
Related party transactions (Det
Related party transactions (Details) - Investments in securities, commodities, and derivative contracts - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Third Point Loan L.L.C. | ||
Related Party Transaction [Line Items] | ||
Estimated fair value of investment | $ 99,600,000 | $ 124,100,000 |
Third Point Ventures LLC | ||
Related Party Transaction [Line Items] | ||
Estimated fair value of investment | $ 6,300,000 | $ 22,600,000 |
Financial instruments with o105
Financial instruments with off-balance sheet risk or concentrations of credit risk (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Guarantor Obligations [Line Items] | ||
Asset | $ 73,372 | $ 27,432 |
Liability | (14,503) | (16,050) |
Written credit derivatives | ||
Guarantor Obligations [Line Items] | ||
0-5 years | 0 | 0 |
5 years or Greater Expiring Through 2046 | 2,351 | 3,943 |
Total Written Credit Default Swaps | 2,351 | 3,943 |
Asset | 0 | 0 |
Liability | (2,085) | (1,952) |
Net Asset/(Liability) | (2,085) | (1,952) |
Written credit derivatives | Single name (0 - 250) | ||
Guarantor Obligations [Line Items] | ||
0-5 years | 0 | 0 |
5 years or Greater Expiring Through 2046 | 2,351 | 3,943 |
Total Written Credit Default Swaps | 2,351 | 3,943 |
Asset | 0 | 0 |
Liability | (2,085) | (1,952) |
Net Asset/(Liability) | (2,085) | (1,952) |
Credit risk exposure | ||
Guarantor Obligations [Line Items] | ||
Maximum counterparty credit risk exposure | 76,400 | 28,100 |
Written put options | ||
Guarantor Obligations [Line Items] | ||
Option contracts maximum payout | 399,200 | 87,500 |
Written put options | Securities sold, not yet purchased | ||
Guarantor Obligations [Line Items] | ||
Options contracts at fair value | $ 3,500 | $ 1,300 |
Written put options | Minimum | ||
Guarantor Obligations [Line Items] | ||
Option contracts maximum payout term | 1 month | |
Written put options | Maximum | ||
Guarantor Obligations [Line Items] | ||
Option contracts maximum payout term | 7 months |
Commitments and Contingencies -
Commitments and Contingencies - Operating lease (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating leases, rent expense | $ 800 | $ 800 | $ 700 |
2,018 | 871 | ||
2,019 | 888 | ||
2,020 | 850 | ||
2,021 | 42 | ||
2,022 | 0 | ||
Thereafter | 0 | ||
Total | $ 2,651 |
Commitments and Contingencie107
Commitments and Contingencies - Agreements and Investments (Details) - USD ($) $ in Thousands | 60 Months Ended | |||
Sep. 01, 2021 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 01, 2016 | |
Other Commitments [Line Items] | ||||
Management fee percentage | 2.00% | 1.50% | ||
Percentage of interest acquired in aircraft | 31.25% | |||
Unfunded capital commitments | $ 3,200 | |||
Management Fee Commitment | ||||
Other Commitment, Fiscal Year Maturity | ||||
2,018 | 723 | |||
2,019 | 750 | |||
2,020 | 779 | |||
2,021 | 538 | |||
2,022 | 0 | |||
Total | $ 2,790 | |||
Forecast | ||||
Other Commitments [Line Items] | ||||
Duration aircraft acquired for | 5 years |
Commitments and Contingencie108
Commitments and Contingencies - Financing (Details) - 7% Senior Unsecured Notes - Unsecured Debt $ in Millions | Dec. 31, 2017USD ($) |
Other Commitments [Line Items] | |
Debt issued | $ 115 |
Interest rate | 7.00% |
Segment reporting - Operating S
Segment reporting - Operating Segments (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Segment Reporting [Abstract] | |||||||||||
Number of operating segments | segment | 1 | ||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross premiums written | $ 164,163 | $ 174,539 | $ 156,564 | $ 146,354 | $ 80,779 | $ 142,573 | $ 196,866 | $ 197,156 | $ 641,620 | $ 617,374 | $ 702,414 |
Gross Premiums As Percentage Of Total Gross Premiums | 100.00% | 100.00% | 100.00% | ||||||||
Gross premiums ceded | 75 | 0 | (1,425) | (1,125) | 27 | (927) | (1,425) | 0 | $ (2,475) | $ (2,325) | $ (1,876) |
Net premiums written | 164,238 | 174,539 | 155,139 | 145,229 | 80,806 | 141,646 | 195,441 | 197,156 | 639,145 | 615,049 | 700,538 |
Change in net unearned premium reserves | (34,722) | (68,564) | 18,419 | (7,220) | 111,277 | (13,463) | (62,319) | (60,354) | (92,087) | (24,859) | (97,714) |
Net premiums earned | 129,516 | 105,975 | 173,558 | 138,009 | 192,083 | 128,183 | 133,122 | 136,802 | 547,058 | 590,190 | 602,824 |
Loss and loss adjustment expenses incurred, net | 99,509 | 77,275 | 107,379 | 85,895 | 122,110 | 85,015 | 104,131 | 84,676 | 370,058 | 395,932 | 415,191 |
Acquisition costs, net | 31,837 | 33,974 | 68,641 | 54,452 | 76,854 | 45,127 | 48,482 | 51,687 | 188,904 | 222,150 | 191,216 |
General and administrative expenses | 14,299 | 13,218 | 15,014 | 10,572 | 5,482 | 12,354 | 10,243 | 11,288 | 53,103 | 39,367 | 46,033 |
Net investment income | 612,065 | 657,449 | 652,440 | ||||||||
Net investment income (loss) | (67,150) | (88,968) | (107,325) | (128,510) | 35,767 | (88,356) | (86,346) | 40,110 | (391,953) | (98,825) | 28,074 |
Other expenses | (3,822) | (3,846) | (2,105) | (2,901) | (2,161) | (347) | (3,173) | (2,706) | (12,674) | (8,387) | (8,614) |
Interest expense | (2,074) | (2,074) | (2,051) | (2,026) | (2,068) | (2,069) | (2,046) | (2,048) | (8,225) | (8,231) | (7,236) |
Foreign exchange (gains) losses | (2,067) | (5,437) | (4,781) | (15) | 5,162 | 3,905 | 8,068 | 2,386 | (12,300) | 19,521 | 3,196 |
Income tax (expense) benefit | 2,104 | (3,475) | (5,307) | (5,298) | 272 | (2,484) | (5,310) | 1,929 | (11,976) | (5,593) | 2,905 |
Net (income) loss attributable to noncontrolling interests in related party | (813) | (959) | (1,027) | (1,174) | 232 | (967) | (775) | 269 | (3,973) | (1,241) | 49 |
Net income (loss) available to Third Point Re common shareholders | $ 44,349 | $ 54,685 | $ 74,578 | $ 104,186 | $ (46,693) | $ 72,081 | $ 53,376 | $ (51,129) | 277,798 | 27,635 | (87,390) |
Property and Casualty Reinsurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross premiums written | $ 641,620 | $ 617,374 | $ 702,458 | ||||||||
Gross Premiums As Percentage Of Total Gross Premiums | 100.00% | 100.00% | 100.00% | ||||||||
Catastrophe Risk Management | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross premiums written | $ 0 | $ 0 | $ (44) | ||||||||
Gross Premiums As Percentage Of Total Gross Premiums | 0.00% | 0.00% | 0.00% | ||||||||
Operating Segments | Property and Casualty Reinsurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross premiums written | $ 641,620 | $ 617,374 | $ 702,458 | ||||||||
Gross premiums ceded | (2,475) | (2,325) | (1,876) | ||||||||
Net premiums written | 639,145 | 615,049 | 700,582 | ||||||||
Change in net unearned premium reserves | (92,087) | (24,859) | (97,766) | ||||||||
Net premiums earned | 547,058 | 590,190 | 602,816 | ||||||||
Loss and loss adjustment expenses incurred, net | 370,058 | 395,932 | 415,041 | ||||||||
Acquisition costs, net | 188,904 | 222,150 | 191,217 | ||||||||
General and administrative expenses | 30,656 | 22,160 | 24,815 | ||||||||
Net investment income | 589,618 | 640,242 | 631,073 | ||||||||
Net underwriting loss | (42,560) | (50,052) | (28,257) | ||||||||
Net investment income (loss) | (114,435) | (16,931) | 10,810 | ||||||||
Other expenses | (12,674) | (8,387) | (8,614) | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Foreign exchange (gains) losses | 0 | 0 | 0 | ||||||||
Income tax (expense) benefit | 0 | 0 | 0 | ||||||||
Net (income) loss attributable to noncontrolling interests in related party | 0 | 0 | 0 | ||||||||
Net income (loss) available to Third Point Re common shareholders | $ 59,201 | $ (41,508) | $ (47,681) | ||||||||
Loss ratio | 67.60% | 67.10% | 68.90% | ||||||||
Acquisition cost ratio | 34.50% | 37.60% | 31.70% | ||||||||
Composite ratio | 102.10% | 104.70% | 100.60% | ||||||||
General and administrative expense ratio | 5.60% | 3.80% | 4.10% | ||||||||
Combined ratio | 107.70% | 108.50% | 104.70% | ||||||||
Operating Segments | Catastrophe Risk Management | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross premiums written | $ 0 | $ 0 | $ (44) | ||||||||
Gross premiums ceded | 0 | 0 | 0 | ||||||||
Net premiums written | 0 | 0 | (44) | ||||||||
Change in net unearned premium reserves | 0 | 0 | 52 | ||||||||
Net premiums earned | 0 | 0 | 8 | ||||||||
