Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 22, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document type | 10-K | ||
Document period end date | Dec. 31, 2015 | ||
Amendment flag | false | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Entity registrant name | PARTNERRE LTD. | ||
Entity central index key | 911,421 | ||
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 public float | $ 6,138,078,004 | ||
Entity common stock shares outstanding | 47,952,142 | ||
Trading Symbol | PRE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||
Fixed maturities, at fair value (amortized cost: 2015, $13,313,819; 2014, $13,489,633) | $ 13,448,262 | $ 13,918,745 |
Short-term investments, at fair value (amortized cost: 2015, $46,689; 2014, $25,699) | 46,688 | 25,678 |
Equities, at fair value (cost: 2015, $418,428; 2014, $843,429) | 443,861 | 1,056,514 |
Other invested assets | 399,204 | 298,827 |
Total investments | 14,338,015 | 15,299,764 |
Funds held – directly managed (cost: 2015, $537,661; 2014, $600,379) | 539,743 | 608,853 |
Cash and cash equivalents | 1,577,097 | 1,313,468 |
Accrued investment income | 141,672 | 158,737 |
Reinsurance balances receivable | 2,428,020 | 2,454,850 |
Reinsurance recoverable on paid and unpaid losses | 282,916 | 246,158 |
Funds held by reinsured companies | 657,815 | 765,905 |
Deferred acquisition costs | 629,372 | 661,186 |
Deposit assets | 88,152 | 92,973 |
Net tax assets | 102,596 | 6,876 |
Goodwill | 456,380 | 456,380 |
Intangible assets | 133,011 | 159,604 |
Other assets | 31,254 | 45,603 |
Total assets | 21,406,043 | 22,270,357 |
Liabilities | ||
Unpaid losses and loss expenses | 9,064,711 | 9,745,806 |
Policy benefits for life and annuity contracts | 2,051,935 | 2,050,107 |
Unearned premiums | 1,644,757 | 1,750,607 |
Other reinsurance balances payable | 246,089 | 182,395 |
Deposit liabilities | 44,420 | 70,325 |
Net tax liabilities | 218,652 | 240,989 |
Accounts payable, accrued expenses and other | 411,539 | 304,728 |
Debt related to senior notes | 750,000 | 750,000 |
Debt related to capital efficient notes | 70,989 | 70,989 |
Total liabilities | 14,503,092 | 15,165,946 |
Shareholders’ Equity | ||
Common shares (par value $1.00; issued: 2015 and 2014, 87,237,220 shares) | 87,237 | 87,237 |
Preferred shares (par value $1.00; issued and outstanding: 2015 and 2014, 34,150,000 shares; aggregate liquidation value: 2015 and 2014, $853,750) | 34,150 | 34,150 |
Additional paid-in capital | 3,982,147 | 3,949,665 |
Accumulated other comprehensive loss | (83,283) | (34,083) |
Retained earnings | 6,146,802 | 6,270,811 |
Common shares held in treasury, at cost (2015, 39,303,068 shares; 2014, 39,400,936 shares) | (3,266,552) | (3,258,870) |
Total shareholders’ equity attributable to PartnerRe Ltd. | 6,900,501 | 7,048,910 |
Noncontrolling interests | 2,450 | 55,501 |
Total shareholders’ equity | 6,902,951 | 7,104,411 |
Total liabilities and shareholders’ equity | $ 21,406,043 | $ 22,270,357 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||
Fixed maturities, amortized cost | $ 13,313,819 | $ 13,489,633 |
Short-term investments, amortized cost | 46,689 | 25,699 |
Equities, cost | 418,428 | 843,429 |
Funds held - directly managed, cost | $ 537,661 | $ 600,379 |
Shareholders’ Equity | ||
Common shares, par value | $ 1 | $ 1 |
Common shares, shares issued | 87,237,220 | 87,237,220 |
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 | 39,303,068 | 39,400,936 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Revenues | ||||||||||||||
Gross premiums written | $ 5,547,525 | $ 5,932,003 | $ 5,569,706 | |||||||||||
Net premiums written | $ 1,064,000 | $ 1,190,000 | $ 1,322,000 | $ 1,653,000 | $ 1,220,000 | $ 1,343,000 | $ 1,419,000 | $ 1,738,000 | 5,229,548 | 5,719,884 | 5,396,526 | |||
Decrease (increase) in unearned premiums | 39,630 | (110,689) | (198,316) | |||||||||||
Net premiums earned | 1,294,000 | 1,412,000 | 1,328,000 | 1,235,000 | 1,446,000 | 1,557,000 | 1,353,000 | 1,254,000 | 5,269,178 | 5,609,195 | 5,198,210 | |||
Net investment income | 108,000 | 117,000 | 120,000 | 105,000 | 115,000 | 118,000 | 130,000 | 117,000 | 449,784 | 479,696 | 484,367 | |||
Net realized and unrealized investment (losses) gains | (24,000) | (133,000) | (256,000) | 116,000 | 98,000 | (34,000) | 166,000 | 142,000 | (297,479) | 371,796 | (160,735) | |||
Other income | 1,000 | 3,000 | 0 | 4,000 | 4,000 | 2,000 | 9,000 | 0 | 9,144 | 16,190 | 16,565 | |||
Total revenues | 1,379,000 | 1,399,000 | 1,192,000 | 1,460,000 | 1,663,000 | 1,643,000 | 1,658,000 | 1,513,000 | 5,430,627 | 6,476,877 | 5,538,407 | |||
Expenses | ||||||||||||||
Losses and loss expenses and life policy benefits | 767,000 | 804,000 | 865,000 | 721,000 | 870,000 | 960,000 | 884,000 | 749,000 | 3,157,420 | 3,462,770 | 3,157,808 | |||
Acquisition costs | 311,000 | 347,000 | 283,000 | 276,000 | 325,000 | 322,000 | 303,000 | 265,000 | 1,217,003 | 1,213,822 | 1,077,628 | |||
Other expenses | 120,000 | 416,000 | 130,000 | 125,000 | 123,000 | 108,000 | 107,000 | 111,000 | 790,723 | 449,688 | 500,466 | |||
Interest expense | 12,000 | 12,000 | 12,000 | 12,000 | 12,000 | 12,000 | 12,000 | 12,000 | 48,988 | 48,963 | 48,929 | |||
Amortization of intangible assets | 6,000 | 7,000 | 7,000 | 7,000 | 6,000 | 7,000 | 7,000 | 7,000 | 26,593 | 27,486 | 27,180 | |||
Net foreign exchange losses (gains) | (6,000) | 22,000 | 6,000 | (13,000) | (7,000) | (8,000) | (2,000) | 0 | 9,461 | (18,201) | 18,203 | |||
Total expenses | 1,210,000 | 1,608,000 | 1,303,000 | 1,128,000 | 1,329,000 | 1,401,000 | 1,311,000 | 1,144,000 | 5,250,188 | 5,184,528 | 4,830,214 | |||
Income before taxes and interest in earnings of equity method investments | 169,000 | (209,000) | (111,000) | 332,000 | 334,000 | 242,000 | 347,000 | 369,000 | 180,439 | 1,292,349 | 708,193 | |||
Income tax expense | (3,000) | 17,000 | (14,000) | 80,000 | 53,000 | 46,000 | 78,000 | 62,000 | 79,664 | 239,506 | 48,416 | |||
Interest in earnings of equity method investments | 5,000 | (3,000) | 8,000 | (4,000) | (1,000) | 5,000 | 5,000 | 6,000 | 6,375 | 15,270 | 13,665 | |||
Net income | 177,000 | (229,000) | (89,000) | 248,000 | 280,000 | 201,000 | 274,000 | 313,000 | 107,150 | 1,068,113 | 673,442 | |||
Net income attributable to noncontrolling interests | 0 | 0 | 0 | (2,000) | (3,000) | (5,000) | (2,000) | (3,000) | (2,769) | (13,139) | (9,434) | |||
Net income attributable to PartnerRe Ltd. | 177,000 | (229,000) | (89,000) | 246,000 | 277,000 | 196,000 | 272,000 | 310,000 | 104,381 | 1,054,974 | 664,008 | |||
Preferred dividends | 14,000 | 14,000 | 14,000 | 14,000 | 14,000 | 14,000 | 14,000 | 14,000 | 56,735 | 56,735 | 57,861 | |||
Loss on redemption of preferred shares | 0 | 0 | 9,135 | |||||||||||
Net income attributable to PartnerRe Ltd. common shareholders | 163,000 | (243,000) | (103,000) | 232,000 | 263,000 | 182,000 | 258,000 | 296,000 | 47,646 | 998,239 | 597,012 | |||
Comprehensive income | ||||||||||||||
Net income attributable to PartnerRe Ltd. | $ 177,000 | $ (229,000) | $ (89,000) | $ 246,000 | $ 277,000 | $ 196,000 | $ 272,000 | $ 310,000 | 104,381 | 1,054,974 | 664,008 | |||
Change in currency translation adjustment | (46,055) | (8,892) | (31,778) | |||||||||||
Change in unfunded pension obligation, net of tax | (2,285) | (12,067) | 9,861 | |||||||||||
Change in unrealized losses on investments, net of tax | (860) | (886) | (918) | |||||||||||
Total other comprehensive loss, net of tax | (49,200) | (21,845) | (22,835) | |||||||||||
Comprehensive income attributable to PartnerRe Ltd. | $ 55,181 | $ 1,033,129 | $ 641,173 | |||||||||||
Net income per common share: | ||||||||||||||
Basic net income | $ 3.39 | $ (5.08) | $ (2.16) | $ 4.88 | $ 5.39 | $ 3.68 | $ 5.13 | $ 5.72 | $ 1 | $ 19.96 | $ 10.78 | |||
Diluted net income | $ 3.30 | $ (5.08) | $ (2.16) | $ 4.76 | $ 5.26 | $ 3.60 | $ 5.02 | $ 5.61 | $ 0.97 | [1] | $ 19.51 | [1] | $ 10.58 | [1] |
Weighted average number of common shares outstanding | 47,771,673 | 50,019,480 | 55,378,980 | |||||||||||
Weighted average number of common shares and common share equivalents outstanding | 48,939,870 | 51,174,225 | 56,448,105 | |||||||||||
[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. |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Shares [Member] | Preferred shares | Additional Paid-in Capital [Member] | Accumulated other comprehensive loss | Currency translation adjustment | Unfunded pension obligation | Unrealized gain on investments | Retained earnings | Common shares held in treasury | Noncontrolling interests |
Balance at beginning of year 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) | ||
Issuance of common shares | 1,197 | 26,444 | |||||||||
Issuance of preferred shares | 10,000 | 231,265 | |||||||||
Redemption of preferred shares | (11,600) | (269,265) | |||||||||
Stock compensation expense, net of taxes paid | 51,339 | ||||||||||
Change in currency translation adjustment | $ (31,778) | (31,778) | |||||||||
Change in net unrealized gain on designated net investment hedge | 0 | ||||||||||
Change in unfunded pension obligation, net of tax | 9,861 | 9,861 | |||||||||
Change in unrealized losses on investments, net of tax | (918) | (918) | |||||||||
Net income | 673,442 | 673,442 | |||||||||
Net income attributable to noncontrolling interests | (9,434) | (9,434) | |||||||||
Repurchase of common shares | (695,300) | (695,304) | |||||||||
Reissuance of common shares | 0 | 0 | |||||||||
Dividends on common shares | (142,217) | ||||||||||
Dividends on preferred shares | (57,861) | (57,861) | |||||||||
Loss on redemption of preferred shares | (9,135) | (9,135) | |||||||||
Balance at end of year at Dec. 31, 2013 | 6,709,532 | 86,657 | 34,150 | 3,901,627 | (12,238) | 977 | (17,509) | 4,294 | 5,406,797 | (2,707,461) | |
Noncontrolling interests | $ 56,627 | ||||||||||
Total shareholders' equity | 6,766,159 | ||||||||||
Issuance of common shares | 580 | 22,519 | |||||||||
Issuance of preferred shares | 0 | 0 | |||||||||
Redemption of preferred shares | 0 | 0 | |||||||||
Stock compensation expense, net of taxes paid | 25,519 | ||||||||||
Change in currency translation adjustment | (8,892) | (8,892) | |||||||||
Change in net unrealized gain on designated net investment hedge | 0 | ||||||||||
Change in unfunded pension obligation, net of tax | (12,067) | (12,067) | |||||||||
Change in unrealized losses on investments, net of tax | (886) | (886) | |||||||||
Net income | 1,068,113 | 1,068,113 | |||||||||
Net income attributable to noncontrolling interests | (13,139) | (13,139) | |||||||||
Repurchase of common shares | (551,400) | (551,409) | |||||||||
Reissuance of common shares | 0 | 0 | |||||||||
Dividends on common shares | (134,225) | ||||||||||
Dividends on preferred shares | (56,735) | (56,735) | |||||||||
Loss on redemption of preferred shares | 0 | 0 | |||||||||
Balance at end of year at Dec. 31, 2014 | 7,048,910 | 87,237 | 34,150 | 3,949,665 | (34,083) | (7,915) | (29,576) | 3,408 | 6,270,811 | (3,258,870) | |
Noncontrolling interests | 55,501 | 55,501 | |||||||||
Total shareholders' equity | 7,104,411 | ||||||||||
Issuance of common shares | 0 | 0 | |||||||||
Issuance of preferred shares | 0 | 0 | |||||||||
Redemption of preferred shares | 0 | 0 | |||||||||
Stock compensation expense, net of taxes paid | 32,482 | ||||||||||
Change in currency translation adjustment | (46,055) | (36,750) | |||||||||
Change in net unrealized gain on designated net investment hedge | (9,305) | ||||||||||
Change in unfunded pension obligation, net of tax | (2,285) | (2,285) | |||||||||
Change in unrealized losses on investments, net of tax | (860) | (860) | |||||||||
Net income | 107,150 | 107,150 | |||||||||
Net income attributable to noncontrolling interests | (2,769) | (2,769) | |||||||||
Repurchase of common shares | (59,300) | (59,266) | |||||||||
Reissuance of common shares | (38,051) | 51,584 | |||||||||
Dividends on common shares | (133,604) | ||||||||||
Dividends on preferred shares | (56,735) | (56,735) | |||||||||
Loss on redemption of preferred shares | 0 | 0 | |||||||||
Balance at end of year at Dec. 31, 2015 | 6,900,501 | $ 87,237 | $ 34,150 | $ 3,982,147 | $ (83,283) | $ (53,970) | $ (31,861) | $ 2,548 | $ 6,146,802 | $ (3,266,552) | |
Noncontrolling interests | 2,450 | $ 2,450 | |||||||||
Total shareholders' equity | $ 6,902,951 |
Consolidated Statements of Sha6
Consolidated Statements of Shareholders' Equity (Parentheticals) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Unfunded pension obligation [Member] | |||
Shareholders Equity Parentheticals | |||
Balance at end of period, unfunded pension obligation, tax impact | $ 8,804,000 | $ 8,301,000 | $ 5,029,000 |
Unrealized gain on investments [Member] | |||
Shareholders Equity Parentheticals | |||
Balance at end of period, unrealized gain on investments, tax impact | $ 0 | $ 0 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities | |||
Net income | $ 107,150 | $ 1,068,113 | $ 673,442 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Amortization of net premium on investments | 93,754 | 107,047 | 151,666 |
Amortization of intangible assets | 26,593 | 27,486 | 27,180 |
Net realized and unrealized investment losses (gains) | 297,479 | (371,796) | 160,735 |
Changes in: | |||
Reinsurance balances, net | (122,866) | (142,268) | (507,346) |
Reinsurance recoverable on paid and unpaid losses, net of ceded premiums payable | 55,172 | 46,857 | 45,422 |
Funds held by reinsured companies and funds held – directly managed | 131,713 | 188,902 | 99,394 |
Deferred acquisition costs | (5,784) | (55,786) | (72,956) |
Net tax assets and liabilities | (105,635) | (10,951) | (99,067) |
Unpaid losses and loss expenses including life policy benefits | (118,976) | (168,490) | 41,956 |
Unearned premiums | (39,630) | 110,689 | 198,316 |
Other net changes in operating assets and liabilities | (158) | 52,796 | 108,525 |
Net cash provided by operating activities | 318,812 | 852,599 | 827,267 |
Cash flows from investing activities | |||
Redemptions of fixed maturities | 743,743 | 696,301 | 1,167,483 |
Sales and redemptions of short-term investments | 178,166 | 92,956 | 312,376 |
Purchases of short-term investments | (200,533) | (106,364) | (176,339) |
Other, net | (151,198) | (58,840) | (786) |
Net cash provided by (used in) investing activities | 295,274 | (250,007) | 417,993 |
Cash flows from financing activities | |||
Dividends paid to common and preferred shareholders | (190,339) | (190,960) | (200,078) |
Repurchase of common shares | (71,376) | (547,120) | (715,421) |
Reissuance of treasury shares and issuance of common shares, net of taxes paid | 7,996 | 16,785 | 51,111 |
(Distribution) sale of shares to noncontrolling interests | (55,820) | (14,265) | 47,193 |
Net proceeds from issuance of preferred shares | 0 | 0 | 241,265 |
Repurchase of preferred shares | 0 | 0 | (290,000) |
Net cash used in financing activities | (309,539) | (735,560) | (865,930) |
Effect of foreign exchange rate changes on cash | (40,918) | (50,049) | (4,550) |
Increase (decrease) in cash and cash equivalents | 263,629 | (183,017) | 374,780 |
Cash and cash equivalents—beginning of year | 1,313,468 | 1,496,485 | 1,121,705 |
Cash and cash equivalents—end of year | 1,577,097 | 1,313,468 | 1,496,485 |
Supplemental cash flow information: | |||
Taxes paid | 220,336 | 284,798 | 174,031 |
Interest paid | 49,259 | 49,259 | 49,259 |
Fixed maturities | |||
Sales of fixed maturities and sales of equities | 7,796,537 | 8,730,831 | 7,887,186 |
Purchases of fixed maturities and purchases of equities | (8,608,288) | (9,844,660) | (8,872,874) |
Equities | |||
Sales of fixed maturities and sales of equities | 1,184,380 | 691,970 | 796,403 |
Purchases of fixed maturities and purchases of equities | $ (647,533) | $ (452,201) | $ (695,456) |
Organization
Organization | 12 Months Ended |
Dec. 31, 2015 | |
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 (PartnerRe Europe), Partner Reinsurance Company of the U.S. (PartnerRe U.S.) and, effective April 1, 2015, Partner Reinsurance Asia Pte. Ltd. (PartnerRe Asia). 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. The Company was incorporated in August 1993 under the laws of Bermuda. The Company commenced operations in November 1993 upon completion of the sale of common shares and warrants pursuant to subscription agreements and an initial public offering. The Company completed the acquisition of SAFR (subsequently renamed PartnerRe SA and reinsurance business transferred into PartnerRe Europe) in 1997, the acquisition of the reinsurance operations of Winterthur Group (Winterthur Re) in 1998, and the acquisition of PARIS RE Holdings Limited (Paris Re) in 2009. Effective December 31, 2012, the Company completed the acquisition of Presidio Reinsurance Group, Inc. (subsequently renamed and referred to herein as PartnerRe Health), a U.S. specialty accident and health reinsurance and insurance writer. As of April 1, 2015, PartnerRe Asia became the principal reinsurance carrier for the Company’s non-life and life business underwritten in the Asia Pacific region. The establishment of PartnerRe Asia has enabled the Company's Asian reinsurance operations to be consolidated into one regional, well-capitalized entity and will support its growing underwriting presence in the region. In January 2015, the Company entered into an Agreement and Plan of Amalgamation (Amalgamation Agreement) with Axis Capital Holdings Limited, a Bermuda exempted company (AXIS), pursuant to which the two companies would amalgamate and continue as a single Bermuda exempted company. On April 14, 2015, the Company announced the receipt of an unsolicited written proposal from EXOR S.p.A. (EXOR), a European investment company controlled by the Agnelli family, to acquire 100% of the outstanding common shares of the Company for $130 per share in cash. On August 2, 2015, after subsequent negotiations with EXOR, the Company entered into an Agreement and Plan of Merger with Exor N.V., Pillar Ltd., a wholly owned subsidiary of Exor N.V., and, solely with respect to certain specified sections thereof, EXOR (as subsequently amended, the Merger Agreement). The transaction would be effected by a merger of Pillar Ltd. with and into the Company, with the Company continuing as the surviving company and a wholly owned subsidiary of Exor N.V. (Merger). Pursuant to the terms of the Merger Agreement, each PartnerRe common share issued and outstanding immediately prior to the effective time of the Merger shall automatically be canceled and converted into the right to receive (i) $137.50 in cash per share and (ii) be entitled to receive a one-time special pre-closing cash dividend in the amount of $3.00 per common share. In addition, under the terms of the Merger Agreement, EXOR committed to either (i) a 100 basis points increase in the current applicable preferred share dividend rate, such increase to be effected through an exchange offer and to be conditional and contingent upon the Company obtaining a private letter ruling from the U.S. Internal Revenue Service (IRS) that the enhanced terms will not be treated as fast-pay stock (within the meaning of Treasury Regulations Section 1.7701(l)-3(b)) for U.S. federal income tax purposes or (ii) if such private letter ruling is not obtained prior to closing of the transaction, pay a cash payment of approximately $42.7 million in aggregate (equal to $1.25 per preferred share) to the holders of record of the Company’s preferred shares as at the effective time of the Merger subject and subsequent to the closing of the transaction. On February 17, 2016, the Company announced that the IRS had indicated that it will not grant a private letter ruling clarifying the tax shelter reporting obligations applicable to the surviving company’s preferred shares. As such, following the closing, EXOR will pay a cash payment of approximately $42.7 million in aggregate to the holders of record of the Company’s preferred shares as at the effective time of the Merger and the Company will use commercially reasonable efforts to launch an exchange offer after the closing of the Merger, referred to as the Alternate Exchange Offer in the Merger Agreement, whereby participating preferred shareholders would receive newly issued preferred shares reflecting, subject to certain exceptions contained in the existing preferred shares, an extended call date of the fifth anniversary of the date of issuance and a restriction on payment of dividends on common shares to an amount not exceeding 67% of net income until December 31, 2020. The terms of the newly issued preferred shares would be otherwise identical in all material respects to the Company’s applicable existing preferred shares. In connection with the execution of the Merger Agreement with EXOR, the Company and AXIS terminated the Amalgamation Agreement. On August 3, 2015, the Company paid AXIS a termination fee and reimbursement of expenses of $315 million (AXIS Termination Fee). On November 19, 2015, the Merger with EXOR was approved by the Company's shareholders and the consummation of the Merger is pending certain regulatory approvals and other customary closing conditions. In addition, the Board of Directors (BOD) declared the special dividend, which is conditional and contingent upon the issuance of the certificate of merger by the Bermuda Registrar of Companies. See Note 18 for further details. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure - Significant Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies [Text Block] | 2. Significant Accounting Policies The Company’s Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP). The Consolidated Financial Statements include the accounts of the Company and its subsidiaries. Intercompany accounts and transactions have been eliminated. To facilitate comparison of information across periods, certain reclassifications have been made to prior period amounts to conform to the current year's presentation. 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 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. The following are the Company’s significant accounting policies: (a) Premiums Gross premiums written and earned are based upon reports received from ceding companies, supplemented by the Company’s own estimates of premiums written and earned for which ceding company reports have not been received. The determination of premium estimates requires a review of the Company’s experience with cedants, familiarity with each market, an understanding of the characteristics of each line of business and Management’s assessment of the impact of various other factors on the volume of business written and ceded to the Company. Premium estimates are updated as new information is received from cedants and differences between such estimates and actual amounts are recorded in the period in which the estimates are changed or the actual amounts are determined. Net premiums written and earned are presented net of ceded premiums, which represent the cost of retrocessional protection purchased by the Company. Premiums are earned on a basis that is consistent with the risks covered under the terms of the reinsurance contracts, which is generally one to two years. For U.S. and European wind and certain other risks, premiums are earned commensurate with the seasonality of the underlying exposure. Reinstatement premiums are recognized as written and earned at the time a loss event occurs, where coverage limits for the remaining life of the contract are reinstated under pre-defined contract terms. The accrual of reinstatement premiums is based on Management’s estimate of losses and loss expenses associated with the loss event. Unearned premiums represent the portion of premiums written which is applicable to the unexpired risks under contracts in force. Premiums related to individual life and annuity business are recorded over the premium-paying period on the underlying policies. Premiums on annuity and universal life contracts for which there is no significant mortality or critical illness risk are accounted for in a manner consistent with accounting for interest-bearing financial instruments and are not reported as revenues, but rather as direct deposits to the contract. Amounts assessed against annuity and universal life policyholders are recognized as revenue in the period assessed. (b) Losses and Loss Expenses and Life Policy Benefits The liability for unpaid losses and loss expenses includes amounts determined from loss reports on individual treaties (case reserves), additional case reserves when the Company’s loss estimate is higher than reported by the cedants (ACRs) and amounts for losses incurred but not yet reported to the Company (IBNR). Such reserves are estimated by Management based upon reports received from ceding companies, supplemented by the Company’s own actuarial estimates of reserves for which ceding company reports have not been received, and based on the Company’s own historical experience. To the extent that the Company’s own historical experience is inadequate for estimating reserves, such estimates may be determined based upon industry experience and Management’s judgment. The estimates are continually reviewed and the ultimate liability may be in excess of, or less than, the amounts provided. Any adjustments are reflected in the periods in which they are determined, which may affect the Company’s operating results in future periods. The liabilities for policy benefits for ordinary life and accident and health policies have been established based upon information reported by ceding companies, supplemented by the Company’s actuarial estimates of mortality, critical illness, persistency and future investment income, with appropriate provision to reflect uncertainty. Future policy benefit reserves for annuity and universal life contracts are carried at their accumulated values. Reserves for policy claims and benefits include both mortality and critical illness claims in the process of settlement, and claims that have been incurred but not yet reported. The Company purchases retrocessional contracts to reduce its exposure to risk of losses on reinsurance assumed. Reinsurance recoverable on paid and unpaid losses involves actuarial estimates consistent with those used to establish the associated liabilities for unpaid losses and loss expenses and life policy benefits. (c) Deferred Acquisition Costs Acquisition costs, comprising only incremental brokerage fees, commissions and excise taxes, which vary directly with, and are related to, the acquisition of reinsurance contracts, are capitalized and charged to expense as the related premium is earned. All other acquisition related costs, including all indirect costs, are expensed as incurred. Acquisition costs related to individual life and annuity contracts are deferred and amortized over the premium-paying periods in proportion to anticipated premium income, allowing for lapses, terminations and anticipated investment income. Acquisition costs related to universal life and single premium annuity contracts for which there is no significant mortality or critical illness risk are deferred and amortized over the lives of the contracts as a percentage of the estimated gross profits expected to be realized on the contracts. Actual and anticipated losses and loss expenses, other costs and investment income related to underlying premiums are considered in determining the recoverability of deferred acquisition costs related to the Company’s Non-life business. Actual and anticipated loss experience, together with the present value of future gross premiums, the present value of future benefits, settlement and maintenance costs are considered in determining the recoverability of deferred acquisition costs related to the Company’s Life business. (d) Funds Held by Reinsured Companies (Cedants) The Company writes certain business on a funds held basis. Under such contractual arrangements, the cedant retains the premiums that would have otherwise been paid to the Company and the Company earns interest on these funds. With the exception of those arrangements discussed below, the Company generally earns investment income on the funds held balances based upon a predetermined interest rate, either fixed contractually at the inception of the contract or based upon a recognized index (e.g., LIBOR). In certain circumstances, the Company may receive an investment return based upon either the result of a pool of assets held by the cedant, generally used to collateralize the funds held balance, or the investment return earned by the cedant on its entire investment portfolio. In these arrangements, gross investment returns are typically reflected in net investment income with a corresponding increase or decrease (net of a spread) being recorded as life policy benefits in the Company’s Consolidated Statements of Operations. In these arrangements, the Company is exposed, to a limited extent, to the underlying credit risk of the pool of assets inasmuch as the underlying life policies may have guaranteed minimum returns. In such cases, an embedded derivative exists and its fair value is recorded by the Company as an increase or decrease to the funds held balance. (e) Deposit Assets and Liabilities In the normal course of its operations, the Company writes certain contracts that do not meet the risk transfer provisions of U.S. GAAP. While these contracts do not meet risk transfer provisions for accounting purposes, there is a remote possibility that the Company will suffer a loss. The Company accounts for these contracts using the deposit accounting method, originally recording deposit liabilities for an amount equivalent to the consideration received. The consideration to be retained by the Company, irrespective of the experience of the contracts, is earned over the expected settlement period of the contracts, with any unearned portion recorded as a component of deposit liabilities. Actuarial studies are used to estimate the final liabilities under these contracts and the appropriate accretion rates to increase or decrease the liabilities over the term of the contracts. The change for the period is recorded in other income or loss in the Consolidated Statements of Operations. Under some of these contracts, cedants retain the assets on a funds-held basis. In those cases, the Company records those assets as deposit assets and records the related income in net investment income in the Consolidated Statements of Operations. (f) Investments The Company elects the fair value option for all of its fixed maturities, short-term investments, equities and certain other invested assets (excluding those that are accounted for using the cost or equity methods of accounting). All changes in the fair value of investments are recorded in net realized and unrealized investment gains and losses in the Consolidated Statements of Operations. The Company defines fair value as the price received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company measures the fair value of financial instruments according to a fair value hierarchy that prioritizes the information used to measure fair value into three broad levels. The Company’s policy is to recognize transfers between the hierarchy levels at the beginning of the period. See Note 3 for additional information on fair value. Short-term investments comprise securities with a maturity greater than three months but less than one year from the date of purchase. Other invested assets consist primarily of investments in non-publicly traded companies, private placement equity and fixed maturity investments, derivative financial instruments and other specialty asset classes. Non-publicly traded entities in which the Company has an ownership of more than 20% and less than 50% of the voting shares, and limited partnerships in which the Company has more than a minor interest, are accounted for using either the equity method or the fair value option. The remaining other invested assets are recorded based on valuation techniques depending on the nature of the individual assets. The valuation techniques used by the Company are generally commensurate with standard valuation techniques for each asset class. Net investment income includes interest and dividend income, amortization of premiums and discounts on fixed maturities and short-term investments and investment income on funds held and funds held – directly managed, and is net of investment expenses and withholding taxes. Investment income is recognized when earned. Realized gains and losses on the disposal of investments are determined on a first-in, first-out basis. Investment purchases and sales are recorded on a trade-date basis. (g) Funds Held – Directly Managed The Company elects the fair value option for substantially all of the fixed maturities, short-term investments and certain other invested assets in the segregated investment portfolio underlying the funds held – directly managed account. Accordingly, all changes in the fair value of the segregated investment portfolio underlying the funds held – directly managed account are recorded in net realized and unrealized investment gains and losses in the Consolidated Statements of Operations. (h) Cash and Cash Equivalents Cash equivalents are carried at fair value and include fixed income securities that, at purchase, have a maturity of three months or less. (i) Business Combinations The Company accounts for transactions in which it obtains control over one or more businesses using the acquisition method. The purchase price is allocated to identifiable assets and liabilities, including any intangible assets, based on their estimated fair value at the acquisition date. The estimates of fair values for assets and liabilities acquired are determined based on various market and income analyses and appraisals. Any excess of the purchase price over the fair value of net assets acquired is recorded as goodwill in the Company’s Consolidated Balance Sheets. All costs associated with an acquisition are expensed as incurred. (j) Goodwill Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in a business combination. The Company assesses the appropriateness of its valuation of goodwill on at least an annual basis or more frequently if events or changes in circumstances indicate that the carrying amount may not be recoverable. If, as a result of the assessment, the Company determines that the value of its goodwill is impaired, goodwill will be written down in the period in which the determination is made. (k) Intangible Assets Intangible assets represent the fair value adjustments related to unpaid losses and loss expenses and the fair values of renewal rights, customer relationships and U.S. licenses arising from acquisitions. Definite-lived intangible assets are amortized over their useful lives. The Company recognizes the amortization of all definite-lived intangible assets in the Consolidated Statement of Operations. Indefinite-lived intangible assets are not subject to amortization. The carrying values of indefinite-lived intangible assets are reviewed for indicators of impairment on at least an annual basis or more frequently if events or changes in circumstances indicate that impairment may exist. Impairment is recognized if the carrying values of the intangible assets are not recoverable from their undiscounted cash flows and is measured as the difference