Document_and_Entity_Informatio
Document and Entity Information (USD $) | 9 Months Ended | |
In Billions, except Share data in Millions, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2012 |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'HCC INSURANCE HOLDINGS INC/DE/ | ' |
Entity Central Index Key | '0000888919 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Public Float | ' | $3.10 |
Entity Common Stock, Shares Outstanding | 100.2 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Investments | ' | ' |
Fixed maturity securities - available for sale, at fair value (amortized cost: 2013 - $6,059,853 and 2012 - $5,856,432) | $6,194,625 | $6,281,781 |
Equity securities - available for sale, at fair value (cost: 2013 - $395,018 and 2012 - $275,827) | 433,345 | 284,639 |
Short-term investments, at cost (approximates fair value) | 229,191 | 363,053 |
Other investments, at fair value (cost: 2012 - $18,391) | 0 | 20,925 |
Total investments | 6,857,161 | 6,950,398 |
Cash | 55,037 | 71,390 |
Restricted cash and securities | 121,231 | 101,480 |
Premium, claims and other receivables | 600,311 | 549,725 |
Reinsurance recoverables | 1,215,577 | 1,071,222 |
Ceded unearned premium | 301,891 | 256,988 |
Ceded life and annuity benefits | 57,137 | 58,641 |
Deferred policy acquisition costs | 204,740 | 191,960 |
Goodwill | 894,851 | 885,860 |
Other assets | 140,843 | 130,143 |
Total assets | 10,448,779 | 10,267,807 |
LIABILITIES | ' | ' |
Loss and loss adjustment expense payable | 4,021,847 | 3,767,850 |
Life and annuity policy benefits | 57,137 | 58,641 |
Reinsurance, premium and claims payable | 315,638 | 294,621 |
Unearned premium | 1,165,580 | 1,069,956 |
Deferred ceding commissions | 86,804 | 74,609 |
Notes payable | 654,059 | 583,944 |
Accounts payable and accrued liabilities | 559,635 | 875,574 |
Total liabilities | 6,860,700 | 6,725,195 |
SHAREHOLDERS' EQUITY | ' | ' |
Common stock, $1.00 par value; 250,000 shares authorized (shares issued: 2013 - 125,423 and 2012 - 125,114; outstanding: 2013 - 100,182 and 2012 - 100,928) | 125,423 | 125,114 |
Additional paid-in capital | 1,068,338 | 1,052,253 |
Retained earnings | 2,992,720 | 2,756,166 |
Accumulated other comprehensive income | 130,002 | 295,271 |
Treasury stock, at cost (shares: 2013 - 25,241 and 2012 - 24,186) | -728,404 | -686,192 |
Total shareholders' equity | 3,588,079 | 3,542,612 |
Total liabilities and shareholders' equity | $10,448,779 | $10,267,807 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Per Share data, unless otherwise specified | ||
Investments | ' | ' |
Fixed maturity securities, available for sale, amortized cost | $6,059,853 | $5,856,432 |
Equity securities, available for sale, cost | 395,018 | 275,827 |
Other investments, cost | $0 | $18,391 |
SHAREHOLDERS' EQUITY | ' | ' |
Common stock, par value | $1 | $1 |
Common stock, shares authorized | 250,000 | 250,000 |
Common stock, shares issued | 125,423 | 125,114 |
Common stock, shares outstanding | 100,182 | 100,928 |
Treasury stock | 25,241 | 24,186 |
Consolidated_Statement_of_Earn
Consolidated Statement of Earnings (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
REVENUE | ' | ' | ' | ' |
Net earned premium | $556,668 | $563,650 | $1,679,210 | $1,676,122 |
Other revenue | 79,809 | 68,023 | 221,064 | 197,362 |
Net investment income | 54,208 | 56,342 | 165,641 | 166,642 |
Other operating income | 7,679 | 10,840 | 24,308 | 23,229 |
Net realized investment gain | 17,922 | 1,472 | 31,115 | 8,519 |
Other-than-temporary impairment credit losses | 0 | -631 | 0 | -1,028 |
Total revenue | 636,477 | 631,673 | 1,900,274 | 1,873,484 |
EXPENSE | ' | ' | ' | ' |
Net loss and loss adjustment expense | 320,376 | 304,014 | 992,547 | 969,767 |
Policy acquisition costs, net | 65,642 | 67,620 | 203,387 | 211,554 |
Other expense | 176,001 | 174,040 | 491,400 | 498,819 |
Other operating expense | 103,785 | 100,458 | 268,357 | 268,164 |
Interest expense | 6,574 | 5,962 | 19,656 | 19,101 |
Total expense | 496,377 | 478,054 | 1,483,947 | 1,468,586 |
Earnings before income taxes | 140,100 | 153,619 | 416,327 | 404,898 |
Income tax expense | 41,925 | 46,557 | 124,140 | 121,759 |
Net earnings | $98,175 | $107,062 | $292,187 | $283,139 |
Earnings per common share | ' | ' | ' | ' |
Basic | $0.98 | $1.06 | $2.91 | $2.77 |
Diluted | $0.98 | $1.05 | $2.90 | $2.76 |
Consolidated_Statement_of_Comp
Consolidated Statement of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of Income and Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net earnings | $98,175 | $107,062 | $292,187 | $283,139 |
Investment gains (losses): | ' | ' | ' | ' |
Investment gains (losses) during the period | 14,948 | 91,185 | -232,481 | 152,498 |
Income tax charge (benefit) | 4,917 | 32,274 | -82,526 | 54,078 |
Investments gains (losses), net of tax | 10,031 | 58,911 | -149,955 | 98,420 |
Less reclassification adjustments for: | ' | ' | ' | ' |
Gains included in net earnings | 17,922 | 832 | 31,115 | 7,491 |
Income tax charge | 6,272 | 291 | 10,890 | 2,622 |
Gains included in net earnings, net of tax | 11,650 | 541 | 20,225 | 4,869 |
Net unrealized investment gains (losses) | -1,619 | 58,370 | -170,180 | 93,551 |
Foreign currency translation adjustment | 5,410 | -141 | 4,265 | -3,454 |
Income tax benefit | -92 | -234 | -646 | -483 |
Foreign currency translation adjustment, net of tax | 5,502 | 93 | 4,911 | -2,971 |
Other comprehensive income (loss) | 3,883 | 58,463 | -165,269 | 90,580 |
Comprehensive income (loss) | $102,058 | $165,525 | $126,918 | $373,719 |
Consolidated_Statement_of_Chan
Consolidated Statement of Changes in Shareholders' Equity (USD $) | Total | Common stock [Member] | Additional paid-in capital [Member] | Retained earnings [Member] | Accumulated other comprehensive income [Member] | Treasury stock [Member] |
In Thousands | ||||||
Balance at Dec. 31, 2012 | $3,542,612 | $125,114 | $1,052,253 | $2,756,166 | $295,271 | ($686,192) |
Net earnings | 292,187 | ' | ' | 292,187 | ' | ' |
Other Comprehensive Loss Net Of Tax | -165,269 | ' | ' | ' | -165,269 | ' |
Issuance of 291 shares for exercise of options, including tax effect | 8,725 | 291 | 8,434 | ' | ' | ' |
Purchase of 1,055 common shares | -42,212 | ' | ' | ' | ' | -42,212 |
Stock-based compensation | 7,669 | 18 | 7,651 | ' | ' | ' |
Cash dividends declared, $0.555 per share | -55,633 | ' | ' | -55,633 | ' | ' |
Balance at Sep. 30, 2013 | $3,588,079 | $125,423 | $1,068,338 | $2,992,720 | $130,002 | ($728,404) |
Consolidated_Statement_of_Chan1
Consolidated Statement of Changes in Shareholders' Equity (Parenthetical) (USD $) | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 |
Issuance of shares for exercise of options | 291 |
Common shares purchased | 1,055 |
Cash dividends declared | $0.56 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Operating activities | ' | ' |
Net earnings | $292,187 | $283,139 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ' | ' |
Change in premium, claims and other receivables | -52,395 | 6,623 |
Change in reinsurance recoverables | -138,103 | 47,149 |
Change in ceded unearned premium | -44,809 | -39,918 |
Change in loss and loss adjustment expense payable | 241,126 | 16,052 |
Change in unearned premium | 95,395 | 87,177 |
Change in reinsurance, premium and claims payable, excluding restricted cash | 21,516 | -32,743 |
Change in accounts payable and accrued liabilities | -145,740 | 79,500 |
Stock-based compensation expense | 10,100 | 10,361 |
Depreciation and amortization expense | 13,962 | 13,919 |
Gain on investments | -31,115 | -7,491 |
Other, net | 9,288 | 32,267 |
Cash provided by operating activities | 271,412 | 496,035 |
Investing activities | ' | ' |
Sales of available for sale fixed maturity securities | 337,895 | 293,969 |
Sales of equity securities | 95,989 | 7,145 |
Sales of other investments | 23,719 | 6,974 |
Maturity or call of available for sale fixed maturity securities | 488,817 | 504,583 |
Maturity or call of held to maturity fixed maturity securities | 0 | 28,511 |
Cost of available for sale fixed maturity securities acquired | -1,109,233 | -1,056,909 |
Cost of equity securities acquired | -226,601 | -205,092 |
Change in short-term investments | 134,515 | -5,401 |
Payments for purchase of businesses, net of cash received | -8,214 | -32,590 |
Other, net | -5,248 | -9,885 |
Cash used by investing activities | -268,361 | -468,695 |
Financing activities | ' | ' |
Advances on line of credit | 130,000 | 140,000 |
Payments on line of credit | -60,000 | -70,000 |
Sale of common stock | 8,725 | 40,105 |
Purchase of common stock | -47,869 | -135,151 |
Dividends paid | -49,773 | -47,617 |
Other, net | -487 | 5,066 |
Cash used by financing activities | -19,404 | -67,597 |
Net decrease in cash | -16,353 | -40,257 |
Cash at beginning of year | 71,390 | 104,550 |
Cash at end of period | $55,037 | $64,293 |
General_Information
General Information | 9 Months Ended |
Sep. 30, 2013 | |
General Information [Abstract] | ' |
General Information | ' |
(1) General Information | |
HCC Insurance Holdings, Inc. (HCC) and its subsidiaries (collectively we, us or our) include domestic and foreign property and casualty and life insurance companies and underwriting agencies with offices in the United States, the United Kingdom, Spain and Ireland. We underwrite a variety of largely non-correlated specialty insurance products, including property and casualty, accident and health, surety and credit product lines, in approximately 180 countries. We market our products through a network of independent agents and brokers, through managing general agents owned by the company, and directly to customers. In addition, we assume insurance written by other insurance companies. | |
Basis of Presentation | |
Our unaudited consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) and include the accounts of HCC and its subsidiaries. We have made all adjustments that, in our opinion, are necessary for a fair statement of results of the interim periods, and all such adjustments are of a normal recurring nature. All significant intercompany balances and transactions have been eliminated in consolidation. The consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2012. The consolidated balance sheet at December 31, 2012 was derived from the audited financial statements but does not include all disclosures required by GAAP. | |
Management must make estimates and assumptions that affect amounts reported in our consolidated financial statements and in disclosures of contingent assets and liabilities. Ultimate results could differ from those estimates. | |
General_Information_Details_Te
General Information (Details Textuals) | 9 Months Ended |
Sep. 30, 2013 | |
General Information [Abstract] | ' |
Number of countries in which The Company underwrites non-correlated specialty insurance products | 180 |
Investments
Investments | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||
Investment [Abstract] | ' | |||||||||||||||||||||
Investments | ' | |||||||||||||||||||||
(2) Investments | ||||||||||||||||||||||
The cost or amortized cost, gross unrealized gain or loss, and fair value of our available for sale fixed maturity and equity securities were as follows: | ||||||||||||||||||||||
Cost or | Gross | Gross | ||||||||||||||||||||
amortized | unrealized | unrealized | ||||||||||||||||||||
cost | gain | loss | Fair value | |||||||||||||||||||
30-Sep-13 | ||||||||||||||||||||||
U.S. government and government agency securities | $ | 115,109 | $ | 2,698 | $ | -302 | $ | 117,505 | ||||||||||||||
Fixed maturity securities of states, municipalities and | ||||||||||||||||||||||
political subdivisions | 965,526 | 55,813 | -5,200 | 1,016,139 | ||||||||||||||||||
Special purpose revenue bonds of states, municipalities and | ||||||||||||||||||||||
political subdivisions | 2,258,661 | 81,517 | -43,340 | 2,296,838 | ||||||||||||||||||
Corporate securities | 1,267,387 | 40,314 | -9,997 | 1,297,704 | ||||||||||||||||||
Residential mortgage-backed securities | 588,696 | 17,671 | -13,410 | 592,957 | ||||||||||||||||||
Commercial mortgage-backed securities | 524,706 | 18,519 | -12,009 | 531,216 | ||||||||||||||||||
Asset-backed securities | 141,594 | 282 | -575 | 141,301 | ||||||||||||||||||
Foreign government securities | 198,174 | 3,089 | -298 | 200,965 | ||||||||||||||||||
Total fixed maturity securities | $ | 6,059,853 | $ | 219,903 | $ | -85,131 | $ | 6,194,625 | ||||||||||||||
Equity securities | $ | 395,018 | $ | 43,023 | $ | -4,696 | $ | 433,345 | ||||||||||||||
Cost or | Gross | Gross | ||||||||||||||||||||
amortized | unrealized | unrealized | ||||||||||||||||||||
cost | gain | loss | Fair value | |||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||
U.S. government and government agency securities | $ | 195,049 | $ | 4,560 | $ | -2 | $ | 199,607 | ||||||||||||||
Fixed maturity securities of states, municipalities and | ||||||||||||||||||||||
political subdivisions | 969,966 | 96,027 | -182 | 1,065,811 | ||||||||||||||||||
Special purpose revenue bonds of states, municipalities and | ||||||||||||||||||||||
political subdivisions | 2,033,947 | 168,772 | -2,388 | 2,200,331 | ||||||||||||||||||
Corporate securities | 1,247,282 | 69,243 | -1,355 | 1,315,170 | ||||||||||||||||||
Residential mortgage-backed securities | 632,665 | 32,560 | -338 | 664,887 | ||||||||||||||||||
Commercial mortgage-backed securities | 482,808 | 41,748 | -267 | 524,289 | ||||||||||||||||||
Asset-backed securities | 32,801 | 474 | 0 | 33,275 | ||||||||||||||||||
Foreign government securities | 261,914 | 16,515 | -18 | 278,411 | ||||||||||||||||||
Total fixed maturity securities | $ | 5,856,432 | $ | 429,899 | $ | -4,550 | $ | 6,281,781 | ||||||||||||||
Equity securities | $ | 275,827 | $ | 13,768 | $ | -4,956 | $ | 284,639 | ||||||||||||||
Substantially all of our fixed maturity securities are investment grade. The following table displays the gross unrealized losses and fair value of all available for sale securities that were in a continuous unrealized loss position for the periods indicated. | ||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||
Unrealized | Unrealized | Unrealized | ||||||||||||||||||||
Fair value | losses | Fair value | losses | Fair value | losses | |||||||||||||||||
30-Sep-13 | ||||||||||||||||||||||
Fixed maturity securities | ||||||||||||||||||||||
U.S. government and government agency | ||||||||||||||||||||||
securities | $ | 20,730 | $ | -302 | $ | 0 | $ | 0 | $ | 20,730 | $ | -302 | ||||||||||
Fixed maturity securities of states, | ||||||||||||||||||||||
municipalities and political subdivisions | 134,217 | -5,200 | 0 | 0 | 134,217 | -5,200 | ||||||||||||||||
Special purpose revenue bonds of states, | ||||||||||||||||||||||
municipalities and political subdivisions | 724,983 | -43,322 | 1,323 | -18 | 726,306 | -43,340 | ||||||||||||||||
Corporate securities | 307,327 | -9,331 | 14,821 | -666 | 322,148 | -9,997 | ||||||||||||||||
Residential mortgage-backed securities | 270,062 | -13,410 | 0 | 0 | 270,062 | -13,410 | ||||||||||||||||
Commercial mortgage-backed securities | 212,589 | -11,414 | 5,042 | -595 | 217,631 | -12,009 | ||||||||||||||||
Asset-backed securities | 49,647 | -575 | 0 | 0 | 49,647 | -575 | ||||||||||||||||
Foreign government securities | 74,354 | -298 | 0 | 0 | 74,354 | -298 | ||||||||||||||||
Equity securities | 95,697 | -4,277 | 5,711 | -419 | 101,408 | -4,696 | ||||||||||||||||
Total | $ | 1,889,606 | $ | -88,129 | $ | 26,897 | $ | -1,698 | $ | 1,916,503 | $ | -89,827 | ||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||
Unrealized | Unrealized | Unrealized | ||||||||||||||||||||
Fair value | losses | Fair value | losses | Fair value | losses | |||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||
Fixed maturity securities | ||||||||||||||||||||||
U.S. government and government agency | ||||||||||||||||||||||
securities | $ | 55,034 | $ | -2 | $ | 0 | $ | 0 | $ | 55,034 | $ | -2 | ||||||||||
Fixed maturity securities of states, | ||||||||||||||||||||||
municipalities and political subdivisions | 14,162 | -182 | 0 | 0 | 14,162 | -182 | ||||||||||||||||
Special purpose revenue bonds of states, | ||||||||||||||||||||||
municipalities and political subdivisions | 155,902 | -2,388 | 0 | 0 | 155,902 | -2,388 | ||||||||||||||||
Corporate securities | 85,245 | -1,220 | 2,616 | -135 | 87,861 | -1,355 | ||||||||||||||||
Residential mortgage-backed securities | 49,486 | -338 | 0 | 0 | 49,486 | -338 | ||||||||||||||||
Commercial mortgage-backed securities | 26,263 | -267 | 0 | 0 | 26,263 | -267 | ||||||||||||||||