Loss and loss adjustment expenses incurred, net | 0 | 0 | 150 | ||||||||
Acquisition costs, net | 0 | 0 | (1) | ||||||||
General and administrative expenses | 0 | 0 | 447 | ||||||||
Net investment income | 0 | 0 | 596 | ||||||||
Net investment income (loss) | 0 | 0 | (69) | ||||||||
Other expenses | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Foreign exchange (gains) losses | 0 | 0 | 0 | ||||||||
Income tax (expense) benefit | 0 | 0 | 0 | ||||||||
Net (income) loss attributable to noncontrolling interests in related party | 0 | 0 | 102 | ||||||||
Net income (loss) available to Third Point Re common shareholders | 0 | 0 | (417) | ||||||||
Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross premiums written | 0 | 0 | 0 | ||||||||
Gross premiums ceded | 0 | 0 | 0 | ||||||||
Net premiums written | 0 | 0 | 0 | ||||||||
Change in net unearned premium reserves | 0 | 0 | 0 | ||||||||
Net premiums earned | 0 | 0 | 0 | ||||||||
Loss and loss adjustment expenses incurred, net | 0 | 0 | 0 | ||||||||
Acquisition costs, net | 0 | 0 | 0 | ||||||||
General and administrative expenses | 22,447 | 17,207 | 20,771 | ||||||||
Net investment income | 22,447 | 17,207 | 20,771 | ||||||||
Net investment income (loss) | (277,518) | (81,894) | 17,333 | ||||||||
Other expenses | 0 | 0 | 0 | ||||||||
Interest expense | (8,225) | (8,231) | (7,236) | ||||||||
Foreign exchange (gains) losses | (12,300) | 19,521 | 3,196 | ||||||||
Income tax (expense) benefit | (11,976) | (5,593) | 2,905 | ||||||||
Net (income) loss attributable to noncontrolling interests in related party | (3,973) | (1,241) | (53) | ||||||||
Net income (loss) available to Third Point Re common shareholders | $ 218,597 | $ 69,143 | $ (39,292) |
Segment reporting - Concentrati
Segment reporting - Concentration Risk (Details) - Gross Premiums Written | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue, Major Customer [Line Items] | |||
Concentration risk, percentage | 100.00% | 100.00% | 100.00% |
Contract Concentration Risk | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, percentage | 100.00% | 100.00% | 100.00% |
Contract Concentration Risk | Contract 1 | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, percentage | 16.10% | 16.10% | 16.10% |
Contract Concentration Risk | Contract 2 | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, percentage | 14.10% | 13.00% | |
Contract Concentration Risk | Contract 3 | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, percentage | 13.10% | ||
Contract Concentration Risk | Total for contracts contributing greater than 10% each | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, percentage | 43.30% | 16.10% | 29.10% |
Contract Concentration Risk | Total for contracts contributing less than 10% each | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, percentage | 56.70% | 83.90% | 70.90% |
Segment reporting - Receivables
Segment reporting - Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Concentration Risk [Line Items] | ||
Reinsurance balances receivable | $ 476,008 | $ 381,951 |
Customer Concentration Risk | Reinsurance Receivables | ||
Concentration Risk [Line Items] | ||
Reinsurance balances receivable | $ 476,008 | $ 381,951 |
Concentration risk, percentage | 100.00% | 100.00% |
Customer Concentration Risk | Reinsurance Receivables | Counterparty 1 | ||
Concentration Risk [Line Items] | ||
Reinsurance balances receivable | $ 80,187 | $ 82,162 |
Concentration risk, percentage | 16.80% | 21.50% |
Customer Concentration Risk | Reinsurance Receivables | Counterparty 2 | ||
Concentration Risk [Line Items] | ||
Reinsurance balances receivable | $ 58,776 | |
Concentration risk, percentage | 12.40% | |
Customer Concentration Risk | Reinsurance Receivables | Counterparty 3 | ||
Concentration Risk [Line Items] | ||
Reinsurance balances receivable | $ 51,613 | |
Concentration risk, percentage | 10.80% | |
Customer Concentration Risk | Reinsurance Receivables | Counterparty 4 | ||
Concentration Risk [Line Items] | ||
Reinsurance balances receivable | $ 47,438 | |
Concentration risk, percentage | 10.00% | |
Customer Concentration Risk | Reinsurance Receivables | Customers contributing greater than 10% each | ||
Concentration Risk [Line Items] | ||
Reinsurance balances receivable | $ 238,014 | $ 82,162 |
Concentration risk, percentage | 50.00% | 21.50% |
Customer Concentration Risk | Reinsurance Receivables | Other counterparties representing less than 10% each | ||
Concentration Risk [Line Items] | ||
Reinsurance balances receivable | $ 237,994 | $ 299,789 |
Concentration risk, percentage | 50.00% | 78.50% |
Segment reporting - Business Li
Segment reporting - Business Line (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue, Major Customer [Line Items] | |||||||||||
Gross premiums written | $ 164,163 | $ 174,539 | $ 156,564 | $ 146,354 | $ 80,779 | $ 142,573 | $ 196,866 | $ 197,156 | $ 641,620 | $ 617,374 | $ 702,414 |
Gross Premiums As Percentage Of Total Gross Premiums | 100.00% | 100.00% | 100.00% | ||||||||
Property and Casualty Reinsurance | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Gross premiums written | $ 641,620 | $ 617,374 | $ 702,458 | ||||||||
Gross Premiums As Percentage Of Total Gross Premiums | 100.00% | 100.00% | 100.00% | ||||||||
Property and Casualty Reinsurance | Property | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Gross premiums written | $ 136,999 | $ 98,334 | $ 114,215 | ||||||||
Gross Premiums As Percentage Of Total Gross Premiums | 21.40% | 15.90% | 16.20% | ||||||||
Property and Casualty Reinsurance | Casualty | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Gross premiums written | $ 269,759 | $ 213,050 | $ 235,510 | ||||||||
Gross Premiums As Percentage Of Total Gross Premiums | 42.00% | 34.50% | 33.50% | ||||||||
Property and Casualty Reinsurance | Specialty | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Gross premiums written | $ 125,511 | $ 305,990 | $ 244,669 | ||||||||
Gross Premiums As Percentage Of Total Gross Premiums | 19.60% | 49.60% | 34.90% | ||||||||
Property and Casualty Reinsurance | Total prospective reinsurance contracts | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Gross premiums written | $ 532,269 | $ 617,374 | $ 594,394 | ||||||||
Gross Premiums As Percentage Of Total Gross Premiums | 83.00% | 100.00% | 84.60% | ||||||||
Property and Casualty Reinsurance | Retroactive reinsurance contracts | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Gross premiums written | $ 109,351 | $ 0 | $ 108,064 | ||||||||
Gross Premiums As Percentage Of Total Gross Premiums | 17.00% | 0.00% | 15.40% | ||||||||
Catastrophe Risk Management | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Gross premiums written | $ 0 | $ 0 | $ (44) | ||||||||
Gross Premiums As Percentage Of Total Gross Premiums | 0.00% | 0.00% | 0.00% |
Segment reporting - Broker Conc
Segment reporting - Broker Concentration (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue, Major Customer [Line Items] | |||||||||||
Gross premiums written | $ 164,163 | $ 174,539 | $ 156,564 | $ 146,354 | $ 80,779 | $ 142,573 | $ 196,866 | $ 197,156 | $ 641,620 | $ 617,374 | $ 702,414 |
Gross premiums as percentage of total gross premiums | 100.00% | 100.00% | 100.00% | ||||||||
Gross Premiums Written | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Gross premiums written | $ 641,620 | $ 617,374 | $ 702,414 | ||||||||
Concentration risk, percentage | 100.00% | 100.00% | 100.00% | ||||||||
Gross Premiums Written | Customer Concentration Risk | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Gross premiums written | $ 641,620 | $ 617,374 | $ 702,414 | ||||||||
Concentration risk, percentage | 100.00% | 100.00% | 100.00% | ||||||||
Gross Premiums Written | Customer Concentration Risk | Largest broker | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Gross premiums written | $ 243,581 | $ 240,172 | $ 198,209 | ||||||||
Concentration risk, percentage | 38.00% | 38.90% | 28.20% | ||||||||
Gross Premiums Written | Customer Concentration Risk | Second largest broker | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Gross premiums written | $ 128,648 | $ 185,638 | $ 163,832 | ||||||||