between the carrying value and the fair value. (l) Income Taxes Certain subsidiaries and branches of the Company operate in jurisdictions where they are subject to taxation. Current and deferred income taxes are charged or credited to net income or loss or, in certain cases, to accumulated other comprehensive income or loss, based upon enacted tax laws and rates applicable in the relevant jurisdiction in the period in which the tax becomes accruable or realizable. Deferred income taxes are provided for all temporary differences between the bases of assets and liabilities used in the Consolidated Balance Sheets and those used in the various jurisdictional tax returns. When Management’s assessment indicates that it is more likely than not that deferred tax assets will not be realized, a valuation allowance is recorded against the deferred tax assets. The Company recognizes a tax benefit relating to uncertain tax positions only where the position is more likely than not to be sustained assuming examination by tax authorities. A liability is recognized for any tax benefit (along with any interest and penalty, if applicable) claimed in a tax return in excess of the amount recognized in the financial statements under U.S. GAAP. Any changes in amounts recognized are recorded in the period in which they are determined. (m) Translation of Foreign Currencies The reporting currency of the Company is the U.S. dollar. The national currencies of the Company’s subsidiaries and branches are generally their functional currencies, except for the Company’s Bermuda subsidiaries, its Swiss branch and its Singapore subsidiary and branches, whose functional currency is the U.S. dollar. In translating the financial statements of those subsidiaries or branches whose functional currency is other than the U.S. dollar, assets and liabilities are converted into U.S. dollars using the rates of exchange in effect at the balance sheet dates, and revenues and expenses are converted using the average foreign exchange rates for the period. The effect of translation adjustments are reported in the Consolidated Balance Sheets as currency translation adjustment, a separate component of accumulated other comprehensive income or loss. In recording foreign currency transactions, revenue and expense items are converted into the functional currency at the average rates of exchange for the period. Assets and liabilities originating in currencies other than the functional currency are translated into the functional currency at the rates of exchange in effect at the balance sheet dates. The resulting foreign exchange gains or losses are included in net foreign exchange gains or losses in the Consolidated Statements of Operations. The Company also records realized and unrealized foreign exchange gains and losses on certain hedged items in net foreign exchange gains or losses in the Consolidated Statements of Operations (see Note 2(n)). (n) Derivatives Derivatives Used in Hedging Activities The Company utilizes derivative financial instruments as part of its overall currency risk management strategy. The Company recognizes all derivative financial instruments, including embedded derivative instruments, as either assets or liabilities in the Consolidated Balance Sheets and measures those instruments at fair value. On the date the Company enters into a derivative contract, Management designates whether the derivative is to be used as a hedge of an identified underlying exposure (a designated hedge). The accounting for gains and losses associated with changes in the fair value of a derivative and the effect on the Consolidated Financial Statements depends on its hedge designation and whether the hedge is highly effective in achieving offsetting changes in the fair value of the asset or liability being hedged. The derivatives employed by the Company to hedge currency exposure related to fixed income securities and other reinsurance assets and liabilities are not designated as hedges. The changes in fair value of these derivatives not designated as hedges are recognized in net foreign exchange gains and losses in the Consolidated Statements of Operations. As part of its overall strategy to manage its level of currency exposure, from time to time the Company uses forward foreign exchange derivatives to hedge or partially hedge the net investment in certain subsidiaries and branches whose functional currencies are not the U.S. dollar. These derivatives are designated as net investment hedges, and accordingly, the changes in fair value of the derivative and the hedged item related to foreign currency are recognized in currency translation adjustment in the Consolidated Balance Sheets. The Company also uses, from time to time, interest rate derivatives to mitigate exposure to interest rate volatility. The Company formally documents all relationships between designated hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking various hedge transactions. In this documentation, the Company specifically identifies the asset or liability that has been designated as a hedged item and states how the hedging instrument is expected to hedge the risks related to the hedged item. The Company formally measures effectiveness of its designated hedging relationships both at the hedge inception and on an ongoing basis. The Company assesses the effectiveness of its designated hedges using the period-to-period dollar offset method on an individual currency basis. If the ratio obtained with this method is within the range of 80% to 125%, the Company considers the hedge effective. The time value component of the designated net investment hedges is included in the assessment of hedge effectiveness. The Company will discontinue hedge accounting prospectively if it is determined that the derivative is no longer effective in offsetting changes in the fair value of a hedged item. To the extent that the Company discontinues hedge accounting related to its net investment in subsidiaries and branches whose functional currencies are not the U.S. dollar, because, based on Management’s assessment, the derivative no longer qualifies as an effective hedge, the derivative will continue to be carried in the Consolidated Balance Sheets at its fair value, with changes in its fair value recognized in net foreign exchange gains and losses. Other Derivatives The Company’s investment strategy allows for the use of derivative instruments, subject to strict limitations. The Company utilizes various derivative instruments such as foreign exchange forward contracts, foreign currency option contracts, futures contracts, to-be-announced mortgage-backed securities (TBAs) and credit default swaps for the purpose of managing overall currency risk, market exposures and portfolio duration, for hedging certain investments, or for enhancing investment performance that would be allowed under the Company’s investment policy if implemented in other ways. These instruments are recorded at fair value as assets and liabilities in the Consolidated Balance Sheets. Changes in fair value are included in net realized and unrealized investment gains or losses in the Consolidated Statements of Operations, except changes in the fair value of foreign currency option contracts and foreign exchange forward contracts which are included in net foreign exchange gains or losses in the Consolidated Statements of Operations. Margin balances required by counterparties, which are equal to a percentage of the total value of open futures contracts, are included in cash and cash equivalents. The Company enters from time to time into weather and longevity related transactions that are structured as derivatives, which are recorded at fair value with the changes in fair value reported in net realized and unrealized investment gains and losses in the Consolidated Statements of Operations. The Company enters from time to time into total return and interest rate swaps. Margins related to these swaps are included in other income or loss in the Consolidated Statements of Operations and any changes in the fair value of the swaps are included in net realized and unrealized investment gains and losses in the Consolidated Statements of Operations. (o) Treasury Shares Common shares repurchased by the Company and not canceled are classified as treasury shares, and are recorded at cost. This results in a reduction of shareholders’ equity in the Consolidated Balance Sheets. When shares are reissued from treasury, the Company uses the average cost method to determine the cost of the reissued shares. Gains on sales of treasury shares are credited to additional paid-in capital, while losses are charged to additional paid-in capital to the extent that previous net gains from sales of treasury shares are included therein, otherwise losses are charged to retained earnings. (p) Net Income or Loss per Common Share Diluted net income or loss per common share is defined as net income or loss attributable to PartnerRe Ltd. common shareholders divided by the weighted average number of common shares and common share equivalents outstanding, calculated using the treasury stock method for all potentially dilutive securities. Net income or loss attributable to PartnerRe Ltd. common shareholders is defined as net income or loss attributable to PartnerRe Ltd. less preferred share dividends. When the effect of dilutive securities would be anti-dilutive, these securities are excluded from the calculation of diluted net income or loss per share. Basic net income or loss per share is defined as net income or loss attributable to PartnerRe Ltd. common shareholders divided by the weighted average number of common shares outstanding for the period, giving no effect to dilutive securities. (q) Share-Based Compensation The Company uses six types of share-based compensation: share options, restricted shares (RS), restricted share units (RSUs), performance-based RSUs (PSUs), share-settled share appreciation rights (SSARs) and shares issued under the Company’s employee share purchase plans. The majority of the Company’s share-based compensation awards qualify for equity classification. The fair value of the compensation cost is measured at the grant date and is expensed over the period for which the employee is required to provide services in exchange for the award. Awards of PSUs provide performance-based equity awards based on pre-established targets relating to certain performance measures achieved by the Company. The compensation expense for PSUs is initially based on the target performance measure at the time of award and is subject to periodic review and adjustment based on expected actual performance. Forfeiture benefits on all awards are estimated at the time of grant and incorporated in the determination of share-based compensation costs. Awards granted to employees who are eligible for retirement and do not have to provide additional services are expensed at the date of grant. Those share-based compensation awards that do not meet the equity classification criteria are classified as liability awards. Liability-classified awards are recorded at fair value in the Accounts payable, accrued expenses and other in the Consolidated Balance Sheets with changes in fair value relating to the vested portion of the award recorded within Other expenses in the Consolidated Statements of Operations. (r) Pensions The Company recognizes an asset or a liability in the Consolidated Balance Sheets for the funded status of its defined benefit plans that are overfunded or underfunded, respectively, measured as the difference between the fair value of plan assets and the pension obligation and recognizes changes in the funded status of defined benefit plans in the year in which the changes occur as a component of accumulated other comprehensive income or loss, net of tax. (s) Variable Interest Entities and Noncontrolling Interests The Company is involved in the normal course of business with variable interest entities (VIEs) including certain limited partnerships, trusts, fixed maturity investments and asset-backed securities. The Company performs a qualitative assessment at the date when it becomes initially involved in the VIE followed by ongoing reassessments related to its involvement in VIEs. The Company’s maximum exposure to loss with respect to these investments is limited to the amounts invested in and advanced to the VIEs that are reported within fixed maturities and other invested assets in the Company’s Consolidated Balance Sheets and any unfunded commitments. The Company also has three indirect 100% owned subsidiaries, PartnerRe Finance A LLC, PartnerRe Finance B LLC and PartnerRe Finance II Inc., that are considered to be VIEs, which were utilized to issue the Company’s debt related to senior notes (Senior Notes) and Capital Efficient Notes (CENts). The Company determined that it was not the primary beneficiary of any of these VIEs at December 31, 2015 . As a result, the Company has not consolidated PartnerRe Finance A LLC, PartnerRe Finance B LLC and PartnerRe Finance II Inc., and has reflected the debt issued by the Company related to the Senior Notes and CENts as liabilities in the Consolidated Balance Sheets (see Note 10). The interest on the debt related to the Senior Notes and CENts is reported as interest expense in the Consolidated Statements of Operations. (t) Segment Reporting The Company monitors the performance of its operations in three segments, Non-life, Life and Health and Corporate and Other. The Non-life segment is further divided into four sub-segments: North America, Global (Non-U.S.) Property and Casualty (Global (Non-U.S.) P&C), Global Specialty and Catastrophe. Segments and sub-segments represent markets that are reasonably homogeneous in terms of geography, client types, buying patterns, underlying risk patterns or approach to risk management. (u) Recent Accounting Pronouncements In February 2015, the Financial Accounting Standards Board (FASB) issued updated guidance on the consolidation of voting interest entities and variable interest entities. The update requires entities to reevaluate whether they should consolidate certain legal entities. The guidance is effective for interim and annual periods beginning after December 15, 2015, with early adoption permitted. The adoption of this guidance on January 1, 2016 did not have a significant impact on the Company's Consolidated Financial Statements and disclosures. In May 2015, the FASB issued updated guidance on disclosures related to short-duration insurance contracts. The update expands required disclosures to increase the transparency of significant estimates made in measuring the liability for unpaid losses and loss expenses, improve comparability and facilitate financial statement users' analysis of the cash flows arising from re/insurance contracts and the development of loss reserve estimates. The guidance is effective for annual periods beginning after December 15, 2015 and interim periods within annual periods beginning after December 15, 2016, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this guidance on its disclosures. In May 2015, the FASB issued updated guidance on disclosures for investments in certain entities that calculate net asset value (NAV) per share (or its equivalent). The update eliminates the requirement to categorize investments measured using the NAV practical expedient in the fair value hierarchy table. The guidance is applicable retrospectively and is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods, with early adoption permitted. The adoption of this guidance did not have a significant impact on the Company's Consolidated Financial Statements and disclosures. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | 3. 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; asset-backed securities; mortgage-backed securities; short-term investments; certain equities traded on foreign exchanges; certain preferred equities; certain fixed income mutual funds; foreign exchange forward contracts and over-the-counter derivatives such as foreign currency option contracts, interest rate swaps and 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; 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 financial instruments measured at fair value include investments and the segregated investment portfolio underlying the funds held – directly managed account (see Notes 4 and 5). At December 31, 2015 and 2014 , 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): December 31, 2015 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Total Fixed maturities U.S. government and government sponsored enterprises $ — $ 2,872,845 $ — $ 2,872,845 U.S. states, territories and municipalities — 639,479 138,847 778,326 Non-U.S. sovereign government, supranational and government related — 1,332,925 — 1,332,925 Corporate — 5,086,199 — 5,086,199 Asset-backed securities — 668,117 369,699 1,037,816 Residential mortgage-backed securities — 2,290,640 — 2,290,640 Other mortgage-backed securities — 49,511 — 49,511 Fixed maturities $ — $ 12,939,716 $ 508,546 $ 13,448,262 Short-term investments $ — $ 46,688 $ — $ 46,688 Equities Insurance $ 72,226 $ 7,799 $ — $ 80,025 Finance 29,422 5,497 22,760 57,679 Real estate investment trusts 46,379 — — 46,379 Consumer noncyclical 43,375 — — 43,375 Industrials 26,863 7,401 — 34,264 Technology 21,177 — 8,207 29,384 Consumer cyclical 25,871 — — 25,871 Communications 20,939 — 1,985 22,924 Other 28,197 — — 28,197 Mutual funds and exchange traded funds 71,159 — 4,604 75,763 Equities $ 385,608 $ 20,697 $ 37,556 $ 443,861 Other invested assets Derivative assets Foreign exchange forward contracts $ — $ 15,311 $ — $ 15,311 Futures contracts 5,675 — — 5,675 Insurance-linked securities — — 9,428 9,428 Total return swaps — — 2,745 2,745 Other Notes and loan receivables and notes securitization — — 125,922 125,922 Annuities and residuals — — 8,436 8,436 Private equities — — 71,298 71,298 Derivative liabilities Foreign exchange forward contracts — (15,109 ) — (15,109 ) Futures contracts (140 ) — — (140 ) Insurance-linked securities — — (3,944 ) (3,944 ) Total return swaps — — (2,878 ) (2,878 ) Interest rate swaps — (24,383 ) — (24,383 ) TBAs — (1,462 ) — (1,462 ) Other invested assets $ 5,535 $ (25,643 ) $ 211,007 $ 190,899 Funds held – directly managed U.S. government and government sponsored enterprises $ — $ 169,951 $ — $ 169,951 Non-U.S. sovereign government, supranational and government related — 119,487 — 119,487 Corporate — 99,349 — 99,349 Short-term investments — 966 — 966 Other invested assets — — 10,146 10,146 Funds held – directly managed $ — $ 389,753 $ 10,146 $ 399,899 Total $ 391,143 $ 13,371,211 $ 767,255 $ 14,529,609 December 31, 2014 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Total Fixed maturities U.S. government and government sponsored enterprises $ — $ 2,315,422 $ — $ 2,315,422 U.S. states, territories and municipalities — 380,875 149,728 530,603 Non-U.S. sovereign government, supranational and government related — 1,976,202 — 1,976,202 Corporate — 5,604,160 — 5,604,160 Asset-backed securities — 681,502 449,918 1,131,420 Residential mortgage-backed securities — 2,306,476 — 2,306,476 Other mortgage-backed securities — 54,462 — 54,462 Fixed maturities $ — $ 13,319,099 $ 599,646 $ 13,918,745 Short-term investments $ — $ 25,678 $ — $ 25,678 Equities Real estate investment trusts $ 213,770 $ — $ — $ 213,770 Insurance 140,916 4,521 — 145,437 Energy 123,978 — — 123,978 Consumer noncyclical 100,134 — — 100,134 Finance 70,621 7,354 20,353 98,328 Technology 52,707 — 8,555 61,262 Communications 51,829 — 2,640 54,469 Industrials 49,983 — — 49,983 Consumer cyclical 39,002 — — 39,002 Utilities 31,748 — — 31,748 Other 11,571 — — 11,571 Mutual funds and exchange traded funds 118,246 — 8,586 126,832 Equities $ 1,004,505 $ 11,875 $ 40,134 $ 1,056,514 Other invested assets Derivative assets Foreign exchange forward contracts $ — $ 20,033 $ — $ 20,033 Futures contracts 846 — — 846 Insurance-linked securities — — 3 3 Total return swaps — — 485 485 TBAs — 154 — 154 Other Notes and loan receivables and notes securitization — — 44,817 44,817 Annuities and residuals — — 13,243 13,243 Private equities — — 59,872 59,872 Derivative liabilities Foreign exchange forward contracts — (7,446 ) — (7,446 ) Foreign currency option contracts — (1,196 ) — (1,196 ) Futures contracts (467 ) — — (467 ) Insurance-linked securities — — (339 ) (339 ) Total return swaps — — (2,007 ) (2,007 ) Interest rate swaps — (16,282 ) — (16,282 ) TBAs — (240 ) — (240 ) Other invested assets $ 379 $ (4,977 ) $ 116,074 $ 111,476 Funds held – directly managed U.S. government and government sponsored enterprises $ — $ 153,483 $ — $ 153,483 U.S. states, territories and municipalities — — 132 132 Non-U.S. sovereign government, supranational and government related — 128,233 — 128,233 Corporate — 177,347 — 177,347 Other invested assets — — 13,398 13,398 Funds held – directly managed $ — $ 459,063 $ 13,530 $ 472,593 Total $ 1,004,884 $ 13,810,738 $ 769,384 $ 15,585,006 At December 31, 2015 and 2014 , the aggregate carrying amounts of items included in Other invested assets that the Company did not measure at fair value were $208.3 million and $187.3 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 $399.9 million and $472.6 million at December 31, 2015 and 2014 , respectively, the funds held – directly managed account also included cash and cash equivalents, carried at fair value, of $64.6 million and $42.3 million , respectively, and accrued investment income of $4.5 million and $5.7 million , respectively. At December 31, 2015 and 2014 , the aggregate carrying amounts of items included in the funds held – directly managed account that the Company did not measure at fair value were $70.7 million and $88.3 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). At December 31, 2015 and 2014 , substantially all of the accrued investment income in the 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 years ended December 31, 2015 and 2014 , 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 December 31, 2015 and 2014 , the fair values of financial instrument assets recorded in the 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 years ended December 31, 2015 and 2014 , were as follows (in thousands of U.S. dollars): For the year ended December 31, 2015 Balance at beginning of year Realized and unrealized investment gains (losses) included in net income Purchases and issuances (1) Settlements and (2) Net transfers into/(out of) Level 3 Balance at end of year Change in relating to Fixed maturities U.S. states, territories and municipalities $ 149,728 $ 16,660 $ 16,440 $ (43,981 ) $ — $ 138,847 $ 16,650 Asset-backed securities 449,918 (11,208 ) 171,249 (240,260 ) — 369,699 (10,368 ) Fixed maturities $ 599,646 $ 5,452 $ 187,689 $ (284,241 ) $ — $ 508,546 $ 6,282 Equities Finance $ 20,353 $ 2,540 $ — $ (133 ) $ — $ 22,760 $ 2,540 Technology 8,555 (348 ) — — — 8,207 (348 ) Communications 2,640 (655 ) — — — 1,985 (655 ) Mutual funds and exchange traded funds 8,586 471 249,340 (253,793 ) — 4,604 (1,009 ) Equities $ 40,134 $ 2,008 $ 249,340 $ (253,926 ) $ — $ 37,556 $ 528 Other invested assets Derivatives, net $ (1,858 ) $ 804 $ (2,051 ) $ 8,456 $ — $ 5,351 $ 7,648 Notes and loan receivables and notes securitization 44,817 (2,223 ) 88,675 (5,347 ) — 125,922 (2,223 ) Annuities and residuals 13,243 (866 ) — (3,941 ) — 8,436 (472 ) Private equities 59,872 1,239 14,484 (4,297 ) — 71,298 1,119 Other invested assets $ 116,074 $ (1,046 ) $ 101,108 $ (5,129 ) $ — $ 211,007 $ 6,072 Funds held – directly managed U.S. states, territories and municipalities $ 132 $ 68 $ — $ (200 ) $ — $ — $ — Other invested assets 13,398 (3,252 ) — — — 10,146 (3,252 ) Funds held – directly managed $ 13,530 $ (3,184 ) $ — $ (200 ) $ — $ 10,146 $ (3,252 ) Total $ 769,384 $ 3,230 $ 538,137 $ (543,496 ) $ — $ 767,255 $ 9,630 (1) Purchases and issuances of derivatives include issuances of $2.1 million . (2) Settlements and sales of mutual funds and exchange traded funds and private equities include sales of $4.4 million and $0.2 million , respectively. For the year ended December 31, 2014 Balance at beginning of year Realized and unrealized investment gains (losses) included in net income Purchases and issuances (1) Settlements and (2) Net transfers into/(out of) Level 3 Balance at end of year Change in relating to Fixed maturities U.S. states, territories and municipalities $ 108,380 $ 12,322 $ 31,470 $ (2,444 ) $ — $ 149,728 $ 12,315 Asset-backed securities 446,577 8,169 192,940 (197,768 ) — 449,918 8,616 Fixed maturities $ 554,957 $ 20,491 $ 224,410 $ (200,212 ) $ — $ 599,646 $ 20,931 Equities Finance $ 20,207 $ 146 $ — $ — $ — $ 20,353 $ 146 Technology 7,752 803 — — — 8,555 803 Communications 2,199 441 — — — 2,640 441 Other — — 8 (8 ) — — — Mutual funds and exchange traded funds 7,887 699 — — — 8,586 699 Equities $ 38,045 $ 2,089 $ 8 $ (8 ) $ — $ 40,134 $ 2,089 Other invested assets Derivatives, net $ (788 ) $ (759 ) $ (871 ) $ 560 $ — $ (1,858 ) $ (759 ) Notes and loan receivables and notes securitization 41,446 (372 ) 35,988 (32,245 ) — 44,817 1,147 Annuities and residuals 24,064 (207 ) — (10,614 ) — 13,243 (167 ) Private equities 39,131 (3,149 ) 28,410 (4,520 ) — 59,872 (3,180 ) Other invested assets $ 103,853 $ (4,487 ) $ 63,527 $ (46,819 ) $ — $ 116,074 $ (2,959 ) Funds held – directly managed U.S. states, territories and municipalities $ 286 $ 1 $ — $ (155 ) $ — $ 132 $ 13 Other invested assets 15,165 (2,102 ) 781 (446 ) — 13,398 (2,102 ) Funds held – directly managed $ 15,451 $ (2,101 ) $ 781 $ (601 ) $ — $ 13,530 $ (2,089 ) Total $ 712,306 $ 15,992 $ 288,726 $ (247,640 ) $ — $ 769,384 $ 17,972 (1) Purchases and issuances of derivatives include issuances of $0.9 million . (2) There were no sales for the year ended December 31, 2014 . The significant unobservable inputs used in the valuation of financial instruments measured at fair value using Level 3 inputs at December 31, 2015 and 2014 were as follows (fair value in thousands of U.S. dollars): December 31, 2015 Fair value Valuation techniques Unobservable inputs Range (Weighted average) Fixed maturities U.S. states, territories and municipalities $ 138,847 Discounted cash flow Credit spreads 1.2% – 10.3% (4.1%) Asset-backed securities 369,699 Discounted cash flow Credit spreads 4.1% – 11.4% (7.7%) Equities Finance 16,627 Weighted market comparables Net income multiple 14.4 (14.4) Tangible book value multiple 1.5 (1.5) Liquidity discount 25.0% (25.0%) Comparable return 7.9% (7.9%) Finance 6,133 Profitability analysis Projected return on equity 14.0% (14.0%) Technology 8,207 Weighted market comparables Revenue multiple 1.2 (1.2) Adjusted earnings multiple 8.4 (8.4) Communications 1,985 Weighted market comparables Adjusted earnings multiple 9.4 (9.4) Comparable return 0% (0%) Other invested assets Total return swaps, net (133 ) Discounted cash flow Credit spreads 3.0% – 29.3% (16.5%) Insurance-linked securities – longevity swaps 9,428 Discounted cash flow Credit spreads 2.4% (2.4%) Notes and loan receivables 84,080 Discounted cash flow Credit spreads 6.0% – 26.8% (7.4%) Notes and loan receivables 10,415 Discounted cash flow Credit spreads 17.5% (17.5%) Gross revenue/fair value 1.1 – 1.5 (1.5) Notes securitization 31,427 Discounted cash flow Credit spreads 2.4% – 7.1% (6.9%) Annuities and residuals 8,436 Discounted cash flow Credit spreads 5.1% – 15.4% (12.7%) Prepayment speed 0% – 15.0% (2.1%) Constant default rate 0.3% – 17.5% (4.4%) Private equity – direct 8,792 Discounted cash flow and weighted market comparables Net income multiple 9.2 (9.2) Tangible book value multiple 1.9 (1.9) Recoverability of intangible assets 0% (0%) Private equity funds 29,222 Reported market value Net asset value, as reported 100.0% (100.0%) Market adjustments -4.9 – 5.2% (-0.5%) Private equity – other 33,284 Discounted cash flow Effective yield 5.8% (5.8%) Funds held – directly managed Other invested assets 10,146 Reported market value Net asset value, as reported 100.0% (100.0%) Market adjustments -16.0% – 0% (-15.0%) December 31, 2014 Fair value Valuation techniques Unobservable inputs Range (Weighted average) Fixed maturities U.S. states, territories and municipalities $ 149,728 Discounted cash flow Credit spreads 2.2% – 10.1% (4.6%) Asset-backed securities 449,918 Discounted cash flow Credit spreads 4.0% – 12.1% (7.1%) Equities Finance 14,561 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 7.3% (7.3%) Finance 5,792 Profitability analysis Projected return on equity 14.0% (14.0%) Technology 8,555 Weighted market comparables Revenue multiple 1.6 (1.6) Adjusted earnings multiple 10.2 (10.2) Communications 2,640 Weighted market comparables Adjusted earnings multiple 9.4 (9.4) Comparable return -10.6% (-10.6%) Other invested assets Total return swaps, net (1,522 ) Discounted cash flow Credit spreads 3.6% – 19.3% (16.3%) Notes and loan receivables 8,068 Discounted cash flow Credit spreads 12.6% (12.6%) Notes and loan receivables 13,237 Discounted cash flow Credit spreads 17.5% (17.5%) Gross revenue/fair value 1.5 – 1.7 (1.7) Notes securitization 23,512 Discounted cash flow Credit spreads 3.5% – 6.6% (6.4%) Annuities and residuals 13,243 Discounted cash flow Credit spreads 4.9% – 9.6% (7.8%) Prepayment speed 0% – 15.0% (4.3%) Constant default rate 0.3% – 17.5% (6.3%) Private equity – direct 8,536 Discounted cash flow and weighted market comparables Net income multiple 9.0 (9.0) Tangible book value multiple 2.0 (2.0) Recoverability of intangible assets 0% (0%) Private equity funds 18,494 Reported market value Net asset value, as reported 100.0% (100.0%) Market adjustments -7.6% – 11.0% (-1.6%) Private equity – other 32,842 Discounted cash flow Effective yield 5.8% (5.8%) Funds held – directly managed Other invested assets 13,398 Reported market value Net asset value, as reported 100.0% (100.0%) Market adjustments -15.4% – 0% (-14.5%) 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) and certain derivatives. The Company has established a Valuation Committee which is responsible for determining the Company’s invested asset valuation procedures, reviewing significant changes in the fair value measurements of securities classified as Level 3 from period to period, and ensuring that there is an appropriate independent internal peer analysis 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 Group Enterprise Risk Management Financial Risk Policy which covers, amongst other items, invested asset valuation, is monitored by the Company’s Audit Committee of the BOD and approved annually by the Company’s Risk and Finance Committee of the BOD. Changes in the fair value of the Company’s financial instruments subject to the fair value option during the years ended December 31, 2015 , 2014 and 2013 were as follows (in thousands of U.S. dollars): 2015 2014 2013 Fixed maturities and short-term investments $ (276,776 ) $ 228,781 $ (525,787 ) Equities (187,561 ) 2,605 118,010 Other invested assets (1,835 ) (2,664 ) (6,970 ) Funds held – directly managed (6,323 ) 1,382 (27,850 ) Total $ (472,495 ) $ 230,104 $ (442,597 ) Substantially all of the above changes in fair value are included in the 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 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 securities, 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 generally uses one pricing source per security and 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, common stocks traded in inactive markets and certain preferred equities. 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, 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, t |
Investments
Investments | 12 Months Ended |
Dec. 31, 2015 | |
Investments [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | 4. Investments (a) Fixed Maturities, Short-Term Investments and Equities The cost, gross unrealized gains, gross unrealized losses and fair value of investments classified as trading securities at December 31, 2015 and 2014 were as follows (in thousands of U.S. dollars): December 31, 2015 Cost (1) Gross Unrealized Gains Gross Unrealized Losses Fair Value Fixed maturities U.S. government and government sponsored enterprises $ 2,887,000 $ 4,253 $ (18,408 ) $ 2,872,845 U.S. states, territories and municipalities 743,413 39,543 (4,630 ) 778,326 Non-U.S. sovereign government, supranational and government related 1,271,416 71,399 (9,890 ) 1,332,925 Corporate 5,035,006 138,678 (87,485 ) 5,086,199 Asset-backed securities 1,040,144 13,341 (15,669 ) 1,037,816 Residential mortgage-backed securities 2,287,173 41,154 (37,687 ) 2,290,640 Other mortgage-backed securities 49,667 1,025 (1,181 ) 49,511 Fixed maturities $ 13,313,819 $ 309,393 $ (174,950 ) $ 13,448,262 Short-term investments 46,689 33 (34 ) 46,688 Equities 418,428 71,328 (45,895 ) 443,861 Total $ 13,778,936 $ 380,754 $ (220,879 ) $ 13,938,811 December 31, 2014 Cost (1) Gross Unrealized Gains Gross Unrealized Losses Fair Value Fixed maturities U.S. government and government sponsored enterprises $ 2,308,264 $ 13,350 $ (6,192 ) $ 2,315,422 U.S. states, territories and municipalities 511,228 21,058 (1,683 ) 530,603 Non-U.S. sovereign government, supranational and government related 1,866,915 112,029 (2,742 ) 1,976,202 Corporate 5,363,006 263,349 (22,195 ) 5,604,160 Asset-backed securities 1,110,393 23,131 (2,104 ) 1,131,420 Residential mortgage-backed securities 2,276,200 56,875 (26,599 ) 2,306,476 Other mortgage-backed securities 53,627 1,487 (652 ) 54,462 Fixed maturities $ 13,489,633 $ 491,279 $ (62,167 ) $ 13,918,745 Short-term investments 25,699 4 (25 ) 25,678 Equities 843,429 240,667 (27,582 ) 1,056,514 Total $ 14,358,761 $ 731,950 $ (89,774 ) $ 15,000,937 (1) Cost is amortized cost for fixed maturities and short-term investments and cost for equity securities. (b) Maturity Distribution of Fixed Maturities and Short-Term Investments The distribution of fixed maturities and short-term investments at December 31, 2015 , by contractual maturity date, is shown below (in thousands of U.S. dollars). Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations with or without call or prepayment penalties. Amortized Cost Fair Value One year or less $ 556,422 $ 555,956 More than one year through five years 4,552,338 4,608,744 More than five years through ten years 3,336,663 3,341,696 More than ten years 1,538,101 1,610,587 Subtotal $ 9,983,524 $ 10,116,983 Mortgage/asset-backed securities 3,376,984 3,377,967 Total $ 13,360,508 $ 13,494,950 (c) Net Realized and Unrealized Investment (Losses) Gains The components of the net realized and unrealized investment (losses) gains for the years ended December 31, 2015 , 2014 and 2013 were as follows (in thousands of U.S. dollars): 2015 2014 2013 Net realized investment gains on fixed maturities and short-term investments $ 66,296 $ 120,734 $ 118,575 Net realized investment gains on equities 137,609 98,733 75,217 Net realized investment (losses) gains on other invested assets (33,317 ) (20,686 ) 20,497 Change in net unrealized investment gains (losses) on other invested assets 844 (58,180 ) 56,652 Change in net unrealized investment (losses) gains on fixed maturities and short-term investments (276,776 ) 228,781 (525,787 ) Change in net unrealized investment (losses) gains on equities (187,561 ) 2,605 118,010 Net other realized and unrealized investment gains (losses) 1,053 (3,624 ) (2,107 ) Net realized and unrealized investment (losses) gains on funds held – directly managed (5,627 ) 3,433 (21,792 ) Total net realized and unrealized investment (losses) gains $ (297,479 ) $ 371,796 $ (160,735 ) (d) Net Investment Income The components of net investment income for the years ended December 31, 2015 , 2014 and 2013 were as follows (in thousands of U.S. dollars): 2015 2014 2013 Fixed maturities $ 425,541 $ 443,414 $ 446,299 Short-term investments and cash and cash equivalents 854 868 1,886 Equities 30,739 40,326 32,989 Funds held and other 27,406 33,192 34,215 Funds held – directly managed 11,676 13,841 20,502 Investment expenses (46,432 ) (51,945 ) (51,524 ) Net investment income $ 449,784 $ 479,696 $ 484,367 Other than the funds held – directly managed account, the Company generally earns investment income on funds held by reinsured companies based upon a predetermined interest rate, either fixed contractually at the inception of the contract or based upon a recognized index (e.g., LIBOR). Interest rates ranged from 0.1% to 8.0% for the year ended December 31, 2015 , from 2.1% to 5.4% for the year ended December 31, 2014 and from 1.8% to 4.3% for the year ended December 31, 2013 . See Note 5 for additional information on the funds held – directly managed account. (e) Pledged and Restricted Assets At December 31, 2015 and 2014 , approximately $164.8 million and $172.3 million , respectively, of cash and cash equivalents and approximately $2,168.3 million and $2,455.6 million , respectively, of securities were deposited, pledged or held in escrow accounts in favor of ceding companies and other counterparties or government authorities to comply with reinsurance contract provisions and insurance laws. (f) Net Payable for Securities Purchased Included within Accounts payable, accrued expenses and other in the Consolidated Balance Sheets at December 31, 2015 and 2014 were amounts of gross receivable balances for securities sold and gross payable balances for securities purchased as follows (in thousands of U.S. dollars): 2015 2014 Receivable for securities sold $ 34,497 $ 51,586 Payable for securities purchased (219,707 ) (63,779 ) Net payable for securities purchased $ (185,210 ) $ (12,193 ) |