Foreign government securities | 7,007 | -18 | 0 | 0 | 7,007 | -18 | ||||||||||||||||
Equity securities | 103,647 | -4,956 | 0 | 0 | 103,647 | -4,956 | ||||||||||||||||
Total | $ | 496,746 | $ | -9,371 | $ | 2,616 | $ | -135 | $ | 499,362 | $ | -9,506 | ||||||||||
A security has an impairment loss when its fair value is less than its cost or amortized cost at the balance sheet date. We evaluate our securities for possible other-than-temporary impairment losses at each quarter end. Our reviews cover all impaired securities where the loss exceeds $0.5 million and the loss either exceeds 10% of cost or the security had been in a loss position for longer than twelve consecutive months. We recognized no other-than-temporary impairment losses in the first nine months of 2013. We recognized $1.0 million and $0.6 million of other-than-temporary impairment losses in the first nine months and third quarter of 2012, respectively. | ||||||||||||||||||||||
We do not consider the $89.8 million of gross unrealized losses on fixed maturity and equity securities in our portfolio at September 30, 2013 to be other-than-temporary impairments because: 1) as of September 30, 2013, we have received all contractual interest and principal payments on the fixed maturity securities, 2) we do not intend to sell the securities, 3) it is more likely than not that we will not be required to sell the securities before recovery of their amortized cost or cost bases and 4) the unrealized loss primarily relates to non-credit factors, particularly the significant interest rate increases that occurred in mid-2013. | ||||||||||||||||||||||
The amortized cost and fair value of our fixed maturity securities at September 30, 2013, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The weighted-average life of our mortgage-backed and asset-backed securities was 5.9 years at September 30, 2013. | ||||||||||||||||||||||
Cost or amortized cost | Fair value | |||||||||||||||||||||
Due in 1 year or less | $ | 216,068 | $ | 219,092 | ||||||||||||||||||
Due after 1 year through 5 years | 1,098,887 | 1,139,408 | ||||||||||||||||||||
Due after 5 years through 10 years | 1,470,040 | 1,533,694 | ||||||||||||||||||||
Due after 10 years through 15 years | 1,016,530 | 1,036,012 | ||||||||||||||||||||
Due after 15 years | 1,003,332 | 1,000,945 | ||||||||||||||||||||
Securities with contractual maturities | 4,804,857 | 4,929,151 | ||||||||||||||||||||
Mortgage-backed and asset-backed securities | 1,254,996 | 1,265,474 | ||||||||||||||||||||
Total fixed maturity securities | $ | 6,059,853 | $ | 6,194,625 | ||||||||||||||||||
The sources of net investment income were as follows: | ||||||||||||||||||||||
Nine months ended September 30, | Three months ended September 30, | |||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Fixed maturity securities | ||||||||||||||||||||||
Taxable | $ | 75,407 | $ | 86,548 | $ | 24,385 | $ | 28,330 | ||||||||||||||
Exempt from U.S. income taxes | 85,063 | 80,163 | 28,988 | 27,291 | ||||||||||||||||||
Total fixed maturity securities | 160,470 | 166,711 | 53,373 | 55,621 | ||||||||||||||||||
Equity securities | 10,758 | 2,339 | 2,950 | 1,346 | ||||||||||||||||||
Short-term investments | 122 | 397 | 42 | 295 | ||||||||||||||||||
Other investment income | 350 | 1,699 | 31 | 831 | ||||||||||||||||||
Total investment income | 171,700 | 171,146 | 56,396 | 58,093 | ||||||||||||||||||
Investment expense | -6,059 | -4,504 | -2,188 | -1,751 | ||||||||||||||||||
Net investment income | $ | 165,641 | $ | 166,642 | $ | 54,208 | $ | 56,342 |
Investments_Tables
Investments (Tables) | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||
Investment [Abstract] | ' | |||||||||||||||||||||
Fixed Maturity & Equity Securities Available For Sale | ' | |||||||||||||||||||||
Cost or | Gross | Gross | ||||||||||||||||||||
amortized | unrealized | unrealized | ||||||||||||||||||||
cost | gain | loss | Fair value | |||||||||||||||||||
30-Sep-13 | ||||||||||||||||||||||
U.S. government and government agency securities | $ | 115,109 | $ | 2,698 | $ | -302 | $ | 117,505 | ||||||||||||||
Fixed maturity securities of states, municipalities and | ||||||||||||||||||||||
political subdivisions | 965,526 | 55,813 | -5,200 | 1,016,139 | ||||||||||||||||||
Special purpose revenue bonds of states, municipalities and | ||||||||||||||||||||||
political subdivisions | 2,258,661 | 81,517 | -43,340 | 2,296,838 | ||||||||||||||||||
Corporate securities | 1,267,387 | 40,314 | -9,997 | 1,297,704 | ||||||||||||||||||
Residential mortgage-backed securities | 588,696 | 17,671 | -13,410 | 592,957 | ||||||||||||||||||
Commercial mortgage-backed securities | 524,706 | 18,519 | -12,009 | 531,216 | ||||||||||||||||||
Asset-backed securities | 141,594 | 282 | -575 | 141,301 | ||||||||||||||||||
Foreign government securities | 198,174 | 3,089 | -298 | 200,965 | ||||||||||||||||||
Total fixed maturity securities | $ | 6,059,853 | $ | 219,903 | $ | -85,131 | $ | 6,194,625 | ||||||||||||||
Equity securities | $ | 395,018 | $ | 43,023 | $ | -4,696 | $ | 433,345 | ||||||||||||||
Cost or | Gross | Gross | ||||||||||||||||||||
amortized | unrealized | unrealized | ||||||||||||||||||||
cost | gain | loss | Fair value | |||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||
U.S. government and government agency securities | $ | 195,049 | $ | 4,560 | $ | -2 | $ | 199,607 | ||||||||||||||
Fixed maturity securities of states, municipalities and | ||||||||||||||||||||||
political subdivisions | 969,966 | 96,027 | -182 | 1,065,811 | ||||||||||||||||||
Special purpose revenue bonds of states, municipalities and | ||||||||||||||||||||||
political subdivisions | 2,033,947 | 168,772 | -2,388 | 2,200,331 | ||||||||||||||||||
Corporate securities | 1,247,282 | 69,243 | -1,355 | 1,315,170 | ||||||||||||||||||
Residential mortgage-backed securities | 632,665 | 32,560 | -338 | 664,887 | ||||||||||||||||||
Commercial mortgage-backed securities | 482,808 | 41,748 | -267 | 524,289 | ||||||||||||||||||
Asset-backed securities | 32,801 | 474 | 0 | 33,275 | ||||||||||||||||||
Foreign government securities | 261,914 | 16,515 | -18 | 278,411 | ||||||||||||||||||
Total fixed maturity securities | $ | 5,856,432 | $ | 429,899 | $ | -4,550 | $ | 6,281,781 | ||||||||||||||
Equity securities | $ | 275,827 | $ | 13,768 | $ | -4,956 | $ | 284,639 | ||||||||||||||
Gross unrealized losses and fair value of all available for sale fixed income securities loss that were in a continuous loss position | ' | |||||||||||||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||
Unrealized | Unrealized | Unrealized | ||||||||||||||||||||
Fair value | losses | Fair value | losses | Fair value | losses | |||||||||||||||||
30-Sep-13 | ||||||||||||||||||||||
Fixed maturity securities | ||||||||||||||||||||||
U.S. government and government agency | ||||||||||||||||||||||
securities | $ | 20,730 | $ | -302 | $ | 0 | $ | 0 | $ | 20,730 | $ | -302 | ||||||||||
Fixed maturity securities of states, | ||||||||||||||||||||||
municipalities and political subdivisions | 134,217 | -5,200 | 0 | 0 | 134,217 | -5,200 | ||||||||||||||||
Special purpose revenue bonds of states, | ||||||||||||||||||||||
municipalities and political subdivisions | 724,983 | -43,322 | 1,323 | -18 | 726,306 | -43,340 | ||||||||||||||||
Corporate securities | 307,327 | -9,331 | 14,821 | -666 | 322,148 | -9,997 | ||||||||||||||||
Residential mortgage-backed securities | 270,062 | -13,410 | 0 | 0 | 270,062 | -13,410 | ||||||||||||||||
Commercial mortgage-backed securities | 212,589 | -11,414 | 5,042 | -595 | 217,631 | -12,009 | ||||||||||||||||
Asset-backed securities | 49,647 | -575 | 0 | 0 | 49,647 | -575 | ||||||||||||||||
Foreign government securities | 74,354 | -298 | 0 | 0 | 74,354 | -298 | ||||||||||||||||
Equity securities | 95,697 | -4,277 | 5,711 | -419 | 101,408 | -4,696 | ||||||||||||||||
Total | $ | 1,889,606 | $ | -88,129 | $ | 26,897 | $ | -1,698 | $ | 1,916,503 | $ | -89,827 | ||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||
Unrealized | Unrealized | Unrealized | ||||||||||||||||||||
Fair value | losses | Fair value | losses | Fair value | losses | |||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||
Fixed maturity securities | ||||||||||||||||||||||
U.S. government and government agency | ||||||||||||||||||||||
securities | $ | 55,034 | $ | -2 | $ | 0 | $ | 0 | $ | 55,034 | $ | -2 | ||||||||||
Fixed maturity securities of states, | ||||||||||||||||||||||
municipalities and political subdivisions | 14,162 | -182 | 0 | 0 | 14,162 | -182 | ||||||||||||||||
Special purpose revenue bonds of states, | ||||||||||||||||||||||
municipalities and political subdivisions | 155,902 | -2,388 | 0 | 0 | 155,902 | -2,388 | ||||||||||||||||
Corporate securities | 85,245 | -1,220 | 2,616 | -135 | 87,861 | -1,355 | ||||||||||||||||
Residential mortgage-backed securities | 49,486 | -338 | 0 | 0 | 49,486 | -338 | ||||||||||||||||
Commercial mortgage-backed securities | 26,263 | -267 | 0 | 0 | 26,263 | -267 | ||||||||||||||||
Foreign government securities | 7,007 | -18 | 0 | 0 | 7,007 | -18 | ||||||||||||||||
Equity securities | 103,647 | -4,956 | 0 | 0 | 103,647 | -4,956 | ||||||||||||||||
Total | $ | 496,746 | $ | -9,371 | $ | 2,616 | $ | -135 | $ | 499,362 | $ | -9,506 | ||||||||||
Amortized cost and fair value of fixed maturity securities investments classified by contractual maturity date | ' | |||||||||||||||||||||
Cost or amortized cost | Fair value | |||||||||||||||||||||
Due in 1 year or less | $ | 216,068 | $ | 219,092 | ||||||||||||||||||
Due after 1 year through 5 years | 1,098,887 | 1,139,408 | ||||||||||||||||||||
Due after 5 years through 10 years | 1,470,040 | 1,533,694 | ||||||||||||||||||||
Due after 10 years through 15 years | 1,016,530 | 1,036,012 | ||||||||||||||||||||
Due after 15 years | 1,003,332 | 1,000,945 | ||||||||||||||||||||
Securities with contractual maturities | 4,804,857 | 4,929,151 | ||||||||||||||||||||
Mortgage-backed and asset-backed securities | 1,254,996 | 1,265,474 | ||||||||||||||||||||
Total fixed maturity securities | $ | 6,059,853 | $ | 6,194,625 | ||||||||||||||||||
Sources of net investment income | ' | |||||||||||||||||||||
Nine months ended September 30, | Three months ended September 30, | |||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Fixed maturity securities | ||||||||||||||||||||||
Taxable | $ | 75,407 | $ | 86,548 | $ | 24,385 | $ | 28,330 | ||||||||||||||
Exempt from U.S. income taxes | 85,063 | 80,163 | 28,988 | 27,291 | ||||||||||||||||||
Total fixed maturity securities | 160,470 | 166,711 | 53,373 | 55,621 | ||||||||||||||||||
Equity securities | 10,758 | 2,339 | 2,950 | 1,346 | ||||||||||||||||||
Short-term investments | 122 | 397 | 42 | 295 | ||||||||||||||||||
Other investment income | 350 | 1,699 | 31 | 831 | ||||||||||||||||||
Total investment income | 171,700 | 171,146 | 56,396 | 58,093 | ||||||||||||||||||
Investment expense | -6,059 | -4,504 | -2,188 | -1,751 | ||||||||||||||||||
Net investment income | $ | 165,641 | $ | 166,642 | $ | 54,208 | $ | 56,342 |
Investments_Details
Investments (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Fixed Maturity & Equity securities Available for Sale | ' | ' |
Available-for-sale Fixed Maturity Securities, Amortized Cost Basis | $6,059,853 | $5,856,432 |
Gross unrealized gain | 219,903 | 429,899 |
Gross unrealized loss | -85,131 | -4,550 |
Fixed maturity securities - available for sale | 6,194,625 | 6,281,781 |
Gross unrealized losses and fair value of all available for sale fixed maturity securities that were in a continuous loss position | ' | ' |
Less than 12 months, Fair value | 1,889,606 | 496,746 |
Less than 12 months, Unrealized losses | -88,129 | -9,371 |
12 months or more, Fair value | 26,897 | 2,616 |
12 months or more, Unrealized losses | -1,698 | -135 |
Total, Fair value | 1,916,503 | 499,362 |
Total, Unrealized losses | -89,827 | -9,506 |
Available for sale equity securities | ' | ' |
Available-for-sale Equity Securities, Amortized Cost Basis | 395,018 | 275,827 |
Gross unrealized gain | 43,023 | 13,768 |
Gross unrealized loss | -4,696 | -4,956 |
Available-for-sale Securities, Equity Securities | 433,345 | 284,639 |
US Government and Government Agency Securities [Member] | ' | ' |
Fixed Maturity & Equity securities Available for Sale | ' | ' |
Available-for-sale Fixed Maturity Securities, Amortized Cost Basis | 115,109 | 195,049 |
Gross unrealized gain | 2,698 | 4,560 |
Gross unrealized loss | -302 | -2 |
Fixed maturity securities - available for sale | 117,505 | 199,607 |
Gross unrealized losses and fair value of all available for sale fixed maturity securities that were in a continuous loss position | ' | ' |
Less than 12 months, Fair value | 20,730 | 55,034 |
Less than 12 months, Unrealized losses | -302 | -2 |
12 months or more, Fair value | 0 | 0 |
12 months or more, Unrealized losses | 0 | 0 |
Total, Fair value | 20,730 | 55,034 |
Total, Unrealized losses | -302 | -2 |
Fixed Maturity Securities of States, Municipalities and Political Subdivisions Securities [Member] | ' | ' |
Fixed Maturity & Equity securities Available for Sale | ' | ' |
Available-for-sale Fixed Maturity Securities, Amortized Cost Basis | 965,526 | 969,966 |
Gross unrealized gain | 55,813 | 96,027 |
Gross unrealized loss | -5,200 | -182 |
Fixed maturity securities - available for sale | 1,016,139 | 1,065,811 |
Gross unrealized losses and fair value of all available for sale fixed maturity securities that were in a continuous loss position | ' | ' |
Less than 12 months, Fair value | 134,217 | 14,162 |
Less than 12 months, Unrealized losses | -5,200 | -182 |
12 months or more, Fair value | 0 | 0 |
12 months or more, Unrealized losses | 0 | 0 |
Total, Fair value | 134,217 | 14,162 |
Total, Unrealized losses | -5,200 | -182 |
Special Purpose Revenue Bonds Of States Municipalities And Political Subdivisions [Member] | ' | ' |
Fixed Maturity & Equity securities Available for Sale | ' | ' |
Available-for-sale Fixed Maturity Securities, Amortized Cost Basis | 2,258,661 | 2,033,947 |
Gross unrealized gain | 81,517 | 168,772 |
Gross unrealized loss | -43,340 | -2,388 |
Fixed maturity securities - available for sale | 2,296,838 | 2,200,331 |
Gross unrealized losses and fair value of all available for sale fixed maturity securities that were in a continuous loss position | ' | ' |
Less than 12 months, Fair value | 724,983 | 155,902 |
Less than 12 months, Unrealized losses | -43,322 | -2,388 |
12 months or more, Fair value | 1,323 | 0 |
12 months or more, Unrealized losses | -18 | 0 |
Total, Fair value | 726,306 | 155,902 |
Total, Unrealized losses | -43,340 | -2,388 |
Corporate Securities [Member] | ' | ' |
Fixed Maturity & Equity securities Available for Sale | ' | ' |
Available-for-sale Fixed Maturity Securities, Amortized Cost Basis | 1,267,387 | 1,247,282 |
Gross unrealized gain | 40,314 | 69,243 |
Gross unrealized loss | -9,997 | -1,355 |
Fixed maturity securities - available for sale | 1,297,704 | 1,315,170 |
Gross unrealized losses and fair value of all available for sale fixed maturity securities that were in a continuous loss position | ' | ' |
Less than 12 months, Fair value | 307,327 | 85,245 |
Less than 12 months, Unrealized losses | -9,331 | -1,220 |
12 months or more, Fair value | 14,821 | 2,616 |
12 months or more, Unrealized losses | -666 | -135 |
Total, Fair value | 322,148 | 87,861 |
Total, Unrealized losses | -9,997 | -1,355 |
Residential Mortgage Backed Securities [Member] | ' | ' |
Fixed Maturity & Equity securities Available for Sale | ' | ' |
Available-for-sale Fixed Maturity Securities, Amortized Cost Basis | 588,696 | 632,665 |
Gross unrealized gain | 17,671 | 32,560 |
Gross unrealized loss | -13,410 | -338 |
Fixed maturity securities - available for sale | 592,957 | 664,887 |
Gross unrealized losses and fair value of all available for sale fixed maturity securities that were in a continuous loss position | ' | ' |
Less than 12 months, Fair value | 270,062 | 49,486 |
Less than 12 months, Unrealized losses | -13,410 | -338 |
12 months or more, Fair value | 0 | 0 |
12 months or more, Unrealized losses | 0 | 0 |
Total, Fair value | 270,062 | 49,486 |
Total, Unrealized losses | -13,410 | -338 |
Commercial Mortgage Backed Securities [Member] | ' | ' |
Fixed Maturity & Equity securities Available for Sale | ' | ' |
Available-for-sale Fixed Maturity Securities, Amortized Cost Basis | 524,706 | 482,808 |
Gross unrealized gain | 18,519 | 41,748 |
Gross unrealized loss | -12,009 | -267 |
Fixed maturity securities - available for sale | 531,216 | 524,289 |