Concentration risk, percentage | 20.10% | 30.10% | 23.30% | ||||||||
Gross Premiums Written | Customer Concentration Risk | Third largest broker | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Gross premiums written | $ 107,612 | $ 97,148 | $ 91,554 | ||||||||
Concentration risk, percentage | 16.80% | 15.70% | 13.00% | ||||||||
Gross Premiums Written | Customer Concentration Risk | Fourth largest broker | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Gross premiums written | $ 73,499 | ||||||||||
Concentration risk, percentage | 10.50% | ||||||||||
Gross Premiums Written | Customer Concentration Risk | Other | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Gross premiums written | $ 161,779 | $ 94,416 | $ 175,320 | ||||||||
Concentration risk, percentage | 25.10% | 15.30% | 25.00% |
Segment reporting - Geographic
Segment reporting - Geographic information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue from External Customer [Line Items] | |||||||||||
Gross premiums written | $ 164,163 | $ 174,539 | $ 156,564 | $ 146,354 | $ 80,779 | $ 142,573 | $ 196,866 | $ 197,156 | $ 641,620 | $ 617,374 | $ 702,414 |
Gross Premiums Written | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Gross premiums written | $ 641,620 | $ 617,374 | $ 702,414 | ||||||||
Concentration risk, percentage | 100.00% | 100.00% | 100.00% | ||||||||
Gross Premiums Written | United States | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Gross premiums written | $ 352,539 | $ 332,849 | $ 283,626 | ||||||||
Concentration risk, percentage | 54.90% | 53.90% | 40.40% | ||||||||
Gross Premiums Written | United Kingdom | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Gross premiums written | $ 203,768 | $ 187,625 | $ 290,710 | ||||||||
Concentration risk, percentage | 31.80% | 30.40% | 41.40% | ||||||||
Gross Premiums Written | Bermuda | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Gross premiums written | $ 62,234 | $ 96,900 | $ 128,078 | ||||||||
Concentration risk, percentage | 9.70% | 15.70% | 18.20% | ||||||||
Gross Premiums Written | Other | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Gross premiums written | $ 23,079 | $ 0 | $ 0 | ||||||||
Concentration risk, percentage | 3.60% | 0.00% | 0.00% |
Statutory Requirements (Details
Statutory Requirements (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)member | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Statutory Accounting Practices [Line Items] | |||
Liquidity ratio, minimum percentage required | 75.00% | ||
Bermuda | |||
Statutory Accounting Practices [Line Items] | |||
Actual statutory capital and surplus | $ 1,430,174 | $ 1,259,876 | |
Required statutory capital and surplus | 759,518 | 642,349 | |
Statutory net income | $ 265,903 | 35,096 | $ (68,188) |
Statutory maximum percentage available for dividend payments | 25.00% | ||
Dividend payments with regulatory approval, number of members required | member | 2 | ||
Statutory amount available for dividend payments without regulatory approval | $ 357,500 | 315,000 | |
United States | |||
Statutory Accounting Practices [Line Items] | |||
Actual statutory capital and surplus | 265,206 | 282,552 | |
Required statutory capital and surplus | 93,261 | 89,557 | |
Statutory net income | $ 22,310 | 2,701 | $ (7,510) |
Statutory maximum percentage available for dividend payments | 25.00% | ||
Dividend payments with regulatory approval, number of members required | member | 2 | ||
Statutory amount available for dividend payments without regulatory approval | $ 24,300 | $ 19,600 | |
Minimum Net Capital Required for Entity | $ 250,000 |
Subsequent events (Details)
Subsequent events (Details) - USD ($) | Feb. 28, 2018 | May 04, 2016 |
Subsequent Events [Abstract] | ||
Stock Repurchase Program, Increase in Authorized Amount | $ 148,300,000 | |
Stock Repurchase Program, Authorized Amount | $ 200,000,000 | $ 100,000,000 |
Supplemental guarantor infor117
Supplemental guarantor information - Condensed Consolidating Balance Sheet (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||||
Equity securities | $ 2,283,050,000 | $ 1,506,854,000 | ||
Debt securities | 675,158,000 | 1,057,957,000 | ||
Other investments, at fair value | 37,731,000 | 82,701,000 | ||
Total investments in securities | 2,995,939,000 | 2,647,512,000 | ||
Cash and cash equivalents | 8,197,000 | 9,951,000 | $ 20,407,000 | $ 28,734,000 |
Restricted cash and cash equivalents | 541,136,000 | 298,940,000 | ||
Investment in subsidiaries | 0 | 0 | ||
Due from brokers | 305,093,000 | 284,591,000 | ||
Derivative assets, at fair value | 73,372,000 | 27,432,000 | ||
Interest and dividends receivable | 3,774,000 | 6,505,000 | ||
Reinsurance balances receivable | 476,008,000 | 381,951,000 | ||
Deferred acquisition costs, net | 258,793,000 | 221,618,000 | ||
Amounts due from (to) affiliates | 0 | 0 | ||
Other assets | 9,482,000 | 17,144,000 | ||
Total assets | 4,671,794,000 | 3,895,644,000 | ||
Liabilities | ||||
Accounts payable and accrued expenses | 34,632,000 | 10,321,000 | ||
Reinsurance balances payable | 41,614,000 | 43,171,000 | ||
Deposit liabilities | 129,133,000 | 104,905,000 | 83,955,000 | 145,430,000 |
Unearned premium reserves | 649,518,000 | 557,076,000 | ||
Loss and loss adjustment expense reserves | 720,570,000 | 605,129,000 | ||
Securities sold, not yet purchased, at fair value | 394,278,000 | 92,668,000 | ||
Securities sold under an agreement to repurchase | 29,618,000 | 0 | ||
Due to brokers | 770,205,000 | 899,601,000 | ||
Derivative liabilities, at fair value | 14,503,000 | 16,050,000 | ||
Interest and dividends payable | 4,275,000 | 3,443,000 | ||
Senior notes payable, net of deferred costs | 113,733,000 | 113,555,000 | ||
Total liabilities | 2,902,079,000 | 2,445,919,000 | ||
Redeemable noncontrolling interests in related party | 108,219,000 | 0 | ||
Shareholders’ equity | ||||
Common shares | 10,723,000 | 10,650,000 | ||
Treasury Stock, Value | (48,253,000) | (7,389,000) | ||
Additional paid-in capital | 1,099,599,000 | 1,094,568,000 | ||
Retained earnings | 594,020,000 | 316,222,000 | ||
Shareholders’ equity attributable to Third Point Re common shareholders | 1,656,089,000 | 1,414,051,000 | ||
Noncontrolling interests in related party | 5,407,000 | 35,674,000 | ||
Total shareholders' equity | 1,661,496,000 | 1,449,725,000 | 1,395,883,000 | |
Total liabilities, noncontrolling interests and shareholders' equity | 4,671,794,000 | 3,895,644,000 | ||
Reportable Legal Entities | Parent Guarantor | ||||
Assets | ||||
Equity securities | 0 | 0 | ||
Debt securities | 0 | 0 | ||
Other investments, at fair value | 0 | 0 | ||
Total investments in securities | 0 | 0 | ||
Cash and cash equivalents | 9,000 | 1,629,000 | 308,000 | 140,000 |
Restricted cash and cash equivalents | 0 | 0 | ||
Investment in subsidiaries | 1,657,467,000 | 1,413,078,000 | ||
Due from brokers | 0 | 0 | ||
Derivative assets, at fair value | 0 | 0 | ||
Interest and dividends receivable | 0 | 0 | ||
Reinsurance balances receivable | 0 | 0 | ||
Deferred acquisition costs, net | 0 | 0 | ||
Amounts due from (to) affiliates | (1,288,000) | (142,000) | ||
Other assets | 664,000 | 637,000 | ||
Total assets | 1,656,852,000 | 1,415,202,000 | ||
Liabilities | ||||
Accounts payable and accrued expenses | 763,000 | 1,151,000 | ||
Reinsurance balances payable | 0 | 0 | ||
Deposit liabilities | 0 | 0 | ||
Unearned premium reserves | 0 | 0 | ||
Loss and loss adjustment expense reserves | 0 | 0 | ||
Securities sold, not yet purchased, at fair value | 0 | 0 | ||
Securities sold under an agreement to repurchase | 0 | |||
Due to brokers | 0 | 0 | ||
Derivative liabilities, at fair value | 0 | 0 | ||
Interest and dividends payable | 0 | 0 | ||
Senior notes payable, net of deferred costs | 0 | 0 | ||
Total liabilities | 763,000 | 1,151,000 | ||
Redeemable noncontrolling interests in related party | 0 | |||
Shareholders’ equity | ||||
Common shares | 10,723,000 | 10,650,000 | ||
Treasury Stock, Value | (48,253,000) | (7,389,000) | ||
Additional paid-in capital | 1,099,599,000 | 1,094,568,000 | ||
Retained earnings | 594,020,000 | 316,222,000 | ||
Shareholders’ equity attributable to Third Point Re common shareholders | 1,656,089,000 | 1,414,051,000 | ||
Noncontrolling interests in related party | 0 | 0 | ||
