Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 27, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document type | '10-Q | ' |
Document period end date | 30-Sep-14 | ' |
Amendment flag | 'false | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Entity registrant name | 'PARTNERRE LTD. | ' |
Entity central index key | '0000911421 | ' |
Entity current reporting status | 'Yes | ' |
Entity voluntary filers | 'No | ' |
Current fiscal year end date | '--12-31 | ' |
Entity filer category | 'Large Accelerated Filer | ' |
Entity well known seasoned issuer | 'Yes | ' |
Entity common stock shares outstanding | ' | 48,972,567 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Fixed maturities, at fair value (amortized cost: 2014, $13,575,112; 2013, $13,376,455) | $13,950,629 | $13,593,303 |
Short-term investments, at fair value (amortized cost: 2014, $37,010; 2013, $13,543) | 37,016 | 13,546 |
Equities, at fair value (cost: 2014, $804,920; 2013, $1,009,286) | 1,001,307 | 1,221,053 |
Other invested assets | 299,260 | 320,981 |
Total investments | 15,288,212 | 15,148,883 |
Funds held – directly managed (cost: 2014, $642,278; 2013, $778,569) | 650,374 | 785,768 |
Cash and cash equivalents | 1,519,287 | 1,496,485 |
Accrued investment income | 171,050 | 185,717 |
Reinsurance balances receivable | 2,974,668 | 2,465,713 |
Reinsurance recoverable on paid and unpaid losses | 317,071 | 308,892 |
Funds held by reinsured companies | 808,686 | 843,081 |
Deferred acquisition costs | 707,481 | 644,952 |
Deposit assets | 104,218 | 351,905 |
Net tax assets | 5,029 | 14,133 |
Goodwill | 456,380 | 456,380 |
Intangible assets | 166,083 | 187,090 |
Other assets | 38,804 | 149,296 |
Total assets | 23,207,343 | 23,038,295 |
Liabilities | ' | ' |
Unpaid losses and loss expenses | 10,264,001 | 10,646,318 |
Policy benefits for life and annuity contracts | 2,113,463 | 1,974,133 |
Unearned premiums | 2,048,550 | 1,723,767 |
Other reinsurance balances payable | 237,175 | 202,549 |
Deposit liabilities | 71,857 | 328,588 |
Net tax liabilities | 234,651 | 284,442 |
Accounts payable, accrued expenses and other | 350,401 | 291,350 |
Debt related to senior notes | 750,000 | 750,000 |
Debt related to capital efficient notes | 70,989 | 70,989 |
Total liabilities | 16,141,087 | 16,272,136 |
Shareholders’ Equity | ' | ' |
Common shares (par value $1.00; issued: 2014, 87,141,960 shares; 2013, 86,657,045 shares) | 87,142 | 86,657 |
Preferred shares (par value $1.00; issued and outstanding: 2014 and 2013, 34,150,000 shares; aggregate liquidation value: 2014 and 2013, $853,750) | 34,150 | 34,150 |
Additional paid-in capital | 3,936,396 | 3,901,627 |
Accumulated other comprehensive loss | -8,718 | -12,238 |
Retained earnings | 6,040,875 | 5,406,797 |
Common shares held in treasury, at cost (2014, 37,794,611 shares; 2013, 34,213,611 shares) | -3,075,865 | -2,707,461 |
Total shareholders’ equity attributable to PartnerRe Ltd. | 7,013,980 | 6,709,532 |
Noncontrolling interests | 52,276 | 56,627 |
Total shareholders’ equity | 7,066,256 | 6,766,159 |
Total liabilities and shareholders’ equity | $23,207,343 | $23,038,295 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parentheticals) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Assets | ' | ' |
Fixed maturities, amortized cost | $13,575,112 | $13,376,455 |
Short-term investments, amortized cost | 37,010 | 13,543 |
Equities, cost | 804,920 | 1,009,286 |
Funds held - directly managed, cost | 642,278 | 778,569 |
Shareholders’ Equity | ' | ' |
Common shares, par value | $1 | $1 |
Common shares, shares issued | 87,141,960 | 86,657,045 |
Preferred shares, par value | $1 | $1 |
Number of preferred shares issued | 34,150,000 | 34,150,000 |
Preferred shares, shares outstanding | 34,150,000 | 34,150,000 |
Aggregate liquidation value | $853,750 | $853,750 |
Common shares held in treasury, shares | 37,794,611 | 34,213,611 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations and Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Revenues | ' | ' | ' | ' | ||||
Gross premiums written | $1,361,280 | $1,281,477 | $4,695,327 | $4,378,944 | ||||
Net premiums written | 1,342,690 | 1,264,775 | 4,499,849 | 4,210,525 | ||||
Decrease (increase) in unearned premiums | 213,924 | 156,694 | -336,384 | -433,740 | ||||
Net premiums earned | 1,556,614 | 1,421,469 | 4,163,465 | 3,776,785 | ||||
Net investment income | 118,176 | 121,811 | 365,010 | 370,017 | ||||
Net realized and unrealized investment (losses) gains | -34,420 | 16,118 | 273,468 | -260,154 | ||||
Other income | 2,223 | 5,399 | 11,892 | 13,205 | ||||
Total revenues | 1,642,593 | 1,564,797 | 4,813,835 | 3,899,853 | ||||
Expenses | ' | ' | ' | ' | ||||
Losses and loss expenses and life policy benefits | 959,543 | 750,999 | 2,592,847 | 2,278,793 | ||||
Acquisition costs | 321,756 | 282,948 | 888,937 | 758,890 | ||||
Other operating expenses | 108,615 | 108,467 | 327,149 | 369,340 | ||||
Interest expense | 12,241 | 12,233 | 36,719 | 36,694 | ||||
Amortization of intangible assets | 7,003 | 7,045 | 21,007 | 21,136 | ||||
Net foreign exchange (gains) losses | -8,206 | 1,279 | -10,900 | 9,822 | ||||
Total expenses | 1,400,952 | 1,162,971 | 3,855,759 | 3,474,675 | ||||
Income before taxes and interest in earnings of equity method investments | 241,641 | 401,826 | 958,076 | 425,178 | ||||
Income tax expense | 45,617 | 70,232 | 186,363 | 37,338 | ||||
Interest in earnings of equity method investments | 5,294 | 5,941 | 16,283 | 9,677 | ||||
Net income | 201,318 | 337,535 | 787,996 | 397,517 | ||||
Net income attributable to noncontrolling interests | -4,920 | -4,112 | -9,914 | -5,296 | ||||
Net income attributable to PartnerRe Ltd. | 196,398 | 333,423 | 778,082 | 392,221 | ||||
Preferred dividends | 14,184 | 14,184 | 42,551 | 43,678 | ||||
Loss on redemption of preferred shares | 0 | 0 | 0 | 9,135 | ||||
Net income attributable to PartnerRe Ltd. common shareholders | 182,214 | 319,239 | 735,531 | 339,408 | ||||
Comprehensive income | ' | ' | ' | ' | ||||
Net income attributable to PartnerRe Ltd. | 196,398 | 333,423 | 778,082 | 392,221 | ||||
Change in currency translation adjustment | 1,412 | 14,432 | 3,209 | -16,912 | ||||
Change in unfunded pension obligation, net of tax | 989 | 114 | 979 | 980 | ||||
Change in unrealized losses on investments, net of tax | -221 | -229 | -668 | -692 | ||||
Total other comprehensive income (loss), net of tax | 2,180 | 14,317 | 3,520 | -16,624 | ||||
Comprehensive income attributable to PartnerRe Ltd. | $198,578 | $347,740 | $781,602 | $375,597 | ||||
Per share data attributable to PartnerRe Ltd.common shareholders | ' | ' | ' | ' | ||||
Basic net income | $3.68 | $5.95 | $14.58 | $6.04 | ||||
Diluted net income | $3.60 | [1] | $5.84 | [1] | $14.26 | [1] | $5.93 | [1] |
Weighted average number of common shares outstanding | 49,514,980 | 53,671,245 | 50,461,749 | 56,176,260 | ||||
Weighted average number of common shares and common share equivalents outstanding | 50,681,325 | 54,625,151 | 51,566,134 | 57,217,561 | ||||
Dividends declared per common share | $0.67 | $0.64 | $2.01 | $1.92 | ||||
[1] | Where the exercise price of share based awards is greater than the average market price of the common shares, the common shares are considered anti-dilutive and are excluded from the calculation of weighted average number of common shares and common share equivalents outstanding - diluted. |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Shareholders' Equity (USD $) | Total | Parent [Member] | Common Shares [Member] | Preferred shares | Additional Paid-in Capital [Member] | Accumulated other comprehensive loss [Member] | Currency translation adjustment [Member] | Unfunded pension obligation [Member] | Unrealized gain (loss) on investment [Member] | Retained Earnings [Member] | Common shares held in treasury [Member] | Noncontrolling Interest [Member] |
In Thousands, unless otherwise specified | ||||||||||||
Total shareholders' equity at Dec. 31, 2012 | ' | ' | $85,460 | $35,750 | $3,861,844 | $10,597 | $32,755 | ($27,370) | $5,212 | $4,952,002 | ($2,012,157) | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common shares | ' | ' | 966 | ' | 56,568 | ' | ' | ' | ' | ' | ' | ' |
Issuance of preferred shares | ' | ' | ' | 10,000 | 231,265 | ' | ' | ' | ' | ' | ' | ' |
Redemption of preferred shares | ' | ' | ' | -11,600 | -269,265 | ' | ' | ' | ' | ' | ' | ' |
Change in currency translation adjustment | -16,912 | ' | ' | ' | ' | ' | -16,912 | ' | ' | ' | ' | ' |
Change in unfunded pension obligation, net of tax | 980 | ' | ' | ' | ' | ' | ' | 980 | ' | ' | ' | ' |
Change in unrealized losses on investments, net of tax | -692 | ' | ' | ' | ' | ' | ' | ' | -692 | ' | ' | ' |
Net income | 397,517 | ' | ' | ' | ' | ' | ' | ' | ' | 397,517 | ' | ' |
Net income attributable to noncontrolling interests | -5,296 | ' | ' | ' | ' | ' | ' | ' | ' | -5,296 | ' | ' |
Dividends on common shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | -108,191 | ' | ' |
Dividends on preferred shares | -43,678 | ' | ' | ' | ' | ' | ' | ' | ' | -43,678 | ' | ' |
Loss on redemption of preferred shares | -9,135 | ' | ' | ' | ' | ' | ' | ' | ' | -9,135 | ' | ' |
Repurchase of common shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -594,336 | ' |
Total shareholders' equity at Sep. 30, 2013 | 6,624,176 | 6,571,687 | 86,426 | 34,150 | 3,880,412 | -6,027 | 15,843 | -26,390 | 4,520 | 5,183,219 | -2,606,493 | 52,489 |
Total shareholders' equity at Dec. 31, 2013 | 6,766,159 | ' | 86,657 | 34,150 | 3,901,627 | -12,238 | 977 | -17,509 | 4,294 | 5,406,797 | -2,707,461 | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common shares | ' | ' | 485 | ' | 34,769 | ' | ' | ' | ' | ' | ' | ' |
Issuance of preferred shares | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' |
Redemption of preferred shares | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' |
Change in currency translation adjustment | 3,209 | ' | ' | ' | ' | ' | 3,209 | ' | ' | ' | ' | ' |
Change in unfunded pension obligation, net of tax | 979 | ' | ' | ' | ' | ' | ' | 979 | ' | ' | ' | ' |
Change in unrealized losses on investments, net of tax | -668 | ' | ' | ' | ' | ' | ' | ' | -668 | ' | ' | ' |
Net income | 787,996 | ' | ' | ' | ' | ' | ' | ' | ' | 787,996 | ' | ' |
Net income attributable to noncontrolling interests | -9,914 | ' | ' | ' | ' | ' | ' | ' | ' | -9,914 | ' | ' |
Dividends on common shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | -101,453 | ' | ' |
Dividends on preferred shares | -42,551 | ' | ' | ' | ' | ' | ' | ' | ' | -42,551 | ' | ' |
Loss on redemption of preferred shares | 0 | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' |
Repurchase of common shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -368,404 | ' |
Total shareholders' equity at Sep. 30, 2014 | $7,066,256 | $7,013,980 | $87,142 | $34,150 | $3,936,396 | ($8,718) | $4,186 | ($16,530) | $3,626 | $6,040,875 | ($3,075,865) | $52,276 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Shareholders' Equity (Parentheticals) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Unfunded pension obligation [Member] | ' | ' |
Shareholders Equity Parentheticals | ' | ' |
Balance at end of period, unfunded pension obligation, tax impact | $4,780,000 | $7,752,000 |
Unrealized gain on investments [Member] | ' | ' |
Shareholders Equity Parentheticals | ' | ' |
Balance at end of period, unrealized gain on investments, tax impact | $0 | $0 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities | ' | ' |
Net income | $787,996 | $397,517 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Amortization of net premium on investments | 82,519 | 119,468 |
Amortization of intangible assets | 21,007 | 21,136 |
Net realized and unrealized investment (gains) losses | -273,468 | 260,154 |
Changes in: | ' | ' |
Reinsurance balances, net | -565,187 | -592,380 |
Reinsurance recoverable on paid and unpaid losses, net of ceded premiums payable | 32,421 | 65,593 |
Funds held by reinsured companies and funds held – directly managed | 138,659 | 76,159 |
Deferred acquisition costs | -83,758 | -111,562 |
Net tax assets and liabilities | -27,792 | -83,379 |
Unpaid losses and loss expenses including life policy benefits | 144,663 | -65,725 |
Unearned premiums | 336,384 | 433,740 |
Other net changes in operating assets and liabilities | -10,207 | 63,014 |
Net cash provided by operating activities | 583,237 | 583,735 |
Payments/ proceeds from trading securities [Line Items] | ' | ' |
Redemptions of fixed maturities | 527,367 | 1,002,991 |
Sales and redemptions of short-term investments | 70,750 | 290,011 |
Purchases of short-term investments | -95,168 | -176,339 |
Other, net | -4,822 | 98,813 |
Net cash (used in) provided by investing activities | -2,579 | 584,512 |
Cash flows from financing activities | ' | ' |
Dividends paid to common and preferred shareholders | -144,004 | -151,869 |
Repurchase of common shares | -374,557 | -619,534 |
Issuance of common shares, net of taxes paid | 12,639 | 37,193 |
Net proceeds from issuance of preferred shares | 0 | 241,265 |
Repurchase of preferred shares | 0 | -290,000 |
(Distribution) sale of shares to noncontrolling interests | -14,265 | 47,136 |
Net cash used in financing activities | -520,187 | -735,809 |
Effect of foreign exchange rate changes on cash | -37,669 | -3,081 |
Increase in cash and cash equivalents | 22,802 | 429,357 |
Cash and cash equivalents—beginning of period | 1,496,485 | 1,121,705 |
Cash and cash equivalents—end of period | 1,519,287 | 1,551,062 |
Supplemental cash flow information: | ' | ' |
Taxes paid | 243,396 | 148,522 |
Interest paid | 24,630 | 24,630 |
Fixed maturities [Member] | ' | ' |
Payments/ proceeds from trading securities [Line Items] | ' | ' |
Sales of fixed maturities and sales of equities | 6,227,896 | 5,831,364 |
Purchases of fixed maturities and purchases of equities | -6,990,492 | -6,501,873 |
Equities [Member] | ' | ' |
Payments/ proceeds from trading securities [Line Items] | ' | ' |
Sales of fixed maturities and sales of equities | 464,212 | 595,848 |
Purchases of fixed maturities and purchases of equities | ($202,322) | ($556,303) |
Organization
Organization | 9 Months Ended |
Sep. 30, 2014 | |
Disclosure - Organization [Abstract] | ' |
Organization | ' |
1. Organization | |
PartnerRe Ltd. (PartnerRe or the Company) predominantly provides reinsurance and certain specialty insurance lines on a worldwide basis through its principal wholly-owned subsidiaries, including Partner Reinsurance Company Ltd. (PartnerRe Bermuda), Partner Reinsurance Europe SE and Partner Reinsurance Company of the U.S. Risks reinsured include, but are not limited to, property, casualty, motor, agriculture, aviation/space, catastrophe, credit/surety, engineering, energy, marine, specialty property, specialty casualty, multiline and other lines, mortality, longevity, accident and health and alternative risk products. The Company’s alternative risk products include weather and credit protection to financial, industrial and service companies on a worldwide basis. | |
Effective December 31, 2012, the Company completed the acquisition of Presidio Reinsurance Group, Inc. (subsequently renamed and referred to as PartnerRe Health), a California-based U.S. specialty accident and health reinsurance and insurance writer. The Condensed Consolidated Statements of Operations and Cash Flows include PartnerRe Health’s results from January 1, 2013. |
Significant_Accounting_Policie
Significant Accounting Policies | 9 Months Ended | |
Sep. 30, 2014 | ||
Disclosure - Significant Accounting Policies [Abstract] | ' | |
Basis of Presentation and Significant Accounting Policies [Text Block] | ' | |
2. Significant Accounting Policies | ||
The Company’s Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X. The Condensed Consolidated Financial Statements include the accounts of the Company and its subsidiaries. Intercompany accounts and transactions have been eliminated. | ||
The preparation of financial statements in conformity with U.S. GAAP requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. While Management believes that the amounts included in the Condensed Consolidated Financial Statements reflect its best estimates and assumptions, actual results could differ from those estimates. The Company’s principal estimates include: | ||
• | Unpaid losses and loss expenses; | |
• | Policy benefits for life and annuity contracts; | |
• | Gross and net premiums written and net premiums earned; | |
• | Recoverability of deferred acquisition costs; | |
• | Recoverability of deferred tax assets; | |
• | Valuation of goodwill and intangible assets; and | |
• | Valuation of certain assets and derivative financial instruments that are measured using significant unobservable inputs. | |
In the opinion of Management, all adjustments (which include normal recurring adjustments) necessary for a fair presentation of results for the interim periods have been made. As the Company’s reinsurance operations are exposed to low-frequency, high-severity risk events, some of which are seasonal, results for certain interim periods may include unusually low loss experience, while results for other interim periods may include significant catastrophic losses. Consequently, the Company’s results for interim periods are not necessarily indicative of results for the full year. These Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2014 | |
Recent Accounting Pronouncements [Abstract] | ' |
Recent Accounting Pronouncements | ' |
3. Recent Accounting Pronouncements | |
In January 2014, the Financial Accounting Standards Board (FASB) issued updated guidance on the accounting for investments in affordable housing projects that qualify for low-income housing tax credits by entities that manage or invest in such projects. The update modifies the conditions that an entity must meet to elect the effective yield or proportional amortization method to account for such investments. The guidance is effective for interim and annual periods beginning after December 15, 2014, with early adoption permitted. The Company does not expect the adoption of this guidance to have a significant impact on its Consolidated Financial Statements or disclosures. | |
In June 2014, the FASB issued updated guidance on the accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The guidance is effective for interim and annual periods beginning after December 15, 2015, with early adoption permitted. The Company does not expect the adoption of this guidance to have a significant impact on its Consolidated Financial Statements or disclosures. |
Fair_Value
Fair Value | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||||||
Fair Value Disclosures [Text Block] | ' | ||||||||||||||||||||||||||||
4. Fair Value | |||||||||||||||||||||||||||||
(a) Fair Value of Financial Instrument Assets | |||||||||||||||||||||||||||||
The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value by maximizing the use of observable inputs and minimizing the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing an asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about what market participants would use in pricing the asset or liability based on the best information available in the circumstances. The level in the hierarchy within which a given fair value measurement falls is determined based on the lowest level input that is significant to the measurement. | |||||||||||||||||||||||||||||
The Company determines the appropriate level in the hierarchy for each financial instrument that it measures at fair value. In determining fair value, the Company uses various valuation approaches, including market, income and cost approaches. The hierarchy is broken down into three levels based on the observability of inputs as follows: | |||||||||||||||||||||||||||||
• | Level 1 inputs—Unadjusted, quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. | ||||||||||||||||||||||||||||
The Company’s financial instruments that it measures at fair value using Level 1 inputs generally include: equities and real estate investment trusts listed on a major exchange, exchange traded funds and exchange traded derivatives, including futures that are actively traded. | |||||||||||||||||||||||||||||
• | Level 2 inputs—Quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in inactive markets and significant directly or indirectly observable inputs, other than quoted prices, used in industry accepted models. | ||||||||||||||||||||||||||||
The Company’s financial instruments that it measures at fair value using Level 2 inputs generally include: U.S. government issued bonds; U.S. government sponsored enterprises bonds; U.S. state, territory and municipal entities bonds; non-U.S. sovereign government, supranational and government related bonds consisting primarily of bonds issued by non-U.S. national governments and their agencies, non-U.S. regional governments and supranational organizations; investment grade and high yield corporate bonds; catastrophe bonds; mortality bonds; asset-backed securities; mortgage-backed securities; certain equities traded on foreign exchanges; certain fixed income mutual funds; foreign exchange forward contracts; over-the-counter derivatives such as foreign currency option contracts, credit default swaps, interest rate swaps and to-be-announced mortgage-backed securities (TBAs). | |||||||||||||||||||||||||||||
• | Level 3 inputs—Unobservable inputs. | ||||||||||||||||||||||||||||
The Company’s financial instruments that it measures at fair value using Level 3 inputs generally include: inactively traded fixed maturities including U.S. state, territory and municipal bonds; privately issued corporate securities; special purpose financing asset-backed bonds; unlisted equities; real estate and certain other mutual fund investments; inactively traded weather derivatives; notes and loan receivables, notes securitizations, annuities and residuals, private equities and longevity and other total return swaps. | |||||||||||||||||||||||||||||
The Company’s policy is to recognize transfers between the hierarchy levels at the beginning of the period. | |||||||||||||||||||||||||||||
The Company’s financial instruments measured at fair value include investments and the segregated investment portfolio underlying the funds held – directly managed account. At September 30, 2014 and December 31, 2013, the Company’s financial instruments measured at fair value were classified between Levels 1, 2 and 3 as follows (in thousands of U.S. dollars): | |||||||||||||||||||||||||||||
30-Sep-14 | Quoted prices in | Significant | Significant | Total | |||||||||||||||||||||||||
active markets for | other observable | unobservable | |||||||||||||||||||||||||||
identical assets | inputs | inputs | |||||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||||||
U.S. government and government sponsored enterprises | $ | — | $ | 2,184,417 | $ | — | $ | 2,184,417 | |||||||||||||||||||||
U.S. states, territories and municipalities | — | 189,755 | 130,743 | 320,498 | |||||||||||||||||||||||||
Non-U.S. sovereign government, supranational and government related | — | 2,209,335 | — | 2,209,335 | |||||||||||||||||||||||||
Corporate | — | 5,706,486 | — | 5,706,486 | |||||||||||||||||||||||||
Asset-backed securities | — | 689,609 | 458,175 | 1,147,784 | |||||||||||||||||||||||||
Residential mortgage-backed securities | — | 2,331,870 | — | 2,331,870 | |||||||||||||||||||||||||
Other mortgage-backed securities | — | 50,239 | — | 50,239 | |||||||||||||||||||||||||
Fixed maturities | $ | — | $ | 13,361,711 | $ | 588,918 | $ | 13,950,629 | |||||||||||||||||||||
Short-term investments | $ | — | $ | 37,016 | $ | — | $ | 37,016 | |||||||||||||||||||||
Equities | |||||||||||||||||||||||||||||
Real estate investment trusts | $ | 213,461 | $ | — | $ | — | $ | 213,461 | |||||||||||||||||||||
Energy | 155,113 | — | — | 155,113 | |||||||||||||||||||||||||
Insurance | 127,740 | — | — | 127,740 | |||||||||||||||||||||||||
Finance | 70,010 | 8,431 | 19,136 | 97,577 | |||||||||||||||||||||||||
Consumer noncyclical | 91,334 | — | — | 91,334 | |||||||||||||||||||||||||
Communications | 72,619 | — | 1,966 | 74,585 | |||||||||||||||||||||||||
Technology | 47,848 | — | 7,318 | 55,166 | |||||||||||||||||||||||||
Industrials | 43,930 | — | — | 43,930 | |||||||||||||||||||||||||
Consumer cyclical | 36,252 | — | — | 36,252 | |||||||||||||||||||||||||
Utilities | 32,012 | — | — | 32,012 | |||||||||||||||||||||||||
Other | 17,372 | — | 7 | 17,379 | |||||||||||||||||||||||||
Mutual funds and exchange traded funds | 48,383 | — | 8,375 | 56,758 | |||||||||||||||||||||||||
Equities | $ | 956,074 | $ | 8,431 | $ | 36,802 | $ | 1,001,307 | |||||||||||||||||||||
Other invested assets | |||||||||||||||||||||||||||||
Derivative assets | |||||||||||||||||||||||||||||
Foreign exchange forward contracts | $ | — | $ | 8,456 | $ | — | $ | 8,456 | |||||||||||||||||||||
Foreign currency option contracts | — | 901 | — | 901 | |||||||||||||||||||||||||
Futures contracts | 3,723 | — | — | 3,723 | |||||||||||||||||||||||||
Total return swaps | — | — | 744 | 744 | |||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||
Notes and loan receivables and notes securitization | — | — | 45,396 | 45,396 | |||||||||||||||||||||||||
Annuities and residuals | — | — | 14,880 | 14,880 | |||||||||||||||||||||||||
Private equities | — | — | 53,019 | 53,019 | |||||||||||||||||||||||||
Derivative liabilities | |||||||||||||||||||||||||||||
Foreign exchange forward contracts | — | (7,904 | ) | — | (7,904 | ) | |||||||||||||||||||||||
Foreign currency option contracts | — | (1,682 | ) | — | (1,682 | ) | |||||||||||||||||||||||
Futures contracts | (37 | ) | — | — | (37 | ) | |||||||||||||||||||||||
Insurance-linked securities | — | — | (375 | ) | (375 | ) | |||||||||||||||||||||||
Total return swaps | — | — | (1,859 | ) | (1,859 | ) | |||||||||||||||||||||||
Interest rate swaps | — | (10,200 | ) | — | (10,200 | ) | |||||||||||||||||||||||
TBAs | — | (508 | ) | — | (508 | ) | |||||||||||||||||||||||
Other invested assets | $ | 3,686 | $ | (10,937 | ) | $ | 111,805 | $ | 104,554 | ||||||||||||||||||||
Funds held – directly managed | |||||||||||||||||||||||||||||
U.S. government and government sponsored enterprises | $ | — | $ | 149,273 | $ | — | $ | 149,273 | |||||||||||||||||||||
U.S. states, territories and municipalities | — | — | 311 | 311 | |||||||||||||||||||||||||
Non-U.S. sovereign government, supranational and government related | — | 123,210 | — | 123,210 | |||||||||||||||||||||||||
Corporate | — | 191,621 | — | 191,621 | |||||||||||||||||||||||||
Other invested assets | — | — | 14,553 | 14,553 | |||||||||||||||||||||||||
Funds held – directly managed | $ | — | $ | 464,104 | $ | 14,864 | $ | 478,968 | |||||||||||||||||||||
Total | $ | 959,760 | $ | 13,860,325 | $ | 752,389 | $ | 15,572,474 | |||||||||||||||||||||
31-Dec-13 | Quoted prices in | Significant other | Significant | Total | |||||||||||||||||||||||||
active markets for | observable | unobservable | |||||||||||||||||||||||||||
identical assets | inputs | inputs | |||||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||||||
U.S. government and government sponsored enterprises | $ | — | $ | 1,623,859 | $ | — | $ | 1,623,859 | |||||||||||||||||||||
U.S. states, territories and municipalities | — | 16,207 | 108,380 | 124,587 | |||||||||||||||||||||||||
Non-U.S. sovereign government, supranational and government related | — | 2,353,699 | — | 2,353,699 | |||||||||||||||||||||||||
Corporate | — | 6,048,663 | — | 6,048,663 | |||||||||||||||||||||||||
Asset-backed securities | — | 691,654 | 446,577 | 1,138,231 | |||||||||||||||||||||||||
Residential mortgage-backed securities | — | 2,268,517 | — | 2,268,517 | |||||||||||||||||||||||||
Other mortgage-backed securities | — | 35,747 | — | 35,747 | |||||||||||||||||||||||||
Fixed maturities | $ | — | $ | 13,038,346 | $ | 554,957 | $ | 13,593,303 | |||||||||||||||||||||
Short-term investments | $ | — | $ | 13,546 | $ | — | $ | 13,546 | |||||||||||||||||||||
Equities | |||||||||||||||||||||||||||||
Real estate investment trusts | $ | 175,796 | $ | — | $ | — | $ | 175,796 | |||||||||||||||||||||
Energy | 159,509 | — | — | 159,509 | |||||||||||||||||||||||||
Insurance | 144,020 | — | — | 144,020 | |||||||||||||||||||||||||
Finance | 108,944 | 9,556 | 20,207 | 138,707 | |||||||||||||||||||||||||
Consumer noncyclical | 108,663 | — | — | 108,663 | |||||||||||||||||||||||||
Communications | 70,792 | — | 2,199 | 72,991 | |||||||||||||||||||||||||
Technology | 53,768 | — | 7,752 | 61,520 | |||||||||||||||||||||||||
Industrials | 47,677 | — | — | 47,677 | |||||||||||||||||||||||||