Gross unrealized losses and fair value of all available for sale fixed maturity securities that were in a continuous loss position | ' | ' |
Less than 12 months, Fair value | 212,589 | 26,263 |
Less than 12 months, Unrealized losses | -11,414 | -267 |
12 months or more, Fair value | 5,042 | 0 |
12 months or more, Unrealized losses | -595 | 0 |
Total, Fair value | 217,631 | 26,263 |
Total, Unrealized losses | -12,009 | -267 |
Asset-backed Securities [Member] | ' | ' |
Fixed Maturity & Equity securities Available for Sale | ' | ' |
Available-for-sale Fixed Maturity Securities, Amortized Cost Basis | 141,594 | 32,801 |
Gross unrealized gain | 282 | 474 |
Gross unrealized loss | -575 | 0 |
Fixed maturity securities - available for sale | 141,301 | 33,275 |
Gross unrealized losses and fair value of all available for sale fixed maturity securities that were in a continuous loss position | ' | ' |
Less than 12 months, Fair value | 49,647 | ' |
Less than 12 months, Unrealized losses | -575 | ' |
12 months or more, Fair value | 0 | ' |
12 months or more, Unrealized losses | 0 | ' |
Total, Fair value | 49,647 | ' |
Total, Unrealized losses | -575 | ' |
Foreign Government Securities [Member] | ' | ' |
Fixed Maturity & Equity securities Available for Sale | ' | ' |
Available-for-sale Fixed Maturity Securities, Amortized Cost Basis | 198,174 | 261,914 |
Gross unrealized gain | 3,089 | 16,515 |
Gross unrealized loss | -298 | -18 |
Fixed maturity securities - available for sale | 200,965 | 278,411 |
Gross unrealized losses and fair value of all available for sale fixed maturity securities that were in a continuous loss position | ' | ' |
Less than 12 months, Fair value | 74,354 | 7,007 |
Less than 12 months, Unrealized losses | -298 | -18 |
12 months or more, Fair value | 0 | 0 |
12 months or more, Unrealized losses | 0 | 0 |
Total, Fair value | 74,354 | 7,007 |
Total, Unrealized losses | -298 | -18 |
Equity Securities [Member] | ' | ' |
Gross unrealized losses and fair value of all available for sale fixed maturity securities that were in a continuous loss position | ' | ' |
Less than 12 months, Fair value | 95,697 | 103,647 |
Less than 12 months, Unrealized losses | -4,277 | -4,956 |
12 months or more, Fair value | 5,711 | 0 |
12 months or more, Unrealized losses | -419 | 0 |
Total, Fair value | 101,408 | 103,647 |
Total, Unrealized losses | ($4,696) | ($4,956) |
Investments_Details_3
Investments (Details 3) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Amortized cost and fair value of fixed maturity securities investments classified by contractual maturity date | ' | ' |
Due in 1 year or less, Available for sale, Cost or amortized cost | $216,068 | ' |
Due after 1 year through 5 years, Available for sale, Cost or amortized cost | 1,098,887 | ' |
Due after 5 years through 10 years, Available for sale, Cost or amortized cost | 1,470,040 | ' |
Due after 10 years through 15 years, Available for sale, Cost or amortized cost | 1,016,530 | ' |
Due after 15 years, Available for sale, Cost or amortized cost | 1,003,332 | ' |
Securities with contractual maturities, Available for sale, Cost or amortized cost | 4,804,857 | ' |
Mortgage-backed and asset-backed securities, Available for sale, Cost or amortized cost | 1,254,996 | ' |
Available-for-sale fixed maturity Securities, Amortized Cost Basis | 6,059,853 | 5,856,432 |
Due in 1 year or less, Available for sale, Fair value | 219,092 | ' |
Due after 1 year through 5 years, Available for sale, Fair value | 1,139,408 | ' |
Due after 5 years through 10 years, Available for sale, Fair value | 1,533,694 | ' |
Due after 10 years through 15 years, Available for sale, Fair value | 1,036,012 | ' |
Due after 15 years, Available for sale, Fair value | 1,000,945 | ' |
Securities with contractual maturities, Available for sale, Fair value | 4,929,151 | ' |
Mortgage-backed and asset-backed securities, Available for sale, Fair value | 1,265,474 | ' |
Available-for-sale Securities, Fixed Maturity Securities, Fair value | $6,194,625 | ' |
Investments_Details_4
Investments (Details 4) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Fixed Maturity Securities | ' | ' | ' | ' |
Taxable | $24,385 | $28,330 | $75,407 | $86,548 |
Exempt from U.S. income taxes | 28,988 | 27,291 | 85,063 | 80,163 |
Total fixed maturity securities | 53,373 | 55,621 | 160,470 | 166,711 |
Equity securities | 2,950 | 1,346 | 10,758 | 2,339 |
Short-term investments | 42 | 295 | 122 | 397 |
Other investment income | 31 | 831 | 350 | 1,699 |
Total investment income | 56,396 | 58,093 | 171,700 | 171,146 |
Investment expense | -2,188 | -1,751 | -6,059 | -4,504 |
Net investment income | $54,208 | $56,342 | $165,641 | $166,642 |
Investments_Details_5
Investments (Details 5) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Realized pretax gains-losses-on the sale of investments excluding temporary impairment losses | ' | ' | ' | ' |
Net realized investment gain (loss) | $17,922 | $1,472 | $31,115 | $8,519 |
Investments_Details_Textuals
Investments (Details Textuals) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Investment [Abstract] | ' | ' | ' | ' |
Condition for categorizing the impaired securities | ' | ' | $500,000 | ' |
Condition for categorizing the impaired securities, percentage | ' | ' | 10.00% | ' |
Other-than-temporary impairment credit losses | 0 | 631,000 | 0 | 1,028,000 |
Gross unrealized losses on fixed income securities | $89,800,000 | ' | $89,800,000 | ' |
Weighted-average life of mortgage-backed and asset-backed securities, Years | 5.9 | ' | 5.9 | ' |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2013 | |
DerivativeInstrumentsandHedging | ' |
Derivative Instrument sand Hedging | ' |
(3) Derivative Financial Instrument | |
We utilize the British pound sterling and the Euro as the functional currency in certain of our foreign operations. As a result, we have exposure to fluctuations in exchange rates between these currencies and the U.S. dollar. From time to time, we may use derivative instruments to protect our investment in these foreign operations by limiting our exposure to fluctuations in exchange rates. | |
In 2012, we entered into a forward contract to sell 45.0 million Euros for U.S. dollars in September 2013. Through June 30, 2013, this transaction was designated and qualified as a hedge of a portion of our net investment in a subsidiary that has the Euro as its functional currency. Changes in the fair value of the forward contract, net of the related deferred income tax effect, totaled $1.5 million through June 30, 2013. We recognized this amount in our foreign currency translation adjustment, which is a component of accumulated other comprehensive income. This amount offset changes in the value of the net investment being hedged as the cumulative translation adjustment related to the foreign subsidiary, representing the effect of translating the subsidiary's assets and liabilities from Euros to U.S. dollars, is also reported in our foreign currency translation adjustment. | |
In July 2013, we entered into a forward contract to buy 45.0 million Euros for U.S. dollars in September 2013, effectively offsetting the contract entered into in 2012. Beginning in July 2013, we discontinued hedge accounting and subsequent changes in the fair value of the two forward contracts were recognized in our consolidated statements of earnings. Because the contracts offset, the combined net change in fair value and the impact on pretax earnings was immaterial in the third quarter of 2013. No forward contracts remain at September 30, 2013. | |
Derivatives_Detail_Textuals
Derivatives (Detail Textuals) | Sep. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2012 |
In Millions, unless otherwise specified | EUR (€) | USD ($) | EUR (€) |
DerivativeInstrumentsandHedging | ' | ' | ' |
The amount of Euros to sell for the forward contract. | € 45 | ' | € 45 |
Derivative Assets (Liabilities), at Fair Value, Net | ' | $1.50 | ' |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||||||||||
(4) Fair Value Measurements | |||||||||||||||||||||||||
Our financial instruments include assets and liabilities carried at fair value, as well as assets and liabilities carried at cost or amortized cost but disclosed at fair value in our financial statements. In determining fair value, we generally apply the market approach, which uses prices and other relevant data based on market transactions involving identical or comparable assets and liabilities. We classify our financial instruments into the following three-level hierarchy: | |||||||||||||||||||||||||
• Level 1 – Inputs are based on quoted prices in active markets for identical instruments. | |||||||||||||||||||||||||
• Level 2 – Inputs are based on observable market data (other than quoted prices), or are derived from or corroborated by observable market data. | |||||||||||||||||||||||||
• Level 3 – Inputs are unobservable and not corroborated by market data. | |||||||||||||||||||||||||
Our Level 1 investments consist of U.S. Treasuries, money market funds and equity securities traded in an active exchange market. We use unadjusted quoted prices for identical instruments to measure fair value. | |||||||||||||||||||||||||
Our Level 2 investments include most of our fixed maturity securities, which consist of U.S. government agency securities, municipal bonds (including those held as restricted securities), corporate debt securities, bank loans, mortgage-backed and asset-backed securities (including collateralized loan obligations), and deposits supporting our Lloyd's syndicate business. Level 2 also includes certificates of deposit and other interest-bearing deposits at banks, which we report as short-term investments, and, prior to September 30, 2013, a forward contract that hedged our net investment in a Euro-functional currency foreign subsidiary. We measure fair value for the majority of our Level 2 investments using quoted prices of securities with similar characteristics. The remaining investments are valued using matrix pricing. The fair value measurements consider observable assumptions, including benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, default rates, loss severity and other economic measures. | |||||||||||||||||||||||||
We are responsible for the prices used in our fair value measurements. We use independent pricing services to assist us in determining fair value for approximately 99% of our Level 2 investments. The pricing services provide a single price or quote per security. We use data provided by our third party investment managers and Lloyd's of London to value the remaining Level 2 investments. To validate that these quoted prices are reasonable estimates of fair value, we perform various quantitative and qualitative procedures, including: 1) evaluation of the underlying methodologies, 2) analysis of recent sales activity, 3) analytical review of our fair values against current market prices and 4) comparison of the pricing services' fair value to other pricing services' fair value for the same investment. No markets for our investments were judged to be inactive at period end. Based on these procedures, we did not adjust the prices or quotes provided by our independent pricing services, third party investment managers or Lloyd's of London as of September 30, 2013 or December 31, 2012. | |||||||||||||||||||||||||
Our Level 2 financial instruments also include our notes payable. We determine the fair value of our 6.30% Senior Notes based on quoted prices, but the market is inactive. The fair value of borrowings under our Revolving Loan Facility approximates the carrying amount because interest is based on 30-day LIBOR plus a margin. | |||||||||||||||||||||||||
Our Level 3 securities include certain fixed maturity securities and an insurance contract that we account for as a derivative and classify in other assets. This category also includes a liability for future earnout payments due to former owners of a business we acquired, which is classified within accounts payable and accrued liabilities. Fixed maturity securities classified as Level 3 are primarily special purpose revenue bond auction rate securities. The interest rates on these securities are reset through auctions at periodic intervals. These securities are thinly traded and observable market data is not readily available. We determine the fair value of these securities using prices quoted by a broker. We determine fair value of our other Level 3 assets and liabilities based on internally developed models that use assumptions or other data that are not readily observable from objective sources. | |||||||||||||||||||||||||
The following tables present the fair value of our financial instruments that were carried or disclosed at fair value. Unless indicated, these items were carried at fair value on our consolidated balance sheet. | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||||||
U.S. government and government agency securities | $ | 97,279 | $ | 20,226 | $ | 0 | $ | 117,505 | |||||||||||||||||
Fixed maturity securities of states, municipalities and | |||||||||||||||||||||||||
political subdivisions | 0 | 1,016,139 | 0 | 1,016,139 | |||||||||||||||||||||
Special purpose revenue bonds of states, municipalities and | |||||||||||||||||||||||||
political subdivisions | 0 | 2,287,625 | 9,213 | 2,296,838 | |||||||||||||||||||||
Corporate securities | 0 | 1,297,554 | 150 | 1,297,704 | |||||||||||||||||||||
Residential mortgage-backed securities | 0 | 592,957 | 0 | 592,957 | |||||||||||||||||||||
Commercial mortgage-backed securities | 0 | 531,216 | 0 | 531,216 | |||||||||||||||||||||
Asset-backed securities | 0 | 141,301 | 0 | 141,301 | |||||||||||||||||||||
Foreign government securities | 0 | 200,965 | 0 | 200,965 | |||||||||||||||||||||
Total fixed maturity securities | 97,279 | 6,087,983 | 9,363 | 6,194,625 | |||||||||||||||||||||
Equity securities | 433,345 | 0 | 0 | 433,345 | |||||||||||||||||||||
Short-term investments* | 107,350 | 121,841 | 0 | 229,191 | |||||||||||||||||||||
Restricted cash and securities | 0 | 1,846 | 0 | 1,846 | |||||||||||||||||||||
Premium, claims and other receivables | 0 | 65,490 | 0 | 65,490 | |||||||||||||||||||||
Other assets | 17 | 0 | 831 | 848 | |||||||||||||||||||||
Total assets measured at fair value | $ | 637,991 | $ | 6,277,160 | $ | 10,194 | $ | 6,925,345 | |||||||||||||||||
Notes payable* | $ | 0 | $ | 701,881 | $ | - | $ | 701,881 | |||||||||||||||||
Accounts payable and accrued liabilities - earnout liability | 0 | 1,846 | 7,195 | 9,041 | |||||||||||||||||||||
Total liabilities measured at fair value | $ | 0 | $ | 703,727 | $ | 7,195 | $ | 710,922 | |||||||||||||||||
__________ | |||||||||||||||||||||||||
* Carried at cost or amortized cost on our consolidated balance sheet. | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||||||
U.S. government and government agency securities | $ | 174,520 | $ | 25,087 | $ | 0 | $ | 199,607 | |||||||||||||||||
Fixed maturity securities of states, municipalities and | |||||||||||||||||||||||||
political subdivisions | 0 | 1,065,811 | 0 | 1,065,811 | |||||||||||||||||||||
Special purpose revenue bonds of states, municipalities and | |||||||||||||||||||||||||
political subdivisions | 0 | 2,200,331 | 0 | 2,200,331 | |||||||||||||||||||||
Corporate securities | 0 | 1,315,006 | 164 | 1,315,170 | |||||||||||||||||||||
Residential mortgage-backed securities | 0 | 664,887 | 0 | 664,887 | |||||||||||||||||||||
Commercial mortgage-backed securities | 0 | 524,289 | 0 | 524,289 | |||||||||||||||||||||
Asset-backed securities | 0 | 33,275 | 0 | 33,275 | |||||||||||||||||||||
Foreign government securities | 0 | 278,411 | 0 | 278,411 | |||||||||||||||||||||
Total fixed maturity securities | 174,520 | 6,107,097 | 164 | 6,281,781 | |||||||||||||||||||||
Equity securities | 284,639 | 0 | 0 | 284,639 | |||||||||||||||||||||
Short-term investments* | 251,988 | 111,065 | 0 | 363,053 | |||||||||||||||||||||
Other investments | 20,925 | 0 | 0 | 20,925 | |||||||||||||||||||||
Restricted cash and securities | 0 | 2,043 | 0 | 2,043 | |||||||||||||||||||||
Premium, claims and other receivables | 0 | 68,207 | 0 | 68,207 | |||||||||||||||||||||
Other assets | 0 | 0 | 349 | 349 | |||||||||||||||||||||
Total assets measured at fair value | $ | 732,072 | $ | 6,288,412 | $ | 513 | $ | 7,020,997 | |||||||||||||||||
Notes payable* | $ | - | $ | 636,363 | $ | - | $ | 636,363 | |||||||||||||||||
Accounts payable and accrued liabilities - forward contract | - | 3,194 | - | 3,194 | |||||||||||||||||||||