Funds Held - Directly Managed
Funds Held - Directly Managed | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure - Funds Held-Directly Managed [Abstract] | |
Funds Held - Directly Managed | 5. Funds Held – Directly Managed Following Paris Re’s acquisition of substantially all of the reinsurance operations of Colisée Re (previously known as AXA RE), a subsidiary of AXA SA (AXA), in 2006, Paris Re and its subsidiaries entered into an issuance agreement and a quota share retrocession agreement to assume business written by Colisée Re from January 1, 2006 to September 30, 2007 as well as the in-force business at December 31, 2005. The agreements provided that the premium related to the transferred business was retained by Colisée Re and credited to a funds held account. The decrease from $473 million at December 31, 2014 to $400 million at December 31, 2015 in the fair value of the investment portfolio underlying the funds held – directly managed account was primarily related to the run-off of the underlying loss reserves associated with this account and, to a lesser extent, the impact of the strengthening of the U.S. dollar against most major currencies. The assets underlying the funds held – directly managed account are maintained by Colisée Re in a segregated investment portfolio and managed by the Company. The segregated investment portfolio underlying the funds held – directly managed account is carried at fair value. Realized and unrealized investment gains and losses and net investment income related to the underlying investment portfolio in the funds held – directly managed account inure to the benefit of the Company. (a) Fixed Maturities, Short-Term Investments, Other Invested Assets and Other Assets and Liabilities The cost, gross unrealized gains, gross unrealized losses and fair value of investments underlying the funds held – directly managed account at December 31, 2015 and 2014 were as follows (in thousands of U.S. dollars): December 31, 2015 Cost (1) Gross Unrealized Gains Gross Unrealized Losses Fair Value Fixed maturities U.S. government and government sponsored enterprises $ 168,197 $ 2,209 $ (455 ) $ 169,951 Non-U.S. sovereign government, supranational and government related 112,724 6,827 (64 ) 119,487 Corporate 94,725 4,624 — 99,349 Fixed maturities $ 375,646 $ 13,660 $ (519 ) $ 388,787 Short-term investments 966 — — 966 Other invested assets 21,231 — (11,059 ) 10,172 Total $ 397,843 $ 13,660 $ (11,578 ) $ 399,925 December 31, 2014 Cost (1) Gross Unrealized Gains Gross Unrealized Losses Fair Value Fixed maturities U.S. government and government sponsored enterprises $ 150,242 $ 3,302 $ (61 ) $ 153,483 U.S. states, territories and municipalities 214 — (82 ) 132 Non-U.S. sovereign government, supranational and government related 119,732 8,536 (35 ) 128,233 Corporate 168,697 8,650 — 177,347 Fixed maturities $ 438,885 $ 20,488 $ (178 ) $ 459,195 Other invested assets 25,388 — (11,837 ) 13,551 Total $ 464,273 $ 20,488 $ (12,015 ) $ 472,746 (1) Cost is amortized cost for fixed maturities and short-term investments. In addition to the investments underlying the funds held – directly managed account in the above table at December 31, 2015 and 2014 , were cash and cash equivalents of $64.6 million and $42.3 million , respectively, other assets and liabilities of $70.7 million and $88.2 million , respectively, and accrued investment income of $4.5 million and $5.7 million , respectively. The other assets and liabilities represent working capital assets held by Colisée Re related to the underlying business. (b) Maturity Distribution of Fixed Maturities The distribution of fixed maturities underlying the funds held – directly managed account at December 31, 2015 , by contractual maturity date, is shown below (in thousands of U.S. dollars). Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations with or without call or prepayment penalties. Amortized Cost Fair Value One year or less $ 72,450 $ 73,144 More than one year through five years 187,504 195,500 More than five years through ten years 96,533 100,700 More than ten years 20,125 20,409 Total $ 376,612 $ 389,753 (c) Net Realized and Unrealized Investment (Losses) Gains The components of the net realized and unrealized investment (losses) gains on the funds held – directly managed account for the years ended December 31, 2015 , 2014 and 2013 were as follows (in thousands of U.S. dollars): 2015 2014 2013 Net realized investment gains on fixed maturities and short-term investments $ 64 $ 1,959 $ 6,021 Net realized investment gains on other invested assets 472 53 19 Change in net unrealized investment (losses) gains on fixed maturities and short-term investments (5,774 ) 1,938 (24,176 ) Change in net unrealized investment losses on other invested assets (389 ) (517 ) (3,656 ) Net realized and unrealized investment (losses) gains on funds held – directly managed $ (5,627 ) $ 3,433 $ (21,792 ) (d) Net Investment Income The components of net investment income underlying the funds held – directly managed account for the years ended December 31, 2015 , 2014 and 2013 were as follows (in thousands of U.S. dollars): 2015 2014 2013 Fixed maturities $ 10,528 $ 12,789 $ 18,804 Short-term investments and cash and cash equivalents 81 59 1,246 Other 1,776 1,760 1,287 Investment expenses (709 ) (767 ) (835 ) Net investment income on funds held – directly managed $ 11,676 $ 13,841 $ 20,502 |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 6. Derivatives The Company’s derivative instruments are recorded in the 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 Consolidated Statements of Operations or accumulated other comprehensive income or loss in the 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. 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 Consolidated Balance Sheets at December 31, 2015 and 2014 were as follows (in thousands of U.S. dollars): Asset derivatives at fair value Liability derivatives at fair value Net derivatives December 31, 2015 Net notional exposure Fair value Derivatives designated as hedges Foreign exchange forward contracts (net investment hedge) $ — $ (9,305 ) $ 392,523 $ (9,305 ) Total derivatives designated as hedges $ — $ (9,305 ) $ (9,305 ) Derivatives not designated as hedges Foreign exchange forward contracts $ 15,311 $ (5,804 ) $ 1,708,285 $ 9,507 Foreign currency option contracts — — 82,148 — Futures contracts 5,675 (140 ) 3,610,658 5,535 Insurance-linked securities (1) 9,428 (3,944 ) 140,320 5,484 Total return swaps 2,745 (2,878 ) 42,438 (133 ) Interest rate swaps (2) — (24,383 ) 196,804 (24,383 ) TBAs — (1,462 ) 447,315 (1,462 ) Total derivatives not designated as hedges $ 33,159 $ (38,611 ) $ (5,452 ) Total derivatives $ 33,159 $ (47,916 ) $ (14,757 ) Asset derivatives at fair value Liability derivatives at fair value Net derivatives December 31, 2014 Net notional exposure Fair value Derivatives not designated as hedges Foreign exchange forward contracts $ 20,033 $ (7,446 ) $ 2,080,276 $ 12,587 Foreign currency option contracts — (1,196 ) 43,380 (1,196 ) Futures contracts 846 (467 ) 2,348,735 379 Insurance-linked securities (1) 3 (339 ) 145,481 (336 ) Total return swaps 485 (2,007 ) 42,524 (1,522 ) Interest rate swaps (2) — (16,282 ) 201,160 (16,282 ) TBAs 154 (240 ) 235,105 (86 ) Total derivatives $ 21,521 $ (27,977 ) $ (6,456 ) (1) At December 31, 2015 and 2014 , 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 December 31, 2015 and 2014 is recorded in Other invested assets in the Company’s Consolidated Balance Sheets. At December 31, 2015 , the Company held foreign exchange forward contracts with notional amounts of €350 million , to hedge a portion of its net investment exposure to the euro against the U.S. dollar. The effective portion of the net investment hedging derivatives recognized in Accumulated other comprehensive loss at December 31, 2015 was $9.3 million . There were no derivatives designated as hedges at December 31, 2014 . The gains and losses in the Consolidated Statements of Operations for derivatives not designated as hedges for the years ended December 31, 2015 , 2014 and 2013 were as follows (in thousands of U.S. dollars): 2015 2014 2013 Foreign exchange forward contracts $ (29,217 ) $ 39,399 $ (59,019 ) Foreign currency option contracts (3,472 ) (810 ) (5,164 ) Total included in net foreign exchange gains and losses $ (32,689 ) $ 38,589 $ (64,183 ) Futures contracts $ (32,004 ) $ (72,146 ) $ 78,841 Insurance-linked securities (1,556 ) 230 (707 ) Total return swaps 1,390 (1,002 ) (6,597 ) Interest rate swaps (8,101 ) (15,871 ) 7,469 TBAs 2,877 13,166 (8,808 ) Other 2,493 (3 ) (11 ) Total included in net realized and unrealized investment gains and losses $ (34,901 ) $ (75,626 ) $ 70,187 Total derivatives not designated as hedges $ (67,590 ) $ (37,037 ) $ 6,004 Offsetting of Derivatives The gross and net fair values of derivatives that are subject to offsetting in the Consolidated Balance Sheets at December 31, 2015 and 2014 were as follows (in thousands of U.S. dollars): Gross amounts offset in the balance sheet Net amounts of assets/liabilities presented in the balance sheet Gross amounts not offset in the balance sheet December 31, 2015 Gross amounts recognized (1) Financial instruments Cash collateral received/pledged Net amount Total derivative assets $ 33,159 $ — $ 33,159 $ (1,037 ) $ (10,222 ) $ 21,900 Total derivative liabilities $ (47,916 ) $ — $ (47,916 ) $ 1,037 $ 25,904 $ (20,975 ) December 31, 2014 Total derivative assets $ 21,521 $ — $ 21,521 $ (766 ) $ (8,536 ) $ 12,219 Total derivative liabilities $ (27,977 ) $ — $ (27,977 ) $ 766 $ 14,858 $ (12,353 ) (1) Amounts include all derivative instruments, irrespective of whether there is a legally enforceable master netting arrangement in place. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Intangible Assets | 7. Goodwill and Intangible Assets The Company’s goodwill related to the acquisitions of PartnerRe SA, Winterthur Re, Paris Re and PartnerRe Health and intangible assets related to the acquisitions of Paris Re and PartnerRe Health at December 31, 2015 and 2014 were as follows (in thousands of U.S. dollars): 2015 Goodwill Definite- lived intangible assets Indefinite- lived intangible asset Total intangible assets Balance at January 1 $ 456,380 $ 152,254 $ 7,350 $ 159,604 Intangible assets amortization n/a (26,593 ) n/a (26,593 ) Balance at December 31 $ 456,380 $ 125,661 $ 7,350 $ 133,011 2014 Goodwill Definite- lived intangible assets Indefinite- lived intangible asset Total intangible assets Balance at January 1 $ 456,380 $ 179,740 $ 7,350 $ 187,090 Intangible assets amortization n/a (27,486 ) n/a (27,486 ) Balance at December 31 $ 456,380 $ 152,254 $ 7,350 $ 159,604 n/a: Not applicable Definite-lived intangible assets are amortized over a period of either eleven or thirteen years. The gross carrying value and accumulated amortization of intangible assets by type that are yet to be fully amortized at December 31, 2015 and 2014 is as follows (in thousands of U.S. dollars): December 31, 2015 December 31, 2014 Gross carrying value Accumulated amortization Gross carrying value Accumulated amortization Definite-lived intangible assets: Unpaid losses and loss expenses $ 191,196 $ 145,808 $ 191,196 $ 131,908 Renewal rights 48,163 18,226 48,163 12,273 Customer relationships 63,408 13,072 63,408 6,332 Total definite-lived intangible assets $ 302,767 $ 177,106 $ 302,767 $ 150,513 Indefinite-lived intangible asset: U.S. insurance licenses 7,350 n/a 7,350 n/a Total intangible assets $ 310,117 $ 177,106 $ 310,117 $ 150,513 n/a: Not applicable The allocation of the goodwill to the Company’s segments and sub-segments at December 31, 2015 and 2014 was as follows (in thousands of U.S. dollars): Amount Non-life segment: North America $ 82,026 Global (Non-U.S.) P&C 149,895 Global Specialty 179,641 Catastrophe 26,014 Life and Health segment 18,804 Total goodwill $ 456,380 The estimated amortization expense for each of the five succeeding fiscal years related to the Company’s definite-lived intangible assets is as follows (in thousands of U.S. dollars): Year Amount 2016 $ 25,919 2017 22,818 2018 21,247 2019 18,153 2020 10,823 Total $ 98,960 |
Unpaid Losses and Loss Expenses
Unpaid Losses and Loss Expenses and Policy Benefits for Life and Annuity Contracts | 12 Months Ended |
Dec. 31, 2015 | |
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] | |
Liability for Future Policy Benefits and Unpaid Claims Disclosure [Text Block] | 8. Unpaid Losses and Loss Expenses and Policy Benefits for Life and Annuity Contracts (a) Unpaid Losses and Loss Expenses Unpaid losses and loss expenses are categorized into three types of reserves: case reserves, ACRs and IBNR reserves. Case reserves represent unpaid losses reported by the Company’s cedants and recorded by the Company. ACRs are established for particular circumstances where, on the basis of individual loss reports, the Company estimates that the particular loss or collection of losses covered by a treaty may be greater than those advised by the cedant. IBNR reserves represent a provision for claims that have been incurred but not yet reported to the Company, as well as future loss development on losses already reported, in excess of the case reserves and ACRs. The Company’s gross liability for unpaid losses and loss expenses reported by cedants (case reserves) and those estimated by the Company (ACRs and IBNR reserves) at December 31, 2015 and 2014 was as follows (in thousands of U.S. dollars): 2015 2014 Case reserves $ 3,716,195 $ 4,236,038 ACRs 190,183 253,890 IBNR reserves 5,158,333 5,255,878 Total unpaid losses and loss expenses $ 9,064,711 $ 9,745,806 The reconciliation of the beginning and ending gross and net liability for unpaid losses and loss expenses, excluding policy benefits for life and annuity contracts, for the years ended December 31, 2015 , 2014 and 2013 was as follows (in thousands of U.S. dollars): 2015 2014 2013 Gross liability at beginning of year $ 9,745,806 $ 10,646,318 $ 10,709,371 Reinsurance recoverable at beginning of year 214,349 267,384 291,330 Net liability at beginning of year 9,531,457 10,378,934 10,418,041 Net incurred losses related to: Current year 3,023,704 3,122,981 3,118,755 Prior years (830,705 ) (660,413 ) (721,499 ) 2,192,999 2,462,568 2,397,256 Change in Paris Re Reserve Agreement (8,771 ) (25,412 ) (49,544 ) Net paid losses related to: Current year 250,720 267,806 242,053 Prior years 2,171,883 2,530,743 2,159,506 2,422,603 2,798,549 2,401,559 Effects of foreign exchange rate changes (417,605 ) (486,084 ) 14,740 Net liability at end of year 8,875,477 9,531,457 10,378,934 Reinsurance recoverable at end of year 189,234 214,349 267,384 Gross liability at end of year $ 9,064,711 $ 9,745,806 $ 10,646,318 The reconciliation of losses and loss expenses including life policy benefits for the years ended December 31, 2015 , 2014 and 2013 was as follows (in thousands of U.S. dollars): 2015 2014 2013 Net incurred losses related to: Non-life $ 2,192,999 $ 2,462,568 $ 2,397,256 Life and Health 964,421 1,000,202 760,552 Losses and loss expenses and life policy benefits $ 3,157,420 $ 3,462,770 $ 3,157,808 The net favorable prior year loss development for each of the Company’s Non-life sub-segments for the years ended December 31, 2015 , 2014 and 2013 was as follows (in thousands of U.S. dollars): 2015 2014 2013 Net favorable prior year loss development: Non-life sub-segment North America $ 284,406 $ 250,942 $ 222,839 Global (Non-U.S.) P&C 96,438 134,394 180,052 Global Specialty 434,244 257,696 227,383 Catastrophe 15,617 17,381 91,225 Total net favorable prior year loss development $ 830,705 $ 660,413 $ 721,499 For the Company’s North America sub-segment, the Company reported net favorable loss development for prior accident years in 2015 , 2014 and 2013 . The net favorable loss development for prior accident years in 2015 , 2014 and 2013 was driven by most lines of business, predominantly the casualty line. The net favorable loss development in each year was primarily due to favorable loss emergence. For the Global (Non-U.S.) P&C sub-segment, the Company reported net favorable loss development for prior accident years in 2015 , 2014 and 2013 . The net favorable loss development for prior accident years in 2015 , 2014 and 2013 was driven by all lines of business, primarily the property line. The net favorable loss development in each year was primarily due to favorable loss emergence. For the Global Specialty sub-segment, the Company reported net favorable loss development for prior accident years in 2015 , 2014 and 2013 . The net favorable loss development for prior accident years in 2015 was driven by all lines of business, primarily the marine, aviation/space, specialty casualty, energy and credit/surety lines. The net favorable loss development for prior accident years in 2014 was driven by most lines of business, predominantly the marine, specialty property and aviation/space lines, while the credit/surety and engineering lines experienced adverse loss development. The net favorable loss development for prior accident years in 2013 was driven by all lines of business, predominantly the aviation/space, marine and specialty property lines. The net favorable loss development in each year was primarily due to favorable loss emergence. For the Catastrophe sub-segment, the Company reported net favorable loss development for prior accident years in 2015 , 2014 and 2013 . The net favorable loss development in 2015, 2014 and 2013 was primarily due to favorable loss emergence, and for 2015 and 2014, partially offset by adverse development related to the earthquakes that occurred in New Zealand in 2010 and 2011 (see Note 8(c)). (b) Paris Re Reserve Agreement Following Paris Re’s acquisition of substantially all of the reinsurance operations of Colisée Re in 2006, Paris Re’s French operating subsidiary (Paris Re France) entered into a reserve agreement (Reserve Agreement), which provides that AXA and Colisée Re shall guarantee reserves in respect of Paris Re France and subsidiaries acquired in the acquisition. The Reserve Agreement relates to losses incurred prior to December 31, 2005. Accordingly, the Company’s Consolidated Statements of Operations do not include any favorable or adverse development related to these guaranteed reserves. The reserve guarantee provided by AXA and Colisée Re is conditioned upon, among other things, the guaranteed business, including all related ceded reinsurance, being managed by AXA Liabilities Managers, an affiliate of Colisée Re. Favorable or adverse development related to the guaranteed reserves is recorded as a change in unpaid losses and loss expenses in the Consolidated Balance Sheets and as a change in the Reserve Agreement payable or receivable balance to/from Colisée Re, which is included within the Funds held – directly managed account in the Consolidated Balance Sheets at December 31, 2015 and 2014 , respectively. Accordingly, the reconciliation of the beginning and ending gross and net liability for unpaid losses and loss expenses for the years ended December 31, 2015 , 2014 and 2013 includes the change in the Reserve Agreement. At December 31, 2015 and 2014 , the Company’s net liability for unpaid losses and loss expenses includes $514 million and $575 million , respectively, of guaranteed reserves, with the decrease from December 31, 2014 to December 31, 2015 being primarily related to the run-off of the underlying loss reserves associated with this account and, to a lesser extent, the impact of the strengthening of the U.S. dollar against most major currencies. (c) Claims Related to Catastrophic Events A significant amount of judgment was used to estimate the range of potential losses related to the earthquakes that occurred in New Zealand in 2010 and 2011 (New Zealand Earthquakes), and there remains a considerable degree of uncertainty related to the range of possible ultimate losses associated with these events. Loss estimates arising from earthquakes are inherently more uncertain than those from other catastrophic events and the Company believes the ultimate losses arising from the New Zealand Earthquakes may be materially in excess of, or less than, the amounts provided for in the Consolidated Balance Sheet at December 31, 2015 . The remaining significant risks and uncertainties related to the New Zealand Earthquakes include the ongoing cedant revisions of loss estimates for each of these events, the degree to which inflation impacts construction materials required to rebuild affected properties, the characteristics of the Company’s program participation for certain affected cedants and potentially affected cedants, and the expected length of the claims settlement period. In addition, there is further complexity related to the New Zealand Earthquakes given multiple earthquakes occurred in the same region in a relatively short period of time, resulting in cedants continuing to revise their allocation of losses between the various events and between different treaties, under which the Company may provide different amounts of coverage. (d) Asbestos and Environmental Claims The Company’s net reserves for unpaid losses and loss expenses at December 31, 2015 and 2014 included $181 million and $189 million , respectively, that represent estimates of its net ultimate liability for asbestos and environmental claims. The gross liability for such claims at December 31, 2015 and 2014 was $191 million and $201 million , respectively, which primarily relate to Paris Re’s gross liability for asbestos and environmental claims for accident years 2005 and prior of $121 million and $127 million , respectively, with any favorable or adverse development being subject to the Reserve Agreement. Of the remaining $70 million and $74 million in gross reserves at December 31, 2015 and 2014 , respectively, the majority relates to casualty exposures in the United States arising from business written by the French branch of PartnerRe Europe and PartnerRe U.S. Ultimate loss estimates for such claims cannot be estimated using traditional reserving techniques and there are significant uncertainties in estimating the amount of the Company’s potential losses for these claims. In view of the legal and tort environment that affect the development of such claims, the uncertainties inherent in estimating asbestos and environmental claims are not likely to be resolved in the near future. There can be no assurance that the reserves established by the Company will not be adversely affected by development of other latent exposures, and further, there can be no assurance that the reserves established by the Company will be adequate. The Company does, however, actively evaluate potential exposure to asbestos and environmental claims and establishes additional reserves as appropriate. The Company believes that it has made a reasonable provision for these exposures and is unaware of any specific issues that would materially affect its unpaid losses and loss expense reserves related to this exposure. (e) Policy Benefits for Life and Annuity Contracts The Life and Health segment reported net favorable loss development for prior accident years of $47 million , $19 million and $39 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. The net favorable prior year loss development of $47 million in 2015 was primarily related to the PartnerRe Health business, the short-term mortality business and the guaranteed minimum death benefit (GMDB) business. The net favorable prior year loss development of $19 million in 2014 was primarily related to the GMDB business, PartnerRe Health and certain short-term treaties in the mortality line of business. The net favorable prior year loss development of $39 million in 2013 was primarily related to the GMDB business and, to a lesser extent, certain short-term treaties in the mortality line of business. The Company used interest rate assumptions to estimate its liabilities for policy benefits for life and annuity contracts which ranged from 0% to 6.8% at December 31, 2015 and 2014 , respectively. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2015 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance [Text Block] | 9. Reinsurance (a) Reinsurance Recoverable on Paid and Unpaid Losses The Company uses retrocessional agreements to reduce its exposure to risk of loss on reinsurance assumed. These agreements provide for recovery from retrocessionaires of a portion of losses and loss expenses. The Company remains liable to its cedants to the extent that the retrocessionaires do not meet their obligations under these agreements, and therefore the Company evaluates the financial condition of its reinsurers and monitors concentration of credit risk on an ongoing basis. The Company actively manages its reinsurance exposures by generally selecting retrocessionaires having a credit rating of A- or higher. In certain cases where an otherwise suitable retrocessionaire has a credit rating lower than A-, the Company generally requires the posting of collateral, including escrow funds and letters of credit, as a condition to its entering into a retrocession agreement. The Company regularly reviews its reinsurance recoverable balances to estimate an allowance for uncollectible amounts based on quantitative and qualitative factors. The allowance for uncollectible reinsurance recoverable was $9 million and $13 million at December 31, 2015 and 2014 , respectively. (b) Ceded Reinsurance Net premiums written, net premiums earned and losses and loss expenses and life policy benefits are reported net of reinsurance in the Company’s Consolidated Statements of Operations. Assumed, ceded and net amounts for the years ended December 31, 2015 , 2014 and 2013 were as follows (in thousands of U.S. dollars): Premiums Written Premiums Earned Losses and Loss Expenses and Life Policy Benefits 2015 Assumed $ 5,547,525 $ 5,570,321 $ 3,215,665 Ceded 317,977 301,143 58,245 Net $ 5,229,548 $ 5,269,178 $ 3,157,420 2014 Assumed $ 5,932,003 $ 5,824,398 $ 3,503,060 Ceded 212,119 215,203 40,290 Net $ 5,719,884 $ 5,609,195 $ 3,462,770 2013 Assumed $ 5,569,706 $ 5,373,866 $ 3,207,860 Ceded 173,180 175,656 50,052 Net $ 5,396,526 $ 5,198,210 $ 3,157,808 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long-term Debt [Text Block] | 10. Debt Senior Notes In March 2010, PartnerRe Finance B LLC (PartnerRe Finance B), an indirect 100% owned subsidiary of the parent company, issued $500 million aggregate principal amount of 5.500% Senior Notes (2010 Senior Notes). The 2010 Senior Notes will mature on June 1, 2020 and may be redeemed at the option of the issuer, in whole or in part, at any time. Interest on the 2010 Senior Notes is payable semi-annually and commenced on June 1, 2010 at an annual fixed rate of 5.500% , and cannot be deferred. The 2010 Senior Notes are ranked as senior unsecured obligations of PartnerRe Finance B. The parent company has fully and unconditionally guaranteed all obligations of PartnerRe Finance B under the 2010 Senior Notes. The parent company’s obligations under this guarantee are senior and unsecured and rank equally with all other senior unsecured indebtedness of the parent company. Contemporaneously, PartnerRe U.S. Holdings, a wholly-owned subsidiary of the parent company, issued a 5.500% promissory note, with a principal amount of $500 million to PartnerRe Finance B. Under the terms of the promissory note, PartnerRe U.S. Holdings promises to pay to PartnerRe Finance B the principal amount on June 1, 2020 , unless previously paid. Interest on the promissory note commenced on June 1, 2010 and is payable semi-annually at an annual fixed rate of 5.500% , and cannot be deferred. For each of the years ended December 31, 2015 , 2014 and 2013 , the Company incurred interest expense and paid interest of $27.5 million in relation to the 2010 Senior Notes issued by PartnerRe Finance B. In May 2008, PartnerRe Finance A LLC (PartnerRe Finance A), an indirect 100% owned subsidiary of the parent company, issued $250 million aggregate principal amount of 6.875% Senior Notes (2008 Senior Notes). The 2008 Senior Notes will mature on June 1, 2018 and may be redeemed at the option of the issuer, in whole or in part, at any time. Interest on the 2008 Senior Notes is payable semi-annually and commenced on December 1, 2008 at an annual fixed rate of 6.875% , and cannot be deferred. The 2008 Senior Notes are ranked as senior unsecured obligations of PartnerRe Finance A. The parent company has fully and unconditionally guaranteed all obligations of PartnerRe Finance A under the 2008 Senior Notes. The parent company’s obligations under this guarantee are senior and unsecured and rank equally with all other senior unsecured indebtedness of the parent company. Contemporaneously, PartnerRe U.S. Holdings issued a 6.875% promissory note, with a principal amount of $250 million to PartnerRe Finance A. Under the terms of the promissory note, PartnerRe U.S. Holdings promises to pay to PartnerRe Finance A the principal amount on June 1, 2018 , unless previously paid. Interest on the promissory note is payable semi-annually and commenced on December 1, 2008 at an annual fixed rate of 6.875% , and cannot be deferred. For each of the years ended December 31, 2015 , 2014 and 2013 , the Company incurred interest expense and paid interest of $17.2 million in relation to the 2008 Senior Notes issued by PartnerRe Finance A. Capital Efficient Notes (CENts) In November 2006, PartnerRe Finance II Inc. (PartnerRe Finance II), an indirect 100% owned subsidiary of the parent company, issued $250 million aggregate principal amount of 6.440% Fixed-to-Floating Rate Junior Subordinated CENts. The CENts will mature on December 1, 2066 and may be redeemed at the option of the issuer, in whole or in part, after December 1, 2016 or earlier upon occurrence of specific rating agency or tax events. Interest on the CENts is payable semi-annually and commenced on June 1, 2007 through to December 1, 2016 at an annual fixed rate of 6.440% and will be payable quarterly thereafter until maturity at an annual rate of 3-month LIBOR plus a margin equal to 2.325% . PartnerRe Finance II may elect to defer one or more interest payments for up to ten years, although interest will continue to accrue and compound at the rate of interest applicable to the CENts. The CENts are ranked as junior subordinated unsecured obligations of PartnerRe Finance II. The parent company has fully and unconditionally guaranteed on a subordinated basis all obligations of PartnerRe Finance II under the CENts. The parent company’s obligations under this guarantee are unsecured and rank junior in priority of payments to the parent company’s Senior Notes. Contemporaneously, PartnerRe U.S. Holdings issued a 6.440% Fixed-to-Floating Rate promissory note, with a principal amount of $257.6 million to PartnerRe Finance II. Under the terms of the promissory note, PartnerRe U.S. Holdings promises to pay to PartnerRe Finance II the principal amount on December 1, 2066 , unless previously paid. Interest on the promissory note is payable semi-annually and commenced on June 1, 2007 through to December 1, 2016 at an annual fixed rate of 6.440% and will be payable quarterly thereafter until maturity at an annual rate of 3-month LIBOR plus a margin equal to 2.325% . On March 13, 2009, PartnerRe Finance II, under the terms of a tender offer, paid holders $500 per $1,000 principal amount of CENts tendered, and purchased approximately 75% of the issue, or $186.6 million , for $93.3 million . Contemporaneously, under the terms of a cross receipt agreement, PartnerRe U.S. Holdings paid PartnerRe Finance II consideration of $93.3 million for the extinguishment of $186.6 million of the principal amount of PartnerRe U.S. Holdings’ 6.440% Fixed-to-Floating Rate promissory note due December 1, 2066. All other terms and conditions of the remaining CENts and promissory note remain unchanged. A pre-tax gain of $88.4 million , net of deferred issuance costs and fees, was realized on the foregoing transactions during the year ended December 31, 2009. At December 31, 2015 and 2014 , the aggregate principal amount of the CENts and promissory note outstanding was $63.4 million and $71.0 million , respectively. For each of the years ended December 31, 2015 , 2014 and 2013 , the Company incurred interest expense and paid interest of $4.6 million in relation to the CENts. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | 11. Shareholders’ Equity Authorized Shares At December 31, 2015 and 2014 , the total authorized shares of the Company were 200 million shares, par value $1.00 per share, as follows (in millions of shares): Shares Designated common shares 100.0 Designated 6.5% Series D cumulative redeemable preferred shares 9.2 Designated 7.25% Series E cumulative redeemable preferred shares 17.0 Designated 5.875% Series F non-cumulative redeemable preferred shares 14.0 Designated and redeemed preference shares 26.0 Undesignated 33.8 200.0 Common Shares Share repurchases During 2015 , the Company repurchased, under its authorized share repurchase program, 0.5 million of its common shares at a total cost of $59.3 million , representing an average cost of $112.89 per share. At December 31, 2015 , the Company had approximately 2.9 million common shares remaining under its current share repurchase authorization and approximately 39.3 million common shares were held in treasury and are available for reissuance. During 2015 , the Company reissued approximately 0.6 million of its common shares under its employee share-based awards program at a total cost of $51.6 million , representing an average cost of $82.88 per share. Following the announcement of the Amalgamation Agreement on January 25, 2015, the Company suspended its repurchase activities and the share repurchase program remains suspended under the terms of the Merger Agreement with EXOR. During 2014 , the Company repurchased, under its authorized share repurchase program, 5.2 million of its common shares at a total cost of $551.4 million , representing an average cost of $106.30 per share. During 2013 , the Company repurchased, under its authorized share repurchase program, 7.7 million of its common shares at a total cost of $695.3 million , representing an average cost of $90.73 per share. Redeemable Preferred Shares During the years ended December 31, 2015 , 2014 and 2013 , the Company had Series C, Series D and Series E cumulative redeemable preferred shares and Series F non-cumulative redeemable preferred shares outstanding as follows (in millions of U.S. dollars or shares, except percentage amounts): Series C Series D Series E Series F Date of issuance May 2003 November 2004 June 2011 February 2013 Number of preferred shares issued 11.6 9.2 15.0 10.0 Annual dividend rate 6.75 % 6.5 % 7.25 % 5.875 % Total consideration $ 280.9 $ 222.3 $ 361.7 $ 242.3 Underwriting discounts and commissions $ 9.1 $ 7.7 $ 12.1 $ 7.7 Aggregate liquidation value $ 290.0 $ 230.0 $ 373.8 $ 250.0 Date of redemption March 2013 n/a n/a n/a n/a: Not applicable On February 14, 2013, the Company issued the Series F preferred shares. The net proceeds received on issuance of the Series F preferred shares were used, together with available cash, to redeem the Series C preferred shares. On March 18, 2013, the Company redeemed the Series C preferred shares for the aggregate liquidation value of $290 million plus accrued and unpaid dividends. In connection with the redemption, the Company recognized a loss of $9.1 million related to the original issuance costs of the Series C preferred shares and calculated as a difference between the redemption price and the consideration received after underwriting discounts and commissions. The loss was recognized in determining the net income attributable to PartnerRe Ltd. common shareholders. The Company may redeem each of the Series D, E and F preferred shares at $25.00 per share plus accrued and unpaid dividends without interest as follows: (i) the Series D preferred shares can be redeemed at the Company’s option at any time or in part from time to time; (ii) the Series E preferred shares can be redeemed at the Company’s option on or after June 1, 2016 or at any time upon certain changes in tax law and (iii) the Series F preferred shares can be redeemed at the Company’s option at any time or in part from time to time on or after March 1, 2018. The Company may also redeem the Series F preferred shares at any time upon the occurrence of a certain “capital disqualification event” or certain changes in tax law. Dividends on the Series F preferred shares are non-cumulative and are payable quarterly. Dividends on each of the Series D and E preferred shares are cumulative from the date of issuance and are payable quarterly in arrears. Dividends on Series F preferred shares are non-cumulative and are payable quarterly. In the event of liquidation of the Company, each of the Series D, E and F preferred shares rank on parity with each of the other series of preferred shares and would rank senior to the common shares. The holders of the Series D and E preferred shares would receive a distribution of $25.00 per share, or the aggregate liquidation value, plus accrued but unpaid dividends, if any. The holders of the Series F would receive a distribution of $25.00 per share, or the aggregate liquidation value, plus declared and unpaid dividends, if any. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | 12. Net Income per Share The reconciliation of basic and diluted net income per share and dividends declared per common share for the years ended December 31, 2015 , 2014 and 2013 is as follows (in thousands of U.S. dollars, except share and per share data): 2015 2014 2013 Numerator: Net income attributable to PartnerRe Ltd. $ 104,381 $ 1,054,974 $ 664,008 Less: preferred dividends 56,735 56,735 57,861 Less: loss on redemption of preferred shares — — 9,135 Net income attributable to PartnerRe Ltd. common shareholders $ 47,646 $ 998,239 $ 597,012 Denominator: Weighted number of common shares outstanding – basic 47,771,673 50,019,480 55,378,980 Share options and other (1) 1,168,197 1,154,745 1,069,125 Weighted average number of common shares and common share equivalents outstanding – diluted 48,939,870 51,174,225 56,448,105 Basic net income per share $ 1.00 $ 19.96 $ 10.78 Diluted net income per share (1) $ 0.97 $ 19.51 $ 10.58 Dividends declared per common share $ 2.80 $ 2.68 $ 2.56 Anti-dilutive common shares excluded from weighted average number of common shares and common share equivalents outstanding - diluted (1) 49,411 127,329 14,784 (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 | 12 Months Ended |
Dec. 31, 2015 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest Disclosure [Text Block] | 13. Noncontrolling Interests In March 2013, the Company formed, with other third party investors, Lorenz Re Ltd. (Lorenz Re), a Bermuda domiciled special purpose insurer. Lorenz Re is a segregated accounts company under the laws of Bermuda and distinct segregated accounts are formed and capitalized within Lorenz Re in order to enter into reinsurance agreements with the Company on a fully collateralized basis. In 2013, Lorenz Re issued non-voting redeemable preferred share capital on behalf of two segregated accounts (2013 segregated accounts) to provide additional capacity to the Company for a diversified catastrophe portfolio over a multi-year period on a fully collateralized reinsurance basis. The Company determined that it was the primary beneficiary of the 2013 segregated accounts given it had a controlling financial interest and, accordingly, the 2013 segregated accounts were consolidated by the Company. In April 2015, following the expiration of the multi-year period, a portion of the preferred shares was redeemed. Commutation of the portfolio in the 2013 segregated accounts back to the Company and redemption of the remainder of the preferred shares is expected to occur on or before June 1, 2016. During the three months ended June 30, 2015, Lorenz Re issued non-voting redeemable preferred share capital on behalf of newly formed segregated accounts (2015 segregated accounts) related to new reinsurance agreements for a diversified catastrophe portfolio and an agriculture portfolio with the Company on a fully collateralized basis. The Company has determined that it is not the primary beneficiary of the 2015 segregated accounts as it does not have a controlling financial interest and, accordingly, the 2015 segregated accounts are not consolidated by the Company. At December 31, 2015 and 2014 , the assets of Lorenz Re, that are included in the Company's Consolidated Balance Sheets, were $42.2 million and $100.8 million , respectively, primarily consisting of investments and cash. At December 31, 2015 , the liabilities of Lorenz Re, that are included in the Company's Consolidated Balance Sheet, were $7.8 million , primarily consisting of other reinsurance balances payable and unpaid losses and loss expenses. At December 31, 2014 , such liabilities were $13.1 million , primarily consisting of unearned premiums, unpaid losses and loss expenses and other reinsurance balances payable. These balances relate to the 2013 segregated accounts that the Company continues to consolidate. The assets of each segregated account within Lorenz Re can only be used to settle the liabilities of the respective segregated account and there is no recourse to the Company for the liabilities of the Lorenz Re segregated accounts. The reconciliation of the beginning and ending balance of the noncontrolling interests in Lorenz Re for the years ended December 31, 2015 and 2014 was as follows (in thousands of U.S. dollars): 2015 2014 Balance at January 1 $ 55,501 $ 56,627 Net income attributable to noncontrolling interests 2,769 13,139 Distribution to noncontrolling interests (55,820 ) (14,265 ) Balance at December 31 $ 2,450 $ 55,501 |
Dividend Restrictions and Statu
Dividend Restrictions and Statutory Requirements | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure - Dividend Restrictions and Statutory Requirements [Abstract] | |
Dividend Restrictions And Statutory Requirements Disclosure [Text Block] | 14. Dividend Restrictions and Statutory Requirements The Company’s ability to pay common and preferred shareholders’ dividends and its corporate expenses is dependent mainly on cash dividends from PartnerRe Bermuda, PartnerRe Europe and PartnerRe U.S. (collectively, the reinsurance subsidiaries), which are the Company’s most significant subsidiaries. The payment of such dividends by the reinsurance subsidiaries to the Company is limited under Bermuda and Irish laws and certain statutes of various U.S. states in which PartnerRe U.S. is licensed to transact business. The restrictions are generally based on net income and/or certain levels of policyholders’ earned surplus as determined in accordance with the relevant statutory accounting practices. At December 31, 2015 , there were no restrictions on the Company’s ability to pay common and preferred shareholders’ dividends from its retained earnings, except for the reinsurance subsidiaries’ dividend restrictions described below. The reinsurance subsidiaries are required to file annual statements with insurance regulatory authorities prepared on an accounting basis prescribed or permitted by such authorities (statutory basis), maintain minimum levels of solvency and liquidity and comply with risk-based capital requirements and licensing rules. At December 31, 2015 , the reinsurance subsidiaries’ solvency, liquidity and risk-based capital amounts were in excess of the minimum levels required. The typical adjustments to insurance statutory basis amounts to convert to U.S. GAAP include elimination of certain statutory reserves, deferral of certain acquisition costs, recognition of goodwill, intangible assets and deferred income taxes, valuation of bonds at fair value and presentation of ceded reinsurance balances gross of assumed balances. PartnerRe Bermuda may declare dividends subject to it continuing to meet its minimum solvency and capital requirements, which are to hold statutory capital and surplus equal to or exceeding the Target Capital Level, which is equivalent to 120% of the Enhanced Capital Requirement (ECR). The ECR is calculated with reference to the Bermuda Solvency Capital Requirement model, which is a risk-based capital model. At December 31, 2015 , the maximum dividend that PartnerRe Bermuda could pay without prior regulatory approval was approximately $991 million . PartnerRe Europe may declare dividends subject to it continuing to meet its minimum solvency and capital requirements, which are to hold statutory capital and surplus equal to or exceeding the Required Solvency Margin (RSM). At December 31, 2015 , the RSM is calculated with reference to Solvency I regulations. The maximum dividend is limited to “profits available for distribution”, which consist of accumulated realized profits less accumulated realized losses. At December 31, 2015 , the maximum dividend that PartnerRe Europe could pay without prior regulatory approval was approximately $257 million . On January 1, 2016 Solvency II European Directive (Solvency II regulations) came into force. The Solvency II regulations relate to the solvency standards applicable to insurers and reinsurers and lays down, at the level of PartnerRe Europe, the minimum amounts of financial resources required in order to cover the risks to which it is exposed and the principles that should guide its overall risk management and reporting. In addition to the Solvency II regulations, some of the previous rules, known as Solvency I regulations, and some specific requirements set by the Central Bank of Ireland are retained for 2016. PartnerRe U.S. may declare dividends subject to it continuing to meet its minimum solvency and capital requirements and is generally limited to paying dividends from earned surplus. The maximum dividend that can be declared and paid without prior approval is limited, together with all dividends declared and paid during the preceding twelve months, to the lesser of net investment income for the previous twelve months or 10% of its total statutory capital and surplus. At December 31, 2015 , the maximum dividend that PartnerRe U.S. could pay without prior regulatory approval was $ 12 million . In addition, the Company anticipates that, for a period of two years from the date of consummation of the Merger Agreement, PartnerRe U.S. shall be required to seek approval of the New York State Department of Financial Services prior to paying any dividends. The statutory financial statements and returns of the Company’s reinsurance subsidiaries at, and for the year ended, December 31, 2015 are due to be submitted to the relevant regulatory authorities later in 2016 , with different filing dates in each jurisdiction. In certain jurisdictions, the statutory financial statements and returns are subject to the review and final approval of the relevant regulatory authorities. The statutory net income of the Company’s reinsurance subsidiaries for the years ended December 31, 2015 , 2014 and 2013 was as follows (in millions of U.S. dollars): 2015 2014 2013 PartnerRe Bermuda $ 444 $ 660 $ 616 PartnerRe Europe 75 298 9 PartnerRe U.S. 219 236 123 The required and actual statutory capital and surplus of the Company’s reinsurance subsidiaries at December 31, 2015 and 2014 was as follows (in millions of U.S. dollars): PartnerRe Bermuda PartnerRe Europe PartnerRe U.S. 2015 2014 2015 2014 2015 2014 Required statutory capital and surplus $ 2,041 $ 1,984 $ 805 $ 867 $ 701 $ 764 Actual statutory capital and surplus 3,032 3,157 1,062 1,400 1,405 1,420 At December 31, 2015 and 2014 , the Company has Swiss and French branches of PartnerRe Europe that are regulated by the Central Bank of Ireland, as prescribed by the EU Reinsurance Directive. At December 31, 2015 , the Company also has a subsidiary in Asia that is regulated by MAS. In addition to the required statutory capital and surplus requirements in the table above, the Company assesses its own solvency capital needs both at a Group and subsidiary level taking into account factors which may not be fully reflected in statutory requirements. The Company’s solvency capital requirements determined under these self assessments may impact the level of the dividends payable by its reinsurance subsidiaries. Of the Company’s total net assets of $6.9 billion at December 31, 2015 , the total amount of restricted net assets for the Company’s consolidated subsidiaries was $5.3 billion and primarily related to the statutory dividend restrictions described above. |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure - Taxation [Abstract] | |
Taxation | 15. Taxation The Company and its Bermuda domiciled subsidiaries are not subject to Bermuda income or capital gains tax under current Bermuda law. In the event that there is a change in current law such that taxes on income or capital gains are imposed, the Company and its Bermuda domiciled subsidiaries would be exempt from such tax until March 2035 pursuant to the Bermuda Exempted Undertakings Tax Protection Act of 1966. The Company has subsidiaries and branches that operate in various other jurisdictions around the world that are subject to tax in the jurisdictions in which they operate. The significant jurisdictions in which the Company’s subsidiaries and branches are subject to tax are Canada, France, Ireland, Singapore, Switzerland and the United States. Income tax returns are open for examination for the tax years 2010-2015 in Canada and Ireland, 2011-2015 in Singapore and Switzerland, 2012-2015 in the United States and 2013-2015 in France. As a global organization, the Company may be subject to a variety of transfer pricing or permanent establishment challenges by taxing authorities in various jurisdictions. While management believes that adequate provision has been made in the Consolidated Financial Statements for any potential assessments that may result from tax examinations for all open tax years, the completion of tax examinations for open years may result in changes to the amounts recognized in the Consolidated Financial Statements. Income tax expense for the years ended December 31, 2015 , 2014 and 2013 was as follows (in thousands of U.S. dollars): 2015 2014 2013 Current income tax expense U.S. $ 81,066 $ 51,615 $ 55,993 Non U.S. 95,720 184,367 73,599 Total current income tax expense $ 176,786 $ 235,982 $ 129,592 Deferred income tax (benefit) expense U.S. $ (59,624 ) $ 20,410 $ (13,693 ) Non U.S. (44,125 ) (17,636 ) (70,886 ) Total deferred income tax (benefit) expense $ (103,749 ) $ 2,774 $ (84,579 ) Unrecognized tax expense (benefit) U.S. $ — $ — $ (335 ) Non U.S. 6,627 750 3,738 Total unrecognized tax expense $ 6,627 $ 750 $ 3,403 Total income tax expense U.S. $ 21,442 $ 72,025 $ 41,965 Non U.S. 58,222 167,481 6,451 Total income tax expense $ 79,664 $ 239,506 $ 48,416 Income before taxes attributable to the Company’s domestic and foreign operations and a reconciliation of the actual income tax rate to the amount computed by applying the effective tax rate of 0% under Bermuda (the Company’s domicile) law to income before taxes was as follows for the years ended December 31, 2015 , 2014 and 2013 (in thousands of U.S. dollars): 2015 2014 2013 Domestic (Bermuda) $ (63,603 ) $ 686,538 $ 611,900 Foreign 250,417 621,081 109,958 Income before taxes $ 186,814 $ 1,307,619 $ 721,858 Reconciliation of effective tax rate (% of income before taxes) Expected tax rate 0.0 % 0.0 % 0.0 % Foreign taxes at local expected tax rates 58.3 15.8 5.1 Impact of foreign exchange gains (losses) 1.1 2.2 (1.1 ) Unrecognized tax expense 3.5 0.1 0.5 Tax-exempt income and expenses not deductible (8.0 ) (2.2 ) (0.9 ) Impact of enacted changes in tax laws 0.3 — 1.8 Foreign branch tax (26.8 ) 1.4 (1.4 ) Ceding commissions (0.7 ) 1.8 (0.4 ) Valuation allowance 15.2 (0.6 ) 1.3 Other (0.3 ) (0.2 ) 1.8 Actual tax rate 42.6 % 18.3 % 6.7 % Deferred tax assets and liabilities reflect the tax impact of temporary differences between the carrying amounts of assets and liabilities for financial reporting and income tax purposes. Significant components of the net deferred tax assets and liabilities at December 31, 2015 and 2014 were as follows (in thousands of U.S. dollars): 2015 2014 Deferred tax assets Discounting of loss reserves and adjustment to life policy reserves $ 61,712 $ 77,117 Foreign tax credit carryforwards 94,560 57,186 Tax loss carryforwards 28,663 35,384 Unearned premiums 23,319 23,230 Other deferred tax assets 49,545 32,431 257,799 225,348 Valuation allowance (94,176 ) (68,115 ) Deferred tax assets 163,623 157,233 Deferred tax liabilities Deferred acquisition costs 48,759 54,718 Goodwill and other intangibles 85,185 93,416 Equalization reserves 55,715 77,383 Unrealized appreciation and timing differences on investments 23,240 85,873 Other deferred tax liabilities 54,715 51,385 Deferred tax liabilities 267,614 362,775 Net deferred tax liabilities $ (103,991 ) $ (205,542 ) The components of net tax assets and liabilities at December 31, 2015 and 2014 were as follows (in thousands of U.S. dollars): 2015 2014 Net tax assets $ 102,596 $ 6,876 Net tax liabilities (218,652 ) (240,989 ) Net tax liabilities $ (116,056 ) $ (234,113 ) 2015 2014 Net current tax assets (liabilities) $ 11,773 $ (9,739 ) Net deferred tax liabilities (103,991 ) (205,542 ) Net unrecognized tax benefit (23,838 ) (18,832 ) Net tax liabilities $ (116,056 ) $ (234,113 ) Realization of the deferred tax assets is dependent on generating sufficient taxable income in future periods. Although realization is not assured, Management believes that it is more likely than not that the deferred tax assets will be realized. The valuation allowance recorded at December 31, 2015 related to a foreign tax credit carryforward of $89.4 million in Ireland and to tax loss carryforwards of $3.5 million , $1.0 million and $0.3 million in Canada, the United States and Switzerland, respectively. The valuation allowance recorded at December 31, 2014 related to a foreign tax credit carryforward of $47.0 million in Ireland and to tax loss carryforwards of $20.0 million and $1.1 million in Singapore and Canada, respectively. A portion of the valuation allowance recorded at December 31, 2014 related to a foreign tax credit carryforward was reversed during the year ended December 31, 2015 , resulting from a reassessment of the likelihood of recovery of the related deferred tax asset. At December 31, 2015 , the deferred tax assets (after valuation allowance) included tax loss carryforwards of $19.1 million in Singapore, which can be carried forward for an unlimited period of time, $2.9 million in Ireland, which can be carried forward for an unlimited period of time, and $0.3 million in the United States, which can be carried forward for 20 years , and foreign tax credit carryforwards of $5.2 million in Ireland, which can be carried forward for an unlimited period of time. At December 31, 2014, the deferred tax assets (after valuation allowance) included foreign tax credit carryforwards of $10.1 million in Ireland, which can be carried forward for an unlimited period of time, tax loss carryforwards of $10.3 million in Switzerland, which can be carried forward for 7 years, and $3.1 million in Ireland, which can be carried forward for an unlimited period of time. The total amount of unrecognized tax benefits for the years ended December 31, 2015 , 2014 and 2013 was as follows (in thousands of U.S. dollars): January 1, 2015 Changes in tax positions taken during a prior period Tax positions taken during the current period Change as a result of a lapse of the statute of limitations Impact of the change in foreign currency exchange rates December 31, 2015 Unrecognized tax benefits that, if recognized, would impact the effective tax rate $ 18,266 $ 29 $ 8,683 $ (3,039 ) $ (1,684 ) $ 22,255 Interest and penalties recognized on the above 566 716 261 (24 ) 64 1,583 Total unrecognized tax benefits, including interest and penalties $ 18,832 $ 745 $ 8,944 $ (3,063 ) $ (1,620 ) $ 23,838 January 1, 2014 Changes in tax Tax positions Change as a Impact of the December 31, 2014 Unrecognized tax benefits that, if recognized, would impact the effective tax rate $ 19,353 $ 1,338 $ 5,142 $ (5,197 ) $ (2,370 ) $ 18,266 Interest and penalties recognized on the above 1,215 259 — (792 ) (116 ) 566 Total unrecognized tax benefits, including interest and penalties $ 20,568 $ 1,597 $ 5,142 $ (5,989 ) $ (2,486 ) $ 18,832 January 1, Changes in tax Tax positions Change as a Impact of the December 31, Unrecognized tax benefits that, if recognized, would impact the effective tax rate $ 15,784 $ (5,038 ) $ 10,164 $ (2,102 ) $ 545 $ 19,353 Interest and penalties recognized on the above 800 507 51 (179 ) 36 1,215 Total unrecognized tax benefits, including interest and penalties $ 16,584 $ (4,531 ) $ 10,215 $ (2,281 ) $ 581 $ 20,568 For the years ended December 31, 2015 , 2014 and 2013 , there were no unrecognized tax benefits that, if recognized, would create a temporary difference between the reported amount of an item in the Company’s Consolidated Balance Sheets and its tax basis. The Company recognizes interest and penalties as income tax expense in its Consolidated Statements of Operations. At December 31, 2015 , the unrecognized tax benefit which is reasonably possible to change within twelve months is $5.8 million primarily relating to the expected expiration of the statute of limitations on certain tax positions. |
Share-Based Awards
Share-Based Awards | 12 Months Ended |
Dec. 31, 2015 | |
Share-based Arrangements with Employees and Nonemployees [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 16. Share-Based Awards Employee Equity Plan The Company's Employee Equity Plan (EEP) expired in May 2015 and the Company has ceased granting any new awards to employees under the plan. The EEP, which was approved by the Company’s shareholders, permitted the grant of share options, RS, RSUs, SSARs or other share-based awards to employees of the Company. The EEP has been administered by the Compensation and Management Development Committee of the Board (the Committee). From 2013, the Company also granted PSUs to employees of the Company. Under the EEP, the exercise price of the award would not be less than the fair value of the award at the time of grant. The fair value was defined in the EEP as the closing price reported on the grant date. RSU and PSU awards granted under the EEP generally cliff vest after three years of continuous service. Share options and SSARs vest ratably over three years of continuous service and have a ten year contractual term. Participants in the EEP are eligible to receive dividend equivalents, which the Company records as an expense, on RSUs and PSUs that are unvested. At December 31, 2015 , no shares remain available for issuance under this plan given it expired in May 2015. Non-Employee Directors Share Plan The Company’s Non-Employee Directors Share Plan (Directors Share Plan), which was approved by the Company’s shareholders, permits the grant of up to 1.2 million shares, of which a total of 0.8 million shares can be issued as either RS or RSUs and 0.4 million shares can be issued as share options or SSARs. Under the Directors Share Plan, the exercise price of the award will not be less than the fair value of the award at the time of grant. The fair value is defined in the Directors Share Plan as the closing price reported on the grant date. Prior to 2013, options and RSUs were awarded under the Directors Share Plan. Since 2013, only RSUs have been awarded. Options generally vest and are expensed ratably over three years and have a ten year contractual term. RSUs have a five year cliff vest with no delivery restrictions and are expensed over the vesting period. Prior to the RSU grant, directors have the ability to elect to receive their awards in the form of either 100% RSUs, or split, with 60% of the award being RSUs and 40% of the award being cash upon delivery. At December 31, 2015 , 0.3 million shares remained available for issuance under this plan. Employee Share Purchase Plan The PartnerRe Ltd. Employee Share Purchase Plan (ESPP), which was approved by the Company’s shareholders, was suspended effective June 1, 2015. The ESPP had a twelve month offering period with two purchase periods of six months each. All employees were eligible to participate in the ESPP and could contribute between 1% and 10% of their base salary towards the purchase of the Company’s shares up to the limit set by the Internal Revenue Code of the United States. Employees who enrolled in the ESPP could purchase the Company’s shares at a 15% discount of the lower fair value on either the enrolment date or purchase date. Participants in the ESPP were eligible to receive dividends on their shares as of the purchase date. Swiss Share Purchase Plan The Swiss Share Purchase Plan (SSPP) was suspended effective June 1, 2015. The SSPP had two offering periods per year with two purchase periods of six months each. Swiss employees, who worked at least 20 hours per week, were eligible to participate in the SSPP and could contribute between 1% and 8% of their base salary towards the purchase of the Company’s shares up to a maximum of 5,000 Swiss francs per annum. Employees who enrolled in the SSPP could purchase the Company’s shares at a 40% discount of the fair value on the purchase date. There is a restriction on transfer or sale of these shares for a period of two years following purchase. Participants in the SSPP were eligible to receive dividends on their shares as of the purchase date. Share-Based Compensation Under each of the Company’s equity plans, the Company re-issues treasury shares or issues new shares upon the exercise of share options and SSARs or the conversion of RSUs into shares. For the years ended December 31, 2015 , 2014 and 2013 , the Company’s share-based compensation expense was $41.6 million , $34.4 million and $29.8 million , respectively, with a tax benefit of $7.4 million , $6.9 million and $3.3 million , respectively. Included within these tax benefits are amounts related to the exercise of share options and the conversion of RSUs and SSARs into shares by employees of the Company of $10.2 million , $6.2 million and $7.0 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Share Options The activity related to share options exercised for the years ended December 31, 2015 , 2014 and 2013 was as follows: 2015 2014 2013 Options exercised 142,429 225,329 819,764 Total intrinsic value of options exercised (in millions of U.S. dollars) $ 8.5 $ 8.7 $ 24.8 Proceeds from option exercises (in millions of U.S. dollars) $ 9.8 $ 14.7 $ 49.6 The activity related to the Company’s share options for the year ended December 31, 2015 was as follows: Options Weighted Average Exercise Price Outstanding at January 1, 2015 410,347 $ 71.55 Exercised (142,429 ) 70.47 Outstanding at December 31, 2015 267,918 $ 72.13 Options exercisable at December 31, 2015 267,918 $ 72.13 Options vested and expected to vest at December 31, 2015 267,918 $ 72.13 The weighted average remaining contractual term and the aggregate intrinsic value of share options outstanding, exercisable, vested and expected to vest at December 31, 2015 , was 4.2 years and $18.1 million , respectively. The Company valued share options issued with a Black-Scholes valuation model. No share options have been issued since December 31, 2012. Restricted Share Units and Performance Share Units During the years ended December 31, 2015 , 2014 and 2013 , the Company issued 264,018 RSUs and PSUs, 333,358 RSUs and PSUs and 329,174 RSUs and PSUs with a weighted average grant date fair value of $119.06 , $98.86 and $89.44 , respectively. The Company values RSUs and PSUs issued under all plans at the fair value of its common shares at the date of grant date. The activity related to the Company’s RSUs and PSUs for the year ended December 31, 2015 was as follows: RSUs and PSUs Outstanding at January 1, 2015 932,622 Granted 264,018 Performance based adjustment 10,142 Vested (313,078 ) Forfeited (32,096 ) Outstanding at December 31, 2015 861,608 The RSUs and PSUs that vested during the years ended December 31, 2015 , 2014 and 2013 had a fair value of $22.4 million , $20.6 million and $22.8 million , respectively. The total unrecognized share-based compensation expense related to unvested RSUs and PSUs was approximately $27.6 million at December 31, 2015 , which is expected to be recognized over a weighted-average period of 1.7 years. Share-Settled Share Appreciation Rights (SSARs) During the years ended December 31, 2015 , 2014 and 2013 , the Company issued 72,918 SSARs, 153,797 SSARs and 125,561 SSARs with a weighted average grant date fair value of $17.03 , $14.62 and $11.25 , respectively. The activity related to the Company’s SSARs for the year ended December 31, 2015 was as follows: SSARs Outstanding at January 1, 2015 1,492,926 Granted 72,918 Exercised (574,120 ) Outstanding at December 31, 2015 991,724 Exercisable at December 31, 2015 820,380 The total unrecognized share-based compensation expense related to unvested SSARs was approximately $1.1 million at December 31, 2015 , which is expected to be recognized over a weighted-average period of 1.7 years. The Company values SSARs issued with a Black-Scholes valuation model and used the following assumptions for the years ended December 31, 2015 , 2014 and 2013 : 2015 2014 2013 Expected life 6 years 6 years 6 years Expected volatility 17.7 % 18.1 % 18.3 % Risk-free interest rate 1.9 % 1.9 % 1.0 % Dividend yield 2.2 % 2.2 % 2.3 % Expected volatility is based on the historical volatility of the Company’s common shares over a period equivalent to the expected life of the Company’s SSARs. The risk-free interest rate is based on the market yield of U.S. treasury securities with maturities equivalent to the expected life of the Company’s SSARs. The dividend yield is based on the average dividend yield of the Company’s shares over the expected life of the Company’s SSARs. Warrants In 2009, the Company issued 27,655 replacement warrants as part of the acquisition of Paris Re. At December 31, 2015 , 557 warrants are outstanding and fully vested with a weighted average remaining contractual life of 1.0 years and a weighted average exercise price of $30.86 . During the year ended December 31, 2015 , 8,110 warrants were exercised with a weighted average exercise price of $31.25 . |
Retirement Benefit Arrangements
Retirement Benefit Arrangements | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure - Retirement Benefit Arrangements [Abstract] | |
