Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Apr. 30, 2015 |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | HCC INSURANCE HOLDINGS INC/DE/ | |
Entity Central Index Key | 888919 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | -19 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 95.7 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Investments | ||
Fixed maturity securities - available for sale, at fair value (amortized cost: 2015 - $6,192,036 and 2014 - $6,352,737) | $6,452,444 | $6,610,368 |
Equity securities - available for sale, at fair value (cost: 2015 - $325,435 and 2014 - $291,070) | 334,763 | 296,352 |
Short-term investments, at cost (approximates fair value) | 325,154 | 258,186 |
Total investments | 7,112,361 | 7,164,906 |
Cash | 93,464 | 102,093 |
Restricted cash and securities | 122,526 | 119,010 |
Premium, claims and other receivables | 727,615 | 553,027 |
Reinsurance recoverables | 1,176,141 | 1,168,900 |
Ceded unearned premium | 332,646 | 316,715 |
Ceded life and annuity benefits | 48,590 | 48,499 |
Deferred policy acquisition costs | 236,661 | 220,321 |
Goodwill | 949,351 | 905,636 |
Other assets | 226,942 | 115,239 |
Total assets | 11,026,297 | 10,714,346 |
LIABILITIES | ||
Loss and loss adjustment expense payable | 3,693,165 | 3,728,085 |
Life and annuity policy benefits | 48,590 | 48,499 |
Reinsurance, premium and claims payable | 434,198 | 301,476 |
Unearned premium | 1,305,327 | 1,198,930 |
Deferred ceding commissions | 101,169 | 94,202 |
Notes payable | 889,290 | 824,251 |
Accounts payable and accrued liabilities | 621,131 | 615,552 |
Total liabilities | 7,092,870 | 6,810,995 |
SHAREHOLDERS' EQUITY | ||
Common stock, $1.00 par value; 250,000 shares authorized (shares issued: 2015 - 126,794 and 2014 - 126,472; outstanding: 2015 - 95,868 and 2014 - 96,521) | 126,794 | 126,472 |
Additional paid-in capital | 1,115,796 | 1,113,551 |
Retained earnings | 3,526,071 | 3,441,424 |
Accumulated other comprehensive income | 172,262 | 175,014 |
Treasury stock, at cost (shares: 2015 - 30,926 and 2014 - 29,951) | -1,007,496 | -953,110 |
Total shareholders' equity | 3,933,427 | 3,903,351 |
Total liabilities and shareholders' equity | $11,026,297 | $10,714,346 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Per Share data, unless otherwise specified | ||
Investments | ||
Fixed maturity securities, available for sale, amortized cost | $6,192,036 | $6,352,737 |
Equity securities, available for sale, cost | $325,435 | $291,070 |
SHAREHOLDERS' EQUITY | ||
Common stock, par value | $1 | $1 |
Common stock, shares authorized | 250,000 | 250,000 |
Common stock, shares issued | 126,794 | 126,472 |
Common stock, shares outstanding | 95,868 | 96,521 |
Treasury stock | 30,926 | 29,951 |
Consolidated_Statement_of_Earn
Consolidated Statement of Earnings (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
REVENUE | ||
Net earned premium | $600,563 | $562,612 |
Net investment income | 53,482 | 56,806 |
Other operating income | 9,219 | 9,266 |
Net realized investment gain | 13,186 | 20,246 |
Total revenue | 676,450 | 648,930 |
EXPENSE | ||
Loss and loss adjustment expense, net | 365,162 | 330,746 |
Policy acquisition costs, net | 75,211 | 69,041 |
Other operating expense | 77,483 | 87,052 |
Interest expense | 7,766 | 7,119 |
Total expense | 525,622 | 493,958 |
Earnings before income taxes | 150,828 | 154,972 |
Income tax expense | 37,911 | 47,061 |
Net earnings | $112,917 | $107,911 |
Earnings per common share | ||
Basic | $1.17 | $1.08 |
Diluted | $1.17 | $1.07 |
Consolidated_Statement_of_Comp
Consolidated Statement of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Income and Comprehensive Income [Abstract] | ||
Net earnings | $112,917 | $107,911 |
Investment gains: | ||
Investment gains during the period | 20,009 | 86,080 |
Income tax charge | 7,205 | 30,570 |
Investments gains, net of tax | 12,804 | 55,510 |
Less reclassification adjustments to: | ||
Net realized investment gain | 13,186 | 20,246 |
Income tax expense | 4,615 | 7,086 |
Total reclassifications included in net earnings, net of tax | 8,571 | 13,160 |
Net unrealized investment gains | 4,233 | 42,350 |
Foreign currency translation adjustment | -7,052 | 788 |
Income tax benefit | -67 | -432 |
Foreign currency translation adjustment, net of tax | -6,985 | 1,220 |
Other comprehensive income (loss) | -2,752 | 43,570 |
Comprehensive income | $110,165 | $151,481 |
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, 2014 | $3,903,351 | $126,472 | $1,113,551 | $3,441,424 | $175,014 | ($953,110) |
Net earnings | 112,917 | 112,917 | ||||
Other comprehensive income | -2,752 | -2,752 | ||||
Stock-based compensation | 4,631 | 371 | 4,260 | |||
Issuance of 39 shares for exercise of options, including tax effect | 3,609 | 39 | 3,570 | |||
Issuance of 49 shares for employee stock purchase plan | 2,024 | 49 | 1,975 | |||
Surrender of 137 shares of restricted stock for employee's tax liability | -7,697 | -137 | -7,560 | |||
Purchase of 975 common shares | -54,386 | -54,386 | ||||
Cash dividends declared, $0.295 per share | -28,270 | -28,270 | ||||
Balance at Mar. 31, 2015 | $3,933,427 | $126,794 | $1,115,796 | $3,526,071 | $172,262 | ($1,007,496) |
Consolidated_Statement_of_Chan1
Consolidated Statement of Changes in Shareholders' Equity (Parenthetical) (USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 |
Issuance of shares for exercise of options | 39 |
Issuance of shares for employee stock purchase plan | 49 |
Surrender of shares of restricted stock for employee's tax liability | -137 |
Purchase of common shares | 975 |
Cash dividends declared | $0.30 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating activities | ||
Net earnings | $112,917 | $107,911 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Change in premium, claims and other receivables | 11,039 | -44,966 |
Change in reinsurance recoverables | 169,610 | 55,197 |
Change in ceded unearned premium | 16,972 | -5,939 |
Change in loss and loss adjustment expense payable | -209,125 | -53,892 |
Change in unearned premium | 50,280 | 32,475 |
Change in reinsurance, premium and claims payable | -893 | 71,873 |
Change in accounts payable and accrued liabilities | -70,757 | -51,885 |
Stock-based compensation expense | 4,631 | 4,214 |
Depreciation and amortization expense | 5,517 | 4,169 |
Gain on investments | -13,186 | -20,246 |
Other, net | -45,859 | -3,447 |
Cash provided by operating activities | 31,146 | 95,464 |
Investing activities | ||
Sales of available for sale fixed maturity securities | 167,206 | 119,011 |
Sales of equity securities | 66,412 | 144,075 |
Maturity or call of available for sale fixed maturity securities | 159,814 | 131,204 |
Cost of available for sale fixed maturity securities acquired | -128,692 | -179,789 |
Cost of equity securities acquired | -100,594 | -70,841 |
Change in short-term investments | -73,033 | -248,749 |
Payments for purchase of businesses, net of cash received | -100,398 | -2,579 |
Other, net | -1,328 | -2,224 |
Cash used by investing activities | -10,613 | -109,892 |
Financing activities | ||
Advances on line of credit | 150,000 | 100,000 |
Payments on line of credit | -100,004 | -30,000 |
Sale of common stock | 5,633 | 8,428 |
Purchase of common stock | -44,546 | -30,774 |
Dividends paid | -28,451 | -22,575 |
Other, net | -11,794 | 3,572 |
Cash provided (used) by financing activities | -29,162 | 28,651 |
Net increase (decrease) in cash | -8,629 | 14,223 |
Cash at beginning of year | 102,093 | 58,301 |
Cash at end of period | $93,464 | $72,524 |
General_Information
General Information | 3 Months Ended |
Mar. 31, 2015 | |
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, agriculture, 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 consumers. 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 include the results of operations and cash flows of Producers Ag Insurance Group, Inc. (ProAg) from January 1, 2015, the effective acquisition date (see Note 2, “Acquisition”). | |
The consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2014. The consolidated balance sheet at December 31, 2014 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. | |
In conjunction with the acquisition of ProAg in the first quarter of 2015, HCC’s executive management changed the structure under which it manages and evaluates the results of our numerous product lines. See Note 3, “Segments” for discussion of our new reporting structure. | |
New Accounting and Reporting Policies | |
The following policies changed in the first quarter of 2015. | |
Agriculture | |
The majority of premium written in our new agriculture business relates to multi-peril crop insurance (MPCI), written through the federal crop insurance program administered by the U.S. Department of Agriculture’s Risk Management Agency and the Federal Crop Insurance Corporation (FCIC). We record written premium for our agriculture business as we process acreage reports received from the policyholders. Written premium is earned ratably over the period of risk commencing on the final planting date set by the FCIC, which approximates the start of planting season, and ending on the estimated crop harvest date. | |
We have a net receivable (payable) due from (to) the FCIC for settlement of MPCI reinsurance. If a net receivable, it is reflected in our consolidated balance sheet with premium, claims and other receivables. If a net payable, it is reflected in our consolidated balance sheet with reinsurance, premium and claims payable. | |
Income Taxes | |
Effective in 2015, for certain foreign subsidiaries, we do not provide deferred tax liabilities on undistributed earnings that are essentially permanent in duration. For other foreign subsidiaries, we provide U.S. taxes on undistributed earnings at the U.S. statutory rate of 35%, offset by an adjustment for foreign tax credits, when required. In prior years, we provided U.S. taxes on all undistributed earnings of our foreign subsidiaries at the U.S. statutory rate of 35%, offset by an adjustment for foreign tax credits, when required. | |
Recent Accounting Guidance | |
An accounting standard issued in 2014 will change the manner in which most companies recognize revenue. The standard requires that revenue reflect the transfer of goods or services to customers based on the consideration/payment the company expects to be entitled to in exchange for those goods or services; however, the standard does not change the accounting for insurance contracts or investment income. The new standard also requires enhanced disclosures about revenue. This accounting guidance is currently expected to be effective in the first quarter of 2018. The standard may be applied on a full retrospective or modified retrospective approach. We are currently assessing the impact the implementation of this standard will have on our consolidated financial statements. | |
An accounting standard issued in 2015 changes the presentation of debt issuance costs related to a recognized debt liability. The standard requires debt issuance costs be presented as a reduction of the debt liability, rather than as a deferred charge asset. This accounting guidance is effective at March 31, 2016 and must be applied retrospectively. We had debt issuance costs of $4.0 million at March 31, 2015 and $4.2 million at December 31, 2014 that were included in other assets in our consolidated balance sheets. Under this guidance, these debt issuance costs would be reclassified as a reduction to notes payable in our consolidated balance sheets. Application of this guidance will have no impact on our consolidated financial position, results of operations or cash flows. |
Acquisition
Acquisition | 3 Months Ended |
Mar. 31, 2015 | |
Business Combinations [Abstract] | |
Acquisition | (2) Acquisition |
Effective January 1, 2015, we completed the acquisition of all of the capital stock of ProAg from CUNA Mutual Group for $104.5 million cash, subject to a net worth adjustment. ProAg writes multi-peril crop, crop hail and other named peril insurance. Crop insurance is a non-correlated line of business we strategically targeted to add to our diversified portfolio of specialty insurance businesses. On April 28, 2015, the parties agreed to reduce the purchase price by $2.1 million in finalization of the net worth adjustment. Our initial accounting of this business acquisition, recorded as of March 31, 2015, will change by an immaterial amount based on the settlement of the final purchase price. We expect to complete this accounting in the second quarter of 2015. | |