Total shareholders' equity | 1,656,089,000 | 1,414,051,000 | ||
Total liabilities, noncontrolling interests and shareholders' equity | 1,656,852,000 | 1,415,202,000 | ||
Reportable Legal Entities | TPRUSA | ||||
Assets | ||||
Equity securities | 0 | 0 | ||
Debt securities | 0 | 0 | ||
Other investments, at fair value | 0 | 0 | ||
Total investments in securities | 0 | 0 | ||
Cash and cash equivalents | 199,000 | 79,000 | 5,000 | 0 |
Restricted cash and cash equivalents | 0 | 0 | ||
Investment in subsidiaries | 274,272,000 | 269,622,000 | ||
Due from brokers | 0 | 0 | ||
Derivative assets, at fair value | 0 | 0 | ||
Interest and dividends receivable | 0 | 0 | ||
Reinsurance balances receivable | 0 | 0 | ||
Deferred acquisition costs, net | 0 | 0 | ||
Amounts due from (to) affiliates | 412,000 | (8,394,000) | ||
Other assets | 0 | 5,507,000 | ||
Total assets | 274,883,000 | 266,814,000 | ||
Liabilities | ||||
Accounts payable and accrued expenses | (8,805,000) | 40,000 | ||
Reinsurance balances payable | 0 | 0 | ||
Deposit liabilities | 0 | 0 | ||
Unearned premium reserves | 0 | 0 | ||
Loss and loss adjustment expense reserves | 0 | 0 | ||
Securities sold, not yet purchased, at fair value | 0 | 0 | ||
Securities sold under an agreement to repurchase | 0 | |||
Due to brokers | 0 | 0 | ||
Derivative liabilities, at fair value | 0 | 0 | ||
Interest and dividends payable | 3,055,000 | 3,057,000 | ||
Senior notes payable, net of deferred costs | 113,733,000 | 113,555,000 | ||
Total liabilities | 107,983,000 | 116,652,000 | ||
Redeemable noncontrolling interests in related party | 0 | |||
Shareholders’ equity | ||||
Common shares | 0 | 0 | ||
Treasury Stock, Value | 0 | 0 | ||
Additional paid-in capital | 165,097,000 | 165,456,000 | ||
Retained earnings | 1,803,000 | (15,294,000) | ||
Shareholders’ equity attributable to Third Point Re common shareholders | 166,900,000 | 150,162,000 | ||
Noncontrolling interests in related party | 0 | 0 | ||
Total shareholders' equity | 166,900,000 | 150,162,000 | ||
Total liabilities, noncontrolling interests and shareholders' equity | 274,883,000 | 266,814,000 | ||
Reportable Legal Entities | Non-Guarantor Subsidiaries | ||||
Assets | ||||
Equity securities | 2,283,050,000 | 1,506,854,000 | ||
Debt securities | 675,158,000 | 1,057,957,000 | ||
Other investments, at fair value | 37,731,000 | 82,701,000 | ||
Total investments in securities | 2,995,939,000 | 2,647,512,000 | ||
Cash and cash equivalents | 7,989,000 | 8,243,000 | 20,094,000 | 28,594,000 |
Restricted cash and cash equivalents | 541,136,000 | 298,940,000 | ||
Investment in subsidiaries | 164,909,000 | 165,324,000 | ||
Due from brokers | 305,093,000 | 284,591,000 | ||
Derivative assets, at fair value | 73,372,000 | 27,432,000 | ||
Interest and dividends receivable | 3,774,000 | 6,505,000 | ||
Reinsurance balances receivable | 476,008,000 | 381,951,000 | ||
Deferred acquisition costs, net | 258,793,000 | 221,618,000 | ||
Amounts due from (to) affiliates | 876,000 | 8,536,000 | ||
Other assets | 8,818,000 | 11,000,000 | ||
Total assets | 4,836,707,000 | 4,061,652,000 | ||
Liabilities | ||||
Accounts payable and accrued expenses | 42,674,000 | 9,130,000 | ||
Reinsurance balances payable | 41,614,000 | 43,171,000 | ||
Deposit liabilities | 129,133,000 | 104,905,000 | ||
Unearned premium reserves | 649,518,000 | 557,076,000 | ||
Loss and loss adjustment expense reserves | 720,570,000 | 605,129,000 | ||
Securities sold, not yet purchased, at fair value | 394,278,000 | 92,668,000 | ||
Securities sold under an agreement to repurchase | 29,618,000 | |||
Due to brokers | 770,205,000 | 899,601,000 | ||
Derivative liabilities, at fair value | 14,503,000 | 16,050,000 | ||
Interest and dividends payable | 1,220,000 | 386,000 | ||
Senior notes payable, net of deferred costs | 0 | 0 | ||
Total liabilities | 2,793,333,000 | 2,328,116,000 | ||
Redeemable noncontrolling interests in related party | 108,219,000 | |||
Shareholders’ equity | ||||
Common shares | 1,250,000 | 1,250,000 | ||
Treasury Stock, Value | 0 | 0 | ||
Additional paid-in capital | 1,531,770,000 | 1,528,827,000 | ||
Retained earnings | 396,728,000 | 167,785,000 | ||
Shareholders’ equity attributable to Third Point Re common shareholders | 1,929,748,000 | 1,697,862,000 | ||
Noncontrolling interests in related party | 5,407,000 | 35,674,000 | ||
Total shareholders' equity | 1,935,155,000 | 1,733,536,000 | ||
Total liabilities, noncontrolling interests and shareholders' equity | 4,836,707,000 | 4,061,652,000 | ||
Eliminations | ||||
Assets | ||||
Equity securities | 0 | 0 | ||
Debt securities | 0 | 0 | ||
Other investments, at fair value | 0 | 0 | ||
Total investments in securities | 0 | 0 | ||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Restricted cash and cash equivalents | 0 | 0 | ||
Investment in subsidiaries | (2,096,648,000) | (1,848,024,000) | ||
Due from brokers | 0 | 0 | ||
Derivative assets, at fair value | 0 | 0 | ||
Interest and dividends receivable | 0 | 0 | ||
Reinsurance balances receivable | 0 | 0 | ||
Deferred acquisition costs, net | 0 | 0 | ||
Amounts due from (to) affiliates | 0 | 0 | ||
Other assets | 0 | 0 | ||
Total assets | (2,096,648,000) | (1,848,024,000) | ||
Liabilities | ||||
Accounts payable and accrued expenses | 0 | 0 | ||
Reinsurance balances payable | 0 | 0 | ||
Deposit liabilities | 0 | 0 | ||
Unearned premium reserves | 0 | 0 | ||
Loss and loss adjustment expense reserves | 0 | 0 | ||
Securities sold, not yet purchased, at fair value | 0 | 0 | ||
Securities sold under an agreement to repurchase | 0 | |||
Due to brokers | 0 | 0 | ||
Derivative liabilities, at fair value | 0 | 0 | ||
Interest and dividends payable | 0 | 0 | ||
Senior notes payable, net of deferred costs | 0 | 0 | ||
Total liabilities | 0 | 0 | ||
Redeemable noncontrolling interests in related party | 0 | |||
Shareholders’ equity | ||||
Common shares | (1,250,000) | (1,250,000) | ||
Treasury Stock, Value | 0 | 0 | ||
Additional paid-in capital | (1,696,867,000) | (1,694,283,000) | ||
Retained earnings | (398,531,000) | (152,491,000) | ||
Shareholders’ equity attributable to Third Point Re common shareholders | (2,096,648,000) | (1,848,024,000) | ||
Noncontrolling interests in related party | 0 | 0 | ||
Total shareholders' equity | (2,096,648,000) | (1,848,024,000) | ||
Total liabilities, noncontrolling interests and shareholders' equity | (2,096,648,000) | $ (1,848,024,000) | ||
Financial Guarantee [Member] | TPRUSA | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Debt issued | $ 115,000,000 |
Supplemental guarantor infor118
Supplemental guarantor information - Condensed Consolidating Statement of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues | |||||||||||
Gross premiums written | $ 164,163 | $ 174,539 | $ 156,564 | $ 146,354 | $ 80,779 | $ 142,573 | $ 196,866 | $ 197,156 | $ 641,620 | $ 617,374 | $ 702,414 |
Gross premiums ceded | 75 | 0 | (1,425) | (1,125) | 27 | (927) | (1,425) | 0 | (2,475) | (2,325) | (1,876) |
Net premiums written | 164,238 | 174,539 | 155,139 | 145,229 | 80,806 | 141,646 | 195,441 | 197,156 | 639,145 | 615,049 | 700,538 |
Change in net unearned premium reserves | (34,722) | (68,564) | 18,419 | (7,220) | 111,277 | (13,463) | (62,319) | (60,354) | (92,087) | (24,859) | (97,714) |
Net premiums earned | 129,516 | 105,975 | 173,558 | 138,009 | 192,083 | 128,183 | 133,122 | 136,802 | 547,058 | 590,190 | 602,824 |
Net investment income (loss) | 67,150 | 88,968 | 107,325 | 128,510 | (35,767) | 88,356 | 86,346 | (40,110) | 391,953 | 98,825 | (28,074) |
Equity in earnings (losses) of subsidiaries | 0 | 0 | 0 | ||||||||
Total revenues | 196,666 | 194,943 | 280,883 | 266,519 | 156,316 | 216,539 | 219,468 | 96,692 | 939,011 | 689,015 | 574,750 |
Expenses | |||||||||||
Loss and loss adjustment expenses incurred, net | 99,509 | 77,275 | 107,379 | 85,895 | 122,110 | 85,015 | 104,131 | 84,676 | 370,058 | 395,932 | 415,191 |
Acquisition costs, net | 31,837 | 33,974 | 68,641 | 54,452 | 76,854 | 45,127 | 48,482 | 51,687 | 188,904 | 222,150 | 191,216 |
General and administrative expenses | 14,299 | 13,218 | 15,014 | 10,572 | 5,482 | 12,354 | 10,243 | 11,288 | 53,103 | 39,367 | 46,033 |