Consumer cyclical | 45,915 | — | — | 45,915 | |||||||||||||||||||||||||
Utilities | 37,151 | — | — | 37,151 | |||||||||||||||||||||||||
Other | 19,993 | — | — | 19,993 | |||||||||||||||||||||||||
Mutual funds and exchange traded funds | 61,902 | 139,322 | 7,887 | 209,111 | |||||||||||||||||||||||||
Equities | $ | 1,034,130 | $ | 148,878 | $ | 38,045 | $ | 1,221,053 | |||||||||||||||||||||
Other invested assets | |||||||||||||||||||||||||||||
Derivative assets | |||||||||||||||||||||||||||||
Foreign exchange forward contracts | $ | — | $ | 1,249 | $ | — | $ | 1,249 | |||||||||||||||||||||
Futures contracts | 41,031 | — | — | 41,031 | |||||||||||||||||||||||||
Total return swaps | — | — | 79 | 79 | |||||||||||||||||||||||||
Interest rate swaps | — | 2,147 | — | 2,147 | |||||||||||||||||||||||||
TBAs | — | 2 | — | 2 | |||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||
Notes and loan receivables and notes securitization | — | — | 41,446 | 41,446 | |||||||||||||||||||||||||
Annuities and residuals | — | — | 24,064 | 24,064 | |||||||||||||||||||||||||
Private equities | — | — | 39,131 | 39,131 | |||||||||||||||||||||||||
Derivative liabilities | |||||||||||||||||||||||||||||
Foreign exchange forward contracts | — | (8,648 | ) | — | (8,648 | ) | |||||||||||||||||||||||
Foreign currency option contracts | — | (535 | ) | — | (535 | ) | |||||||||||||||||||||||
Credit default swaps (protection purchased) | — | (71 | ) | — | (71 | ) | |||||||||||||||||||||||
Insurance-linked securities | — | — | (268 | ) | (268 | ) | |||||||||||||||||||||||
Total return swaps | — | — | (599 | ) | (599 | ) | |||||||||||||||||||||||
Interest rate swaps | — | (2,558 | ) | — | (2,558 | ) | |||||||||||||||||||||||
TBAs | — | (1,331 | ) | — | (1,331 | ) | |||||||||||||||||||||||
Other invested assets | $ | 41,031 | $ | (9,745 | ) | $ | 103,853 | $ | 135,139 | ||||||||||||||||||||
Funds held – directly managed | |||||||||||||||||||||||||||||
U.S. government and government sponsored enterprises | $ | — | $ | 157,296 | $ | — | $ | 157,296 | |||||||||||||||||||||
U.S. states, territories and municipalities | — | — | 286 | 286 | |||||||||||||||||||||||||
Non-U.S. sovereign government, supranational and government related | — | 137,186 | — | 137,186 | |||||||||||||||||||||||||
Corporate | — | 248,947 | — | 248,947 | |||||||||||||||||||||||||
Short-term investments | — | 2,426 | — | 2,426 | |||||||||||||||||||||||||
Other invested assets | — | — | 15,165 | 15,165 | |||||||||||||||||||||||||
Funds held – directly managed | $ | — | $ | 545,855 | $ | 15,451 | $ | 561,306 | |||||||||||||||||||||
Total | $ | 1,075,161 | $ | 13,736,880 | $ | 712,306 | $ | 15,524,347 | |||||||||||||||||||||
At September 30, 2014 and December 31, 2013, the aggregate carrying amounts of items included in Other invested assets that the Company did not measure at fair value were $194.7 million and $185.8 million, respectively, which related to the Company’s investments that are accounted for using the cost method of accounting or equity method of accounting. | |||||||||||||||||||||||||||||
In addition to the investments underlying the funds held – directly managed account held at fair value of $479.0 million and $561.3 million at September 30, 2014 and December 31, 2013, respectively, the funds held – directly managed account also included cash and cash equivalents, carried at fair value, of $53.1 million and $84.8 million, respectively, and accrued investment income of $6.3 million and $6.7 million, respectively. At September 30, 2014 and December 31, 2013, the aggregate carrying amounts of items included in the funds held – directly managed account that the Company did not measure at fair value were $112.0 million and $133.0 million, respectively, which primarily related to other assets and liabilities held by Colisée Re related to the underlying business, which are carried at cost (see Note 5 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013). | |||||||||||||||||||||||||||||
At September 30, 2014 and December 31, 2013, substantially all of the accrued investment income in the Condensed Consolidated Balance Sheets relate to the Company’s investments and the investments underlying the funds held – directly managed account for which the fair value option was elected. | |||||||||||||||||||||||||||||
During the three months and nine months ended September 30, 2014 and 2013, there were no transfers between Level 1 and Level 2. | |||||||||||||||||||||||||||||
Disclosures about the fair value of financial instruments that the Company does not measure at fair value exclude insurance contracts and certain other financial instruments. At September 30, 2014 and December 31, 2013, the fair values of financial instrument assets recorded in the Condensed Consolidated Balance Sheets not described above, approximate their carrying values. | |||||||||||||||||||||||||||||
The reconciliations of the beginning and ending balances for all financial instruments measured at fair value using Level 3 inputs for the three months ended September 30, 2014 and 2013, were as follows (in thousands of U.S. dollars): | |||||||||||||||||||||||||||||
For the three months ended September 30, 2014 | Balance at | Realized and | Purchases | Settlements | Net | Balance | Change in | ||||||||||||||||||||||
beginning | unrealized | and | and | transfers | at end | unrealized | |||||||||||||||||||||||
of period | investment | issuances | sales | into/ | of period | investment | |||||||||||||||||||||||
gains (losses) | (out of) | gains (losses) | |||||||||||||||||||||||||||
included in | Level 3 | relating to | |||||||||||||||||||||||||||
net income | assets held at | ||||||||||||||||||||||||||||
end of period | |||||||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||||||
U.S. states, territories and municipalities | $ | 123,617 | $ | 3,636 | $ | 5,695 | $ | (2,205 | ) | $ | — | $ | 130,743 | $ | 3,747 | ||||||||||||||
Asset-backed securities | 489,106 | (4,439 | ) | 11,085 | (37,577 | ) | — | 458,175 | (4,403 | ) | |||||||||||||||||||
Fixed maturities | $ | 612,723 | $ | (803 | ) | $ | 16,780 | $ | (39,782 | ) | $ | — | $ | 588,918 | $ | (656 | ) | ||||||||||||
Equities | |||||||||||||||||||||||||||||
Finance | $ | 19,564 | $ | (428 | ) | $ | — | $ | — | $ | — | $ | 19,136 | $ | (428 | ) | |||||||||||||
Communications | 2,067 | (101 | ) | — | — | — | 1,966 | (101 | ) | ||||||||||||||||||||
Technology | 7,645 | (327 | ) | — | — | — | 7,318 | (327 | ) | ||||||||||||||||||||
Other | 7 | — | — | — | — | 7 | — | ||||||||||||||||||||||
Mutual funds and exchange traded funds | 8,246 | 129 | — | — | — | 8,375 | 129 | ||||||||||||||||||||||
Equities | $ | 37,529 | $ | (727 | ) | $ | — | $ | — | $ | — | $ | 36,802 | $ | (727 | ) | |||||||||||||
Other invested assets | |||||||||||||||||||||||||||||
Derivatives, net | $ | (852 | ) | $ | (1,255 | ) | $ | 57 | $ | 560 | $ | — | $ | (1,490 | ) | $ | (1,255 | ) | |||||||||||
Notes and loan receivables and notes securitization | 38,603 | (1,379 | ) | 29,286 | (21,114 | ) | — | 45,396 | (1,379 | ) | |||||||||||||||||||
Annuities and residuals | 17,134 | (475 | ) | — | (1,779 | ) | — | 14,880 | (474 | ) | |||||||||||||||||||
Private equities | 54,928 | (1,348 | ) | 248 | (809 | ) | — | 53,019 | (1,348 | ) | |||||||||||||||||||
Other invested assets | $ | 109,813 | $ | (4,457 | ) | $ | 29,591 | $ | (23,142 | ) | $ | — | $ | 111,805 | $ | (4,456 | ) | ||||||||||||
Funds held – directly managed | |||||||||||||||||||||||||||||
U.S. states, territories and municipalities | $ | 305 | $ | 6 | $ | — | $ | — | $ | — | $ | 311 | $ | 6 | |||||||||||||||
Other invested assets | 15,800 | (1,467 | ) | 220 | — | — | 14,553 | (1,467 | ) | ||||||||||||||||||||
Funds held – directly managed | $ | 16,105 | $ | (1,461 | ) | $ | 220 | $ | — | $ | — | $ | 14,864 | $ | (1,461 | ) | |||||||||||||
Total | $ | 776,170 | $ | (7,448 | ) | $ | 46,591 | $ | (62,924 | ) | $ | — | $ | 752,389 | $ | (7,300 | ) | ||||||||||||
For the three months ended September 30, 2013 | Balance at | Realized and | Purchases | Settlements | Net | Balance | Change in | ||||||||||||||||||||||
beginning | unrealized | and | and | transfers | at end of | unrealized | |||||||||||||||||||||||
of period | investment | issuances | sales (1) | into/(out of) | period | investment | |||||||||||||||||||||||
gains (losses) | Level 3 | gains (losses) | |||||||||||||||||||||||||||
included in | relating to | ||||||||||||||||||||||||||||
net income | assets held at | ||||||||||||||||||||||||||||
end of period | |||||||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||||||
U.S. states, territories and municipalities | $ | 219,163 | $ | 8,431 | $ | 61,706 | $ | (165 | ) | $ | — | $ | 289,135 | $ | 8,431 | ||||||||||||||
Corporate | 99,896 | (269 | ) | — | — | — | 99,627 | (269 | ) | ||||||||||||||||||||
Asset-backed securities | 426,288 | 4,800 | 86,442 | (63,777 | ) | — | 453,753 | (3,043 | ) | ||||||||||||||||||||
Fixed maturities | $ | 745,347 | $ | 12,962 | $ | 148,148 | $ | (63,942 | ) | $ | — | $ | 842,515 | $ | 5,119 | ||||||||||||||
Equities | |||||||||||||||||||||||||||||
Finance | $ | 13,000 | $ | 1,285 | $ | — | $ | — | $ | — | $ | 14,285 | $ | 1,285 | |||||||||||||||
Communications | 2,040 | 103 | — | — | — | 2,143 | 103 | ||||||||||||||||||||||
Technology | 8,012 | 1,138 | — | — | — | 9,150 | 1,138 | ||||||||||||||||||||||
Mutual funds and exchange traded funds | 7,549 | 125 | — | — | — | 7,674 | 125 | ||||||||||||||||||||||
Equities | $ | 30,601 | $ | 2,651 | $ | — | $ | — | $ | — | $ | 33,252 | $ | 2,651 | |||||||||||||||
Other invested assets | |||||||||||||||||||||||||||||
Derivatives, net | $ | 2,333 | $ | (1,885 | ) | $ | — | $ | (1,395 | ) | $ | — | $ | (947 | ) | $ | (140 | ) | |||||||||||
Notes and loan receivables and notes securitization | 44,224 | 3,250 | 1,248 | (941 | ) | — | 47,781 | 3,250 | |||||||||||||||||||||
Annuities and residuals | 30,555 | 413 | — | (4,029 | ) | — | 26,939 | 166 | |||||||||||||||||||||
Private equities | 21,100 | (299 | ) | 1,077 | — | — | 21,878 | (299 | ) | ||||||||||||||||||||
Other invested assets | $ | 98,212 | $ | 1,479 | $ | 2,325 | $ | (6,365 | ) | $ | — | $ | 95,651 | $ | 2,977 | ||||||||||||||
Funds held – directly managed | |||||||||||||||||||||||||||||
U.S. states, territories and municipalities | $ | 337 | $ | (39 | ) | $ | — | $ | — | $ | — | $ | 298 | $ | (39 | ) | |||||||||||||
Other invested assets | 15,207 | 1,045 | — | (686 | ) | — | 15,566 | 1,045 | |||||||||||||||||||||
Funds held – directly managed | $ | 15,544 | $ | 1,006 | $ | — | $ | (686 | ) | $ | — | $ | 15,864 | $ | 1,006 | ||||||||||||||
Total | $ | 889,704 | $ | 18,098 | $ | 150,473 | $ | (70,993 | ) | $ | — | $ | 987,282 | $ | 11,753 | ||||||||||||||
-1 | Settlements and sales of asset-backed securities and derivatives include sales of $13.7 million and $1.4 million, respectively. | ||||||||||||||||||||||||||||
The reconciliations of the beginning and ending balances for all financial instruments measured at fair value using Level 3 inputs for the nine months ended September 30, 2014 and 2013, were as follows (in thousands of U.S. dollars): | |||||||||||||||||||||||||||||
For the nine months ended September 30, 2014 | Balance at | Realized and | Purchases | Settlements | Net | Balance | Change in | ||||||||||||||||||||||
beginning | unrealized | and | and | transfers | at end of | unrealized | |||||||||||||||||||||||
of period | investment | issuances (1) | sales | into/(out of) | period | investment gains (losses) | |||||||||||||||||||||||
gains (losses) | Level 3 | relating to | |||||||||||||||||||||||||||
included in | assets held at | ||||||||||||||||||||||||||||
net income | end of period | ||||||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||||||
U.S. states, territories and municipalities | $ | 108,380 | $ | 10,488 | $ | 14,220 | $ | (2,345 | ) | $ | — | $ | 130,743 | $ | 10,483 | ||||||||||||||
Asset-backed securities | 446,577 | 4,698 | 138,538 | (131,638 | ) | — | 458,175 | 4,993 | |||||||||||||||||||||
Fixed maturities | $ | 554,957 | $ | 15,186 | $ | 152,758 | $ | (133,983 | ) | $ | — | $ | 588,918 | $ | 15,476 | ||||||||||||||
Equities | |||||||||||||||||||||||||||||
Finance | $ | 20,207 | $ | (1,071 | ) | $ | — | $ | — | $ | — | $ | 19,136 | $ | (1,071 | ) | |||||||||||||
Communications | 2,199 | (233 | ) | — | — | — | 1,966 | (233 | ) | ||||||||||||||||||||
Technology | 7,752 | (434 | ) | — | — | — | 7,318 | (434 | ) | ||||||||||||||||||||
Other | — | (1 | ) | 8 | — | — | 7 | (1 | ) | ||||||||||||||||||||
Mutual funds and exchange traded funds | 7,887 | 488 | — | — | — | 8,375 | 488 | ||||||||||||||||||||||
Equities | $ | 38,045 | $ | (1,251 | ) | $ | 8 | $ | — | $ | — | $ | 36,802 | $ | (1,251 | ) | |||||||||||||
Other invested assets | |||||||||||||||||||||||||||||
Derivatives, net | $ | (788 | ) | $ | (391 | ) | $ | (871 | ) | $ | 560 | $ | — | $ | (1,490 | ) | $ | (391 | ) | ||||||||||
Notes and loan receivables and notes securitization | 41,446 | 2,188 | 32,202 | (30,440 | ) | — | 45,396 | 3,707 | |||||||||||||||||||||
Annuities and residuals | 24,064 | (84 | ) | — | (9,100 | ) | — | 14,880 | (44 | ) | |||||||||||||||||||
Private equities | 39,131 | (3,179 | ) | 20,792 | (3,725 | ) | — | 53,019 | (3,210 | ) | |||||||||||||||||||
Other invested assets | $ | 103,853 | $ | (1,466 | ) | $ | 52,123 | $ | (42,705 | ) | $ | — | $ | 111,805 | $ | 62 | |||||||||||||
Funds held – directly managed | |||||||||||||||||||||||||||||
U.S. states, territories and municipalities | $ | 286 | $ | 25 | $ | — | $ | — | $ | — | $ | 311 | $ | 25 | |||||||||||||||
Other invested assets | 15,165 | (1,087 | ) | 475 | — | — | 14,553 | (1,087 | ) | ||||||||||||||||||||
Funds held – directly managed | $ | 15,451 | $ | (1,062 | ) | $ | 475 | $ | — | $ | — | $ | 14,864 | $ | (1,062 | ) | |||||||||||||
Total | $ | 712,306 | $ | 11,407 | $ | 205,364 | $ | (176,688 | ) | $ | — | $ | 752,389 | $ | 13,225 | ||||||||||||||
-1 | Purchases and issuances of derivatives include issuances of $0.9 million. | ||||||||||||||||||||||||||||
For the nine months ended September 30, 2013 | Balance at | Realized and | Purchases | Settlements | Net | Balance | Change in | ||||||||||||||||||||||
beginning | unrealized | and | and | transfers | at end of | unrealized | |||||||||||||||||||||||
of period | investment | issuances (1) | sales (2) | into/(out of) | period | investment | |||||||||||||||||||||||
(losses) gains | Level 3 | (losses) gains relating to | |||||||||||||||||||||||||||
included in | assets held at | ||||||||||||||||||||||||||||
net income | end of period | ||||||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||||||
U.S. states, territories and municipalities | $ | 233,235 | $ | (5,427 | ) | $ | 61,706 | $ | (379 | ) | $ | — | $ | 289,135 | $ | (5,427 | ) | ||||||||||||
Corporate | 100,904 | (1,277 | ) | — | — | — | 99,627 | (1,277 | ) | ||||||||||||||||||||
Asset-backed securities | 323,134 | 478 | 241,607 | (111,466 | ) | — | 453,753 | (7,182 | ) | ||||||||||||||||||||
Fixed maturities | $ | 657,273 | $ | (6,226 | ) | $ | 303,313 | $ | (111,845 | ) | $ | — | $ | 842,515 | $ | (13,886 | ) | ||||||||||||
Equities | |||||||||||||||||||||||||||||
Finance | $ | 13,477 | $ | 808 | $ | — | $ | — | $ | — | $ | 14,285 | $ | 808 | |||||||||||||||
Communications | — | 103 | 2,040 | — | — | 2,143 | 103 | ||||||||||||||||||||||
Technology | 6,987 | 2,163 | — | — | — | 9,150 | 2,163 | ||||||||||||||||||||||
Mutual funds and exchange traded funds | 7,264 | 410 | — | — | — | 7,674 | 410 | ||||||||||||||||||||||
Equities | $ | 27,728 | $ | 3,484 | $ | 2,040 | $ | — | $ | — | $ | 33,252 | $ | 3,484 | |||||||||||||||
Other invested assets | |||||||||||||||||||||||||||||
Derivatives, net | $ | 3,911 | $ | (6,084 | ) | $ | 121 | $ | 1,105 | $ | — | $ | (947 | ) | $ | (349 | ) | ||||||||||||
Notes and loan receivables and notes securitization | 34,902 | 1,867 | 14,598 | (3,586 | ) | — | 47,781 | 1,867 | |||||||||||||||||||||
Annuities and residuals | 46,882 | 506 | — | (20,449 | ) | — | 26,939 | 481 | |||||||||||||||||||||
Private equities | 1,404 | (3,811 | ) | 24,285 | — | — | 21,878 | (3,811 | ) | ||||||||||||||||||||
Other invested assets | $ | 87,099 | $ | (7,522 | ) | $ | 39,004 | $ | (22,930 | ) | $ | — | $ | 95,651 | $ | (1,812 | ) | ||||||||||||
Funds held – directly managed | |||||||||||||||||||||||||||||
U.S. states, territories and municipalities | $ | 345 | $ | (47 | ) | $ | — | $ | — | $ | — | $ | 298 | $ | (47 | ) | |||||||||||||
Other invested assets | 17,976 | (1,653 | ) | — | (757 | ) | — | 15,566 | (589 | ) | |||||||||||||||||||
Funds held – directly managed | $ | 18,321 | $ | (1,700 | ) | $ | — | $ | (757 | ) | $ | — | $ | 15,864 | $ | (636 | ) | ||||||||||||
Total | $ | 790,421 | $ | (11,964 | ) | $ | 344,357 | $ | (135,532 | ) | $ | — | $ | 987,282 | $ | (12,850 | ) | ||||||||||||
-1 | Purchases and issuances of derivatives include issuances of $0.8 million. | ||||||||||||||||||||||||||||
-2 | Settlements and sales of asset-backed securities, derivatives and annuities and residuals include sales of $13.7 million, $1.4 million and $6.3 million, respectively. | ||||||||||||||||||||||||||||
The significant unobservable inputs used in the valuation of financial instruments measured at fair value using Level 3 inputs at September 30, 2014 and December 31, 2013 were as follows (fair value in thousands of U.S. dollars): | |||||||||||||||||||||||||||||
30-Sep-14 | Fair value | Valuation techniques | Unobservable inputs | Range | |||||||||||||||||||||||||
(Weighted average) | |||||||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||||||
U.S. states, territories and municipalities | $ | 130,743 | Discounted cash flow | Credit spreads | 2.4% – 10.0% (4.7%) | ||||||||||||||||||||||||
Asset-backed securities – other | 458,175 | Discounted cash flow | Credit spreads | 4.0% – 12.0% (6.9%) | |||||||||||||||||||||||||
Equities | |||||||||||||||||||||||||||||
Finance | 13,582 | Weighted market comparables | Net income multiple | 19.0 (19.0) | |||||||||||||||||||||||||
Tangible book value multiple | 1.3 (1.3) | ||||||||||||||||||||||||||||
Liquidity discount | 25.0% (25.0%) | ||||||||||||||||||||||||||||
Comparable return | -1.4% (-1.4%) | ||||||||||||||||||||||||||||
Finance | 5,554 | Profitability analysis | Projected return on equity | 14.0% (14.0%) | |||||||||||||||||||||||||
Communications | 1,966 | Weighted market comparables | Adjusted earnings multiple | 9.4 (9.4) | |||||||||||||||||||||||||
Comparable return | -10.6% (-10.6%) | ||||||||||||||||||||||||||||
Technology | 7,318 | Weighted market comparables | Revenue multiple | 1.4 (1.4) | |||||||||||||||||||||||||
Adjusted earnings multiple | 8.3 (8.3) | ||||||||||||||||||||||||||||
Other invested assets | |||||||||||||||||||||||||||||
Total return swaps | (1,115 | ) | Discounted cash flow | Credit spreads | 3.5% – 18.5% (14.3%) | ||||||||||||||||||||||||
Notes and loan receivables | 9,589 | Discounted cash flow | Credit spreads | 6.7% (6.7%) | |||||||||||||||||||||||||
Notes and loan receivables | 14,879 | Discounted cash flow | Credit spreads | 17.5% (17.5%) | |||||||||||||||||||||||||
Gross revenue/fair value | 1.3 – 1.6 (1.6) | ||||||||||||||||||||||||||||
Notes securitization | 20,928 | Discounted cash flow | Credit spreads | 3.5% – 6.6% (6.3%) | |||||||||||||||||||||||||
Annuities and residuals | 14,880 | Discounted cash flow | Credit spreads | 5.3% – 8.1% (7.0%) | |||||||||||||||||||||||||
Prepayment speed | 0% – 15.0% (4.8%) | ||||||||||||||||||||||||||||
Constant default rate | 0.3% – 23.0% (7.6%) | ||||||||||||||||||||||||||||
Private equity – direct | 9,582 | Discounted cash flow and weighted market comparables | Net income multiple | 8.3 (8.3) | |||||||||||||||||||||||||
Tangible book value multiple | 1.6 (1.6) | ||||||||||||||||||||||||||||
Recoverability of intangible assets | 0% (0%) | ||||||||||||||||||||||||||||
Private equity funds | 14,422 | Lag reported market value | Net asset value, as reported | 100.0% (100.0%) | |||||||||||||||||||||||||
Market adjustments | -4.6% – 1.9% (-2.3%) | ||||||||||||||||||||||||||||
Private equity – other | 29,015 | Discounted cash flow | Effective yield | 5.8% (5.8%) | |||||||||||||||||||||||||
Funds held – directly managed | |||||||||||||||||||||||||||||
Other invested assets | 14,553 | Lag reported market value | Net asset value, as reported | 100.0% (100.0%) | |||||||||||||||||||||||||
Market adjustments | -12.9% – 0% (-12.1%) | ||||||||||||||||||||||||||||
December 31, 2013 | Fair value | Valuation techniques | Unobservable inputs | Range | |||||||||||||||||||||||||
(Weighted average) | |||||||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||||||
U.S. states, territories and municipalities | $ | 108,380 | Discounted cash flow | Credit spreads | 2.9% – 9.9% (5.3%) | ||||||||||||||||||||||||
Asset-backed securities – interest only | 21 | Discounted cash flow | Credit spreads | 5.5% – 10.7% (8.8%) | |||||||||||||||||||||||||
Asset-backed securities – other | 446,556 | Discounted cash flow | Credit spreads | 4.0% – 12.2% (7.1%) | |||||||||||||||||||||||||
Equities | |||||||||||||||||||||||||||||
Finance | 15,483 | Weighted market comparables | Net income multiple | 14.6 (14.6) | |||||||||||||||||||||||||
Tangible book value multiple | 1.1 (1.1) | ||||||||||||||||||||||||||||
Liquidity discount | 25.0% (25.0%) | ||||||||||||||||||||||||||||
Comparable return | 8.5% (8.5%) | ||||||||||||||||||||||||||||
Finance | 4,724 | Profitability analysis | Projected return on equity | 14.0% (14.0%) | |||||||||||||||||||||||||
Communications | 2,199 | Weighted market comparables | Adjusted earnings multiple | 9.4 (9.4) | |||||||||||||||||||||||||
Comparable return | 0% (0%) | ||||||||||||||||||||||||||||
Technology | 7,752 | Weighted market comparables | Revenue multiple | 0.9 (0.9) | |||||||||||||||||||||||||
Adjusted earnings multiple | 4.4 (4.4) | ||||||||||||||||||||||||||||
Other invested assets | |||||||||||||||||||||||||||||
Total return swaps | (520 | ) | Discounted cash flow | Credit spreads | 2.8% – 18.9% (17.0%) | ||||||||||||||||||||||||
Notes and loan receivables | 21,280 | Discounted cash flow | Credit spreads | 17.5% (17.5%) | |||||||||||||||||||||||||
Gross revenue/fair value | 1.5 (1.5) | ||||||||||||||||||||||||||||
Notes securitization | 20,166 | Discounted cash flow | Credit spreads | 6.2% (6.2%) | |||||||||||||||||||||||||
Annuities and residuals | 24,064 | Discounted cash flow | Credit spreads | 4.0% – 7.9% (5.8%) | |||||||||||||||||||||||||
Prepayment speed | 0% – 15.0% (6.4%) | ||||||||||||||||||||||||||||
Constant default rate | 0.3% – 35.0% (12.4%) | ||||||||||||||||||||||||||||
Private equity – direct | 11,742 | Discounted cash flow and weighted market comparables | Net income multiple | 8.3 (8.3) | |||||||||||||||||||||||||
Tangible book value multiple | 1.6 (1.6) | ||||||||||||||||||||||||||||
Recoverability of intangible assets | 0% (0%) | ||||||||||||||||||||||||||||
Private equity funds | 8,993 | Lag reported market value | Net asset value, as reported | 100.0% (100.0%) | |||||||||||||||||||||||||
Market adjustments | 1.8% – 9.8% (8.3%) | ||||||||||||||||||||||||||||
Private equity – other | 18,396 | Discounted cash flow | Credit spreads | 3.8% (3.8%) | |||||||||||||||||||||||||
Funds held – directly managed | |||||||||||||||||||||||||||||
Other invested assets | 15,165 | Lag reported market value | Net asset value, as reported | 100.0% (100.0%) | |||||||||||||||||||||||||
Market adjustments | -22.9% – 0% (-15.5%) | ||||||||||||||||||||||||||||
The tables above do not include financial instruments that are measured using unobservable inputs (Level 3) where the unobservable inputs were obtained from external sources and used without adjustment. These financial instruments include mutual fund investments (included within equities). | |||||||||||||||||||||||||||||
The Company has established a Valuation Committee which is responsible for determining the Company’s invested asset valuation policy and related procedures, for reviewing significant changes in the fair value measurements of securities classified as Level 3 from period to period, and for reviewing in accordance with the invested asset valuation policy an independent internal peer analysis that is performed on the fair value measurements of significant securities that are classified as Level 3. The Valuation Committee is comprised of members of the Company’s senior management team and meets on a quarterly basis. The Company’s invested asset valuation policy is monitored by the Company’s Audit Committee of the Board of Directors (Board) and approved annually by the Company’s Risk and Finance Committee of the Board. | |||||||||||||||||||||||||||||
Changes in the fair value of the Company’s financial instruments subject to the fair value option during the three months and nine months ended September 30, 2014 and 2013 were as follows (in thousands of U.S. dollars): | |||||||||||||||||||||||||||||
For the three months ended | For the nine months ended | ||||||||||||||||||||||||||||
30-Sep-14 | 30-Sep-13 | 30-Sep-14 | 30-Sep-13 | ||||||||||||||||||||||||||
Fixed maturities and short-term investments | $ | (75,537 | ) | $ | 10,259 | $ | 167,696 | $ | (457,168 | ) | |||||||||||||||||||
Equities | (31,093 | ) | (891 | ) | (14,447 | ) | (8,540 | ) | |||||||||||||||||||||
Other invested assets | (3,497 | ) | 3,021 | 60 | (4,047 | ) | |||||||||||||||||||||||
Funds held – directly managed | (540 | ) | (907 | ) | 937 | (22,322 | ) | ||||||||||||||||||||||
Total | $ | (110,667 | ) | $ | 11,482 | $ | 154,246 | $ | (492,077 | ) | |||||||||||||||||||
Substantially all of the above changes in fair value are included in the Condensed Consolidated Statements of Operations under the caption Net realized and unrealized investment (losses) gains. | |||||||||||||||||||||||||||||
The following methods and assumptions were used by the Company in estimating the fair value of each class of financial instrument recorded in the Condensed Consolidated Balance Sheets. There have been no material changes in the Company’s valuation techniques during the periods presented. | |||||||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||||||
• | U.S. government and government sponsored enterprises—U.S. government and government sponsored enterprises securities consist primarily of bonds issued by the U.S. Treasury and corporate debt securities issued by government sponsored enterprises and federally owned or established corporations. These securities are generally priced by independent pricing services. The independent pricing services may use actual transaction prices for securities that have been actively traded. For securities that have not been actively traded, each pricing source has its own proprietary method to determine the fair value, which may incorporate option adjusted spreads (OAS), interest rate data and market news. The Company generally classifies these securities in Level 2. | ||||||||||||||||||||||||||||
• | U.S. states, territories and municipalities—U.S. states, territories and municipalities securities consist primarily of bonds issued by U.S. states, territories and municipalities and the Federal Home Loan Mortgage Corporation. These securities are generally priced by independent pricing services using the techniques described for U.S. government and government sponsored enterprises above. The Company generally classifies these securities in Level 2. Certain of the bonds that are issued by municipal housing authorities and the Federal Home Loan Mortgage Corporation are not actively traded and are priced based on internal models using unobservable inputs. Accordingly, the Company classifies these securities in Level 3. The significant unobservable input used in the fair value measurement of these U.S. states, territories and municipalities securities classified as Level 3 is credit spreads. A significant increase (decrease) in credit spreads in isolation could result in a significantly lower (higher) fair value measurement. | ||||||||||||||||||||||||||||
• | Non-U.S. sovereign government, supranational and government related—Non-U.S. sovereign government, supranational and government related securities consist primarily of bonds issued by non-U.S. national governments and their agencies, non-U.S. regional governments and supranational organizations. These securities are generally priced by independent pricing services using the techniques described for U.S. government and government sponsored enterprises above. The Company generally classifies these securities in Level 2. | ||||||||||||||||||||||||||||