As of March 31, 2015, we allocated the provisional purchase price to the acquired identifiable assets and liabilities of ProAg based on estimated fair values at the acquisition date. We recorded $458.5 million of tangible assets, primarily receivables and reinsurance recoverables, and $453.0 million of liabilities, primarily reserves and reinsurance payables. The majority of these assets and liabilities related to ProAg’s reinsurance year 2014, which is 100% ceded to the FCIC and third party reinsurers (including CUNA Mutual Group) under existing reinsurance agreements. We expect settlement of reinsurance year 2014 amounts to occur with all parties during the fourth quarter of 2015. | |
We also recognized $54.0 million of intangible assets and $45.0 million of goodwill, neither of which is tax deductible. The goodwill primarily represents the value of ProAg’s assembled workforce and opportunities for future expansion utilizing ProAg’s infrastructure. The intangible assets relate to agent relationships and ProAg’s trade name with fair values of $23.0 million and $8.0 million, respectively, which will be amortized over a useful life of 15 years and 10 years, respectively. Indefinite-lived intangible assets of $23.0 million relate to state and federal insurance licenses, which will be reviewed annually for impairment. Intangible assets are included in other assets in our consolidated balance sheet. |
Segments
Segments | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Segments [Abstract] | ||||||||||||||||||||
Segments | (3) Segments | |||||||||||||||||||
In the first quarter of 2015, following the acquisition of ProAg, HCC’s executive management changed the structure under which it manages and evaluates the results of our numerous product lines. We now report our results in four operating segments, consisting of three insurance underwriting segments: 1) North America Property & Casualty, 2) Accident & Health and 3) International, and the Investing segment. | ||||||||||||||||||||
Each of our three insurance underwriting segments bears risk for insurance coverage written within its portfolio of insurance products. Each segment generates income from premium written by our underwriting agencies, through third party agents and brokers, or on a direct basis. Fee and commission income earned by our agencies from third party insurance companies is included in segment revenue. Each segment incurs insurance losses, acquisition costs, claims management costs and other administrative expenses related to our insurance companies and underwriting agencies. Internal claims department costs are managed and reported as a component of loss and loss adjustment expense. We monitor and assess each segment’s pretax results based on underwriting profit, gross and net written premium, and its combined ratio, consisting of the segment’s net loss ratio and expense ratio. | ||||||||||||||||||||
Included in the portfolio of products for each insurance underwriting segment are the following key products: | ||||||||||||||||||||
• North America Property & Casualty – directors' and officers' liability (D&O), primary and excess casualty, small account errors and omissions liability, employment practices liability, agriculture, aviation, sports and entertainment, public risk, surety, and various smaller products. | ||||||||||||||||||||
• Accident & Health – medical stop-loss, short-term domestic and international medical, and travel. | ||||||||||||||||||||
• International – marine and energy, property treaty, property (direct and facultative), accident and health, D&O, professional indemnity, casualty, surety, and credit. | ||||||||||||||||||||
The North America Property & Casualty segment includes the former U.S. Property & Casualty segment, the U.S. portion of the former Professional Liability segment, the Surety portion of the former U.S. Surety & Credit segment and ProAg’s agriculture business. The International segment includes the former International segment, the International portion of the former Professional Liability segment, and the Credit portion of the former U.S. Surety & Credit segment. The Accident & Health and Investing segments are unchanged from the prior presentation. All prior period information has been recast to present our segment disclosures and information on a comparable basis with our new segment reporting structure. | ||||||||||||||||||||
The Investing segment includes our consolidated investment portfolio, as well as all investment income, investment related expenses, realized investment gains and losses, and other-than-temporary impairment credit losses on investments. All investment activity is reported as revenue, consistent with our consolidated presentation. | ||||||||||||||||||||
In addition to our segments, we include a Corporate & Other category to reconcile segment results to consolidated totals. The Corporate & Other category includes: 1) corporate operating expenses not allocated to the segments, 2) interest expense on notes payable, 3) foreign currency expense (benefit) and 4) 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. | ||||||||||||||||||||
North America Property | Accident | Corporate | ||||||||||||||||||
& Casualty | & Health | International | Investing | & Other | Consolidated | |||||||||||||||
Three months ended March 31, 2015 | ||||||||||||||||||||
Net earned premium | $ | 209,239 | $ | 254,950 | $ | 136,377 | $ | - | $ | -3 | $ | 600,563 | ||||||||
Other revenue | 6,102 | 2,013 | 1,008 | 66,668 | 96 | 75,887 | ||||||||||||||
Segment revenue | 215,341 | 256,963 | 137,385 | 66,668 | 93 | 676,450 | ||||||||||||||
Loss and LAE | 116,436 | 187,011 | 61,443 | - | 272 | 365,162 | ||||||||||||||
Other expense | 68,348 | 38,665 | 47,311 | - | 6,136 | 160,460 | ||||||||||||||
Segment expense | 184,784 | 225,676 | 108,754 | - | 6,408 | 525,622 | ||||||||||||||
Segment pretax earnings (loss) | $ | 30,557 | $ | 31,287 | $ | 28,631 | $ | 66,668 | $ | -6,315 | $ | 150,828 | ||||||||
Three months ended March 31, 2014 | ||||||||||||||||||||
Net earned premium | $ | 201,334 | $ | 232,143 | $ | 128,844 | $ | - | $ | 291 | $ | 562,612 | ||||||||
Other revenue | 5,431 | 1,640 | 976 | 77,052 | 1,219 | 86,318 | ||||||||||||||
Segment revenue | 206,765 | 233,783 | 129,820 | 77,052 | 1,510 | 648,930 | ||||||||||||||
Loss and LAE | 103,553 | 170,805 | 56,314 | - | 74 | 330,746 | ||||||||||||||
Other expense | 57,538 | 34,573 | 46,475 | - | 24,626 | 163,212 | ||||||||||||||
Segment expense | 161,091 | 205,378 | 102,789 | - | 24,700 | 493,958 | ||||||||||||||
Segment pretax earnings (loss) | $ | 45,674 | $ | 28,405 | $ | 27,031 | $ | 77,052 | $ | -23,190 | $ | 154,972 | ||||||||
In conjunction with the resegmentation, we reassigned the goodwill associated with the lines of business in our former Professional Liability and U.S. Surety & Credit reporting units at December 31, 2014 to the applicable North America Property & Casualty and International reporting units. We allocated goodwill to the lines of business within the former reporting units based on the relative fair value of each line of business to the sum of the former reporting unit’s total fair value at December 31, 2014. We noted no indicators of impairment as of December 31, 2014, after allocation of goodwill. | ||||||||||||||||||||
The goodwill balances by reportable segment, after allocation of the goodwill in our former reporting units, are presented below. We noted no indicators of impairment in our goodwill as of March 31, 2015. | ||||||||||||||||||||
North America Property | Accident | |||||||||||||||||||
& Casualty | & Health | International | Total | |||||||||||||||||
Balance at beginning of year | $ | 552,006 | $ | 144,113 | $ | 209,517 | $ | 905,636 | ||||||||||||
Acquisition of ProAg | 45,000 | - | - | 45,000 | ||||||||||||||||
Other, principally foreign exchange | 100 | - | -1,385 | -1,285 | ||||||||||||||||
Balance at March 31, 2015 | $ | 597,106 | $ | 144,113 | $ | 208,132 | $ | 949,351 | ||||||||||||
The table below presents total assets by segment following our resegmentation. | ||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
North America Property & Casualty | $ | 2,232,696 | $ | 1,894,756 | ||||||||||||||||
Accident & Health | 244,394 | 242,278 | ||||||||||||||||||
International | 1,092,640 | 1,073,889 | ||||||||||||||||||
Investing | 7,178,088 | 7,228,608 | ||||||||||||||||||
Corporate & Other | 278,479 | 274,815 | ||||||||||||||||||
Total | $ | 11,026,297 | $ | 10,714,346 |
Investments
Investments | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||
Investment [Abstract] | ||||||||||||||||||||||
Investments | (4) Investments | |||||||||||||||||||||
The cost or amortized cost, gross unrealized gain or loss, and fair value of our fixed maturity and equity securities, all of which are classified as available for sale, were as follows: | ||||||||||||||||||||||
Cost or | Gross | Gross | ||||||||||||||||||||
amortized | unrealized | unrealized | ||||||||||||||||||||
cost | gain | loss | Fair value | |||||||||||||||||||
31-Mar-15 | ||||||||||||||||||||||
U.S. government and government agency securities | $ | 73,540 | $ | 983 | $ | -7 | $ | 74,516 | ||||||||||||||
Fixed maturity securities of states, municipalities | ||||||||||||||||||||||
and political subdivisions | 877,954 | 56,164 | -55 | 934,063 | ||||||||||||||||||
Special purpose revenue bonds of states, municipalities | ||||||||||||||||||||||
and political subdivisions | 2,253,237 | 143,514 | -1,065 | 2,395,686 | ||||||||||||||||||
Corporate securities | 726,320 | 28,287 | -2,584 | 752,023 | ||||||||||||||||||
Residential mortgage-backed securities | 770,957 | 22,259 | -1,806 | 791,410 | ||||||||||||||||||
Commercial mortgage-backed securities | 567,340 | 26,032 | -592 | 592,780 | ||||||||||||||||||
Asset-backed securities | 369,289 | 1,051 | -1,038 | 369,302 | ||||||||||||||||||
Foreign government securities | 124,957 | 471 | -3,396 | 122,032 | ||||||||||||||||||
Foreign corporate securities | 428,442 | 7,830 | -15,640 | 420,632 | ||||||||||||||||||
Total fixed maturity securities | $ | 6,192,036 | $ | 286,591 | $ | -26,183 | $ | 6,452,444 | ||||||||||||||
Equity securities | $ | 325,435 | $ | 25,464 | $ | -16,136 | $ | 334,763 | ||||||||||||||
31-Dec-14 | ||||||||||||||||||||||
U.S. government and government agency securities | $ | 70,279 | $ | 827 | $ | -137 | $ | 70,969 | ||||||||||||||
Fixed maturity securities of states, municipalities | ||||||||||||||||||||||
and political subdivisions | 896,130 | 58,738 | -160 | 954,708 | ||||||||||||||||||
Special purpose revenue bonds of states, municipalities | ||||||||||||||||||||||
and political subdivisions | 2,246,707 | 143,291 | -986 | 2,389,012 | ||||||||||||||||||
Corporate securities | 777,242 | 25,983 | -4,656 | 798,569 | ||||||||||||||||||
Residential mortgage-backed securities | 805,458 | 20,215 | -3,979 | 821,694 | ||||||||||||||||||
Commercial mortgage-backed securities | 593,956 | 19,707 | -2,032 | 611,631 | ||||||||||||||||||
Asset-backed securities | 369,103 | 316 | -2,592 | 366,827 | ||||||||||||||||||
Foreign government securities | 119,479 | 767 | -1,554 | 118,692 | ||||||||||||||||||
Foreign corporate securities | 474,383 | 10,776 | -6,893 | 478,266 | ||||||||||||||||||
Total fixed maturity securities | $ | 6,352,737 | $ | 280,620 | $ | -22,989 | $ | 6,610,368 | ||||||||||||||
Equity securities | $ | 291,070 | $ | 24,069 | $ | -18,787 | $ | 296,352 | ||||||||||||||
Substantially all of our fixed maturity securities are investment grade. The following tables display 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 | |||||||||||||||||
31-Mar-15 | ||||||||||||||||||||||
Fixed maturity securities | ||||||||||||||||||||||
U.S. government and government agency | ||||||||||||||||||||||
securities | $ | 421 | $ | - | $ | 3,985 | $ | -7 | $ | 4,406 | $ | -7 | ||||||||||
Fixed maturity securities of states, | ||||||||||||||||||||||
municipalities and political subdivisions | 16,379 | -55 | - | - | 16,379 | -55 | ||||||||||||||||
Special purpose revenue bonds of states, | ||||||||||||||||||||||
municipalities and political subdivisions | 84,718 | -587 | 17,341 | -478 | 102,059 | -1,065 | ||||||||||||||||