Accounts payable and accrued liabilities - earnout liability | - | 2,043 | 7,009 | 9,052 | |||||||||||||||||||||
Total liabilities measured at fair value | $ | 0 | $ | 641,600 | $ | 7,009 | $ | 648,609 | |||||||||||||||||
__________ | |||||||||||||||||||||||||
*Carried at cost or amortized cost on our consolidated balance sheet. | |||||||||||||||||||||||||
The following tables present the changes in fair value of our Level 3 financial instruments. | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Accounts | |||||||||||||||||||||||||
payable | |||||||||||||||||||||||||
Fixed | and | Fixed | |||||||||||||||||||||||
maturity | Other | Total | accrued | maturity | Other | Total | |||||||||||||||||||
securities | assets | assets | liabilities | securities | assets | assets | |||||||||||||||||||
Nine months ended September 30 | |||||||||||||||||||||||||
Balance at beginning of year | $ | 164 | $ | 349 | $ | 513 | $ | 7,009 | $ | 1,170 | $ | 1,516 | $ | 2,686 | |||||||||||
Purchases | 9,430 | 0 | 9,430 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Settlements | 0 | 0 | 0 | 0 | 0 | -1,863 | -1,863 | ||||||||||||||||||
Gains (losses) reported in: | |||||||||||||||||||||||||
Net earnings | 37 | 482 | 519 | -186 | -1 | 553 | 552 | ||||||||||||||||||
Other comprehensive income (loss) | -268 | 0 | -268 | 0 | 8 | 0 | 8 | ||||||||||||||||||
Transfers out of Level 3 | 0 | 0 | 0 | 0 | -1,015 | 0 | -1,015 | ||||||||||||||||||
Balance at September 30 | $ | 9,363 | $ | 831 | $ | 10,194 | $ | 7,195 | $ | 162 | $ | 206 | $ | 368 | |||||||||||
Three months ended September 30 | |||||||||||||||||||||||||
Balance at beginning of quarter | $ | 9,446 | $ | 589 | $ | 10,035 | $ | 7,133 | $ | 159 | $ | 1,847 | $ | 2,006 | |||||||||||
Settlements | 0 | 0 | 0 | 0 | 0 | -1,863 | -1,863 | ||||||||||||||||||
Gains (losses) reported in: | |||||||||||||||||||||||||
Net earnings | 16 | 242 | 258 | -62 | 0 | 222 | 222 | ||||||||||||||||||
Other comprehensive income (loss) | -99 | 0 | -99 | 0 | 3 | 0 | 3 | ||||||||||||||||||
Balance at September 30 | $ | 9,363 | $ | 831 | $ | 10,194 | $ | 7,195 | $ | 162 | $ | 206 | $ | 368 | |||||||||||
There were no transfers between Level 1, Level 2 or Level 3 in 2013. We transferred an investment from Level 3 to Level 2 in 2012 because we were able to determine its fair value using inputs based on observable market data in the period transferred. | |||||||||||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||||||||||||||||
Assets and liabilities at fair value | ' | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||||||
U.S. government and government agency securities | $ | 97,279 | $ | 20,226 | $ | 0 | $ | 117,505 | |||||||||||||||||
Fixed maturity securities of states, municipalities and | |||||||||||||||||||||||||
political subdivisions | 0 | 1,016,139 | 0 | 1,016,139 | |||||||||||||||||||||
Special purpose revenue bonds of states, municipalities and | |||||||||||||||||||||||||
political subdivisions | 0 | 2,287,625 | 9,213 | 2,296,838 | |||||||||||||||||||||
Corporate securities | 0 | 1,297,554 | 150 | 1,297,704 | |||||||||||||||||||||
Residential mortgage-backed securities | 0 | 592,957 | 0 | 592,957 | |||||||||||||||||||||
Commercial mortgage-backed securities | 0 | 531,216 | 0 | 531,216 | |||||||||||||||||||||
Asset-backed securities | 0 | 141,301 | 0 | 141,301 | |||||||||||||||||||||
Foreign government securities | 0 | 200,965 | 0 | 200,965 | |||||||||||||||||||||
Total fixed maturity securities | 97,279 | 6,087,983 | 9,363 | 6,194,625 | |||||||||||||||||||||
Equity securities | 433,345 | 0 | 0 | 433,345 | |||||||||||||||||||||
Short-term investments* | 107,350 | 121,841 | 0 | 229,191 | |||||||||||||||||||||
Restricted cash and securities | 0 | 1,846 | 0 | 1,846 | |||||||||||||||||||||
Premium, claims and other receivables | 0 | 65,490 | 0 | 65,490 | |||||||||||||||||||||
Other assets | 17 | 0 | 831 | 848 | |||||||||||||||||||||
Total assets measured at fair value | $ | 637,991 | $ | 6,277,160 | $ | 10,194 | $ | 6,925,345 | |||||||||||||||||
Notes payable* | $ | 0 | $ | 701,881 | $ | - | $ | 701,881 | |||||||||||||||||
Accounts payable and accrued liabilities - earnout liability | 0 | 1,846 | 7,195 | 9,041 | |||||||||||||||||||||
Total liabilities measured at fair value | $ | 0 | $ | 703,727 | $ | 7,195 | $ | 710,922 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||||||
U.S. government and government agency securities | $ | 174,520 | $ | 25,087 | $ | 0 | $ | 199,607 | |||||||||||||||||
Fixed maturity securities of states, municipalities and | |||||||||||||||||||||||||
political subdivisions | 0 | 1,065,811 | 0 | 1,065,811 | |||||||||||||||||||||
Special purpose revenue bonds of states, municipalities and | |||||||||||||||||||||||||
political subdivisions | 0 | 2,200,331 | 0 | 2,200,331 | |||||||||||||||||||||
Corporate securities | 0 | 1,315,006 | 164 | 1,315,170 | |||||||||||||||||||||
Residential mortgage-backed securities | 0 | 664,887 | 0 | 664,887 | |||||||||||||||||||||
Commercial mortgage-backed securities | 0 | 524,289 | 0 | 524,289 | |||||||||||||||||||||
Asset-backed securities | 0 | 33,275 | 0 | 33,275 | |||||||||||||||||||||
Foreign government securities | 0 | 278,411 | 0 | 278,411 | |||||||||||||||||||||
Total fixed maturity securities | 174,520 | 6,107,097 | 164 | 6,281,781 | |||||||||||||||||||||
Equity securities | 284,639 | 0 | 0 | 284,639 | |||||||||||||||||||||
Short-term investments* | 251,988 | 111,065 | 0 | 363,053 | |||||||||||||||||||||
Other investments | 20,925 | 0 | 0 | 20,925 | |||||||||||||||||||||
Restricted cash and securities | 0 | 2,043 | 0 | 2,043 | |||||||||||||||||||||
Premium, claims and other receivables | 0 | 68,207 | 0 | 68,207 | |||||||||||||||||||||
Other assets | 0 | 0 | 349 | 349 | |||||||||||||||||||||
Total assets measured at fair value | $ | 732,072 | $ | 6,288,412 | $ | 513 | $ | 7,020,997 | |||||||||||||||||
Notes payable* | $ | - | $ | 636,363 | $ | - | $ | 636,363 | |||||||||||||||||
Accounts payable and accrued liabilities - forward contract | - | 3,194 | - | 3,194 | |||||||||||||||||||||
Accounts payable and accrued liabilities - earnout liability | - | 2,043 | 7,009 | 9,052 | |||||||||||||||||||||
Total liabilities measured at fair value | $ | 0 | $ | 641,600 | $ | 7,009 | $ | 648,609 | |||||||||||||||||
Changes in fair value of level 3 assets | ' | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Accounts | |||||||||||||||||||||||||
payable | |||||||||||||||||||||||||
Fixed | and | Fixed | |||||||||||||||||||||||
maturity | Other | Total | accrued | maturity | Other | Total | |||||||||||||||||||
securities | assets | assets | liabilities | securities | assets | assets | |||||||||||||||||||
Nine months ended September 30 | |||||||||||||||||||||||||
Balance at beginning of year | $ | 164 | $ | 349 | $ | 513 | $ | 7,009 | $ | 1,170 | $ | 1,516 | $ | 2,686 | |||||||||||
Purchases | 9,430 | 0 | 9,430 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Settlements | 0 | 0 | 0 | 0 | 0 | -1,863 | -1,863 | ||||||||||||||||||
Gains (losses) reported in: | |||||||||||||||||||||||||
Net earnings | 37 | 482 | 519 | -186 | -1 | 553 | 552 | ||||||||||||||||||
Other comprehensive income (loss) | -268 | 0 | -268 | 0 | 8 | 0 | 8 | ||||||||||||||||||
Transfers out of Level 3 | 0 | 0 | 0 | 0 | -1,015 | 0 | -1,015 | ||||||||||||||||||
Balance at September 30 | $ | 9,363 | $ | 831 | $ | 10,194 | $ | 7,195 | $ | 162 | $ | 206 | $ | 368 | |||||||||||
Three months ended September 30 | |||||||||||||||||||||||||
Balance at beginning of quarter | $ | 9,446 | $ | 589 | $ | 10,035 | $ | 7,133 | $ | 159 | $ | 1,847 | $ | 2,006 | |||||||||||
Settlements | 0 | 0 | 0 | 0 | 0 | -1,863 | -1,863 | ||||||||||||||||||
Gains (losses) reported in: | |||||||||||||||||||||||||
Net earnings | 16 | 242 | 258 | -62 | 0 | 222 | 222 | ||||||||||||||||||
Other comprehensive income (loss) | -99 | 0 | -99 | 0 | 3 | 0 | 3 | ||||||||||||||||||
Balance at September 30 | $ | 9,363 | $ | 831 | $ | 10,194 | $ | 7,195 | $ | 162 | $ | 206 | $ | 368 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fixed maturity securities-available for sale | ' | ' |
Fixed maturity securities - available for sale | $6,194,625 | $6,281,781 |
Equity securities - available for sale, at fair value | 433,345 | 284,639 |
Short-term investments* | 229,191 | 363,053 |
Other Investments | 0 | 20,925 |
Restricted cash and securities | 1,846 | 2,043 |
Premium, claims and other receivables | 65,490 | 68,207 |
Other assets | 848 | 349 |
Total assets measured at fair value | 6,925,345 | 7,020,997 |
Notes payable | 701,881 | 636,363 |
Accounts payable and accrued liabilities - earnout liability | 9,041 | 9,052 |
Accounts payable and accrued liabilities - forward contract | ' | 3,194 |
Total liabilities measured at fair value | 710,922 | 648,609 |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fixed maturity securities-available for sale | ' | ' |
Fixed maturity securities - available for sale | 97,279 | 174,520 |
Equity securities - available for sale, at fair value | 433,345 | 284,639 |
Short-term investments* | 107,350 | 251,988 |
Other Investments Held At Fair Value | 0 | 20,925 |
Other assets | 17 | ' |
Total assets measured at fair value | 637,991 | 732,072 |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fixed maturity securities-available for sale | ' | ' |
Fixed maturity securities - available for sale | 6,087,983 | 6,107,097 |
Short-term investments* | 121,841 | 111,065 |
Restricted cash and securities | 1,846 | 2,043 |
Premium, claims and other receivables | 65,490 | 68,207 |
Total assets measured at fair value | 6,277,160 | 6,288,412 |
Notes payable | 701,881 | 636,363 |
Accounts payable and accrued liabilities - earnout liability | 1,846 | 2,043 |
Accounts payable and accrued liabilities - forward contract | ' | 3,194 |
Total liabilities measured at fair value | 703,727 | 641,600 |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Fixed maturity securities-available for sale | ' | ' |
Fixed maturity securities - available for sale | 9,363 | 164 |
Other assets | 831 | 349 |
Total assets measured at fair value | 10,194 | 513 |
Accounts payable and accrued liabilities - earnout liability | 7,195 | 7,009 |
Total liabilities measured at fair value | 7,195 | 7,009 |
US Government and Government Agency Securities [Member] | ' | ' |
Fixed maturity securities-available for sale | ' | ' |
Fixed maturity securities - available for sale | 117,505 | 199,607 |
US Government and Government Agency Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fixed maturity securities-available for sale | ' | ' |
Fixed maturity securities - available for sale | 97,279 | 174,520 |
US Government and Government Agency Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fixed maturity securities-available for sale | ' | ' |
Fixed maturity securities - available for sale | 20,226 | 25,087 |
Fixed Maturity Securities of States, Municipalities and Political Subdivisions Securities [Member] | ' | ' |
Fixed maturity securities-available for sale | ' | ' |
Fixed maturity securities - available for sale | 1,016,139 | 1,065,811 |
Fixed Maturity Securities of States, Municipalities and Political Subdivisions Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fixed maturity securities-available for sale | ' | ' |
Fixed maturity securities - available for sale | 1,016,139 | 1,065,811 |
Special Purpose Revenue Bonds Of States Municipalities And Political Subdivisions [Member] | ' | ' |
Fixed maturity securities-available for sale | ' | ' |
Fixed maturity securities - available for sale | 2,296,838 | 2,200,331 |
Special Purpose Revenue Bonds Of States Municipalities And Political Subdivisions [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fixed maturity securities-available for sale | ' | ' |
Fixed maturity securities - available for sale | 2,287,625 | 2,200,331 |
Special Purpose Revenue Bonds Of States Municipalities And Political Subdivisions [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Fixed maturity securities-available for sale | ' | ' |
Fixed maturity securities - available for sale | 9,213 | ' |
Corporate Securities [Member] | ' | ' |
Fixed maturity securities-available for sale | ' | ' |
Fixed maturity securities - available for sale | 1,297,704 | 1,315,170 |
Corporate Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fixed maturity securities-available for sale | ' | ' |
Fixed maturity securities - available for sale | 1,297,554 | 1,315,006 |
Corporate Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Fixed maturity securities-available for sale | ' | ' |
Fixed maturity securities - available for sale | 150 | 164 |
Residential Mortgage Backed Securities [Member] | ' | ' |
Fixed maturity securities-available for sale | ' | ' |
Fixed maturity securities - available for sale | 592,957 | 664,887 |
Residential Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fixed maturity securities-available for sale | ' | ' |
Fixed maturity securities - available for sale | 592,957 | 664,887 |
Commercial Mortgage Backed Securities [Member] | ' | ' |
Fixed maturity securities-available for sale | ' | ' |
Fixed maturity securities - available for sale | 531,216 | 524,289 |
Commercial Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fixed maturity securities-available for sale | ' | ' |
Fixed maturity securities - available for sale | 531,216 | 524,289 |
Asset-backed Securities [Member] | ' | ' |
Fixed maturity securities-available for sale | ' | ' |
Fixed maturity securities - available for sale | 141,301 | 33,275 |
Asset-backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fixed maturity securities-available for sale | ' | ' |
Fixed maturity securities - available for sale | 141,301 | 33,275 |
Foreign Government Securities [Member] | ' | ' |
Fixed maturity securities-available for sale | ' | ' |
Fixed maturity securities - available for sale | 200,965 | 278,411 |
Foreign Government Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fixed maturity securities-available for sale | ' | ' |
Fixed maturity securities - available for sale | $200,965 | $278,411 |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 1) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Changes in fair value of level 3 assets | ' | ' | ' | ' |
Balance at beginning of period | $10,035 | $2,006 | $513 | $2,686 |
Purchases | 0 | 0 | 9,430 | 0 |
Settlement | 0 | -1,863 | 0 | -1,863 |
Sales | 0 | 0 | 0 | 0 |
Other comprehensive income | -99 | 3 | -268 | 8 |
Net earnings | 258 | 222 | 519 | 552 |
Transfers out of Level 3 | 0 | 0 | 0 | -1,015 |
Balance at end of period | 10,194 | 368 | 10,194 | 368 |
Fixed maturity securities [Member] | ' | ' | ' | ' |
Changes in fair value of level 3 assets | ' | ' | ' | ' |
Balance at beginning of period | 9,446 | 159 | 164 | 1,170 |
Purchases | 0 | 0 | 9,430 | 0 |
Settlement | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Other comprehensive income | -99 | 3 | -268 | 8 |
Net earnings | 16 | 0 | 37 | -1 |
Transfers out of Level 3 | 0 | 0 | 0 | -1,015 |
Balance at end of period | 9,363 | 162 | 9,363 | 162 |
Other Assets [Member] | ' | ' | ' | ' |
Changes in fair value of level 3 assets | ' | ' | ' | ' |
Balance at beginning of period | 589 | 1,847 | 349 | 1,516 |
Purchases | 0 | 0 | 0 | 0 |
Settlement | 0 | -1,863 | 0 | -1,863 |
Sales | 0 | 0 | 0 | 0 |
Other comprehensive income | 0 | 0 | 0 | 0 |
Net earnings | 242 | 222 | 482 | 553 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Balance at end of period | 831 | 206 | 831 | 206 |
Earn Out Liability [Member] | ' | ' | ' | ' |
Changes in fair value of level 3 assets | ' | ' | ' | ' |
Balance at beginning of period | 7,133 | ' | 7,009 | ' |
Purchases | 0 | ' | 0 | ' |
Settlement | 0 | ' | 0 | ' |
Sales | 0 | ' | 0 | ' |
Other comprehensive income | 0 | ' | 0 | ' |
Net earnings | -62 | ' | -186 | ' |
Transfers out of Level 3 | 0 | ' | 0 | ' |
Balance at end of period | $7,195 | ' | $7,195 | ' |
Fair_Value_Measurements_Detail2
Fair Value Measurements (Details Textuals) | 9 Months Ended |
Sep. 30, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Independent pricing services to assist in determining fair value | 99.00% |
Acquisitions_Dispositions_and_
Acquisitions, Dispositions and Goodwill | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Goodwill [Abstract] | ' | ||||||||||||||||||
Goodwill | ' | ||||||||||||||||||
(5) Goodwill | |||||||||||||||||||
The goodwill balances by reportable segment and the changes in goodwill are shown in the table below. | |||||||||||||||||||
U.S. Property | Professional | Accident | U.S. Surety | ||||||||||||||||