Retirement Benefit Arrangements | 17. Retirement Benefit Arrangements For employee retirement benefits, the Company maintains certain defined contributions plans and other active and frozen defined benefit plans. The majority of the defined benefit obligation at December 31, 2015 relates to the active defined benefit plan for the Company’s Zurich office employees (the Zurich Plan). Defined Contribution Plans Contributions are made by the Company, and in some locations, these contributions are supplemented by the local plan participants. Contributions are based on a percentage of the participant’s base salary depending upon competitive local market practice and vesting provisions meeting legal compliance standards and market trends. The accumulated benefits for the majority of these plans vest immediately or over a four-year period. As required by law, certain retirement plans also provide for death and disability benefits and lump sum indemnities to employees upon retirement. The Company incurred expenses for these defined contribution arrangements of $13.4 million , $15.9 million and $14.5 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Active Defined Benefit Plan The Company maintains the Zurich Plan, which is classified as a hybrid plan and accounted for as a defined benefit plan under U.S. GAAP. At December 31, 2015 and 2014 , the funded status of the Zurich Plan was as follows (in thousands of U.S. dollars): 2015 2014 Funded status Unfunded pension obligation at beginning of year $ 41,365 $ 24,614 Change in pension obligation Service cost 6,945 6,188 Interest cost 1,682 2,635 Plan participants’ contributions 2,504 1,838 Actuarial loss 7,550 15,796 Plan amendments — 2,667 Benefits paid (1,730 ) (7,392 ) Foreign currency adjustments (465 ) (13,493 ) Change in pension obligation 16,486 8,239 Change in fair value of plan assets Actual return on plan assets 1,594 1,707 Employer contributions 5,337 5,492 Plan participants’ contributions 2,504 1,838 Benefits paid (1,730 ) (7,392 ) Foreign currency adjustments (259 ) (10,157 ) Change in fair value of plan assets 7,446 (8,512 ) Funded status Unfunded pension obligation at end of year $ 50,405 $ 41,365 Additional information: Projected benefit obligation at end of year $ 151,115 $ 134,629 Accumulated pension obligation at end of year 141,716 127,322 Fair value of plan assets at end of year 100,710 93,264 At December 31, 2015 and 2014 , the funded status was included in Accounts payable, accrued expenses and other in the Consolidated Balance Sheets. The total amounts recognized in Accumulated other comprehensive loss at December 31, 2015 and 2014 were $29.2 million (net of $7.9 million of taxes) and $25.4 million (net of $6.8 million of taxes), respectively. The net periodic benefit cost for the years ended December 31, 2015 , 2014 and 2013 was $9.6 million , $7.3 million and $10.7 million , respectively. The investment strategy of the Zurich Plan’s Pension Committee is to achieve a consistent long-term return, which will provide sufficient funding for future pension obligations while limiting risk. The expected long-term rate of return on plan assets is based on the expected asset allocation and assumptions concerning long-term interest rates, inflation rates and risk premiums for equities above the risk-free rates of return. These assumptions take into consideration historical long-term rates of return for the relevant asset categories. The investment strategy is reviewed regularly. The fair value of the Zurich Plan’s assets at December 31, 2015 and 2014 were insured funds and cash (Level 2) of $100.7 million and $93.3 million , respectively. The insured funds comprise the accumulated pension plan contributions and investment returns thereon, which are held in an insurance arrangement that provides at least a guaranteed minimum investment return. The insured funds are held by a collective foundation of AXA Life Ltd. and are guaranteed under the insurance arrangement. The assumptions used to determine the Zurich Plan’s pension obligation and net periodic benefit cost for the years ended December 31, 2015 , 2014 and 2013 were as follows: 2015 2014 2013 Pension obligation Net periodic benefit cost Pension obligation Net periodic benefit cost Pension obligation Net periodic benefit cost Discount rate 1.00 % 1.25 % 1.25 % 2.25 % 2.25 % 1.75 % Expected return on plan assets — 1.25 % — 2.25 % — 1.75 % Rate of compensation increase 2.25 % 2.25 % 2.25 % 2.50 % 2.50 % 2.50 % At December 31, 2015 , estimated employer contributions to be paid in 2016 related to the Zurich Plan were $4.9 million and future benefit payments were estimated to be paid as follows (in thousands of U.S. dollars): Year Amount 2016 $ 4,566 2017 4,531 2018 4,264 2019 4,244 2020 4,454 2021 to 2025 30,061 The Company does not believe that any of the Zurich Plan’s assets will be returned to the Company during 2016 . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 18. Commitments and Contingencies (a) Concentration of Credit Risk Fixed maturities The Company’s investment portfolio is managed following prudent standards of diversification and a prudent investment philosophy. The Company is not exposed to any significant credit concentration risk on its investments, except for debt securities issued by the U.S. government and other highly rated non-U.S. sovereign governments’ securities. At December 31, 2015 and 2014 , other than the U.S. government, the Company’s fixed maturity investment portfolio did not contain exposure to any non-U.S. sovereign government or any other issuer that accounted for more than 10% of the Company’s shareholders’ equity attributable to PartnerRe. The Company keeps cash and cash equivalents in several banks and monitors significant concentrations of credit risk in any one bank. At December 31, 2015 , the Company held cash and cash equivalent of $1.2 billion with a high credit quality international bank which was primarily invested in United States government and government sponsored enterprises' money market funds. This concentration at December 31, 2015 was partially due to the timing of investment sale and purchase activity and certain specific cash requirements related to the closing of the Merger. Derivatives The Company’s investment strategy allows for the use of derivative instruments, subject to strict limitations. Derivative instruments may be used to replicate investment positions and for the purpose of managing overall currency risk, market exposures and portfolio duration, for hedging certain investments, or for enhancing investment performance that would be allowed under the Company’s investment policy if implemented in other ways. The Company is exposed to credit risk in the event of non-performance by the counterparties to the Company’s derivative contracts. However, the Company diversifies the counterparties to its derivative contracts to reduce credit risk, and because the counterparties to these contracts are high credit quality international banks, the Company does not anticipate non-performance. These contracts are generally of short duration and settle on a net basis. The difference between the contract amounts and the related market value represents the Company’s maximum credit exposure. Underwriting operations The Company is also exposed to credit risk in its underwriting operations, most notably in the credit/surety line. Loss experience in these lines of business is cyclical and is affected by the state of the general economic environment. The Company provides its clients in these lines of business with reinsurance protection against credit deterioration, defaults or other types of financial non-performance of or by the underlying credits that are the subject of the reinsurance provided and, accordingly, the Company is exposed to the credit risk of those credits. The Company mitigates the risks associated with these credit-sensitive lines of business through the use of risk management techniques such as risk diversification, careful monitoring of risk aggregations and accumulations and, at times, through the use of retrocessional reinsurance protection and the purchase of credit default, total return and interest rate swaps. The Company has exposure to credit risk as it relates to its business written through brokers, if any of the Company’s brokers is unable to fulfill their contractual obligations with respect to payments to the Company. In addition, in some jurisdictions, if the broker fails to make payments to the insured under the Company’s policy, the Company might remain liable to the insured for the deficiency. The Company’s exposure to such credit risk is somewhat mitigated in certain jurisdictions by contractual terms. The Company has exposure to credit risk related to reinsurance balances receivable and reinsurance recoverable on paid and unpaid losses. The credit risk exposure related to these balances is mitigated by several factors, including but not limited to, credit checks performed as part of the underwriting process, monitoring of aged receivable balances and the contractual right to offset premiums receivable or funds held balances against unpaid losses and loss expenses. The Company regularly reviews its reinsurance recoverable balances to estimate an allowance for uncollectible amounts based on quantitative and qualitative factors. At December 31, 2015 and 2014 , the Company recorded a provision for uncollectible premiums receivable of $8 million . See also Note 9 for discussion of credit risk related to reinsurance recoverable on paid and unpaid losses. The Company is also subject to the credit risk of its cedants in the event of insolvency or the cedant’s failure to honor the value of funds held balances for any other reason. The funds held – directly managed account is with one cedant and is supported by an underlying portfolio of investments, which are managed by the Company (see Note 5). However, the Company’s credit risk in some jurisdictions is mitigated by a mandatory right of offset of amounts payable by the Company to a cedant against amounts due to the Company. In certain other jurisdictions the Company is able to mitigate this risk, depending on the nature of the funds held arrangements, to the extent that the Company has the contractual ability to offset any shortfall in the payment of the funds held balances with amounts owed by the Company to cedants for losses payable and other amounts contractually due. (b) Lease Arrangements The Company leases office space under operating leases expiring in various years through 2022. The leases are renewable at the option of the lessee under certain circumstances. The following is a schedule of future minimum rental payments, exclusive of escalation clauses, on non-cancelable leases and future sub-lease rental income on non-cancellable leases at December 31, 2015 (in thousands of U.S. dollars): Year Amount 2016 $ 26,150 2017 25,312 2018 12,618 2019 5,601 2020 981 2021 through 2022 1,398 Total future minimum rental payments $ 72,060 Total future sub-lease rental income through 2019 $ 7,360 Rent expense for the years ended December 31, 2015 , 2014 and 2013 was $23.2 million , $33.6 million and $33.0 million , respectively, excluding any restructuring charges related to real estate. (c) Merger Related Charges and Special Dividend In connection with the Merger Agreement with EXOR, the Company will incur further charges that are contingent upon the closing of the Merger of between $30 million and $40 million related to professional costs. The Company will incur these costs upon the closing of the transaction, which is expected to occur in the first quarter of 2016. On November 19, 2015, the Company announced that its Board had declared a special dividend of $3.00 per share payable to its common shareholders prior to the closing of the Merger. The payment of this special dividend is conditional and contingent upon the consummation of the Merger. (d) Employment Agreements The Company has entered into employment agreements with its executive officers. These agreements provide for annual compensation in the form of salary, benefits, annual incentive payments, share-based compensation, the reimbursement of certain expenses, retention incentive payments, as well as certain severance and change in control provisions. (e) Other Agreements The Company has entered into service agreements and lease contracts that provide for business and information technology support and computer equipment. Future payments under these contracts amount to $14 million through 2019. The Company has entered into strategic investments with unfunded capital commitments. In the next five years, the Company expects to fund capital commitments totaling $93 million with $47 million , $35 million , $10 million , $1 million and $ nil to be paid during 2016, 2017, 2018, 2019 and 2020, respectively. The Company has committed to a 10 year structured letter of credit facility issued by a high credit quality international bank, which has a final maturity of December 29, 2020 . At December 31, 2015 and 2014 , the Company's participation in the facility was $81 million and $61 million , respectively. At December 31, 2015 , the letter of credit facility has not been drawn down and can only be drawn down in the event of certain specific scenarios, which the Company considers remote. Unless canceled by the bank, the credit facility automatically extends for one year, each year until maturity. (f) Legal Proceedings Litigation The Company’s reinsurance subsidiaries, and the insurance and reinsurance industry in general, are subject to litigation and arbitration in the normal course of their business operations. In addition to claims litigation, the Company and its subsidiaries may be subject to lawsuits and regulatory actions in the normal course of business that do not arise from or directly relate to claims on reinsurance treaties. This category of business litigation typically involves, among other things, allegations of underwriting errors or omissions, employment claims or regulatory activity. While the outcome of business litigation cannot be predicted with certainty, the Company will dispute all allegations against the Company and/or its subsidiaries that Management believes are without merit. At December 31, 2015 , the Company was not a party to any litigation or arbitration that it believes could have a material effect on the financial condition, results of operations or liquidity of the Company. |
Credit Agreements
Credit Agreements | 12 Months Ended |
Dec. 31, 2015 | |
Line of Credit Facility [Abstract] | |
Schedule of Line of Credit Facilities [Table Text Block] | 19. Credit Agreements In the normal course of its operations, the Company enters into agreements with financial institutions to obtain unsecured and secured letter of credit facilities. At December 31, 2015 , the total amount of such credit facilities available to the Company was approximately $817 million , with each of the significant facilities described below. Under the terms of certain reinsurance agreements, irrevocable letters of credit were issued on an unsecured and secured basis in the amount of $113 million and $375 million , respectively, at December 31, 2015 , in respect of reported loss and unearned premium reserves. The Company maintains a $300 million combined credit facility, with the first $100 million being unsecured and any utilization above the initial $100 million being secured. This credit facility matures on November 14, 2016 . Unless canceled by either counterparty, this credit facility automatically extends for one year. In addition, the Company maintains committed secured letter of credit facilities. These facilities are used for the issuance of letters of credit, which must be fully secured with cash and/or government bonds and/or investment grade bonds. The agreements include default covenants, which could require the Company to fully secure the outstanding letters of credit to the extent that the facility is not already fully secured, and disallow the issuance of any new letters of credit. Included in the Company’s secured credit facilities at December 31, 2015 is a $300 million secured credit facility, which matures on December 31, 2018 , and a $140 million secured credit facility, which matures on December 31, 2017 . At December 31, 2015 , no conditions of default existed under these facilities. |
Agreements with Related Parties
Agreements with Related Parties | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure - Agreements With Related Parties [Abstract] | |
Agreements with related parties | 20. Agreements with Related Parties The Company was party to agreements with certain entities on an arm’s-length basis as follows. Agreements with ING Group N.V. In the normal course of its underwriting activities, the Company and certain subsidiaries entered into reinsurance contracts with ING Group N.V. (a company in which a board member of the Company was a supervisory director until July 2014). The activity included in the Consolidated Statements of Operations related to ING Group N.V. for the years ended December 31, 2014 and 2013 includes net premiums earned of $1.9 million and $2.6 million , respectively, and losses and loss expenses and life policy benefits of $0.6 million and $1.3 million , respectively. Other Agreements In the normal course of its investment operations, the Company bought or held securities of companies in which board members of the Company are also directors or non-executive directors. All transactions entered into as part of the investment portfolio were completed on market terms. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Segment Reporting Disclosure [Text Block] | 21. Segment Information The Company monitors the performance of its operations in three segments, Non-life, Life and Health and Corporate and Other. The Non-life segment is further divided into four sub-segments: North America, Global (Non-U.S.) P&C, Global Specialty and Catastrophe. Segments and sub-segments represent markets that are reasonably homogeneous in terms of geography, client types, buying patterns, underlying risk patterns and approach to risk management. 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, multiline, 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 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 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 expenses. The segment results for the years ended December 31, 2015 , 2014 and 2013 , were as follows (in millions of U.S. dollars, except ratios): Segment Information For the year ended December 31, 2015 North America Global (Non-U.S.) P&C Global Specialty Catastrophe Total Non-life segment Life and Health segment Corporate and Other Total Gross premiums written $ 1,604 $ 735 $ 1,556 $ 382 $ 4,277 $ 1,271 $ — $ 5,548 Net premiums written $ 1,542 $ 726 $ 1,482 $ 272 $ 4,022 $ 1,208 $ — $ 5,230 Decrease (increase) in unearned premiums 30 (33 ) 29 12 38 1 — 39 Net premiums earned $ 1,572 $ 693 $ 1,511 $ 284 $ 4,060 $ 1,209 $ — $ 5,269 Losses and loss expenses and life policy benefits (881 ) (473 ) (785 ) (54 ) (2,193 ) (964 ) — (3,157 ) Acquisition costs (443 ) (189 ) (407 ) (25 ) (1,064 ) (153 ) — (1,217 ) Technical result $ 248 $ 31 $ 319 $ 205 $ 803 $ 92 $ — $ 895 Other income — 6 3 9 Other expenses (219 ) (63 ) (509 ) (791 ) Underwriting result $ 584 $ 35 n/a $ 113 Net investment income 59 391 450 Allocated underwriting result (1) $ 94 n/a n/a Net realized and unrealized investment losses (297 ) (297 ) Interest expense (49 ) (49 ) Amortization of intangible assets (27 ) (27 ) Net foreign exchange losses (9 ) (9 ) Income tax expense (80 ) (80 ) Interest in earnings of equity method investments 6 6 Net income n/a $ 107 Loss ratio (2) 56.0 % 68.3 % 52.0 % 19.1 % 54.0 % Acquisition ratio (3) 28.2 27.3 26.9 8.6 26.2 Technical ratio (4) 84.2 % 95.6 % 78.9 % 27.7 % 80.2 % Other expense ratio (5) 5.4 Combined ratio (6) 85.6 % (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 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 expense ratio is obtained by dividing other expenses by net premiums earned. (6) Combined ratio is defined as the sum of the technical ratio and the other expense ratio. n/a: Not applicable Segment Information For the year ended December 31, 2014 North America Global (Non-U.S.) P&C Global Specialty Catastrophe Total Non-life segment Life and Health segment Corporate and Other Total Gross premiums written $ 1,642 $ 803 $ 1,797 $ 425 $ 4,667 $ 1,265 $ — $ 5,932 Net premiums written $ 1,630 $ 794 $ 1,696 $ 380 $ 4,500 $ 1,220 $ — $ 5,720 (Increase) decrease in unearned premiums (33 ) (26 ) (58 ) 4 (113 ) 2 — (111 ) Net premiums earned $ 1,597 $ 768 $ 1,638 $ 384 $ 4,387 $ 1,222 $ — $ 5,609 Losses and loss expenses and life policy benefits (1,000 ) (438 ) (963 ) (62 ) (2,463 ) (1,000 ) — (3,463 ) Acquisition costs (401 ) (222 ) (400 ) (42 ) (1,065 ) (149 ) — (1,214 ) Technical result $ 196 $ 108 $ 275 $ 280 $ 859 $ 73 $ — $ 932 Other income 3 8 5 16 Other expenses (252 ) (68 ) (130 ) (450 ) Underwriting result $ 610 $ 13 n/a $ 498 Net investment income 60 420 480 Allocated underwriting result $ 73 n/a n/a Net realized and unrealized investment gains 372 372 Interest expense (49 ) (49 ) Amortization of intangible assets (27 ) (27 ) Net foreign exchange gains 18 18 Income tax expense (239 ) (239 ) Interest in earnings of equity method investments 15 15 Net income n/a $ 1,068 Loss ratio 62.6 % 57.0 % 58.8 % 16.1 % 56.1 % Acquisition ratio 25.1 28.9 24.4 11.0 24.3 Technical ratio 87.7 % 85.9 % 83.2 % 27.1 % 80.4 % Other expense ratio 5.8 Combined ratio 86.2 % Segment Information For the year ended December 31, 2013 North Global Global Catastrophe Total Life Corporate Total Gross premiums written $ 1,601 $ 818 $ 1,676 $ 495 $ 4,590 $ 972 $ 8 $ 5,570 Net premiums written $ 1,587 $ 811 $ 1,579 $ 450 $ 4,427 $ 964 $ 6 $ 5,397 (Increase) decrease in unearned premiums (54 ) (68 ) (73 ) 3 (192 ) (7 ) — (199 ) Net premiums earned $ 1,533 $ 743 $ 1,506 $ 453 $ 4,235 $ 957 $ 6 $ 5,198 Losses and loss expenses and life policy benefits (975 ) (373 ) (920 ) (132 ) (2,400 ) (760 ) 2 (3,158 ) Acquisition costs (351 ) (196 ) (362 ) (44 ) (953 ) (125 ) — (1,078 ) Technical result $ 207 $ 174 $ 224 $ 277 $ 882 $ 72 $ 8 $ 962 Other income 3 11 3 17 Other expenses (259 ) (71 ) (170 ) (500 ) Underwriting result $ 626 $ 12 n/a $ 479 Net investment income 61 423 484 Allocated underwriting result $ 73 n/a n/a Net realized and unrealized investment losses (161 ) (161 ) Interest expense (49 ) (49 ) Amortization of intangible assets (27 ) (27 ) Net foreign exchange losses (18 ) (18 ) Income tax expense (49 ) (49 ) Interest in earnings of equity method investments 14 14 Net income n/a $ 673 Loss ratio 63.6 % 50.2 % 61.1 % 29.0 % 56.7 % Acquisition ratio 22.9 26.4 24.0 9.7 22.5 Technical ratio 86.5 % 76.6 % 85.1 % 38.7 % 79.2 % Other expense ratio 6.1 Combined ratio 85.3 % The following table provides the distribution of net premiums written by line of business for the years ended December 31, 2015 , 2014 and 2013 : 2015 2014 2013 Non-life Property and casualty Casualty 12 % 12 % 12 % Motor 7 7 7 Multiline and other 7 5 4 Property 11 11 12 Specialty Agriculture 11 12 11 Aviation/Space 4 4 4 Catastrophe 5 6 8 Credit/Surety 6 7 6 Energy 1 1 2 Engineering 3 3 4 Marine 4 5 6 Specialty casualty 3 3 3 Specialty property 3 3 3 Life and Health 23 21 18 Total 100 % 100 % 100 % The following table provides the geographic distribution of gross premiums written based on the location of the underlying risk for the years ended December 31, 2015 , 2014 and 2013 : 2015 2014 2013 Asia, Australia and New Zealand 12 % 11 % 11 % Europe 37 40 40 Latin America, Caribbean and Africa 10 10 10 North America 41 39 39 Total 100 % 100 % 100 % The Company produces its business both through brokers and through direct relationships with insurance company clients. None of the Company’s cedants individually accounted for more than 3% , 4% and 4% of total gross premiums written during the years ended December 31, 2015 , 2014 and 2013 , respectively. The Company has two brokers that individually accounted for 10% or more of its gross premiums written during the years ended December 31, 2015 , 2014 and 2013 . The brokers accounted for 19% , 20% and 22% and 22% , 20% and 21% of gross premiums written for the years ended December 31, 2015 , 2014 and 2013 , respectively. The following table summarizes the percentage of gross premiums written through these two brokers by segment and sub-segment for the years ended December 31, 2015 , 2014 and 2013 : 2015 2014 2013 Non-life North America 63 % 59 % 60 % Global (Non-U.S.) P&C 28 31 29 Global Specialty 38 38 41 Catastrophe 75 70 74 Life and Health 16 12 12 |
Other Expenses
Other Expenses | 12 Months Ended |
Dec. 31, 2015 | |
Other Expenses [Abstract] | |
Other Income and Other Expense Disclosure [Text Block] | 22. Other Expenses (a) Transaction Related Charges On August 3, 2015, in connection with the execution of the Merger Agreement with EXOR, the Company and AXIS terminated the Amalgamation Agreement. The Company paid AXIS a termination fee and reimbursement of expenses of $315 million which is included within Other expenses in the Consolidated Statements of Operations for the year ended December 31, 2015. During the year ended December 31, 2015, the Company recorded $63 million of other transaction costs related to professional fees and severance costs associated with the Amalgamation Agreement with AXIS and Merger Agreement with EXOR within Other expenses in the Consolidated Statements of Operations. (b) Restructuring Charges In April 2013, the Company announced the restructuring of its business support operations into a single integrated worldwide support platform and changes to the structure of its Global Non-life Operations. The restructuring included involuntary and voluntary employee termination plans in certain jurisdictions (collectively, termination plans) and certain real estate costs. Employees affected by the termination plans had varying leaving dates by December 31, 2015. During the years ended December 31, 2014 , and 2013, the Company recorded a pre-tax charge of $11 million and $58 million , respectively, related to the costs of the restructuring, which was primarily related to the termination plans and certain real estate costs, within Other expenses. The continuing salary and other employment benefit costs related to the affected employees were expensed as the employee remained with the Company and provided service. (c) Other Charges On April 17, 2015, PartnerRe U.S. Corporation, a subsidiary of the Company, agreed a negotiated earn-out consideration to be paid to the former shareholders of Presidio Reinsurance Group, Inc. in the amount of $29 million pursuant to an earn-out agreement dated December 31, 2012 (Earn-out Agreement). The Company previously accrued $4 million in connection with the Earn-out Agreement through December 31, 2014, and the remaining $25 million , pre-tax, was recorded in Other expenses in the Consolidated Statements of Operations for the year ended December 31, 2015. |
Unaudited Quarterly Financial I
Unaudited Quarterly Financial Information | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Text Block] | 23. Unaudited Quarterly Financial Information 2015 2014 (in millions of U.S. dollars, except per share amounts) Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter Net premiums written $ 1,064 $ 1,190 $ 1,322 $ 1,653 $ 1,220 $ 1,343 $ 1,419 $ 1,738 Net premiums earned 1,294 1,412 1,328 1,235 1,446 1,557 1,353 1,254 Net investment income 108 117 120 105 115 118 130 117 Net realized and unrealized investment (losses) gains (24 ) (133 ) (256 ) 116 98 (34 ) 166 142 Other income 1 3 — 4 4 2 9 — Total revenues 1,379 1,399 1,192 1,460 1,663 1,643 1,658 1,513 Losses and loss expenses and life policy benefits 767 804 865 721 870 960 884 749 Acquisition costs 311 347 283 276 325 322 303 265 Other expenses 120 416 130 125 123 108 107 111 Interest expense 12 12 12 12 12 12 12 12 Amortization of intangible assets 6 7 7 7 6 7 7 7 Net foreign exchange (gains) losses (6 ) 22 6 (13 ) (7 ) (8 ) (2 ) — Total expenses 1,210 1,608 1,303 1,128 1,329 1,401 1,311 1,144 Income (loss) before taxes and interest in earnings (losses) of equity method investments 169 (209 ) (111 ) 332 334 242 347 369 Income tax (benefit) expense (3 ) 17 (14 ) 80 53 46 78 62 Interest in earnings (losses) of equity method investments 5 (3 ) 8 (4 ) (1 ) 5 5 6 Net income (loss) 177 (229 ) (89 ) 248 280 201 274 313 Net income attributable to noncontrolling interests — — — (2 ) (3 ) (5 ) (2 ) (3 ) Net income (loss) attributable to PartnerRe Ltd. 177 (229 ) (89 ) 246 277 196 272 310 Preferred dividends 14 14 14 14 14 14 14 14 Net income (loss) attributable to PartnerRe Ltd. common shareholders $ 163 $ (243 ) $ (103 ) $ 232 $ 263 $ 182 $ 258 $ 296 Basic net income (loss) per common share $ 3.39 $ (5.08 ) $ (2.16 ) $ 4.88 $ 5.39 $ 3.68 $ 5.13 $ 5.72 Diluted net income (loss) per common share $ 3.30 $ (5.08 ) $ (2.16 ) $ 4.76 $ 5.26 $ 3.60 $ 5.02 $ 5.61 Dividends declared per common share $ 0.70 $ 0.70 $ 0.70 $ 0.70 $ 0.67 $ 0.67 $ 0.67 $ 0.67 |
SCHEDULE I - Consolidated Summa
SCHEDULE I - Consolidated Summary of Investments Other Than Investments in Related Parties | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Summary of Investments, Other than Investments in Related Parties [Text Block] | Type of investment Cost (1) (2) Fair Value (2) Amount at which shown in the balance sheet (2) Fixed maturities U.S. government and government sponsored enterprises $ 2,887,000 $ 2,872,845 $ 2,872,845 U.S. states, territories and municipalities 743,413 778,326 778,326 Non-U.S. sovereign government, supranational and government related 1,271,416 1,332,925 1,332,925 Corporate 5,035,006 5,086,199 5,086,199 Asset-backed securities 1,040,144 1,037,816 1,037,816 Residential mortgage-backed securities 2,287,173 2,290,640 2,290,640 Other mortgage-backed securities 49,667 49,511 49,511 Fixed maturities 13,313,819 13,448,262 13,448,262 Equities Banks, trust and insurance companies 89,934 137,704 137,704 Public utilities 8,501 7,796 7,796 Industrial, miscellaneous and all other 319,993 298,361 298,361 Equities 418,428 443,861 443,861 Short-term investments 46,689 46,688 46,688 Other invested assets (3) 190,899 190,899 Total $ 14,129,710 $ 14,129,710 (1) Original cost of fixed maturities reduced by repayments and adjusted for amortization of premiums or accrual of discounts. Original cost of equity securities. (2) Excludes the investment portfolio underlying the funds held – directly managed account. While the net investment income and net realized and unrealized gains and losses inure to the benefit of the Company, the Company does not legally own the investments. (3) Other invested assets excludes the Company’s investments accounted for using the cost method of accounting and the equity method of accounting of $208 million . |
SCHEDULE II - Condensed Financi
SCHEDULE II - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | PartnerRe Ltd. Condensed Balance Sheets—Parent Company Only (Expressed in thousands of U.S. dollars, except parenthetical share and per share data) December 31, 2015 December 31, 2014 Assets Fixed maturities, at fair value (amortized cost: 2015, $254,486) $ 252,538 $ — Cash and cash equivalents 94,835 371 Investments in subsidiaries 8,187,691 8,242,199 Intercompany loans and balances receivable 605,697 675,408 Other 2,955 2,476 Total assets $ 9,143,716 $ 8,920,454 Liabilities Intercompany loans and balances payable (1) $ 2,211,106 $ 1,845,690 Accounts payable, accrued expenses and other 32,109 25,854 Total liabilities 2,243,215 1,871,544 Shareholders’ Equity Common shares (par value $1.00; issued: 2015 and 2014, 87,237,220 shares) 87,237 87,237 Preferred shares (par value $1.00; issued and outstanding: 2015 and 2014, 34,150,000 shares; aggregate liquidation value: 2015 and 2014, $853,750) 34,150 34,150 Additional paid-in capital 3,982,147 3,949,665 Accumulated other comprehensive loss (83,283 ) (34,083 ) Retained earnings 6,146,802 6,270,811 Common shares held in treasury, at cost (2015, 39,303,068 shares; 2014, 39,400,936 shares) (3,266,552 ) (3,258,870 ) Total shareholders’ equity attributable to PartnerRe Ltd. 6,900,501 7,048,910 Total liabilities and shareholders’ equity attributable to PartnerRe Ltd. $ 9,143,716 $ 8,920,454 (1) The parent has fully and unconditionally guaranteed on a subordinated basis all obligations of PartnerRe Finance II Inc., an indirect 100% owned finance subsidiary of the parent, related to the remaining $63.4 million aggregate principal amount of 6.440% Fixed-to-Floating Rate Junior Subordinated Capital Efficient Notes (CENts). The parent’s obligations under this guarantee are unsecured and rank junior in priority of payments to the parent’s Senior Notes. The parent has fully and unconditionally guaranteed all obligations of PartnerRe Finance A and PartnerRe Finance B, indirect 100% owned finance subsidiaries of the parent, related to the issuance of $250 million aggregate principal amount of 6.875% Senior Notes and $500 million aggregate principal amount of 5.500% Senior Notes. The parent’s obligations under these guarantees are senior and unsecured and rank equally with all other senior unsecured indebtedness of the parent. PartnerRe Ltd. Condensed Statements of Operations and Comprehensive Income—Parent Company Only (Expressed in thousands of U.S. dollars) For the year ended December 31, 2015 For the year ended December 31, 2014 For the year ended December 31, 2013 Revenues Net investment income $ 3,516 $ — $ 18 Interest income on intercompany loans 12,295 14,669 11,039 Net realized and unrealized investment losses (1,104 ) — — Total revenues 14,707 14,669 11,057 Expenses Other expenses (1) 435,404 58,076 91,800 Interest expense on intercompany loans 6,243 1,696 1,867 Net foreign exchange (gains) losses (3,199 ) (3,192 ) 9,895 Total expenses 438,448 56,580 103,562 Loss before equity in net income of subsidiaries (423,741 ) (41,911 ) (92,505 ) Equity in net income of subsidiaries 528,122 1,096,885 756,513 Net income attributable to PartnerRe Ltd. 104,381 1,054,974 664,008 Preferred dividends 56,735 56,735 57,861 Loss on redemption of preferred shares — — 9,135 Net income attributable to PartnerRe Ltd. common shareholders $ 47,646 $ 998,239 $ 597,012 Comprehensive income Net income attributable to PartnerRe Ltd. $ 104,381 $ 1,054,974 $ 664,008 Total other comprehensive loss, net of tax (49,200 ) (21,845 ) (22,835 ) Comprehensive income attributable to PartnerRe Ltd. $ 55,181 $ 1,033,129 $ 641,173 (1) Other expenses for the year ended December 31, 2015 include the AXIS Termination Fee of $315 million and Transaction Costs of $63 million . PartnerRe Ltd. Condensed Statements of Cash Flows—Parent Company Only (Expressed in thousands of U.S. dollars) For the year ended December 31, 2015 For the year ended December 31, 2014 For the year ended December 31, 2013 Cash flows from operating activities Net income attributable to PartnerRe Ltd. $ 104,381 $ 1,054,974 $ 664,008 Adjustments to reconcile net income to net cash used in operating activities: Equity in net income of subsidiaries (528,122 ) (1,096,885 ) (756,513 ) Other, net 32,725 33,598 27,397 Net cash used in operating activities (391,016 ) (8,313 ) (65,108 ) Cash flows from investing activities Advances to/from subsidiaries, net 97,532 (12,635 ) 666,444 Net issue of intercompany loans receivable and payable 5,955 2,500 14,473 Sales and redemptions of fixed maturities 16,818 — — Purchases of fixed maturities (3) (25,758 ) — — Dividends received from subsidiaries 418,789 — — Other, net 13,292 60 196 Net cash provided by (used in) investing activities 526,628 (10,075 ) 681,113 Cash flows from financing activities Cash dividends paid to common and preferred shareholders (2) (47,582 ) — (103,311 ) Repurchase of common shares (2) — — (546,617 ) Reissuance of treasury shares and issuance of common shares, net of taxes paid 7,996 16,785 51,111 Net proceeds from issuance of preferred shares — — 241,265 Redemption of preferred shares — — (290,000 ) Net cash (used in) provided by financing activities (39,586 ) 16,785 (647,552 ) Effect of foreign exchange rate changes on cash (1,562 ) 688 2,461 Increase (decrease) in cash and cash equivalents 94,464 (915 ) (29,086 ) Cash and cash equivalents—beginning of year 371 1,286 30,372 Cash and cash equivalents—end of year $ 94,835 $ 371 $ 1,286 Supplemental cash flow information: Interest paid $ — $ — $ 1,528 (1) The parent received non-cash dividends from its subsidiaries of $300 million , $833 million and $1,100 million for the years ended December 31, 2015 , 2014 and 2013 , respectively, which have been excluded from the Condensed Statements of Cash Flows—Parent Company Only. (2) During the years ended December 31, 2015 , 2014 and 2013 , dividends paid to common and preferred shareholders of $143 million , $191 million and $97 million , respectively, and the repurchase of common shares of $71 million , $547 million and $169 million , respectively, were paid by a subsidiary on behalf of the parent and have been excluded from the Condensed Statements of Cash Flows—Parent Company Only. (3) During the year ended December 31, 2015 , the parent received $248 million of fixed maturities from its subsidiaries, which has been excluded from the Condensed Statements of Cash Flows—Parent Company Only. (4) During the year ended December 31, 2015 , the parent purchased a subsidiary from another subsidiary for $191 million in exchange for an intercompany loan payable. These transactions have been excluded from the Condensed Statements of Cash Flows—Parent Company Only. |