Corporate securities | 66,827 | -1,578 | 42,230 | -1,006 | 109,057 | -2,584 | ||||||||||||||||
Residential mortgage-backed securities | 75,826 | -540 | 104,754 | -1,266 | 180,580 | -1,806 | ||||||||||||||||
Commercial mortgage-backed securities | 12,013 | -155 | 25,852 | -437 | 37,865 | -592 | ||||||||||||||||
Asset-backed securities | 73,934 | -119 | 91,570 | -919 | 165,504 | -1,038 | ||||||||||||||||
Foreign government securities | 51,165 | -3,392 | 1,242 | -4 | 52,407 | -3,396 | ||||||||||||||||
Foreign corporate securities | 167,020 | -12,267 | 20,657 | -3,373 | 187,677 | -15,640 | ||||||||||||||||
Equity securities | 139,886 | -12,696 | 11,501 | -3,440 | 151,387 | -16,136 | ||||||||||||||||
Total | $ | 688,189 | $ | -31,389 | $ | 319,132 | $ | -10,930 | $ | 1,007,321 | $ | -42,319 | ||||||||||
December 31, 2014 | ||||||||||||||||||||||
Fixed maturity securities | ||||||||||||||||||||||
U.S. government and government agency | ||||||||||||||||||||||
securities | $ | 14,813 | $ | -8 | $ | 11,236 | $ | -129 | $ | 26,049 | $ | -137 | ||||||||||
Fixed maturity securities of states, | ||||||||||||||||||||||
municipalities and political subdivisions | 3,857 | -21 | 19,337 | -139 | 23,194 | -160 | ||||||||||||||||
Special purpose revenue bonds of states, | ||||||||||||||||||||||
municipalities and political subdivisions | 4,041 | -19 | 100,947 | -967 | 104,988 | -986 | ||||||||||||||||
Corporate securities | 211,111 | -2,498 | 48,091 | -2,158 | 259,202 | -4,656 | ||||||||||||||||
Residential mortgage-backed securities | 37,434 | -100 | 226,256 | -3,879 | 263,690 | -3,979 | ||||||||||||||||
Commercial mortgage-backed securities | 5,228 | -26 | 99,868 | -2,006 | 105,096 | -2,032 | ||||||||||||||||
Asset-backed securities | 181,579 | -1,245 | 78,797 | -1,347 | 260,376 | -2,592 | ||||||||||||||||
Foreign government securities | 55,280 | -1,498 | 7,187 | -56 | 62,467 | -1,554 | ||||||||||||||||
Foreign corporate securities | 182,163 | -4,587 | 21,571 | -2,306 | 203,734 | -6,893 | ||||||||||||||||
Equity securities | 111,251 | -17,839 | 3,934 | -948 | 115,185 | -18,787 | ||||||||||||||||
Total | $ | 806,757 | $ | -27,841 | $ | 617,224 | $ | -13,935 | $ | 1,423,981 | $ | -41,776 | ||||||||||
At March 31, 2015, we held approximately 2,910 fixed maturity and equity securities, of which 20% included at least one lot in an unrealized loss position. 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 $1.0 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 do not consider the $42.3 million of gross unrealized losses in our portfolio at March 31, 2015 to be other-than-temporary impairments as these losses relate to non-credit factors, such as interest rate changes, fluctuations in exchange rates and market conditions. We recognized no other-than-temporary impairment losses in the first quarter of 2015 and 2014. | ||||||||||||||||||||||
The amortized cost and fair value of our fixed maturity securities at March 31, 2015, 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 5.1 years at March 31, 2015. | ||||||||||||||||||||||
Cost or amortized cost | Fair value | |||||||||||||||||||||
Due in 1 year or less | $ | 156,470 | $ | 153,783 | ||||||||||||||||||
Due after 1 year through 5 years | 1,117,553 | 1,138,249 | ||||||||||||||||||||
Due after 5 years through 10 years | 1,322,979 | 1,400,954 | ||||||||||||||||||||
Due after 10 years through 15 years | 884,731 | 945,028 | ||||||||||||||||||||
Due after 15 years | 1,002,717 | 1,060,938 | ||||||||||||||||||||
Securities with contractual maturities | 4,484,450 | 4,698,952 | ||||||||||||||||||||
Mortgage-backed and asset-backed securities | 1,707,586 | 1,753,492 | ||||||||||||||||||||
Total fixed maturity securities | $ | 6,192,036 | $ | 6,452,444 | ||||||||||||||||||
Realized pretax gains (losses) on the sale of investments included the following: | ||||||||||||||||||||||
Three months ended March 31, | ||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Gains | ||||||||||||||||||||||
Fixed maturity securities | $ | 13,876 | $ | 1,132 | ||||||||||||||||||
Equity securities | 10,311 | 24,438 | ||||||||||||||||||||
Total gains | 24,187 | 25,570 | ||||||||||||||||||||
Losses | ||||||||||||||||||||||
Fixed maturity securities | -1,472 | -2,155 | ||||||||||||||||||||
Equity securities | -9,529 | -3,169 | ||||||||||||||||||||
Total losses | -11,001 | -5,324 | ||||||||||||||||||||
Net | ||||||||||||||||||||||
Fixed maturity securities | 12,404 | -1,023 | ||||||||||||||||||||
Equity securities | 782 | 21,269 | ||||||||||||||||||||
Net realized investment gain (loss) | $ | 13,186 | $ | 20,246 |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||
Mar. 31, 2015 | |||||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||||
Fair Value Measurements | (5) 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, foreign government securities, municipal bonds (including those held as restricted securities), corporate debt securities, bank loans, foreign debt securities, 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. We measure fair value for the majority of our Level 2 investments using matrix pricing and observable market data, including benchmark securities or yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, bids, offers, default rates, loss severity and other economic measures. We measure fair value for our structured securities using observable market data in cash flow models. | |||||||||||||||
We are responsible for the prices used in our fair value measurements. We use independent pricing services to assist us in determining fair value of all 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 March 31, 2015 or December 31, 2014. | |||||||||||||||
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 in an inactive market. 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. Our Level 3 category also includes liabilities for future earnout payments due to former owners of businesses we acquired, which are classified within accounts payable and accrued liabilities. We determine fair value of the derivative and the earnout payments 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 sheets. There were no material transfers between Level 1, Level 2 or Level 3 in the first quarter of 2015 and 2014. | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
31-Mar-15 | |||||||||||||||
Fixed maturity securities | |||||||||||||||
U.S. government and government agency securities | $ | 69,238 | $ | 5,278 | $ | - | $ | 74,516 | |||||||
Fixed maturity securities of states, municipalities | |||||||||||||||
and political subdivisions | - | 934,063 | - | 934,063 | |||||||||||
Special purpose revenue bonds of states, municipalities | |||||||||||||||
and political subdivisions | - | 2,395,686 | - | 2,395,686 | |||||||||||
Corporate securities | - | 751,875 | 148 | 752,023 | |||||||||||
Residential mortgage-backed securities | - | 791,410 | - | 791,410 | |||||||||||
Commercial mortgage-backed securities | - | 592,780 | - | 592,780 | |||||||||||
Asset-backed securities | - | 369,302 | - | 369,302 | |||||||||||
Foreign government securities | - | 122,032 | - | 122,032 | |||||||||||
Foreign corporate securities | - | 420,632 | - | 420,632 | |||||||||||
Total fixed maturity securities | 69,238 | 6,383,058 | 148 | 6,452,444 | |||||||||||
Equity securities | 334,763 | - | - | 334,763 | |||||||||||
Short-term investments* | 187,436 | 137,718 | - | 325,154 | |||||||||||
Restricted cash and securities | - | 3,156 | - | 3,156 | |||||||||||
Premium, claims and other receivables | - | 53,212 | - | 53,212 | |||||||||||
Other assets | 17 | - | 1,395 | 1,412 | |||||||||||
Total assets measured at fair value | $ | 591,454 | $ | 6,577,144 | $ | 1,543 | $ | 7,170,141 | |||||||
Notes payable* | $ | - | $ | 936,968 | $ | - | $ | 936,968 | |||||||
Accounts payable and accrued liabilities - earnout liabilities | - | 3,156 | 8,301 | 11,457 | |||||||||||
Total liabilities measured at fair value | $ | - | $ | 940,124 | $ | 8,301 | $ | 948,425 | |||||||
__________ | |||||||||||||||
* Carried at cost or amortized cost on consolidated balance sheet. | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
31-Dec-14 | |||||||||||||||
Fixed maturity securities | |||||||||||||||
U.S. government and government agency securities | $ | 63,663 | $ | 7,306 | $ | - | $ | 70,969 | |||||||
Fixed maturity securities of states, municipalities | |||||||||||||||
and political subdivisions | - | 954,708 | - | 954,708 | |||||||||||
Special purpose revenue bonds of states, municipalities | |||||||||||||||
and political subdivisions | - | 2,389,012 | - | 2,389,012 | |||||||||||
Corporate securities | - | 798,421 | 148 | 798,569 | |||||||||||
Residential mortgage-backed securities | - | 821,694 | - | 821,694 | |||||||||||
Commercial mortgage-backed securities | - | 611,631 | - | 611,631 | |||||||||||
Asset-backed securities | - | 366,827 | - | 366,827 | |||||||||||
Foreign government securities | - | 118,692 | - | 118,692 | |||||||||||
Foreign corporate securities | - | 478,266 | - | 478,266 | |||||||||||
Total fixed maturity securities | 63,663 | 6,546,557 | 148 | 6,610,368 | |||||||||||
Equity securities | 296,352 | - | - | 296,352 | |||||||||||
Short-term investments* | 159,297 | 98,889 | - | 258,186 | |||||||||||
Restricted cash and securities | - | 2,729 | - | 2,729 | |||||||||||
Premium, claims and other receivables | - | 56,493 | - | 56,493 | |||||||||||
Other assets | 18 | - | 1,306 | 1,324 | |||||||||||
Total assets measured at fair value | $ | 519,330 | $ | 6,704,668 | $ | 1,454 | $ | 7,225,452 | |||||||
Notes payable* | $ | - | $ | 875,094 | $ | - | $ | 875,094 | |||||||
Accounts payable and accrued liabilities - earnout liabilities | - | 2,729 | 8,744 | 11,473 | |||||||||||
Total liabilities measured at fair value | $ | - | $ | 877,823 | $ | 8,744 | $ | 886,567 | |||||||
__________ | |||||||||||||||
*Carried at cost or amortized cost on consolidated balance sheet. |
Reinsurance
Reinsurance | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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. | ||||||||
Three months ended March 31, | ||||||||
2015 | 2014 | |||||||
Direct written premium | $ | 717,048 | $ | 620,512 | ||||
Reinsurance assumed | 109,088 | 126,210 | ||||||
Reinsurance ceded | -157,220 | -156,540 | ||||||
Net written premium | $ | 668,916 | $ | 590,182 | ||||
Direct earned premium | $ | 703,584 | $ | 637,313 | ||||
Reinsurance assumed | 71,168 | 76,023 | ||||||
Reinsurance ceded | -174,189 | -150,724 | ||||||
Net earned premium | $ | 600,563 | $ | 562,612 | ||||
Direct loss and loss adjustment expense | $ | 458,726 | $ | 359,629 | ||||
Reinsurance assumed | 27,216 | 41,802 | ||||||
Reinsurance ceded | -120,780 | -70,685 | ||||||
Net loss and loss adjustment expense | $ | 365,162 | $ | 330,746 | ||||
Policy acquisition costs | $ | 115,070 | $ | 104,645 | ||||
Ceding commissions | -39,859 | -35,604 | ||||||
Net policy acquisition costs | $ | 75,211 | $ | 69,041 | ||||
The table below shows the components of our reinsurance recoverables in our consolidated balance sheets. | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Reinsurance recoverable on paid losses | $ | 95,157 | $ | 99,937 | ||||
Reinsurance recoverable on outstanding losses | 448,069 | 443,059 | ||||||
Reinsurance recoverable on incurred but not reported losses | 634,415 | 627,404 | ||||||
Reserve for uncollectible reinsurance | -1,500 | -1,500 | ||||||
Total reinsurance recoverables | $ | 1,176,141 | $ | 1,168,900 | ||||
At each quarter end, we review our financial exposure to the reinsurance market based on our individual reinsurance recoverable balances as of the prior quarter end. We take actions to collect outstanding balances or to mitigate our exposure to possible uncollectible amounts. We had a $1.5 million reserve for potentially uncollectible amounts at March 31, 2015. Reinsurance recoverables related to our settlement of Spanish surety bond claims totaled $86.3 million at March 31, 2015, including $43.4 million on paid losses. Our reinsurers have paid our reinsurance claims in full on a timely basis, with the exception of a small number of reinsurers that are currently in run-off and disputing balances owed us. Recoverables from these run-off reinsurers totaled $41.5 million, including $36.8 million on paid losses, at March 31, 2015 (at quarter-end foreign currency exchange rate). No payments have been received from these reinsurers despite their participation in contracts on essentially the same terms of our other reinsurers. We are vigorously pursuing collection of these recoverables, including through arbitration where necessary, and believe these amounts are fully recoverable. Accordingly, we have not recorded a reserve for uncollectibility related to these amounts. While we believe our current reserve is adequate based on information currently available, market conditions may change or additional information might be obtained that may require us to change the reserve in the future. |