Other expenses | 3,822 | 3,846 | 2,105 | 2,901 | 2,161 | 347 | 3,173 | 2,706 | 12,674 | 8,387 | 8,614 |
Interest expense | 2,074 | 2,074 | 2,051 | 2,026 | 2,068 | 2,069 | 2,046 | 2,048 | 8,225 | 8,231 | 7,236 |
Foreign exchange (gains) losses | (2,067) | (5,437) | (4,781) | (15) | 5,162 | 3,905 | 8,068 | 2,386 | (12,300) | 19,521 | 3,196 |
Total expenses | 153,608 | 135,824 | 199,971 | 155,861 | 203,513 | 141,007 | 160,007 | 150,019 | 645,264 | 654,546 | 665,094 |
Income (loss) before income tax (expense) benefit | 43,058 | 59,119 | 80,912 | 110,658 | (47,197) | 75,532 | 59,461 | (53,327) | 293,747 | 34,469 | (90,344) |
Income tax (expense) benefit | 2,104 | (3,475) | (5,307) | (5,298) | 272 | (2,484) | (5,310) | 1,929 | (11,976) | (5,593) | 2,905 |
Net income (loss) | 45,162 | 55,644 | 75,605 | 105,360 | (46,925) | 73,048 | 54,151 | (51,398) | 281,771 | 28,876 | (87,439) |
Net (income) loss attributable to noncontrolling interests in related party | (813) | (959) | (1,027) | (1,174) | 232 | (967) | (775) | 269 | (3,973) | (1,241) | 49 |
Net income (loss) available to Third Point Re common shareholders | $ 44,349 | $ 54,685 | $ 74,578 | $ 104,186 | $ (46,693) | $ 72,081 | $ 53,376 | $ (51,129) | 277,798 | 27,635 | (87,390) |
Reportable Legal Entities | Parent Guarantor | |||||||||||
Revenues | |||||||||||
Gross premiums written | 0 | 0 | 0 | ||||||||
Gross premiums ceded | 0 | 0 | 0 | ||||||||
Net premiums written | 0 | 0 | 0 | ||||||||
Change in net unearned premium reserves | 0 | 0 | 0 | ||||||||
Net premiums earned | 0 | 0 | 0 | ||||||||
Net investment income (loss) | 0 | 0 | 0 | ||||||||
Equity in earnings (losses) of subsidiaries | 283,088 | 32,347 | (79,053) | ||||||||
Total revenues | 283,088 | 32,347 | (79,053) | ||||||||
Expenses | |||||||||||
Loss and loss adjustment expenses incurred, net | 0 | 0 | 0 | ||||||||
Acquisition costs, net | 0 | 0 | 0 | ||||||||
General and administrative expenses | 5,290 | 4,712 | 8,337 | ||||||||
Other expenses | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Foreign exchange (gains) losses | 0 | 0 | 0 | ||||||||
Total expenses | 5,290 | 4,712 | 8,337 | ||||||||
Income (loss) before income tax (expense) benefit | 277,798 | 27,635 | (87,390) | ||||||||
Income tax (expense) benefit | 0 | 0 | 0 | ||||||||
Net income (loss) | 277,798 | 27,635 | (87,390) | ||||||||
Net (income) loss attributable to noncontrolling interests in related party | 0 | 0 | 0 | ||||||||
Net income (loss) available to Third Point Re common shareholders | 277,798 | 27,635 | (87,390) | ||||||||
Reportable Legal Entities | TPRUSA | |||||||||||
Revenues | |||||||||||
Gross premiums written | 0 | 0 | 0 | ||||||||
Gross premiums ceded | 0 | 0 | 0 | ||||||||
Net premiums written | 0 | 0 | 0 | ||||||||
Change in net unearned premium reserves | 0 | 0 | 0 | ||||||||
Net premiums earned | 0 | 0 | 0 | ||||||||
Net investment income (loss) | 0 | 0 | 0 | ||||||||
Equity in earnings (losses) of subsidiaries | 22,309 | 2,701 | (7,510) | ||||||||
Total revenues | 22,309 | 2,701 | (7,510) | ||||||||
Expenses | |||||||||||
Loss and loss adjustment expenses incurred, net | 0 | 0 | 0 | ||||||||
Acquisition costs, net | 0 | 0 | 0 | ||||||||
General and administrative expenses | 49 | 40 | 231 | ||||||||
Other expenses | 0 | 0 | 0 | ||||||||
Interest expense | 8,225 | 8,231 | 7,236 | ||||||||
Foreign exchange (gains) losses | 0 | 0 | 0 | ||||||||
Total expenses | 8,274 | 8,271 | 7,467 | ||||||||
Income (loss) before income tax (expense) benefit | 14,035 | (5,570) | (14,977) | ||||||||
Income tax (expense) benefit | 3,062 | 2,895 | 2,613 | ||||||||
Net income (loss) | 17,097 | (2,675) | (12,364) | ||||||||
Net (income) loss attributable to noncontrolling interests in related party | 0 | 0 | 0 | ||||||||
Net income (loss) available to Third Point Re common shareholders | 17,097 | (2,675) | (12,364) | ||||||||
Reportable Legal Entities | Non-Guarantor Subsidiaries | |||||||||||
Revenues | |||||||||||
Gross premiums written | 641,620 | 617,374 | 702,414 | ||||||||
Gross premiums ceded | (2,475) | (2,325) | (1,876) | ||||||||
Net premiums written | 639,145 | 615,049 | 700,538 | ||||||||
Change in net unearned premium reserves | (92,087) | (24,859) | (97,714) | ||||||||
Net premiums earned | 547,058 | 590,190 | 602,824 | ||||||||
Net investment income (loss) | 391,953 | 98,825 | (28,074) | ||||||||
Equity in earnings (losses) of subsidiaries | (57) | (107) | (25) | ||||||||
Total revenues | 938,954 | 688,908 | 574,725 | ||||||||
Expenses | |||||||||||
Loss and loss adjustment expenses incurred, net | 370,058 | 395,932 | 415,191 | ||||||||
Acquisition costs, net | 188,904 | 222,150 | 191,216 | ||||||||
General and administrative expenses | 47,764 | 34,615 | 37,465 | ||||||||
Other expenses | 12,674 | 8,387 | 8,614 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Foreign exchange (gains) losses | (12,300) | 19,521 | 3,196 | ||||||||
Total expenses | 631,700 | 641,563 | 649,290 | ||||||||
Income (loss) before income tax (expense) benefit | 307,254 | 47,345 | (74,565) | ||||||||
Income tax (expense) benefit | (15,038) | (8,488) | 292 | ||||||||
Net income (loss) | 292,216 | 38,857 | (74,273) | ||||||||
Net (income) loss attributable to noncontrolling interests in related party | (3,973) | (1,241) | 49 | ||||||||
Net income (loss) available to Third Point Re common shareholders | 288,243 | 37,616 | (74,224) | ||||||||
Eliminations | |||||||||||
Revenues | |||||||||||
Gross premiums written | 0 | 0 | 0 | ||||||||
Gross premiums ceded | 0 | 0 | 0 | ||||||||
Net premiums written | 0 | 0 | 0 | ||||||||
Change in net unearned premium reserves | 0 | 0 | 0 | ||||||||
Net premiums earned | 0 | 0 | 0 | ||||||||
Net investment income (loss) | 0 | 0 | 0 | ||||||||
Equity in earnings (losses) of subsidiaries | (305,340) | (34,941) | 86,588 | ||||||||
Total revenues | (305,340) | (34,941) | 86,588 | ||||||||
Expenses | |||||||||||
Loss and loss adjustment expenses incurred, net | 0 | 0 | 0 | ||||||||
Acquisition costs, net | 0 | 0 | 0 | ||||||||
General and administrative expenses | 0 | 0 | 0 | ||||||||
Other expenses | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Foreign exchange (gains) losses | 0 | 0 | 0 | ||||||||
Total expenses | 0 | 0 | 0 | ||||||||
Income (loss) before income tax (expense) benefit | (305,340) | (34,941) | 86,588 | ||||||||
Income tax (expense) benefit | 0 | 0 | 0 | ||||||||
Net income (loss) | (305,340) | (34,941) | 86,588 | ||||||||
Net (income) loss attributable to noncontrolling interests in related party | 0 | 0 | 0 | ||||||||
Net income (loss) available to Third Point Re common shareholders | $ (305,340) | $ (34,941) | $ 86,588 |
Supplemental guarantor infor119
Supplemental guarantor information - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating activities | |||||||||||
Net income (loss) | $ 45,162 | $ 55,644 | $ 75,605 | $ 105,360 | $ (46,925) | $ 73,048 | $ 54,151 | $ (51,398) | $ 281,771 | $ 28,876 | $ (87,439) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||
Equity in earnings of subsidiaries | 0 | 0 | 0 | ||||||||
Share compensation expense | 3,599 | 8,938 | 10,871 | ||||||||
Net interest expense (income) on deposit liabilities | 2,800 | (164) | 6,471 | ||||||||
Net unrealized (gain) loss on investments and derivatives | (255,029) | (72,083) | 32,354 | ||||||||
Net realized gain on investments and derivatives | (225,016) | (33,179) | (16,655) | ||||||||
Foreign exchange (gains) losses | (2,067) | $ (5,437) | $ (4,781) | (15) | 5,162 | $ 3,905 | $ 8,068 | 2,386 | (12,300) | 19,521 | 3,196 |
Amortization of premium and accretion of discount, net | 473 | 5,118 | 324 | ||||||||
Changes in assets and liabilities: | |||||||||||
Reinsurance balances receivable | (86,606) | (86,612) | 8,768 | ||||||||
Deferred acquisition costs, net | (37,175) | (24,525) | (41,192) | ||||||||
Other assets | 7,671 | (5,003) | (7,815) | ||||||||
Interest and dividends receivable, net | 3,563 | 3,225 | (4,382) | ||||||||
Unearned premium reserves | 92,442 | 25,366 | 97,901 | ||||||||
Loss and loss adjustment expense reserves | (97,922) | (156,644) | (192,433) | ||||||||
Accounts payable and accrued expenses | 24,212 | (2,095) | 1,881 | ||||||||
Reinsurance balances payable | (1,463) | 19,786 | (2,548) | ||||||||