SCHEDULE III - Supplementary In
SCHEDULE III - Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2015 | |
Supplementary Insurance Information [Abstract] | |
Supplementary Insurance Information, for Insurance Companies Disclosure [Text Block] | PartnerRe Ltd. Supplementary Insurance Information For the years ended December 31, 2015 , 2014 and 2013 (Expressed in thousands of U.S. dollars) Deferred Policy Acquisition Costs Gross Reserves Unearned Premiums Other Benefits Payable Premium Revenue Net Investment Income (1) Losses Incurred Amortization of DAC Other Expenses (2) (3) Premiums Written 2015 Non-life $ 449,216 $ 9,064,711 $ 1,629,537 $ — $ 4,059,665 $ N/A $ 2,193,449 $ 1,063,693 $ 218,319 $ 4,022,067 Life and Health 180,156 — 15,220 2,051,935 1,209,513 58,537 964,421 153,318 63,451 321,278 Corporate and Other — — — — — 391,247 (450 ) (8 ) 508,953 — Total $ 629,372 $ 9,064,711 $ 1,644,757 $ 2,051,935 $ 5,269,178 $ 449,784 $ 3,157,420 $ 1,217,003 $ 790,723 $ 4,343,345 2014 Non-life $ 463,958 $ 9,745,806 $ 1,731,212 $ — $ 4,387,406 $ N/A $ 2,462,568 $ 1,065,117 $ 252,322 $ 4,500,214 Life and Health 197,228 — 19,395 2,050,107 1,221,751 60,369 1,000,202 148,689 67,811 265,693 Corporate and Other — — — — 38 419,327 — 16 129,555 — Total $ 661,186 $ 9,745,806 $ 1,750,607 $ 2,050,107 $ 5,609,195 $ 479,696 $ 3,462,770 $ 1,213,822 $ 449,688 $ 4,765,907 2013 Non-life $ 434,109 $ 10,646,318 $ 1,699,393 $ — $ 4,234,850 $ N/A $ 2,399,867 $ 952,570 $ 258,997 $ 4,426,719 Life and Health 210,841 — 24,337 1,974,133 957,146 60,897 760,552 124,631 71,092 123,936 Corporate and Other 2 — 37 — 6,214 423,470 (2,611 ) 427 170,377 6,110 Total $ 644,952 $ 10,646,318 $ 1,723,767 $ 1,974,133 $ 5,198,210 $ 484,367 $ 3,157,808 $ 1,077,628 $ 500,466 $ 4,556,765 (1) Because the Company does not manage its assets by segment, net investment income is not allocated to the Non-life segment of the reinsurance operations. However, because of the interest-sensitive nature of some of the Company’s Life products, net investment income is considered in Management’s assessment of the profitability of the Life and Health segment. (2) Other expenses are a component of underwriting result for the Non-life and Life and Health segments. Other expenses included in Corporate and Other represent corporate expenses and other expenses related to the Company’s principal finance transactions, insurance-linked securities and strategic investments. (3) Other expenses for the year ended December 31, 2015 include the AXIS Termination Fee and Transaction Costs. |
SCHEDULE IV - Reinsurance
SCHEDULE IV - Reinsurance | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | |
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Text Block] | PartnerRe Ltd. Reinsurance For the years ended December 31, 2015 , 2014 and 2013 (Expressed in thousands of U.S. dollars) Gross amount Ceded to other companies Assumed from other companies Net amount Percentage of amount assumed to net 2015 Life reinsurance in force $ — $ 2,189,254 $ 180,825,066 $ 178,635,812 101 % Premiums earned Life — 4,802 873,854 869,052 101 % Accident and health 89,535 57,978 308,904 340,461 91 % Property and casualty 163,042 238,363 4,134,986 4,059,665 102 % Total premiums $ 252,577 $ 301,143 $ 5,317,744 $ 5,269,178 101 % 2014 Life reinsurance in force $ — $ 2,322,845 $ 198,284,805 $ 195,961,960 101 % Premiums earned Life — 5,031 943,054 938,023 101 % Accident and health 66,090 40,065 257,703 283,728 91 % Property and casualty 143,389 170,107 4,414,162 4,387,444 101 % Total premiums $ 209,479 $ 215,203 $ 5,614,919 $ 5,609,195 100 % 2013 Life reinsurance in force $ — $ 1,629,920 $ 211,247,212 $ 209,617,292 101 % Premiums earned Life — 5,000 821,737 816,737 101 % Accident and health — 2,912 143,321 140,409 102 % Property and casualty 93,091 167,744 4,315,717 4,241,064 102 % Total premiums $ 93,091 $ 175,656 $ 5,280,775 $ 5,198,210 102 % |
SCHEDULE VI - Supplemental Info
SCHEDULE VI - Supplemental Information Concerning Property-Casualty Insurance Operations | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Information for Property, Casualty Insurance Underwriters [Abstract] | |
Schedule of Supplemental Information for Property, Casualty Insurance Underwriters [Text Block] | PartnerRe Ltd. Supplemental Information Concerning Property-Casualty Insurance Operations For the years ended December 31, 2015 , 2014 and 2013 (Expressed in thousands of U.S. dollars) Affiliation with Registrant Deferred Policy Acquisition Costs Liability for Unpaid Losses and Loss Expenses Unearned Premiums Premiums Earned Losses and Loss Expenses Incurred Amortization of Deferred Policy Acquisition Costs Paid Losses and Loss Expenses Premiums Written Consolidated subsidiaries 2015 $ 449,216 $ 9,064,711 $ 1,629,537 $ 4,059,665 $ 2,192,999 $ 1,063,685 $ 2,422,603 $ 4,022,067 2014 463,958 9,745,806 1,731,212 4,387,444 2,462,568 1,065,133 2,798,549 4,500,214 2013 434,111 10,646,318 1,699,430 4,241,064 2,397,256 952,997 2,401,559 4,432,829 |
Significant Accounting Polici36
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure - Significant Accounting Policies [Abstract] | |
Basis of accounting | The Company’s Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP). The Consolidated Financial Statements include the accounts of the Company and its subsidiaries. Intercompany accounts and transactions have been eliminated. To facilitate comparison of information across periods, certain reclassifications have been made to prior period amounts to conform to the current year's presentation. |
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 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. |
Premiums | (a) Premiums Gross premiums written and earned are based upon reports received from ceding companies, supplemented by the Company’s own estimates of premiums written and earned for which ceding company reports have not been received. The determination of premium estimates requires a review of the Company’s experience with cedants, familiarity with each market, an understanding of the characteristics of each line of business and Management’s assessment of the impact of various other factors on the volume of business written and ceded to the Company. Premium estimates are updated as new information is received from cedants and differences between such estimates and actual amounts are recorded in the period in which the estimates are changed or the actual amounts are determined. Net premiums written and earned are presented net of ceded premiums, which represent the cost of retrocessional protection purchased by the Company. Premiums are earned on a basis that is consistent with the risks covered under the terms of the reinsurance contracts, which is generally one to two years. For U.S. and European wind and certain other risks, premiums are earned commensurate with the seasonality of the underlying exposure. Reinstatement premiums are recognized as written and earned at the time a loss event occurs, where coverage limits for the remaining life of the contract are reinstated under pre-defined contract terms. The accrual of reinstatement premiums is based on Management’s estimate of losses and loss expenses associated with the loss event. Unearned premiums represent the portion of premiums written which is applicable to the unexpired risks under contracts in force. Premiums related to individual life and annuity business are recorded over the premium-paying period on the underlying policies. Premiums on annuity and universal life contracts for which there is no significant mortality or critical illness risk are accounted for in a manner consistent with accounting for interest-bearing financial instruments and are not reported as revenues, but rather as direct deposits to the contract. Amounts assessed against annuity and universal life policyholders are recognized as revenue in the period assessed. |
Losses and Loss Expenses | (b) Losses and Loss Expenses and Life Policy Benefits The liability for unpaid losses and loss expenses includes amounts determined from loss reports on individual treaties (case reserves), additional case reserves when the Company’s loss estimate is higher than reported by the cedants (ACRs) and amounts for losses incurred but not yet reported to the Company (IBNR). Such reserves are estimated by Management based upon reports received from ceding companies, supplemented by the Company’s own actuarial estimates of reserves for which ceding company reports have not been received, and based on the Company’s own historical experience. To the extent that the Company’s own historical experience is inadequate for estimating reserves, such estimates may be determined based upon industry experience and Management’s judgment. The estimates are continually reviewed and the ultimate liability may be in excess of, or less than, the amounts provided. Any adjustments are reflected in the periods in which they are determined, which may affect the Company’s operating results in future periods. |
Life Policy Benefits | The liabilities for policy benefits for ordinary life and accident and health policies have been established based upon information reported by ceding companies, supplemented by the Company’s actuarial estimates of mortality, critical illness, persistency and future investment income, with appropriate provision to reflect uncertainty. Future policy benefit reserves for annuity and universal life contracts are carried at their accumulated values. Reserves for policy claims and benefits include both mortality and critical illness claims in the process of settlement, and claims that have been incurred but not yet reported. |
Reinsurance Accounting | The Company purchases retrocessional contracts to reduce its exposure to risk of losses on reinsurance assumed. Reinsurance recoverable on paid and unpaid losses involves actuarial estimates consistent with those used to establish the associated liabilities for unpaid losses and loss expenses and life policy benefits. |
Deferred Acquisition Costs | (c) Deferred Acquisition Costs Acquisition costs, comprising only incremental brokerage fees, commissions and excise taxes, which vary directly with, and are related to, the acquisition of reinsurance contracts, are capitalized and charged to expense as the related premium is earned. All other acquisition related costs, including all indirect costs, are expensed as incurred. Acquisition costs related to individual life and annuity contracts are deferred and amortized over the premium-paying periods in proportion to anticipated premium income, allowing for lapses, terminations and anticipated investment income. Acquisition costs related to universal life and single premium annuity contracts for which there is no significant mortality or critical illness risk are deferred and amortized over the lives of the contracts as a percentage of the estimated gross profits expected to be realized on the contracts. Actual and anticipated losses and loss expenses, other costs and investment income related to underlying premiums are considered in determining the recoverability of deferred acquisition costs related to the Company’s Non-life business. Actual and anticipated loss experience, together with the present value of future gross premiums, the present value of future benefits, settlement and maintenance costs are considered in determining the recoverability of deferred acquisition costs related to the Company’s Life business. |
Funds Held by Reinsured Companies (Cedants) | (d) Funds Held by Reinsured Companies (Cedants) The Company writes certain business on a funds held basis. Under such contractual arrangements, the cedant retains the premiums that would have otherwise been paid to the Company and the Company earns interest on these funds. With the exception of those arrangements discussed below, the Company generally earns investment income on the funds held balances based upon a predetermined interest rate, either fixed contractually at the inception of the contract or based upon a recognized index (e.g., LIBOR). In certain circumstances, the Company may receive an investment return based upon either the result of a pool of assets held by the cedant, generally used to collateralize the funds held balance, or the investment return earned by the cedant on its entire investment portfolio. In these arrangements, gross investment returns are typically reflected in net investment income with a corresponding increase or decrease (net of a spread) being recorded as life policy benefits in the Company’s Consolidated Statements of Operations. In these arrangements, the Company is exposed, to a limited extent, to the underlying credit risk of the pool of assets inasmuch as the underlying life policies may have guaranteed minimum returns. In such cases, an embedded derivative exists and its fair value is recorded by the Company as an increase or decrease to the funds held balance. |
Deposit Assets and Liabilities | (e) Deposit Assets and Liabilities In the normal course of its operations, the Company writes certain contracts that do not meet the risk transfer provisions of U.S. GAAP. While these contracts do not meet risk transfer provisions for accounting purposes, there is a remote possibility that the Company will suffer a loss. The Company accounts for these contracts using the deposit accounting method, originally recording deposit liabilities for an amount equivalent to the consideration received. The consideration to be retained by the Company, irrespective of the experience of the contracts, is earned over the expected settlement period of the contracts, with any unearned portion recorded as a component of deposit liabilities. Actuarial studies are used to estimate the final liabilities under these contracts and the appropriate accretion rates to increase or decrease the liabilities over the term of the contracts. The change for the period is recorded in other income or loss in the Consolidated Statements of Operations. Under some of these contracts, cedants retain the assets on a funds-held basis. In those cases, the Company records those assets as deposit assets and records the related income in net investment income in the Consolidated Statements of Operations. |
Investments | (f) Investments The Company elects the fair value option for all of its fixed maturities, short-term investments, equities and certain other invested assets (excluding those that are accounted for using the cost or equity methods of accounting). All changes in the fair value of investments are recorded in net realized and unrealized investment gains and losses in the Consolidated Statements of Operations. The Company defines fair value as the price received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company measures the fair value of financial instruments according to a fair value hierarchy that prioritizes the information used to measure fair value into three broad levels. The Company’s policy is to recognize transfers between the hierarchy levels at the beginning of the period. See Note 3 for additional information on fair value. Short-term investments comprise securities with a maturity greater than three months but less than one year from the date of purchase. Other invested assets consist primarily of investments in non-publicly traded companies, private placement equity and fixed maturity investments, derivative financial instruments and other specialty asset classes. Non-publicly traded entities in which the Company has an ownership of more than 20% and less than 50% of the voting shares, and limited partnerships in which the Company has more than a minor interest, are accounted for using either the equity method or the fair value option. The remaining other invested assets are recorded based on valuation techniques depending on the nature of the individual assets. The valuation techniques used by the Company are generally commensurate with standard valuation techniques for each asset class. Net investment income includes interest and dividend income, amortization of premiums and discounts on fixed maturities and short-term investments and investment income on funds held and funds held – directly managed, and is net of investment expenses and withholding taxes. Investment income is recognized when earned. Realized gains and losses on the disposal of investments are determined on a first-in, first-out basis. Investment purchases and sales are recorded on a trade-date basis. |
Funds Held - Directly Managed | (g) Funds Held – Directly Managed The Company elects the fair value option for substantially all of the fixed maturities, short-term investments and certain other invested assets in the segregated investment portfolio underlying the funds held – directly managed account. Accordingly, all changes in the fair value of the segregated investment portfolio underlying the funds held – directly managed account are recorded in net realized and unrealized investment gains and losses in the Consolidated Statements of Operations. |
Cash and Cash Equivalents | (h) Cash and Cash Equivalents Cash equivalents are carried at fair value and include fixed income securities that, at purchase, have a maturity of three months or less. |
Business Combinations | (i) Business Combinations The Company accounts for transactions in which it obtains control over one or more businesses using the acquisition method. The purchase price is allocated to identifiable assets and liabilities, including any intangible assets, based on their estimated fair value at the acquisition date. The estimates of fair values for assets and liabilities acquired are determined based on various market and income analyses and appraisals. Any excess of the purchase price over the fair value of net assets acquired is recorded as goodwill in the Company’s Consolidated Balance Sheets. All costs associated with an acquisition are expensed as incurred. |
Goodwill | (j) Goodwill Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in a business combination. The Company assesses the appropriateness of its valuation of goodwill on at least an annual basis or more frequently if events or changes in circumstances indicate that the carrying amount may not be recoverable. If, as a result of the assessment, the Company determines that the value of its goodwill is impaired, goodwill will be written down in the period in which the determination is made. |
Intangible Assets | (k) Intangible Assets Intangible assets represent the fair value adjustments related to unpaid losses and loss expenses and the fair values of renewal rights, customer relationships and U.S. licenses arising from acquisitions. Definite-lived intangible assets are amortized over their useful lives. The Company recognizes the amortization of all definite-lived intangible assets in the Consolidated Statement of Operations. Indefinite-lived intangible assets are not subject to amortization. The carrying values of indefinite-lived intangible assets are reviewed for indicators of impairment on at least an annual basis or more frequently if events or changes in circumstances indicate that impairment may exist. Impairment is recognized if the carrying values of the intangible assets are not recoverable from their undiscounted cash flows and is measured as the difference between the carrying value and the fair value. |
Income Taxes | (l) Income Taxes Certain subsidiaries and branches of the Company operate in jurisdictions where they are subject to taxation. Current and deferred income taxes are charged or credited to net income or loss or, in certain cases, to accumulated other comprehensive income or loss, based upon enacted tax laws and rates applicable in the relevant jurisdiction in the period in which the tax becomes accruable or realizable. Deferred income taxes are provided for all temporary differences between the bases of assets and liabilities used in the Consolidated Balance Sheets and those used in the various jurisdictional tax returns. When Management’s assessment indicates that it is more likely than not that deferred tax assets will not be realized, a valuation allowance is recorded against the deferred tax assets. The Company recognizes a tax benefit relating to uncertain tax positions only where the position is more likely than not to be sustained assuming examination by tax authorities. A liability is recognized for any tax benefit (along with any interest and penalty, if applicable) claimed in a tax return in excess of the amount recognized in the financial statements under U.S. GAAP. Any changes in amounts recognized are recorded in the period in which they are determined. |
Translation of Foreign Currencies | (m) Translation of Foreign Currencies The reporting currency of the Company is the U.S. dollar. The national currencies of the Company’s subsidiaries and branches are generally their functional currencies, except for the Company’s Bermuda subsidiaries, its Swiss branch and its Singapore subsidiary and branches, whose functional currency is the U.S. dollar. In translating the financial statements of those subsidiaries or branches whose functional currency is other than the U.S. dollar, assets and liabilities are converted into U.S. dollars using the rates of exchange in effect at the balance sheet dates, and revenues and expenses are converted using the average foreign exchange rates for the period. The effect of translation adjustments are reported in the Consolidated Balance Sheets as currency translation adjustment, a separate component of accumulated other comprehensive income or loss. In recording foreign currency transactions, revenue and expense items are converted into the functional currency at the average rates of exchange for the period. Assets and liabilities originating in currencies other than the functional currency are translated into the functional currency at the rates of exchange in effect at the balance sheet dates. The resulting foreign exchange gains or losses are included in net foreign exchange gains or losses in the Consolidated Statements of Operations. The Company also records realized and unrealized foreign exchange gains and losses on certain hedged items in net foreign exchange gains or losses in the Consolidated Statements of Operations (see Note 2(n)). |
Derivatives | (n) Derivatives Derivatives Used in Hedging Activities The Company utilizes derivative financial instruments as part of its overall currency risk management strategy. The Company recognizes all derivative financial instruments, including embedded derivative instruments, as either assets or liabilities in the Consolidated Balance Sheets and measures those instruments at fair value. On the date the Company enters into a derivative contract, Management designates whether the derivative is to be used as a hedge of an identified underlying exposure (a designated hedge). The accounting for gains and losses associated with changes in the fair value of a derivative and the effect on the Consolidated Financial Statements depends on its hedge designation and whether the hedge is highly effective in achieving offsetting changes in the fair value of the asset or liability being hedged. The derivatives employed by the Company to hedge currency exposure related to fixed income securities and other reinsurance assets and liabilities are not designated as hedges. The changes in fair value of these derivatives not designated as hedges are recognized in net foreign exchange gains and losses in the Consolidated Statements of Operations. As part of its overall strategy to manage its level of currency exposure, from time to time the Company uses forward foreign exchange derivatives to hedge or partially hedge the net investment in certain subsidiaries and branches whose functional currencies are not the U.S. dollar. These derivatives are designated as net investment hedges, and accordingly, the changes in fair value of the derivative and the hedged item related to foreign currency are recognized in currency translation adjustment in the Consolidated Balance Sheets. The Company also uses, from time to time, interest rate derivatives to mitigate exposure to interest rate volatility. The Company formally documents all relationships between designated hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking various hedge transactions. In this documentation, the Company specifically identifies the asset or liability that has been designated as a hedged item and states how the hedging instrument is expected to hedge the risks related to the hedged item. The Company formally measures effectiveness of its designated hedging relationships both at the hedge inception and on an ongoing basis. The Company assesses the effectiveness of its designated hedges using the period-to-period dollar offset method on an individual currency basis. If the ratio obtained with this method is within the range of 80% to 125%, the Company considers the hedge effective. The time value component of the designated net investment hedges is included in the assessment of hedge effectiveness. The Company will discontinue hedge accounting prospectively if it is determined that the derivative is no longer effective in offsetting changes in the fair value of a hedged item. To the extent that the Company discontinues hedge accounting related to its net investment in subsidiaries and branches whose functional currencies are not the U.S. dollar, because, based on Management’s assessment, the derivative no longer qualifies as an effective hedge, the derivative will continue to be carried in the Consolidated Balance Sheets at its fair value, with changes in its fair value recognized in net foreign exchange gains and losses. Other Derivatives The Company’s investment strategy allows for the use of derivative instruments, subject to strict limitations. The Company utilizes various derivative instruments such as foreign exchange forward contracts, foreign currency option contracts, futures contracts, to-be-announced mortgage-backed securities (TBAs) and credit default swaps for the purpose of managing overall currency risk, market exposures and portfolio duration, for hedging certain investments, or for enhancing investment performance that would be allowed under the Company’s investment policy if implemented in other ways. These instruments are recorded at fair value as assets and liabilities in the Consolidated Balance Sheets. Changes in fair value are included in net realized and unrealized investment gains or losses in the Consolidated Statements of Operations, except changes in the fair value of foreign currency option contracts and foreign exchange forward contracts which are included in net foreign exchange gains or losses in the Consolidated Statements of Operations. Margin balances required by counterparties, which are equal to a percentage of the total value of open futures contracts, are included in cash and cash equivalents. The Company enters from time to time into weather and longevity related transactions that are structured as derivatives, which are recorded at fair value with the changes in fair value reported in net realized and unrealized investment gains and losses in the Consolidated Statements of Operations. The Company enters from time to time into total return and interest rate swaps. Margins related to these swaps are included in other income or loss in the Consolidated Statements of Operations and any changes in the fair value of the swaps are included in net realized and unrealized investment gains and losses in the Consolidated Statements of Operations. |
Treasury Shares | (o) Treasury Shares Common shares repurchased by the Company and not canceled are classified as treasury shares, and are recorded at cost. This results in a reduction of shareholders’ equity in the Consolidated Balance Sheets. When shares are reissued from treasury, the Company uses the average cost method to determine the cost of the reissued shares. Gains on sales of treasury shares are credited to additional paid-in capital, while losses are charged to additional paid-in capital to the extent that previous net gains from sales of treasury shares are included therein, otherwise losses are charged to retained earnings. |
Net Income or Loss per Common Share | (p) Net Income or Loss per Common Share Diluted net income or loss per common share is defined as net income or loss attributable to PartnerRe Ltd. common shareholders divided by the weighted average number of common shares and common share equivalents outstanding, calculated using the treasury stock method for all potentially dilutive securities. Net income or loss attributable to PartnerRe Ltd. common shareholders is defined as net income or loss attributable to PartnerRe Ltd. less preferred share dividends. When the effect of dilutive securities would be anti-dilutive, these securities are excluded from the calculation of diluted net income or loss per share. Basic net income or loss per share is defined as net income or loss attributable to PartnerRe Ltd. common shareholders divided by the weighted average number of common shares outstanding for the period, giving no effect to dilutive securities. |
Share-Based Compensation | (q) Share-Based Compensation The Company uses six types of share-based compensation: share options, restricted shares (RS), restricted share units (RSUs), performance-based RSUs (PSUs), share-settled share appreciation rights (SSARs) and shares issued under the Company’s employee share purchase plans. The majority of the Company’s share-based compensation awards qualify for equity classification. The fair value of the compensation cost is measured at the grant date and is expensed over the period for which the employee is required to provide services in exchange for the award. Awards of PSUs provide performance-based equity awards based on pre-established targets relating to certain performance measures achieved by the Company. The compensation expense for PSUs is initially based on the target performance measure at the time of award and is subject to periodic review and adjustment based on expected actual performance. Forfeiture benefits on all awards are estimated at the time of grant and incorporated in the determination of share-based compensation costs. Awards granted to employees who are eligible for retirement and do not have to provide additional services are expensed at the date of grant. Those share-based compensation awards that do not meet the equity classification criteria are classified as liability awards. Liability-classified awards are recorded at fair value in the Accounts payable, accrued expenses and other in the Consolidated Balance Sheets with changes in fair value relating to the vested portion of the award recorded within Other expenses in the Consolidated Statements of Operations. |
Pensions | (r) Pensions The Company recognizes an asset or a liability in the Consolidated Balance Sheets for the funded status of its defined benefit plans that are overfunded or underfunded, respectively, measured as the difference between the fair value of plan assets and the pension obligation and recognizes changes in the funded status of defined benefit plans in the year in which the changes occur as a component of accumulated other comprehensive income or loss, net of tax. |
Variable Interest Entities and Noncontrolling Interests | (s) Variable Interest Entities and Noncontrolling Interests The Company is involved in the normal course of business with variable interest entities (VIEs) including certain limited partnerships, trusts, fixed maturity investments and asset-backed securities. The Company performs a qualitative assessment at the date when it becomes initially involved in the VIE followed by ongoing reassessments related to its involvement in VIEs. The Company’s maximum exposure to loss with respect to these investments is limited to the amounts invested in and advanced to the VIEs that are reported within fixed maturities and other invested assets in the Company’s Consolidated Balance Sheets and any unfunded commitments. The Company also has three indirect 100% owned subsidiaries, PartnerRe Finance A LLC, PartnerRe Finance B LLC and PartnerRe Finance II Inc., that are considered to be VIEs, which were utilized to issue the Company’s debt related to senior notes (Senior Notes) and Capital Efficient Notes (CENts). The Company determined that it was not the primary beneficiary of any of these VIEs at December 31, 2015 . As a result, the Company has not consolidated PartnerRe Finance A LLC, PartnerRe Finance B LLC and PartnerRe Finance II Inc., and has reflected the debt issued by the Company related to the Senior Notes and CENts as liabilities in the Consolidated Balance Sheets (see Note 10). The interest on the debt related to the Senior Notes and CENts is reported as interest expense in the Consolidated Statements of Operations. |
Segment Reporting | (t) Segment Reporting The Company monitors the performance of its operations in three segments, Non-life, Life and Health and Corporate and Other. The Non-life segment is further divided into four sub-segments: North America, Global (Non-U.S.) Property and Casualty (Global (Non-U.S.) P&C), Global Specialty and Catastrophe. Segments and sub-segments represent markets that are reasonably homogeneous in terms of geography, client types, buying patterns, underlying risk patterns or approach to risk management. |