& Casualty | Liability | & Health | & Credit | International | Total | ||||||||||||||
Balance at beginning of year | $ | 223,000 | $ | 314,089 | $ | 144,113 | $ | 79,700 | $ | 124,958 | $ | 885,860 | |||||||
Earnout and other | 0 | 9,010 | 0 | 0 | -19 | 8,991 | |||||||||||||
Balance at September 30, 2013 | $ | 223,000 | $ | 323,099 | $ | 144,113 | $ | 79,700 | $ | 124,939 | $ | 894,851 | |||||||
We acquired HCC Global Financial Products (HCC Global), which underwrites our U.S. and International directors' and officers' liability business, in 2002. The purchase agreement, as amended, includes a contingency for future earnout payments. The earnout is based on HCC Global's pretax earnings on business written from the acquisition date through September 30, 2007, with no maximum amount due to the former owners. When conditions specified under the purchase agreement are met, we record a net amount owed to or due from the former owners based on our estimate, at that point in time, of how claims will ultimately be settled. This net amount will fluctuate in the future, and the ultimate total net earnout payments cannot be finally determined until all claims are settled or paid. In 2013, we increased goodwill by $9.0 million for additional earnout earned under the purchase agreement. | |||||||||||||||||||
We conducted our 2013 goodwill impairment test as of June 30, 2013, which is consistent with the timeframe for our annual assessment in prior years. Based on our latest assessment, the fair value of each reporting unit exceeded its carrying amount. | |||||||||||||||||||
Acquisitions_Dispositions_and_1
Acquisitions, Dispositions and Goodwill (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Goodwill [Abstract] | ' | ||||||||||||||||||
Goodwill balances by reportable segments | ' | ||||||||||||||||||
U.S. Property | Professional | Accident | U.S. Surety | ||||||||||||||||
& Casualty | Liability | & Health | & Credit | International | Total | ||||||||||||||
Balance at beginning of year | $ | 223,000 | $ | 314,089 | $ | 144,113 | $ | 79,700 | $ | 124,958 | $ | 885,860 | |||||||
Earnout and other | 0 | 9,010 | 0 | 0 | -19 | 8,991 | |||||||||||||
Balance at September 30, 2013 | $ | 223,000 | $ | 323,099 | $ | 144,113 | $ | 79,700 | $ | 124,939 | $ | 894,851 | |||||||
Acquisitions_Dispositions_and_2
Acquisitions, Dispositions and Goodwill (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Goodwill [Line Items] | ' |
Balance at beginning of period | $885,860 |
Earnout and other | 8,991 |
Balance at end of period | 894,851 |
U.S. Property & Casualty [Member] | ' |
Goodwill [Line Items] | ' |
Balance at beginning of period | 223,000 |
Earnout and other | 0 |
Balance at end of period | 223,000 |
Professional Liability [Member] | ' |
Goodwill [Line Items] | ' |
Balance at beginning of period | 314,089 |
Earnout and other | 9,010 |
Balance at end of period | 323,099 |
Accident & Health [Member] | ' |
Goodwill [Line Items] | ' |
Balance at beginning of period | 144,113 |
Earnout and other | 0 |
Balance at end of period | 144,113 |
U.S. Surety & Credit [Member] | ' |
Goodwill [Line Items] | ' |
Balance at beginning of period | 79,700 |
Earnout and other | 0 |
Balance at end of period | 79,700 |
International [Member] | ' |
Goodwill [Line Items] | ' |
Balance at beginning of period | 124,958 |
Earnout and other | -19 |
Balance at end of period | $124,939 |
Acquisitions_Dispositions_and_3
Acquisitions, Dispositions and Goodwill (Details Textuals) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Goodwill [Abstract] | ' |
Goodwill adjustment for earnout under purchase agreement | $9 |
Reinsurance
Reinsurance | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Reinsurance [Abstract] | ' | |||||||||||||
Reinsurance | ' | |||||||||||||
(6) Reinsurance | ||||||||||||||
In the normal course of business, our insurance companies cede a portion of their premium to reinsurers through treaty and facultative reinsurance agreements. Although reinsurance does not discharge the direct insurer from liability to its policyholder, our insurance companies participate in such agreements in order to limit their loss exposure, protect them against catastrophic losses and diversify their business. The following tables present the effect of such reinsurance transactions on our premium, loss and loss adjustment expense and policy acquisition costs. | ||||||||||||||
Nine months ended September 30, | Three months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Direct written premium | $ | 1,911,619 | $ | 1,826,610 | $ | 616,938 | $ | 603,844 | ||||||
Reinsurance assumed | 296,942 | 313,395 | 61,975 | 61,919 | ||||||||||
Reinsurance ceded | -478,609 | -409,206 | -157,179 | -135,456 | ||||||||||
Net written premium | $ | 1,729,952 | $ | 1,730,799 | $ | 521,734 | $ | 530,307 | ||||||
Direct earned premium | $ | 1,860,093 | $ | 1,795,109 | $ | 622,464 | $ | 601,572 | ||||||
Reinsurance assumed | 252,902 | 259,870 | 81,594 | 90,988 | ||||||||||
Reinsurance ceded | -433,785 | -378,857 | -147,390 | -128,910 | ||||||||||
Net earned premium | $ | 1,679,210 | $ | 1,676,122 | $ | 556,668 | $ | 563,650 | ||||||
Direct loss and loss adjustment expense | $ | 1,210,862 | $ | 1,029,227 | $ | 517,382 | $ | 301,306 | ||||||
Reinsurance assumed | 119,315 | 96,143 | 8,607 | 35,108 | ||||||||||
Reinsurance ceded | -337,630 | -155,603 | -205,613 | -32,400 | ||||||||||
Net loss and loss adjustment expense | $ | 992,547 | $ | 969,767 | $ | 320,376 | $ | 304,014 | ||||||
Policy acquisition costs | $ | 309,285 | $ | 299,854 | $ | 105,254 | $ | 101,698 | ||||||
Ceding commissions | -105,898 | -88,300 | -39,612 | -34,078 | ||||||||||
Net policy acquisition costs | $ | 203,387 | $ | 211,554 | $ | 65,642 | $ | 67,620 | ||||||
The table below shows the components of our reinsurance recoverables in our consolidated balance sheets. | ||||||||||||||
September 30, | December 31, | |||||||||||||
2013 | 2012 | |||||||||||||
Reinsurance recoverable on paid losses | $ | 51,262 | $ | 54,675 | ||||||||||
Reinsurance recoverable on outstanding losses | 456,364 | 479,026 | ||||||||||||
Reinsurance recoverable on incurred but not reported losses | 709,451 | 539,021 | ||||||||||||
Reserve for uncollectible reinsurance | -1,500 | -1,500 | ||||||||||||
Total reinsurance recoverables | $ | 1,215,577 | $ | 1,071,222 | ||||||||||
Reinsurers not authorized by the respective states of domicile of our U.S. domiciled insurance companies are required to collateralize reinsurance obligations due to us. The table below shows the amounts of letters of credit and cash available to us as collateral, plus other potential offsets at September 30, 2013 and December 31, 2012. | ||||||||||||||
September 30, | December 31, | |||||||||||||
2013 | 2012 | |||||||||||||
Payables to reinsurers | $ | 194,857 | $ | 190,228 | ||||||||||
Letters of credit | 82,115 | 89,832 | ||||||||||||
Funds held in trust | 89,050 | 116,597 | ||||||||||||
Total credits | $ | 366,022 | $ | 396,657 | ||||||||||
The tables below show the calculation of net reserves, net unearned premium and net deferred policy acquisition costs. | ||||||||||||||
September 30, | December 31, | |||||||||||||
2013 | 2012 | |||||||||||||
Loss and loss adjustment expense payable | $ | 4,021,847 | $ | 3,767,850 | ||||||||||
Reinsurance recoverable on outstanding losses | -456,364 | -479,026 | ||||||||||||
Reinsurance recoverable on incurred but not reported losses | -709,451 | -539,021 | ||||||||||||
Net reserves | $ | 2,856,032 | $ | 2,749,803 | ||||||||||
Unearned premium | $ | 1,165,580 | $ | 1,069,956 | ||||||||||
Ceded unearned premium | -301,891 | -256,988 | ||||||||||||
Net unearned premium | $ | 863,689 | $ | 812,968 | ||||||||||
Deferred policy acquisition costs | $ | 204,740 | $ | 191,960 | ||||||||||
Deferred ceding commissions | -86,804 | -74,609 | ||||||||||||
Net deferred policy acquisition costs | $ | 117,936 | $ | 117,351 |
Reinsurance_Tables
Reinsurance (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Reinsurance [Abstract] | ' | |||||||||||||
Effect of reinsurance transactions on our premium, loss and loss adjustment expense and policy acquisition costs | ' | |||||||||||||
Nine months ended September 30, | Three months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Direct written premium | $ | 1,911,619 | $ | 1,826,610 | $ | 616,938 | $ | 603,844 | ||||||
Reinsurance assumed | 296,942 | 313,395 | 61,975 | 61,919 | ||||||||||
Reinsurance ceded | -478,609 | -409,206 | -157,179 | -135,456 | ||||||||||
Net written premium | $ | 1,729,952 | $ | 1,730,799 | $ | 521,734 | $ | 530,307 | ||||||
Direct earned premium | $ | 1,860,093 | $ | 1,795,109 | $ | 622,464 | $ | 601,572 | ||||||
Reinsurance assumed | 252,902 | 259,870 | 81,594 | 90,988 | ||||||||||
Reinsurance ceded | -433,785 | -378,857 | -147,390 | -128,910 | ||||||||||
Net earned premium | $ | 1,679,210 | $ | 1,676,122 | $ | 556,668 | $ | 563,650 | ||||||
Direct loss and loss adjustment expense | $ | 1,210,862 | $ | 1,029,227 | $ | 517,382 | $ | 301,306 | ||||||
Reinsurance assumed | 119,315 | 96,143 | 8,607 | 35,108 | ||||||||||
Reinsurance ceded | -337,630 | -155,603 | -205,613 | -32,400 | ||||||||||
Net loss and loss adjustment expense | $ | 992,547 | $ | 969,767 | $ | 320,376 | $ | 304,014 | ||||||
Policy acquisition costs | $ | 309,285 | $ | 299,854 | $ | 105,254 | $ | 101,698 | ||||||
Ceding commissions | -105,898 | -88,300 | -39,612 | -34,078 | ||||||||||
Net policy acquisition costs | $ | 203,387 | $ | 211,554 | $ | 65,642 | $ | 67,620 | ||||||
Components of our reinsurance recoverables | ' | |||||||||||||
September 30, | December 31, | |||||||||||||
2013 | 2012 | |||||||||||||
Reinsurance recoverable on paid losses | $ | 51,262 | $ | 54,675 | ||||||||||
Reinsurance recoverable on outstanding losses | 456,364 | 479,026 | ||||||||||||
Reinsurance recoverable on incurred but not reported losses | 709,451 | 539,021 | ||||||||||||
Reserve for uncollectible reinsurance | -1,500 | -1,500 | ||||||||||||
Total reinsurance recoverables | $ | 1,215,577 | $ | 1,071,222 | ||||||||||
Amounts of letters of credit and cash available to us as collateral, plus other potential offsets | ' | |||||||||||||
September 30, | December 31, | |||||||||||||
2013 | 2012 | |||||||||||||
Payables to reinsurers | $ | 194,857 | $ | 190,228 | ||||||||||
Letters of credit | 82,115 | 89,832 | ||||||||||||
Funds held in trust | 89,050 | 116,597 | ||||||||||||
Total credits | $ | 366,022 | $ | 396,657 | ||||||||||
Calculation of net reserves, net unearned premium and net deferred policy acquisition costs | ' | |||||||||||||
September 30, | December 31, | |||||||||||||
2013 | 2012 | |||||||||||||
Loss and loss adjustment expense payable | $ | 4,021,847 | $ | 3,767,850 | ||||||||||
Reinsurance recoverable on outstanding losses | -456,364 | -479,026 | ||||||||||||
Reinsurance recoverable on incurred but not reported losses | -709,451 | -539,021 | ||||||||||||
Net reserves | $ | 2,856,032 | $ | 2,749,803 | ||||||||||
Unearned premium | $ | 1,165,580 | $ | 1,069,956 | ||||||||||
Ceded unearned premium | -301,891 | -256,988 | ||||||||||||
Net unearned premium | $ | 863,689 | $ | 812,968 | ||||||||||
Deferred policy acquisition costs | $ | 204,740 | $ | 191,960 | ||||||||||
Deferred ceding commissions | -86,804 | -74,609 | ||||||||||||
Net deferred policy acquisition costs | $ | 117,936 | $ | 117,351 |
Reinsurance_Details
Reinsurance (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Effect of reinsurance transactions on our premium, loss and loss adjustment expense and policy acquisition costs | ' | ' | ' | ' |
Direct written premium | $616,938 | $603,844 | $1,911,619 | $1,826,610 |
Reinsurance assumed | 61,975 | 61,919 | 296,942 | 313,395 |
Reinsurance ceded | -157,179 | -135,456 | -478,609 | -409,206 |
Net written premium | 521,734 | 530,307 | 1,729,952 | 1,730,799 |
Direct earned premium | 622,464 | 601,572 | 1,860,093 | 1,795,109 |
Reinsurance assumed | 81,594 | 90,988 | 252,902 | 259,870 |
Reinsurance ceded | -147,390 | -128,910 | -433,785 | -378,857 |
Net earned premium | 556,668 | 563,650 | 1,679,210 | 1,676,122 |
Direct loss and loss adjustment expense | 517,382 | 301,306 | 1,210,862 | 1,029,227 |
Reinsurance assumed | 8,607 | 35,108 | 119,315 | 96,143 |
Reinsurance ceded | -205,613 | -32,400 | -337,630 | -155,603 |
Net loss and loss adjustment expense | 320,376 | 304,014 | 992,547 | 969,767 |
Policy acquisition costs | 105,254 | 101,698 | 309,285 | 299,854 |
Ceding commissions | -39,612 | -34,078 | -105,898 | -88,300 |
Net policy acquisition costs | $65,642 | $67,620 | $203,387 | $211,554 |
Reinsurance_Details_1
Reinsurance (Details 1) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Components of reinsurance recoverables | ' | ' |
Reinsurance recoverable on paid losses | $51,262 | $54,675 |
Reinsurance recoverable on outstanding losses | 456,364 | 479,026 |
Reinsurance recoverable on incurred but not reported losses | 709,451 | 539,021 |
Reserve for uncollectible reinsurance | -1,500 | -1,500 |
Total reinsurance recoverables | $1,215,577 | $1,071,222 |
Reinsurance_Details_4
Reinsurance (Details 4) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Amounts of letters of credit and cash available to us as collateral, plus other potential offsets | ' | ' |
Payables to reinsurers | $194,857 | $190,228 |
Letters of credit | 82,115 | 89,832 |
Funds held in trust | 89,050 | 116,597 |
Total credits | $366,022 | $396,657 |
Reinsurance_Details_5
Reinsurance (Details 5) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||||
Calculation of net reserves, net unearned premium and net deferred policy acquisition costs | ' | ' | ' | ' | ' | ' |
Loss and loss adjustment expense payable | $4,021,847 | ' | $3,767,850 | ' | ' | ' |
Reinsurance recoverable on outstanding losses | -456,364 | ' | -479,026 | ' | ' | ' |
Reinsurance recoverable on incurred but not reported losses | -709,451 | ' | -539,021 | ' | ' | ' |
Net reserves | 2,856,032 | 2,811,021 | 2,749,803 | 2,735,013 | 2,748,995 | 2,683,483 |
Unearned premium | 1,165,580 | ' | 1,069,956 | ' | ' | ' |
Ceded unearned premium | -301,891 | ' | -256,988 | ' | ' | ' |
Net unearned premium | 863,689 | ' | 812,968 | ' | ' | ' |
Deferred policy acquisition costs | 204,740 | ' | 191,960 | ' | ' | ' |
Deferred ceding commissions | -86,804 | ' | -74,609 | ' | ' | ' |
Net deferred policy acquisition costs | $117,936 | ' | $117,351 | ' | ' | ' |
Liability_for_Unpaid_Loss_and_
Liability for Unpaid Loss and Loss Adjustment Expense | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Liability for Unpaid Loss and Loss Adjustment Expense | ' | ||||||||||||||
Liability For Future Policy Benefits And Unpaid Claims Disclosure TextBlock | ' | ||||||||||||||
(7) Liability for Unpaid Loss and Loss Adjustment Expense | |||||||||||||||
The table below provides a reconciliation of our consolidated liability for loss and loss adjustment expense payable (referred to as reserves), net of reinsurance ceded. | |||||||||||||||
Nine months ended September 30, | Three months ended September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net reserves for loss and loss adjustment expense payable | |||||||||||||||
at beginning of period | $ | 2,749,803 | $ | 2,683,483 | $ | 2,811,021 | $ | 2,748,995 | |||||||
Net reserve additions from acquired businesses | - | 14,705 | 0 | 0 | |||||||||||
Foreign currency adjustment | -2,296 | 11,261 | 22,331 | 15,717 | |||||||||||
Net loss and loss adjustment expense | 992,547 | 969,767 | 320,376 | 304,014 | |||||||||||
Net loss and loss adjustment expense payments | -884,022 | -944,203 | -297,696 | -333,713 | |||||||||||
Net reserves for loss and loss adjustment expense | |||||||||||||||
payable at end of period | $ | 2,856,032 | $ | 2,735,013 | $ | 2,856,032 | $ | 2,735,013 | |||||||
The table below details our net loss and loss adjustment expense on a consolidated basis and for our segments. | |||||||||||||||
Nine months ended September 30, | Three months ended September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net (favorable) adverse loss development: | |||||||||||||||
U.S. Property & Casualty | $ | -40,754 | $ | 2,138 | $ | -40,754 | $ | 2,138 | |||||||
Professional Liability | -26,284 | -26,186 | -26,284 | -26,186 | |||||||||||
Accident & Health | - | -10,695 | - | -10,695 | |||||||||||
U.S. Surety & Credit | -9,492 | - | - | - | |||||||||||
International | 36,896 | - | 39,196 | - | |||||||||||
Exited Lines | - | 111 | - | 111 | |||||||||||
Total net favorable loss development | -39,634 | -34,632 | -27,842 | -34,632 | |||||||||||