Liability_for_Unpaid_Loss_and_
Liability for Unpaid Loss and Loss Adjustment Expense | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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 liability for loss and loss adjustment expense payable (referred to as reserves). We recognized no prior year loss development in the first quarter of 2015 and 2014. | |||||||||
Three months ended March 31, | |||||||||
2015 | 2014 | ||||||||
Reserves at beginning of period | $ | 3,728,085 | $ | 3,902,132 | |||||
Less reinsurance recoverables on reserves | 1,070,463 | 1,122,731 | |||||||
Net reserves at beginning of period | 2,657,622 | 2,779,401 | |||||||
Net reserve additions from acquired business | 9,386 | - | |||||||
Net loss and loss adjustment expense | 365,162 | 330,746 | |||||||
Net loss and loss adjustment expense payments | -388,538 | -363,858 | |||||||
Foreign currency adjustment | -32,951 | 2,552 | |||||||
Net reserves at end of period | 2,610,681 | 2,748,841 | |||||||
Plus reinsurance recoverables on reserves | 1,082,484 | 1,098,576 | |||||||
Reserves at end of period | $ | 3,693,165 | $ | 3,847,417 |
Notes_Payable
Notes Payable | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Notes Payable [Abstract] | |||||||||
Notes Payable | (8) Notes Payable | ||||||||
Our notes payable consisted of the following: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
6.30% Senior Notes | $ | 299,290 | $ | 299,251 | |||||
$825.0 million Revolving Loan Facility | 590,000 | 525,000 | |||||||
Total notes payable | $ | 889,290 | $ | 824,251 | |||||
There have been no changes to the terms and conditions related to our 6.30% Senior Notes or the $825.0 million Revolving Loan Facility (the 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, 2014. We were in compliance with debt covenants related to our 6.30% Senior Notes and the Facility at March 31, 2015. | |||||||||
The weighted-average interest rate on borrowings under the Facility at March 31, 2015 was 1.4%. The borrowings and letters of credit issued under the Facility reduced our available borrowing capacity on the Facility to $230.1 million at March 31, 2015. |
Income_Taxes
Income Taxes | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Income Taxes [Abstract] | |||||||
Income Taxes [Text Block] | (9) Income Taxes | ||||||
The following table summarizes the differences between our effective tax rate for financial statement purposes and the Federal statutory rate. | |||||||
Three months ended March 31, | |||||||
2015 | 2014 | ||||||
Statutory tax rate | 35 | % | 35 | % | |||
Federal tax at statutory rate | $ | 52,790 | $ | 54,240 | |||
Nontaxable municipal bond interest and dividend received deduction | -9,752 | -8,927 | |||||
State income taxes, net of federal tax benefit | 717 | 834 | |||||
Foreign income taxes | 9,951 | 7,226 | |||||
Foreign tax credit | -9,776 | -7,226 | |||||
Indefinitely reinvested earnings of foreign subsidiaries | -9,134 | - | |||||
Uncertain tax positions (net of federal tax benefit on state | |||||||
positions: $93 in 2015 and $144 in 2014) | 2,234 | 320 | |||||
Other, net | 881 | 594 | |||||
Income tax expense | $ | 37,911 | $ | 47,061 | |||
Effective tax rate | 25.1 | % | 30.4 | % | |||
In the first quarter of 2015, we made an initial assertion that we would indefinitely reinvest the cumulative undistributed earnings of certain foreign subsidiaries primarily organized in the United Kingdom and Spain, which have statutory tax rates of 20.0% and 28.0%, respectively. We made no similar assertion in the first quarter of 2014 or in any periods previously reported. Our 2015 assertion generated a tax benefit of $9.1 million, which included $5.9 million on cumulative undistributed foreign earnings through December 31, 2014 and $3.2 million on undistributed foreign earnings recorded in the first quarter of 2015. Our assertion excluded undistributed foreign earnings that previously have been taxed as deemed dividend inclusions under U.S. tax rules, as well as 2015 earnings for which an assertion cannot be made unless certain U.S. tax regulations are extended for 2015 and future years. At March 31, 2015, our foreign earnings considered to be indefinitely reinvested outside the United States totaled $321.2 million, all of which are subject to U.S. taxes, offset by an adjustment for foreign tax credits, if repatriated. In cases where we could not assert or do not intend to assert indefinite reinvestment of the undistributed earnings of certain foreign subsidiaries, we provided taxes on such undistributed earnings at the U.S. statutory rate of 35.0%, offset by an adjustment for foreign tax credits, where applicable. |
Income_Taxes_Parentheticals
Income Taxes (Parentheticals) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Income Taxes [Abstract] | ||
Federal tax benefit on state positions | $93 | $144 |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
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 | adjustment | income | ||||||||||||
Three months ended March 31, 2015 | ||||||||||||||
Balance at December 31, 2014 | $ | 169,984 | $ | 5,030 | $ | 175,014 | ||||||||
Other comprehensive income (loss) | 4,233 | -6,985 | -2,752 | |||||||||||
Balance at March 31, 2015 | $ | 174,217 | $ | -1,955 | $ | 172,262 |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
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. | ||||||||||
Three months ended March 31, | ||||||||||
2015 | 2014 | |||||||||
Net earnings | $ | 112,917 | $ | 107,911 | ||||||
Less: net earnings attributable to unvested restricted stock | -1,641 | -1,692 | ||||||||
Net earnings available to common stock | $ | 111,276 | $ | 106,219 | ||||||
Weighted-average common shares outstanding | 94,881 | 98,662 | ||||||||
Dilutive effect of outstanding securities (determined using treasury stock method) | 316 | 251 | ||||||||
Weighted-average common shares and potential common shares outstanding | 95,197 | 98,913 | ||||||||
Earnings per common share | ||||||||||
Basic | $ | 1.17 | $ | 1.08 | ||||||
Diluted | $ | 1.17 | $ | 1.07 |
Stock_based_Compensation
Stock based Compensation | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Stock based Compensation [Abstract] | ||||||||||||||
Stock based Compensation | (12) Stock-Based Compensation | |||||||||||||
In 2015, we granted the following shares of restricted stock and restricted stock units. | ||||||||||||||
Weighted-average | ||||||||||||||
Number | grant date | Aggregate | Vesting | |||||||||||
of shares | fair value | fair value | period | |||||||||||
Restricted stock | 299 | $ | 55.81 | $ | 16,692 | 1 - 4 years | ||||||||
Restricted stock units | 4 | 55.78 | 245 | 4 years | ||||||||||
Certain awards of restricted stock and restricted stock units contain a performance condition based on the ultimate results for the applicable underwriting year. The number of such shares that vest could be higher or lower than 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 restricted stock awards or units expected to vest. | ||||||||||||||
Certain of our executive officers were granted performance-based restricted stock in 2015. This restricted stock vests after three years and can vest from 0% to 200% of the initial shares granted. Vesting is based equally on an operating return on equity performance factor and a total shareholder return performance factor. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | (13) Commitments and Contingencies |
Catastrophe and Large Loss Exposure | |
We have exposure to catastrophic and other large losses caused by natural perils (such as hurricanes, tornados, earthquakes, tsunamis, floods, droughts and hail storms), and man-made events (such as terrorist attacks). The incidence, timing and severity of these 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 to reduce our potential losses from a future event. In the first quarter of 2015 and 2014, we recognized accident year net catastrophe losses, after reinsurance and reinstatement premium, of $5.0 million and $4.6 million, respectively, related to 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 and some have no time limit. For those with a time limit, the longest indemnification expires in 2025. We accrue a loss when a valid claim is made by a purchaser and we believe we have potential exposure. |
Supplemental_Information
Supplemental Information | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Supplemental Information [Abstract] | |||||||
Supplemental Information | (14) Supplemental Information | ||||||
Supplemental cash flow information was as follows: | |||||||
Three months ended March 31, | |||||||
2015 | 2014 | ||||||
Income taxes paid (refunded) | $ | 28,926 | $ | -478 | |||
Interest paid | 2,161 | 1,539 | |||||
Dividends declared but not paid at end of period | 28,270 | 22,500 | |||||
Purchases of common stock not paid at end of period | 9,840 | 639 |
General_Information_Policies
General Information (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
General Information [Abstract] | |
Agriculture Premium and Receivables | New Accounting and Reporting Policies |
The following policies changed in the first quarter of 2015. | |
Agriculture | |
The majority of premium written in our new agriculture business relates to multi-peril crop insurance (MPCI), written through the federal crop insurance program administered by the U.S. Department of Agriculture’s Risk Management Agency and the Federal Crop Insurance Corporation (FCIC). We record written premium for our agriculture business as we process acreage reports received from the policyholders. Written premium is earned ratably over the period of risk commencing on the final planting date set by the FCIC, which approximates the start of planting season, and ending on the estimated crop harvest date. | |
We have a net receivable (payable) due from (to) the FCIC for settlement of MPCI reinsurance. If a net receivable, it is reflected in our consolidated balance sheet with premium, claims and other receivables. If a net payable, it is reflected in our consolidated balance sheet with reinsurance, premium and claims payable. | |
Income taxes | Income Taxes |
Effective in 2015, for certain foreign subsidiaries, we do not provide deferred tax liabilities on undistributed earnings that are essentially permanent in duration. For other foreign subsidiaries, we provide U.S. taxes on undistributed earnings at the U.S. statutory rate of 35%, offset by an adjustment for foreign tax credits, when required. In prior years, we provided U.S. taxes on all undistributed earnings of our foreign subsidiaries at the U.S. statutory rate of 35%, offset by an adjustment for foreign tax credits, when required. |
Segments_Tables
Segments (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Segments [Abstract] | ||||||||||||||||||||
Information by business segment | North America Property | Accident | Corporate | |||||||||||||||||
& Casualty | & Health | International | Investing | & Other | Consolidated | |||||||||||||||
Three months ended March 31, 2015 | ||||||||||||||||||||
Net earned premium | $ | 209,239 | $ | 254,950 | $ | 136,377 | $ | - | $ | -3 | $ | 600,563 | ||||||||
Other revenue | 6,102 | 2,013 | 1,008 | 66,668 | 96 | 75,887 | ||||||||||||||
Segment revenue | 215,341 | 256,963 | 137,385 | 66,668 | 93 | 676,450 | ||||||||||||||
Loss and LAE | 116,436 | 187,011 | 61,443 | - | 272 | 365,162 | ||||||||||||||
Other expense | 68,348 | 38,665 | 47,311 | - | 6,136 | 160,460 | ||||||||||||||
Segment expense | 184,784 | 225,676 | 108,754 | - | 6,408 | 525,622 | ||||||||||||||
Segment pretax earnings (loss) | $ | 30,557 | $ | 31,287 | $ | 28,631 | $ | 66,668 | $ | -6,315 | $ | 150,828 | ||||||||
Three months ended March 31, 2014 | ||||||||||||||||||||
Net earned premium | $ | 201,334 | $ | 232,143 | $ | 128,844 | $ | - | $ | 291 | $ | 562,612 | ||||||||