• | Corporate—Corporate securities consist primarily of bonds issued by U.S. and foreign corporations covering a variety of industries and issuing countries. These securities are generally priced by independent pricing services and brokers. The pricing provider incorporates information including credit spreads, interest rate data and market news into the valuation of each security. The Company generally classifies these securities in Level 2. When a corporate security is inactively traded or the valuation model uses unobservable inputs, the Company classifies the security in Level 3. | ||||||||||||||||||||||||||||
• | Asset-backed securities—Asset-backed securities primarily consist of bonds issued by U.S. and foreign corporations that are predominantly backed by student loans, automobile loans, credit card receivables, equipment leases, and special purpose financing. With the exception of special purpose financing, these asset-backed securities are generally priced by independent pricing services and brokers. The pricing provider applies dealer quotes and other available trade information, prepayment speeds, yield curves and credit spreads to the valuation. The Company generally classifies these securities in Level 2. Special purpose financing securities are generally inactively traded and are priced based on valuation models using unobservable inputs. The Company generally classifies these securities in Level 3. The significant unobservable input used in the fair value measurement of these asset-backed securities classified as Level 3 is credit spreads. A significant increase (decrease) in credit spreads in isolation could result in a significantly lower (higher) fair value measurement. | ||||||||||||||||||||||||||||
• | Residential mortgage-backed securities—Residential mortgage-backed securities primarily consist of bonds issued by the Government National Mortgage Association, the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, as well as private, non-agency issuers. These residential mortgage-backed securities are generally priced by independent pricing services and brokers. When current market trades are not available, the pricing provider or the Company will employ proprietary models with observable inputs including other trade information, prepayment speeds, yield curves and credit spreads. The Company generally classifies these securities in Level 2. | ||||||||||||||||||||||||||||
• | Other mortgage-backed securities—Other mortgage-backed securities primarily consist of commercial mortgage-backed securities. These securities are generally priced by independent pricing services and brokers. The pricing provider applies dealer quotes and other available trade information, prepayment speeds, yield curves and credit spreads to the valuation. The Company generally classifies these securities in Level 2. | ||||||||||||||||||||||||||||
In general, the methods employed by the independent pricing services to determine the fair value of the securities that have not been actively traded primarily involve the use of “matrix pricing” in which the independent pricing source applies the credit spread for a comparable security that has traded recently to the current yield curve to determine a reasonable fair value. The Company uses a pricing service ranking to consistently select the most appropriate pricing service in instances where it receives multiple quotes on the same security. When fair values are unavailable from these independent pricing sources, quotes are obtained directly from broker-dealers who are active in the corresponding markets. Most of the Company’s fixed maturities are priced from the pricing services or dealer quotes. The Company will typically not make adjustments to prices received from pricing services or dealer quotes; however, in instances where the quoted external price for a security uses significant unobservable inputs, the Company will classify that security as Level 3. The methods used to develop and substantiate the unobservable inputs used are based on the Company’s valuation policy and are dependent upon the facts and circumstances surrounding the individual investments which are generally transaction specific. The Company’s inactively traded fixed maturities are classified as Level 3. For all fixed maturity investments, the bid price is used for estimating fair value. | |||||||||||||||||||||||||||||
To validate prices, the Company compares the fair value estimates to its knowledge of the current market and will investigate prices that it considers not to be representative of fair value. The Company also reviews an internally generated fixed maturity price validation report which converts prices received for fixed maturity investments from the independent pricing sources and from broker-dealers quotes and plots OAS and duration on a sector and rating basis. The OAS is calculated using established algorithms developed by an independent risk analytics platform vendor. The OAS on the fixed maturity price validation report are compared for securities in a similar sector and having a similar rating, and outliers are identified and investigated for price reasonableness. In addition, the Company completes quantitative analyses to compare the performance of each fixed maturity investment portfolio to the performance of an appropriate benchmark, with significant differences identified and investigated. | |||||||||||||||||||||||||||||
Short-term investments | |||||||||||||||||||||||||||||
Short-term investments are valued in a manner similar to the Company’s fixed maturity investments and are generally classified in Level 2. | |||||||||||||||||||||||||||||
Equities | |||||||||||||||||||||||||||||
Equity securities include U.S. and foreign common and preferred stocks, real estate investment trusts, mutual funds and exchange traded funds. Equities, real estate investment trusts and exchange traded funds are generally classified in Level 1 as the Company uses prices received from independent pricing sources based on quoted prices in active markets. Equities classified as Level 2 are generally mutual funds invested in fixed income securities, where the net asset value of the fund is provided on a daily basis, and common stocks traded in inactive markets. Equities classified as Level 3 are generally mutual funds invested in securities other than the common stock of publicly traded companies, where the net asset value is not provided on a daily basis, and inactively traded common stocks. The significant unobservable inputs used in the fair value measurement of inactively traded common stocks classified as Level 3 include market return information, weighted using management’s judgment, from comparable selected publicly traded companies in the same industry, in a similar region and of a similar size, including net income multiples, tangible book value multiples, comparable returns, revenue multiples, adjusted earnings multiples and projected return on equity ratios. Significant increases (decreases) in any of these inputs could result in a significantly higher (lower) fair value measurement. Significant unobservable inputs used in measuring the fair value measurement of inactively traded common stocks also include a liquidity discount. A significant increase (decrease) in the liquidity discount could result in a significantly lower (higher) fair value measurement. | |||||||||||||||||||||||||||||
To validate prices, the Company completes quantitative analyses to compare the performance of each equity investment portfolio to the performance of an appropriate benchmark, with significant differences identified and investigated. | |||||||||||||||||||||||||||||
Other invested assets | |||||||||||||||||||||||||||||
The Company’s exchange traded derivatives, such as futures, are generally classified as Level 1 as their fair values are quoted prices in active markets. The Company’s foreign exchange forward contracts, foreign currency option contracts, credit default swaps, interest rate swaps and TBAs are generally classified as Level 2 within the fair value hierarchy and are priced by independent pricing services. | |||||||||||||||||||||||||||||
Included in the Company’s Level 3 classification, in general, are certain inactively traded weather derivatives, notes and loan receivables, notes securitizations, annuities and residuals, private equities and longevity and other total return swaps. For Level 3 instruments, the Company will generally (i) receive a price based on a manager’s or trustee’s valuation for the asset; (ii) develop an internal discounted cash flow model to measure fair value; or (iii) use market return information, adjusted if necessary and weighted using management’s judgment, from comparable selected publicly traded equity funds in a similar region and of a similar size. Where the Company receives prices from the manager or trustee, these prices are based on the manager’s or trustee’s estimate of fair value for the assets and are generally audited on an annual basis. Where the Company develops its own discounted cash flow models, the inputs will be specific to the asset in question, based on appropriate historical information, adjusted as necessary, and using appropriate discount rates. The significant unobservable inputs used in the fair value measurement of other invested assets classified as Level 3 include credit spreads, prepayment speeds, constant default rates, gross revenue to fair value ratios, net income multiples, effective yields, tangible book value multiples and other valuation ratios. Significant increases (decreases) in any of these inputs in isolation could result in a significantly lower (higher) fair value measurement. Significant unobservable inputs used in the fair value measurement of other invested assets classified as Level 3 also include an assessment of the recoverability of intangible assets and market return information, weighted using management’s judgment, from comparable selected publicly traded companies in the same industry, in a similar region and of a similar size. Significant increases (decreases) in these inputs in isolation could result in a significantly higher (lower) fair value measurement. As part of the Company’s modeling to determine the fair value of an investment, the Company considers counterparty credit risk as an input to the model, however, the majority of the Company’s counterparties are investment grade rated institutions and the failure of any one counterparty would not have a significant impact on the Company’s consolidated financial statements. | |||||||||||||||||||||||||||||
To validate prices, the Company will compare them to benchmarks, where appropriate, or to the business results generally within that asset class and specifically to those particular assets. | |||||||||||||||||||||||||||||
Funds held – directly managed | |||||||||||||||||||||||||||||
The segregated investment portfolio underlying the funds held – directly managed account is comprised of fixed maturities, short-term investments and other invested assets which are fair valued on a basis consistent with the methods described above. Substantially all fixed maturities and short-term investments within the funds held – directly managed account are classified as Level 2 within the fair value hierarchy. | |||||||||||||||||||||||||||||
The other invested assets within the segregated investment portfolio underlying the funds held – directly managed account, which are classified as Level 3 investments, are primarily real estate mutual fund investments carried at fair value. For the real estate mutual fund investments, the Company receives a price based on the real estate fund manager’s valuation for the asset and further adjusts the price, if necessary, based on appropriate current information on the real estate market. A significant increase (decrease) to the adjustment to the real estate fund manager’s valuation could result in a significantly lower (higher) fair value measurement. | |||||||||||||||||||||||||||||
To validate prices within the segregated investment portfolio underlying the funds held – directly managed account, the Company utilizes the methods described above. | |||||||||||||||||||||||||||||
(b) Fair Value of Financial Instrument Liabilities | |||||||||||||||||||||||||||||
At September 30, 2014 and December 31, 2013, the fair values of financial instrument liabilities recorded in the Condensed Consolidated Balance Sheets approximate their carrying values, with the exception of the debt related to senior notes (Senior Notes) and the debt related to capital efficient notes (CENts). | |||||||||||||||||||||||||||||
The methods and assumptions used by the Company in estimating the fair value of each class of financial instrument liability recorded in the Condensed Consolidated Balance Sheets for which the Company does not measure that instrument at fair value were as follows: | |||||||||||||||||||||||||||||
• | the fair value of the Senior Notes was calculated based on discounted cash flow models using observable market yields and contractual cash flows based on the aggregate principal amount outstanding of $250 million from PartnerRe Finance A LLC and $500 million from PartnerRe Finance B LLC at September 30, 2014 and December 31, 2013; and | ||||||||||||||||||||||||||||
• | the fair value of the CENts was calculated based on discounted cash flow models using observable market yields and contractual cash flows based on the aggregate principal amount outstanding of $63 million from PartnerRe Finance II Inc. at September 30, 2014 and December 31, 2013. | ||||||||||||||||||||||||||||
The carrying values and fair values of the Senior Notes and CENts at September 30, 2014 and December 31, 2013 were as follows (in thousands of U.S. dollars): | |||||||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||||||||||||||
Debt related to senior notes(1) | $ | 750,000 | $ | 868,702 | $ | 750,000 | $ | 844,331 | |||||||||||||||||||||
Debt related to capital efficient notes(2) | 63,384 | 63,231 | 63,384 | 61,094 | |||||||||||||||||||||||||
-1 | PartnerRe Finance A LLC and PartnerRe Finance B LLC, the issuers of the Senior Notes, do not meet consolidation requirements under U.S. GAAP. Accordingly, the Company shows the related intercompany debt of $750 million in its Condensed Consolidated Balance Sheets at September 30, 2014 and December 31, 2013. | ||||||||||||||||||||||||||||
-2 | PartnerRe Finance II Inc., the issuer of the CENts, does not meet consolidation requirements under U.S. GAAP. Accordingly, the Company shows the related intercompany debt of $71 million in its Condensed Consolidated Balance Sheets at September 30, 2014 and December 31, 2013. | ||||||||||||||||||||||||||||
At September 30, 2014 and December 31, 2013, the Company’s debt related to the Senior Notes and CENts was classified as Level 2 in the fair value hierarchy. | |||||||||||||||||||||||||||||
Disclosures about the fair value of financial instrument liabilities exclude insurance contracts and certain other financial instruments. |
Derivatives
Derivatives | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Text Block] | ' | ||||||||||||||||||||||||
5. Derivatives | |||||||||||||||||||||||||
The Company’s derivative instruments are recorded in the Condensed Consolidated Balance Sheets at fair value, with changes in fair value recognized in either net foreign exchange gains and losses or net realized and unrealized investment gains and losses in the Condensed Consolidated Statements of Operations or accumulated other comprehensive income or loss in the Condensed Consolidated Balance Sheets, depending on the nature of the derivative instrument. The Company’s objectives for holding or issuing these derivatives are as follows: | |||||||||||||||||||||||||
Foreign Exchange Forward Contracts | |||||||||||||||||||||||||
The Company utilizes foreign exchange forward contracts as part of its overall currency risk management and investment strategies. From time to time, the Company also utilizes foreign exchange forward contracts to hedge a portion of its net investment exposure resulting from the translation of its foreign subsidiaries and branches whose functional currency is other than the U.S. dollar. | |||||||||||||||||||||||||
Foreign Currency Option Contracts and Futures Contracts | |||||||||||||||||||||||||
The Company utilizes foreign currency option contracts to mitigate foreign currency risk. The Company uses exchange traded treasury note futures contracts to manage portfolio duration and equity futures to hedge certain investments. | |||||||||||||||||||||||||
Credit Default Swaps | |||||||||||||||||||||||||
The Company purchases protection through credit default swaps to mitigate the risk associated with its underwriting operations, most notably in the credit/surety line, and to manage market exposures. | |||||||||||||||||||||||||
The Company also assumes credit risk through credit default swaps to replicate investment positions. The original term of these credit default swaps is generally five years or less and there are no recourse provisions associated with these swaps. The counterparties on the Company’s assumed credit default swaps are all investment grade rated financial institutions, however, the Company would be required to perform in the event of a default by the underlying issuer. | |||||||||||||||||||||||||
Insurance-Linked Securities | |||||||||||||||||||||||||
The Company enters into various weather derivatives and longevity total return swaps for which the underlying risks reference parametric weather risks for the weather derivatives and longevity risk for the longevity total return swaps. | |||||||||||||||||||||||||
Total Return and Interest Rate Swaps and Interest Rate Derivatives | |||||||||||||||||||||||||
The Company enters into total return swaps referencing various project, investments and principal finance obligations. The Company enters into interest rate swaps to mitigate the interest rate risk on certain of the total return swaps and certain fixed maturity investments. The Company also uses other interest rate derivatives to mitigate exposure to interest rate volatility. | |||||||||||||||||||||||||
To-Be-Announced Mortgage-Backed Securities | |||||||||||||||||||||||||
The Company utilizes TBAs as part of its overall investment strategy and to enhance investment performance. | |||||||||||||||||||||||||
The net fair values and the related net notional values of derivatives included in the Company’s Condensed Consolidated Balance Sheets at September 30, 2014 and December 31, 2013 were as follows (in thousands of U.S. dollars): | |||||||||||||||||||||||||
Asset | Liability | Net derivatives | |||||||||||||||||||||||
derivatives | derivatives | ||||||||||||||||||||||||
30-Sep-14 | at fair value | at fair value | Net notional | Fair value | |||||||||||||||||||||
exposure | |||||||||||||||||||||||||
Foreign exchange forward contracts | $ | 8,456 | $ | (7,904 | ) | $ | 2,441,173 | $ | 552 | ||||||||||||||||
Foreign currency option contracts | 901 | (1,682 | ) | 86,692 | (781 | ) | |||||||||||||||||||
Futures contracts | 3,723 | (37 | ) | 2,677,157 | 3,686 | ||||||||||||||||||||
Insurance-linked securities (1) | — | (375 | ) | 181,238 | (375 | ) | |||||||||||||||||||
Total return swaps | 744 | (1,859 | ) | 42,569 | (1,115 | ) | |||||||||||||||||||
Interest rate swaps (2) | — | (10,200 | ) | 201,659 | (10,200 | ) | |||||||||||||||||||
TBAs | — | (508 | ) | 176,015 | (508 | ) | |||||||||||||||||||
Total derivatives | $ | 13,824 | $ | (22,565 | ) | $ | (8,741 | ) | |||||||||||||||||
Asset | Liability | Net derivatives | |||||||||||||||||||||||
derivatives | derivatives | ||||||||||||||||||||||||
31-Dec-13 | at fair value | at fair value | Net notional | Fair value | |||||||||||||||||||||
exposure | |||||||||||||||||||||||||
Foreign exchange forward contracts | $ | 1,249 | $ | (8,648 | ) | $ | 1,957,409 | $ | (7,399 | ) | |||||||||||||||
Foreign currency option contracts | — | (535 | ) | 87,620 | (535 | ) | |||||||||||||||||||
Futures contracts | 41,031 | — | 3,266,004 | 41,031 | |||||||||||||||||||||
Credit default swaps (protection purchased) | — | (71 | ) | 14,000 | (71 | ) | |||||||||||||||||||
Insurance-linked securities (1) | — | (268 | ) | 168,724 | (268 | ) | |||||||||||||||||||
Total return swaps | 79 | (599 | ) | 31,740 | (520 | ) | |||||||||||||||||||
Interest rate swaps (2) | 2,147 | (2,558 | ) | 202,859 | (411 | ) | |||||||||||||||||||
TBAs | 2 | (1,331 | ) | 183,835 | (1,329 | ) | |||||||||||||||||||
Total derivatives | $ | 44,508 | $ | (14,010 | ) | $ | 30,498 | ||||||||||||||||||
-1 | At September 30, 2014 and December 31, 2013, insurance-linked securities include a longevity swap for which the notional amount is not reflective of the overall potential exposure of the swap. As such, the Company has included the probable maximum loss under the swap within the net notional exposure as an approximation of the notional amount. | ||||||||||||||||||||||||
-2 | The Company enters into interest rate swaps to mitigate notional exposures on certain total return swaps and certain fixed maturities. Only the notional value of interest rate swaps on fixed maturities is presented separately in the table. | ||||||||||||||||||||||||
The fair value of all derivatives at September 30, 2014 and December 31, 2013 is recorded in Other invested assets in the Company’s Condensed Consolidated Balance Sheets. At September 30, 2014 and December 31, 2013, none of the Company’s derivatives were designated as hedges. | |||||||||||||||||||||||||
The gains and losses in the Condensed Consolidated Statements of Operations for derivatives for the three months and nine months ended September 30, 2014 and 2013 were as follows (in thousands of U.S. dollars): | |||||||||||||||||||||||||
For the three months ended | For the nine months ended | ||||||||||||||||||||||||
30-Sep-14 | 30-Sep-13 | 30-Sep-14 | 30-Sep-13 | ||||||||||||||||||||||
Foreign exchange forward contracts | $ | 20,721 | $ | 17 | $ | 29,613 | $ | (36,457 | ) | ||||||||||||||||
Foreign currency option contracts | (721 | ) | (799 | ) | 427 | (4,639 | ) | ||||||||||||||||||
Total included in net foreign exchange gains and losses | $ | 20,000 | $ | (782 | ) | $ | 30,040 | $ | (41,096 | ) | |||||||||||||||
Futures contracts | $ | 5,895 | $ | (30,233 | ) | $ | (44,606 | ) | $ | 55,143 | |||||||||||||||
Credit default swaps (protection purchased) | — | (6 | ) | (3 | ) | (126 | ) | ||||||||||||||||||
Credit default swaps (assumed risks) | — | 7 | — | 122 | |||||||||||||||||||||
Insurance-linked securities | (50 | ) | (110 | ) | 206 | (660 | ) | ||||||||||||||||||
Total return swaps | (1,213 | ) | (1,762 | ) | (595 | ) | (5,421 | ) | |||||||||||||||||
Interest rate swaps | (1,055 | ) | 240 | (9,788 | ) | 3,416 | |||||||||||||||||||
TBAs | 273 | 3,858 | 8,387 | (5,839 | ) | ||||||||||||||||||||
Total included in net realized and unrealized investment gains and losses | $ | 3,850 | $ | (28,006 | ) | $ | (46,399 | ) | $ | 46,635 | |||||||||||||||
Total derivatives | $ | 23,850 | $ | (28,788 | ) | $ | (16,359 | ) | $ | 5,539 | |||||||||||||||
Offsetting of Derivatives | |||||||||||||||||||||||||
The gross and net fair values of derivatives that are subject to offsetting in the Condensed Consolidated Balance Sheets at September 30, 2014 and December 31, 2013 were as follows (in thousands of U.S. dollars): | |||||||||||||||||||||||||
Gross | Net amounts of | Gross amounts not offset | |||||||||||||||||||||||
amounts | assets/liabilities | in the balance sheet | |||||||||||||||||||||||
offset in the | presented in the | ||||||||||||||||||||||||
30-Sep-14 | Gross | balance sheet | balance sheet | Financial | Cash collateral | Net amount | |||||||||||||||||||
amounts | instruments | received/pledged | |||||||||||||||||||||||
recognized (1) | |||||||||||||||||||||||||
Total derivative assets | $ | 13,824 | $ | — | $ | 13,824 | $ | (344 | ) | $ | (6,964 | ) | $ | 6,516 | |||||||||||
Total derivative liabilities | $ | (22,565 | ) | $ | — | $ | (22,565 | ) | $ | 344 | $ | 1,380 | $ | (20,841 | ) | ||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Total derivative assets | $ | 44,508 | $ | — | $ | 44,508 | $ | (2 | ) | $ | — | $ | 44,506 | ||||||||||||
Total derivative liabilities | $ | (14,010 | ) | $ | — | $ | (14,010 | ) | $ | 2 | $ | 4,341 | $ | (9,667 | ) | ||||||||||
-1 | Amounts include all derivative instruments, irrespective of whether there is a legally enforceable master netting arrangement in place. |
Net_Income_Per_Share
Net Income Per Share | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Net Income (Loss) Per Share | ' | |||||||||||||||
6. Net Income per Share | ||||||||||||||||
The reconciliation of basic and diluted net income per share for the three months and nine months ended September 30, 2014 and 2013 is as follows (in thousands of U.S. dollars, except share and per share data): | ||||||||||||||||
For the three months ended | For the nine months ended | |||||||||||||||
30-Sep-14 | 30-Sep-13 | 30-Sep-14 | 30-Sep-13 | |||||||||||||
Numerator: | ||||||||||||||||
Net income attributable to PartnerRe Ltd. | $ | 196,398 | $ | 333,423 | $ | 778,082 | $ | 392,221 | ||||||||
Less: preferred dividends | 14,184 | 14,184 | 42,551 | 43,678 | ||||||||||||
Less: loss on redemption of preferred shares | — | — | — | 9,135 | ||||||||||||
Net income attributable to PartnerRe Ltd. common shareholders | $ | 182,214 | $ | 319,239 | $ | 735,531 | $ | 339,408 | ||||||||
Denominator: | ||||||||||||||||
Weighted number of common shares outstanding – basic | 49,514,980 | 53,671,245 | 50,461,749 | 56,176,260 | ||||||||||||
Share options and other (1) | 1,166,345 | 953,906 | 1,104,385 | 1,041,301 | ||||||||||||
Weighted average number of common shares and common share equivalents outstanding – diluted | 50,681,325 | 54,625,151 | 51,566,134 | 57,217,561 | ||||||||||||
Basic net income per share | $ | 3.68 | $ | 5.95 | $ | 14.58 | $ | 6.04 | ||||||||
Diluted net income per share (1) | $ | 3.6 | $ | 5.84 | $ | 14.26 | $ | 5.93 | ||||||||
Anti-dilutive common shares excluded from weighted average number of common shares and common share equivalents outstanding - diluted (1) | 134,470 | 140,516 | 135,681 | 114,195 | ||||||||||||
-1 | Where the exercise price of share based awards is greater than the average market price of the common shares, the common shares are considered anti-dilutive and are excluded from the calculation of weighted average number of common shares and common share equivalents outstanding - diluted. |
Noncontrolling_interests
Noncontrolling interests | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Noncontrolling Interest [Abstract] | ' | |||||||
Noncontrolling Interest Disclosure [Text Block] | ' | |||||||
7. Noncontrolling Interests | ||||||||
In March 2013, the Company formed with other third party investors, Lorenz Re Ltd. (Lorenz Re), a Bermuda domiciled special purpose insurer to provide additional capacity to the Company for a diversified portfolio of catastrophe reinsurance treaties over a multi-year period on a fully collateralized reinsurance basis. The original business was written by the Company and was ceded to Lorenz Re effective April 1, 2013. | ||||||||
Lorenz Re’s non-voting redeemable preferred share capital is redeemable at the option of the Company and is expected to be redeemed following the commutation of the portfolio back to the Company on or before June 1, 2016. | ||||||||
At September 30, 2014 and December 31, 2013, the total assets of Lorenz Re were $101.8 million and $99.6 million, respectively, primarily consisting of cash and investments. At September 30, 2014 and December 31, 2013, the total liabilities were $19.4 million and $11.1 million, respectively, primarily consisting of unearned premiums and unpaid losses and loss expenses. The assets of Lorenz Re can only be used to settle the liabilities of Lorenz Re and there is no recourse to the Company for any liabilities of Lorenz Re. | ||||||||
The reconciliation of the beginning and ending balance of the noncontrolling interests in Lorenz Re for the nine months ended September 30, 2014 and 2013 was as follows (in thousands of U.S. dollars): | ||||||||
For the nine months ended | ||||||||
30-Sep-14 | 30-Sep-13 | |||||||
Balance at beginning of period | $ | 56,627 | $ | — | ||||
Net income attributable to noncontrolling interests | 9,914 | 5,296 | ||||||
Distribution to noncontrolling interests | (14,265 | ) | — | |||||
Sale of shares to noncontrolling interests | — | 47,193 | ||||||
Balance at end of period | $ | 52,276 | $ | 52,489 | ||||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
8. Commitments and Contingencies | |
(a) Legal Proceedings | |