Amounts due from (to) affiliates | 0 | ||||||||||
Amounts due to affiliates | 0 | 0 | |||||||||
Net cash provided by (used in) operating activities | (78,536) | 4,771 | 187,776 | ||||||||
Investing activities | |||||||||||
Purchases of investments | (3,099,525) | (3,729,944) | (3,360,626) | ||||||||
Proceeds from sales of investments | 3,228,251 | 3,504,598 | 2,829,523 | ||||||||
Purchases of investments to cover short sales | (791,753) | (1,264,404) | (543,936) | ||||||||
Proceeds from short sales of investments | 1,048,552 | 1,046,422 | 792,344 | ||||||||
Change in due to/from brokers, net | (149,898) | 367,019 | (6,377) | ||||||||
Decrease in securities purchased under an agreement to sell | 0 | 0 | 29,852 | ||||||||
Increase (decrease) in securities sold under an agreement to repurchase | 29,618 | (8,944) | 8,944 | ||||||||
Change in restricted cash and cash equivalents | (242,196) | 31,975 | 86,392 | ||||||||
Contributed capital to subsidiaries | 0 | 0 | |||||||||
Proceeds from Contributed Capital | 0 | 0 | |||||||||
Net cash provided by (used in) investing activities | 23,049 | (53,278) | (163,884) | ||||||||
Financing activities | |||||||||||
Proceeds from issuance of Third Point Re common shares, net of costs | 1,505 | 5,141 | 4,332 | ||||||||
Purchases of Third Point Re common shares under share repurchase program | (40,864) | (7,389) | 0 | ||||||||
Proceeds from Issuance of Senior Long-term Debt | 113,220 | ||||||||||
Increase (decrease) in deposit liabilities, net | 19,113 | 22,023 | (65,842) | ||||||||
Change in total noncontrolling interests in related party, net | 73,979 | 18,276 | (24,137) | ||||||||
Noncontrolling interest in Catastrophe Fund | (59,792) | ||||||||||
Noncontrolling interest in Catastrophe Fund Manager | 0 | 0 | (59,792) | ||||||||
Dividend received by (paid to) parent | 0 | 0 | 0 | ||||||||
Net cash provided by (used in) financing activities | 53,733 | 38,051 | (32,219) | ||||||||
Net increase (decrease) in cash and cash equivalents | (1,754) | (10,456) | (8,327) | ||||||||
Cash and cash equivalents at beginning of year | 9,951 | 20,407 | 9,951 | 20,407 | 28,734 | ||||||
Cash and cash equivalents at end of year | 8,197 | 9,951 | 8,197 | 9,951 | 20,407 | ||||||
Reportable Legal Entities | Parent Guarantor | |||||||||||
Operating activities | |||||||||||
Net income (loss) | 277,798 | 27,635 | (87,390) | ||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||
Equity in earnings of subsidiaries | (283,088) | (32,347) | 79,053 | ||||||||
Share compensation expense | 298 | 543 | 542 | ||||||||
Net interest expense (income) on deposit liabilities | 0 | 0 | 0 | ||||||||
Net unrealized (gain) loss on investments and derivatives | 0 | 0 | 0 | ||||||||
Net realized gain on investments and derivatives | 0 | 0 | 0 | ||||||||
Foreign exchange (gains) losses | 0 | 0 | 0 | ||||||||
Amortization of premium and accretion of discount, net | 0 | 0 | 0 | ||||||||
Changes in assets and liabilities: | |||||||||||
Reinsurance balances receivable | 0 | 0 | 0 | ||||||||
Deferred acquisition costs, net | 0 | 0 | 0 | ||||||||
Other assets | (27) | (73) | 36 | ||||||||
Interest and dividends receivable, net | 0 | 0 | 0 | ||||||||
Unearned premium reserves | 0 | 0 | 0 | ||||||||
Loss and loss adjustment expense reserves | 0 | 0 | 0 | ||||||||
Accounts payable and accrued expenses | (388) | (1,985) | 1,910 | ||||||||
Reinsurance balances payable | 0 | 0 | 0 | ||||||||
Amounts due from (to) affiliates | 1,685 | ||||||||||
Amounts due to affiliates | 1,146 | (204) | |||||||||
Net cash provided by (used in) operating activities | (4,261) | (6,431) | (4,164) | ||||||||
Investing activities | |||||||||||
Purchases of investments | 0 | 0 | 0 | ||||||||
Proceeds from sales of investments | 0 | 0 | 0 | ||||||||
Purchases of investments to cover short sales | 0 | 0 | 0 | ||||||||
Proceeds from short sales of investments | 0 | 0 | 0 | ||||||||
Change in due to/from brokers, net | 0 | 0 | 0 | ||||||||
Decrease in securities purchased under an agreement to sell | 0 | ||||||||||
Increase (decrease) in securities sold under an agreement to repurchase | 0 | 0 | 0 | ||||||||
Change in restricted cash and cash equivalents | 0 | 0 | 0 | ||||||||
Contributed capital to subsidiaries | (5,000) | (158,000) | |||||||||
Proceeds from Contributed Capital | 0 | 0 | |||||||||
Net cash provided by (used in) investing activities | 0 | (5,000) | (158,000) | ||||||||
Financing activities | |||||||||||
Proceeds from issuance of Third Point Re common shares, net of costs | 1,505 | 5,141 | 4,332 | ||||||||
Purchases of Third Point Re common shares under share repurchase program | (40,864) | (7,389) | |||||||||
Proceeds from Issuance of Senior Long-term Debt | 0 | ||||||||||
Increase (decrease) in deposit liabilities, net | 0 | 0 | 0 | ||||||||
Change in total noncontrolling interests in related party, net | 0 | 0 | 0 | ||||||||
Noncontrolling interest in Catastrophe Fund | 0 | ||||||||||
Dividend received by (paid to) parent | 42,000 | 15,000 | 158,000 | ||||||||
Net cash provided by (used in) financing activities | 2,641 | 12,752 | 162,332 | ||||||||
Net increase (decrease) in cash and cash equivalents | (1,620) | 1,321 | 168 | ||||||||
Cash and cash equivalents at beginning of year | 1,629 | 308 | 1,629 | 308 | 140 | ||||||
Cash and cash equivalents at end of year | 9 | 1,629 | 9 | 1,629 | 308 | ||||||
Reportable Legal Entities | TPRUSA | |||||||||||
Operating activities | |||||||||||
Net income (loss) | 17,097 | (2,675) | (12,364) | ||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||
Equity in earnings of subsidiaries | (22,309) | (2,701) | 7,510 | ||||||||
Share compensation expense | 0 | 0 | 0 | ||||||||
Net interest expense (income) on deposit liabilities | 0 | 0 | 0 | ||||||||
Net unrealized (gain) loss on investments and derivatives | 0 | 0 | 0 | ||||||||
Net realized gain on investments and derivatives | 0 | 0 | 0 | ||||||||
Foreign exchange (gains) losses | 0 | 0 | 0 | ||||||||
Amortization of premium and accretion of discount, net | 178 | 178 | 157 | ||||||||
Changes in assets and liabilities: | |||||||||||
Reinsurance balances receivable | 0 | 0 | 0 | ||||||||
Deferred acquisition costs, net | 0 | 0 | 0 | ||||||||
Other assets | 5,507 | (2,894) | (1,947) | ||||||||
Interest and dividends receivable, net | (2) | 2 | 3,055 | ||||||||
Unearned premium reserves | 0 | 0 | 0 | ||||||||
Loss and loss adjustment expense reserves | 0 | 0 | 0 | ||||||||
Accounts payable and accrued expenses | (8,845) | 0 | (478) | ||||||||
Reinsurance balances payable | 0 | 0 | 0 | ||||||||
Amounts due from (to) affiliates | (173) | ||||||||||
Amounts due to affiliates | (8,806) | 8,164 | |||||||||
Net cash provided by (used in) operating activities | (17,180) | 74 | (4,240) | ||||||||
Investing activities | |||||||||||
Purchases of investments | 0 | 0 | 0 | ||||||||
Proceeds from sales of investments | 0 | 0 | 0 | ||||||||
Purchases of investments to cover short sales | 0 | 0 | 0 | ||||||||
Proceeds from short sales of investments | 0 | 0 | 0 | ||||||||
Change in due to/from brokers, net | 0 | 0 | 0 | ||||||||
Decrease in securities purchased under an agreement to sell | 0 | ||||||||||
Increase (decrease) in securities sold under an agreement to repurchase | 0 | 0 | 0 | ||||||||
Change in restricted cash and cash equivalents | 0 | 0 | 0 | ||||||||
Contributed capital to subsidiaries | 5,000 | (266,975) | |||||||||
Proceeds from Contributed Capital | (5,000) | 158,000 | |||||||||
Net cash provided by (used in) investing activities | 0 | 0 | (108,975) | ||||||||
Financing activities | |||||||||||
Proceeds from issuance of Third Point Re common shares, net of costs | 0 | 0 | 0 | ||||||||
Purchases of Third Point Re common shares under share repurchase program | 0 | 0 | |||||||||
Proceeds from Issuance of Senior Long-term Debt | 113,220 | ||||||||||
Increase (decrease) in deposit liabilities, net | 0 | 0 | 0 | ||||||||
Change in total noncontrolling interests in related party, net | 0 | 0 | 0 | ||||||||
Noncontrolling interest in Catastrophe Fund | 0 | ||||||||||
Dividend received by (paid to) parent | 17,300 | 0 | 0 | ||||||||
Net cash provided by (used in) financing activities | 17,300 | 0 | 113,220 | ||||||||