Other revenue | 5,431 | 1,640 | 976 | 77,052 | 1,219 | 86,318 | ||||||||||||||
Segment revenue | 206,765 | 233,783 | 129,820 | 77,052 | 1,510 | 648,930 | ||||||||||||||
Loss and LAE | 103,553 | 170,805 | 56,314 | - | 74 | 330,746 | ||||||||||||||
Other expense | 57,538 | 34,573 | 46,475 | - | 24,626 | 163,212 | ||||||||||||||
Segment expense | 161,091 | 205,378 | 102,789 | - | 24,700 | 493,958 | ||||||||||||||
Segment pretax earnings (loss) | $ | 45,674 | $ | 28,405 | $ | 27,031 | $ | 77,052 | $ | -23,190 | $ | 154,972 | ||||||||
Schedule Of Goodwill [Text Block] | North America Property | Accident | ||||||||||||||||||
& Casualty | & Health | International | Total | |||||||||||||||||
Balance at beginning of year | $ | 552,006 | $ | 144,113 | $ | 209,517 | $ | 905,636 | ||||||||||||
Acquisition of ProAg | 45,000 | - | - | 45,000 | ||||||||||||||||
Other, principally foreign exchange | 100 | - | -1,385 | -1,285 | ||||||||||||||||
Balance at March 31, 2015 | $ | 597,106 | $ | 144,113 | $ | 208,132 | $ | 949,351 | ||||||||||||
Total assets by segment | March 31, | December 31, | ||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
North America Property & Casualty | $ | 2,232,696 | $ | 1,894,756 | ||||||||||||||||
Accident & Health | 244,394 | 242,278 | ||||||||||||||||||
International | 1,092,640 | 1,073,889 | ||||||||||||||||||
Investing | 7,178,088 | 7,228,608 | ||||||||||||||||||
Corporate & Other | 278,479 | 274,815 | ||||||||||||||||||
Total | $ | 11,026,297 | $ | 10,714,346 |
Investments_Tables
Investments (Tables) | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||
Investment [Abstract] | ||||||||||||||||||||||
Fixed Maturity & Equity Securities Available For Sale | Cost or | Gross | Gross | |||||||||||||||||||
amortized | unrealized | unrealized | ||||||||||||||||||||
cost | gain | loss | Fair value | |||||||||||||||||||
31-Mar-15 | ||||||||||||||||||||||
U.S. government and government agency securities | $ | 73,540 | $ | 983 | $ | -7 | $ | 74,516 | ||||||||||||||
Fixed maturity securities of states, municipalities | ||||||||||||||||||||||
and political subdivisions | 877,954 | 56,164 | -55 | 934,063 | ||||||||||||||||||
Special purpose revenue bonds of states, municipalities | ||||||||||||||||||||||
and political subdivisions | 2,253,237 | 143,514 | -1,065 | 2,395,686 | ||||||||||||||||||
Corporate securities | 726,320 | 28,287 | -2,584 | 752,023 | ||||||||||||||||||
Residential mortgage-backed securities | 770,957 | 22,259 | -1,806 | 791,410 | ||||||||||||||||||
Commercial mortgage-backed securities | 567,340 | 26,032 | -592 | 592,780 | ||||||||||||||||||
Asset-backed securities | 369,289 | 1,051 | -1,038 | 369,302 | ||||||||||||||||||
Foreign government securities | 124,957 | 471 | -3,396 | 122,032 | ||||||||||||||||||
Foreign corporate securities | 428,442 | 7,830 | -15,640 | 420,632 | ||||||||||||||||||
Total fixed maturity securities | $ | 6,192,036 | $ | 286,591 | $ | -26,183 | $ | 6,452,444 | ||||||||||||||
Equity securities | $ | 325,435 | $ | 25,464 | $ | -16,136 | $ | 334,763 | ||||||||||||||
31-Dec-14 | ||||||||||||||||||||||
U.S. government and government agency securities | $ | 70,279 | $ | 827 | $ | -137 | $ | 70,969 | ||||||||||||||
Fixed maturity securities of states, municipalities | ||||||||||||||||||||||
and political subdivisions | 896,130 | 58,738 | -160 | 954,708 | ||||||||||||||||||
Special purpose revenue bonds of states, municipalities | ||||||||||||||||||||||
and political subdivisions | 2,246,707 | 143,291 | -986 | 2,389,012 | ||||||||||||||||||
Corporate securities | 777,242 | 25,983 | -4,656 | 798,569 | ||||||||||||||||||
Residential mortgage-backed securities | 805,458 | 20,215 | -3,979 | 821,694 | ||||||||||||||||||
Commercial mortgage-backed securities | 593,956 | 19,707 | -2,032 | 611,631 | ||||||||||||||||||
Asset-backed securities | 369,103 | 316 | -2,592 | 366,827 | ||||||||||||||||||
Foreign government securities | 119,479 | 767 | -1,554 | 118,692 | ||||||||||||||||||
Foreign corporate securities | 474,383 | 10,776 | -6,893 | 478,266 | ||||||||||||||||||
Total fixed maturity securities | $ | 6,352,737 | $ | 280,620 | $ | -22,989 | $ | 6,610,368 | ||||||||||||||
Equity securities | $ | 291,070 | $ | 24,069 | $ | -18,787 | $ | 296,352 | ||||||||||||||
Gross unrealized losses and fair value of all available for sale securities 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 | |||||||||||||||||
31-Mar-15 | ||||||||||||||||||||||
Fixed maturity securities | ||||||||||||||||||||||
U.S. government and government agency | ||||||||||||||||||||||
securities | $ | 421 | $ | - | $ | 3,985 | $ | -7 | $ | 4,406 | $ | -7 | ||||||||||
Fixed maturity securities of states, | ||||||||||||||||||||||
municipalities and political subdivisions | 16,379 | -55 | - | - | 16,379 | -55 | ||||||||||||||||
Special purpose revenue bonds of states, | ||||||||||||||||||||||
municipalities and political subdivisions | 84,718 | -587 | 17,341 | -478 | 102,059 | -1,065 | ||||||||||||||||
Corporate securities | 66,827 | -1,578 | 42,230 | -1,006 | 109,057 | -2,584 | ||||||||||||||||
Residential mortgage-backed securities | 75,826 | -540 | 104,754 | -1,266 | 180,580 | -1,806 | ||||||||||||||||
Commercial mortgage-backed securities | 12,013 | -155 | 25,852 | -437 | 37,865 | -592 | ||||||||||||||||
Asset-backed securities | 73,934 | -119 | 91,570 | -919 | 165,504 | -1,038 | ||||||||||||||||
Foreign government securities | 51,165 | -3,392 | 1,242 | -4 | 52,407 | -3,396 | ||||||||||||||||
Foreign corporate securities | 167,020 | -12,267 | 20,657 | -3,373 | 187,677 | -15,640 | ||||||||||||||||
Equity securities | 139,886 | -12,696 | 11,501 | -3,440 | 151,387 | -16,136 | ||||||||||||||||
Total | $ | 688,189 | $ | -31,389 | $ | 319,132 | $ | -10,930 | $ | 1,007,321 | $ | -42,319 | ||||||||||
December 31, 2014 | ||||||||||||||||||||||
Fixed maturity securities | ||||||||||||||||||||||
U.S. government and government agency | ||||||||||||||||||||||
securities | $ | 14,813 | $ | -8 | $ | 11,236 | $ | -129 | $ | 26,049 | $ | -137 | ||||||||||
Fixed maturity securities of states, | ||||||||||||||||||||||
municipalities and political subdivisions | 3,857 | -21 | 19,337 | -139 | 23,194 | -160 | ||||||||||||||||
Special purpose revenue bonds of states, | ||||||||||||||||||||||
municipalities and political subdivisions | 4,041 | -19 | 100,947 | -967 | 104,988 | -986 | ||||||||||||||||
Corporate securities | 211,111 | -2,498 | 48,091 | -2,158 | 259,202 | -4,656 | ||||||||||||||||
Residential mortgage-backed securities | 37,434 | -100 | 226,256 | -3,879 | 263,690 | -3,979 | ||||||||||||||||
Commercial mortgage-backed securities | 5,228 | -26 | 99,868 | -2,006 | 105,096 | -2,032 | ||||||||||||||||
Asset-backed securities | 181,579 | -1,245 | 78,797 | -1,347 | 260,376 | -2,592 | ||||||||||||||||
Foreign government securities | 55,280 | -1,498 | 7,187 | -56 | 62,467 | -1,554 | ||||||||||||||||
Foreign corporate securities | 182,163 | -4,587 | 21,571 | -2,306 | 203,734 | -6,893 | ||||||||||||||||
Equity securities | 111,251 | -17,839 | 3,934 | -948 | 115,185 | -18,787 | ||||||||||||||||
Total | $ | 806,757 | $ | -27,841 | $ | 617,224 | $ | -13,935 | $ | 1,423,981 | $ | -41,776 | ||||||||||
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 | $ | 156,470 | $ | 153,783 | ||||||||||||||||||
Due after 1 year through 5 years | 1,117,553 | 1,138,249 | ||||||||||||||||||||
Due after 5 years through 10 years | 1,322,979 | 1,400,954 | ||||||||||||||||||||
Due after 10 years through 15 years | 884,731 | 945,028 | ||||||||||||||||||||
Due after 15 years | 1,002,717 | 1,060,938 | ||||||||||||||||||||
Securities with contractual maturities | 4,484,450 | 4,698,952 | ||||||||||||||||||||
Mortgage-backed and asset-backed securities | 1,707,586 | 1,753,492 | ||||||||||||||||||||
Total fixed maturity securities | $ | 6,192,036 | $ | 6,452,444 | ||||||||||||||||||
Realized pretax gains (losses) on the sale of investments | Three months ended March 31, | |||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Gains | ||||||||||||||||||||||
Fixed maturity securities | $ | 13,876 | $ | 1,132 | ||||||||||||||||||
Equity securities | 10,311 | 24,438 | ||||||||||||||||||||
Total gains | 24,187 | 25,570 | ||||||||||||||||||||
Losses | ||||||||||||||||||||||
Fixed maturity securities | -1,472 | -2,155 | ||||||||||||||||||||
Equity securities | -9,529 | -3,169 | ||||||||||||||||||||
Total losses | -11,001 | -5,324 | ||||||||||||||||||||
Net | ||||||||||||||||||||||
Fixed maturity securities | 12,404 | -1,023 | ||||||||||||||||||||
Equity securities | 782 | 21,269 | ||||||||||||||||||||
Net realized investment gain (loss) | $ | 13,186 | $ | 20,246 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||
Mar. 31, 2015 | |||||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||||
Assets and liabilities at fair value | Level 1 | Level 2 | Level 3 | Total | |||||||||||
31-Mar-15 | |||||||||||||||
Fixed maturity securities | |||||||||||||||
U.S. government and government agency securities | $ | 69,238 | $ | 5,278 | $ | - | $ | 74,516 | |||||||
Fixed maturity securities of states, municipalities | |||||||||||||||
and political subdivisions | - | 934,063 | - | 934,063 | |||||||||||
Special purpose revenue bonds of states, municipalities | |||||||||||||||
and political subdivisions | - | 2,395,686 | - | 2,395,686 | |||||||||||
Corporate securities | - | 751,875 | 148 | 752,023 | |||||||||||
Residential mortgage-backed securities | - | 791,410 | - | 791,410 | |||||||||||
Commercial mortgage-backed securities | - | 592,780 | - | 592,780 | |||||||||||
Asset-backed securities | - | 369,302 | - | 369,302 | |||||||||||
Foreign government securities | - | 122,032 | - | 122,032 | |||||||||||
Foreign corporate securities | - | 420,632 | - | 420,632 | |||||||||||
Total fixed maturity securities | 69,238 | 6,383,058 | 148 | 6,452,444 | |||||||||||
Equity securities | 334,763 | - | - | 334,763 | |||||||||||
Short-term investments* | 187,436 | 137,718 | - | 325,154 | |||||||||||
Restricted cash and securities | - | 3,156 | - | 3,156 | |||||||||||
Premium, claims and other receivables | - | 53,212 | - | 53,212 | |||||||||||
Other assets | 17 | - | 1,395 | 1,412 | |||||||||||
Total assets measured at fair value | $ | 591,454 | $ | 6,577,144 | $ | 1,543 | $ | 7,170,141 | |||||||
Notes payable* | $ | - | $ | 936,968 | $ | - | $ | 936,968 | |||||||
Accounts payable and accrued liabilities - earnout liabilities | - | 3,156 | 8,301 | 11,457 | |||||||||||
Total liabilities measured at fair value | $ | - | $ | 940,124 | $ | 8,301 | $ | 948,425 | |||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
31-Dec-14 | |||||||||||||||
Fixed maturity securities | |||||||||||||||
U.S. government and government agency securities | $ | 63,663 | $ | 7,306 | $ | - | $ | 70,969 | |||||||
Fixed maturity securities of states, municipalities | |||||||||||||||
and political subdivisions | - | 954,708 | - | 954,708 | |||||||||||
Special purpose revenue bonds of states, municipalities | |||||||||||||||
and political subdivisions | - | 2,389,012 | - | 2,389,012 | |||||||||||
Corporate securities | - | 798,421 | 148 | 798,569 | |||||||||||
Residential mortgage-backed securities | - | 821,694 | - | 821,694 | |||||||||||
Commercial mortgage-backed securities | - | 611,631 | - | 611,631 | |||||||||||
Asset-backed securities | - | 366,827 | - | 366,827 | |||||||||||
Foreign government securities | - | 118,692 | - | 118,692 | |||||||||||
Foreign corporate securities | - | 478,266 | - | 478,266 | |||||||||||
Total fixed maturity securities | 63,663 | 6,546,557 | 148 | 6,610,368 | |||||||||||
Equity securities | 296,352 | - | - | 296,352 | |||||||||||
Short-term investments* | 159,297 | 98,889 | - | 258,186 | |||||||||||
Restricted cash and securities | - | 2,729 | - | 2,729 | |||||||||||
Premium, claims and other receivables | - | 56,493 | - | 56,493 | |||||||||||
Other assets | 18 | - | 1,306 | 1,324 | |||||||||||
Total assets measured at fair value | $ | 519,330 | $ | 6,704,668 | $ | 1,454 | $ | 7,225,452 | |||||||
Notes payable* | $ | - | $ | 875,094 | $ | - | $ | 875,094 | |||||||
Accounts payable and accrued liabilities - earnout liabilities | - | 2,729 | 8,744 | 11,473 | |||||||||||
Total liabilities measured at fair value | $ | - | $ | 877,823 | $ | 8,744 | $ | 886,567 |
Reinsurance_Tables
Reinsurance (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Reinsurance [Abstract] | ||||||||