There has been no significant change in legal proceedings at September 30, 2014 compared to December 31, 2013. See Note 18(f) to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. | |
(b) Other | |
At September 30, 2014, there were no restrictions on the Company’s ability to pay common and preferred shareholders’ dividends from retained earnings. The declaration of dividends by PartnerRe Bermuda is subject to prior regulatory approval through December 31, 2014. |
Segment_Information
Segment Information | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||||||
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ' | |||||||||||||||||||||||||||||||
Segment Reporting Disclosure [Text Block] | ' | |||||||||||||||||||||||||||||||
9. Segment Information | ||||||||||||||||||||||||||||||||
The Company monitors the performance of its operations in three segments, Non-life, Life and Health and Corporate and Other as described in Note 21 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. The Non-life segment is further divided into four sub-segments: North America, Global (Non-U.S.) P&C, Global Specialty and Catastrophe. | ||||||||||||||||||||||||||||||||
The North America sub-segment includes agriculture, casualty, credit/surety, motor, multiline, property and other risks generally originating in the United States. The Global (Non-U.S.) P&C sub-segment includes casualty, motor and property business generally originating outside of the United States. The Global Specialty sub-segment is comprised of business that is generally considered to be specialized due to the sophisticated technical underwriting required to analyze risks, and is global in nature. This sub-segment consists of several lines of business for which the Company believes it has developed specialized knowledge and underwriting capabilities. These lines of business include agriculture, aviation/space, credit/surety, energy, engineering, marine, specialty casualty, specialty property and other lines. The Catastrophe sub-segment is comprised of the Company’s catastrophe line of business. The Life and Health segment includes mortality, longevity and accident and health lines of business. Corporate and Other is comprised of the capital markets and investment related activities of the Company, including principal finance transactions, insurance-linked securities and strategic investments, and its corporate activities, including other operating expenses. | ||||||||||||||||||||||||||||||||
Since the Company does not manage its assets by segment, net investment income is not allocated to the Non-life segment. However, because of the interest-sensitive nature of some of the Company’s Life and Health products, net investment income is considered in Management’s assessment of the profitability of the Life and Health segment. The following items are not considered in evaluating the results of the Non-life and Life and Health segments: net realized and unrealized investment gains and losses, interest expense, amortization of intangible assets, net foreign exchange gains and losses, income tax expense or benefit and interest in earnings and losses of equity method investments. Segment results are shown before consideration of intercompany transactions. | ||||||||||||||||||||||||||||||||
Management measures results for the Non-life segment on the basis of the loss ratio, acquisition ratio, technical ratio, other operating expense ratio and combined ratio (all defined below). Management measures results for the Non-life sub-segments on the basis of the loss ratio, acquisition ratio and technical ratio. Management measures results for the Life and Health segment on the basis of the allocated underwriting result, which includes revenues from net premiums earned, other income or loss and allocated net investment income for Life and Health, and expenses from life policy benefits, acquisition costs and other operating expenses. | ||||||||||||||||||||||||||||||||
The segment results for the three months and nine months ended September 30, 2014 and 2013, were as follows (in millions of U.S. dollars, except ratios): | ||||||||||||||||||||||||||||||||
Segment Information | ||||||||||||||||||||||||||||||||
For the three months ended September 30, 2014 | ||||||||||||||||||||||||||||||||
North | Global | Global | Catastrophe | Total | Life | Corporate | Total | |||||||||||||||||||||||||
America | (Non-U.S.) | Specialty | Non-life | and Health | and Other | |||||||||||||||||||||||||||
P&C | segment | segment | ||||||||||||||||||||||||||||||
Gross premiums written | $ | 372 | $ | 162 | $ | 432 | $ | 59 | $ | 1,025 | $ | 336 | $ | — | $ | 1,361 | ||||||||||||||||
Net premiums written | $ | 372 | $ | 164 | $ | 428 | $ | 55 | $ | 1,019 | $ | 325 | $ | (1 | ) | $ | 1,343 | |||||||||||||||
Decrease in unearned premiums | 52 | 38 | 20 | 98 | 208 | 6 | — | 214 | ||||||||||||||||||||||||
Net premiums earned | $ | 424 | $ | 202 | $ | 448 | $ | 153 | $ | 1,227 | $ | 331 | $ | (1 | ) | $ | 1,557 | |||||||||||||||
Losses and loss expenses and life policy benefits | (247 | ) | (123 | ) | (279 | ) | (39 | ) | (688 | ) | (272 | ) | — | (960 | ) | |||||||||||||||||
Acquisition costs | (106 | ) | (56 | ) | (105 | ) | (17 | ) | (284 | ) | (38 | ) | — | (322 | ) | |||||||||||||||||
Technical result | $ | 71 | $ | 23 | $ | 64 | $ | 97 | $ | 255 | $ | 21 | $ | (1 | ) | $ | 275 | |||||||||||||||
Other (loss) income | (1 | ) | 2 | 1 | 2 | |||||||||||||||||||||||||||
Other operating expenses | (62 | ) | (17 | ) | (29 | ) | (108 | ) | ||||||||||||||||||||||||
Underwriting result | $ | 192 | $ | 6 | n/a | $ | 169 | |||||||||||||||||||||||||
Net investment income | 14 | 104 | 118 | |||||||||||||||||||||||||||||
Allocated underwriting result (1) | $ | 20 | n/a | n/a | ||||||||||||||||||||||||||||
Net realized and unrealized investment losses | (34 | ) | (34 | ) | ||||||||||||||||||||||||||||
Interest expense | (12 | ) | (12 | ) | ||||||||||||||||||||||||||||
Amortization of intangible assets | (7 | ) | (7 | ) | ||||||||||||||||||||||||||||
Net foreign exchange gains | 8 | 8 | ||||||||||||||||||||||||||||||
Income tax expense | (46 | ) | (46 | ) | ||||||||||||||||||||||||||||
Interest in earnings of equity method investments | 5 | 5 | ||||||||||||||||||||||||||||||
Net income | n/a | $ | 201 | |||||||||||||||||||||||||||||
Loss ratio (2) | 58.2 | % | 61.1 | % | 62.3 | % | 25.2 | % | 56.1 | % | ||||||||||||||||||||||
Acquisition ratio (3) | 24.9 | 27.6 | 23.5 | 11.7 | 23.1 | |||||||||||||||||||||||||||
Technical ratio (4) | 83.1 | % | 88.7 | % | 85.8 | % | 36.9 | % | 79.2 | % | ||||||||||||||||||||||
Other operating expense ratio (5) | 5 | |||||||||||||||||||||||||||||||
Combined ratio (6) | 84.2 | % | ||||||||||||||||||||||||||||||
-1 | Allocated underwriting result is defined as net premiums earned, other income or loss and allocated net investment income less life policy benefits, acquisition costs and other operating expenses. | |||||||||||||||||||||||||||||||
-2 | Loss ratio is obtained by dividing losses and loss expenses by net premiums earned. | |||||||||||||||||||||||||||||||
-3 | Acquisition ratio is obtained by dividing acquisition costs by net premiums earned. | |||||||||||||||||||||||||||||||
-4 | Technical ratio is defined as the sum of the loss ratio and the acquisition ratio. | |||||||||||||||||||||||||||||||
-5 | Other operating expense ratio is obtained by dividing other operating expenses by net premiums earned. | |||||||||||||||||||||||||||||||
-6 | Combined ratio is defined as the sum of the technical ratio and the other operating expense ratio. | |||||||||||||||||||||||||||||||
Segment Information | ||||||||||||||||||||||||||||||||
For the three months ended September 30, 2013 | ||||||||||||||||||||||||||||||||
North | Global | Global | Catastrophe | Total | Life | Corporate | Total | |||||||||||||||||||||||||
America | (Non-U.S.) | Specialty | Non-life | and Health | and Other | |||||||||||||||||||||||||||
P&C | segment | segment | ||||||||||||||||||||||||||||||
Gross premiums written | $ | 409 | $ | 157 | $ | 396 | $ | 79 | $ | 1,041 | $ | 235 | $ | 5 | $ | 1,281 | ||||||||||||||||
Net premiums written | $ | 408 | $ | 157 | $ | 389 | $ | 72 | $ | 1,026 | $ | 234 | $ | 5 | $ | 1,265 | ||||||||||||||||
Decrease (increase) in unearned premiums | 17 | 38 | (7 | ) | 99 | 147 | 9 | — | 156 | |||||||||||||||||||||||
Net premiums earned | $ | 425 | $ | 195 | $ | 382 | $ | 171 | $ | 1,173 | $ | 243 | $ | 5 | $ | 1,421 | ||||||||||||||||
Losses and loss expenses and life policy benefits | (197 | ) | (90 | ) | (228 | ) | (42 | ) | (557 | ) | (195 | ) | 1 | (751 | ) | |||||||||||||||||
Acquisition costs | (101 | ) | (50 | ) | (92 | ) | (16 | ) | (259 | ) | (24 | ) | — | (283 | ) | |||||||||||||||||
Technical result | $ | 127 | $ | 55 | $ | 62 | $ | 113 | $ | 357 | $ | 24 | $ | 6 | $ | 387 | ||||||||||||||||
Other income | 2 | 3 | — | 5 | ||||||||||||||||||||||||||||
Other operating expenses | (62 | ) | (17 | ) | (29 | ) | (108 | ) | ||||||||||||||||||||||||
Underwriting result | $ | 297 | $ | 10 | n/a | $ | 284 | |||||||||||||||||||||||||
Net investment income | 15 | 107 | 122 | |||||||||||||||||||||||||||||
Allocated underwriting result | $ | 25 | n/a | n/a | ||||||||||||||||||||||||||||
Net realized and unrealized investment gains | 16 | 16 | ||||||||||||||||||||||||||||||
Interest expense | (12 | ) | (12 | ) | ||||||||||||||||||||||||||||
Amortization of intangible assets | (7 | ) | (7 | ) | ||||||||||||||||||||||||||||
Net foreign exchange losses | (1 | ) | (1 | ) | ||||||||||||||||||||||||||||
Income tax expense | (70 | ) | (70 | ) | ||||||||||||||||||||||||||||
Interest in earnings of equity method investments | 6 | 6 | ||||||||||||||||||||||||||||||
Net income | n/a | $ | 338 | |||||||||||||||||||||||||||||
Loss ratio | 46.3 | % | 46 | % | 59.8 | % | 24.5 | % | 47.5 | % | ||||||||||||||||||||||
Acquisition ratio | 23.9 | 25.7 | 24 | 9 | 22.1 | |||||||||||||||||||||||||||
Technical ratio | 70.2 | % | 71.7 | % | 83.8 | % | 33.5 | % | 69.6 | % | ||||||||||||||||||||||
Other operating expense ratio | 5.3 | |||||||||||||||||||||||||||||||
Combined ratio | 74.9 | % | ||||||||||||||||||||||||||||||
Segment Information | ||||||||||||||||||||||||||||||||
For the nine months ended September 30, 2014 | ||||||||||||||||||||||||||||||||
North | Global | Global | Catastrophe | Total | Life | Corporate | Total | |||||||||||||||||||||||||
America | (Non-U.S.) | Specialty | Non-life | and Health | and Other | |||||||||||||||||||||||||||
P&C | segment | segment | ||||||||||||||||||||||||||||||
Gross premiums written | $ | 1,302 | $ | 682 | $ | 1,348 | $ | 412 | $ | 3,744 | $ | 951 | $ | — | $ | 4,695 | ||||||||||||||||
Net premiums written | $ | 1,291 | $ | 672 | $ | 1,250 | $ | 370 | $ | 3,583 | $ | 918 | $ | (1 | ) | $ | 4,500 | |||||||||||||||
Increase in unearned premiums | (99 | ) | (104 | ) | (42 | ) | (78 | ) | (323 | ) | (14 | ) | — | (337 | ) | |||||||||||||||||
Net premiums earned | $ | 1,192 | $ | 568 | $ | 1,208 | $ | 292 | $ | 3,260 | $ | 904 | $ | (1 | ) | $ | 4,163 | |||||||||||||||
Losses and loss expenses and life policy benefits | (747 | ) | (319 | ) | (749 | ) | (38 | ) | (1,853 | ) | (740 | ) | — | (2,593 | ) | |||||||||||||||||
Acquisition costs | (299 | ) | (162 | ) | (283 | ) | (34 | ) | (778 | ) | (111 | ) | — | (889 | ) | |||||||||||||||||
Technical result | $ | 146 | $ | 87 | $ | 176 | $ | 220 | $ | 629 | $ | 53 | $ | (1 | ) | $ | 681 | |||||||||||||||
Other income | 1 | 6 | 5 | 12 | ||||||||||||||||||||||||||||
Other operating expenses | (187 | ) | (52 | ) | (88 | ) | (327 | ) | ||||||||||||||||||||||||
Underwriting result | $ | 443 | $ | 7 | n/a | $ | 366 | |||||||||||||||||||||||||
Net investment income | 45 | 320 | 365 | |||||||||||||||||||||||||||||
Allocated underwriting result | $ | 52 | n/a | n/a | ||||||||||||||||||||||||||||
Net realized and unrealized investment gains | 273 | 273 | ||||||||||||||||||||||||||||||
Interest expense | (36 | ) | (36 | ) | ||||||||||||||||||||||||||||
Amortization of intangible assets | (21 | ) | (21 | ) | ||||||||||||||||||||||||||||
Net foreign exchange gains | 11 | 11 | ||||||||||||||||||||||||||||||
Income tax expense | (186 | ) | (186 | ) | ||||||||||||||||||||||||||||
Interest in earnings of equity method investments | 16 | 16 | ||||||||||||||||||||||||||||||
Net income | n/a | $ | 788 | |||||||||||||||||||||||||||||
Loss ratio | 62.6 | % | 56.2 | % | 62.1 | % | 12.9 | % | 56.8 | % | ||||||||||||||||||||||
Acquisition ratio | 25.1 | 28.5 | 23.4 | 11.5 | 23.9 | |||||||||||||||||||||||||||
Technical ratio | 87.7 | % | 84.7 | % | 85.5 | % | 24.4 | % | 80.7 | % | ||||||||||||||||||||||
Other operating expense ratio | 5.7 | |||||||||||||||||||||||||||||||
Combined ratio | 86.4 | % | ||||||||||||||||||||||||||||||
Segment Information | ||||||||||||||||||||||||||||||||
For the nine months ended September 30, 2013 | ||||||||||||||||||||||||||||||||
North | Global | Global | Catastrophe | Total | Life | Corporate | Total | |||||||||||||||||||||||||
America | (Non-U.S.) | Specialty | Non-life | and Health | and Other | |||||||||||||||||||||||||||
P&C | segment | segment | ||||||||||||||||||||||||||||||
Gross premiums written | $ | 1,228 | $ | 690 | $ | 1,253 | $ | 478 | $ | 3,649 | $ | 722 | $ | 8 | $ | 4,379 | ||||||||||||||||
Net premiums written | $ | 1,215 | $ | 682 | $ | 1,159 | $ | 433 | $ | 3,489 | $ | 715 | $ | 7 | $ | 4,211 | ||||||||||||||||
Increase in unearned premiums | (99 | ) | (152 | ) | (68 | ) | (97 | ) | (416 | ) | (17 | ) | (1 | ) | (434 | ) | ||||||||||||||||
Net premiums earned | $ | 1,116 | $ | 530 | $ | 1,091 | $ | 336 | $ | 3,073 | $ | 698 | $ | 6 | $ | 3,777 | ||||||||||||||||
Losses and loss expenses and life policy benefits | (682 | ) | (263 | ) | (697 | ) | (81 | ) | (1,723 | ) | (558 | ) | 2 | (2,279 | ) | |||||||||||||||||
Acquisition costs | (253 | ) | (134 | ) | (257 | ) | (33 | ) | (677 | ) | (82 | ) | — | (759 | ) | |||||||||||||||||
Technical result | $ | 181 | $ | 133 | $ | 137 | $ | 222 | $ | 673 | $ | 58 | $ | 8 | $ | 739 | ||||||||||||||||
Other income | 3 | 9 | 1 | 13 | ||||||||||||||||||||||||||||
Other operating expenses | (189 | ) | (52 | ) | (128 | ) | (369 | ) | ||||||||||||||||||||||||
Underwriting result | $ | 487 | $ | 15 | n/a | $ | 383 | |||||||||||||||||||||||||
Net investment income | 45 | 325 | 370 | |||||||||||||||||||||||||||||
Allocated underwriting result | $ | 60 | n/a | n/a | ||||||||||||||||||||||||||||
Net realized and unrealized investment losses | (260 | ) | (260 | ) | ||||||||||||||||||||||||||||
Interest expense | (37 | ) | (37 | ) | ||||||||||||||||||||||||||||
Amortization of intangible assets | (21 | ) | (21 | ) | ||||||||||||||||||||||||||||
Net foreign exchange losses | (10 | ) | (10 | ) | ||||||||||||||||||||||||||||
Income tax expense | (37 | ) | (37 | ) | ||||||||||||||||||||||||||||
Interest in earnings of equity method investments | 10 | 10 | ||||||||||||||||||||||||||||||
Net income | n/a | $ | 398 | |||||||||||||||||||||||||||||
Loss ratio | 61.1 | % | 49.7 | % | 63.9 | % | 24.2 | % | 56.1 | % | ||||||||||||||||||||||
Acquisition ratio | 22.7 | 25.2 | 23.6 | 9.7 | 22 | |||||||||||||||||||||||||||
Technical ratio | 83.8 | % | 74.9 | % | 87.5 | % | 33.9 | % | 78.1 | % | ||||||||||||||||||||||
Other operating expense ratio | 6.1 | |||||||||||||||||||||||||||||||
Combined ratio | 84.2 | % | ||||||||||||||||||||||||||||||
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 9 Months Ended | |
Sep. 30, 2014 | ||
Disclosure - Significant Accounting Policies [Abstract] | ' | |
Basis of accounting | ' | |
The Company’s Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X. The Condensed Consolidated Financial Statements include the accounts of the Company and its subsidiaries. Intercompany accounts and transactions have been eliminated. | ||
Use Of Estimates | ' | |
The preparation of financial statements in conformity with U.S. GAAP requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. While Management believes that the amounts included in the Condensed Consolidated Financial Statements reflect its best estimates and assumptions, actual results could differ from those estimates. The Company’s principal estimates include: | ||
• | Unpaid losses and loss expenses; | |
• | Policy benefits for life and annuity contracts; | |
• | Gross and net premiums written and net premiums earned; | |
• | Recoverability of deferred acquisition costs; | |
• | Recoverability of deferred tax assets; | |
• | Valuation of goodwill and intangible assets; and | |
• | Valuation of certain assets and derivative financial instruments that are measured using significant unobservable inputs. |
Fair_Value_Tables
Fair Value (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||||||
Financial instruments measured at fair value and categorized between Levels 1, 2 and 3 | ' | ||||||||||||||||||||||||||||
At September 30, 2014 and December 31, 2013, the Company’s financial instruments measured at fair value were classified between Levels 1, 2 and 3 as follows (in thousands of U.S. dollars): | |||||||||||||||||||||||||||||
30-Sep-14 | Quoted prices in | Significant | Significant | Total | |||||||||||||||||||||||||
active markets for | other observable | unobservable | |||||||||||||||||||||||||||
identical assets | inputs | inputs | |||||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||||||
U.S. government and government sponsored enterprises | $ | — | $ | 2,184,417 | $ | — | $ | 2,184,417 | |||||||||||||||||||||
U.S. states, territories and municipalities | — | 189,755 | 130,743 | 320,498 | |||||||||||||||||||||||||
Non-U.S. sovereign government, supranational and government related | — | 2,209,335 | — | 2,209,335 | |||||||||||||||||||||||||
Corporate | — | 5,706,486 | — | 5,706,486 | |||||||||||||||||||||||||
Asset-backed securities | — | 689,609 | 458,175 | 1,147,784 | |||||||||||||||||||||||||
Residential mortgage-backed securities | — | 2,331,870 | — | 2,331,870 | |||||||||||||||||||||||||
Other mortgage-backed securities | — | 50,239 | — | 50,239 | |||||||||||||||||||||||||
Fixed maturities | $ | — | $ | 13,361,711 | $ | 588,918 | $ | 13,950,629 | |||||||||||||||||||||
Short-term investments | $ | — | $ | 37,016 | $ | — | $ | 37,016 | |||||||||||||||||||||
Equities | |||||||||||||||||||||||||||||
Real estate investment trusts | $ | 213,461 | $ | — | $ | — | $ | 213,461 | |||||||||||||||||||||
Energy | 155,113 | — | — | 155,113 | |||||||||||||||||||||||||
Insurance | 127,740 | — | — | 127,740 | |||||||||||||||||||||||||
Finance | 70,010 | 8,431 | 19,136 | 97,577 | |||||||||||||||||||||||||
Consumer noncyclical | 91,334 | — | — | 91,334 | |||||||||||||||||||||||||
Communications | 72,619 | — | 1,966 | 74,585 | |||||||||||||||||||||||||
Technology | 47,848 | — | 7,318 | 55,166 | |||||||||||||||||||||||||
Industrials | 43,930 | — | — | 43,930 | |||||||||||||||||||||||||
Consumer cyclical | 36,252 | — | — | 36,252 | |||||||||||||||||||||||||
Utilities | 32,012 | — | — | 32,012 | |||||||||||||||||||||||||
Other | 17,372 | — | 7 | 17,379 | |||||||||||||||||||||||||
Mutual funds and exchange traded funds | 48,383 | — | 8,375 | 56,758 | |||||||||||||||||||||||||
Equities | $ | 956,074 | $ | 8,431 | $ | 36,802 | $ | 1,001,307 | |||||||||||||||||||||
Other invested assets | |||||||||||||||||||||||||||||
Derivative assets | |||||||||||||||||||||||||||||
Foreign exchange forward contracts | $ | — | $ | 8,456 | $ | — | $ | 8,456 | |||||||||||||||||||||
Foreign currency option contracts | — | 901 | — | 901 | |||||||||||||||||||||||||
Futures contracts | 3,723 | — | — | 3,723 | |||||||||||||||||||||||||
Total return swaps | — | — | 744 | 744 | |||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||
Notes and loan receivables and notes securitization | — | — | 45,396 | 45,396 | |||||||||||||||||||||||||
Annuities and residuals | — | — | 14,880 | 14,880 | |||||||||||||||||||||||||
Private equities | — | — | 53,019 | 53,019 | |||||||||||||||||||||||||
Derivative liabilities | |||||||||||||||||||||||||||||
Foreign exchange forward contracts | — | (7,904 | ) | — | (7,904 | ) | |||||||||||||||||||||||
Foreign currency option contracts | — | (1,682 | ) | — | (1,682 | ) | |||||||||||||||||||||||
Futures contracts | (37 | ) | — | — | (37 | ) | |||||||||||||||||||||||
Insurance-linked securities | — | — | (375 | ) | (375 | ) | |||||||||||||||||||||||
Total return swaps | — | — | (1,859 | ) | (1,859 | ) | |||||||||||||||||||||||
Interest rate swaps | — | (10,200 | ) | — | (10,200 | ) | |||||||||||||||||||||||
TBAs | — | (508 | ) | — | (508 | ) | |||||||||||||||||||||||
Other invested assets | $ | 3,686 | $ | (10,937 | ) | $ | 111,805 | $ | 104,554 | ||||||||||||||||||||
Funds held – directly managed | |||||||||||||||||||||||||||||
U.S. government and government sponsored enterprises | $ | — | $ | 149,273 | $ | — | $ | 149,273 | |||||||||||||||||||||
U.S. states, territories and municipalities | — | — | 311 | 311 | |||||||||||||||||||||||||
Non-U.S. sovereign government, supranational and government related | — | 123,210 | — | 123,210 | |||||||||||||||||||||||||
Corporate | — | 191,621 | — | 191,621 | |||||||||||||||||||||||||
Other invested assets | — | — | 14,553 | 14,553 | |||||||||||||||||||||||||
Funds held – directly managed | $ | — | $ | 464,104 | $ | 14,864 | $ | 478,968 | |||||||||||||||||||||
Total | $ | 959,760 | $ | 13,860,325 | $ | 752,389 | $ | 15,572,474 | |||||||||||||||||||||
31-Dec-13 | Quoted prices in | Significant other | Significant | Total | |||||||||||||||||||||||||
active markets for | observable | unobservable | |||||||||||||||||||||||||||
identical assets | inputs | inputs | |||||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||||||
U.S. government and government sponsored enterprises | $ | — | $ | 1,623,859 | $ | — | $ | 1,623,859 | |||||||||||||||||||||
U.S. states, territories and municipalities | — | 16,207 | 108,380 | 124,587 | |||||||||||||||||||||||||
Non-U.S. sovereign government, supranational and government related | — | 2,353,699 | — | 2,353,699 | |||||||||||||||||||||||||
Corporate | — | 6,048,663 | — | 6,048,663 | |||||||||||||||||||||||||
Asset-backed securities | — | 691,654 | 446,577 | 1,138,231 | |||||||||||||||||||||||||
Residential mortgage-backed securities | — | 2,268,517 | — | 2,268,517 | |||||||||||||||||||||||||
Other mortgage-backed securities | — | 35,747 | — | 35,747 | |||||||||||||||||||||||||
Fixed maturities | $ | — | $ | 13,038,346 | $ | 554,957 | $ | 13,593,303 | |||||||||||||||||||||
Short-term investments | $ | — | $ | 13,546 | $ | — | $ | 13,546 | |||||||||||||||||||||
Equities | |||||||||||||||||||||||||||||
Real estate investment trusts | $ | 175,796 | $ | — | $ | — | $ | 175,796 | |||||||||||||||||||||
Energy | 159,509 | — | — | 159,509 | |||||||||||||||||||||||||
Insurance | 144,020 | — | — | 144,020 | |||||||||||||||||||||||||
Finance | 108,944 | 9,556 | 20,207 | 138,707 | |||||||||||||||||||||||||
Consumer noncyclical | 108,663 | — | — | 108,663 | |||||||||||||||||||||||||
Communications | 70,792 | — | 2,199 | 72,991 | |||||||||||||||||||||||||
Technology | 53,768 | — | 7,752 | 61,520 | |||||||||||||||||||||||||
Industrials | 47,677 | — | — | 47,677 | |||||||||||||||||||||||||
Consumer cyclical | 45,915 | — | — | 45,915 | |||||||||||||||||||||||||
Utilities | 37,151 | — | — | 37,151 | |||||||||||||||||||||||||
Other | 19,993 | — | — | 19,993 | |||||||||||||||||||||||||
Mutual funds and exchange traded funds | 61,902 | 139,322 | 7,887 | 209,111 | |||||||||||||||||||||||||
Equities | $ | 1,034,130 | $ | 148,878 | $ | 38,045 | $ | 1,221,053 | |||||||||||||||||||||
Other invested assets | |||||||||||||||||||||||||||||
Derivative assets | |||||||||||||||||||||||||||||
Foreign exchange forward contracts | $ | — | $ | 1,249 | $ | — | $ | 1,249 | |||||||||||||||||||||
Futures contracts | 41,031 | — | — | 41,031 | |||||||||||||||||||||||||
Total return swaps | — | — | 79 | 79 | |||||||||||||||||||||||||
Interest rate swaps | — | 2,147 | — | 2,147 | |||||||||||||||||||||||||
TBAs | — | 2 | — | 2 | |||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||
Notes and loan receivables and notes securitization | — | — | 41,446 | 41,446 | |||||||||||||||||||||||||
Annuities and residuals | — | — | 24,064 | 24,064 | |||||||||||||||||||||||||
Private equities | — | — | 39,131 | 39,131 | |||||||||||||||||||||||||
Derivative liabilities | |||||||||||||||||||||||||||||
Foreign exchange forward contracts | — | (8,648 | ) | — | (8,648 | ) | |||||||||||||||||||||||
Foreign currency option contracts | — | (535 | ) | — | (535 | ) | |||||||||||||||||||||||
Credit default swaps (protection purchased) | — | (71 | ) | — | (71 | ) | |||||||||||||||||||||||
Insurance-linked securities | — | — | (268 | ) | (268 | ) | |||||||||||||||||||||||
Total return swaps | — | — | (599 | ) | (599 | ) | |||||||||||||||||||||||
Interest rate swaps | — | (2,558 | ) | — | (2,558 | ) | |||||||||||||||||||||||
TBAs | — | (1,331 | ) | — | (1,331 | ) | |||||||||||||||||||||||
Other invested assets | $ | 41,031 | $ | (9,745 | ) | $ | 103,853 | $ | 135,139 | ||||||||||||||||||||
Funds held – directly managed | |||||||||||||||||||||||||||||
U.S. government and government sponsored enterprises | $ | — | $ | 157,296 | $ | — | $ | 157,296 | |||||||||||||||||||||
U.S. states, territories and municipalities | — | — | 286 | 286 | |||||||||||||||||||||||||
Non-U.S. sovereign government, supranational and government related | — | 137,186 | — | 137,186 | |||||||||||||||||||||||||
Corporate | — | 248,947 | — | 248,947 | |||||||||||||||||||||||||
Short-term investments | — | 2,426 | — | 2,426 | |||||||||||||||||||||||||
Other invested assets | — | — | 15,165 | 15,165 | |||||||||||||||||||||||||
Funds held – directly managed | $ | — | $ | 545,855 | $ | 15,451 | $ | 561,306 | |||||||||||||||||||||
Total | $ | 1,075,161 | $ | 13,736,880 | $ | 712,306 | $ | 15,524,347 | |||||||||||||||||||||
Reconciliation of beginning and ending balances for all financial instruments measured at fair value using Level 3 inputs | ' | ||||||||||||||||||||||||||||
The reconciliations of the beginning and ending balances for all financial instruments measured at fair value using Level 3 inputs for the nine months ended September 30, 2014 and 2013, were as follows (in thousands of U.S. dollars): | |||||||||||||||||||||||||||||
For the nine months ended September 30, 2014 | Balance at | Realized and | Purchases | Settlements | Net | Balance | Change in | ||||||||||||||||||||||
beginning | unrealized | and | and | transfers | at end of | unrealized | |||||||||||||||||||||||
of period | investment | issuances (1) | sales | into/(out of) | period | investment gains (losses) | |||||||||||||||||||||||
gains (losses) | Level 3 | relating to | |||||||||||||||||||||||||||
included in | assets held at | ||||||||||||||||||||||||||||
net income | end of period | ||||||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||||||
U.S. states, territories and municipalities | $ | 108,380 | $ | 10,488 | $ | 14,220 | $ | (2,345 | ) | $ | — | $ | 130,743 | $ | 10,483 | ||||||||||||||
Asset-backed securities | 446,577 | 4,698 | 138,538 | (131,638 | ) | — | 458,175 | 4,993 | |||||||||||||||||||||
Fixed maturities | $ | 554,957 | $ | 15,186 | $ | 152,758 | $ | (133,983 | ) | $ | — | $ | 588,918 | $ | 15,476 | ||||||||||||||
Equities | |||||||||||||||||||||||||||||
Finance | $ | 20,207 | $ | (1,071 | ) | $ | — | $ | — | $ | — | $ | 19,136 | $ | (1,071 | ) | |||||||||||||
Communications | 2,199 | (233 | ) | — | — | — | 1,966 | (233 | ) | ||||||||||||||||||||
Technology | 7,752 | (434 | ) | — | — | — | 7,318 | (434 | ) | ||||||||||||||||||||
Other | — | (1 | ) | 8 | — | — | 7 | (1 | ) | ||||||||||||||||||||
Mutual funds and exchange traded funds | 7,887 | 488 | — | — | — | 8,375 | 488 | ||||||||||||||||||||||
Equities | $ | 38,045 | $ | (1,251 | ) | $ | 8 | $ | — | $ | — | $ | 36,802 | $ | (1,251 | ) | |||||||||||||
Other invested assets | |||||||||||||||||||||||||||||
Derivatives, net | $ | (788 | ) | $ | (391 | ) | $ | (871 | ) | $ | 560 | $ | — | $ | (1,490 | ) | $ | (391 | ) | ||||||||||
Notes and loan receivables and notes securitization | 41,446 | 2,188 | 32,202 | (30,440 | ) | — | 45,396 | 3,707 | |||||||||||||||||||||
Annuities and residuals | 24,064 | (84 | ) | — | (9,100 | ) | — | 14,880 | (44 | ) | |||||||||||||||||||
Private equities | 39,131 | (3,179 | ) | 20,792 | (3,725 | ) | — | 53,019 | (3,210 | ) | |||||||||||||||||||
Other invested assets | $ | 103,853 | $ | (1,466 | ) | $ | 52,123 | $ | (42,705 | ) | $ | — | $ | 111,805 | $ | 62 | |||||||||||||
Funds held – directly managed | |||||||||||||||||||||||||||||
U.S. states, territories and municipalities | $ | 286 | $ | 25 | $ | — | $ | — | $ | — | $ | 311 | $ | 25 | |||||||||||||||