Net increase (decrease) in cash and cash equivalents | 120 | 74 | 5 | ||||||||
Cash and cash equivalents at beginning of year | 79 | 5 | 79 | 5 | 0 | ||||||
Cash and cash equivalents at end of year | 199 | 79 | 199 | 79 | 5 | ||||||
Reportable Legal Entities | Non-Guarantor Subsidiaries | |||||||||||
Operating activities | |||||||||||
Net income (loss) | 292,216 | 38,857 | (74,273) | ||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||
Equity in earnings of subsidiaries | 57 | 107 | 25 | ||||||||
Share compensation expense | 3,301 | 8,395 | 10,329 | ||||||||
Net interest expense (income) on deposit liabilities | 2,800 | (164) | 6,471 | ||||||||
Net unrealized (gain) loss on investments and derivatives | (255,029) | (72,083) | 32,354 | ||||||||
Net realized gain on investments and derivatives | (225,016) | (33,179) | (16,655) | ||||||||
Foreign exchange (gains) losses | (12,300) | 19,521 | 3,196 | ||||||||
Amortization of premium and accretion of discount, net | 295 | 4,940 | 167 | ||||||||
Changes in assets and liabilities: | |||||||||||
Reinsurance balances receivable | (86,606) | (86,612) | 8,768 | ||||||||
Deferred acquisition costs, net | (37,175) | (24,525) | (41,192) | ||||||||
Other assets | 2,191 | (2,036) | (5,904) | ||||||||
Interest and dividends receivable, net | 3,565 | 3,223 | (7,437) | ||||||||
Unearned premium reserves | 92,442 | 25,366 | 97,901 | ||||||||
Loss and loss adjustment expense reserves | (97,922) | (156,644) | (192,433) | ||||||||
Accounts payable and accrued expenses | 33,445 | (110) | 449 | ||||||||
Reinsurance balances payable | (1,463) | 19,786 | (2,548) | ||||||||
Amounts due from (to) affiliates | (1,512) | ||||||||||
Amounts due to affiliates | 7,660 | (7,960) | |||||||||
Net cash provided by (used in) operating activities | (57,095) | 11,128 | 196,180 | ||||||||
Investing activities | |||||||||||
Purchases of investments | (3,099,525) | (3,729,944) | (3,360,626) | ||||||||
Proceeds from sales of investments | 3,228,251 | 3,504,598 | 2,829,523 | ||||||||
Purchases of investments to cover short sales | (791,753) | (1,264,404) | (543,936) | ||||||||
Proceeds from short sales of investments | 1,048,552 | 1,046,422 | 792,344 | ||||||||
Change in due to/from brokers, net | (149,898) | 367,019 | (6,377) | ||||||||
Decrease in securities purchased under an agreement to sell | 29,852 | ||||||||||
Increase (decrease) in securities sold under an agreement to repurchase | 29,618 | (8,944) | 8,944 | ||||||||
Change in restricted cash and cash equivalents | (242,196) | 31,975 | 86,392 | ||||||||
Contributed capital to subsidiaries | 0 | (25) | |||||||||
Proceeds from Contributed Capital | 5,000 | 267,000 | |||||||||
Net cash provided by (used in) investing activities | 23,049 | (48,278) | 103,091 | ||||||||
Financing activities | |||||||||||
Proceeds from issuance of Third Point Re common shares, net of costs | 0 | 0 | 0 | ||||||||
Purchases of Third Point Re common shares under share repurchase program | 0 | 0 | |||||||||
Proceeds from Issuance of Senior Long-term Debt | 0 | ||||||||||
Increase (decrease) in deposit liabilities, net | 19,113 | 22,023 | (65,842) | ||||||||
Change in total noncontrolling interests in related party, net | 73,979 | 18,276 | (24,137) | ||||||||
Noncontrolling interest in Catastrophe Fund | (59,792) | ||||||||||
Dividend received by (paid to) parent | (59,300) | (15,000) | (158,000) | ||||||||
Net cash provided by (used in) financing activities | 33,792 | 25,299 | (307,771) | ||||||||
Net increase (decrease) in cash and cash equivalents | (254) | (11,851) | (8,500) | ||||||||
Cash and cash equivalents at beginning of year | 8,243 | 20,094 | 8,243 | 20,094 | 28,594 | ||||||
Cash and cash equivalents at end of year | 7,989 | 8,243 | 7,989 | 8,243 | 20,094 | ||||||
Eliminations | |||||||||||
Operating activities | |||||||||||
Net income (loss) | (305,340) | (34,941) | 86,588 | ||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||
Equity in earnings of subsidiaries | 305,340 | 34,941 | (86,588) | ||||||||
Share compensation expense | 0 | 0 | 0 | ||||||||
Net interest expense (income) on deposit liabilities | 0 | 0 | 0 | ||||||||
Net unrealized (gain) loss on investments and derivatives | 0 | 0 | 0 | ||||||||
Net realized gain on investments and derivatives | 0 | 0 | 0 | ||||||||
Foreign exchange (gains) losses | 0 | 0 | 0 | ||||||||
Amortization of premium and accretion of discount, net | 0 | 0 | 0 | ||||||||
Changes in assets and liabilities: | |||||||||||
Reinsurance balances receivable | 0 | 0 | 0 | ||||||||
Deferred acquisition costs, net | 0 | 0 | 0 | ||||||||
Other assets | 0 | 0 | 0 | ||||||||
Interest and dividends receivable, net | 0 | 0 | 0 | ||||||||
Unearned premium reserves | 0 | 0 | 0 | ||||||||
Loss and loss adjustment expense reserves | 0 | 0 | 0 | ||||||||
Accounts payable and accrued expenses | 0 | 0 | 0 | ||||||||
Reinsurance balances payable | 0 | 0 | 0 | ||||||||
Amounts due from (to) affiliates | 0 | ||||||||||
Amounts due to affiliates | 0 | 0 | |||||||||
Net cash provided by (used in) operating activities | 0 | 0 | 0 | ||||||||
Investing activities | |||||||||||
Purchases of investments | 0 | 0 | 0 | ||||||||
Proceeds from sales of investments | 0 | 0 | 0 | ||||||||
Purchases of investments to cover short sales | 0 | 0 | 0 | ||||||||
Proceeds from short sales of investments | 0 | 0 | 0 | ||||||||
Change in due to/from brokers, net | 0 | 0 | 0 | ||||||||
Decrease in securities purchased under an agreement to sell | 0 | ||||||||||
Increase (decrease) in securities sold under an agreement to repurchase | 0 | 0 | 0 | ||||||||
Change in restricted cash and cash equivalents | 0 | 0 | 0 | ||||||||
Contributed capital to subsidiaries | 0 | 425,000 | |||||||||
Proceeds from Contributed Capital | 0 | (425,000) | |||||||||
Net cash provided by (used in) investing activities | 0 | 0 | 0 | ||||||||
Financing activities | |||||||||||
Proceeds from issuance of Third Point Re common shares, net of costs | 0 | 0 | 0 | ||||||||
Purchases of Third Point Re common shares under share repurchase program | 0 | 0 | |||||||||
Proceeds from Issuance of Senior Long-term Debt | 0 | ||||||||||
Increase (decrease) in deposit liabilities, net | 0 | 0 | 0 | ||||||||
Change in total noncontrolling interests in related party, net | 0 | 0 | 0 | ||||||||
Noncontrolling interest in Catastrophe Fund | 0 | ||||||||||
Dividend received by (paid to) parent | 0 | 0 | 0 | ||||||||
Net cash provided by (used in) financing activities | 0 | 0 | 0 | ||||||||
Net increase (decrease) in cash and cash equivalents | 0 | 0 | 0 | ||||||||
Cash and cash equivalents at beginning of year | $ 0 | $ 0 | 0 | 0 | 0 | ||||||
Cash and cash equivalents at end of year | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Quarterly Financial Results (De
Quarterly Financial Results (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues | |||||||||||
Gross premiums written | $ 164,163 | $ 174,539 | $ 156,564 | $ 146,354 | $ 80,779 | $ 142,573 | $ 196,866 | $ 197,156 | $ 641,620 | $ 617,374 | $ 702,414 |
Gross premiums ceded | 75 | 0 | (1,425) | (1,125) | 27 | (927) | (1,425) | 0 | (2,475) | (2,325) | (1,876) |
Net premiums written | 164,238 | 174,539 | 155,139 | 145,229 | 80,806 | 141,646 | 195,441 | 197,156 | 639,145 | 615,049 | 700,538 |
Change in net unearned premium reserves | (34,722) | (68,564) | 18,419 | (7,220) | 111,277 | (13,463) | (62,319) | (60,354) | (92,087) | (24,859) | (97,714) |
Net premiums earned | 129,516 | 105,975 | 173,558 | 138,009 | 192,083 | 128,183 | 133,122 | 136,802 | 547,058 | 590,190 | 602,824 |
Net investment income (loss) | 67,150 | 88,968 | 107,325 | 128,510 | (35,767) | 88,356 | 86,346 | (40,110) | 391,953 | 98,825 | (28,074) |
Total revenues | 196,666 | 194,943 | 280,883 | 266,519 | 156,316 | 216,539 | 219,468 | 96,692 | 939,011 | 689,015 | 574,750 |
Expenses | |||||||||||
Loss and loss adjustment expenses incurred, net | 99,509 | 77,275 | 107,379 | 85,895 | 122,110 | 85,015 | 104,131 | 84,676 | 370,058 | 395,932 | 415,191 |
Acquisition costs, net | 31,837 | 33,974 | 68,641 | 54,452 | 76,854 | 45,127 | 48,482 | 51,687 | 188,904 | 222,150 | 191,216 |
General and administrative expenses | 14,299 | 13,218 | 15,014 | 10,572 | 5,482 | 12,354 | 10,243 | 11,288 | 53,103 | 39,367 | 46,033 |