Effect of reinsurance transactions on our premium, loss and loss adjustment expense and policy acquisition costs | Three months ended March 31, | |||||||
2015 | 2014 | |||||||
Direct written premium | $ | 717,048 | $ | 620,512 | ||||
Reinsurance assumed | 109,088 | 126,210 | ||||||
Reinsurance ceded | -157,220 | -156,540 | ||||||
Net written premium | $ | 668,916 | $ | 590,182 | ||||
Direct earned premium | $ | 703,584 | $ | 637,313 | ||||
Reinsurance assumed | 71,168 | 76,023 | ||||||
Reinsurance ceded | -174,189 | -150,724 | ||||||
Net earned premium | $ | 600,563 | $ | 562,612 | ||||
Direct loss and loss adjustment expense | $ | 458,726 | $ | 359,629 | ||||
Reinsurance assumed | 27,216 | 41,802 | ||||||
Reinsurance ceded | -120,780 | -70,685 | ||||||
Net loss and loss adjustment expense | $ | 365,162 | $ | 330,746 | ||||
Policy acquisition costs | $ | 115,070 | $ | 104,645 | ||||
Ceding commissions | -39,859 | -35,604 | ||||||
Net policy acquisition costs | $ | 75,211 | $ | 69,041 | ||||
Components of our reinsurance recoverables | March 31, | December 31, | ||||||
2015 | 2014 | |||||||
Reinsurance recoverable on paid losses | $ | 95,157 | $ | 99,937 | ||||
Reinsurance recoverable on outstanding losses | 448,069 | 443,059 | ||||||
Reinsurance recoverable on incurred but not reported losses | 634,415 | 627,404 | ||||||
Reserve for uncollectible reinsurance | -1,500 | -1,500 | ||||||
Total reinsurance recoverables | $ | 1,176,141 | $ | 1,168,900 |
Liability_for_Unpaid_Loss_and_1
Liability for Unpaid Loss and Loss Adjustment Expense (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Liability for Unpaid Loss and Loss Adjustment Expense | |||||||||
Rollforward of Liability for Unpaid Loss and Loss Adjustment Expense | Three months ended March 31, | ||||||||
2015 | 2014 | ||||||||
Reserves at beginning of period | $ | 3,728,085 | $ | 3,902,132 | |||||
Less reinsurance recoverables on reserves | 1,070,463 | 1,122,731 | |||||||
Net reserves at beginning of period | 2,657,622 | 2,779,401 | |||||||
Net reserve additions from acquired business | 9,386 | - | |||||||
Net loss and loss adjustment expense | 365,162 | 330,746 | |||||||
Net loss and loss adjustment expense payments | -388,538 | -363,858 | |||||||
Foreign currency adjustment | -32,951 | 2,552 | |||||||
Net reserves at end of period | 2,610,681 | 2,748,841 | |||||||
Plus reinsurance recoverables on reserves | 1,082,484 | 1,098,576 | |||||||
Reserves at end of period | $ | 3,693,165 | $ | 3,847,417 |
Notes_Payable_Tables
Notes Payable (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Notes Payable [Abstract] | |||||||||
Notes Payable | March 31, | December 31, | |||||||
2015 | 2014 | ||||||||
6.30% Senior Notes | $ | 299,290 | $ | 299,251 | |||||
$825.0 million Revolving Loan Facility | 590,000 | 525,000 | |||||||
Total notes payable | $ | 889,290 | $ | 824,251 |
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Income Taxes [Abstract] | |||||||
Differences between our effective tax rate for financial statement purposes and the Federal Statutory rate | Three months ended March 31, | ||||||
2015 | 2014 | ||||||
Statutory tax rate | 35 | % | 35 | % | |||
Federal tax at statutory rate | $ | 52,790 | $ | 54,240 | |||
Nontaxable municipal bond interest and dividend received deduction | -9,752 | -8,927 | |||||
State income taxes, net of federal tax benefit | 717 | 834 | |||||
Foreign income taxes | 9,951 | 7,226 | |||||
Foreign tax credit | -9,776 | -7,226 | |||||
Indefinitely reinvested earnings of foreign subsidiaries | -9,134 | - | |||||
Uncertain tax positions (net of federal tax benefit on state | |||||||
positions: $93 in 2015 and $144 in 2014) | 2,234 | 320 | |||||
Other, net | 881 | 594 | |||||
Income tax expense | $ | 37,911 | $ | 47,061 | |||
Effective tax rate | 25.1 | % | 30.4 | % |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Accumulated Other Comprehensive Income [Abstract] | ||||||||||||||
Schedule of Accumulated Other Comprehensive Income [Table Text Block] | Foreign | Accumulated | ||||||||||||
Net unrealized | currency | other | ||||||||||||
investment | translation | comprehensive | ||||||||||||
gains | adjustment | income | ||||||||||||
Three months ended March 31, 2015 | ||||||||||||||
Balance at December 31, 2014 | $ | 169,984 | $ | 5,030 | $ | 175,014 | ||||||||
Other comprehensive income (loss) | 4,233 | -6,985 | -2,752 | |||||||||||
Balance at March 31, 2015 | $ | 174,217 | $ | -1,955 | $ | 172,262 |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Earnings Per Share [Abstract] | ||||||||||
Earnings per share | Three months ended March 31, | |||||||||
2015 | 2014 | |||||||||
Net earnings | $ | 112,917 | $ | 107,911 | ||||||
Less: net earnings attributable to unvested restricted stock | -1,641 | -1,692 | ||||||||
Net earnings available to common stock | $ | 111,276 | $ | 106,219 | ||||||
Weighted-average common shares outstanding | 94,881 | 98,662 | ||||||||
Dilutive effect of outstanding securities (determined using treasury stock method) | 316 | 251 | ||||||||
Weighted-average common shares and potential common shares outstanding | 95,197 | 98,913 | ||||||||
Earnings per common share | ||||||||||
Basic | $ | 1.17 | $ | 1.08 | ||||||
Diluted | $ | 1.17 | $ | 1.07 |
Stock_Based_Compensation_Table
Stock Based Compensation (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Share-based Compensation [Abstract] | ||||||||||||||
Schedule of Share-based Compensation, Common Stock, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | Weighted-average | |||||||||||||
Number | grant date | Aggregate | Vesting | |||||||||||
of shares | fair value | fair value | period | |||||||||||
Restricted stock | 299 | $ | 55.81 | $ | 16,692 | 1 - 4 years | ||||||||
Restricted stock units | 4 | 55.78 | 245 | 4 years |
Supplemental_Information_Table
Supplemental Information (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Supplemental Information [Abstract] | |||||||
Supplemental Information | Three months ended March 31, | ||||||
2015 | 2014 | ||||||
Income taxes paid (refunded) | $ | 28,926 | $ | -478 | |||
Interest paid | 2,161 | 1,539 | |||||
Dividends declared but not paid at end of period | 28,270 | 22,500 | |||||
Purchases of common stock not paid at end of period | 9,840 | 639 |
General_Information_Details_Te
General Information (Details Textuals) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
countries | |||
General Information [Abstract] | |||
Number of countries in which The Company underwrites non-correlated specialty insurance products | 180 | ||
Unamortized Debt Issuance Cost | $4 | $4.20 | |
Statutory tax rate | 35.00% | 35.00% |
Acquisition_Narrative_Details_
Acquisition (Narrative) (Details Textuals) (USD $) | 0 Months Ended | 3 Months Ended | |
Apr. 28, 2015 | Jan. 01, 2015 | Mar. 31, 2015 | |
Provisional Business Combinations [Abstract] | |||
Amount of goodwill recognized in acquisition | $45,000,000 | ||
Cash paid to acquire an entity | 104,500,000 | ||
Finite Lived Intangible Assets (Line Items) | |||
Intangible Assets as of the Acquisition Date | 54,000,000 | ||
Proceeds From Previous Acquisition | 2,100,000 | ||
Indefinite-lived intangible assets | 23,000,000 | ||
Percentage of ProAg 2014 Business Ceded to FCIC and Third Party Reinsurers | 100.00% | ||
Tangible assets recorded mainly for ProAg's receivables and reinsurance recoverables | 458,500,000 | ||
Liabilities recorded mainly for ProAg's reserves and reinsurance payables | 453,000,000 | ||
Agent relationships [Member] | |||
Finite Lived Intangible Assets (Line Items) | |||
Useful lives of finite-lived intangible assets acquired, years | 15 years | ||
Acquired Finite-lived intangible assets | 23,000,000 | ||
Trade name [Member] | |||
Finite Lived Intangible Assets (Line Items) | |||
Useful lives of finite-lived intangible assets acquired, years | 10 years | ||
Acquired Finite-lived intangible assets | $8,000,000 |
Segments_Pretax_Earnings_by_Se
Segments Pretax Earnings by Segment (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Information by business segment | ||
Net earned premium | $600,563 | $562,612 |
Other revenue | 75,887 | 86,318 |
Total revenue | 676,450 | 648,930 |
Loss and LAE | 365,162 | 330,746 |
Other expense | 160,460 | 163,212 |
Total expense | 525,622 | 493,958 |
Earnings before income taxes | 150,828 | 154,972 |
North America Property & Casualty [Member] | ||
Information by business segment | ||
Net earned premium | 209,239 | 201,334 |
Other revenue | 6,102 | 5,431 |
Total revenue | 215,341 | 206,765 |
Loss and LAE | 116,436 | 103,553 |
Other expense | 68,348 | 57,538 |
Total expense | 184,784 | 161,091 |
Earnings before income taxes | 30,557 | 45,674 |
Accident & Health [Member] | ||
Information by business segment | ||
Net earned premium | 254,950 | 232,143 |
Other revenue | 2,013 | 1,640 |
Total revenue | 256,963 | 233,783 |
Loss and LAE | 187,011 | 170,805 |
Other expense | 38,665 | 34,573 |
Total expense | 225,676 | 205,378 |
Earnings before income taxes | 31,287 | 28,405 |
International [Member] | ||
Information by business segment | ||
Net earned premium | 136,377 | 128,844 |
Other revenue | 1,008 | 976 |
Total revenue | 137,385 | 129,820 |
Loss and LAE | 61,443 | 56,314 |
Other expense | 47,311 | 46,475 |
Total expense | 108,754 | 102,789 |
Earnings before income taxes | 28,631 | 27,031 |
Investing [Member] | ||
Information by business segment | ||
Net earned premium | 0 | 0 |
Other revenue | 66,668 | 77,052 |
Total revenue | 66,668 | 77,052 |
Loss and LAE | 0 | 0 |
Other expense | 0 | 0 |
Total expense | 0 | 0 |
Earnings before income taxes | 66,668 | 77,052 |
Corporate & Other [Member] | ||
Information by business segment | ||
Net earned premium | -3 | 291 |
Other revenue | 96 | 1,219 |
Total revenue | 93 | 1,510 |
Loss and LAE | 272 | 74 |
Other expense | 6,136 | 24,626 |
Total expense | 6,408 | 24,700 |
Earnings before income taxes | ($6,315) | ($23,190) |
Segments_Goodwill_Rollforward_
Segments (Goodwill Rollforward) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Goodwill [Line Items] | ||
Balance at beginning of year | $905,636 | |
Acquisition of ProAg | 45,000 | |
Other, principally foreign exchange | -1,285 | |
Balance at March 31, 2015 | 949,351 | |
North America Property & Casualty [Member] | ||
Goodwill [Line Items] | ||
Balance at beginning of year | 552,006 | |
Acquisition of ProAg | 45,000 | |
Other, principally foreign exchange | 100 | |
Balance at March 31, 2015 | 597,106 | |
Accident & Health [Member] | ||
Goodwill [Line Items] | ||
Balance at beginning of year | 144,113 | |
Balance at March 31, 2015 | 144,113 | 144,113 |
International [Member] | ||
Goodwill [Line Items] | ||
Balance at beginning of year | 209,517 | |
Other, principally foreign exchange | -1,385 | |
Balance at March 31, 2015 | $208,132 |
Segments_Assets_by_Segment_Det
Segments (Assets by Segment) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ||
Assets | $11,026,297 | $10,714,346 |
North America Property & Casualty [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 2,232,696 | 1,894,756 |
Accident And Health [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 244,394 | 242,278 |
International [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,092,640 | 1,073,889 |
Investing [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 7,178,088 | 7,228,608 |
Corporate And Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | $278,479 | $274,815 |
Investments_Schedule_of_Availa
Investments (Schedule of Available for Sale Securities (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Fixed Maturity & Equity Securities Available for Sale | ||
Available-for-sale Fixed Maturity Securities, Amortized Cost Basis | $6,192,036 | $6,352,737 |
Gross unrealized gain | 286,591 | 280,620 |
Gross unrealized loss | -26,183 | -22,989 |
Fixed maturity securities - available for sale | 6,452,444 | 6,610,368 |
Available for sale equity securities | ||
Available-for-sale Equity Securities, Amortized Cost Basis | 325,435 | 291,070 |
Gross unrealized gain | 25,464 | 24,069 |
Gross unrealized loss | -16,136 | -18,787 |
Available-for-sale Securities, Equity Securities | 334,763 | 296,352 |
US Government and Government Agency Securities [Member] | ||
Fixed Maturity & Equity Securities Available for Sale | ||
Available-for-sale Fixed Maturity Securities, Amortized Cost Basis | 73,540 | 70,279 |
Gross unrealized gain | 983 | 827 |