Other invested assets | 15,165 | (1,087 | ) | 475 | — | — | 14,553 | (1,087 | ) | ||||||||||||||||||||
Funds held – directly managed | $ | 15,451 | $ | (1,062 | ) | $ | 475 | $ | — | $ | — | $ | 14,864 | $ | (1,062 | ) | |||||||||||||
Total | $ | 712,306 | $ | 11,407 | $ | 205,364 | $ | (176,688 | ) | $ | — | $ | 752,389 | $ | 13,225 | ||||||||||||||
-1 | Purchases and issuances of derivatives include issuances of $0.9 million. | ||||||||||||||||||||||||||||
For the nine months ended September 30, 2013 | Balance at | Realized and | Purchases | Settlements | Net | Balance | Change in | ||||||||||||||||||||||
beginning | unrealized | and | and | transfers | at end of | unrealized | |||||||||||||||||||||||
of period | investment | issuances (1) | sales (2) | into/(out of) | period | investment | |||||||||||||||||||||||
(losses) gains | Level 3 | (losses) gains relating to | |||||||||||||||||||||||||||
included in | assets held at | ||||||||||||||||||||||||||||
net income | end of period | ||||||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||||||
U.S. states, territories and municipalities | $ | 233,235 | $ | (5,427 | ) | $ | 61,706 | $ | (379 | ) | $ | — | $ | 289,135 | $ | (5,427 | ) | ||||||||||||
Corporate | 100,904 | (1,277 | ) | — | — | — | 99,627 | (1,277 | ) | ||||||||||||||||||||
Asset-backed securities | 323,134 | 478 | 241,607 | (111,466 | ) | — | 453,753 | (7,182 | ) | ||||||||||||||||||||
Fixed maturities | $ | 657,273 | $ | (6,226 | ) | $ | 303,313 | $ | (111,845 | ) | $ | — | $ | 842,515 | $ | (13,886 | ) | ||||||||||||
Equities | |||||||||||||||||||||||||||||
Finance | $ | 13,477 | $ | 808 | $ | — | $ | — | $ | — | $ | 14,285 | $ | 808 | |||||||||||||||
Communications | — | 103 | 2,040 | — | — | 2,143 | 103 | ||||||||||||||||||||||
Technology | 6,987 | 2,163 | — | — | — | 9,150 | 2,163 | ||||||||||||||||||||||
Mutual funds and exchange traded funds | 7,264 | 410 | — | — | — | 7,674 | 410 | ||||||||||||||||||||||
Equities | $ | 27,728 | $ | 3,484 | $ | 2,040 | $ | — | $ | — | $ | 33,252 | $ | 3,484 | |||||||||||||||
Other invested assets | |||||||||||||||||||||||||||||
Derivatives, net | $ | 3,911 | $ | (6,084 | ) | $ | 121 | $ | 1,105 | $ | — | $ | (947 | ) | $ | (349 | ) | ||||||||||||
Notes and loan receivables and notes securitization | 34,902 | 1,867 | 14,598 | (3,586 | ) | — | 47,781 | 1,867 | |||||||||||||||||||||
Annuities and residuals | 46,882 | 506 | — | (20,449 | ) | — | 26,939 | 481 | |||||||||||||||||||||
Private equities | 1,404 | (3,811 | ) | 24,285 | — | — | 21,878 | (3,811 | ) | ||||||||||||||||||||
Other invested assets | $ | 87,099 | $ | (7,522 | ) | $ | 39,004 | $ | (22,930 | ) | $ | — | $ | 95,651 | $ | (1,812 | ) | ||||||||||||
Funds held – directly managed | |||||||||||||||||||||||||||||
U.S. states, territories and municipalities | $ | 345 | $ | (47 | ) | $ | — | $ | — | $ | — | $ | 298 | $ | (47 | ) | |||||||||||||
Other invested assets | 17,976 | (1,653 | ) | — | (757 | ) | — | 15,566 | (589 | ) | |||||||||||||||||||
Funds held – directly managed | $ | 18,321 | $ | (1,700 | ) | $ | — | $ | (757 | ) | $ | — | $ | 15,864 | $ | (636 | ) | ||||||||||||
Total | $ | 790,421 | $ | (11,964 | ) | $ | 344,357 | $ | (135,532 | ) | $ | — | $ | 987,282 | $ | (12,850 | ) | ||||||||||||
-1 | Purchases and issuances of derivatives include issuances of $0.8 million. | ||||||||||||||||||||||||||||
-2 | Settlements and sales of asset-backed securities, derivatives and annuities and residuals include sales of $13.7 million, $1.4 million and $6.3 million, respectively | ||||||||||||||||||||||||||||
The reconciliations of the beginning and ending balances for all financial instruments measured at fair value using Level 3 inputs for the three months ended September 30, 2014 and 2013, were as follows (in thousands of U.S. dollars): | |||||||||||||||||||||||||||||
For the three months ended September 30, 2014 | Balance at | Realized and | Purchases | Settlements | Net | Balance | Change in | ||||||||||||||||||||||
beginning | unrealized | and | and | transfers | at end | unrealized | |||||||||||||||||||||||
of period | investment | issuances | sales | into/ | of period | investment | |||||||||||||||||||||||
gains (losses) | (out of) | gains (losses) | |||||||||||||||||||||||||||
included in | Level 3 | relating to | |||||||||||||||||||||||||||
net income | assets held at | ||||||||||||||||||||||||||||
end of period | |||||||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||||||
U.S. states, territories and municipalities | $ | 123,617 | $ | 3,636 | $ | 5,695 | $ | (2,205 | ) | $ | — | $ | 130,743 | $ | 3,747 | ||||||||||||||
Asset-backed securities | 489,106 | (4,439 | ) | 11,085 | (37,577 | ) | — | 458,175 | (4,403 | ) | |||||||||||||||||||
Fixed maturities | $ | 612,723 | $ | (803 | ) | $ | 16,780 | $ | (39,782 | ) | $ | — | $ | 588,918 | $ | (656 | ) | ||||||||||||
Equities | |||||||||||||||||||||||||||||
Finance | $ | 19,564 | $ | (428 | ) | $ | — | $ | — | $ | — | $ | 19,136 | $ | (428 | ) | |||||||||||||
Communications | 2,067 | (101 | ) | — | — | — | 1,966 | (101 | ) | ||||||||||||||||||||
Technology | 7,645 | (327 | ) | — | — | — | 7,318 | (327 | ) | ||||||||||||||||||||
Other | 7 | — | — | — | — | 7 | — | ||||||||||||||||||||||
Mutual funds and exchange traded funds | 8,246 | 129 | — | — | — | 8,375 | 129 | ||||||||||||||||||||||
Equities | $ | 37,529 | $ | (727 | ) | $ | — | $ | — | $ | — | $ | 36,802 | $ | (727 | ) | |||||||||||||
Other invested assets | |||||||||||||||||||||||||||||
Derivatives, net | $ | (852 | ) | $ | (1,255 | ) | $ | 57 | $ | 560 | $ | — | $ | (1,490 | ) | $ | (1,255 | ) | |||||||||||
Notes and loan receivables and notes securitization | 38,603 | (1,379 | ) | 29,286 | (21,114 | ) | — | 45,396 | (1,379 | ) | |||||||||||||||||||
Annuities and residuals | 17,134 | (475 | ) | — | (1,779 | ) | — | 14,880 | (474 | ) | |||||||||||||||||||
Private equities | 54,928 | (1,348 | ) | 248 | (809 | ) | — | 53,019 | (1,348 | ) | |||||||||||||||||||
Other invested assets | $ | 109,813 | $ | (4,457 | ) | $ | 29,591 | $ | (23,142 | ) | $ | — | $ | 111,805 | $ | (4,456 | ) | ||||||||||||
Funds held – directly managed | |||||||||||||||||||||||||||||
U.S. states, territories and municipalities | $ | 305 | $ | 6 | $ | — | $ | — | $ | — | $ | 311 | $ | 6 | |||||||||||||||
Other invested assets | 15,800 | (1,467 | ) | 220 | — | — | 14,553 | (1,467 | ) | ||||||||||||||||||||
Funds held – directly managed | $ | 16,105 | $ | (1,461 | ) | $ | 220 | $ | — | $ | — | $ | 14,864 | $ | (1,461 | ) | |||||||||||||
Total | $ | 776,170 | $ | (7,448 | ) | $ | 46,591 | $ | (62,924 | ) | $ | — | $ | 752,389 | $ | (7,300 | ) | ||||||||||||
For the three months ended September 30, 2013 | Balance at | Realized and | Purchases | Settlements | Net | Balance | Change in | ||||||||||||||||||||||
beginning | unrealized | and | and | transfers | at end of | unrealized | |||||||||||||||||||||||
of period | investment | issuances | sales (1) | into/(out of) | period | investment | |||||||||||||||||||||||
gains (losses) | Level 3 | gains (losses) | |||||||||||||||||||||||||||
included in | relating to | ||||||||||||||||||||||||||||
net income | assets held at | ||||||||||||||||||||||||||||
end of period | |||||||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||||||
U.S. states, territories and municipalities | $ | 219,163 | $ | 8,431 | $ | 61,706 | $ | (165 | ) | $ | — | $ | 289,135 | $ | 8,431 | ||||||||||||||
Corporate | 99,896 | (269 | ) | — | — | — | 99,627 | (269 | ) | ||||||||||||||||||||
Asset-backed securities | 426,288 | 4,800 | 86,442 | (63,777 | ) | — | 453,753 | (3,043 | ) | ||||||||||||||||||||
Fixed maturities | $ | 745,347 | $ | 12,962 | $ | 148,148 | $ | (63,942 | ) | $ | — | $ | 842,515 | $ | 5,119 | ||||||||||||||
Equities | |||||||||||||||||||||||||||||
Finance | $ | 13,000 | $ | 1,285 | $ | — | $ | — | $ | — | $ | 14,285 | $ | 1,285 | |||||||||||||||
Communications | 2,040 | 103 | — | — | — | 2,143 | 103 | ||||||||||||||||||||||
Technology | 8,012 | 1,138 | — | — | — | 9,150 | 1,138 | ||||||||||||||||||||||
Mutual funds and exchange traded funds | 7,549 | 125 | — | — | — | 7,674 | 125 | ||||||||||||||||||||||
Equities | $ | 30,601 | $ | 2,651 | $ | — | $ | — | $ | — | $ | 33,252 | $ | 2,651 | |||||||||||||||
Other invested assets | |||||||||||||||||||||||||||||
Derivatives, net | $ | 2,333 | $ | (1,885 | ) | $ | — | $ | (1,395 | ) | $ | — | $ | (947 | ) | $ | (140 | ) | |||||||||||
Notes and loan receivables and notes securitization | 44,224 | 3,250 | 1,248 | (941 | ) | — | 47,781 | 3,250 | |||||||||||||||||||||
Annuities and residuals | 30,555 | 413 | — | (4,029 | ) | — | 26,939 | 166 | |||||||||||||||||||||
Private equities | 21,100 | (299 | ) | 1,077 | — | — | 21,878 | (299 | ) | ||||||||||||||||||||
Other invested assets | $ | 98,212 | $ | 1,479 | $ | 2,325 | $ | (6,365 | ) | $ | — | $ | 95,651 | $ | 2,977 | ||||||||||||||
Funds held – directly managed | |||||||||||||||||||||||||||||
U.S. states, territories and municipalities | $ | 337 | $ | (39 | ) | $ | — | $ | — | $ | — | $ | 298 | $ | (39 | ) | |||||||||||||
Other invested assets | 15,207 | 1,045 | — | (686 | ) | — | 15,566 | 1,045 | |||||||||||||||||||||
Funds held – directly managed | $ | 15,544 | $ | 1,006 | $ | — | $ | (686 | ) | $ | — | $ | 15,864 | $ | 1,006 | ||||||||||||||
Total | $ | 889,704 | $ | 18,098 | $ | 150,473 | $ | (70,993 | ) | $ | — | $ | 987,282 | $ | 11,753 | ||||||||||||||
-1 | Settlements and sales of asset-backed securities and derivatives include sales of $13.7 million and $1.4 million, respectively. | ||||||||||||||||||||||||||||
Fair Value Inputs, Assets, Quantitative Information [Table Text Block] | ' | ||||||||||||||||||||||||||||
The significant unobservable inputs used in the valuation of financial instruments measured at fair value using Level 3 inputs at September 30, 2014 and December 31, 2013 were as follows (fair value in thousands of U.S. dollars): | |||||||||||||||||||||||||||||
30-Sep-14 | Fair value | Valuation techniques | Unobservable inputs | Range | |||||||||||||||||||||||||
(Weighted average) | |||||||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||||||
U.S. states, territories and municipalities | $ | 130,743 | Discounted cash flow | Credit spreads | 2.4% – 10.0% (4.7%) | ||||||||||||||||||||||||
Asset-backed securities – other | 458,175 | Discounted cash flow | Credit spreads | 4.0% – 12.0% (6.9%) | |||||||||||||||||||||||||
Equities | |||||||||||||||||||||||||||||
Finance | 13,582 | Weighted market comparables | Net income multiple | 19.0 (19.0) | |||||||||||||||||||||||||
Tangible book value multiple | 1.3 (1.3) | ||||||||||||||||||||||||||||
Liquidity discount | 25.0% (25.0%) | ||||||||||||||||||||||||||||
Comparable return | -1.4% (-1.4%) | ||||||||||||||||||||||||||||
Finance | 5,554 | Profitability analysis | Projected return on equity | 14.0% (14.0%) | |||||||||||||||||||||||||
Communications | 1,966 | Weighted market comparables | Adjusted earnings multiple | 9.4 (9.4) | |||||||||||||||||||||||||
Comparable return | -10.6% (-10.6%) | ||||||||||||||||||||||||||||
Technology | 7,318 | Weighted market comparables | Revenue multiple | 1.4 (1.4) | |||||||||||||||||||||||||
Adjusted earnings multiple | 8.3 (8.3) | ||||||||||||||||||||||||||||
Other invested assets | |||||||||||||||||||||||||||||
Total return swaps | (1,115 | ) | Discounted cash flow | Credit spreads | 3.5% – 18.5% (14.3%) | ||||||||||||||||||||||||
Notes and loan receivables | 9,589 | Discounted cash flow | Credit spreads | 6.7% (6.7%) | |||||||||||||||||||||||||
Notes and loan receivables | 14,879 | Discounted cash flow | Credit spreads | 17.5% (17.5%) | |||||||||||||||||||||||||
Gross revenue/fair value | 1.3 – 1.6 (1.6) | ||||||||||||||||||||||||||||
Notes securitization | 20,928 | Discounted cash flow | Credit spreads | 3.5% – 6.6% (6.3%) | |||||||||||||||||||||||||
Annuities and residuals | 14,880 | Discounted cash flow | Credit spreads | 5.3% – 8.1% (7.0%) | |||||||||||||||||||||||||
Prepayment speed | 0% – 15.0% (4.8%) | ||||||||||||||||||||||||||||
Constant default rate | 0.3% – 23.0% (7.6%) | ||||||||||||||||||||||||||||
Private equity – direct | 9,582 | Discounted cash flow and weighted market comparables | Net income multiple | 8.3 (8.3) | |||||||||||||||||||||||||
Tangible book value multiple | 1.6 (1.6) | ||||||||||||||||||||||||||||
Recoverability of intangible assets | 0% (0%) | ||||||||||||||||||||||||||||
Private equity funds | 14,422 | Lag reported market value | Net asset value, as reported | 100.0% (100.0%) | |||||||||||||||||||||||||
Market adjustments | -4.6% – 1.9% (-2.3%) | ||||||||||||||||||||||||||||
Private equity – other | 29,015 | Discounted cash flow | Effective yield | 5.8% (5.8%) | |||||||||||||||||||||||||
Funds held – directly managed | |||||||||||||||||||||||||||||
Other invested assets | 14,553 | Lag reported market value | Net asset value, as reported | 100.0% (100.0%) | |||||||||||||||||||||||||
Market adjustments | -12.9% – 0% (-12.1%) | ||||||||||||||||||||||||||||
December 31, 2013 | Fair value | Valuation techniques | Unobservable inputs | Range | |||||||||||||||||||||||||
(Weighted average) | |||||||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||||||
U.S. states, territories and municipalities | $ | 108,380 | Discounted cash flow | Credit spreads | 2.9% – 9.9% (5.3%) | ||||||||||||||||||||||||
Asset-backed securities – interest only | 21 | Discounted cash flow | Credit spreads | 5.5% – 10.7% (8.8%) | |||||||||||||||||||||||||
Asset-backed securities – other | 446,556 | Discounted cash flow | Credit spreads | 4.0% – 12.2% (7.1%) | |||||||||||||||||||||||||
Equities | |||||||||||||||||||||||||||||
Finance | 15,483 | Weighted market comparables | Net income multiple | 14.6 (14.6) | |||||||||||||||||||||||||
Tangible book value multiple | 1.1 (1.1) | ||||||||||||||||||||||||||||
Liquidity discount | 25.0% (25.0%) | ||||||||||||||||||||||||||||
Comparable return | 8.5% (8.5%) | ||||||||||||||||||||||||||||
Finance | 4,724 | Profitability analysis | Projected return on equity | 14.0% (14.0%) | |||||||||||||||||||||||||
Communications | 2,199 | Weighted market comparables | Adjusted earnings multiple | 9.4 (9.4) | |||||||||||||||||||||||||
Comparable return | 0% (0%) | ||||||||||||||||||||||||||||
Technology | 7,752 | Weighted market comparables | Revenue multiple | 0.9 (0.9) | |||||||||||||||||||||||||
Adjusted earnings multiple | 4.4 (4.4) | ||||||||||||||||||||||||||||
Other invested assets | |||||||||||||||||||||||||||||
Total return swaps | (520 | ) | Discounted cash flow | Credit spreads | 2.8% – 18.9% (17.0%) | ||||||||||||||||||||||||
Notes and loan receivables | 21,280 | Discounted cash flow | Credit spreads | 17.5% (17.5%) | |||||||||||||||||||||||||
Gross revenue/fair value | 1.5 (1.5) | ||||||||||||||||||||||||||||
Notes securitization | 20,166 | Discounted cash flow | Credit spreads | 6.2% (6.2%) | |||||||||||||||||||||||||
Annuities and residuals | 24,064 | Discounted cash flow | Credit spreads | 4.0% – 7.9% (5.8%) | |||||||||||||||||||||||||
Prepayment speed | 0% – 15.0% (6.4%) | ||||||||||||||||||||||||||||
Constant default rate | 0.3% – 35.0% (12.4%) | ||||||||||||||||||||||||||||
Private equity – direct | 11,742 | Discounted cash flow and weighted market comparables | Net income multiple | 8.3 (8.3) | |||||||||||||||||||||||||
Tangible book value multiple | 1.6 (1.6) | ||||||||||||||||||||||||||||
Recoverability of intangible assets | 0% (0%) | ||||||||||||||||||||||||||||
Private equity funds | 8,993 | Lag reported market value | Net asset value, as reported | 100.0% (100.0%) | |||||||||||||||||||||||||
Market adjustments | 1.8% – 9.8% (8.3%) | ||||||||||||||||||||||||||||
Private equity – other | 18,396 | Discounted cash flow | Credit spreads | 3.8% (3.8%) | |||||||||||||||||||||||||
Funds held – directly managed | |||||||||||||||||||||||||||||
Other invested assets | 15,165 | Lag reported market value | Net asset value, as reported | 100.0% (100.0%) | |||||||||||||||||||||||||
Market adjustments | -22.9% – 0% (-15.5%) | ||||||||||||||||||||||||||||
Change in fair value of financial instruments subject to fair value option | ' | ||||||||||||||||||||||||||||
Changes in the fair value of the Company’s financial instruments subject to the fair value option during the three months and nine months ended September 30, 2014 and 2013 were as follows (in thousands of U.S. dollars): | |||||||||||||||||||||||||||||
For the three months ended | For the nine months ended | ||||||||||||||||||||||||||||
30-Sep-14 | 30-Sep-13 | 30-Sep-14 | 30-Sep-13 | ||||||||||||||||||||||||||
Fixed maturities and short-term investments | $ | (75,537 | ) | $ | 10,259 | $ | 167,696 | $ | (457,168 | ) | |||||||||||||||||||
Equities | (31,093 | ) | (891 | ) | (14,447 | ) | (8,540 | ) | |||||||||||||||||||||
Other invested assets | (3,497 | ) | 3,021 | 60 | (4,047 | ) | |||||||||||||||||||||||
Funds held – directly managed | (540 | ) | (907 | ) | 937 | (22,322 | ) | ||||||||||||||||||||||
Total | $ | (110,667 | ) | $ | 11,482 | $ | 154,246 | $ | (492,077 | ) | |||||||||||||||||||
Carrying values and fair values of financial instrument liabilities | ' | ||||||||||||||||||||||||||||
The carrying values and fair values of the Senior Notes and CENts at September 30, 2014 and December 31, 2013 were as follows (in thousands of U.S. dollars): | |||||||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||||||||||||||
Debt related to senior notes(1) | $ | 750,000 | $ | 868,702 | $ | 750,000 | $ | 844,331 | |||||||||||||||||||||
Debt related to capital efficient notes(2) | 63,384 | 63,231 | 63,384 | 61,094 | |||||||||||||||||||||||||
-1 | PartnerRe Finance A LLC and PartnerRe Finance B LLC, the issuers of the Senior Notes, do not meet consolidation requirements under U.S. GAAP. Accordingly, the Company shows the related intercompany debt of $750 million in its Condensed Consolidated Balance Sheets at September 30, 2014 and December 31, 2013. | ||||||||||||||||||||||||||||
-2 | PartnerRe Finance II Inc., the issuer of the CENts, does not meet consolidation requirements under U.S. GAAP. Accordingly, the Company shows the related intercompany debt of $71 million in its Condensed Consolidated Balance Sheets at September 30, 2014 and December 31, 2013. |
Derivatives_Tables
Derivatives (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Fair Values and Related Notional Values of Derivatives [Table Text Block] | ' | ||||||||||||||||||||||||
The net fair values and the related net notional values of derivatives included in the Company’s Condensed Consolidated Balance Sheets at September 30, 2014 and December 31, 2013 were as follows (in thousands of U.S. dollars): | |||||||||||||||||||||||||
Asset | Liability | Net derivatives | |||||||||||||||||||||||
derivatives | derivatives | ||||||||||||||||||||||||
30-Sep-14 | at fair value | at fair value | Net notional | Fair value | |||||||||||||||||||||
exposure | |||||||||||||||||||||||||
Foreign exchange forward contracts | $ | 8,456 | $ | (7,904 | ) | $ | 2,441,173 | $ | 552 | ||||||||||||||||
Foreign currency option contracts | 901 | (1,682 | ) | 86,692 | (781 | ) | |||||||||||||||||||
Futures contracts | 3,723 | (37 | ) | 2,677,157 | 3,686 | ||||||||||||||||||||
Insurance-linked securities (1) | — | (375 | ) | 181,238 | (375 | ) | |||||||||||||||||||
Total return swaps | 744 | (1,859 | ) | 42,569 | (1,115 | ) | |||||||||||||||||||
Interest rate swaps (2) | — | (10,200 | ) | 201,659 | (10,200 | ) | |||||||||||||||||||
TBAs | — | (508 | ) | 176,015 | (508 | ) | |||||||||||||||||||
Total derivatives | $ | 13,824 | $ | (22,565 | ) | $ | (8,741 | ) | |||||||||||||||||
Asset | Liability | Net derivatives | |||||||||||||||||||||||
derivatives | derivatives | ||||||||||||||||||||||||
31-Dec-13 | at fair value | at fair value | Net notional | Fair value | |||||||||||||||||||||
exposure | |||||||||||||||||||||||||
Foreign exchange forward contracts | $ | 1,249 | $ | (8,648 | ) | $ | 1,957,409 | $ | (7,399 | ) | |||||||||||||||
Foreign currency option contracts | — | (535 | ) | 87,620 | (535 | ) | |||||||||||||||||||
Futures contracts | 41,031 | — | 3,266,004 | 41,031 | |||||||||||||||||||||
Credit default swaps (protection purchased) | — | (71 | ) | 14,000 | (71 | ) | |||||||||||||||||||
Insurance-linked securities (1) | — | (268 | ) | 168,724 | (268 | ) | |||||||||||||||||||
Total return swaps | 79 | (599 | ) | 31,740 | (520 | ) | |||||||||||||||||||
Interest rate swaps (2) | 2,147 | (2,558 | ) | 202,859 | (411 | ) | |||||||||||||||||||
TBAs | 2 | (1,331 | ) | 183,835 | (1,329 | ) | |||||||||||||||||||
Total derivatives | $ | 44,508 | $ | (14,010 | ) | $ | 30,498 | ||||||||||||||||||
-1 | At September 30, 2014 and December 31, 2013, insurance-linked securities include a longevity swap for which the notional amount is not reflective of the overall potential exposure of the swap. As such, the Company has included the probable maximum loss under the swap within the net notional exposure as an approximation of the notional amount. | ||||||||||||||||||||||||
-2 | The Company enters into interest rate swaps to mitigate notional exposures on certain total return swaps and certain fixed maturities. Only the notional value of interest rate swaps on fixed maturities is presented separately in the table. | ||||||||||||||||||||||||
Gains and Losses on Derivatives not Designated as Hedges [Table Text Block] | ' | ||||||||||||||||||||||||
The gains and losses in the Condensed Consolidated Statements of Operations for derivatives for the three months and nine months ended September 30, 2014 and 2013 were as follows (in thousands of U.S. dollars): | |||||||||||||||||||||||||
For the three months ended | For the nine months ended | ||||||||||||||||||||||||
30-Sep-14 | 30-Sep-13 | 30-Sep-14 | 30-Sep-13 | ||||||||||||||||||||||
Foreign exchange forward contracts | $ | 20,721 | $ | 17 | $ | 29,613 | $ | (36,457 | ) | ||||||||||||||||
Foreign currency option contracts | (721 | ) | (799 | ) | 427 | (4,639 | ) | ||||||||||||||||||
Total included in net foreign exchange gains and losses | $ | 20,000 | $ | (782 | ) | $ | 30,040 | $ | (41,096 | ) | |||||||||||||||
Futures contracts | $ | 5,895 | $ | (30,233 | ) | $ | (44,606 | ) | $ | 55,143 | |||||||||||||||
Credit default swaps (protection purchased) | — | (6 | ) | (3 | ) | (126 | ) | ||||||||||||||||||
Credit default swaps (assumed risks) | — | 7 | — | 122 | |||||||||||||||||||||
Insurance-linked securities | (50 | ) | (110 | ) | 206 | (660 | ) | ||||||||||||||||||
Total return swaps | (1,213 | ) | (1,762 | ) | (595 | ) | (5,421 | ) | |||||||||||||||||
Interest rate swaps | (1,055 | ) | 240 | (9,788 | ) | 3,416 | |||||||||||||||||||
TBAs | 273 | 3,858 | 8,387 | (5,839 | ) | ||||||||||||||||||||
Total included in net realized and unrealized investment gains and losses | $ | 3,850 | $ | (28,006 | ) | $ | (46,399 | ) | $ | 46,635 | |||||||||||||||
Total derivatives | $ | 23,850 | $ | (28,788 | ) | $ | (16,359 | ) | $ | 5,539 | |||||||||||||||
Offsetting Disclosures [Table Text Block] | ' | ||||||||||||||||||||||||
The gross and net fair values of derivatives that are subject to offsetting in the Condensed Consolidated Balance Sheets at September 30, 2014 and December 31, 2013 were as follows (in thousands of U.S. dollars): | |||||||||||||||||||||||||
Gross | Net amounts of | Gross amounts not offset | |||||||||||||||||||||||
amounts | assets/liabilities | in the balance sheet | |||||||||||||||||||||||
offset in the | presented in the | ||||||||||||||||||||||||
30-Sep-14 | Gross | balance sheet | balance sheet | Financial | Cash collateral | Net amount | |||||||||||||||||||
amounts | instruments | received/pledged | |||||||||||||||||||||||
recognized (1) | |||||||||||||||||||||||||
Total derivative assets | $ | 13,824 | $ | — | $ | 13,824 | $ | (344 | ) | $ | (6,964 | ) | $ | 6,516 | |||||||||||
Total derivative liabilities | $ | (22,565 | ) | $ | — | $ | (22,565 | ) | $ | 344 | $ | 1,380 | $ | (20,841 | ) | ||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Total derivative assets | $ | 44,508 | $ | — | $ | 44,508 | $ | (2 | ) | $ | — | $ | 44,506 | ||||||||||||
Total derivative liabilities | $ | (14,010 | ) | $ | — | $ | (14,010 | ) | $ | 2 | $ | 4,341 | $ | (9,667 | ) | ||||||||||
-1 | Amounts include all derivative instruments, irrespective of whether there is a legally enforceable master netting arrangement in place. |
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Net Income Per Share Table [Text Block] | ' | |||||||||||||||
The reconciliation of basic and diluted net income per share for the three months and nine months ended September 30, 2014 and 2013 is as follows (in thousands of U.S. dollars, except share and per share data): | ||||||||||||||||
For the three months ended | For the nine months ended | |||||||||||||||
30-Sep-14 | 30-Sep-13 | 30-Sep-14 | 30-Sep-13 | |||||||||||||
Numerator: | ||||||||||||||||
Net income attributable to PartnerRe Ltd. | $ | 196,398 | $ | 333,423 | $ | 778,082 | $ | 392,221 | ||||||||
Less: preferred dividends | 14,184 | 14,184 | 42,551 | 43,678 | ||||||||||||
Less: loss on redemption of preferred shares | — | — | — | 9,135 | ||||||||||||
Net income attributable to PartnerRe Ltd. common shareholders | $ | 182,214 | $ | 319,239 | $ | 735,531 | $ | 339,408 | ||||||||
Denominator: | ||||||||||||||||
Weighted number of common shares outstanding – basic | 49,514,980 | 53,671,245 | 50,461,749 | 56,176,260 | ||||||||||||
Share options and other (1) | 1,166,345 | 953,906 | 1,104,385 | 1,041,301 | ||||||||||||
Weighted average number of common shares and common share equivalents outstanding – diluted | 50,681,325 | 54,625,151 | 51,566,134 | 57,217,561 | ||||||||||||
Basic net income per share | $ | 3.68 | $ | 5.95 | $ | 14.58 | $ | 6.04 | ||||||||
Diluted net income per share (1) | $ | 3.6 | $ | 5.84 | $ | 14.26 | $ | 5.93 | ||||||||
Anti-dilutive common shares excluded from weighted average number of common shares and common share equivalents outstanding - diluted (1) | 134,470 | 140,516 | 135,681 | 114,195 | ||||||||||||
-1 | Where the exercise price of share based awards is greater than the average market price of the common shares, the common shares are considered anti-dilutive and are excluded from the calculation of weighted average number of common shares and common share equivalents outstanding - diluted. |
Noncontrolling_interests_Table
Noncontrolling interests (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Noncontrolling Interest [Abstract] | ' | |||||||
Redeemable Noncontrolling Interest [Table Text Block] | ' | |||||||
The reconciliation of the beginning and ending balance of the noncontrolling interests in Lorenz Re for the nine months ended September 30, 2014 and 2013 was as follows (in thousands of U.S. dollars): | ||||||||
For the nine months ended | ||||||||
30-Sep-14 | 30-Sep-13 | |||||||
Balance at beginning of period | $ | 56,627 | $ | — | ||||
Net income attributable to noncontrolling interests | 9,914 | 5,296 | ||||||
Distribution to noncontrolling interests | (14,265 | ) | — | |||||
Sale of shares to noncontrolling interests | — | 47,193 | ||||||
Balance at end of period | $ | 52,276 | $ | 52,489 | ||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||||||
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ' | |||||||||||||||||||||||||||||||
Segment reporting table | ' | |||||||||||||||||||||||||||||||
Segment Information | ||||||||||||||||||||||||||||||||
For the three months ended September 30, 2014 | ||||||||||||||||||||||||||||||||
North | Global | Global | Catastrophe | Total | Life | Corporate | Total | |||||||||||||||||||||||||
America | (Non-U.S.) | Specialty | Non-life | and Health | and Other | |||||||||||||||||||||||||||
P&C | segment | segment | ||||||||||||||||||||||||||||||
Gross premiums written | $ | 372 | $ | 162 | $ | 432 | $ | 59 | $ | 1,025 | $ | 336 | $ | — | $ | 1,361 | ||||||||||||||||
Net premiums written | $ | 372 | $ | 164 | $ | 428 | $ | 55 | $ | 1,019 | $ | 325 | $ | (1 | ) | $ | 1,343 | |||||||||||||||
Decrease in unearned premiums | 52 | 38 | 20 | 98 | 208 | 6 | — | 214 | ||||||||||||||||||||||||
Net premiums earned | $ | 424 | $ | 202 | $ | 448 | $ | 153 | $ | 1,227 | $ | 331 | $ | (1 | ) | $ | 1,557 | |||||||||||||||
Losses and loss expenses and life policy benefits | (247 | ) | (123 | ) | (279 | ) | (39 | ) | (688 | ) | (272 | ) | — | (960 | ) | |||||||||||||||||
Acquisition costs | (106 | ) | (56 | ) | (105 | ) | (17 | ) | (284 | ) | (38 | ) | — | (322 | ) | |||||||||||||||||
Technical result | $ | 71 | $ | 23 | $ | 64 | $ | 97 | $ | 255 | $ | 21 | $ | (1 | ) | $ | 275 | |||||||||||||||