Other expenses | 3,822 | 3,846 | 2,105 | 2,901 | 2,161 | 347 | 3,173 | 2,706 | 12,674 | 8,387 | 8,614 |
Interest expense | 2,074 | 2,074 | 2,051 | 2,026 | 2,068 | 2,069 | 2,046 | 2,048 | 8,225 | 8,231 | 7,236 |
Foreign currency (gain) loss | 2,067 | 5,437 | 4,781 | 15 | (5,162) | (3,905) | (8,068) | (2,386) | 12,300 | (19,521) | (3,196) |
Total expenses | 153,608 | 135,824 | 199,971 | 155,861 | 203,513 | 141,007 | 160,007 | 150,019 | 645,264 | 654,546 | 665,094 |
Income (loss) before income tax (expense) benefit | 43,058 | 59,119 | 80,912 | 110,658 | (47,197) | 75,532 | 59,461 | (53,327) | 293,747 | 34,469 | (90,344) |
Income tax (expense) benefit | 2,104 | (3,475) | (5,307) | (5,298) | 272 | (2,484) | (5,310) | 1,929 | (11,976) | (5,593) | 2,905 |
Net income (loss) | 45,162 | 55,644 | 75,605 | 105,360 | (46,925) | 73,048 | 54,151 | (51,398) | 281,771 | 28,876 | (87,439) |
Net (income) loss attributable to noncontrolling interests in related party | (813) | (959) | (1,027) | (1,174) | 232 | (967) | (775) | 269 | (3,973) | (1,241) | 49 |
Net income (loss) available to Third Point Re common shareholders | $ 44,349 | $ 54,685 | $ 74,578 | $ 104,186 | $ (46,693) | $ 72,081 | $ 53,376 | $ (51,129) | $ 277,798 | $ 27,635 | $ (87,390) |
Earnings (loss) per share available to Third Point Re common shareholders | |||||||||||
Basic (in dollars per share) | $ 0.44 | $ 0.54 | $ 0.73 | $ 1 | $ (0.45) | $ 0.69 | $ 0.51 | $ (0.49) | $ 2.71 | $ 0.26 | $ (0.84) |
Diluted (in dollars per share) | $ 0.42 | $ 0.52 | $ 0.71 | $ 0.98 | $ (0.45) | $ 0.68 | $ 0.51 | $ (0.49) | $ 2.64 | $ 0.26 | $ (0.84) |
Weighted average number of common shares used in the determination of earnings (loss) per share | |||||||||||
Basic (in shares) | 101,405,772 | 101,391,145 | 102,283,844 | 104,013,871 | 104,072,283 | 103,780,196 | 104,132,797 | 104,257,874 | 102,264,094 | 104,060,052 | 104,003,820 |
Diluted (in shares) | 105,524,115 | 104,679,574 | 104,569,226 | 105,701,599 | 104,072,283 | 105,795,313 | 105,233,921 | 104,257,874 | 105,227,038 | 105,563,784 | 104,003,820 |
Schedule I - Summary of Inve121
Schedule I - Summary of Investments - Other than Investments in Related Parties (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | $ 2,605,699 |
Fair value | 2,995,939 |
Balance sheet value | 2,995,939 |
Equity securities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 1,822,021 |
Fair value | 2,221,130 |
Balance sheet value | 2,221,130 |
Private Common Equity Securities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 4,445 |
Fair value | 4,794 |
Balance sheet value | 4,794 |
Private preferred equity securities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 42,269 |
Fair value | 57,126 |
Balance sheet value | 57,126 |
Total equities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 1,868,735 |
Fair value | 2,283,050 |
Balance sheet value | 2,283,050 |
Asset-backed securities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 249,254 |
Fair value | 225,499 |
Balance sheet value | 225,499 |
Bank debt | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 14,377 |
Fair value | 14,550 |
Balance sheet value | 14,550 |
Corporate bonds | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 78,794 |
Fair value | 77,086 |
Balance sheet value | 77,086 |
U.S. Treasury securities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 253,746 |
Fair value | 249,994 |
Balance sheet value | 249,994 |
Sovereign debt | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 109,786 |
Fair value | 102,569 |
Balance sheet value | 102,569 |
Other debt securities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 5,365 |
Fair value | 5,460 |
Balance sheet value | 5,460 |
Total debt securities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 711,322 |
Fair value | 675,158 |
Balance sheet value | 675,158 |
Investments in limited partnerships | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 11,090 |
Fair value | 17,008 |
Balance sheet value | 17,008 |
Options | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 5,123 |
Fair value | 4,951 |
Balance sheet value | 4,951 |
Rights and warrants | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 0 |
Fair value | 603 |
Balance sheet value | 603 |
Real estate | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 6,770 |
Fair value | 6,831 |
Balance sheet value | 6,831 |
Trade claims | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 998 |
Fair value | 7,496 |
Balance sheet value | 7,496 |
Investment in Kiskadee Fund | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 1,661 |
Balance sheet value | 842 |
Total other investments | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 25,642 |
Fair value | 37,731 |
Balance sheet value | $ 37,731 |
Schedule III - Supplementary122
Schedule III - Supplementary Insurance Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred acquisition costs, net | $ 258,793 | $ 221,618 | $ 197,093 |
Loss and loss adjustment expense reserves | 720,570 | 605,129 | 466,047 |
Unearned premium | 649,518 | 557,076 | 531,710 |
Net premiums earned | 547,058 | 590,190 | 602,824 |
Net investment income (loss) | 391,953 | 98,825 | (28,074) |
Other expenses | 12,674 | 8,387 | 8,614 |
Loss and loss adjustment expenses incurred, net | 370,058 | 395,932 | 415,191 |
Amortization of deferred acquisition costs, net | 188,904 | 222,150 | 191,216 |
Other operating expenses | 53,103 | 39,367 | 46,033 |
Net premiums written | 639,145 | 615,049 | 700,538 |
Property and Casualty Reinsurance | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred acquisition costs, net | 258,793 | 221,618 | 197,093 |
Loss and loss adjustment expense reserves | 720,570 | 605,129 | 466,047 |
Unearned premium | 649,518 | 557,076 | 531,710 |
Net premiums earned | 547,058 | 590,190 | 602,816 |
Net investment income (loss) | 114,435 | 16,931 | (10,810) |
Other expenses | 12,674 | 8,387 | 8,614 |
Loss and loss adjustment expenses incurred, net | 370,058 | 395,932 | 415,041 |
Amortization of deferred acquisition costs, net | 188,904 | 222,150 | 191,217 |
Other operating expenses | 30,656 | 22,160 | 24,815 |
Net premiums written | 639,145 | 615,049 | 700,582 |
Catastrophe Risk Management | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred acquisition costs, net | 0 | 0 | 0 |
Loss and loss adjustment expense reserves | 0 | 0 | 0 |
Unearned premium | 0 | 0 | 0 |
Net premiums earned | 0 | 0 | 8 |
Net investment income (loss) | 0 | 0 | 69 |
Other expenses | 0 | 0 | 0 |
Loss and loss adjustment expenses incurred, net | 0 | 0 | 150 |
Amortization of deferred acquisition costs, net | 0 | 0 | (1) |
Other operating expenses | 0 | 0 | 447 |
Net premiums written | 0 | 0 | (44) |
Corporate | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred acquisition costs, net | 0 | 0 | 0 |
Loss and loss adjustment expense reserves | 0 | 0 | 0 |
Unearned premium | 0 | 0 | 0 |
Net premiums earned | 0 | 0 | 0 |
Net investment income (loss) | 277,518 | 81,894 | (17,333) |
Other expenses | 0 | 0 | 0 |
Loss and loss adjustment expenses incurred, net | 0 | 0 | 0 |
Amortization of deferred acquisition costs, net | 0 | 0 | 0 |
Other operating expenses | 22,447 | 17,207 | 20,771 |
Net premiums written | $ 0 | $ 0 | $ 0 |
Schedule IV - Reinsurance (Deta
Schedule IV - Reinsurance (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||||||
Ceded to other companies | $ (75) | $ 0 | $ 1,425 | $ 1,125 | $ (27) | $ 927 | $ 1,425 | $ 0 | $ 2,475 | $ 2,325 | $ 1,876 |
Assumed from other companies | 164,163 | 174,539 | 156,564 | 146,354 | 80,779 | 142,573 | 196,866 | 197,156 | 641,620 | 617,374 | 702,414 |
Net premiums written | $ 164,238 | $ 174,539 | $ 155,139 | $ 145,229 | $ 80,806 | $ 141,646 | $ 195,441 | $ 197,156 | 639,145 | 615,049 | 700,538 |
Property and Casualty Reinsurance | |||||||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||||||
Direct gross premiums written | 0 | 0 | 0 | ||||||||
Ceded to other companies | 2,475 | 2,325 | 1,876 | ||||||||
Assumed from other companies | 641,620 | 617,374 | 702,414 | ||||||||
Net premiums written | $ 639,145 | $ 615,049 | $ 700,538 | ||||||||
Percentage of amount assumed to net | 100.00% | 100.00% | 100.00% |