Gross unrealized loss | -7 | -137 |
Fixed maturity securities - available for sale | 74,516 | 70,969 |
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 | 877,954 | 896,130 |
Gross unrealized gain | 56,164 | 58,738 |
Gross unrealized loss | -55 | -160 |
Fixed maturity securities - available for sale | 934,063 | 954,708 |
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 | 2,253,237 | 2,246,707 |
Gross unrealized gain | 143,514 | 143,291 |
Gross unrealized loss | -1,065 | -986 |
Fixed maturity securities - available for sale | 2,395,686 | 2,389,012 |
Corporate Securities [Member] | ||
Fixed Maturity & Equity Securities Available for Sale | ||
Available-for-sale Fixed Maturity Securities, Amortized Cost Basis | 726,320 | 777,242 |
Gross unrealized gain | 28,287 | 25,983 |
Gross unrealized loss | -2,584 | -4,656 |
Fixed maturity securities - available for sale | 752,023 | 798,569 |
Residential Mortgage Backed Securities [Member] | ||
Fixed Maturity & Equity Securities Available for Sale | ||
Available-for-sale Fixed Maturity Securities, Amortized Cost Basis | 770,957 | 805,458 |
Gross unrealized gain | 22,259 | 20,215 |
Gross unrealized loss | -1,806 | -3,979 |
Fixed maturity securities - available for sale | 791,410 | 821,694 |
Commercial Mortgage Backed Securities [Member] | ||
Fixed Maturity & Equity Securities Available for Sale | ||
Available-for-sale Fixed Maturity Securities, Amortized Cost Basis | 567,340 | 593,956 |
Gross unrealized gain | 26,032 | 19,707 |
Gross unrealized loss | -592 | -2,032 |
Fixed maturity securities - available for sale | 592,780 | 611,631 |
Asset-backed Securities [Member] | ||
Fixed Maturity & Equity Securities Available for Sale | ||
Available-for-sale Fixed Maturity Securities, Amortized Cost Basis | 369,289 | 369,103 |
Gross unrealized gain | 1,051 | 316 |
Gross unrealized loss | -1,038 | -2,592 |
Fixed maturity securities - available for sale | 369,302 | 366,827 |
Foreign Government Securities [Member] | ||
Fixed Maturity & Equity Securities Available for Sale | ||
Available-for-sale Fixed Maturity Securities, Amortized Cost Basis | 124,957 | 119,479 |
Gross unrealized gain | 471 | 767 |
Gross unrealized loss | -3,396 | -1,554 |
Fixed maturity securities - available for sale | 122,032 | 118,692 |
Foreign Corporate Securities [Member] | ||
Fixed Maturity & Equity Securities Available for Sale | ||
Available-for-sale Fixed Maturity Securities, Amortized Cost Basis | 428,442 | 474,383 |
Gross unrealized gain | 7,830 | 10,776 |
Gross unrealized loss | -15,640 | -6,893 |
Fixed maturity securities - available for sale | $420,632 | $478,266 |
Investments_Securities_in_Unre
Investments (Securities in Unrealized Loss Position) (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Gross unrealized losses and fair value of all available for sale securities that were in a continuous loss position | ||
Less than 12 months, Fair value | $688,189 | $806,757 |
Less than 12 months, Unrealized losses | -31,389 | -27,841 |
12 months or more, Fair value | 319,132 | 617,224 |
12 months or more, Unrealized losses | -10,930 | -13,935 |
Total, Fair value | 1,007,321 | 1,423,981 |
Total, Unrealized losses | -42,319 | -41,776 |
US Government and Government Agency Securities [Member] | ||
Gross unrealized losses and fair value of all available for sale securities that were in a continuous loss position | ||
Less than 12 months, Fair value | 421 | 14,813 |
Less than 12 months, Unrealized losses | 0 | -8 |
12 months or more, Fair value | 3,985 | 11,236 |
12 months or more, Unrealized losses | -7 | -129 |
Total, Fair value | 4,406 | 26,049 |
Total, Unrealized losses | -7 | -137 |
Fixed Maturity Securities of States, Municipalities and Political Subdivisions Securities [Member] | ||
Gross unrealized losses and fair value of all available for sale securities that were in a continuous loss position | ||
Less than 12 months, Fair value | 16,379 | 3,857 |
Less than 12 months, Unrealized losses | -55 | -21 |
12 months or more, Fair value | 0 | 19,337 |
12 months or more, Unrealized losses | 0 | -139 |
Total, Fair value | 16,379 | 23,194 |
Total, Unrealized losses | -55 | -160 |
Special Purpose Revenue Bonds Of States Municipalities And Political Subdivisions [Member] | ||
Gross unrealized losses and fair value of all available for sale securities that were in a continuous loss position | ||
Less than 12 months, Fair value | 84,718 | 4,041 |
Less than 12 months, Unrealized losses | -587 | -19 |
12 months or more, Fair value | 17,341 | 100,947 |
12 months or more, Unrealized losses | -478 | -967 |
Total, Fair value | 102,059 | 104,988 |
Total, Unrealized losses | -1,065 | -986 |
Corporate Securities [Member] | ||
Gross unrealized losses and fair value of all available for sale securities that were in a continuous loss position | ||
Less than 12 months, Fair value | 66,827 | 211,111 |
Less than 12 months, Unrealized losses | -1,578 | -2,498 |
12 months or more, Fair value | 42,230 | 48,091 |
12 months or more, Unrealized losses | -1,006 | -2,158 |
Total, Fair value | 109,057 | 259,202 |
Total, Unrealized losses | -2,584 | -4,656 |
Residential Mortgage Backed Securities [Member] | ||
Gross unrealized losses and fair value of all available for sale securities that were in a continuous loss position | ||
Less than 12 months, Fair value | 75,826 | 37,434 |
Less than 12 months, Unrealized losses | -540 | -100 |
12 months or more, Fair value | 104,754 | 226,256 |
12 months or more, Unrealized losses | -1,266 | -3,879 |
Total, Fair value | 180,580 | 263,690 |
Total, Unrealized losses | -1,806 | -3,979 |
Commercial Mortgage Backed Securities [Member] | ||
Gross unrealized losses and fair value of all available for sale securities that were in a continuous loss position | ||
Less than 12 months, Fair value | 12,013 | 5,228 |
Less than 12 months, Unrealized losses | -155 | -26 |
12 months or more, Fair value | 25,852 | 99,868 |
12 months or more, Unrealized losses | -437 | -2,006 |
Total, Fair value | 37,865 | 105,096 |
Total, Unrealized losses | -592 | -2,032 |
Asset-backed Securities [Member] | ||
Gross unrealized losses and fair value of all available for sale securities that were in a continuous loss position | ||
Less than 12 months, Fair value | 73,934 | 181,579 |
Less than 12 months, Unrealized losses | -119 | -1,245 |
12 months or more, Fair value | 91,570 | 78,797 |
12 months or more, Unrealized losses | -919 | -1,347 |
Total, Fair value | 165,504 | 260,376 |
Total, Unrealized losses | -1,038 | -2,592 |
Foreign Government Securities [Member] | ||
Gross unrealized losses and fair value of all available for sale securities that were in a continuous loss position | ||
Less than 12 months, Fair value | 51,165 | 55,280 |
Less than 12 months, Unrealized losses | -3,392 | -1,498 |
12 months or more, Fair value | 1,242 | 7,187 |
12 months or more, Unrealized losses | -4 | -56 |
Total, Fair value | 52,407 | 62,467 |
Total, Unrealized losses | -3,396 | -1,554 |
Foreign Corporate Securities [Member] | ||
Gross unrealized losses and fair value of all available for sale securities that were in a continuous loss position | ||
Less than 12 months, Fair value | 167,020 | 182,163 |
Less than 12 months, Unrealized losses | -12,267 | -4,587 |
12 months or more, Fair value | 20,657 | 21,571 |
12 months or more, Unrealized losses | -3,373 | -2,306 |
Total, Fair value | 187,677 | 203,734 |
Total, Unrealized losses | -15,640 | -6,893 |
Equity Securities [Member] | ||
Gross unrealized losses and fair value of all available for sale securities that were in a continuous loss position | ||
Less than 12 months, Fair value | 139,886 | 111,251 |
Less than 12 months, Unrealized losses | -12,696 | -17,839 |
12 months or more, Fair value | 11,501 | 3,934 |
12 months or more, Unrealized losses | -3,440 | -948 |
Total, Fair value | 151,387 | 115,185 |
Total, Unrealized losses | ($16,136) | ($18,787) |
Investments_Securities_by_Cont
Investments (Securities by Contractual Maturity (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
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 | $156,470 | |
Due after 1 year through 5 years, Available for sale, Cost or amortized cost | 1,117,553 | |
Due after 5 years through 10 years, Available for sale, Cost or amortized cost | 1,322,979 | |
Due after 10 years through 15 years, Available for sale, Cost or amortized cost | 884,731 | |
Due after 15 years, Available for sale, Cost or amortized cost | 1,002,717 | |
Securities with contractual maturities, Available for sale, Cost or amortized cost | 4,484,450 | |
Mortgage-backed and asset-backed securities, Available for sale, Cost or amortized cost | 1,707,586 | |
Available-for-sale fixed maturity Securities, Amortized Cost Basis | 6,192,036 | 6,352,737 |
Due in 1 year or less, Available for sale, Fair value | 153,783 | |
Due after 1 year through 5 years, Available for sale, Fair value | 1,138,249 | |
Due after 5 years through 10 years, Available for sale, Fair value | 1,400,954 | |
Due after 10 years through 15 years, Available for sale, Fair value | 945,028 | |
Due after 15 years, Available for sale, Fair value | 1,060,938 | |
Securities with contractual maturities, Available for sale, Fair value | 4,698,952 | |
Mortgage-backed and asset-backed securities, Available for sale, Fair value | 1,753,492 | |
Available-for-sale Securities, Fixed Maturity Securities, Fair value | $6,452,444 | $6,610,368 |
Investments_Realized_Gain_Loss
Investments (Realized Gain Loss) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Realized pretax gains (losses) on the sale of investments | ||
Gains | $24,187 | $25,570 |
Losses | -11,001 | -5,324 |
Net realized investment gain | 13,186 | 20,246 |
Fixed Maturity Securities [Member] | ||
Realized pretax gains (losses) on the sale of investments | ||
Gains | 13,876 | 1,132 |
Losses | -1,472 | -2,155 |
Net realized investment gain | 12,404 | -1,023 |
Equity Securities [Member] | ||
Realized pretax gains (losses) on the sale of investments | ||
Gains | 10,311 | 24,438 |
Losses | -9,529 | -3,169 |
Net realized investment gain | $782 | $21,269 |
Investments_Narrative_or_Textu
Investments (Narrative or Textual) (Details) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Investment [Abstract] | ||
Condition for categorizing the impaired securities | $1,000,000 | |
Condition for categorizing the impaired securities, percentage | 10.00% | |
Weighted-average life of mortgage-backed and asset-backed securities, Years | 5.1 | |
Number of fixed maturity and equity securities held | 2,910 | |
Percentage of securities in unrealized loss position | 20.00% | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | ($42,319,000) | ($41,776,000) |
Fair_Value_Measurements_Assets
Fair Value Measurements (Assets and Liabilities FV) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Available for sale | ||
Fixed maturity securities - available for sale | $6,452,444 | $6,610,368 |
Equity securities - available for sale, at fair value | 334,763 | 296,352 |
Short-term investments* | 325,154 | 258,186 |
Restricted cash and securities | 3,156 | 2,729 |
Premium, claims and other receivables | 53,212 | 56,493 |
Other assets | 1,412 | 1,324 |
Total assets measured at fair value | 7,170,141 | 7,225,452 |
Notes payable | 936,968 | 875,094 |
Accounts payable and accrued liabilities - earnout liabilities | 11,457 | 11,473 |
Total liabilities measured at fair value | 948,425 | 886,567 |
Fair Value, Inputs, Level 1 [Member] | ||
Available for sale | ||
Fixed maturity securities - available for sale | 69,238 | 63,663 |
Equity securities - available for sale, at fair value | 334,763 | 296,352 |
Short-term investments* | 187,436 | 159,297 |
Other assets | 17 | 18 |
Total assets measured at fair value | 591,454 | 519,330 |
Fair Value, Inputs, Level 2 [Member] | ||
Available for sale | ||
Fixed maturity securities - available for sale | 6,383,058 | 6,546,557 |
Short-term investments* | 137,718 | 98,889 |
Restricted cash and securities | 3,156 | 2,729 |
Premium, claims and other receivables | 53,212 | 56,493 |
Total assets measured at fair value | 6,577,144 | 6,704,668 |
Notes payable | 936,968 | 875,094 |
Accounts payable and accrued liabilities - earnout liabilities | 3,156 | 2,729 |
Total liabilities measured at fair value | 940,124 | 877,823 |
Fair Value, Inputs, Level 3 [Member] | ||
Available for sale | ||
Fixed maturity securities - available for sale | 148 | 148 |