Catastrophe losses | 48,055 | 21,406 | 18,134 | 8,738 | |||||||||||
All other net loss and loss adjustment expense | 984,126 | 982,993 | 330,084 | 329,908 | |||||||||||
Net loss and loss adjustment expense | $ | 992,547 | $ | 969,767 | $ | 320,376 | $ | 304,014 | |||||||
In the third quarter of 2013, we conducted our annual review of the reserves in our U.S. Property & Casualty, Professional Liability and International segments. Based on this review, we recognized net favorable loss development of $27.8 million, which is described by segment below: | |||||||||||||||
U.S. Property & Casualty | |||||||||||||||
Net favorable development of $40.8 million was due to better than expected actual experience, primarily in underwriting years 2011 and prior, compared to the same review conducted in the third quarter of 2012. The majority of the net favorable development related to a run-off assumed quota share contract, where experience continues to develop favorably. While some lines of business experienced adverse loss development, which partially offset favorable development, such adverse development was immaterial. | |||||||||||||||
Professional Liability | |||||||||||||||
Net favorable development of $26.3 million was due to better than expected experience in the U.S. D&O and International D&O lines of business, compared to the same review conducted in the third quarter of 2012. The favorable development primarily related to underwriting years prior to 2007, as well as 2009 and 2010 (totaling $64.2 million), partially offset by reserve strengthening in underwriting years 2007 and 2008 (totaling $37.9 million) that were impacted by the worldwide financial crisis. Reserves for the diversified financial products (DFP) line of business within U.S. D&O performed slightly better than expected in the past year, but no changes were made to the estimated ultimate losses given the continued evaluation and re-underwriting of this line of business. | |||||||||||||||
International | |||||||||||||||
Net adverse development of $39.2 million was due to reserve strengthening of $70.3 million in the surety & credit line of business, partially offset by net favorable development in several other lines of business, primarily energy and liability. For surety & credit, we increased our reserves on a specific class of Spanish surety bonds, the majority of which were written prior to 2006. The increase was made to reflect our revised estimates of our liability under these bonds in light of an adverse Spanish Supreme Court ruling reported in September 2013 against an unaffiliated insurance company with respect to a surety bond similar to ours. The net favorable development in energy ($13.1 million) and liability ($13.3 million) primarily related to better than expected experience in underwriting years 2011 and prior, as well as $3.0 million related to the release of 2012 energy catastrophe reserves for Hurricane Sandy, due to lower than expected losses. | |||||||||||||||
In the second quarter of 2013, we recognized favorable development of $9.5 million in our U.S. Surety & Credit segment and $2.3 million in our International segment. Our review of reserves at that time indicated that continued lower than expected claims activity related to older underwriting years was contributing to a growing redundancy in our U.S. Surety & Credit segment. As a result, we recognized favorable development of $3.7 million and $5.8 million for our surety and credit lines of business, respectively, related to the 2010 and prior underwriting years. In the International segment, we released $2.3 million of prior year catastrophe reserves related to the 2010 New Zealand earthquake, due to settlement of these claims in 2013. | |||||||||||||||
In the first nine months and third quarter of 2012, our Professional Liability and Accident & Health segments reported net favorable loss development of $26.2 million and $10.7 million, respectively, resulting from our scheduled annual reviews of these reserves. The net favorable development in our Professional Liability segment consisted of $9.3 million in U.S. D&O and $16.9 million in International D&O related to lower than expected reported loss development in underwriting years 2003 – 2006, partially offset by higher expected losses in underwriting year 2008. The favorable development in our Accident & Health segment related to favorable claims activity in the medical stop-loss product line for the 2011 underwriting year. |
Liability_for_Unpaid_Loss_and_1
Liability for Unpaid Loss and Loss Adjustment Expense (Tables) | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Liability for Unpaid Loss and Loss Adjustment Expense | ' | ||||||||||||||
Rollforward of Liability for Unpaid Loss and Loss Adjustment Expense | ' | ||||||||||||||
Nine months ended September 30, | Three months ended September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net reserves for loss and loss adjustment expense payable | |||||||||||||||
at beginning of period | $ | 2,749,803 | $ | 2,683,483 | $ | 2,811,021 | $ | 2,748,995 | |||||||
Net reserve additions from acquired businesses | - | 14,705 | 0 | 0 | |||||||||||
Foreign currency adjustment | -2,296 | 11,261 | 22,331 | 15,717 | |||||||||||
Net loss and loss adjustment expense | 992,547 | 969,767 | 320,376 | 304,014 | |||||||||||
Net loss and loss adjustment expense payments | -884,022 | -944,203 | -297,696 | -333,713 | |||||||||||
Net reserves for loss and loss adjustment expense | |||||||||||||||
payable at end of period | $ | 2,856,032 | $ | 2,735,013 | $ | 2,856,032 | $ | 2,735,013 | |||||||
LiabilityForUnpaidClaimsAdjustmentExpenseByExpenseTypeTextBlock | ' | ||||||||||||||
Nine months ended September 30, | Three months ended September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net (favorable) adverse loss development: | |||||||||||||||
U.S. Property & Casualty | $ | -40,754 | $ | 2,138 | $ | -40,754 | $ | 2,138 | |||||||
Professional Liability | -26,284 | -26,186 | -26,284 | -26,186 | |||||||||||
Accident & Health | - | -10,695 | - | -10,695 | |||||||||||
U.S. Surety & Credit | -9,492 | - | - | - | |||||||||||
International | 36,896 | - | 39,196 | - | |||||||||||
Exited Lines | - | 111 | - | 111 | |||||||||||
Total net favorable loss development | -39,634 | -34,632 | -27,842 | -34,632 | |||||||||||
Catastrophe losses | 48,055 | 21,406 | 18,134 | 8,738 | |||||||||||
All other net loss and loss adjustment expense | 984,126 | 982,993 | 330,084 | 329,908 | |||||||||||
Net loss and loss adjustment expense | $ | 992,547 | $ | 969,767 | $ | 320,376 | $ | 304,014 |
Liability_for_Unpaid_Loss_and_2
Liability for Unpaid Loss and Loss Adjustment Expense (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
LiabilityForUnpaidClaimsAndClaimsAdjustmentExpenseNetAbstract | ' | ' | ' | ' |
Net reserves for loss and loss adjustment expense payable at beginning of period | $2,811,021 | $2,748,995 | $2,749,803 | $2,683,483 |
Net reserve additions from acquired businesses | 0 | 0 | 0 | 14,705 |
Foreign currency adjustment | 22,331 | 15,717 | -2,296 | 11,261 |
Net loss and loss adjustment expense | 320,376 | 304,014 | 992,547 | 969,767 |
Net loss and loss adjustment expense payments | -297,696 | -333,713 | -884,022 | -944,203 |
Net reserves for loss and loss adjustment expense payable at end of period | $2,856,032 | $2,735,013 | $2,856,032 | $2,735,013 |
Liability_for_Unpaid_Loss_and_3
Liability for Unpaid Loss and Loss Adjustment Expense (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net (Favorable) Adverse Loss Development | ($27,842) | ' | ($34,632) | ($39,634) | ($34,632) |
Catastrophe losses | 18,134 | ' | 8,738 | 48,055 | 21,406 |
All other net loss and loss adjustment expense | 330,084 | ' | 329,908 | 984,126 | 982,993 |
Net loss and loss adjustment expense | 320,376 | ' | 304,014 | 992,547 | 969,767 |
U.S. Property & Casualty [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net (Favorable) Adverse Loss Development | -40,754 | ' | 2,138 | -40,754 | 2,138 |
Net loss and loss adjustment expense | 13,666 | ' | 53,229 | 121,060 | 154,156 |
Professional Liability [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net (Favorable) Adverse Loss Development | -26,284 | ' | -26,186 | -26,284 | -26,186 |
Net loss and loss adjustment expense | 30,100 | ' | 36,183 | 141,921 | 170,506 |
Accident & Health [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net (Favorable) Adverse Loss Development | 0 | ' | -10,695 | 0 | -10,695 |
Net loss and loss adjustment expense | 163,143 | ' | 140,344 | 483,709 | 447,262 |
U.S. Surety & Credit [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net (Favorable) Adverse Loss Development | 0 | -9,500 | 0 | -9,492 | 0 |
Net loss and loss adjustment expense | 13,436 | ' | 15,721 | 32,287 | 42,444 |
International [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net (Favorable) Adverse Loss Development | 39,196 | -2,300 | 0 | 36,896 | 0 |
Net loss and loss adjustment expense | 99,221 | ' | 46,924 | 204,137 | 126,547 |
Exited Lines [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net (Favorable) Adverse Loss Development | $0 | ' | $111 | $0 | $111 |
Liability_for_Unpaid_Loss_and_4
Liability for Unpaid Loss and Loss Adjustment Expense (Details Textuals1) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Lob Event Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net (Favorable) Adverse Loss Development | ($27,842) | ' | ($34,632) | ($39,634) | ($34,632) |
Catastrophe losses | 18,134 | ' | 8,738 | 48,055 | 21,406 |
U.S. Property & Casualty [Member] | ' | ' | ' | ' | ' |
Segment Lob Event Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net (Favorable) Adverse Loss Development | -40,754 | ' | 2,138 | -40,754 | 2,138 |
Professional Liability [Member] | ' | ' | ' | ' | ' |
Segment Lob Event Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net (Favorable) Adverse Loss Development | -26,284 | ' | -26,186 | -26,284 | -26,186 |
Accident & Health [Member] | ' | ' | ' | ' | ' |
Segment Lob Event Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net (Favorable) Adverse Loss Development | 0 | ' | -10,695 | 0 | -10,695 |
U.S. Surety & Credit [Member] | ' | ' | ' | ' | ' |
Segment Lob Event Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net (Favorable) Adverse Loss Development | 0 | -9,500 | 0 | -9,492 | 0 |
International [Member] | ' | ' | ' | ' | ' |
Segment Lob Event Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net (Favorable) Adverse Loss Development | 39,196 | -2,300 | 0 | 36,896 | 0 |
Exited Lines [Member] | ' | ' | ' | ' | ' |
Segment Lob Event Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net (Favorable) Adverse Loss Development | 0 | ' | 111 | 0 | 111 |
US D & O [Member] | Professional Liability [Member] | ' | ' | ' | ' | ' |
Segment Lob Event Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net (Favorable) Adverse Loss Development | -9,300 | ' | ' | -9,300 | ' |
International D & O [Member] | Professional Liability [Member] | ' | ' | ' | ' | ' |
Segment Lob Event Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net (Favorable) Adverse Loss Development | -16,900 | ' | ' | -16,900 | ' |
Surety [Member] | U.S. Surety & Credit [Member] | ' | ' | ' | ' | ' |
Segment Lob Event Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net (Favorable) Adverse Loss Development | ' | -3,700 | ' | -3,700 | ' |
Credit LOB [Member] | U.S. Surety & Credit [Member] | ' | ' | ' | ' | ' |
Segment Lob Event Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net (Favorable) Adverse Loss Development | ' | -5,800 | ' | -5,800 | ' |
Energy [Member] | International [Member] | ' | ' | ' | ' | ' |
Segment Lob Event Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net (Favorable) Adverse Loss Development | -13,100 | ' | ' | -13,100 | ' |
Liability LOB [Member] | International [Member] | ' | ' | ' | ' | ' |
Segment Lob Event Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net (Favorable) Adverse Loss Development | -13,300 | ' | ' | -13,300 | ' |
Surety & Credit [Member] | International [Member] | ' | ' | ' | ' | ' |
Segment Lob Event Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net (Favorable) Adverse Loss Development | 70,300 | ' | ' | 70,300 | ' |
D&O prior to 2007 and 2009 and 2010 | Professional Liability [Member] | ' | ' | ' | ' | ' |
Segment Lob Event Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net (Favorable) Adverse Loss Development | -64,200 | ' | ' | -64,200 | ' |
D&O 2007 and 2008 | Professional Liability [Member] | ' | ' | ' | ' | ' |
Segment Lob Event Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net (Favorable) Adverse Loss Development | 37,900 | ' | ' | 37,900 | ' |
Energy LOB - release of 2012 catastrophe reserves for Hurricane Sandy | International [Member] | ' | ' | ' | ' | ' |
Segment Lob Event Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net (Favorable) Adverse Loss Development | -3,000 | ' | ' | -3,000 | ' |
International segment - release of 2010 catastrophe reserves for New Zealand earthquake | International [Member] | ' | ' | ' | ' | ' |
Segment Lob Event Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net (Favorable) Adverse Loss Development | ' | ($2,300) | ' | ($2,300) | ' |
Notes_Payable
Notes Payable | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Notes Payable [Abstract] | ' | ||||||||
Notes Payable | ' | ||||||||
(8) Notes Payable | |||||||||
Our notes payable consisted of the following: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
6.30% Senior Notes | $ | 299,059 | $ | 298,944 | |||||
$600.0 million Revolving Loan Facility | 355,000 | 285,000 | |||||||
Total notes payable | $ | 654,059 | $ | 583,944 | |||||
On April 26, 2013, we entered into an agreement to modify our $600.0 million Revolving Loan Facility (the Facility). Under the amended agreement, the Facility expires on April 26, 2017. The new borrowing rate is LIBOR plus 125 basis points with a commitment fee of 15 basis points. The weighted-average interest rate on borrowings under the Facility at September 30, 2013 was 1.43%. The borrowings and letters of credit issued under the Facility reduced our available borrowing capacity on the Facility to $239.1 million at September 30, 2013. | |||||||||
There have been no changes to the terms and conditions related to our Senior Notes or the Standby Letter of Credit Facility (Standby Facility) from those described in Note 7, “Notes Payable” to the Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2012. | |||||||||
We were in compliance with debt covenants related to our 6.30% Senior Notes, the Facility and the Standby Facility at September 30, 2013. | |||||||||
Notes_Payable_Tables
Notes Payable (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Notes Payable [Abstract] | ' | ||||||||
Notes Payable | ' | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
6.30% Senior Notes | $ | 299,059 | $ | 298,944 | |||||
$600.0 million Revolving Loan Facility | 355,000 | 285,000 | |||||||
Total notes payable | $ | 654,059 | $ | 583,944 |
Notes_Payable_Details
Notes Payable (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Notes Payable [Line Items] | ' | ' |
Notes payable | $654,059 | $583,944 |
6.3% Senior Notes [Member] | ' | ' |
Notes Payable [Line Items] | ' | ' |
Notes payable | 299,059 | 298,944 |
$600 Million Revolving Loan Facility [Member] | ' | ' |
Notes Payable [Line Items] | ' | ' |
Notes payable | $355,000 | $285,000 |
Notes_Payable_Detail_Textuals
Notes Payable (Detail Textuals) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Notes Payable [Abstract] | ' |
Interest rate of senior notes | 6.30% |
Borrowing capacity under line of credit facility | $600 |
Borrowing rate under revolving loan facility | 1.25% |
Contractual interest rate on borrowing under facility | 1.43% |
Commitment fees basis points for revolving loan facility | 0.15% |
Remaining borrowing capacity under Revolving Loan Facility as reduced by outstanding letters of credit | $239.10 |
Line of credit facility expiration date | 26-Apr-17 |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Taxes [Abstract] | ' |
Income Taxes [Text Block] | ' |
(9) Income Taxes | |
Deferred income tax is accounted for using the liability method, which reflects the tax impact of temporary differences between the bases of assets and liabilities for financial reporting purposes and such bases as measured by tax laws and regulations. We provide a deferred tax liability for un-repatriated earnings of our foreign subsidiaries at prevailing statutory rates when required. The deferred tax liability of our foreign subsidiaries at September 30, 2013 was based on the assumption that we will merge certain subsidiaries in our International segment. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Accumulated Other Comprehensive Income [Abstract] | ' | |||||||||||||