Other (loss) income | (1 | ) | 2 | 1 | 2 | |||||||||||||||||||||||||||
Other operating expenses | (62 | ) | (17 | ) | (29 | ) | (108 | ) | ||||||||||||||||||||||||
Underwriting result | $ | 192 | $ | 6 | n/a | $ | 169 | |||||||||||||||||||||||||
Net investment income | 14 | 104 | 118 | |||||||||||||||||||||||||||||
Allocated underwriting result (1) | $ | 20 | n/a | n/a | ||||||||||||||||||||||||||||
Net realized and unrealized investment losses | (34 | ) | (34 | ) | ||||||||||||||||||||||||||||
Interest expense | (12 | ) | (12 | ) | ||||||||||||||||||||||||||||
Amortization of intangible assets | (7 | ) | (7 | ) | ||||||||||||||||||||||||||||
Net foreign exchange gains | 8 | 8 | ||||||||||||||||||||||||||||||
Income tax expense | (46 | ) | (46 | ) | ||||||||||||||||||||||||||||
Interest in earnings of equity method investments | 5 | 5 | ||||||||||||||||||||||||||||||
Net income | n/a | $ | 201 | |||||||||||||||||||||||||||||
Loss ratio (2) | 58.2 | % | 61.1 | % | 62.3 | % | 25.2 | % | 56.1 | % | ||||||||||||||||||||||
Acquisition ratio (3) | 24.9 | 27.6 | 23.5 | 11.7 | 23.1 | |||||||||||||||||||||||||||
Technical ratio (4) | 83.1 | % | 88.7 | % | 85.8 | % | 36.9 | % | 79.2 | % | ||||||||||||||||||||||
Other operating expense ratio (5) | 5 | |||||||||||||||||||||||||||||||
Combined ratio (6) | 84.2 | % | ||||||||||||||||||||||||||||||
-1 | Allocated underwriting result is defined as net premiums earned, other income or loss and allocated net investment income less life policy benefits, acquisition costs and other operating expenses. | |||||||||||||||||||||||||||||||
-2 | Loss ratio is obtained by dividing losses and loss expenses by net premiums earned. | |||||||||||||||||||||||||||||||
-3 | Acquisition ratio is obtained by dividing acquisition costs by net premiums earned. | |||||||||||||||||||||||||||||||
-4 | Technical ratio is defined as the sum of the loss ratio and the acquisition ratio. | |||||||||||||||||||||||||||||||
-5 | Other operating expense ratio is obtained by dividing other operating expenses by net premiums earned. | |||||||||||||||||||||||||||||||
-6 | Combined ratio is defined as the sum of the technical ratio and the other operating expense ratio. | |||||||||||||||||||||||||||||||
Segment Information | ||||||||||||||||||||||||||||||||
For the three months ended September 30, 2013 | ||||||||||||||||||||||||||||||||
North | Global | Global | Catastrophe | Total | Life | Corporate | Total | |||||||||||||||||||||||||
America | (Non-U.S.) | Specialty | Non-life | and Health | and Other | |||||||||||||||||||||||||||
P&C | segment | segment | ||||||||||||||||||||||||||||||
Gross premiums written | $ | 409 | $ | 157 | $ | 396 | $ | 79 | $ | 1,041 | $ | 235 | $ | 5 | $ | 1,281 | ||||||||||||||||
Net premiums written | $ | 408 | $ | 157 | $ | 389 | $ | 72 | $ | 1,026 | $ | 234 | $ | 5 | $ | 1,265 | ||||||||||||||||
Decrease (increase) in unearned premiums | 17 | 38 | (7 | ) | 99 | 147 | 9 | — | 156 | |||||||||||||||||||||||
Net premiums earned | $ | 425 | $ | 195 | $ | 382 | $ | 171 | $ | 1,173 | $ | 243 | $ | 5 | $ | 1,421 | ||||||||||||||||
Losses and loss expenses and life policy benefits | (197 | ) | (90 | ) | (228 | ) | (42 | ) | (557 | ) | (195 | ) | 1 | (751 | ) | |||||||||||||||||
Acquisition costs | (101 | ) | (50 | ) | (92 | ) | (16 | ) | (259 | ) | (24 | ) | — | (283 | ) | |||||||||||||||||
Technical result | $ | 127 | $ | 55 | $ | 62 | $ | 113 | $ | 357 | $ | 24 | $ | 6 | $ | 387 | ||||||||||||||||
Other income | 2 | 3 | — | 5 | ||||||||||||||||||||||||||||
Other operating expenses | (62 | ) | (17 | ) | (29 | ) | (108 | ) | ||||||||||||||||||||||||
Underwriting result | $ | 297 | $ | 10 | n/a | $ | 284 | |||||||||||||||||||||||||
Net investment income | 15 | 107 | 122 | |||||||||||||||||||||||||||||
Allocated underwriting result | $ | 25 | n/a | n/a | ||||||||||||||||||||||||||||
Net realized and unrealized investment gains | 16 | 16 | ||||||||||||||||||||||||||||||
Interest expense | (12 | ) | (12 | ) | ||||||||||||||||||||||||||||
Amortization of intangible assets | (7 | ) | (7 | ) | ||||||||||||||||||||||||||||
Net foreign exchange losses | (1 | ) | (1 | ) | ||||||||||||||||||||||||||||
Income tax expense | (70 | ) | (70 | ) | ||||||||||||||||||||||||||||
Interest in earnings of equity method investments | 6 | 6 | ||||||||||||||||||||||||||||||
Net income | n/a | $ | 338 | |||||||||||||||||||||||||||||
Loss ratio | 46.3 | % | 46 | % | 59.8 | % | 24.5 | % | 47.5 | % | ||||||||||||||||||||||
Acquisition ratio | 23.9 | 25.7 | 24 | 9 | 22.1 | |||||||||||||||||||||||||||
Technical ratio | 70.2 | % | 71.7 | % | 83.8 | % | 33.5 | % | 69.6 | % | ||||||||||||||||||||||
Other operating expense ratio | 5.3 | |||||||||||||||||||||||||||||||
Combined ratio | 74.9 | % | ||||||||||||||||||||||||||||||
Segment Information | ||||||||||||||||||||||||||||||||
For the nine months ended September 30, 2014 | ||||||||||||||||||||||||||||||||
North | Global | Global | Catastrophe | Total | Life | Corporate | Total | |||||||||||||||||||||||||
America | (Non-U.S.) | Specialty | Non-life | and Health | and Other | |||||||||||||||||||||||||||
P&C | segment | segment | ||||||||||||||||||||||||||||||
Gross premiums written | $ | 1,302 | $ | 682 | $ | 1,348 | $ | 412 | $ | 3,744 | $ | 951 | $ | — | $ | 4,695 | ||||||||||||||||
Net premiums written | $ | 1,291 | $ | 672 | $ | 1,250 | $ | 370 | $ | 3,583 | $ | 918 | $ | (1 | ) | $ | 4,500 | |||||||||||||||
Increase in unearned premiums | (99 | ) | (104 | ) | (42 | ) | (78 | ) | (323 | ) | (14 | ) | — | (337 | ) | |||||||||||||||||
Net premiums earned | $ | 1,192 | $ | 568 | $ | 1,208 | $ | 292 | $ | 3,260 | $ | 904 | $ | (1 | ) | $ | 4,163 | |||||||||||||||
Losses and loss expenses and life policy benefits | (747 | ) | (319 | ) | (749 | ) | (38 | ) | (1,853 | ) | (740 | ) | — | (2,593 | ) | |||||||||||||||||
Acquisition costs | (299 | ) | (162 | ) | (283 | ) | (34 | ) | (778 | ) | (111 | ) | — | (889 | ) | |||||||||||||||||
Technical result | $ | 146 | $ | 87 | $ | 176 | $ | 220 | $ | 629 | $ | 53 | $ | (1 | ) | $ | 681 | |||||||||||||||
Other income | 1 | 6 | 5 | 12 | ||||||||||||||||||||||||||||
Other operating expenses | (187 | ) | (52 | ) | (88 | ) | (327 | ) | ||||||||||||||||||||||||
Underwriting result | $ | 443 | $ | 7 | n/a | $ | 366 | |||||||||||||||||||||||||
Net investment income | 45 | 320 | 365 | |||||||||||||||||||||||||||||
Allocated underwriting result | $ | 52 | n/a | n/a | ||||||||||||||||||||||||||||
Net realized and unrealized investment gains | 273 | 273 | ||||||||||||||||||||||||||||||
Interest expense | (36 | ) | (36 | ) | ||||||||||||||||||||||||||||
Amortization of intangible assets | (21 | ) | (21 | ) | ||||||||||||||||||||||||||||
Net foreign exchange gains | 11 | 11 | ||||||||||||||||||||||||||||||
Income tax expense | (186 | ) | (186 | ) | ||||||||||||||||||||||||||||
Interest in earnings of equity method investments | 16 | 16 | ||||||||||||||||||||||||||||||
Net income | n/a | $ | 788 | |||||||||||||||||||||||||||||
Loss ratio | 62.6 | % | 56.2 | % | 62.1 | % | 12.9 | % | 56.8 | % | ||||||||||||||||||||||
Acquisition ratio | 25.1 | 28.5 | 23.4 | 11.5 | 23.9 | |||||||||||||||||||||||||||
Technical ratio | 87.7 | % | 84.7 | % | 85.5 | % | 24.4 | % | 80.7 | % | ||||||||||||||||||||||
Other operating expense ratio | 5.7 | |||||||||||||||||||||||||||||||
Combined ratio | 86.4 | % | ||||||||||||||||||||||||||||||
Segment Information | ||||||||||||||||||||||||||||||||
For the nine months ended September 30, 2013 | ||||||||||||||||||||||||||||||||
North | Global | Global | Catastrophe | Total | Life | Corporate | Total | |||||||||||||||||||||||||
America | (Non-U.S.) | Specialty | Non-life | and Health | and Other | |||||||||||||||||||||||||||
P&C | segment | segment | ||||||||||||||||||||||||||||||
Gross premiums written | $ | 1,228 | $ | 690 | $ | 1,253 | $ | 478 | $ | 3,649 | $ | 722 | $ | 8 | $ | 4,379 | ||||||||||||||||
Net premiums written | $ | 1,215 | $ | 682 | $ | 1,159 | $ | 433 | $ | 3,489 | $ | 715 | $ | 7 | $ | 4,211 | ||||||||||||||||
Increase in unearned premiums | (99 | ) | (152 | ) | (68 | ) | (97 | ) | (416 | ) | (17 | ) | (1 | ) | (434 | ) | ||||||||||||||||
Net premiums earned | $ | 1,116 | $ | 530 | $ | 1,091 | $ | 336 | $ | 3,073 | $ | 698 | $ | 6 | $ | 3,777 | ||||||||||||||||
Losses and loss expenses and life policy benefits | (682 | ) | (263 | ) | (697 | ) | (81 | ) | (1,723 | ) | (558 | ) | 2 | (2,279 | ) | |||||||||||||||||
Acquisition costs | (253 | ) | (134 | ) | (257 | ) | (33 | ) | (677 | ) | (82 | ) | — | (759 | ) | |||||||||||||||||
Technical result | $ | 181 | $ | 133 | $ | 137 | $ | 222 | $ | 673 | $ | 58 | $ | 8 | $ | 739 | ||||||||||||||||
Other income | 3 | 9 | 1 | 13 | ||||||||||||||||||||||||||||
Other operating expenses | (189 | ) | (52 | ) | (128 | ) | (369 | ) | ||||||||||||||||||||||||
Underwriting result | $ | 487 | $ | 15 | n/a | $ | 383 | |||||||||||||||||||||||||
Net investment income | 45 | 325 | 370 | |||||||||||||||||||||||||||||
Allocated underwriting result | $ | 60 | n/a | n/a | ||||||||||||||||||||||||||||
Net realized and unrealized investment losses | (260 | ) | (260 | ) | ||||||||||||||||||||||||||||
Interest expense | (37 | ) | (37 | ) | ||||||||||||||||||||||||||||
Amortization of intangible assets | (21 | ) | (21 | ) | ||||||||||||||||||||||||||||
Net foreign exchange losses | (10 | ) | (10 | ) | ||||||||||||||||||||||||||||
Income tax expense | (37 | ) | (37 | ) | ||||||||||||||||||||||||||||
Interest in earnings of equity method investments | 10 | 10 | ||||||||||||||||||||||||||||||
Net income | n/a | $ | 398 | |||||||||||||||||||||||||||||
Loss ratio | 61.1 | % | 49.7 | % | 63.9 | % | 24.2 | % | 56.1 | % | ||||||||||||||||||||||
Acquisition ratio | 22.7 | 25.2 | 23.6 | 9.7 | 22 | |||||||||||||||||||||||||||
Technical ratio | 83.8 | % | 74.9 | % | 87.5 | % | 33.9 | % | 78.1 | % | ||||||||||||||||||||||
Other operating expense ratio | 6.1 | |||||||||||||||||||||||||||||||
Combined ratio | 84.2 | % | ||||||||||||||||||||||||||||||
Fair_Value_Details_Hierarchy_t
Fair Value (Details - Hierarchy table) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | $13,950,629 | $13,593,303 |
Short-term investments | 37,016 | 13,546 |
Equities | 1,001,307 | 1,221,053 |
Other invested assets | 104,554 | 135,139 |
Funds held - directly managed | 478,968 | 561,306 |
Total | 15,572,474 | 15,524,347 |
Short-term investments [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Funds held - directly managed | ' | 2,426 |
Derivative assets [Member] | Foreign exchange forward contracts [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | 8,456 | 1,249 |
Derivative assets [Member] | Foreign currency option contracts [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | 901 | ' |
Derivative assets [Member] | Futures contracts [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | 3,723 | 41,031 |
Derivative assets [Member] | Total return swaps [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | 744 | 79 |
Derivative assets [Member] | Interest rate swaps [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | ' | 2,147 |
Derivative assets [Member] | TBAs [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | ' | 2 |
Derivative liabilities [Member] | Foreign exchange forward contracts [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | -7,904 | -8,648 |
Derivative liabilities [Member] | Foreign currency option contracts [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | -1,682 | -535 |
Derivative liabilities [Member] | Futures contracts [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | -37 | ' |
Derivative liabilities [Member] | Credit default swaps (protection purchased) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | ' | -71 |
Derivative liabilities [Member] | Insurance-linked securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | -375 | -268 |
Derivative liabilities [Member] | Total return swaps [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | -1,859 | -599 |
Derivative liabilities [Member] | Interest rate swaps [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | -10,200 | -2,558 |
Derivative liabilities [Member] | TBAs [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | -508 | -1,331 |
Notes And Loan Receivables And Notes Securitization [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | 45,396 | 41,446 |
Annuities and residuals [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | 14,880 | 24,064 |
Private equities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | 53,019 | 39,131 |
Other invested assets funds held directly managed [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Funds held - directly managed | 14,553 | 15,165 |
Real estate investment trust [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 213,461 | 175,796 |
Energy [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 155,113 | 159,509 |
Insurance [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 127,740 | 144,020 |
Finance [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 97,577 | 138,707 |
Consumer noncyclical [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 91,334 | 108,663 |
Communications [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 74,585 | 72,991 |
Technology [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 55,166 | 61,520 |
Industrials [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 43,930 | 47,677 |
Consumer cyclical [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 36,252 | 45,915 |
Utilities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 32,012 | 37,151 |
Other equities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 17,379 | 19,993 |
Mutual funds and exchange traded funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 56,758 | 209,111 |
US Government and government sponsored enterpises [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 2,184,417 | 1,623,859 |
Funds held - directly managed | 149,273 | 157,296 |
US states, territories and municipalities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 320,498 | 124,587 |
Funds held - directly managed | 311 | 286 |
Non US sovereign government supranational and government related [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 2,209,335 | 2,353,699 |
Funds held - directly managed | 123,210 | 137,186 |
Corporate [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 5,706,486 | 6,048,663 |
Funds held - directly managed | 191,621 | 248,947 |
Asset-backed securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 1,147,784 | 1,138,231 |
Residential mortgage-backed securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 2,331,870 | 2,268,517 |
Other mortgage-backed securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 50,239 | 35,747 |
Quoted prices in active markets for identical assets (Level 1) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 0 | 0 |
Short-term investments | 0 | 0 |
Equities | 956,074 | 1,034,130 |
Other invested assets | 3,686 | 41,031 |
Funds held - directly managed | 0 | 0 |
Total | 959,760 | 1,075,161 |
Quoted prices in active markets for identical assets (Level 1) | Short-term investments [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Funds held - directly managed | ' | 0 |
Quoted prices in active markets for identical assets (Level 1) | Derivative assets [Member] | Foreign exchange forward contracts [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Derivative assets [Member] | Foreign currency option contracts [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | 0 | ' |
Quoted prices in active markets for identical assets (Level 1) | Derivative assets [Member] | Futures contracts [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | 3,723 | 41,031 |
Quoted prices in active markets for identical assets (Level 1) | Derivative assets [Member] | Total return swaps [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Derivative assets [Member] | Interest rate swaps [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | ' | 0 |
Quoted prices in active markets for identical assets (Level 1) | Derivative assets [Member] | TBAs [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | ' | 0 |
Quoted prices in active markets for identical assets (Level 1) | Derivative liabilities [Member] | Foreign exchange forward contracts [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Derivative liabilities [Member] | Foreign currency option contracts [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Derivative liabilities [Member] | Futures contracts [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | -37 | ' |
Quoted prices in active markets for identical assets (Level 1) | Derivative liabilities [Member] | Credit default swaps (protection purchased) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | ' | 0 |
Quoted prices in active markets for identical assets (Level 1) | Derivative liabilities [Member] | Insurance-linked securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Derivative liabilities [Member] | Total return swaps [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Derivative liabilities [Member] | Interest rate swaps [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Derivative liabilities [Member] | TBAs [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Notes And Loan Receivables And Notes Securitization [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Annuities and residuals [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Private equities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Other invested assets funds held directly managed [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Funds held - directly managed | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Real estate investment trust [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 213,461 | 175,796 |
Quoted prices in active markets for identical assets (Level 1) | Energy [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 155,113 | 159,509 |
Quoted prices in active markets for identical assets (Level 1) | Insurance [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 127,740 | 144,020 |
Quoted prices in active markets for identical assets (Level 1) | Finance [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 70,010 | 108,944 |
Quoted prices in active markets for identical assets (Level 1) | Consumer noncyclical [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 91,334 | 108,663 |
Quoted prices in active markets for identical assets (Level 1) | Communications [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 72,619 | 70,792 |
Quoted prices in active markets for identical assets (Level 1) | Technology [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 47,848 | 53,768 |
Quoted prices in active markets for identical assets (Level 1) | Industrials [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 43,930 | 47,677 |
Quoted prices in active markets for identical assets (Level 1) | Consumer cyclical [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 36,252 | 45,915 |
Quoted prices in active markets for identical assets (Level 1) | Utilities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 32,012 | 37,151 |
Quoted prices in active markets for identical assets (Level 1) | Other equities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 17,372 | 19,993 |
Quoted prices in active markets for identical assets (Level 1) | Mutual funds and exchange traded funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 48,383 | 61,902 |
Quoted prices in active markets for identical assets (Level 1) | US Government and government sponsored enterpises [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 0 | 0 |
Funds held - directly managed | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | US states, territories and municipalities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 0 | 0 |
Funds held - directly managed | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Non US sovereign government supranational and government related [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 0 | 0 |
Funds held - directly managed | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Corporate [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 0 | 0 |
Funds held - directly managed | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Asset-backed securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Residential mortgage-backed securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Other mortgage-backed securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 0 | 0 |
Significant other observable inputs (Level 2) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 13,361,711 | 13,038,346 |
Short-term investments | 37,016 | 13,546 |
Equities | 8,431 | 148,878 |
Other invested assets | -10,937 | -9,745 |
Funds held - directly managed | 464,104 | 545,855 |
Total | 13,860,325 | 13,736,880 |
Significant other observable inputs (Level 2) | Short-term investments [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Funds held - directly managed | ' | 2,426 |
Significant other observable inputs (Level 2) | Derivative assets [Member] | Foreign exchange forward contracts [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | 8,456 | 1,249 |
Significant other observable inputs (Level 2) | Derivative assets [Member] | Foreign currency option contracts [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | 901 | ' |
Significant other observable inputs (Level 2) | Derivative assets [Member] | Futures contracts [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | 0 | 0 |
Significant other observable inputs (Level 2) | Derivative assets [Member] | Total return swaps [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | 0 | 0 |
Significant other observable inputs (Level 2) | Derivative assets [Member] | Interest rate swaps [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | ' | 2,147 |
Significant other observable inputs (Level 2) | Derivative assets [Member] | TBAs [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | ' | 2 |
Significant other observable inputs (Level 2) | Derivative liabilities [Member] | Foreign exchange forward contracts [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | -7,904 | -8,648 |
Significant other observable inputs (Level 2) | Derivative liabilities [Member] | Foreign currency option contracts [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | -1,682 | -535 |
Significant other observable inputs (Level 2) | Derivative liabilities [Member] | Futures contracts [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | 0 | ' |
Significant other observable inputs (Level 2) | Derivative liabilities [Member] | Credit default swaps (protection purchased) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | ' | -71 |
Significant other observable inputs (Level 2) | Derivative liabilities [Member] | Insurance-linked securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | 0 | 0 |
Significant other observable inputs (Level 2) | Derivative liabilities [Member] | Total return swaps [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | 0 | 0 |
Significant other observable inputs (Level 2) | Derivative liabilities [Member] | Interest rate swaps [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | -10,200 | -2,558 |
Significant other observable inputs (Level 2) | Derivative liabilities [Member] | TBAs [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | -508 | -1,331 |
Significant other observable inputs (Level 2) | Notes And Loan Receivables And Notes Securitization [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | 0 | 0 |
Significant other observable inputs (Level 2) | Annuities and residuals [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | 0 | 0 |
Significant other observable inputs (Level 2) | Private equities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | 0 | 0 |
Significant other observable inputs (Level 2) | Other invested assets funds held directly managed [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Funds held - directly managed | 0 | 0 |
Significant other observable inputs (Level 2) | Real estate investment trust [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 0 | 0 |
Significant other observable inputs (Level 2) | Energy [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 0 | 0 |
Significant other observable inputs (Level 2) | Insurance [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 0 | 0 |
Significant other observable inputs (Level 2) | Finance [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 8,431 | 9,556 |
Significant other observable inputs (Level 2) | Consumer noncyclical [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 0 | 0 |
Significant other observable inputs (Level 2) | Communications [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 0 | 0 |
Significant other observable inputs (Level 2) | Technology [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 0 | 0 |
Significant other observable inputs (Level 2) | Industrials [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 0 | 0 |
Significant other observable inputs (Level 2) | Consumer cyclical [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 0 | 0 |
Significant other observable inputs (Level 2) | Utilities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 0 | 0 |
Significant other observable inputs (Level 2) | Other equities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 0 | 0 |
Significant other observable inputs (Level 2) | Mutual funds and exchange traded funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 0 | 139,322 |
Significant other observable inputs (Level 2) | US Government and government sponsored enterpises [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 2,184,417 | 1,623,859 |
Funds held - directly managed | 149,273 | 157,296 |
Significant other observable inputs (Level 2) | US states, territories and municipalities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 189,755 | 16,207 |
Funds held - directly managed | 0 | 0 |
Significant other observable inputs (Level 2) | Non US sovereign government supranational and government related [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 2,209,335 | 2,353,699 |
Funds held - directly managed | 123,210 | 137,186 |
Significant other observable inputs (Level 2) | Corporate [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 5,706,486 | 6,048,663 |
Funds held - directly managed | 191,621 | 248,947 |
Significant other observable inputs (Level 2) | Asset-backed securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 689,609 | 691,654 |
Significant other observable inputs (Level 2) | Residential mortgage-backed securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 2,331,870 | 2,268,517 |
Significant other observable inputs (Level 2) | Other mortgage-backed securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 50,239 | 35,747 |
Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 588,918 | 554,957 |
Short-term investments | 0 | 0 |
Equities | 36,802 | 38,045 |
Other invested assets | 111,805 | 103,853 |
Funds held - directly managed | 14,864 | 15,451 |
Total | 752,389 | 712,306 |
Significant unobservable inputs (Level 3) [Member] | Short-term investments [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Funds held - directly managed | ' | 0 |
Significant unobservable inputs (Level 3) [Member] | Derivative assets [Member] | Foreign exchange forward contracts [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | 0 | 0 |
Significant unobservable inputs (Level 3) [Member] | Derivative assets [Member] | Foreign currency option contracts [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | 0 | ' |
Significant unobservable inputs (Level 3) [Member] | Derivative assets [Member] | Futures contracts [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | 0 | 0 |
Significant unobservable inputs (Level 3) [Member] | Derivative assets [Member] | Total return swaps [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | 744 | 79 |
Significant unobservable inputs (Level 3) [Member] | Derivative assets [Member] | Interest rate swaps [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | ' | 0 |
Significant unobservable inputs (Level 3) [Member] | Derivative assets [Member] | TBAs [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | ' | 0 |
Significant unobservable inputs (Level 3) [Member] | Derivative liabilities [Member] | Foreign exchange forward contracts [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | 0 | 0 |
Significant unobservable inputs (Level 3) [Member] | Derivative liabilities [Member] | Foreign currency option contracts [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | 0 | 0 |