Other assets | 1,395 | 1,306 |
Total assets measured at fair value | 1,543 | 1,454 |
Accounts payable and accrued liabilities - earnout liabilities | 8,301 | 8,744 |
Total liabilities measured at fair value | 8,301 | 8,744 |
US Government and Government Agency Securities [Member] | ||
Available for sale | ||
Fixed maturity securities - available for sale | 74,516 | 70,969 |
US Government and Government Agency Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available for sale | ||
Fixed maturity securities - available for sale | 69,238 | 63,663 |
US Government and Government Agency Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available for sale | ||
Fixed maturity securities - available for sale | 5,278 | 7,306 |
Fixed Maturity Securities of States, Municipalities and Political Subdivisions Securities [Member] | ||
Available for sale | ||
Fixed maturity securities - available for sale | 934,063 | 954,708 |
Fixed Maturity Securities of States, Municipalities and Political Subdivisions Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available for sale | ||
Fixed maturity securities - available for sale | 934,063 | 954,708 |
Special Purpose Revenue Bonds Of States Municipalities And Political Subdivisions [Member] | ||
Available for sale | ||
Fixed maturity securities - available for sale | 2,395,686 | 2,389,012 |
Special Purpose Revenue Bonds Of States Municipalities And Political Subdivisions [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available for sale | ||
Fixed maturity securities - available for sale | 2,395,686 | 2,389,012 |
Corporate Securities [Member] | ||
Available for sale | ||
Fixed maturity securities - available for sale | 752,023 | 798,569 |
Corporate Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available for sale | ||
Fixed maturity securities - available for sale | 751,875 | 798,421 |
Corporate Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Available for sale | ||
Fixed maturity securities - available for sale | 148 | 148 |
Residential Mortgage Backed Securities [Member] | ||
Available for sale | ||
Fixed maturity securities - available for sale | 791,410 | 821,694 |
Residential Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available for sale | ||
Fixed maturity securities - available for sale | 791,410 | 821,694 |
Commercial Mortgage Backed Securities [Member] | ||
Available for sale | ||
Fixed maturity securities - available for sale | 592,780 | 611,631 |
Commercial Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available for sale | ||
Fixed maturity securities - available for sale | 592,780 | 611,631 |
Asset-backed Securities [Member] | ||
Available for sale | ||
Fixed maturity securities - available for sale | 369,302 | 366,827 |
Asset-backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available for sale | ||
Fixed maturity securities - available for sale | 369,302 | 366,827 |
Foreign Government Securities [Member] | ||
Available for sale | ||
Fixed maturity securities - available for sale | 122,032 | 118,692 |
Foreign Government Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available for sale | ||
Fixed maturity securities - available for sale | 122,032 | 118,692 |
Foreign Corporate Securities [Member] | ||
Available for sale | ||
Fixed maturity securities - available for sale | 420,632 | 478,266 |
Foreign Corporate Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available for sale | ||
Fixed maturity securities - available for sale | $420,632 | $478,266 |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative or Textuals) (Details) | Mar. 31, 2015 |
Fair Value Measurements [Abstract] | |
Interest rate of senior notes | 6.30% |
Reinsurance_Reinsurance_Transa
Reinsurance (Reinsurance Transactions Effect) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Effect of reinsurance transactions on our premium, loss and loss adjustment expense and policy acquisition costs | ||
Direct written premium | $717,048 | $620,512 |
Reinsurance assumed | 109,088 | 126,210 |
Reinsurance ceded | -157,220 | -156,540 |
Net written premium | 668,916 | 590,182 |
Direct earned premium | 703,584 | 637,313 |
Reinsurance assumed | 71,168 | 76,023 |
Reinsurance ceded | -174,189 | -150,724 |
Net earned premium | 600,563 | 562,612 |
Direct loss and loss adjustment expense | 458,726 | 359,629 |
Reinsurance assumed | 27,216 | 41,802 |
Reinsurance ceded | -120,780 | -70,685 |
Net loss and loss adjustment expense | 365,162 | 330,746 |
Policy acquisition costs | 115,070 | 104,645 |
Ceding commissions | -39,859 | -35,604 |
Net policy acquisition costs | $75,211 | $69,041 |
Reinsurance_Reinsurance_Recove
Reinsurance (Reinsurance Recoverables) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Components of reinsurance recoverables | ||
Reinsurance recoverable on paid losses | $95,157 | $99,937 |
Reinsurance recoverable on outstanding losses | 448,069 | 443,059 |
Reinsurance recoverable on incurred but not reported losses | 634,415 | 627,404 |
Reserve for uncollectible reinsurance | -1,500 | -1,500 |
Total reinsurance recoverables | $1,176,141 | $1,168,900 |
Reinsurance_Narrative_or_Textu
Reinsurance (Narrative or Textuals) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Reinsurance [Abstract] | ||
Recoverables related to Spanish surety bonds | $86,300,000 | |
Paid loss recoverables related to Spanish surety bonds | 43,400,000 | |
Recoverables in dispute from run-off reinsurers related to Spanish surety bonds | 41,500,000 | |
Paid loss recoverables in dispute from run-off reinsurers related to Spanish surety bonds | 36,800,000 | |
Reserve for uncollectible reinsurance | $1,500,000 | $1,500,000 |
Liability_for_Unpaid_Loss_and_2
Liability for Unpaid Loss and Loss Adjustment Expense (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
LiabilityForUnpaidClaimsAndClaimsAdjustmentExpenseNetAbstract | ||
Reserves at beginning of period | $3,728,085 | $3,902,132 |
Less reinsurance recoverables on reserves | 1,070,463 | 1,122,731 |
Net reserves at beginning of period | 2,657,622 | 2,779,401 |
Net reserve additions from acquired business | 9,386 | |
Net loss and loss adjustment expense: | ||
Net loss and loss adjustment expense | 365,162 | 330,746 |
Net loss and loss adjustment expense payments for claims occurring during: | ||
Net loss and loss adjustment expense payments | -388,538 | -363,858 |
Foreign currency adjustment | -32,951 | 2,552 |
Net reserves at end of period | 2,610,681 | 2,748,841 |
Plus reinsurance recoverables on reserves | 1,082,484 | 1,098,576 |
Reserves at end of period | $3,693,165 | $3,847,417 |
Notes_Payable_Details
Notes Payable (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Notes Payable [Line Items] | ||
Notes payable | $889,290 | $824,251 |
6.3% Senior Notes [Member] | ||
Notes Payable [Line Items] | ||
Notes payable | 299,290 | 299,251 |
Revolving Loan Facility [Member] | ||
Notes Payable [Line Items] | ||
Notes payable | $590,000 | $525,000 |
Notes_Payable_Narrative_or_Tex
Notes Payable (Narrative or Textuals) (Details) (USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Notes Payable [Abstract] | |
Interest rate of senior notes | 6.30% |
Borrowing capacity under line of credit facility | $825 |
Borrowing rate under revolving loan facility | 1.40% |
Remaining borrowing capacity under Revolving Loan Facility as reduced by outstanding letters of credit | $230.10 |
Income_Taxes_Effective_Tax_Rat
Income Taxes (Effective Tax Rate Reconciliation) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Differences between our effective tax rate for financial statement purposes and the Federal statutory rate | ||
Statutory tax rate | 35.00% | 35.00% |
Federal tax at statutory rate | $52,790 | $54,240 |
Nontaxable municipal bond interest and dividend received deduction | -9,752 | -8,927 |
State income taxes, net of federal tax benefit | 717 | 834 |
Foreign income taxes | 9,951 | 7,226 |
Foreign tax credits | -9,776 | -7,226 |
Indefinitely reinvested earnings of foreign subsidiaries | -9,134 | 0 |
Uncertain tax positions (net of federal tax benefit on state positions: $93 in 2015, $144 in 2014) | 2,234 | 320 |
Other, net | 881 | 594 |
Income tax expense | $37,911 | $47,061 |
Effective tax rate | 25.10% | 30.40% |
Income_Taxes_Narrative_or_Text
Income Taxes (Narrative or Textuals) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Indefinitely reinvested earnings of foreign subsidiaries (Line items) | ||
Indefinitely reinvested earnings of foreign subsidiaries | $9,134,000 | $0 |
Undistributed Earnings of Foreign Subsidiaries | 321,200,000 | |
Cumluative undistributed foreign earnings through December 31, 2014 [Member] | ||
Indefinitely reinvested earnings of foreign subsidiaries (Line items) | ||
Indefinitely reinvested earnings of foreign subsidiaries | 5,900,000 | |
Cumluative undistributed foreign earnings first quarter of 2015 [Member] | ||
Indefinitely reinvested earnings of foreign subsidiaries (Line items) | ||
Indefinitely reinvested earnings of foreign subsidiaries | $3,200,000 | |
United Kingdom | ||
Foreign statutory tax rate (Line Items) | ||
Foreign statutory tax rate | 20.00% | |
Spain | ||
Foreign statutory tax rate (Line Items) | ||
Foreign statutory tax rate | 28.00% |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Rollforward of Comprehensive Income) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Accumulated Other Comprehensive Income, Net of Tax, Beginning Balance | $175,014 | |
Other comprehensive income | -2,752 | 43,570 |
Accumulated Other Comprehensive Income, Net of Tax, Ending Balance | 172,262 | |
Accumulated Net Unrealized Investment Gain [Member] | ||
Accumulated Other Comprehensive Income, Net of Tax, Beginning Balance | 169,984 | |
Other comprehensive income | 4,233 | |
Accumulated Other Comprehensive Income, Net of Tax, Ending Balance | 174,217 | |
Accumulated Translation Adjustment [Member] | ||
Accumulated Other Comprehensive Income, Net of Tax, Beginning Balance | 5,030 | |
Other comprehensive income | -6,985 | |
Accumulated Other Comprehensive Income, Net of Tax, Ending Balance | -1,955 | |
Accumulated other comprehensive income [Member] | ||
Other comprehensive income | ($2,752) |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share, Basic and Diluted | ||
Net earnings | $112,917 | $107,911 |
Less: net earnings attributable to unvested restricted stock | 1,641 | 1,692 |
Net earnings available to common stock | 111,276 | 106,219 |
Weighted-average common shares outstanding | 94,881 | 98,662 |
Dilutive effect of outstanding securities (determined using treasury stock method) | 316 | 251 |
Weighted-average common shares and potential common shares outstanding | 95,197 | 98,913 |
Earnings Per Share, Basic | $1.17 | $1.08 |
Earnings Per Share, Diluted | $1.17 | $1.07 |
Net earnings available to common stock | $111,276 | $106,219 |
Stock_based_compensation_Sched
Stock based compensation (Schedule of Stock-based Compensation Grants) (Details) (USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 |
Restricted stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares | 299 |
Weighted-average grant date fair value, awarded | $55.81 |
Aggregate fair value | $16,692 |
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 | 4 |
Weighted-average grant date fair value, awarded | $55.78 |
Aggregate fair value | $245 |
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 |
Stock_based_Compensation_Narra
Stock based Compensation (Narrative or Textuals) (Details) | 3 Months Ended |
Mar. 31, 2015 | |
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% |
Commitments_and_Contingencies_
Commitments and Contingencies (Narrative or Textuals) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Commitments And Contingencies [Line Items] | ||
Pretax cat loss after reinsurance | $5 | $4.60 |
Longest Indemnification Expiration Date | 2025 |
Supplemental_Information_Suppl
Supplemental Information (Supplemental Cash Flow Information) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Supplemental Information | ||
Income taxes paid (refunded) | $28,926 | ($478) |
Interest paid | 2,161 | 1,539 |
Proceeds from sales of available for sale fixed maturity securities | 167,206 | 119,011 |
Proceeds from sales of equity securities | 66,412 | 144,075 |
Dividends declared but not paid at end of period | 28,270 | 22,500 |
Purchases of common stock not paid at end of period | $9,840 | $639 |