Accumulated Other Comprehensive Income [Text Block] | ' | |||||||||||||
(10) Accumulated Other Comprehensive Income | ||||||||||||||
The components of accumulated other comprehensive income in our consolidated balance sheets were as follows: | ||||||||||||||
Foreign | Accumulated | |||||||||||||
Net unrealized | currency | other | ||||||||||||
investment | translation | comprehensive | ||||||||||||
gains (losses) | adjustment | income | ||||||||||||
Nine months ended September 30, 2013 | ||||||||||||||
Balance at December 31, 2012 | $ | 282,503 | $ | 12,768 | $ | 295,271 | ||||||||
Other comprehensive income (loss) | -170,180 | 4,911 | -165,269 | |||||||||||
Balance at September 30, 2013 | $ | 112,323 | $ | 17,679 | $ | 130,002 | ||||||||
Three months ended September 30, 2013 | ||||||||||||||
Balance at June 30, 2013 | $ | 113,942 | $ | 12,177 | $ | 126,119 | ||||||||
Other comprehensive income (loss) | -1,619 | 5,502 | 3,883 | |||||||||||
Balance at September 30, 2013 | $ | 112,323 | $ | 17,679 | $ | 130,002 | ||||||||
The reductions in net unrealized investment gains (losses) during 2013, shown in the table above, included reclassifications of amounts into net earnings. The reclassifications recorded in our consolidated statements of earnings were as follows: | ||||||||||||||
Nine months | Three months | |||||||||||||
ended | ended | |||||||||||||
30-Sep-13 | 30-Sep-13 | |||||||||||||
Net realized investment gain | $ | 31,115 | $ | 17,922 | ||||||||||
Income tax expense | 10,890 | 6,272 | ||||||||||||
Total reclassifications | $ | 20,225 | $ | 11,650 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Accumulated Other Comprehensive Income [Abstract] | ' | |||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ' | |||||||||||||
Foreign | Accumulated | |||||||||||||
Net unrealized | currency | other | ||||||||||||
investment | translation | comprehensive | ||||||||||||
gains (losses) | adjustment | income | ||||||||||||
Nine months ended September 30, 2013 | ||||||||||||||
Balance at December 31, 2012 | $ | 282,503 | $ | 12,768 | $ | 295,271 | ||||||||
Other comprehensive income (loss) | -170,180 | 4,911 | -165,269 | |||||||||||
Balance at September 30, 2013 | $ | 112,323 | $ | 17,679 | $ | 130,002 | ||||||||
Three months ended September 30, 2013 | ||||||||||||||
Balance at June 30, 2013 | $ | 113,942 | $ | 12,177 | $ | 126,119 | ||||||||
Other comprehensive income (loss) | -1,619 | 5,502 | 3,883 | |||||||||||
Balance at September 30, 2013 | $ | 112,323 | $ | 17,679 | $ | 130,002 | ||||||||
Nine months | Three months | |||||||||||||
ended | ended | |||||||||||||
30-Sep-13 | 30-Sep-13 | |||||||||||||
Net realized investment gain | $ | 31,115 | $ | 17,922 | ||||||||||
Income tax expense | 10,890 | 6,272 | ||||||||||||
Total reclassifications | $ | 20,225 | $ | 11,650 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance | $126,119 | ' | $295,271 | ' |
Other Comprehensive Loss Net Of Tax | 3,883 | 58,463 | -165,269 | 90,580 |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance | 130,002 | ' | 130,002 | ' |
Net realized investment gain | 17,922 | 832 | 31,115 | 7,491 |
Income tax expense | 6,272 | 291 | 10,890 | 2,622 |
Total reclassifications | 11,650 | 541 | 20,225 | 4,869 |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance | 113,942 | ' | 282,503 | ' |
Other Comprehensive Loss Net Of Tax | -1,619 | ' | -170,180 | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance | 112,323 | ' | 112,323 | ' |
Accumulated Translation Adjustment [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance | 12,177 | ' | 12,768 | ' |
Other Comprehensive Loss Net Of Tax | 5,502 | ' | 4,911 | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance | 17,679 | ' | 17,679 | ' |
Accumulated other comprehensive income [Member] | ' | ' | ' | ' |
Other Comprehensive Loss Net Of Tax | ' | ' | ($165,269) | ' |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||
Earnings Per Share | ' | ||||||||||||||
(11) Earnings Per Share | |||||||||||||||
The following table details the numerator and denominator used in our earnings per share calculations. | |||||||||||||||
Nine months ended September 30, | Three months ended September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net earnings | $ | 292,187 | $ | 283,139 | $ | 98,175 | $ | 107,062 | |||||||
Less: net earnings attributable to unvested restricted stock | -4,754 | -5,150 | -1,527 | -1,912 | |||||||||||
Net earnings available to common stock | $ | 287,433 | $ | 277,989 | $ | 96,648 | $ | 105,150 | |||||||
Weighted-average common shares outstanding | 98,881 | 100,340 | 98,723 | 99,424 | |||||||||||
Dilutive effect of outstanding securities (determined using | |||||||||||||||
treasury stock method) | 254 | 261 | 270 | 276 | |||||||||||
Weighted-average common shares and potential | |||||||||||||||
common shares outstanding | 99,135 | 100,601 | 98,993 | 99,700 | |||||||||||
Anti-dilutive securities not included in treasury stock | |||||||||||||||
method computation | 89 | 717 | 131 | 461 |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||
Earnings per share | ' | ||||||||||||||
Nine months ended September 30, | Three months ended September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net earnings | $ | 292,187 | $ | 283,139 | $ | 98,175 | $ | 107,062 | |||||||
Less: net earnings attributable to unvested restricted stock | -4,754 | -5,150 | -1,527 | -1,912 | |||||||||||
Net earnings available to common stock | $ | 287,433 | $ | 277,989 | $ | 96,648 | $ | 105,150 | |||||||
Weighted-average common shares outstanding | 98,881 | 100,340 | 98,723 | 99,424 | |||||||||||
Dilutive effect of outstanding securities (determined using | |||||||||||||||
treasury stock method) | 254 | 261 | 270 | 276 | |||||||||||
Weighted-average common shares and potential | |||||||||||||||
common shares outstanding | 99,135 | 100,601 | 98,993 | 99,700 | |||||||||||
Anti-dilutive securities not included in treasury stock | |||||||||||||||
method computation | 89 | 717 | 131 | 461 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Earnings Per Share, Basic and Diluted | ' | ' | ' | ' |
Net earnings | $98,175 | $107,062 | $292,187 | $283,139 |
Less: net earnings attributable to unvested restricted stock | -1,527 | -1,912 | -4,754 | -5,150 |
Net earnings available to common stock | $96,648 | $105,150 | $287,433 | $277,989 |
Weighted-average common shares outstanding | 98,723 | 99,424 | 98,881 | 100,340 |
Dilutive effect of outstanding securities (determined using treasury stock method) | 270 | 276 | 254 | 261 |
Weighted-average common shares and potential common shares outstanding | 98,993 | 99,700 | 99,135 | 100,601 |
Anti-dilutive securities not included in treasury stock method computation | 131 | 461 | 89 | 717 |
Stock_based_Compensation
Stock based Compensation | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Stock based Compensation [Abstract] | ' | |||||||||||
Stock based Compensation | ' | |||||||||||
(12) Stock-Based Compensation | ||||||||||||
In 2013, we granted the following shares of common stock, shares of restricted stock, restricted stock units and stock options for the purchase of shares of our common stock. | ||||||||||||
Weighted-average | ||||||||||||
Number | grant date | Aggregate | Vesting | |||||||||
of shares | fair value | fair value | period | |||||||||
Common stock | 22 | $ | 42.46 | $ | 918 | None | ||||||
Restricted stock | 191 | 41.3 | 7,893 | 1 - 4 years | ||||||||
Restricted stock units | 16 | 40.66 | 661 | 4 years | ||||||||
Stock options | 154 | 7.37 | 1,131 | 1 - 5 years | ||||||||
For common stock grants, we measure fair value based on the closing stock price of our common stock on the grant date and expense it on the grant date. | ||||||||||||
Certain awards of restricted stock and restricted stock units contain a performance condition based on the ultimate results for the 2012 underwriting year. The number of such shares that vest could differ from the number initially granted. We measure fair value for these awards based on the closing price of our common stock on the grant date, and we recognize expense on a straight-line basis over the vesting period for those awards expected to vest. These awards earn dividends or dividend equivalents during the vesting period. | ||||||||||||
In 2013, we granted a new form of restricted stock to certain of our executive officers. This restricted stock vests after three years and can vest from 0% to 200% of the initial shares granted. Vesting is determined equally based on an operating return on equity performance factor (ROE factor) and a total shareholder return performance factor (TSR factor). The ROE factor is calculated by comparing our actual results over the three-year period to an internal target, whereas the TSR factor is calculated by comparing our TSR over the three-year period to that of nine peer companies. The ROE factor qualifies as a performance condition and those awards are accounted for in the same manner as the other restricted stock grants described above. The TSR factor qualifies as a market condition and we determine the fair value at grant date using a Monte Carlo simulation model that takes into account the probabilities of numerous outcomes of our TSR as well as that of the peer companies. This fair value is expensed on a straight-line basis over the vesting period and is not adjusted for the ultimate number of shares to vest. No dividends are earned during the vesting period on these shares. | ||||||||||||
For stock options, we use the Black-Scholes option pricing model to determine the fair value of an option on its grant date. The fair value is expensed over the vesting period. | ||||||||||||
Employee Stock Purchase Plan | ||||||||||||
In the second quarter of 2013, our stockholders authorized the issuance of up to 2.0 million shares of our common stock under the 2013 Employee Stock Purchase Plan (ESPP). The ESPP encourages share ownership by providing employees the opportunity to purchase our common stock at 85% of the closing price of the stock on either the first day or the last day of each six-month offering period (whichever is lower). Employees can invest between 1% and 15% of their base salary, subject to a maximum of the lesser of 1,500 shares in each offering period or $25,000 in each calendar year. The first offering period began on September 16, 2013 and ends on March 14, 2014. We recognize expense related to the ESPP over each offering period. The expense includes the 15% discount and the fair value of the “look-back” option calculated using the Black-Scholes option pricing model. |
Stock_Based_Compensation_Table
Stock Based Compensation (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Share-based Compensation [Abstract] | ' | |||||||||||
Schedule Of Share Based Payment Awards Assumptions [Table Text Block] | ' | |||||||||||
Weighted-average | ||||||||||||
Number | grant date | Aggregate | Vesting | |||||||||
of shares | fair value | fair value | period | |||||||||
Common stock | 22 | $ | 42.46 | $ | 918 | None | ||||||
Restricted stock | 191 | 41.3 | 7,893 | 1 - 4 years | ||||||||
Restricted stock units | 16 | 40.66 | 661 | 4 years | ||||||||
Stock options | 154 | 7.37 | 1,131 | 1 - 5 years |
Stock_based_Compensation_Detai
Stock based Compensation (Details Textuals) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Stock Based Compensation [Line Items] | ' |
Shares authorized for Issuance Under Employee Stock Purchase Plan | 2,000,000 |
Employee Stock Purchase Plans Base Salary Investment Percentage Minimum | 1.00% |
Employee Stock Purchase Plans Base Salary Investment Percentage Maximum | 15.00% |
Employee Stock Purchase Plans Investment Limit Per Period Shares | 1,500 |
Employee Stock Purchase Plans Investment Limit Per Calendar Year Fair Value | $25,000 |
Employee Stock Purchase Plans Recognized Expense Related To Discount Rate | 15.00% |
MinimumMember | ' |
Stock Based Compensation [Line Items] | ' |
Percentage Of Restricted Stock Shares Vesting Range | 0.00% |
MaximumMember | ' |
Stock Based Compensation [Line Items] | ' |
Percentage Of Restricted Stock Shares Vesting Range | 200.00% |
Recovered_Sheet1
Stock based compensation (Details 3) (USD $) | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 |
Common stock [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of shares | 22 |
Weighted-average grant date fair value, awarded | $42.46 |
Aggregate fair value | $918 |
Restricted stock [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of shares | 191 |
Weighted-average grant date fair value, awarded | $41.30 |
Aggregate fair value | 7,893 |
Restricted stock [Member] | MinimumMember | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Vesting period | '1 year |
Restricted stock [Member] | MaximumMember | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Vesting period | '4 years |
Restricted stock units (RSU) [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of shares | 16 |
Weighted-average grant date fair value, awarded | $40.66 |
Aggregate fair value | 661 |
Restricted stock units (RSU) [Member] | MinimumMember | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Vesting period | '4 years |
Restricted stock units (RSU) [Member] | MaximumMember | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Vesting period | '4 years |
StockOptionsMember | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of shares | 154 |
Weighted-average grant date fair value, awarded | $7.37 |
Aggregate fair value | $1,131 |
StockOptionsMember | MinimumMember | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Vesting period | '1 year |
StockOptionsMember | MaximumMember | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Vesting period | '5 years |
Segments
Segments | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||
Segments [Abstract] | ' | |||||||||||||||||||||||||
Segments | ' | |||||||||||||||||||||||||
In addition to our segments, we include a Corporate & Other category to reconcile segment results to consolidated totals. The Corporate & Other category includes corporate operating expenses not allocable to the segments, interest expense on long-term debt, foreign currency expense/benefit, and underwriting results of our Exited Lines. Our Exited Lines include product lines that we no longer write and do not expect to write in the future. | ||||||||||||||||||||||||||
The following tables present information by business segment. | ||||||||||||||||||||||||||
U.S. Property & Casualty | Professional Liability | Accident & Health | U.S. Surety & Credit | International | Investing | Corporate & Other | Consolidated | |||||||||||||||||||
Nine months ended September 30, 2013 | ||||||||||||||||||||||||||
Net earned premium | $ | 276,647 | $ | 277,662 | $ | 657,995 | $ | 144,673 | $ | 311,261 | $ | 0 | $ | 10,972 | $ | 1,679,210 | ||||||||||
Other revenue | 16,198 | 304 | 3,736 | 1,027 | 2,790 | 196,756 | 253 | 221,064 | ||||||||||||||||||
Segment revenue | 292,845 | 277,966 | 661,731 | 145,700 | 314,051 | 196,756 | 11,225 | 1,900,274 | ||||||||||||||||||
Loss and LAE | 121,060 | 141,921 | 483,709 | 32,287 | 204,137 | 0 | 9,433 | 992,547 | ||||||||||||||||||
Other expense | 84,801 | 46,781 | 97,414 | 80,182 | 114,534 | 0 | 67,688 | 491,400 | ||||||||||||||||||
Segment expense | 205,861 | 188,702 | 581,123 | 112,469 | 318,671 | - | 77,121 | 1,483,947 | ||||||||||||||||||
Segment pretax earnings (loss) | $ | 86,984 | $ | 89,264 | $ | 80,608 | $ | 33,231 | $ | -4,620 | $ | 196,756 | $ | -65,896 | $ | 416,327 | ||||||||||
Nine months ended September 30, 2012 | ||||||||||||||||||||||||||
Net earned premium | $ | 265,593 | $ | 298,454 | $ | 624,077 | $ | 154,232 | $ | 302,303 | $ | 0 | $ | 31,463 | $ | 1,676,122 | ||||||||||
Other revenue | 15,300 | 799 | 3,589 | 659 | 2,766 | 174,133 | 116 | 197,362 | ||||||||||||||||||
Segment revenue | 280,893 | 299,253 | 627,666 | 154,891 | 305,069 | 174,133 | 31,579 | 1,873,484 | ||||||||||||||||||
Loss and LAE | 154,156 | 170,506 | 447,262 | 42,444 | 126,547 | 0 | 28,852 | 969,767 | ||||||||||||||||||
Other expense | 89,348 | 49,621 | 93,127 | 83,402 | 108,018 | 0 | 75,303 | 498,819 | ||||||||||||||||||
Segment expense | 243,504 | 220,127 | 540,389 | 125,846 | 234,565 | - | 104,155 | 1,468,586 | ||||||||||||||||||