Recent Accounting Pronouncements | (u) Recent Accounting Pronouncements In February 2015, the Financial Accounting Standards Board (FASB) issued updated guidance on the consolidation of voting interest entities and variable interest entities. The update requires entities to reevaluate whether they should consolidate certain legal entities. The guidance is effective for interim and annual periods beginning after December 15, 2015, with early adoption permitted. The adoption of this guidance on January 1, 2016 did not have a significant impact on the Company's Consolidated Financial Statements and disclosures. In May 2015, the FASB issued updated guidance on disclosures related to short-duration insurance contracts. The update expands required disclosures to increase the transparency of significant estimates made in measuring the liability for unpaid losses and loss expenses, improve comparability and facilitate financial statement users' analysis of the cash flows arising from re/insurance contracts and the development of loss reserve estimates. The guidance is effective for annual periods beginning after December 15, 2015 and interim periods within annual periods beginning after December 15, 2016, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this guidance on its disclosures. In May 2015, the FASB issued updated guidance on disclosures for investments in certain entities that calculate net asset value (NAV) per share (or its equivalent). The update eliminates the requirement to categorize investments measured using the NAV practical expedient in the fair value hierarchy table. The guidance is applicable retrospectively and is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods, with early adoption permitted. The adoption of this guidance did not have a significant impact on the Company's Consolidated Financial Statements and disclosures. |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Financial instruments measured at fair value and categorized between Levels 1, 2 and 3 | At December 31, 2015 and 2014 , 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): December 31, 2015 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Total Fixed maturities U.S. government and government sponsored enterprises $ — $ 2,872,845 $ — $ 2,872,845 U.S. states, territories and municipalities — 639,479 138,847 778,326 Non-U.S. sovereign government, supranational and government related — 1,332,925 — 1,332,925 Corporate — 5,086,199 — 5,086,199 Asset-backed securities — 668,117 369,699 1,037,816 Residential mortgage-backed securities — 2,290,640 — 2,290,640 Other mortgage-backed securities — 49,511 — 49,511 Fixed maturities $ — $ 12,939,716 $ 508,546 $ 13,448,262 Short-term investments $ — $ 46,688 $ — $ 46,688 Equities Insurance $ 72,226 $ 7,799 $ — $ 80,025 Finance 29,422 5,497 22,760 57,679 Real estate investment trusts 46,379 — — 46,379 Consumer noncyclical 43,375 — — 43,375 Industrials 26,863 7,401 — 34,264 Technology 21,177 — 8,207 29,384 Consumer cyclical 25,871 — — 25,871 Communications 20,939 — 1,985 22,924 Other 28,197 — — 28,197 Mutual funds and exchange traded funds 71,159 — 4,604 75,763 Equities $ 385,608 $ 20,697 $ 37,556 $ 443,861 Other invested assets Derivative assets Foreign exchange forward contracts $ — $ 15,311 $ — $ 15,311 Futures contracts 5,675 — — 5,675 Insurance-linked securities — — 9,428 9,428 Total return swaps — — 2,745 2,745 Other Notes and loan receivables and notes securitization — — 125,922 125,922 Annuities and residuals — — 8,436 8,436 Private equities — — 71,298 71,298 Derivative liabilities Foreign exchange forward contracts — (15,109 ) — (15,109 ) Futures contracts (140 ) — — (140 ) Insurance-linked securities — — (3,944 ) (3,944 ) Total return swaps — — (2,878 ) (2,878 ) Interest rate swaps — (24,383 ) — (24,383 ) TBAs — (1,462 ) — (1,462 ) Other invested assets $ 5,535 $ (25,643 ) $ 211,007 $ 190,899 Funds held – directly managed U.S. government and government sponsored enterprises $ — $ 169,951 $ — $ 169,951 Non-U.S. sovereign government, supranational and government related — 119,487 — 119,487 Corporate — 99,349 — 99,349 Short-term investments — 966 — 966 Other invested assets — — 10,146 10,146 Funds held – directly managed $ — $ 389,753 $ 10,146 $ 399,899 Total $ 391,143 $ 13,371,211 $ 767,255 $ 14,529,609 December 31, 2014 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Total Fixed maturities U.S. government and government sponsored enterprises $ — $ 2,315,422 $ — $ 2,315,422 U.S. states, territories and municipalities — 380,875 149,728 530,603 Non-U.S. sovereign government, supranational and government related — 1,976,202 — 1,976,202 Corporate — 5,604,160 — 5,604,160 Asset-backed securities — 681,502 449,918 1,131,420 Residential mortgage-backed securities — 2,306,476 — 2,306,476 Other mortgage-backed securities — 54,462 — 54,462 Fixed maturities $ — $ 13,319,099 $ 599,646 $ 13,918,745 Short-term investments $ — $ 25,678 $ — $ 25,678 Equities Real estate investment trusts $ 213,770 $ — $ — $ 213,770 Insurance 140,916 4,521 — 145,437 Energy 123,978 — — 123,978 Consumer noncyclical 100,134 — — 100,134 Finance 70,621 7,354 20,353 98,328 Technology 52,707 — 8,555 61,262 Communications 51,829 — 2,640 54,469 Industrials 49,983 — — 49,983 Consumer cyclical 39,002 — — 39,002 Utilities 31,748 — — 31,748 Other 11,571 — — 11,571 Mutual funds and exchange traded funds 118,246 — 8,586 126,832 Equities $ 1,004,505 $ 11,875 $ 40,134 $ 1,056,514 Other invested assets Derivative assets Foreign exchange forward contracts $ — $ 20,033 $ — $ 20,033 Futures contracts 846 — — 846 Insurance-linked securities — — 3 3 Total return swaps — — 485 485 TBAs — 154 — 154 Other Notes and loan receivables and notes securitization — — 44,817 44,817 Annuities and residuals — — 13,243 13,243 Private equities — — 59,872 59,872 Derivative liabilities Foreign exchange forward contracts — (7,446 ) — (7,446 ) Foreign currency option contracts — (1,196 ) — (1,196 ) Futures contracts (467 ) — — (467 ) Insurance-linked securities — — (339 ) (339 ) Total return swaps — — (2,007 ) (2,007 ) Interest rate swaps — (16,282 ) — (16,282 ) TBAs — (240 ) — (240 ) Other invested assets $ 379 $ (4,977 ) $ 116,074 $ 111,476 Funds held – directly managed U.S. government and government sponsored enterprises $ — $ 153,483 $ — $ 153,483 U.S. states, territories and municipalities — — 132 132 Non-U.S. sovereign government, supranational and government related — 128,233 — 128,233 Corporate — 177,347 — 177,347 Other invested assets — — 13,398 13,398 Funds held – directly managed $ — $ 459,063 $ 13,530 $ 472,593 Total $ 1,004,884 $ 13,810,738 $ 769,384 $ 15,585,006 |
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 years ended December 31, 2015 and 2014 , were as follows (in thousands of U.S. dollars): For the year ended December 31, 2015 Balance at beginning of year Realized and unrealized investment gains (losses) included in net income Purchases and issuances (1) Settlements and (2) Net transfers into/(out of) Level 3 Balance at end of year Change in relating to Fixed maturities U.S. states, territories and municipalities $ 149,728 $ 16,660 $ 16,440 $ (43,981 ) $ — $ 138,847 $ 16,650 Asset-backed securities 449,918 (11,208 ) 171,249 (240,260 ) — 369,699 (10,368 ) Fixed maturities $ 599,646 $ 5,452 $ 187,689 $ (284,241 ) $ — $ 508,546 $ 6,282 Equities Finance $ 20,353 $ 2,540 $ — $ (133 ) $ — $ 22,760 $ 2,540 Technology 8,555 (348 ) — — — 8,207 (348 ) Communications 2,640 (655 ) — — — 1,985 (655 ) Mutual funds and exchange traded funds 8,586 471 249,340 (253,793 ) — 4,604 (1,009 ) Equities $ 40,134 $ 2,008 $ 249,340 $ (253,926 ) $ — $ 37,556 $ 528 Other invested assets Derivatives, net $ (1,858 ) $ 804 $ (2,051 ) $ 8,456 $ — $ 5,351 $ 7,648 Notes and loan receivables and notes securitization 44,817 (2,223 ) 88,675 (5,347 ) — 125,922 (2,223 ) Annuities and residuals 13,243 (866 ) — (3,941 ) — 8,436 (472 ) Private equities 59,872 1,239 14,484 (4,297 ) — 71,298 1,119 Other invested assets $ 116,074 $ (1,046 ) $ 101,108 $ (5,129 ) $ — $ 211,007 $ 6,072 Funds held – directly managed U.S. states, territories and municipalities $ 132 $ 68 $ — $ (200 ) $ — $ — $ — Other invested assets 13,398 (3,252 ) — — — 10,146 (3,252 ) Funds held – directly managed $ 13,530 $ (3,184 ) $ — $ (200 ) $ — $ 10,146 $ (3,252 ) Total $ 769,384 $ 3,230 $ 538,137 $ (543,496 ) $ — $ 767,255 $ 9,630 (1) Purchases and issuances of derivatives include issuances of $2.1 million . (2) Settlements and sales of mutual funds and exchange traded funds and private equities include sales of $4.4 million and $0.2 million , respectively. For the year ended December 31, 2014 Balance at beginning of year Realized and unrealized investment gains (losses) included in net income Purchases and issuances (1) Settlements and (2) Net transfers into/(out of) Level 3 Balance at end of year Change in relating to Fixed maturities U.S. states, territories and municipalities $ 108,380 $ 12,322 $ 31,470 $ (2,444 ) $ — $ 149,728 $ 12,315 Asset-backed securities 446,577 8,169 192,940 (197,768 ) — 449,918 8,616 Fixed maturities $ 554,957 $ 20,491 $ 224,410 $ (200,212 ) $ — $ 599,646 $ 20,931 Equities Finance $ 20,207 $ 146 $ — $ — $ — $ 20,353 $ 146 Technology 7,752 803 — — — 8,555 803 Communications 2,199 441 — — — 2,640 441 Other — — 8 (8 ) — — — Mutual funds and exchange traded funds 7,887 699 — — — 8,586 699 Equities $ 38,045 $ 2,089 $ 8 $ (8 ) $ — $ 40,134 $ 2,089 Other invested assets Derivatives, net $ (788 ) $ (759 ) $ (871 ) $ 560 $ — $ (1,858 ) $ (759 ) Notes and loan receivables and notes securitization 41,446 (372 ) 35,988 (32,245 ) — 44,817 1,147 Annuities and residuals 24,064 (207 ) — (10,614 ) — 13,243 (167 ) Private equities 39,131 (3,149 ) 28,410 (4,520 ) — 59,872 (3,180 ) Other invested assets $ 103,853 $ (4,487 ) $ 63,527 $ (46,819 ) $ — $ 116,074 $ (2,959 ) Funds held – directly managed U.S. states, territories and municipalities $ 286 $ 1 $ — $ (155 ) $ — $ 132 $ 13 Other invested assets 15,165 (2,102 ) 781 (446 ) — 13,398 (2,102 ) Funds held – directly managed $ 15,451 $ (2,101 ) $ 781 $ (601 ) $ — $ 13,530 $ (2,089 ) Total $ 712,306 $ 15,992 $ 288,726 $ (247,640 ) $ — $ 769,384 $ 17,972 (1) Purchases and issuances of derivatives include issuances of $0.9 million . (2) There were no sales for the year ended December 31, 2014 . |
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 December 31, 2015 and 2014 were as follows (fair value in thousands of U.S. dollars): December 31, 2015 Fair value Valuation techniques Unobservable inputs Range (Weighted average) Fixed maturities U.S. states, territories and municipalities $ 138,847 Discounted cash flow Credit spreads 1.2% – 10.3% (4.1%) Asset-backed securities 369,699 Discounted cash flow Credit spreads 4.1% – 11.4% (7.7%) Equities Finance 16,627 Weighted market comparables Net income multiple 14.4 (14.4) Tangible book value multiple 1.5 (1.5) Liquidity discount 25.0% (25.0%) Comparable return 7.9% (7.9%) Finance 6,133 Profitability analysis Projected return on equity 14.0% (14.0%) Technology 8,207 Weighted market comparables Revenue multiple 1.2 (1.2) Adjusted earnings multiple 8.4 (8.4) Communications 1,985 Weighted market comparables Adjusted earnings multiple 9.4 (9.4) Comparable return 0% (0%) Other invested assets Total return swaps, net (133 ) Discounted cash flow Credit spreads 3.0% – 29.3% (16.5%) Insurance-linked securities – longevity swaps 9,428 Discounted cash flow Credit spreads 2.4% (2.4%) Notes and loan receivables 84,080 Discounted cash flow Credit spreads 6.0% – 26.8% (7.4%) Notes and loan receivables 10,415 Discounted cash flow Credit spreads 17.5% (17.5%) Gross revenue/fair value 1.1 – 1.5 (1.5) Notes securitization 31,427 Discounted cash flow Credit spreads 2.4% – 7.1% (6.9%) Annuities and residuals 8,436 Discounted cash flow Credit spreads 5.1% – 15.4% (12.7%) Prepayment speed 0% – 15.0% (2.1%) Constant default rate 0.3% – 17.5% (4.4%) Private equity – direct 8,792 Discounted cash flow and weighted market comparables Net income multiple 9.2 (9.2) Tangible book value multiple 1.9 (1.9) Recoverability of intangible assets 0% (0%) Private equity funds 29,222 Reported market value Net asset value, as reported 100.0% (100.0%) Market adjustments -4.9 – 5.2% (-0.5%) Private equity – other 33,284 Discounted cash flow Effective yield 5.8% (5.8%) Funds held – directly managed Other invested assets 10,146 Reported market value Net asset value, as reported 100.0% (100.0%) Market adjustments -16.0% – 0% (-15.0%) December 31, 2014 Fair value Valuation techniques Unobservable inputs Range (Weighted average) Fixed maturities U.S. states, territories and municipalities $ 149,728 Discounted cash flow Credit spreads 2.2% – 10.1% (4.6%) Asset-backed securities 449,918 Discounted cash flow Credit spreads 4.0% – 12.1% (7.1%) Equities Finance 14,561 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 7.3% (7.3%) Finance 5,792 Profitability analysis Projected return on equity 14.0% (14.0%) Technology 8,555 Weighted market comparables Revenue multiple 1.6 (1.6) Adjusted earnings multiple 10.2 (10.2) Communications 2,640 Weighted market comparables Adjusted earnings multiple 9.4 (9.4) Comparable return -10.6% (-10.6%) Other invested assets Total return swaps, net (1,522 ) Discounted cash flow Credit spreads 3.6% – 19.3% (16.3%) Notes and loan receivables 8,068 Discounted cash flow Credit spreads 12.6% (12.6%) Notes and loan receivables 13,237 Discounted cash flow Credit spreads 17.5% (17.5%) Gross revenue/fair value 1.5 – 1.7 (1.7) Notes securitization 23,512 Discounted cash flow Credit spreads 3.5% – 6.6% (6.4%) Annuities and residuals 13,243 Discounted cash flow Credit spreads 4.9% – 9.6% (7.8%) Prepayment speed 0% – 15.0% (4.3%) Constant default rate 0.3% – 17.5% (6.3%) Private equity – direct 8,536 Discounted cash flow and weighted market comparables Net income multiple 9.0 (9.0) Tangible book value multiple 2.0 (2.0) Recoverability of intangible assets 0% (0%) Private equity funds 18,494 Reported market value Net asset value, as reported 100.0% (100.0%) Market adjustments -7.6% – 11.0% (-1.6%) Private equity – other 32,842 Discounted cash flow Effective yield 5.8% (5.8%) Funds held – directly managed Other invested assets 13,398 Reported market value Net asset value, as reported 100.0% (100.0%) Market adjustments -15.4% – 0% (-14.5%) |
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 years ended December 31, 2015 , 2014 and 2013 were as follows (in thousands of U.S. dollars): 2015 2014 2013 Fixed maturities and short-term investments $ (276,776 ) $ 228,781 $ (525,787 ) Equities (187,561 ) 2,605 118,010 Other invested assets (1,835 ) (2,664 ) (6,970 ) Funds held – directly managed (6,323 ) 1,382 (27,850 ) Total $ (472,495 ) $ 230,104 $ (442,597 ) |
Carrying values and fair values of financial instrument liabilities | The carrying values and fair values of the Senior Notes and CENts at December 31, 2015 and 2014 were as follows (in thousands of U.S. dollars): December 31, 2015 December 31, 2014 Carrying Value Fair Value Carrying Value Fair Value Debt related to senior notes (1) $ 750,000 $ 829,755 $ 750,000 $ 853,792 Debt related to CENts (2) 63,384 63,265 63,384 62,309 (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 Consolidated Balance Sheets at December 31, 2015 and 2014 . (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 Consolidated Balance Sheets at December 31, 2015 and 2014 . |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments [Abstract] | |
Fixed Maturities, Short-Term Investments and Equities | The cost, gross unrealized gains, gross unrealized losses and fair value of investments classified as trading securities at December 31, 2015 and 2014 were as follows (in thousands of U.S. dollars): December 31, 2015 Cost (1) Gross Unrealized Gains Gross Unrealized Losses Fair Value Fixed maturities U.S. government and government sponsored enterprises $ 2,887,000 $ 4,253 $ (18,408 ) $ 2,872,845 U.S. states, territories and municipalities 743,413 39,543 (4,630 ) 778,326 Non-U.S. sovereign government, supranational and government related 1,271,416 71,399 (9,890 ) 1,332,925 Corporate 5,035,006 138,678 (87,485 ) 5,086,199 Asset-backed securities 1,040,144 13,341 (15,669 ) 1,037,816 Residential mortgage-backed securities 2,287,173 41,154 (37,687 ) 2,290,640 Other mortgage-backed securities 49,667 1,025 (1,181 ) 49,511 Fixed maturities $ 13,313,819 $ 309,393 $ (174,950 ) $ 13,448,262 Short-term investments 46,689 33 (34 ) 46,688 Equities 418,428 71,328 (45,895 ) 443,861 Total $ 13,778,936 $ 380,754 $ (220,879 ) $ 13,938,811 December 31, 2014 Cost (1) Gross Unrealized Gains Gross Unrealized Losses Fair Value Fixed maturities U.S. government and government sponsored enterprises $ 2,308,264 $ 13,350 $ (6,192 ) $ 2,315,422 U.S. states, territories and municipalities 511,228 21,058 (1,683 ) 530,603 Non-U.S. sovereign government, supranational and government related 1,866,915 112,029 (2,742 ) 1,976,202 Corporate 5,363,006 263,349 (22,195 ) 5,604,160 Asset-backed securities 1,110,393 23,131 (2,104 ) 1,131,420 Residential mortgage-backed securities 2,276,200 56,875 (26,599 ) 2,306,476 Other mortgage-backed securities 53,627 1,487 (652 ) 54,462 Fixed maturities $ 13,489,633 $ 491,279 $ (62,167 ) $ 13,918,745 Short-term investments 25,699 4 (25 ) 25,678 Equities 843,429 240,667 (27,582 ) 1,056,514 Total $ 14,358,761 $ 731,950 $ (89,774 ) $ 15,000,937 |
Maturity Distribution of Fixed Maturities and Short-Term Investments | The distribution of fixed maturities and short-term investments at December 31, 2015 , by contractual maturity date, is shown below (in thousands of U.S. dollars). Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations with or without call or prepayment penalties. Amortized Cost Fair Value One year or less $ 556,422 $ 555,956 More than one year through five years 4,552,338 4,608,744 More than five years through ten years 3,336,663 3,341,696 More than ten years 1,538,101 1,610,587 Subtotal $ 9,983,524 $ 10,116,983 Mortgage/asset-backed securities 3,376,984 3,377,967 Total $ 13,360,508 $ 13,494,950 |
Net Realized and Unrealized Investment (Losses) Gains | The components of the net realized and unrealized investment (losses) gains for the years ended December 31, 2015 , 2014 and 2013 were as follows (in thousands of U.S. dollars): 2015 2014 2013 Net realized investment gains on fixed maturities and short-term investments $ 66,296 $ 120,734 $ 118,575 Net realized investment gains on equities 137,609 98,733 75,217 Net realized investment (losses) gains on other invested assets (33,317 ) (20,686 ) 20,497 Change in net unrealized investment gains (losses) on other invested assets 844 (58,180 ) 56,652 Change in net unrealized investment (losses) gains on fixed maturities and short-term investments (276,776 ) 228,781 (525,787 ) Change in net unrealized investment (losses) gains on equities (187,561 ) 2,605 118,010 Net other realized and unrealized investment gains (losses) 1,053 (3,624 ) (2,107 ) Net realized and unrealized investment (losses) gains on funds held – directly managed (5,627 ) 3,433 (21,792 ) Total net realized and unrealized investment (losses) gains $ (297,479 ) $ 371,796 $ (160,735 ) |
Net investment income | The components of net investment income for the years ended December 31, 2015 , 2014 and 2013 were as follows (in thousands of U.S. dollars): 2015 2014 2013 Fixed maturities $ 425,541 $ 443,414 $ 446,299 Short-term investments and cash and cash equivalents 854 868 1,886 Equities 30,739 40,326 32,989 Funds held and other 27,406 33,192 34,215 Funds held – directly managed 11,676 13,841 20,502 Investment expenses (46,432 ) (51,945 ) (51,524 ) Net investment income $ 449,784 $ 479,696 $ 484,367 |
Net Payable for Securities Purchased | Included within Accounts payable, accrued expenses and other in the Consolidated Balance Sheets at December 31, 2015 and 2014 were amounts of gross receivable balances for securities sold and gross payable balances for securities purchased as follows (in thousands of U.S. dollars): 2015 2014 Receivable for securities sold $ 34,497 $ 51,586 Payable for securities purchased (219,707 ) (63,779 ) Net payable for securities purchased $ (185,210 ) $ (12,193 ) |
Funds Held - Directly Managed (
Funds Held - Directly Managed (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure - Funds Held-Directly Managed [Abstract] | |
Fixed Maturities, Short-Term Investments and Other Invested Assets | The cost, gross unrealized gains, gross unrealized losses and fair value of investments underlying the funds held – directly managed account at December 31, 2015 and 2014 were as follows (in thousands of U.S. dollars): December 31, 2015 Cost (1) Gross Unrealized Gains Gross Unrealized Losses Fair Value Fixed maturities U.S. government and government sponsored enterprises $ 168,197 $ 2,209 $ (455 ) $ 169,951 Non-U.S. sovereign government, supranational and government related 112,724 6,827 (64 ) 119,487 Corporate 94,725 4,624 — 99,349 Fixed maturities $ 375,646 $ 13,660 $ (519 ) $ 388,787 Short-term investments 966 — — 966 Other invested assets 21,231 — (11,059 ) 10,172 Total $ 397,843 $ 13,660 $ (11,578 ) $ 399,925 December 31, 2014 Cost (1) Gross Unrealized Gains Gross Unrealized Losses Fair Value Fixed maturities U.S. government and government sponsored enterprises $ 150,242 $ 3,302 $ (61 ) $ 153,483 U.S. states, territories and municipalities 214 — (82 ) 132 Non-U.S. sovereign government, supranational and government related 119,732 8,536 (35 ) 128,233 Corporate 168,697 8,650 — 177,347 Fixed maturities $ 438,885 $ 20,488 $ (178 ) $ 459,195 Other invested assets 25,388 — (11,837 ) 13,551 Total $ 464,273 $ 20,488 $ (12,015 ) $ 472,746 |
Maturity Distribution of Fixed maturities | The distribution of fixed maturities underlying the funds held – directly managed account at December 31, 2015 , by contractual maturity date, is shown below (in thousands of U.S. dollars). Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations with or without call or prepayment penalties. Amortized Cost Fair Value One year or less $ 72,450 $ 73,144 More than one year through five years 187,504 195,500 More than five years through ten years 96,533 100,700 More than ten years 20,125 20,409 Total $ 376,612 $ 389,753 |
Net Realized and Unrealized Investment (Losses) Gains | The components of the net realized and unrealized investment (losses) gains on the funds held – directly managed account for the years ended December 31, 2015 , 2014 and 2013 were as follows (in thousands of U.S. dollars): 2015 2014 2013 Net realized investment gains on fixed maturities and short-term investments $ 64 $ 1,959 $ 6,021 Net realized investment gains on other invested assets 472 53 19 Change in net unrealized investment (losses) gains on fixed maturities and short-term investments (5,774 ) 1,938 (24,176 ) Change in net unrealized investment losses on other invested assets (389 ) (517 ) (3,656 ) Net realized and unrealized investment (losses) gains on funds held – directly managed $ (5,627 ) $ 3,433 $ (21,792 ) |
Net investment income | The components of net investment income underlying the funds held – directly managed account for the years ended December 31, 2015 , 2014 and 2013 were as follows (in thousands of U.S. dollars): 2015 2014 2013 Fixed maturities $ 10,528 $ 12,789 $ 18,804 Short-term investments and cash and cash equivalents 81 59 1,246 Other 1,776 1,760 1,287 Investment expenses (709 ) (767 ) (835 ) Net investment income on funds held – directly managed $ 11,676 $ 13,841 $ 20,502 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 Consolidated Balance Sheets at December 31, 2015 and 2014 were as follows (in thousands of U.S. dollars): Asset derivatives at fair value Liability derivatives at fair value Net derivatives December 31, 2015 Net notional exposure Fair value Derivatives designated as hedges Foreign exchange forward contracts (net investment hedge) $ — $ (9,305 ) $ 392,523 $ (9,305 ) Total derivatives designated as hedges $ — $ (9,305 ) $ (9,305 ) Derivatives not designated as hedges Foreign exchange forward contracts $ 15,311 $ (5,804 ) $ 1,708,285 $ 9,507 Foreign currency option contracts — — 82,148 — Futures contracts 5,675 (140 ) 3,610,658 5,535 Insurance-linked securities (1) 9,428 (3,944 ) 140,320 5,484 Total return swaps 2,745 (2,878 ) 42,438 (133 ) Interest rate swaps (2) — (24,383 ) 196,804 (24,383 ) TBAs — (1,462 ) 447,315 (1,462 ) Total derivatives not designated as hedges $ 33,159 $ (38,611 ) $ (5,452 ) Total derivatives $ 33,159 $ (47,916 ) $ (14,757 ) Asset derivatives at fair value Liability derivatives at fair value Net derivatives December 31, 2014 Net notional exposure Fair value Derivatives not designated as hedges Foreign exchange forward contracts $ 20,033 $ (7,446 ) $ 2,080,276 $ 12,587 Foreign currency option contracts — (1,196 ) 43,380 (1,196 ) Futures contracts 846 (467 ) 2,348,735 379 Insurance-linked securities (1) 3 (339 ) 145,481 (336 ) Total return swaps 485 (2,007 ) 42,524 (1,522 ) Interest rate swaps (2) — (16,282 ) 201,160 (16,282 ) TBAs 154 (240 ) 235,105 (86 ) Total derivatives $ 21,521 $ (27,977 ) $ (6,456 ) (1) At December 31, 2015 and 2014 , 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 Consolidated Statements of Operations for derivatives not designated as hedges for the years ended December 31, 2015 , 2014 and 2013 were as follows (in thousands of U.S. dollars): 2015 2014 2013 Foreign exchange forward contracts $ (29,217 ) $ 39,399 $ (59,019 ) Foreign currency option contracts (3,472 ) (810 ) (5,164 ) Total included in net foreign exchange gains and losses $ (32,689 ) $ 38,589 $ (64,183 ) Futures contracts $ (32,004 ) $ (72,146 ) $ 78,841 Insurance-linked securities (1,556 ) 230 (707 ) Total return swaps 1,390 (1,002 ) (6,597 ) Interest rate swaps (8,101 ) (15,871 ) 7,469 TBAs 2,877 13,166 (8,808 ) Other 2,493 (3 ) (11 ) Total included in net realized and unrealized investment gains and losses $ (34,901 ) $ (75,626 ) $ 70,187 Total derivatives not designated as hedges $ (67,590 ) $ (37,037 ) $ 6,004 |
Offsetting Disclosures [Table Text Block] | The gross and net fair values of derivatives that are subject to offsetting in the Consolidated Balance Sheets at December 31, 2015 and 2014 were as follows (in thousands of U.S. dollars): Gross amounts offset in the balance sheet Net amounts of assets/liabilities presented in the balance sheet Gross amounts not offset in the balance sheet December 31, 2015 Gross amounts recognized (1) Financial instruments Cash collateral received/pledged Net amount Total derivative assets $ 33,159 $ — $ 33,159 $ (1,037 ) $ (10,222 ) $ 21,900 Total derivative liabilities $ (47,916 ) $ — $ (47,916 ) $ 1,037 $ 25,904 $ (20,975 ) December 31, 2014 Total derivative assets $ 21,521 $ — $ 21,521 $ (766 ) $ (8,536 ) $ 12,219 Total derivative liabilities $ (27,977 ) $ — $ (27,977 ) $ 766 $ 14,858 $ (12,353 ) (1) Amounts include all derivative instruments, irrespective of whether there is a legally enforceable master netting arrangement in place. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule Of Goodwill And Intangible Assets Rollforward [Table Text Block] | The Company’s goodwill related to the acquisitions of PartnerRe SA, Winterthur Re, Paris Re and PartnerRe Health and intangible assets related to the acquisitions of Paris Re and PartnerRe Health at December 31, 2015 and 2014 were as follows (in thousands of U.S. dollars): 2015 Goodwill Definite- lived intangible assets Indefinite- lived intangible asset Total intangible assets Balance at January 1 $ 456,380 $ 152,254 $ 7,350 $ 159,604 Intangible assets amortization n/a (26,593 ) n/a (26,593 ) Balance at December 31 $ 456,380 $ 125,661 $ 7,350 $ 133,011 2014 Goodwill Definite- lived intangible assets Indefinite- lived intangible asset Total intangible assets Balance at January 1 $ 456,380 $ 179,740 $ 7,350 $ 187,090 Intangible assets amortization n/a (27,486 ) n/a (27,486 ) Balance at December 31 $ 456,380 $ 152,254 $ 7,350 $ 159,604 n/a: Not applicable |
Schedule Of Definite And Indefinite Lived Intangible Assets [Table Text Block] | The gross carrying value and accumulated amortization of intangible assets by type that are yet to be fully amortized at December 31, 2015 and 2014 is as follows (in thousands of U.S. dollars): December 31, 2015 December 31, 2014 Gross carrying value Accumulated amortization Gross carrying value Accumulated amortization Definite-lived intangible assets: Unpaid losses and loss expenses $ 191,196 $ 145,808 $ 191,196 $ 131,908 Renewal rights 48,163 18,226 48,163 12,273 Customer relationships 63,408 13,072 63,408 6,332 Total definite-lived intangible assets $ 302,767 $ 177,106 $ 302,767 $ 150,513 Indefinite-lived intangible asset: U.S. insurance licenses 7,350 n/a 7,350 n/a Total intangible assets $ 310,117 $ 177,106 $ 310,117 $ 150,513 n/a: Not applicable |
Allocation of Goodwill by Segment [Table Text Block] | The allocation of the goodwill to the Company’s segments and sub-segments at December 31, 2015 and 2014 was as follows (in thousands of U.S. dollars): Amount Non-life segment: North America $ 82,026 Global (Non-U.S.) P&C 149,895 Global Specialty 179,641 Catastrophe 26,014 Life and Health segment 18,804 Total goodwill $ 456,380 |
Schedule Of Expected Amortization Expense [Table Text Block] | Year Amount 2016 $ 25,919 2017 22,818 2018 21,247 2019 18,153 2020 10,823 Total $ 98,960 |
Unpaid Losses and Loss Expens42
Unpaid Losses and Loss Expenses and Policy Benefits for Life and Annuity Contracts (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] | |
Schedule Of Unpaid Losses And Loss Expenses By Type Table [Text Block] | The Company’s gross liability for unpaid losses and loss expenses reported by cedants (case reserves) and those estimated by the Company (ACRs and IBNR reserves) at December 31, 2015 and 2014 was as follows (in thousands of U.S. dollars): 2015 2014 Case reserves $ 3,716,195 $ 4,236,038 ACRs 190,183 253,890 IBNR reserves 5,158,333 5,255,878 Total unpaid losses and loss expenses $ 9,064,711 $ 9,745,806 |
Schedule of rollforward of unpaid losses and loss expenses [Text Block] | The reconciliation of the beginning and ending gross and net liability for unpaid losses and loss expenses, excluding policy benefits for life and annuity contracts, for the years ended December 31, 2015 , 2014 and 2013 was as follows (in thousands of U.S. dollars): 2015 2014 2013 Gross liability at beginning of year $ 9,745,806 $ 10,646,318 $ 10,709,371 Reinsurance recoverable at beginning of year 214,349 267,384 291,330 Net liability at beginning of year 9,531,457 10,378,934 10,418,041 Net incurred losses related to: Current year 3,023,704 3,122,981 3,118,755 Prior years (830,705 ) (660,413 ) (721,499 ) 2,192,999 2,462,568 2,397,256 Change in Paris Re Reserve Agreement (8,771 ) (25,412 ) (49,544 ) Net paid losses related to: Current year 250,720 267,806 242,053 Prior years 2,171,883 2,530,743 2,159,506 2,422,603 2,798,549 2,401,559 Effects of foreign exchange rate changes (417,605 ) (486,084 ) 14,740 Net liability at end of year 8,875,477 9,531,457 10,378,934 Reinsurance recoverable at end of year 189,234 214,349 267,384 Gross liability at end of year $ 9,064,711 $ 9,745,806 $ 10,646,318 |
Reconciliation Of Loss And Loss Expenses Including Life Policy Benefits Table [Text Block] | The reconciliation of losses and loss expenses including life policy benefits for the years ended December 31, 2015 , 2014 and 2013 was as follows (in thousands of U.S. dollars): 2015 2014 2013 Net incurred losses related to: Non-life $ 2,192,999 $ 2,462,568 $ 2,397,256 Life and Health 964,421 1,000,202 760,552 Losses and loss expenses and life policy benefits $ 3,157,420 $ 3,462,770 $ 3,157,808 |
Net Non Life Prior Year Loss Development Table [Text Block] | The net favorable prior year loss development for each of the Company’s Non-life sub-segments for the years ended December 31, 2015 , 2014 and 2013 was as follows (in thousands of U.S. dollars): 2015 2014 2013 Net favorable prior year loss development: Non-life sub-segment North America $ 284,406 $ 250,942 $ 222,839 Global (Non-U.S.) P&C 96,438 134,394 180,052 Global Specialty 434,244 257,696 227,383 Catastrophe 15,617 17,381 91,225 Total net favorable prior year loss development $ 830,705 $ 660,413 $ 721,499 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Reinsurance Disclosures [Abstract] | |
Ceded reinsurance | Assumed, ceded and net amounts for the years ended December 31, 2015 , 2014 and 2013 were as follows (in thousands of U.S. dollars): Premiums Written Premiums Earned Losses and Loss Expenses and Life Policy Benefits 2015 Assumed $ 5,547,525 $ 5,570,321 $ 3,215,665 Ceded 317,977 301,143 58,245 Net $ 5,229,548 $ 5,269,178 $ 3,157,420 2014 Assumed $ 5,932,003 $ 5,824,398 $ 3,503,060 Ceded 212,119 215,203 40,290 Net $ 5,719,884 $ 5,609,195 $ 3,462,770 2013 Assumed $ 5,569,706 $ 5,373,866 $ 3,207,860 Ceded 173,180 175,656 50,052 Net $ 5,396,526 $ 5,198,210 $ 3,157,808 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Total Authorized Shares Table [Text Block] | At December 31, 2015 and 2014 , the total authorized shares of the Company were 200 million shares, par value $1.00 per share, as follows (in millions of shares): Shares Designated common shares 100.0 Designated 6.5% Series D cumulative redeemable preferred shares 9.2 Designated 7.25% Series E cumulative redeemable preferred shares 17.0 Designated 5.875% Series F non-cumulative redeemable preferred shares 14.0 Designated and redeemed preference shares 26.0 Undesignated 33.8 200.0 |
Preferred Stock [Table Text Block] | During the years ended December 31, 2015 , 2014 and 2013 , the Company had Series C, Series D and Series E cumulative redeemable preferred shares and Series F non-cumulative redeemable preferred shares outstanding as follows (in millions of U.S. dollars or shares, except percentage amounts): Series C Series D Series E Series F Date of issuance May 2003 November 2004 June 2011 February 2013 Number of preferred shares issued 11.6 9.2 15.0 10.0 Annual dividend rate 6.75 % 6.5 % 7.25 % 5.875 % Total consideration $ 280.9 $ 222.3 $ 361.7 $ 242.3 Underwriting discounts and commissions $ 9.1 $ 7.7 $ 12.1 $ 7.7 Aggregate liquidation value $ 290.0 $ 230.0 $ 373.8 $ 250.0 Date of redemption March 2013 n/a n/a n/a n/a: Not applicable |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Net Income Per Share Table [Text Block] | The reconciliation of basic and diluted net income per share and dividends declared per common share for the years ended December 31, 2015 , 2014 and 2013 is as follows (in thousands of U.S. dollars, except share and per share data): 2015 2014 2013 Numerator: Net income attributable to PartnerRe Ltd. $ 104,381 $ 1,054,974 $ 664,008 Less: preferred dividends 56,735 56,735 57,861 Less: loss on redemption of preferred shares — — 9,135 Net income attributable to PartnerRe Ltd. common shareholders $ 47,646 $ 998,239 $ 597,012 Denominator: Weighted number of common shares outstanding – basic 47,771,673 50,019,480 55,378,980 Share options and other (1) 1,168,197 1,154,745 1,069,125 Weighted average number of common shares and common share equivalents outstanding – diluted 48,939,870 51,174,225 56,448,105 Basic net income per share $ 1.00 $ 19.96 $ 10.78 Diluted net income per share (1) $ 0.97 $ 19.51 $ 10.58 Dividends declared per common share $ 2.80 $ 2.68 $ 2.56 Anti-dilutive common shares excluded from weighted average number of common shares and common share equivalents outstanding - diluted (1) 49,411 127,329 14,784 (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) | 12 Months Ended |
Dec. 31, 2015 | |
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 years ended December 31, 2015 and 2014 was as follows (in thousands of U.S. dollars): 2015 2014 Balance at January 1 $ 55,501 $ 56,627 Net income attributable to noncontrolling interests 2,769 13,139 Distribution to noncontrolling interests (55,820 ) (14,265 ) Balance at December 31 $ 2,450 $ 55,501 |
Dividend Restrictions and Sta47
Dividend Restrictions and Statutory Requirements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure - Dividend Restrictions and Statutory Requirements [Abstract] | |
Statutory measurements | The statutory net income of the Company’s reinsurance subsidiaries for the years ended December 31, 2015 , 2014 and 2013 was as follows (in millions of U.S. dollars): 2015 2014 2013 PartnerRe Bermuda $ 444 $ 660 $ 616 PartnerRe Europe 75 298 9 PartnerRe U.S. 219 236 123 The required and actual statutory capital and surplus of the Company’s reinsurance subsidiaries at December 31, 2015 and 2014 was as follows (in millions of U.S. dollars): PartnerRe Bermuda PartnerRe Europe PartnerRe U.S. 2015 2014 2015 2014 2015 2014 Required statutory capital and surplus $ 2,041 $ 1,984 $ 805 $ 867 $ 701 $ 764 Actual statutory capital and surplus 3,032 3,157 1,062 1,400 1,405 1,420 |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure - Taxation [Abstract] | |