Significant unobservable inputs (Level 3) [Member] | Derivative liabilities [Member] | Futures contracts [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | 0 | ' |
Significant unobservable inputs (Level 3) [Member] | Derivative liabilities [Member] | Credit default swaps (protection purchased) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | ' | 0 |
Significant unobservable inputs (Level 3) [Member] | Derivative liabilities [Member] | Insurance-linked securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | -375 | -268 |
Significant unobservable inputs (Level 3) [Member] | Derivative liabilities [Member] | Total return swaps [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | -1,859 | -599 |
Significant unobservable inputs (Level 3) [Member] | Derivative liabilities [Member] | Interest rate swaps [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | 0 | 0 |
Significant unobservable inputs (Level 3) [Member] | Derivative liabilities [Member] | TBAs [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | 0 | 0 |
Significant unobservable inputs (Level 3) [Member] | Notes And Loan Receivables And Notes Securitization [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | 45,396 | 41,446 |
Significant unobservable inputs (Level 3) [Member] | Annuities and residuals [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | 14,880 | 24,064 |
Significant unobservable inputs (Level 3) [Member] | Private equities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other invested assets | 53,019 | 39,131 |
Significant unobservable inputs (Level 3) [Member] | Other invested assets funds held directly managed [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Funds held - directly managed | 14,553 | 15,165 |
Significant unobservable inputs (Level 3) [Member] | Real estate investment trust [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 0 | 0 |
Significant unobservable inputs (Level 3) [Member] | Energy [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 0 | 0 |
Significant unobservable inputs (Level 3) [Member] | Insurance [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 0 | 0 |
Significant unobservable inputs (Level 3) [Member] | Finance [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 19,136 | 20,207 |
Significant unobservable inputs (Level 3) [Member] | Consumer noncyclical [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 0 | 0 |
Significant unobservable inputs (Level 3) [Member] | Communications [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 1,966 | 2,199 |
Significant unobservable inputs (Level 3) [Member] | Technology [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 7,318 | 7,752 |
Significant unobservable inputs (Level 3) [Member] | Industrials [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 0 | 0 |
Significant unobservable inputs (Level 3) [Member] | Consumer cyclical [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 0 | 0 |
Significant unobservable inputs (Level 3) [Member] | Utilities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 0 | 0 |
Significant unobservable inputs (Level 3) [Member] | Other equities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 7 | 0 |
Significant unobservable inputs (Level 3) [Member] | Mutual funds and exchange traded funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equities | 8,375 | 7,887 |
Significant unobservable inputs (Level 3) [Member] | US Government and government sponsored enterpises [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 0 | 0 |
Funds held - directly managed | 0 | 0 |
Significant unobservable inputs (Level 3) [Member] | US states, territories and municipalities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 130,743 | 108,380 |
Funds held - directly managed | 311 | 286 |
Significant unobservable inputs (Level 3) [Member] | Non US sovereign government supranational and government related [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 0 | 0 |
Funds held - directly managed | 0 | 0 |
Significant unobservable inputs (Level 3) [Member] | Corporate [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 0 | 0 |
Funds held - directly managed | 0 | 0 |
Significant unobservable inputs (Level 3) [Member] | Asset-backed securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 458,175 | 446,577 |
Significant unobservable inputs (Level 3) [Member] | Residential mortgage-backed securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 0 | 0 |
Significant unobservable inputs (Level 3) [Member] | Other mortgage-backed securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | $0 | $0 |
Fair_Value_Details_narrative_i
Fair Value (Details - narrative items) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
Fair Value - Other Details [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | $1,519,287,000 | $1,496,485,000 | $1,551,062,000 | $1,121,705,000 |
Accrued investment income | 171,050,000 | 185,717,000 | ' | ' |
Fair Value Assets Level 2 To Level 1 Transfers Amount | 0 | ' | 0 | ' |
Fair Value Assets Level 2 To Level 1 Transfers Amount 2 | 0 | ' | 0 | ' |
Funds held directly managed [Member] | ' | ' | ' | ' |
Fair Value - Other Details [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 53,100,000 | 84,800,000 | ' | ' |
Accrued investment income | 6,300,000 | 6,700,000 | ' | ' |
Other net assets | 112,000,000 | 133,000,000 | ' | ' |
Trading securities [Member] | Other invested assets [Member] | ' | ' | ' | ' |
Fair Value - Other Details [Line Items] | ' | ' | ' | ' |
Carrying amount of other invested assets not at fair value | $194,700,000 | $185,800,000 | ' | ' |
Fair_Value_Details_Level_3_rol
Fair Value (Details - Level 3 rollforward) (USD $) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | |||
Balance, beginning of year | $776,170,000 | $889,704,000 | $712,306,000 | $790,421,000 | |||
Realized and unrealized investment gains (losses) included in net income | -7,448,000 | 18,098,000 | 11,407,000 | -11,964,000 | |||
Purchases | 46,591,000 | 150,473,000 | 205,364,000 | 344,357,000 | |||
Settlements | -62,924,000 | -70,993,000 | -176,688,000 | -135,532,000 | |||
Net transfers into/ (out of) Level 3 | 0 | 0 | 0 | 0 | |||
Balance, end of year | 752,389,000 | 987,282,000 | 752,389,000 | 987,282,000 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of period | -7,300,000 | 11,753,000 | 13,225,000 | -12,850,000 | |||
Fixed maturities [Member] | ' | ' | ' | ' | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | |||
Balance, beginning of year | 612,723,000 | 745,347,000 | 554,957,000 | 657,273,000 | |||
Realized and unrealized investment gains (losses) included in net income | -803,000 | 12,962,000 | 15,186,000 | -6,226,000 | |||
Purchases | 16,780,000 | 148,148,000 | 152,758,000 | 303,313,000 | |||
Settlements | -39,782,000 | -63,942,000 | -133,983,000 | -111,845,000 | |||
Net transfers into/ (out of) Level 3 | 0 | 0 | 0 | 0 | |||
Balance, end of year | 588,918,000 | 842,515,000 | 588,918,000 | 842,515,000 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of period | -656,000 | 5,119,000 | 15,476,000 | -13,886,000 | |||
Fixed maturities [Member] | US states, territories and municipalities [Member] | ' | ' | ' | ' | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | |||
Balance, beginning of year | 123,617,000 | 219,163,000 | 108,380,000 | 233,235,000 | |||
Realized and unrealized investment gains (losses) included in net income | 3,636,000 | 8,431,000 | 10,488,000 | -5,427,000 | |||
Purchases | 5,695,000 | 61,706,000 | 14,220,000 | 61,706,000 | |||
Settlements | -2,205,000 | -165,000 | -2,345,000 | -379,000 | |||
Net transfers into/ (out of) Level 3 | 0 | 0 | 0 | 0 | |||
Balance, end of year | 130,743,000 | 289,135,000 | 130,743,000 | 289,135,000 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of period | 3,747,000 | 8,431,000 | 10,483,000 | -5,427,000 | |||
Fixed maturities [Member] | Corporate [Member] | ' | ' | ' | ' | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | |||
Balance, beginning of year | ' | 99,896,000 | ' | 100,904,000 | |||
Realized and unrealized investment gains (losses) included in net income | ' | -269,000 | ' | -1,277,000 | |||
Purchases | ' | 0 | ' | 0 | |||
Settlements | ' | 0 | ' | 0 | |||
Net transfers into/ (out of) Level 3 | ' | 0 | ' | 0 | |||
Balance, end of year | ' | 99,627,000 | ' | 99,627,000 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of period | ' | -269,000 | ' | -1,277,000 | |||
Fixed maturities [Member] | Asset-backed securities [Member] | ' | ' | ' | ' | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | |||
Balance, beginning of year | 489,106,000 | 426,288,000 | 446,577,000 | 323,134,000 | |||
Realized and unrealized investment gains (losses) included in net income | -4,439,000 | 4,800,000 | 4,698,000 | 478,000 | |||
Purchases | 11,085,000 | 86,442,000 | 138,538,000 | 241,607,000 | |||
Settlements | -37,577,000 | -63,777,000 | [1] | -131,638,000 | -111,466,000 | [2] | |
Sales | ' | -13,700,000 | ' | -13,700,000 | |||
Net transfers into/ (out of) Level 3 | 0 | 0 | 0 | 0 | |||
Balance, end of year | 458,175,000 | 453,753,000 | 458,175,000 | 453,753,000 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of period | -4,403,000 | -3,043,000 | 4,993,000 | -7,182,000 | |||
Equities [Member] | ' | ' | ' | ' | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | |||
Balance, beginning of year | 37,529,000 | 30,601,000 | 38,045,000 | 27,728,000 | |||
Realized and unrealized investment gains (losses) included in net income | -727,000 | 2,651,000 | -1,251,000 | 3,484,000 | |||
Purchases | 0 | 0 | 8,000 | 2,040,000 | |||
Settlements | 0 | 0 | 0 | 0 | |||
Net transfers into/ (out of) Level 3 | 0 | 0 | 0 | 0 | |||
Balance, end of year | 36,802,000 | 33,252,000 | 36,802,000 | 33,252,000 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of period | -727,000 | 2,651,000 | -1,251,000 | 3,484,000 | |||
Equities [Member] | Finance [Member] | ' | ' | ' | ' | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | |||
Balance, beginning of year | 19,564,000 | 13,000,000 | 20,207,000 | 13,477,000 | |||
Realized and unrealized investment gains (losses) included in net income | -428,000 | 1,285,000 | -1,071,000 | 808,000 | |||
Purchases | 0 | 0 | 0 | 0 | |||
Settlements | 0 | 0 | 0 | 0 | |||
Net transfers into/ (out of) Level 3 | 0 | 0 | 0 | 0 | |||
Balance, end of year | 19,136,000 | 14,285,000 | 19,136,000 | 14,285,000 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of period | -428,000 | 1,285,000 | -1,071,000 | 808,000 | |||
Equities [Member] | Communications [Member] | ' | ' | ' | ' | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | |||
Balance, beginning of year | 2,067,000 | 2,040,000 | 2,199,000 | 0 | |||
Realized and unrealized investment gains (losses) included in net income | -101,000 | 103,000 | -233,000 | 103,000 | |||
Purchases | 0 | 0 | 0 | 2,040,000 | |||
Settlements | 0 | 0 | 0 | 0 | |||
Net transfers into/ (out of) Level 3 | 0 | 0 | 0 | 0 | |||
Balance, end of year | 1,966,000 | 2,143,000 | 1,966,000 | 2,143,000 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of period | -101,000 | 103,000 | -233,000 | 103,000 | |||
Equities [Member] | Technology [Member] | ' | ' | ' | ' | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | |||
Balance, beginning of year | 7,645,000 | 8,012,000 | 7,752,000 | 6,987,000 | |||
Realized and unrealized investment gains (losses) included in net income | -327,000 | 1,138,000 | -434,000 | 2,163,000 | |||
Purchases | 0 | 0 | 0 | 0 | |||
Settlements | 0 | 0 | 0 | 0 | |||
Net transfers into/ (out of) Level 3 | 0 | 0 | 0 | 0 | |||
Balance, end of year | 7,318,000 | 9,150,000 | 7,318,000 | 9,150,000 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of period | -327,000 | 1,138,000 | -434,000 | 2,163,000 | |||
Equities [Member] | Other equities [Member] | ' | ' | ' | ' | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | |||
Balance, beginning of year | 7,000 | ' | 0 | ' | |||
Realized and unrealized investment gains (losses) included in net income | 0 | ' | -1,000 | ' | |||
Purchases | 0 | ' | 8,000 | ' | |||
Settlements | 0 | ' | 0 | ' | |||
Net transfers into/ (out of) Level 3 | 0 | ' | 0 | ' | |||
Balance, end of year | 7,000 | ' | 7,000 | ' | |||
Change in unrealized investment gains (losses) relating to assets held at the end of period | 0 | ' | -1,000 | ' | |||
Equities [Member] | Mutual funds and exchange traded funds [Member] | ' | ' | ' | ' | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | |||
Balance, beginning of year | 8,246,000 | 7,549,000 | 7,887,000 | 7,264,000 | |||
Realized and unrealized investment gains (losses) included in net income | 129,000 | 125,000 | 488,000 | 410,000 | |||
Purchases | 0 | 0 | 0 | 0 | |||
Settlements | 0 | 0 | 0 | 0 | |||
Net transfers into/ (out of) Level 3 | 0 | 0 | 0 | 0 | |||
Balance, end of year | 8,375,000 | 7,674,000 | 8,375,000 | 7,674,000 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of period | 129,000 | 125,000 | 488,000 | 410,000 | |||
Other invested assets [Member] | ' | ' | ' | ' | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | |||
Balance, beginning of year | 109,813,000 | 98,212,000 | 103,853,000 | 87,099,000 | |||
Realized and unrealized investment gains (losses) included in net income | -4,457,000 | 1,479,000 | -1,466,000 | -7,522,000 | |||
Purchases | 29,591,000 | 2,325,000 | 52,123,000 | 39,004,000 | |||
Settlements | -23,142,000 | -6,365,000 | -42,705,000 | -22,930,000 | |||
Net transfers into/ (out of) Level 3 | 0 | 0 | 0 | 0 | |||
Balance, end of year | 111,805,000 | 95,651,000 | 111,805,000 | 95,651,000 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of period | -4,456,000 | 2,977,000 | 62,000 | -1,812,000 | |||
Other invested assets [Member] | Derivatives, net [Member] | ' | ' | ' | ' | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | |||
Balance, beginning of year | -852,000 | 2,333,000 | -788,000 | 3,911,000 | |||
Realized and unrealized investment gains (losses) included in net income | -1,255,000 | -1,885,000 | -391,000 | -6,084,000 | |||
Purchases | 57,000 | 0 | -871,000 | [3] | 121,000 | [4] | |
Settlements | 560,000 | -1,395,000 | [1] | 560,000 | 1,105,000 | [2] | |
Sales | ' | -1,400,000 | ' | -1,400,000 | |||
Issuances | ' | ' | 900,000 | 800,000 | |||
Net transfers into/ (out of) Level 3 | 0 | 0 | 0 | 0 | |||
Balance, end of year | -1,490,000 | -947,000 | -1,490,000 | -947,000 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of period | -1,255,000 | -140,000 | -391,000 | -349,000 | |||
Other invested assets [Member] | Notes And Loan Receivables And Notes Securitization [Member] | ' | ' | ' | ' | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | |||
Balance, beginning of year | 38,603,000 | 44,224,000 | 41,446,000 | 34,902,000 | |||
Realized and unrealized investment gains (losses) included in net income | -1,379,000 | 3,250,000 | 2,188,000 | 1,867,000 | |||
Purchases | 29,286,000 | 1,248,000 | 32,202,000 | 14,598,000 | |||
Settlements | -21,114,000 | -941,000 | -30,440,000 | -3,586,000 | |||
Net transfers into/ (out of) Level 3 | 0 | 0 | 0 | 0 | |||
Balance, end of year | 45,396,000 | 47,781,000 | 45,396,000 | 47,781,000 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of period | -1,379,000 | 3,250,000 | 3,707,000 | 1,867,000 | |||
Other invested assets [Member] | Annuities and residuals [Member] | ' | ' | ' | ' | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | |||
Balance, beginning of year | 17,134,000 | 30,555,000 | 24,064,000 | 46,882,000 | |||
Realized and unrealized investment gains (losses) included in net income | -475,000 | 413,000 | -84,000 | 506,000 | |||
Purchases | 0 | 0 | 0 | 0 | |||
Settlements | -1,779,000 | -4,029,000 | -9,100,000 | -20,449,000 | [2] | ||
Sales | ' | ' | ' | -6,300,000 | |||
Net transfers into/ (out of) Level 3 | 0 | 0 | 0 | 0 | |||
Balance, end of year | 14,880,000 | 26,939,000 | 14,880,000 | 26,939,000 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of period | -474,000 | 166,000 | -44,000 | 481,000 | |||
Other invested assets [Member] | Private equities [Member] | ' | ' | ' | ' | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | |||
Balance, beginning of year | 54,928,000 | 21,100,000 | 39,131,000 | 1,404,000 | |||
Realized and unrealized investment gains (losses) included in net income | -1,348,000 | -299,000 | -3,179,000 | -3,811,000 | |||
Purchases | 248,000 | 1,077,000 | 20,792,000 | 24,285,000 | |||
Settlements | -809,000 | 0 | -3,725,000 | 0 | |||
Net transfers into/ (out of) Level 3 | 0 | 0 | 0 | 0 | |||
Balance, end of year | 53,019,000 | 21,878,000 | 53,019,000 | 21,878,000 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of period | -1,348,000 | -299,000 | -3,210,000 | -3,811,000 | |||
Funds Held - Directly Managed investment [Member] | ' | ' | ' | ' | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | |||
Balance, beginning of year | 16,105,000 | 15,544,000 | 15,451,000 | 18,321,000 | |||
Realized and unrealized investment gains (losses) included in net income | -1,461,000 | 1,006,000 | -1,062,000 | -1,700,000 | |||
Purchases | 220,000 | 0 | 475,000 | 0 | |||
Settlements | 0 | -686,000 | 0 | -757,000 | |||
Net transfers into/ (out of) Level 3 | 0 | 0 | 0 | 0 | |||
Balance, end of year | 14,864,000 | 15,864,000 | 14,864,000 | 15,864,000 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of period | -1,461,000 | 1,006,000 | -1,062,000 | -636,000 | |||
Funds Held - Directly Managed investment [Member] | Other invested assets funds held directly managed [Member] | ' | ' | ' | ' | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | |||
Balance, beginning of year | 15,800,000 | 15,207,000 | 15,165,000 | 17,976,000 | |||
Realized and unrealized investment gains (losses) included in net income | -1,467,000 | 1,045,000 | -1,087,000 | -1,653,000 | |||
Purchases | 220,000 | 0 | 475,000 | 0 | |||
Settlements | 0 | -686,000 | 0 | -757,000 | |||
Net transfers into/ (out of) Level 3 | 0 | 0 | 0 | 0 | |||
Balance, end of year | 14,553,000 | 15,566,000 | 14,553,000 | 15,566,000 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of period | -1,467,000 | 1,045,000 | -1,087,000 | -589,000 | |||
Funds Held - Directly Managed investment [Member] | US states, territories and municipalities [Member] | ' | ' | ' | ' | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | |||
Balance, beginning of year | 305,000 | 337,000 | 286,000 | 345,000 | |||
Realized and unrealized investment gains (losses) included in net income | 6,000 | -39,000 | 25,000 | -47,000 | |||
Purchases | 0 | 0 | 0 | 0 | |||
Settlements | 0 | 0 | 0 | 0 | |||
Net transfers into/ (out of) Level 3 | 0 | 0 | 0 | 0 | |||
Balance, end of year | 311,000 | 298,000 | 311,000 | 298,000 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of period | $6,000 | ($39,000) | $25,000 | ($47,000) | |||
[1] | Settlements and sales of asset-backed securities and derivatives include sales of $13.7 million and $1.4 million, respectively. | ||||||
[2] | Settlements and sales of asset-backed securities, derivatives and annuities and residuals include sales of $13.7 million, $1.4 million and $6.3 million, respectively | ||||||
[3] | Purchases and issuances of derivatives include issuances of $0.9 million. | ||||||
[4] | Purchases and issuances of derivatives include issuances of $0.8 million. |
Fair_Value_Details_Valuation_T
Fair Value (Details - Valuation Technique and Inputs) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Fixed maturities | 13,950,629 | 13,593,303 |
Equities | 1,001,307 | 1,221,053 |
Other invested assets carried at fair value | 104,554 | 135,139 |
Funds held directly managed investments carried at fair value | 478,968 | 561,306 |
Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Fixed maturities | 588,918 | 554,957 |
Equities | 36,802 | 38,045 |
Other invested assets carried at fair value | 111,805 | 103,853 |
Funds held directly managed investments carried at fair value | 14,864 | 15,451 |
US states, territories and municipalities [Member] | Discounted cash flow [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Fixed maturities | 130,743 | 108,380 |
US states, territories and municipalities [Member] | Minimum [Member] | Discounted cash flow [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Credit spreads | 2.40% | 2.90% |
US states, territories and municipalities [Member] | Maximum [Member] | Discounted cash flow [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Credit spreads | 10.00% | 9.90% |
US states, territories and municipalities [Member] | Weighted Average [Member] | Discounted cash flow [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Credit spreads | 4.70% | 5.30% |
Asset-backed securities - interest only [Member] | Discounted cash flow [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Fixed maturities | ' | 21 |
Asset-backed securities - interest only [Member] | Minimum [Member] | Discounted cash flow [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Credit spreads | ' | 5.50% |
Asset-backed securities - interest only [Member] | Maximum [Member] | Discounted cash flow [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Credit spreads | ' | 10.70% |
Asset-backed securities - interest only [Member] | Weighted Average [Member] | Discounted cash flow [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Credit spreads | ' | 8.80% |
Asset-backed securities - other [Member] | Discounted cash flow [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Fixed maturities | 458,175 | 446,556 |
Asset-backed securities - other [Member] | Minimum [Member] | Discounted cash flow [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Credit spreads | 4.00% | 4.00% |
Asset-backed securities - other [Member] | Maximum [Member] | Discounted cash flow [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Credit spreads | 12.00% | 12.20% |
Asset-backed securities - other [Member] | Weighted Average [Member] | Discounted cash flow [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Credit spreads | 6.90% | 7.10% |
Finance [Member] | Weighted market comparables [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Equities | 13,582 | 15,483 |
Finance [Member] | Profitability Analysis [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Equities | 5,554 | 4,724 |
Finance [Member] | Minimum [Member] | Weighted market comparables [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Net income multiple | 19 | 14.6 |
Tangible book value multiple | 1.3 | 1.1 |
Liquidity discount | 25.00% | 25.00% |
Comparable return | -1.40% | 8.50% |
Finance [Member] | Minimum [Member] | Profitability Analysis [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Projected Return On Equity | 14.00% | 14.00% |
Finance [Member] | Maximum [Member] | Weighted market comparables [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Net income multiple | 19 | 14.6 |
Tangible book value multiple | 1.3 | 1.1 |
Liquidity discount | 25.00% | 25.00% |
Comparable return | -1.40% | 8.50% |
Finance [Member] | Maximum [Member] | Profitability Analysis [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Projected Return On Equity | 14.00% | 14.00% |
Finance [Member] | Weighted Average [Member] | Weighted market comparables [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Net income multiple | 19 | 14.6 |
Tangible book value multiple | 1.3 | 1.1 |
Liquidity discount | 25.00% | 25.00% |
Comparable return | -1.40% | 8.50% |
Finance [Member] | Weighted Average [Member] | Profitability Analysis [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Projected Return On Equity | 14.00% | 14.00% |
Communications [Member] | Weighted market comparables [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Equities | 1,966 | 2,199 |
Communications [Member] | Minimum [Member] | Weighted market comparables [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Adjusted earnings multiple | 9.4 | 9.4 |
Comparable return | -10.60% | 0.00% |
Communications [Member] | Maximum [Member] | Weighted market comparables [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Adjusted earnings multiple | 9.4 | 9.4 |
Comparable return | -10.60% | 0.00% |
Communications [Member] | Weighted Average [Member] | Weighted market comparables [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Adjusted earnings multiple | 9.4 | 9.4 |
Comparable return | -10.60% | 0.00% |
Technology [Member] | Weighted market comparables [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Equities | 7,318 | 7,752 |
Technology [Member] | Minimum [Member] | Weighted market comparables [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Adjusted earnings multiple | 8.3 | 4.4 |
Gross revenue/fair value | 1.4 | 0.9 |
Technology [Member] | Maximum [Member] | Weighted market comparables [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Adjusted earnings multiple | 8.3 | 4.4 |
Gross revenue/fair value | 1.4 | 0.9 |
Technology [Member] | Weighted Average [Member] | Weighted market comparables [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Adjusted earnings multiple | 8.3 | 4.4 |
Gross revenue/fair value | 1.4 | 0.9 |
Total return swaps [Member] | Discounted cash flow [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Other invested assets carried at fair value | -1,115 | -520 |
Total return swaps [Member] | Minimum [Member] | Discounted cash flow [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Credit spreads | 3.50% | 2.80% |
Total return swaps [Member] | Maximum [Member] | Discounted cash flow [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Credit spreads | 18.50% | 18.90% |
Total return swaps [Member] | Weighted Average [Member] | Discounted cash flow [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Credit spreads | 14.30% | 17.00% |
Notes and loan receivables [Member] | Discounted cash flow [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Other invested assets carried at fair value | 14,879 | 21,280 |
Notes and loan receivables [Member] | Minimum [Member] | Discounted cash flow [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Credit spreads | 17.50% | 17.50% |
Gross revenue/fair value | 1.3 | 1.5 |
Notes and loan receivables [Member] | Maximum [Member] | Discounted cash flow [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Credit spreads | 17.50% | 17.50% |
Gross revenue/fair value | 1.6 | 1.5 |
Notes and loan receivables [Member] | Weighted Average [Member] | Discounted cash flow [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Credit spreads | 17.50% | 17.50% |
Gross revenue/fair value | 1.6 | 1.5 |
Notes and Loans Receivable 2 [Member] | Discounted cash flow [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Other invested assets carried at fair value | 9,589 | ' |
Notes and Loans Receivable 2 [Member] | Minimum [Member] | Discounted cash flow [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Credit spreads | 6.70% | ' |
Notes and Loans Receivable 2 [Member] | Maximum [Member] | Discounted cash flow [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Credit spreads | 6.70% | ' |
Notes and Loans Receivable 2 [Member] | Weighted Average [Member] | Discounted cash flow [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Credit spreads | 6.70% | ' |
Notes securitization [Member] | Discounted cash flow [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Other invested assets carried at fair value | 20,928 | 20,166 |
Notes securitization [Member] | Minimum [Member] | Discounted cash flow [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Credit spreads | 3.50% | 6.20% |
Notes securitization [Member] | Maximum [Member] | Discounted cash flow [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Credit spreads | 6.60% | 6.20% |
Notes securitization [Member] | Weighted Average [Member] | Discounted cash flow [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Credit spreads | 6.30% | 6.20% |
Annuities and residuals [Member] | Discounted cash flow [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Other invested assets carried at fair value | 14,880 | 24,064 |
Annuities and residuals [Member] | Minimum [Member] | Discounted cash flow [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Credit spreads | 5.30% | 4.00% |
Prepayment speed | 0.00% | 0.00% |
Constant default rate | 0.30% | 0.30% |
Annuities and residuals [Member] | Maximum [Member] | Discounted cash flow [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Credit spreads | 8.10% | 7.90% |
Prepayment speed | 15.00% | 15.00% |
Constant default rate | 23.00% | 35.00% |
Annuities and residuals [Member] | Weighted Average [Member] | Discounted cash flow [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Credit spreads | 7.00% | 5.80% |
Prepayment speed | 4.80% | 6.40% |
Constant default rate | 7.60% | 12.40% |