Segment pretax earnings (loss) | $ | 37,389 | $ | 79,126 | $ | 87,277 | $ | 29,045 | $ | 70,504 | $ | 174,133 | $ | -72,576 | $ | 404,898 | ||||||||||
U.S. Property & Casualty | Professional Liability | Accident & Health | U.S. Surety & Credit | International | Investing | Corporate & Other | Consolidated | |||||||||||||||||||
Three months ended September 30, 2013 | ||||||||||||||||||||||||||
Net earned premium | $ | 91,684 | $ | 92,439 | $ | 223,048 | $ | 47,442 | $ | 100,849 | $ | 0 | $ | 1,206 | $ | 556,668 | ||||||||||
Other revenue | 4,769 | -21 | 1,406 | 406 | 888 | 72,130 | 231 | 79,809 | ||||||||||||||||||
Segment revenue | 96,453 | 92,418 | 224,454 | 47,848 | 101,737 | 72,130 | 1,437 | 636,477 | ||||||||||||||||||
Loss and LAE | 13,666 | 30,100 | 163,143 | 13,436 | 99,221 | 0 | 810 | 320,376 | ||||||||||||||||||
Other expense | 32,044 | 10,909 | 33,705 | 26,501 | 42,613 | 0 | 30,229 | 176,001 | ||||||||||||||||||
Segment expense | 45,710 | 41,009 | 196,848 | 39,937 | 141,834 | 0 | 31,039 | 496,377 | ||||||||||||||||||
Segment pretax earnings (loss) | $ | 50,743 | $ | 51,409 | $ | 27,606 | $ | 7,911 | $ | -40,097 | $ | 72,130 | $ | -29,602 | $ | 140,100 | ||||||||||
Three months ended September 30, 2012 | ||||||||||||||||||||||||||
Net earned premium | $ | 87,741 | $ | 97,549 | $ | 209,049 | $ | 53,388 | $ | 105,831 | $ | 0 | $ | 10,092 | $ | 563,650 | ||||||||||
Other revenue | 8,415 | 532 | 1,095 | 244 | 631 | 57,183 | -77 | 68,023 | ||||||||||||||||||
Segment revenue | 96,156 | 98,081 | 210,144 | 53,632 | 106,462 | 57,183 | 10,015 | 631,673 | ||||||||||||||||||
Loss and LAE | 53,229 | 36,183 | 140,344 | 15,721 | 46,924 | 0 | 11,613 | 304,014 | ||||||||||||||||||
Other expense | 29,581 | 13,414 | 32,025 | 27,879 | 39,253 | 0 | 31,888 | 174,040 | ||||||||||||||||||
Segment expense | 82,810 | 49,597 | 172,369 | 43,600 | 86,177 | - | 43,501 | 478,054 | ||||||||||||||||||
Segment pretax earnings (loss) | $ | 13,346 | $ | 48,484 | $ | 37,775 | $ | 10,032 | $ | 20,285 | $ | 57,183 | $ | -33,486 | $ | 153,619 | ||||||||||
In the first nine months and third quarter of 2013, the U.S. Property & Casualty segment pretax earnings included net favorable loss development of $40.8 million and the International segment pretax loss included reserve strengthening of $70.3 million related to Spanish surety bonds. | ||||||||||||||||||||||||||
Segments_Tables
Segments (Tables) | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||
Segments [Abstract] | ' | |||||||||||||||||||||||||
Information by business segment | ' | |||||||||||||||||||||||||
U.S. Property & Casualty | Professional Liability | Accident & Health | U.S. Surety & Credit | International | Investing | Corporate & Other | Consolidated | |||||||||||||||||||
Nine months ended September 30, 2013 | ||||||||||||||||||||||||||
Net earned premium | $ | 276,647 | $ | 277,662 | $ | 657,995 | $ | 144,673 | $ | 311,261 | $ | 0 | $ | 10,972 | $ | 1,679,210 | ||||||||||
Other revenue | 16,198 | 304 | 3,736 | 1,027 | 2,790 | 196,756 | 253 | 221,064 | ||||||||||||||||||
Segment revenue | 292,845 | 277,966 | 661,731 | 145,700 | 314,051 | 196,756 | 11,225 | 1,900,274 | ||||||||||||||||||
Loss and LAE | 121,060 | 141,921 | 483,709 | 32,287 | 204,137 | 0 | 9,433 | 992,547 | ||||||||||||||||||
Other expense | 84,801 | 46,781 | 97,414 | 80,182 | 114,534 | 0 | 67,688 | 491,400 | ||||||||||||||||||
Segment expense | 205,861 | 188,702 | 581,123 | 112,469 | 318,671 | - | 77,121 | 1,483,947 | ||||||||||||||||||
Segment pretax earnings (loss) | $ | 86,984 | $ | 89,264 | $ | 80,608 | $ | 33,231 | $ | -4,620 | $ | 196,756 | $ | -65,896 | $ | 416,327 | ||||||||||
Nine months ended September 30, 2012 | ||||||||||||||||||||||||||
Net earned premium | $ | 265,593 | $ | 298,454 | $ | 624,077 | $ | 154,232 | $ | 302,303 | $ | 0 | $ | 31,463 | $ | 1,676,122 | ||||||||||
Other revenue | 15,300 | 799 | 3,589 | 659 | 2,766 | 174,133 | 116 | 197,362 | ||||||||||||||||||
Segment revenue | 280,893 | 299,253 | 627,666 | 154,891 | 305,069 | 174,133 | 31,579 | 1,873,484 | ||||||||||||||||||
Loss and LAE | 154,156 | 170,506 | 447,262 | 42,444 | 126,547 | 0 | 28,852 | 969,767 | ||||||||||||||||||
Other expense | 89,348 | 49,621 | 93,127 | 83,402 | 108,018 | 0 | 75,303 | 498,819 | ||||||||||||||||||
Segment expense | 243,504 | 220,127 | 540,389 | 125,846 | 234,565 | - | 104,155 | 1,468,586 | ||||||||||||||||||
Segment pretax earnings (loss) | $ | 37,389 | $ | 79,126 | $ | 87,277 | $ | 29,045 | $ | 70,504 | $ | 174,133 | $ | -72,576 | $ | 404,898 | ||||||||||
U.S. Property & Casualty | Professional Liability | Accident & Health | U.S. Surety & Credit | International | Investing | Corporate & Other | Consolidated | |||||||||||||||||||
Three months ended September 30, 2013 | ||||||||||||||||||||||||||
Net earned premium | $ | 91,684 | $ | 92,439 | $ | 223,048 | $ | 47,442 | $ | 100,849 | $ | 0 | $ | 1,206 | $ | 556,668 | ||||||||||
Other revenue | 4,769 | -21 | 1,406 | 406 | 888 | 72,130 | 231 | 79,809 | ||||||||||||||||||
Segment revenue | 96,453 | 92,418 | 224,454 | 47,848 | 101,737 | 72,130 | 1,437 | 636,477 | ||||||||||||||||||
Loss and LAE | 13,666 | 30,100 | 163,143 | 13,436 | 99,221 | 0 | 810 | 320,376 | ||||||||||||||||||
Other expense | 32,044 | 10,909 | 33,705 | 26,501 | 42,613 | 0 | 30,229 | 176,001 | ||||||||||||||||||
Segment expense | 45,710 | 41,009 | 196,848 | 39,937 | 141,834 | 0 | 31,039 | 496,377 | ||||||||||||||||||
Segment pretax earnings (loss) | $ | 50,743 | $ | 51,409 | $ | 27,606 | $ | 7,911 | $ | -40,097 | $ | 72,130 | $ | -29,602 | $ | 140,100 | ||||||||||
Three months ended September 30, 2012 | ||||||||||||||||||||||||||
Net earned premium | $ | 87,741 | $ | 97,549 | $ | 209,049 | $ | 53,388 | $ | 105,831 | $ | 0 | $ | 10,092 | $ | 563,650 | ||||||||||
Other revenue | 8,415 | 532 | 1,095 | 244 | 631 | 57,183 | -77 | 68,023 | ||||||||||||||||||
Segment revenue | 96,156 | 98,081 | 210,144 | 53,632 | 106,462 | 57,183 | 10,015 | 631,673 | ||||||||||||||||||
Loss and LAE | 53,229 | 36,183 | 140,344 | 15,721 | 46,924 | 0 | 11,613 | 304,014 | ||||||||||||||||||
Other expense | 29,581 | 13,414 | 32,025 | 27,879 | 39,253 | 0 | 31,888 | 174,040 | ||||||||||||||||||
Segment expense | 82,810 | 49,597 | 172,369 | 43,600 | 86,177 | - | 43,501 | 478,054 | ||||||||||||||||||
Segment pretax earnings (loss) | $ | 13,346 | $ | 48,484 | $ | 37,775 | $ | 10,032 | $ | 20,285 | $ | 57,183 | $ | -33,486 | $ | 153,619 |
Segments_Details
Segments (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Information by business segment | ' | ' | ' | ' |
Net earned premium | $556,668 | $563,650 | $1,679,210 | $1,676,122 |
Other revenue | 79,809 | 68,023 | 221,064 | 197,362 |
Total revenue | 636,477 | 631,673 | 1,900,274 | 1,873,484 |
Loss and LAE | 320,376 | 304,014 | 992,547 | 969,767 |
Other expense | 176,001 | 174,040 | 491,400 | 498,819 |
Segment Expense | 496,377 | 478,054 | 1,483,947 | 1,468,586 |
Segment Pre Tax Earnings (Loss) | 140,100 | 153,619 | 416,327 | 404,898 |
U.S. Property & Casualty [Member] | ' | ' | ' | ' |
Information by business segment | ' | ' | ' | ' |
Net earned premium | 91,684 | 87,741 | 276,647 | 265,593 |
Other revenue | 4,769 | 8,415 | 16,198 | 15,300 |
Total revenue | 96,453 | 96,156 | 292,845 | 280,893 |
Loss and LAE | 13,666 | 53,229 | 121,060 | 154,156 |
Other expense | 32,044 | 29,581 | 84,801 | 89,348 |
Segment Expense | 45,710 | 82,810 | 205,861 | 243,504 |
Segment Pre Tax Earnings (Loss) | 50,743 | 13,346 | 86,984 | 37,389 |
Professional Liability [Member] | ' | ' | ' | ' |
Information by business segment | ' | ' | ' | ' |
Net earned premium | 92,439 | 97,549 | 277,662 | 298,454 |
Other revenue | -21 | 532 | 304 | 799 |
Total revenue | 92,418 | 98,081 | 277,966 | 299,253 |
Loss and LAE | 30,100 | 36,183 | 141,921 | 170,506 |
Other expense | 10,909 | 13,414 | 46,781 | 49,621 |
Segment Expense | 41,009 | 49,597 | 188,702 | 220,127 |
Segment Pre Tax Earnings (Loss) | 51,409 | 48,484 | 89,264 | 79,126 |
Accident & Health [Member] | ' | ' | ' | ' |
Information by business segment | ' | ' | ' | ' |
Net earned premium | 223,048 | 209,049 | 657,995 | 624,077 |
Other revenue | 1,406 | 1,095 | 3,736 | 3,589 |
Total revenue | 224,454 | 210,144 | 661,731 | 627,666 |
Loss and LAE | 163,143 | 140,344 | 483,709 | 447,262 |
Other expense | 33,705 | 32,025 | 97,414 | 93,127 |
Segment Expense | 196,848 | 172,369 | 581,123 | 540,389 |
Segment Pre Tax Earnings (Loss) | 27,606 | 37,775 | 80,608 | 87,277 |
U.S. Surety & Credit [Member] | ' | ' | ' | ' |
Information by business segment | ' | ' | ' | ' |
Net earned premium | 47,442 | 53,388 | 144,673 | 154,232 |
Other revenue | 406 | 244 | 1,027 | 659 |
Total revenue | 47,848 | 53,632 | 145,700 | 154,891 |
Loss and LAE | 13,436 | 15,721 | 32,287 | 42,444 |
Other expense | 26,501 | 27,879 | 80,182 | 83,402 |
Segment Expense | 39,937 | 43,600 | 112,469 | 125,846 |
Segment Pre Tax Earnings (Loss) | 7,911 | 10,032 | 33,231 | 29,045 |
International [Member] | ' | ' | ' | ' |
Information by business segment | ' | ' | ' | ' |
Net earned premium | 100,849 | 105,831 | 311,261 | 302,303 |
Other revenue | 888 | 631 | 2,790 | 2,766 |
Total revenue | 101,737 | 106,462 | 314,051 | 305,069 |
Loss and LAE | 99,221 | 46,924 | 204,137 | 126,547 |
Other expense | 42,613 | 39,253 | 114,534 | 108,018 |
Segment Expense | 141,834 | 86,177 | 318,671 | 234,565 |
Segment Pre Tax Earnings (Loss) | -40,097 | 20,285 | -4,620 | 70,504 |
Investing [Member] | ' | ' | ' | ' |
Information by business segment | ' | ' | ' | ' |
Net earned premium | 0 | 0 | 0 | 0 |
Other revenue | 72,130 | 57,183 | 196,756 | 174,133 |
Total revenue | 72,130 | 57,183 | 196,756 | 174,133 |
Loss and LAE | 0 | 0 | 0 | 0 |
Other expense | 0 | 0 | 0 | 0 |
Segment Expense | 0 | 0 | 0 | 0 |
Segment Pre Tax Earnings (Loss) | 72,130 | 57,183 | 196,756 | 174,133 |
Corporate & Other [Member] | ' | ' | ' | ' |
Information by business segment | ' | ' | ' | ' |
Net earned premium | 1,206 | 10,092 | 10,972 | 31,463 |
Other revenue | 231 | -77 | 253 | 116 |
Total revenue | 1,437 | 10,015 | 11,225 | 31,579 |
Loss and LAE | 810 | 11,613 | 9,433 | 28,852 |
Other expense | 30,229 | 31,888 | 67,688 | 75,303 |
Segment Expense | 31,039 | 43,501 | 77,121 | 104,155 |
Segment Pre Tax Earnings (Loss) | ($29,602) | ($33,486) | ($65,896) | ($72,576) |
Segments_Textuals
Segments (Textuals) (USD $) | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' |
Net Favorable Loss Development In US Property And Casualty Segment | ($40.80) | ($40.80) |
International Segment Reserve Increase For Surety Bonds | $70.30 | $70.30 |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies [Abstract] | ' |
Commitments and Contingencies | ' |
(14) Commitments and Contingencies | |
Catastrophe Exposure | |
We have exposure to catastrophic losses caused by natural perils (such as hurricanes, earthquakes, floods, tsunamis, hail storms and tornados), as well as from man-made events (such as terrorist attacks). The incidence, timing and severity of catastrophic losses are unpredictable. We assess our exposures in areas most vulnerable to natural catastrophes and apply procedures to ascertain our probable maximum loss from a single event. We maintain reinsurance protection that we believe is sufficient to limit our exposure to a foreseeable event. In the first nine months of 2013, we recognized accident year net catastrophe losses, after reinsurance and reinstatement premium, of $44.5 million, primarily due to European floods, German hail storms and various small catastrophes. We recognized $20.3 million in the first nine months of 2012, primarily due to United States spring storms and various small catastrophes. | |
Litigation | |
We are a party to lawsuits, arbitrations and other proceedings that arise in the normal course of our business. Many of such lawsuits, arbitrations and other proceedings involve claims under policies that we underwrite as an insurer or reinsurer, the liabilities for which, we believe, have been adequately included in our loss reserves. Also, from time to time, we are a party to lawsuits, arbitrations and other proceedings that relate to disputes with third parties, or that involve alleged errors and omissions on the part of our subsidiaries. We have provided accruals for these items to the extent we deem the losses probable and reasonably estimable. Although the ultimate outcome of these matters cannot be determined at this time, based on present information, the availability of insurance coverage and advice received from our outside legal counsel, we believe the resolution of any such matters will not, individually or in the aggregate, have a material adverse effect on our consolidated financial position, results of operations or cash flows. | |
Indemnifications | |
In conjunction with the sales of business assets and subsidiaries, we have provided indemnifications to the buyers. Certain indemnifications cover typical representations and warranties related to our responsibilities to perform under the sales contracts. Under other indemnifications, we agree to reimburse the purchasers for taxes or ERISA-related amounts, if any, assessed after the sale date but related to pre-sale activities. We cannot quantify the maximum potential exposure covered by all of our indemnifications because the indemnifications cover a variety of matters, operations and scenarios. Certain of these indemnifications have no time limit. For those with a time limit, the longest such indemnification expires in 2025. We accrue a loss when a valid claim is made by a purchaser and we believe we have potential exposure. We currently have claims under one indemnification that covers development on losses that were incurred prior to our sale of a subsidiary. At September 30, 2013, we have an accrued liability of $7.6 million to cover our obligations or anticipated payments under these indemnifications. | |
Commitments_and_Contingencies_
Commitments and Contingencies (Details Textuals) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Commitments And Contingencies Line Items [Abstract] | ' | ' |
Liability related to indemnifications | $7.60 | ' |
Pretax cat loss after reinsurance | $44.50 | $20.30 |
Longest Indemnification Expiration Date | '2025 | ' |
Supplemental_Information
Supplemental Information | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Supplemental Information [Abstract] | ' | |||||||||||
Supplemental Information | ' | |||||||||||
(15) Supplemental Information | ||||||||||||
Supplemental cash flow information was as follows: | ||||||||||||
Nine months ended September 30, | Three months ended September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Income taxes paid | $ | 126,295 | $ | 83,979 | $ | 26,354 | $ | 44,531 | ||||
Interest paid | 14,808 | 13,321 | 1,486 | 1,321 | ||||||||
Proceeds from sales of available for sale fixed maturity securities | 337,895 | 293,969 | 166,094 | 75,397 | ||||||||
Proceeds from sales of equity securities | 95,989 | 7,145 | 51,681 | 5,406 | ||||||||
Dividends declared but not paid at end of period | 22,540 | 16,728 | ||||||||||
Purchases of common stock not paid at end of period | 0 | 6,400 |
Supplemental_Information_Table
Supplemental Information (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Supplemental Information [Abstract] | ' | |||||||||||
Supplemental Information | ' | |||||||||||
Nine months ended September 30, | Three months ended September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Income taxes paid | $ | 126,295 | $ | 83,979 | $ | 26,354 | $ | 44,531 | ||||
Interest paid | 14,808 | 13,321 | 1,486 | 1,321 | ||||||||
Proceeds from sales of available for sale fixed maturity securities | 337,895 | 293,969 | 166,094 | 75,397 | ||||||||
Proceeds from sales of equity securities | 95,989 | 7,145 | 51,681 | 5,406 | ||||||||
Dividends declared but not paid at end of period | 22,540 | 16,728 | ||||||||||
Purchases of common stock not paid at end of period | 0 | 6,400 |
Supplemental_Information_Detai
Supplemental Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Supplemental Information | ' | ' | ' | ' |
Income taxes paid | $26,354 | $44,531 | $126,295 | $83,979 |
Interest paid | 1,486 | 1,321 | 14,808 | 13,321 |
Dividends declared but not paid at year end | 22,540 | 16,728 | 22,540 | 16,728 |
Purchases of common stock not paid at end of period | 0 | 6,400 | 0 | 6,400 |
Proceeds from sales of available for sale fixed maturity securities | 166,094 | 75,397 | 337,895 | 293,969 |
Proceeds from sales of equity securities | $51,681 | $5,406 | $95,989 | $7,145 |