Private Equity-Direct [Member] | Discounted Cash Flow And Weighted Market Comparables [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Other invested assets carried at fair value | 9,582 | 11,742 |
Private Equity-Direct [Member] | Minimum [Member] | Discounted Cash Flow And Weighted Market Comparables [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Net income multiple | 8.3 | 8.3 |
Tangible book value multiple | 1.6 | 1.6 |
Recoverability of intangible assets | 0 | 0 |
Private Equity-Direct [Member] | Maximum [Member] | Discounted Cash Flow And Weighted Market Comparables [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Net income multiple | 8.3 | 8.3 |
Tangible book value multiple | 1.6 | 1.6 |
Recoverability of intangible assets | 0 | 0 |
Private Equity-Direct [Member] | Weighted Average [Member] | Discounted Cash Flow And Weighted Market Comparables [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Net income multiple | 8.3 | 8.3 |
Tangible book value multiple | 1.6 | 1.6 |
Recoverability of intangible assets | 0 | 0 |
Private equity funds [Member] | Lag reported market value | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Other invested assets carried at fair value | 14,422 | 8,993 |
Private equity funds [Member] | Minimum [Member] | Lag reported market value | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Net asset value, as reported | 100.00% | 100.00% |
Market adjustments | -4.60% | 1.80% |
Private equity funds [Member] | Maximum [Member] | Lag reported market value | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Net asset value, as reported | 100.00% | 100.00% |
Market adjustments | 1.90% | 9.80% |
Private equity funds [Member] | Weighted Average [Member] | Lag reported market value | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Net asset value, as reported | 100.00% | 100.00% |
Market adjustments | -2.30% | 8.30% |
Private Equity - Other [Member] | Discounted cash flow [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Other invested assets carried at fair value | 29,015 | 18,396 |
Private Equity - Other [Member] | Minimum [Member] | Discounted cash flow [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Credit spreads | ' | 3.80% |
Effective Yield | 5.80% | ' |
Private Equity - Other [Member] | Maximum [Member] | Discounted cash flow [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Credit spreads | ' | 3.80% |
Effective Yield | 5.80% | ' |
Private Equity - Other [Member] | Weighted Average [Member] | Discounted cash flow [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Credit spreads | ' | 3.80% |
Effective Yield | 5.80% | ' |
Other invested assets [Member] | Lag reported market value | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Funds held directly managed investments carried at fair value | 14,553 | 15,165 |
Other invested assets [Member] | Minimum [Member] | Lag reported market value | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Net asset value, as reported | 100.00% | 100.00% |
Market adjustments | -12.90% | -22.90% |
Other invested assets [Member] | Maximum [Member] | Lag reported market value | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Net asset value, as reported | 100.00% | 100.00% |
Market adjustments | 0.00% | 0.00% |
Other invested assets [Member] | Weighted Average [Member] | Lag reported market value | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Net asset value, as reported | 100.00% | 100.00% |
Market adjustments | -12.10% | -15.50% |
Fair_Value_Details_Change_in_f
Fair Value (Details - Change in fair value option table) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ' | ' |
Change in unrealized gain/loss | ($110,667) | $11,482 | $154,246 | ($492,077) |
Fixed maturities and short term investments [Member] | ' | ' | ' | ' |
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ' | ' |
Change in unrealized gain/loss | -75,537 | 10,259 | 167,696 | -457,168 |
Equities [Member] | ' | ' | ' | ' |
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ' | ' |
Change in unrealized gain/loss | -31,093 | -891 | -14,447 | -8,540 |
Other invested assets [Member] | ' | ' | ' | ' |
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ' | ' |
Change in unrealized gain/loss | -3,497 | 3,021 | 60 | -4,047 |
Funds Held - Directly Managed investment [Member] | ' | ' | ' | ' |
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ' | ' |
Change in unrealized gain/loss | ($540) | ($907) | $937 | ($22,322) |
Fair_Value_Fair_Value_Details_
Fair Value Fair Value (Details - Fair Value of Liabilities) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
Fair value of financial instrument liabilities [Line Items] | ' | ' | ||
Debt related to senior notes | $750,000,000 | $750,000,000 | ||
Debt related to capital efficient notes | 70,989,000 | 70,989,000 | ||
Senior Notes Debt [Member] | Notes Issued By Partner Re Finance A LLC [Member] | ' | ' | ||
Fair value of financial instrument liabilities [Line Items] | ' | ' | ||
Face amount of debt instrument | 250,000,000 | 250,000,000 | ||
Senior Notes Debt [Member] | Notes Issued By Partner Re Finance B LLC [Member] | ' | ' | ||
Fair value of financial instrument liabilities [Line Items] | ' | ' | ||
Face amount of debt instrument | 500,000,000 | 500,000,000 | ||
Capital efficient notes [Member] | Notes Issued By Partner Re Finance II Inc [Member] | ' | ' | ||
Fair value of financial instrument liabilities [Line Items] | ' | ' | ||
Face amount of debt instrument | 63,000,000 | 63,000,000 | ||
Estimate of Fair Value Measurement [Member] | Significant other observable inputs (Level 2) | Senior Notes Debt [Member] | ' | ' | ||
Fair value of financial instrument liabilities [Line Items] | ' | ' | ||
Debt related to senior notes | 868,702,000 | [1] | 844,331,000 | [1] |
Estimate of Fair Value Measurement [Member] | Significant other observable inputs (Level 2) | Capital efficient notes [Member] | ' | ' | ||
Fair value of financial instrument liabilities [Line Items] | ' | ' | ||
Debt related to capital efficient notes | 63,231,000 | [2] | 61,094,000 | [2] |
Carrying value [Member] | Senior Notes Debt [Member] | ' | ' | ||
Fair value of financial instrument liabilities [Line Items] | ' | ' | ||
Debt related to senior notes | 750,000,000 | [1] | 750,000,000 | [1] |
Carrying value [Member] | Capital efficient notes [Member] | ' | ' | ||
Fair value of financial instrument liabilities [Line Items] | ' | ' | ||
Debt related to capital efficient notes | $63,384,000 | [2] | $63,384,000 | [2] |
[1] | PartnerRe Finance A LLC and PartnerRe Finance B LLC, the issuers of the Senior Notes, do not meet consolidation requirements under U.S. GAAP. Accordingly, the Company shows the related intercompany debt of $750 million in its Condensed Consolidated Balance Sheets at September 30, 2014 and December 31, 2013. | |||
[2] | PartnerRe Finance II Inc., the issuer of the CENts, does not meet consolidation requirements under U.S. GAAP. Accordingly, the Company shows the related intercompany debt of $71 million in its Condensed Consolidated Balance Sheets at September 30, 2014 and December 31, 2013. |
Derivatives_Details_Balance_Sh
Derivatives (Details - Balance Sheet) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Derivative [Line Items] | ' | ' | ||
Derivative Fair Value Of Derivative Asset | $13,824 | [1] | $44,508 | [1] |
Derivative Fair Value Of Derivative Liability | -22,565 | [1] | -14,010 | [1] |
Fair value net | -8,741 | 30,498 | ||
Foreign exchange forward contracts [Member] | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Derivative Fair Value Of Derivative Asset | 8,456 | 1,249 | ||
Derivative Fair Value Of Derivative Liability | -7,904 | -8,648 | ||
Net notional exposure | 2,441,173 | 1,957,409 | ||
Fair value net | 552 | -7,399 | ||
Foreign currency option contracts [Member] | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Derivative Fair Value Of Derivative Asset | 901 | 0 | ||
Derivative Fair Value Of Derivative Liability | -1,682 | -535 | ||
Net notional exposure | 86,692 | 87,620 | ||
Fair value net | -781 | -535 | ||
Futures contracts [Member] | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Derivative Fair Value Of Derivative Asset | 3,723 | 41,031 | ||
Derivative Fair Value Of Derivative Liability | -37 | 0 | ||
Net notional exposure | 2,677,157 | 3,266,004 | ||
Fair value net | 3,686 | 41,031 | ||
Credit default swaps (protection purchased) [Member] | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Derivative Fair Value Of Derivative Asset | ' | 0 | ||
Derivative Fair Value Of Derivative Liability | ' | -71 | ||
Net notional exposure | ' | 14,000 | ||
Fair value net | ' | -71 | ||
Insurance-linked securities [Member] | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Derivative Fair Value Of Derivative Asset | 0 | [2] | 0 | [2] |
Derivative Fair Value Of Derivative Liability | -375 | [2] | -268 | [2] |
Net notional exposure | 181,238 | [2] | 168,724 | [2] |
Fair value net | -375 | [2] | -268 | [2] |
Total return swaps [Member] | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Derivative Fair Value Of Derivative Asset | 744 | 79 | ||
Derivative Fair Value Of Derivative Liability | -1,859 | -599 | ||
Net notional exposure | 42,569 | 31,740 | ||
Fair value net | -1,115 | -520 | ||
Interest rate swaps [Member] | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Derivative Fair Value Of Derivative Asset | 0 | [3] | 2,147 | [3] |
Derivative Fair Value Of Derivative Liability | -10,200 | [3] | -2,558 | [3] |
Net notional exposure | 201,659 | [3] | 202,859 | [3] |
Fair value net | -10,200 | [3] | -411 | [3] |
TBAs [Member] | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Derivative Fair Value Of Derivative Asset | 0 | 2 | ||
Derivative Fair Value Of Derivative Liability | -508 | -1,331 | ||
Net notional exposure | 176,015 | 183,835 | ||
Fair value net | ($508) | ($1,329) | ||
[1] | Amounts include all derivative instruments, irrespective of whether there is a legally enforceable master netting arrangement in place. | |||
[2] | At September 30, 2014 and December 31, 2013, insurance-linked securities include a longevity swap for which the notional amount is not reflective of the overall potential exposure of the swap. As such, the Company has included the probable maximum loss under the swap within the net notional exposure as an approximation of the notional amount. | |||
[3] | The Company enters into interest rate swaps to mitigate notional exposures on certain total return swaps and certain fixed maturities. Only the notional value of interest rate swaps on fixed maturities is presented separately in the table. |
Derivatives_Details_Income_Sta
Derivatives (Details - Income Statement) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (loss) on derivatives recognized in income | $23,850 | ($28,788) | ($16,359) | $5,539 |
Derivates not designated as hedges [Member] | Included in net foreign exchange gains and losses [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (loss) on derivatives recognized in income | 20,000 | -782 | 30,040 | -41,096 |
Derivates not designated as hedges [Member] | Included in net realized and unrealized investment gains and losses [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (loss) on derivatives recognized in income | 3,850 | -28,006 | -46,399 | 46,635 |
Derivates not designated as hedges [Member] | Foreign exchange forward contracts [Member] | Included in net foreign exchange gains and losses [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (loss) on derivatives recognized in income | 20,721 | 17 | 29,613 | -36,457 |
Derivates not designated as hedges [Member] | Foreign currency option contracts [Member] | Included in net foreign exchange gains and losses [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (loss) on derivatives recognized in income | -721 | -799 | 427 | -4,639 |
Derivates not designated as hedges [Member] | Futures contracts [Member] | Included in net realized and unrealized investment gains and losses [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (loss) on derivatives recognized in income | 5,895 | -30,233 | -44,606 | 55,143 |
Derivates not designated as hedges [Member] | Credit default swaps (protection purchased) [Member] | Included in net realized and unrealized investment gains and losses [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (loss) on derivatives recognized in income | 0 | -6 | -3 | -126 |
Derivates not designated as hedges [Member] | Credit default swaps (assumed risks) [Member] | Included in net realized and unrealized investment gains and losses [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (loss) on derivatives recognized in income | 0 | 7 | 0 | 122 |
Derivates not designated as hedges [Member] | Insurance-linked securities [Member] | Included in net realized and unrealized investment gains and losses [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (loss) on derivatives recognized in income | -50 | -110 | 206 | -660 |
Derivates not designated as hedges [Member] | Total return swaps [Member] | Included in net realized and unrealized investment gains and losses [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (loss) on derivatives recognized in income | -1,213 | -1,762 | -595 | -5,421 |
Derivates not designated as hedges [Member] | Interest rate swaps [Member] | Included in net realized and unrealized investment gains and losses [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (loss) on derivatives recognized in income | -1,055 | 240 | -9,788 | 3,416 |
Derivates not designated as hedges [Member] | TBAs [Member] | Included in net realized and unrealized investment gains and losses [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (loss) on derivatives recognized in income | $273 | $3,858 | $8,387 | ($5,839) |
Derivatives_Details_narrative_
Derivatives (Details - narrative items) | 3 Months Ended |
Sep. 30, 2014 | |
Minimum [Member] | ' |
Derivatives Fair Value [Line Items] | ' |
Credit derivative term | '0 years |
Maximum [Member] | ' |
Derivatives Fair Value [Line Items] | ' |
Credit derivative term | '5 years |
Designated as Hedging Instrument [Member] | ' |
Derivatives Fair Value [Line Items] | ' |
Derivative number of instruments held | 0 |
Offsetting_Details
Offsetting (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Offsetting [Abstract] | ' | ' | ||
Gross amounts of recognized, asset | $13,824 | [1] | $44,508 | [1] |
Gross amount offset in the balance sheet | 0 | 0 | ||
Net amounts of asset/ liabilities presented in the balance sheet, asset | 13,824 | 44,508 | ||
Gross amounts not offset in the balance sheet, financial instruments, asset | -344 | -2 | ||
Gross amounts not offset in the balance sheet, cash collateral received/ pledged | -6,964 | 0 | ||
Net amount, asset | 6,516 | 44,506 | ||
Gross amounts of recognized, liability | -22,565 | [1] | -14,010 | [1] |
Gross amount offset in the balance sheet | 0 | 0 | ||
Net amounts presented in the balance sheet, liability | -22,565 | -14,010 | ||
Gross amounts not offset in the balance sheet, financial instruments, liability | 344 | 2 | ||
Gross amounts not offset in the balance sheet, cash collateral received | 1,380 | 4,341 | ||
Net amount, liability | ($20,841) | ($9,667) | ||
[1] | Amounts include all derivative instruments, irrespective of whether there is a legally enforceable master netting arrangement in place. |
Net_Income_Per_Share_Details
Net Income Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Numerator [Abstract] | ' | ' | ' | ' | ||||
Net income attributable to PartnerRe Ltd. | $196,398 | $333,423 | $778,082 | $392,221 | ||||
Dividends on preferred shares | 14,184 | 14,184 | 42,551 | 43,678 | ||||
Loss on redemption of preferred shares | 0 | 0 | 0 | 9,135 | ||||
Net income attributable to PartnerRe Ltd. common shareholders | $182,214 | $319,239 | $735,531 | $339,408 | ||||
Denominator [Abstract] | ' | ' | ' | ' | ||||
Weighted average number of common shares outstanding | 49,514,980 | 53,671,245 | 50,461,749 | 56,176,260 | ||||
Share options and other (1) | 1,166,345 | 953,906 | 1,104,385 | 1,041,301 | ||||
Weighted average number of common shares and common share equivalents outstanding | 50,681,325 | 54,625,151 | 51,566,134 | 57,217,561 | ||||
Basic net income | $3.68 | $5.95 | $14.58 | $6.04 | ||||
Diluted net income | $3.60 | [1] | $5.84 | [1] | $14.26 | [1] | $5.93 | [1] |
Anti-dilutive common shares excluded from weighted average number of common shares and common share equivalents outstanding - diluted (1) | 134,470 | 140,516 | 135,681 | 114,195 | ||||
[1] | Where the exercise price of share based awards is greater than the average market price of the common shares, the common shares are considered anti-dilutive and are excluded from the calculation of weighted average number of common shares and common share equivalents outstanding - diluted. |
Noncontrolling_interests_Detai
Noncontrolling interests (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Noncontrolling Interest [Line Items] | ' | ' | ' | ' | ' |
Total assets | $23,207,343 | ' | $23,207,343 | ' | $23,038,295 |
Total liabilities | 16,141,087 | ' | 16,141,087 | ' | 16,272,136 |
Movement In Minority Interest [Roll Forward] | ' | ' | ' | ' | ' |
Balance at beginning of period | ' | ' | 56,627 | ' | ' |
Net income attributable to noncontrolling interests | 4,920 | 4,112 | 9,914 | 5,296 | ' |
Balance at end of period | 52,276 | ' | 52,276 | ' | ' |
Lorenz Re [Member] | ' | ' | ' | ' | ' |
Noncontrolling Interest [Line Items] | ' | ' | ' | ' | ' |
Total assets | 101,800 | ' | 101,800 | ' | 99,600 |
Total liabilities | 19,400 | ' | 19,400 | ' | 11,100 |
Movement In Minority Interest [Roll Forward] | ' | ' | ' | ' | ' |
Balance at beginning of period | ' | ' | 56,627 | 0 | ' |
Net income attributable to noncontrolling interests | ' | ' | 9,914 | 5,296 | ' |
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | ' | ' | -14,265 | 0 | ' |
Sale of shares to noncontrolling interests | ' | ' | 0 | 47,193 | ' |
Balance at end of period | $52,276 | $52,489 | $52,276 | $52,489 | ' |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |||||
Segment Reporting [Line Items] | ' | ' | ' | ' | ||||
Gross premiums written | $1,361,280,000 | $1,281,477,000 | $4,695,327,000 | $4,378,944,000 | ||||
Net premiums written | 1,342,690,000 | 1,264,775,000 | 4,499,849,000 | 4,210,525,000 | ||||
Decrease (increase) in unearned premiums | 213,924,000 | 156,694,000 | -336,384,000 | -433,740,000 | ||||
Net premiums earned | 1,556,614,000 | 1,421,469,000 | 4,163,465,000 | 3,776,785,000 | ||||
Losses and loss expenses and life policy benefits | -960,000,000 | -751,000,000 | -2,593,000,000 | -2,279,000,000 | ||||
Acquisition costs | -321,756,000 | -282,948,000 | -888,937,000 | -758,890,000 | ||||
Technical result | 275,000,000 | 387,000,000 | 681,000,000 | 739,000,000 | ||||
Other (loss) income | 2,223,000 | 5,399,000 | 11,892,000 | 13,205,000 | ||||
Other operating expenses | -108,615,000 | -108,467,000 | -327,149,000 | -369,340,000 | ||||
Underwriting result | 169,000,000 | 284,000,000 | 366,000,000 | 383,000,000 | ||||
Net investment income | 118,176,000 | 121,811,000 | 365,010,000 | 370,017,000 | ||||
Net realized and unrealized investment (losses) gains | -34,420,000 | 16,118,000 | 273,468,000 | -260,154,000 | ||||
Interest expense | -12,241,000 | -12,233,000 | -36,719,000 | -36,694,000 | ||||
Amortization of intangible assets | -7,003,000 | -7,045,000 | -21,007,000 | -21,136,000 | ||||
Net foreign exchange gains (losses) | 8,206,000 | -1,279,000 | 10,900,000 | -9,822,000 | ||||
Income tax expense | -45,617,000 | -70,232,000 | -186,363,000 | -37,338,000 | ||||
Interest in earnings of equity method investments | 5,294,000 | 5,941,000 | 16,283,000 | 9,677,000 | ||||
Net income | 201,318,000 | 337,535,000 | 787,996,000 | 397,517,000 | ||||
Non Life [Member] | ' | ' | ' | ' | ||||
Segment Reporting [Line Items] | ' | ' | ' | ' | ||||
Gross premiums written | 1,025,000,000 | 1,041,000,000 | 3,744,000,000 | 3,649,000,000 | ||||
Net premiums written | 1,019,000,000 | 1,026,000,000 | 3,583,000,000 | 3,489,000,000 | ||||
Decrease (increase) in unearned premiums | 208,000,000 | 147,000,000 | -323,000,000 | -416,000,000 | ||||
Net premiums earned | 1,227,000,000 | 1,173,000,000 | 3,260,000,000 | 3,073,000,000 | ||||
Losses and loss expenses and life policy benefits | -688,000,000 | -557,000,000 | -1,853,000,000 | -1,723,000,000 | ||||
Acquisition costs | -284,000,000 | -259,000,000 | -778,000,000 | -677,000,000 | ||||
Technical result | 255,000,000 | 357,000,000 | 629,000,000 | 673,000,000 | ||||
Other (loss) income | -1,000,000 | 2,000,000 | 1,000,000 | 3,000,000 | ||||
Other operating expenses | -62,000,000 | -62,000,000 | -187,000,000 | -189,000,000 | ||||
Underwriting result | 192,000,000 | 297,000,000 | 443,000,000 | 487,000,000 | ||||
Reinsurance Ratios [Abstract] | ' | ' | ' | ' | ||||
Loss ratio | 56.10% | [1] | 47.50% | [1] | 56.80% | [1] | 56.10% | [1] |
Acquisition ratio | 23.10% | [2] | 22.10% | [2] | 23.90% | [2] | 22.00% | [2] |
Technical ratio | 79.20% | 69.60% | [3] | 80.70% | 78.10% | [3] | ||
Other operating expense ratio | 5.00% | [4] | 5.30% | [4] | 5.70% | [4] | 6.10% | [4] |
Combined ratio | 84.20% | 74.90% | [5] | 86.40% | 84.20% | [5] | ||
Non Life [Member] | North America Segment [Member] | ' | ' | ' | ' | ||||
Segment Reporting [Line Items] | ' | ' | ' | ' | ||||
Gross premiums written | 372,000,000 | 409,000,000 | 1,302,000,000 | 1,228,000,000 | ||||
Net premiums written | 372,000,000 | 408,000,000 | 1,291,000,000 | 1,215,000,000 | ||||
Decrease (increase) in unearned premiums | 52,000,000 | 17,000,000 | -99,000,000 | -99,000,000 | ||||
Net premiums earned | 424,000,000 | 425,000,000 | 1,192,000,000 | 1,116,000,000 | ||||
Losses and loss expenses and life policy benefits | -247,000,000 | -197,000,000 | -747,000,000 | -682,000,000 | ||||
Acquisition costs | -106,000,000 | -101,000,000 | -299,000,000 | -253,000,000 | ||||
Technical result | 71,000,000 | 127,000,000 | 146,000,000 | 181,000,000 | ||||
Reinsurance Ratios [Abstract] | ' | ' | ' | ' | ||||
Loss ratio | 58.20% | [1] | 46.30% | [1] | 62.60% | [1] | 61.10% | [1] |
Acquisition ratio | 24.90% | [2] | 23.90% | [2] | 25.10% | [2] | 22.70% | [2] |
Technical ratio | 83.10% | 70.20% | [3] | 87.70% | 83.80% | [3] | ||
Non Life [Member] | Global (Non-US) P&C [Member] | ' | ' | ' | ' | ||||
Segment Reporting [Line Items] | ' | ' | ' | ' | ||||
Gross premiums written | 162,000,000 | 157,000,000 | 682,000,000 | 690,000,000 | ||||
Net premiums written | 164,000,000 | 157,000,000 | 672,000,000 | 682,000,000 | ||||
Decrease (increase) in unearned premiums | 38,000,000 | 38,000,000 | -104,000,000 | -152,000,000 | ||||
Net premiums earned | 202,000,000 | 195,000,000 | 568,000,000 | 530,000,000 | ||||
Losses and loss expenses and life policy benefits | -123,000,000 | -90,000,000 | -319,000,000 | -263,000,000 | ||||
Acquisition costs | -56,000,000 | -50,000,000 | -162,000,000 | -134,000,000 | ||||
Technical result | 23,000,000 | 55,000,000 | 87,000,000 | 133,000,000 | ||||
Reinsurance Ratios [Abstract] | ' | ' | ' | ' | ||||
Loss ratio | 61.10% | [1] | 46.00% | [1] | 56.20% | [1] | 49.70% | [1] |
Acquisition ratio | 27.60% | [2] | 25.70% | [2] | 28.50% | [2] | 25.20% | [2] |
Technical ratio | 88.70% | 71.70% | [3] | 84.70% | 74.90% | [3] | ||
Non Life [Member] | Global Specialty [Member] | ' | ' | ' | ' | ||||
Segment Reporting [Line Items] | ' | ' | ' | ' | ||||
Gross premiums written | 432,000,000 | 396,000,000 | 1,348,000,000 | 1,253,000,000 | ||||
Net premiums written | 428,000,000 | 389,000,000 | 1,250,000,000 | 1,159,000,000 | ||||
Decrease (increase) in unearned premiums | 20,000,000 | -7,000,000 | -42,000,000 | -68,000,000 | ||||
Net premiums earned | 448,000,000 | 382,000,000 | 1,208,000,000 | 1,091,000,000 | ||||
Losses and loss expenses and life policy benefits | -279,000,000 | -228,000,000 | -749,000,000 | -697,000,000 | ||||
Acquisition costs | -105,000,000 | -92,000,000 | -283,000,000 | -257,000,000 | ||||
Technical result | 64,000,000 | 62,000,000 | 176,000,000 | 137,000,000 | ||||
Reinsurance Ratios [Abstract] | ' | ' | ' | ' | ||||
Loss ratio | 62.30% | [1] | 59.80% | [1] | 62.10% | [1] | 63.90% | [1] |
Acquisition ratio | 23.50% | [2] | 24.00% | [2] | 23.40% | [2] | 23.60% | [2] |
Technical ratio | 85.80% | 83.80% | [3] | 85.50% | 87.50% | [3] | ||
Non Life [Member] | Catastrophe Segment [Member] | ' | ' | ' | ' | ||||
Segment Reporting [Line Items] | ' | ' | ' | ' | ||||
Gross premiums written | 59,000,000 | 79,000,000 | 412,000,000 | 478,000,000 | ||||
Net premiums written | 55,000,000 | 72,000,000 | 370,000,000 | 433,000,000 | ||||
Decrease (increase) in unearned premiums | 98,000,000 | 99,000,000 | -78,000,000 | -97,000,000 | ||||
Net premiums earned | 153,000,000 | 171,000,000 | 292,000,000 | 336,000,000 | ||||
Losses and loss expenses and life policy benefits | -39,000,000 | -42,000,000 | -38,000,000 | -81,000,000 | ||||
Acquisition costs | -17,000,000 | -16,000,000 | -34,000,000 | -33,000,000 | ||||
Technical result | 97,000,000 | 113,000,000 | 220,000,000 | 222,000,000 | ||||
Reinsurance Ratios [Abstract] | ' | ' | ' | ' | ||||
Loss ratio | 25.20% | [1] | 24.50% | [1] | 12.90% | [1] | 24.20% | [1] |
Acquisition ratio | 11.70% | [2] | 9.00% | [2] | 11.50% | [2] | 9.70% | [2] |
Technical ratio | 36.90% | 33.50% | [3] | 24.40% | 33.90% | [3] | ||
Life and Health [Member] | ' | ' | ' | ' | ||||
Segment Reporting [Line Items] | ' | ' | ' | ' | ||||
Gross premiums written | 336,000,000 | 235,000,000 | 951,000,000 | 722,000,000 | ||||
Net premiums written | 325,000,000 | 234,000,000 | 918,000,000 | 715,000,000 | ||||
Decrease (increase) in unearned premiums | 6,000,000 | 9,000,000 | -14,000,000 | -17,000,000 | ||||
Net premiums earned | 331,000,000 | 243,000,000 | 904,000,000 | 698,000,000 | ||||
Losses and loss expenses and life policy benefits | -272,000,000 | -195,000,000 | -740,000,000 | -558,000,000 | ||||
Acquisition costs | -38,000,000 | -24,000,000 | -111,000,000 | -82,000,000 | ||||
Technical result | 21,000,000 | 24,000,000 | 53,000,000 | 58,000,000 | ||||
Other (loss) income | 2,000,000 | 3,000,000 | 6,000,000 | 9,000,000 | ||||
Other operating expenses | -17,000,000 | -17,000,000 | -52,000,000 | -52,000,000 | ||||
Underwriting result | 6,000,000 | 10,000,000 | 7,000,000 | 15,000,000 | ||||
Net investment income | 14,000,000 | 15,000,000 | 45,000,000 | 45,000,000 | ||||
Allocated underwriting result | 20,000,000 | [6] | 25,000,000 | [6] | 52,000,000 | 60,000,000 | [6] | |
Corporate and Other [Member] | ' | ' | ' | ' | ||||
Segment Reporting [Line Items] | ' | ' | ' | ' | ||||
Gross premiums written | 0 | 5,000,000 | 0 | 8,000,000 | ||||
Net premiums written | -1,000,000 | 5,000,000 | -1,000,000 | 7,000,000 | ||||
Decrease (increase) in unearned premiums | 0 | 0 | 0 | -1,000,000 | ||||
Net premiums earned | -1,000,000 | 5,000,000 | -1,000,000 | 6,000,000 | ||||
Losses and loss expenses and life policy benefits | 0 | 1,000,000 | 0 | 2,000,000 | ||||
Acquisition costs | 0 | 0 | 0 | 0 | ||||
Technical result | -1,000,000 | 6,000,000 | -1,000,000 | 8,000,000 | ||||
Other (loss) income | 1,000,000 | 0 | 5,000,000 | 1,000,000 | ||||
Other operating expenses | -29,000,000 | -29,000,000 | -88,000,000 | -128,000,000 | ||||
Net investment income | 104,000,000 | 107,000,000 | 320,000,000 | 325,000,000 | ||||
Net realized and unrealized investment (losses) gains | -34,000,000 | 16,000,000 | 273,000,000 | -260,000,000 | ||||
Interest expense | -12,000,000 | -12,000,000 | -36,000,000 | -37,000,000 | ||||
Amortization of intangible assets | -7,000,000 | -7,000,000 | -21,000,000 | -21,000,000 | ||||
Net foreign exchange gains (losses) | 8,000,000 | -1,000,000 | 11,000,000 | -10,000,000 | ||||
Income tax expense | -46,000,000 | -70,000,000 | -186,000,000 | -37,000,000 | ||||
Interest in earnings of equity method investments | $5,000,000 | $6,000,000 | $16,000,000 | $10,000,000 | ||||
[1] | Loss ratio is obtained by dividing losses and loss expenses by net premiums earned. | |||||||
[2] | Acquisition ratio is obtained by dividing acquisition costs by net premiums earned. | |||||||
[3] | Technical ratio is defined as the sum of the loss ratio and the acquisition ratio. | |||||||
[4] | Other operating expense ratio is obtained by dividing other operating expenses by net premiums earned. | |||||||
[5] | Combined ratio is defined as the sum of the technical ratio and the other operating expense ratio. | |||||||
[6] | Allocated underwriting result is defined as net premiums earned, other income or loss and allocated net investment income less life policy benefits, acquisition costs and other operating expenses. |