Components of income tax expense | Income tax expense for the years ended December 31, 2015 , 2014 and 2013 was as follows (in thousands of U.S. dollars): 2015 2014 2013 Current income tax expense U.S. $ 81,066 $ 51,615 $ 55,993 Non U.S. 95,720 184,367 73,599 Total current income tax expense $ 176,786 $ 235,982 $ 129,592 Deferred income tax (benefit) expense U.S. $ (59,624 ) $ 20,410 $ (13,693 ) Non U.S. (44,125 ) (17,636 ) (70,886 ) Total deferred income tax (benefit) expense $ (103,749 ) $ 2,774 $ (84,579 ) Unrecognized tax expense (benefit) U.S. $ — $ — $ (335 ) Non U.S. 6,627 750 3,738 Total unrecognized tax expense $ 6,627 $ 750 $ 3,403 Total income tax expense U.S. $ 21,442 $ 72,025 $ 41,965 Non U.S. 58,222 167,481 6,451 Total income tax expense $ 79,664 $ 239,506 $ 48,416 |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | Income before taxes attributable to the Company’s domestic and foreign operations and a reconciliation of the actual income tax rate to the amount computed by applying the effective tax rate of 0% under Bermuda (the Company’s domicile) law to income before taxes was as follows for the years ended December 31, 2015 , 2014 and 2013 (in thousands of U.S. dollars): 2015 2014 2013 Domestic (Bermuda) $ (63,603 ) $ 686,538 $ 611,900 Foreign 250,417 621,081 109,958 Income before taxes $ 186,814 $ 1,307,619 $ 721,858 |
Reconciliation of effective tax rate | Reconciliation of effective tax rate (% of income before taxes) Expected tax rate 0.0 % 0.0 % 0.0 % Foreign taxes at local expected tax rates 58.3 15.8 5.1 Impact of foreign exchange gains (losses) 1.1 2.2 (1.1 ) Unrecognized tax expense 3.5 0.1 0.5 Tax-exempt income and expenses not deductible (8.0 ) (2.2 ) (0.9 ) Impact of enacted changes in tax laws 0.3 — 1.8 Foreign branch tax (26.8 ) 1.4 (1.4 ) Ceding commissions (0.7 ) 1.8 (0.4 ) Valuation allowance 15.2 (0.6 ) 1.3 Other (0.3 ) (0.2 ) 1.8 Actual tax rate 42.6 % 18.3 % 6.7 % |
Significant components of net deferred tax assets and liabilities | Significant components of the net deferred tax assets and liabilities at December 31, 2015 and 2014 were as follows (in thousands of U.S. dollars): 2015 2014 Deferred tax assets Discounting of loss reserves and adjustment to life policy reserves $ 61,712 $ 77,117 Foreign tax credit carryforwards 94,560 57,186 Tax loss carryforwards 28,663 35,384 Unearned premiums 23,319 23,230 Other deferred tax assets 49,545 32,431 257,799 225,348 Valuation allowance (94,176 ) (68,115 ) Deferred tax assets 163,623 157,233 Deferred tax liabilities Deferred acquisition costs 48,759 54,718 Goodwill and other intangibles 85,185 93,416 Equalization reserves 55,715 77,383 Unrealized appreciation and timing differences on investments 23,240 85,873 Other deferred tax liabilities 54,715 51,385 Deferred tax liabilities 267,614 362,775 Net deferred tax liabilities $ (103,991 ) $ (205,542 ) |
Schedule Of Net Tax Assets And Liabilities Table [Text Block] | The components of net tax assets and liabilities at December 31, 2015 and 2014 were as follows (in thousands of U.S. dollars): 2015 2014 Net tax assets $ 102,596 $ 6,876 Net tax liabilities (218,652 ) (240,989 ) Net tax liabilities $ (116,056 ) $ (234,113 ) 2015 2014 Net current tax assets (liabilities) $ 11,773 $ (9,739 ) Net deferred tax liabilities (103,991 ) (205,542 ) Net unrecognized tax benefit (23,838 ) (18,832 ) Net tax liabilities $ (116,056 ) $ (234,113 ) |
Total amount of unrecognized tax benefits | The total amount of unrecognized tax benefits for the years ended December 31, 2015 , 2014 and 2013 was as follows (in thousands of U.S. dollars): January 1, 2015 Changes in tax positions taken during a prior period Tax positions taken during the current period Change as a result of a lapse of the statute of limitations Impact of the change in foreign currency exchange rates December 31, 2015 Unrecognized tax benefits that, if recognized, would impact the effective tax rate $ 18,266 $ 29 $ 8,683 $ (3,039 ) $ (1,684 ) $ 22,255 Interest and penalties recognized on the above 566 716 261 (24 ) 64 1,583 Total unrecognized tax benefits, including interest and penalties $ 18,832 $ 745 $ 8,944 $ (3,063 ) $ (1,620 ) $ 23,838 January 1, 2014 Changes in tax Tax positions Change as a Impact of the December 31, 2014 Unrecognized tax benefits that, if recognized, would impact the effective tax rate $ 19,353 $ 1,338 $ 5,142 $ (5,197 ) $ (2,370 ) $ 18,266 Interest and penalties recognized on the above 1,215 259 — (792 ) (116 ) 566 Total unrecognized tax benefits, including interest and penalties $ 20,568 $ 1,597 $ 5,142 $ (5,989 ) $ (2,486 ) $ 18,832 January 1, Changes in tax Tax positions Change as a Impact of the December 31, Unrecognized tax benefits that, if recognized, would impact the effective tax rate $ 15,784 $ (5,038 ) $ 10,164 $ (2,102 ) $ 545 $ 19,353 Interest and penalties recognized on the above 800 507 51 (179 ) 36 1,215 Total unrecognized tax benefits, including interest and penalties $ 16,584 $ (4,531 ) $ 10,215 $ (2,281 ) $ 581 $ 20,568 |
Share-Based Awards (Tables)
Share-Based Awards (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Share-based Arrangements with Employees and Nonemployees [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | The activity related to share options exercised for the years ended December 31, 2015 , 2014 and 2013 was as follows: 2015 2014 2013 Options exercised 142,429 225,329 819,764 Total intrinsic value of options exercised (in millions of U.S. dollars) $ 8.5 $ 8.7 $ 24.8 Proceeds from option exercises (in millions of U.S. dollars) $ 9.8 $ 14.7 $ 49.6 The activity related to the Company’s share options for the year ended December 31, 2015 was as follows: Options Weighted Average Exercise Price Outstanding at January 1, 2015 410,347 $ 71.55 Exercised (142,429 ) 70.47 Outstanding at December 31, 2015 267,918 $ 72.13 Options exercisable at December 31, 2015 267,918 $ 72.13 Options vested and expected to vest at December 31, 2015 267,918 $ 72.13 |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | The activity related to the Company’s RSUs and PSUs for the year ended December 31, 2015 was as follows: RSUs and PSUs Outstanding at January 1, 2015 932,622 Granted 264,018 Performance based adjustment 10,142 Vested (313,078 ) Forfeited (32,096 ) Outstanding at December 31, 2015 861,608 |
Schedule of Share-based Compensation, Stock Appreciation Rights Award Activity [Table Text Block] | The activity related to the Company’s SSARs for the year ended December 31, 2015 was as follows: SSARs Outstanding at January 1, 2015 1,492,926 Granted 72,918 Exercised (574,120 ) Outstanding at December 31, 2015 991,724 Exercisable at December 31, 2015 820,380 |
Schedule Of Share Based Payment Award Share Appreciation Rights Valuation Assumptions Table [Text Block] | The Company values SSARs issued with a Black-Scholes valuation model and used the following assumptions for the years ended December 31, 2015 , 2014 and 2013 : 2015 2014 2013 Expected life 6 years 6 years 6 years Expected volatility 17.7 % 18.1 % 18.3 % Risk-free interest rate 1.9 % 1.9 % 1.0 % Dividend yield 2.2 % 2.2 % 2.3 % |
Retirement Benefit Arrangemen50
Retirement Benefit Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure - Retirement Benefit Arrangements [Abstract] | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | At December 31, 2015 and 2014 , the funded status of the Zurich Plan was as follows (in thousands of U.S. dollars): 2015 2014 Funded status Unfunded pension obligation at beginning of year $ 41,365 $ 24,614 Change in pension obligation Service cost 6,945 6,188 Interest cost 1,682 2,635 Plan participants’ contributions 2,504 1,838 Actuarial loss 7,550 15,796 Plan amendments — 2,667 Benefits paid (1,730 ) (7,392 ) Foreign currency adjustments (465 ) (13,493 ) Change in pension obligation 16,486 8,239 Change in fair value of plan assets Actual return on plan assets 1,594 1,707 Employer contributions 5,337 5,492 Plan participants’ contributions 2,504 1,838 Benefits paid (1,730 ) (7,392 ) Foreign currency adjustments (259 ) (10,157 ) Change in fair value of plan assets 7,446 (8,512 ) Funded status Unfunded pension obligation at end of year $ 50,405 $ 41,365 Additional information: Projected benefit obligation at end of year $ 151,115 $ 134,629 Accumulated pension obligation at end of year 141,716 127,322 Fair value of plan assets at end of year 100,710 93,264 |
Assumptions used | The assumptions used to determine the Zurich Plan’s pension obligation and net periodic benefit cost for the years ended December 31, 2015 , 2014 and 2013 were as follows: 2015 2014 2013 Pension obligation Net periodic benefit cost Pension obligation Net periodic benefit cost Pension obligation Net periodic benefit cost Discount rate 1.00 % 1.25 % 1.25 % 2.25 % 2.25 % 1.75 % Expected return on plan assets — 1.25 % — 2.25 % — 1.75 % Rate of compensation increase 2.25 % 2.25 % 2.25 % 2.50 % 2.50 % 2.50 % |
Expected future benefit payments | At December 31, 2015 , estimated employer contributions to be paid in 2016 related to the Zurich Plan were $4.9 million and future benefit payments were estimated to be paid as follows (in thousands of U.S. dollars): Year Amount 2016 $ 4,566 2017 4,531 2018 4,264 2019 4,244 2020 4,454 2021 to 2025 30,061 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lease arrangements | The following is a schedule of future minimum rental payments, exclusive of escalation clauses, on non-cancelable leases and future sub-lease rental income on non-cancellable leases at December 31, 2015 (in thousands of U.S. dollars): Year Amount 2016 $ 26,150 2017 25,312 2018 12,618 2019 5,601 2020 981 2021 through 2022 1,398 Total future minimum rental payments $ 72,060 Total future sub-lease rental income through 2019 $ 7,360 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Segment reporting table | The segment results for the years ended December 31, 2015 , 2014 and 2013 , were as follows (in millions of U.S. dollars, except ratios): Segment Information For the year ended December 31, 2015 North America Global (Non-U.S.) P&C Global Specialty Catastrophe Total Non-life segment Life and Health segment Corporate and Other Total Gross premiums written $ 1,604 $ 735 $ 1,556 $ 382 $ 4,277 $ 1,271 $ — $ 5,548 Net premiums written $ 1,542 $ 726 $ 1,482 $ 272 $ 4,022 $ 1,208 $ — $ 5,230 Decrease (increase) in unearned premiums 30 (33 ) 29 12 38 1 — 39 Net premiums earned $ 1,572 $ 693 $ 1,511 $ 284 $ 4,060 $ 1,209 $ — $ 5,269 Losses and loss expenses and life policy benefits (881 ) (473 ) (785 ) (54 ) (2,193 ) (964 ) — (3,157 ) Acquisition costs (443 ) (189 ) (407 ) (25 ) (1,064 ) (153 ) — (1,217 ) Technical result $ 248 $ 31 $ 319 $ 205 $ 803 $ 92 $ — $ 895 Other income — 6 3 9 Other expenses (219 ) (63 ) (509 ) (791 ) Underwriting result $ 584 $ 35 n/a $ 113 Net investment income 59 391 450 Allocated underwriting result (1) $ 94 n/a n/a Net realized and unrealized investment losses (297 ) (297 ) Interest expense (49 ) (49 ) Amortization of intangible assets (27 ) (27 ) Net foreign exchange losses (9 ) (9 ) Income tax expense (80 ) (80 ) Interest in earnings of equity method investments 6 6 Net income n/a $ 107 Loss ratio (2) 56.0 % 68.3 % 52.0 % 19.1 % 54.0 % Acquisition ratio (3) 28.2 27.3 26.9 8.6 26.2 Technical ratio (4) 84.2 % 95.6 % 78.9 % 27.7 % 80.2 % Other expense ratio (5) 5.4 Combined ratio (6) 85.6 % (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 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 expense ratio is obtained by dividing other expenses by net premiums earned. (6) Combined ratio is defined as the sum of the technical ratio and the other expense ratio. n/a: Not applicable Segment Information For the year ended December 31, 2014 North America Global (Non-U.S.) P&C Global Specialty Catastrophe Total Non-life segment Life and Health segment Corporate and Other Total Gross premiums written $ 1,642 $ 803 $ 1,797 $ 425 $ 4,667 $ 1,265 $ — $ 5,932 Net premiums written $ 1,630 $ 794 $ 1,696 $ 380 $ 4,500 $ 1,220 $ — $ 5,720 (Increase) decrease in unearned premiums (33 ) (26 ) (58 ) 4 (113 ) 2 — (111 ) Net premiums earned $ 1,597 $ 768 $ 1,638 $ 384 $ 4,387 $ 1,222 $ — $ 5,609 Losses and loss expenses and life policy benefits (1,000 ) (438 ) (963 ) (62 ) (2,463 ) (1,000 ) — (3,463 ) Acquisition costs (401 ) (222 ) (400 ) (42 ) (1,065 ) (149 ) — (1,214 ) Technical result $ 196 $ 108 $ 275 $ 280 $ 859 $ 73 $ — $ 932 Other income 3 8 5 16 Other expenses (252 ) (68 ) (130 ) (450 ) Underwriting result $ 610 $ 13 n/a $ 498 Net investment income 60 420 480 Allocated underwriting result $ 73 n/a n/a Net realized and unrealized investment gains 372 372 Interest expense (49 ) (49 ) Amortization of intangible assets (27 ) (27 ) Net foreign exchange gains 18 18 Income tax expense (239 ) (239 ) Interest in earnings of equity method investments 15 15 Net income n/a $ 1,068 Loss ratio 62.6 % 57.0 % 58.8 % 16.1 % 56.1 % Acquisition ratio 25.1 28.9 24.4 11.0 24.3 Technical ratio 87.7 % 85.9 % 83.2 % 27.1 % 80.4 % Other expense ratio 5.8 Combined ratio 86.2 % Segment Information For the year ended December 31, 2013 North Global Global Catastrophe Total Life Corporate Total Gross premiums written $ 1,601 $ 818 $ 1,676 $ 495 $ 4,590 $ 972 $ 8 $ 5,570 Net premiums written $ 1,587 $ 811 $ 1,579 $ 450 $ 4,427 $ 964 $ 6 $ 5,397 (Increase) decrease in unearned premiums (54 ) (68 ) (73 ) 3 (192 ) (7 ) — (199 ) Net premiums earned $ 1,533 $ 743 $ 1,506 $ 453 $ 4,235 $ 957 $ 6 $ 5,198 Losses and loss expenses and life policy benefits (975 ) (373 ) (920 ) (132 ) (2,400 ) (760 ) 2 (3,158 ) Acquisition costs (351 ) (196 ) (362 ) (44 ) (953 ) (125 ) — (1,078 ) Technical result $ 207 $ 174 $ 224 $ 277 $ 882 $ 72 $ 8 $ 962 Other income 3 11 3 17 Other expenses (259 ) (71 ) (170 ) (500 ) Underwriting result $ 626 $ 12 n/a $ 479 Net investment income 61 423 484 Allocated underwriting result $ 73 n/a n/a Net realized and unrealized investment losses (161 ) (161 ) Interest expense (49 ) (49 ) Amortization of intangible assets (27 ) (27 ) Net foreign exchange losses (18 ) (18 ) Income tax expense (49 ) (49 ) Interest in earnings of equity method investments 14 14 Net income n/a $ 673 Loss ratio 63.6 % 50.2 % 61.1 % 29.0 % 56.7 % Acquisition ratio 22.9 26.4 24.0 9.7 22.5 Technical ratio 86.5 % 76.6 % 85.1 % 38.7 % 79.2 % Other expense ratio 6.1 Combined ratio 85.3 % |
Segment line of business distribution of premiums table | The following table provides the distribution of net premiums written by line of business for the years ended December 31, 2015 , 2014 and 2013 : 2015 2014 2013 Non-life Property and casualty Casualty 12 % 12 % 12 % Motor 7 7 7 Multiline and other 7 5 4 Property 11 11 12 Specialty Agriculture 11 12 11 Aviation/Space 4 4 4 Catastrophe 5 6 8 Credit/Surety 6 7 6 Energy 1 1 2 Engineering 3 3 4 Marine 4 5 6 Specialty casualty 3 3 3 Specialty property 3 3 3 Life and Health 23 21 18 Total 100 % 100 % 100 % |
Segment geographic distribution of premiums table | The following table provides the geographic distribution of gross premiums written based on the location of the underlying risk for the years ended December 31, 2015 , 2014 and 2013 : 2015 2014 2013 Asia, Australia and New Zealand 12 % 11 % 11 % Europe 37 40 40 Latin America, Caribbean and Africa 10 10 10 North America 41 39 39 Total 100 % 100 % 100 % |
Segment disclosure for major brokers | The following table summarizes the percentage of gross premiums written through these two brokers by segment and sub-segment for the years ended December 31, 2015 , 2014 and 2013 : 2015 2014 2013 Non-life North America 63 % 59 % 60 % Global (Non-U.S.) P&C 28 31 29 Global Specialty 38 38 41 Catastrophe 75 70 74 Life and Health 16 12 12 |
Unaudited Quarterly Financial53
Unaudited Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | 2015 2014 (in millions of U.S. dollars, except per share amounts) Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter Net premiums written $ 1,064 $ 1,190 $ 1,322 $ 1,653 $ 1,220 $ 1,343 $ 1,419 $ 1,738 Net premiums earned 1,294 1,412 1,328 1,235 1,446 1,557 1,353 1,254 Net investment income 108 117 120 105 115 118 130 117 Net realized and unrealized investment (losses) gains (24 ) (133 ) (256 ) 116 98 (34 ) 166 142 Other income 1 3 — 4 4 2 9 — Total revenues 1,379 1,399 1,192 1,460 1,663 1,643 1,658 1,513 Losses and loss expenses and life policy benefits 767 804 865 721 870 960 884 749 Acquisition costs 311 347 283 276 325 322 303 265 Other expenses 120 416 130 125 123 108 107 111 Interest expense 12 12 12 12 12 12 12 12 Amortization of intangible assets 6 7 7 7 6 7 7 7 Net foreign exchange (gains) losses (6 ) 22 6 (13 ) (7 ) (8 ) (2 ) — Total expenses 1,210 1,608 1,303 1,128 1,329 1,401 1,311 1,144 Income (loss) before taxes and interest in earnings (losses) of equity method investments 169 (209 ) (111 ) 332 334 242 347 369 Income tax (benefit) expense (3 ) 17 (14 ) 80 53 46 78 62 Interest in earnings (losses) of equity method investments 5 (3 ) 8 (4 ) (1 ) 5 5 6 Net income (loss) 177 (229 ) (89 ) 248 280 201 274 313 Net income attributable to noncontrolling interests — — — (2 ) (3 ) (5 ) (2 ) (3 ) Net income (loss) attributable to PartnerRe Ltd. 177 (229 ) (89 ) 246 277 196 272 310 Preferred dividends 14 14 14 14 14 14 14 14 Net income (loss) attributable to PartnerRe Ltd. common shareholders $ 163 $ (243 ) $ (103 ) $ 232 $ 263 $ 182 $ 258 $ 296 Basic net income (loss) per common share $ 3.39 $ (5.08 ) $ (2.16 ) $ 4.88 $ 5.39 $ 3.68 $ 5.13 $ 5.72 Diluted net income (loss) per common share $ 3.30 $ (5.08 ) $ (2.16 ) $ 4.76 $ 5.26 $ 3.60 $ 5.02 $ 5.61 Dividends declared per common share $ 0.70 $ 0.70 $ 0.70 $ 0.70 $ 0.67 $ 0.67 $ 0.67 $ 0.67 |
Organization Organization (Deta
Organization Organization (Details) - USD ($) $ / shares in Units, $ in Millions | Aug. 03, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2020 | Apr. 14, 2015 |
Business Acquisition [Line Items] | |||||
Termination Fee Paid | $ 315 | ||||
EXOR S.p.A. [Member] | |||||
Business Acquisition [Line Items] | |||||
BusinessAcquisitionPercentageOfVotingInterestsProposedToBeAcquired | 100.00% | ||||
Business Acquisition, Share Price | $ 137.50 | $ 130 | |||
Special Dividend Per Share | $ 3 | ||||
EXOR S.p.A. [Member] | Subsequent Event [Member] | |||||
Business Acquisition [Line Items] | |||||
Preferred Stock Contingent Cash Payments | $ 42.7 | ||||
Preferred Stock Contingent Cash Payments Per Share | $ 1.25 | ||||
Maximum Earnings Distributable | 67.00% | ||||
Axis Capital Holdings Ltd [Member] | |||||
Business Acquisition [Line Items] | |||||
Termination Fee Paid | $ 315 |
Fair Value - Hierarchy table (D
Fair Value - Hierarchy table (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | $ 13,448,262 | $ 13,918,745 |
Short-term investments | 46,688 | 25,678 |
Equities | 443,861 | 1,056,514 |
Other invested assets | 190,899 | 111,476 |
Funds held - directly managed | 399,899 | 472,593 |
Total | 14,529,609 | 15,585,006 |
Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Funds held - directly managed | 966 | |
Derivative assets [Member] | Foreign exchange forward contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 15,311 | 20,033 |
Derivative assets [Member] | Futures contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 5,675 | 846 |
Derivative assets [Member] | Insurance-linked securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 9,428 | 3 |
Derivative assets [Member] | Total return swaps [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 2,745 | 485 |
Derivative assets [Member] | TBAs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 154 | |
Derivative liabilities [Member] | Foreign exchange forward contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | (15,109) | (7,446) |
Derivative liabilities [Member] | Foreign currency option contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | (1,196) | |
Derivative liabilities [Member] | Futures contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | (140) | (467) |
Derivative liabilities [Member] | Insurance-linked securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | (3,944) | (339) |
Derivative liabilities [Member] | Total return swaps [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | (2,878) | (2,007) |
Derivative liabilities [Member] | Interest rate swaps [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | (24,383) | (16,282) |
Derivative liabilities [Member] | TBAs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | (1,462) | (240) |
Notes And Loan Receivables And Notes Securitization [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 125,922 | 44,817 |
Annuities and residuals [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 8,436 | 13,243 |
Private equities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 71,298 | 59,872 |
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 | 10,146 | 13,398 |
Insurance [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 80,025 | 145,437 |
Finance [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 57,679 | 98,328 |
Real estate investment trust [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 46,379 | 213,770 |
Consumer noncyclical [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 43,375 | 100,134 |
Industrials [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 34,264 | 49,983 |
Technology [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 29,384 | 61,262 |
Consumer cyclical [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 25,871 | 39,002 |
Communications [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 22,924 | 54,469 |
Energy [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 123,978 | |
Utilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 31,748 | |
Other equities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 28,197 | 11,571 |
Mutual funds and exchange traded funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 75,763 | 126,832 |
U.S. government and government sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 2,872,845 | 2,315,422 |
Funds held - directly managed | 169,951 | 153,483 |
U.S. states, territories and municipalities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 778,326 | 530,603 |
Funds held - directly managed | 132 | |
Non US sovereign government supranational and government related [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 1,332,925 | 1,976,202 |
Funds held - directly managed | 119,487 | 128,233 |
Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 5,086,199 | 5,604,160 |
Funds held - directly managed | 99,349 | 177,347 |
Asset-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 1,037,816 | 1,131,420 |
Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 2,290,640 | 2,306,476 |
Other mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 49,511 | 54,462 |
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 | 385,608 | 1,004,505 |
Other invested assets | 5,535 | 379 |
Funds held - directly managed | 0 | 0 |
Total | 391,143 | 1,004,884 |
Quoted prices in active markets for identical assets (Level 1) | Short-term investments | ||
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] | Futures contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 5,675 | 846 |
Quoted prices in active markets for identical assets (Level 1) | Derivative assets [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 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] | 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 | |
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 | (140) | (467) |
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) | Insurance [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 72,226 | 140,916 |
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 | 29,422 | 70,621 |
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 | 46,379 | 213,770 |
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 | 43,375 | 100,134 |
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 | 26,863 | 49,983 |
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 | 21,177 | 52,707 |
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 | 25,871 | 39,002 |
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 | 20,939 | 51,829 |
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 | 123,978 | |
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 | 31,748 | |
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 | 28,197 | 11,571 |
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 | 71,159 | 118,246 |
Quoted prices in active markets for identical assets (Level 1) | U.S. government and government sponsored enterprises | ||
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) | U.S. states, territories and municipalities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Funds held - directly managed | 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 | ||
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 | ||
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 | ||
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 | 12,939,716 | 13,319,099 |
Short-term investments | 46,688 | 25,678 |
Equities | 20,697 | 11,875 |
Other invested assets | (25,643) | (4,977) |
Funds held - directly managed | 389,753 | 459,063 |
Total | 13,371,211 | 13,810,738 |
Significant other observable inputs (Level 2) | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Funds held - directly managed | 966 | |
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 | 15,311 | 20,033 |
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] | 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 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] | TBAs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 154 | |
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 | (15,109) | (7,446) |
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 | (1,196) | |
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 | 0 |
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 | (24,383) | (16,282) |
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 | (1,462) | (240) |
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) | Insurance [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 7,799 | 4,521 |
Significant other observable inputs (Level 2) | Finance [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 5,497 | 7,354 |
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) | 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) | Industrials [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 7,401 | 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) | 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) | Communications [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 | |
Significant other observable inputs (Level 2) | Utilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 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 | 0 |
Significant other observable inputs (Level 2) | U.S. government and government sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 2,872,845 | 2,315,422 |
Funds held - directly managed | 169,951 | 153,483 |
Significant other observable inputs (Level 2) | U.S. states, territories and municipalities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 639,479 | 380,875 |
Funds held - directly managed | 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 | 1,332,925 | 1,976,202 |
Funds held - directly managed | 119,487 | 128,233 |
Significant other observable inputs (Level 2) | Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 5,086,199 | 5,604,160 |
Funds held - directly managed | 99,349 | 177,347 |
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 | 668,117 | 681,502 |
Significant other observable inputs (Level 2) | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 2,290,640 | 2,306,476 |
Significant other observable inputs (Level 2) | Other mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 49,511 | 54,462 |
Significant unobservable inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 508,546 | 599,646 |
Short-term investments | 0 | 0 |
Equities | 37,556 | 40,134 |
Other invested assets | 211,007 | 116,074 |
Funds held - directly managed | 10,146 | 13,530 |
Total | 767,255 | 769,384 |
Significant unobservable inputs (Level 3) [Member] | Short-term investments | ||
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] | 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] | Insurance-linked securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 9,428 | 3 |
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 | 2,745 | 485 |
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 | |
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 | 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 | (3,944) | (339) |
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 | (2,878) | (2,007) |
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 | 125,922 | 44,817 |
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 | 8,436 | 13,243 |
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 | 71,298 | 59,872 |
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 | 10,146 | 13,398 |
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 | 22,760 | 20,353 |
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] | 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] | Industrials [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 0 | 0 |
Significant unobservable inputs (Level 3) [Member] | Technology [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 8,207 | 8,555 |
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] | Communications [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 1,985 | 2,640 |
Significant unobservable inputs (Level 3) [Member] | Energy [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 0 | |
Significant unobservable inputs (Level 3) [Member] | Utilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 0 | |
Significant unobservable inputs (Level 3) [Member] | Other equities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 0 | 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 | 4,604 | 8,586 |
Significant unobservable inputs (Level 3) [Member] | U.S. government and government sponsored enterprises | ||
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] | U.S. states, territories and municipalities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 138,847 | 149,728 |
Funds held - directly managed | 132 | |
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 | ||
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 | 369,699 | 449,918 |
Significant unobservable inputs (Level 3) [Member] | Residential mortgage-backed securities | ||
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 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | $ 0 | $ 0 |
Fair Value - narrative items (D
Fair Value - narrative items (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value - Other Details [Line Items] | ||||
Carrying amount of other invested assets not at fair value | $ 208,000 | |||
Fair Value Assets Level 2 To Level 1 Transfers Amount | 0 | $ 0 | ||
Cash and cash equivalents | 1,577,097 | 1,313,468 | $ 1,496,485 | $ 1,121,705 |
Accrued investment income | 141,672 | 158,737 | ||
Funds held directly managed [Member] | ||||
Fair Value - Other Details [Line Items] | ||||
Other net assets | 70,700 | 88,300 | ||
Cash and cash equivalents | 64,600 | 42,300 | ||
Accrued investment income | 4,500 | 5,700 | ||
Trading securities [Member] | Other invested assets [Member] | ||||
Fair Value - Other Details [Line Items] | ||||
Carrying amount of other invested assets not at fair value | $ 208,300 | $ 187,300 |
Fair Value - Level 3 rollforwar
Fair Value - Level 3 rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Balance, beginning of year | $ 769,384 | $ 712,306 | |||
Realized and unrealized investment gains (losses) included in net income | 3,230 | 15,992 | |||
Purchases | 538,137 | 288,726 | |||
Settlements | (543,496) | [1] | (247,640) | [2] | |
Net transfers into/ (out of) Level 3 | 0 | 0 | |||
Balance, end of year | 767,255 | 769,384 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of year | 9,630 | 17,972 | |||
Fixed maturities | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Balance, beginning of year | 599,646 | 554,957 | |||
Realized and unrealized investment gains (losses) included in net income | 5,452 | 20,491 | |||
Purchases | 187,689 | 224,410 | |||
Settlements | (284,241) | [1] | (200,212) | [2] | |
Net transfers into/ (out of) Level 3 | 0 | 0 | |||
Balance, end of year | 508,546 | 599,646 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of year | 6,282 | 20,931 | |||
Fixed maturities | U.S. states, territories and municipalities | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Balance, beginning of year | 149,728 | 108,380 | |||
Realized and unrealized investment gains (losses) included in net income | 16,660 | 12,322 | |||
Purchases | 16,440 | 31,470 | |||
Settlements | (43,981) | [1] | (2,444) | [2] | |
Net transfers into/ (out of) Level 3 | 0 | 0 | |||
Balance, end of year | 138,847 | 149,728 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of year | 16,650 | 12,315 | |||
Fixed maturities | Asset-backed securities [Member] | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Balance, beginning of year | 449,918 | 446,577 | |||
Realized and unrealized investment gains (losses) included in net income | (11,208) | 8,169 | |||
Purchases | 171,249 | 192,940 | |||
Settlements | (240,260) | [1] | (197,768) | [2] | |
Net transfers into/ (out of) Level 3 | 0 | 0 | |||
Balance, end of year | 369,699 | 449,918 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of year | (10,368) | 8,616 | |||
Equities | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Balance, beginning of year | 40,134 | 38,045 | |||
Realized and unrealized investment gains (losses) included in net income | 2,008 | 2,089 | |||
Purchases | 249,340 | 8 | |||
Settlements | (253,926) | [1] | (8) | [2] | |
Net transfers into/ (out of) Level 3 | 0 | 0 | |||
Balance, end of year | 37,556 | 40,134 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of year | 528 | 2,089 | |||
Equities | Finance [Member] | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Balance, beginning of year | 20,353 | 20,207 | |||
Realized and unrealized investment gains (losses) included in net income | 2,540 | 146 | |||
Purchases | 0 | 0 | |||
Settlements | (133) | [1] | 0 | [2] | |
Net transfers into/ (out of) Level 3 | 0 | 0 | |||
Balance, end of year | 22,760 | 20,353 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of year | 2,540 | 146 | |||
Equities | Technology [Member] | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Balance, beginning of year | 8,555 | 7,752 | |||
Realized and unrealized investment gains (losses) included in net income | (348) | 803 | |||
Purchases | 0 | 0 | |||
Settlements | 0 | [1] | 0 | [2] | |
Net transfers into/ (out of) Level 3 | 0 | 0 | |||
Balance, end of year | 8,207 | 8,555 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of year | (348) | 803 | |||
Equities | Communications [Member] | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Balance, beginning of year | 2,640 | 2,199 | |||
Realized and unrealized investment gains (losses) included in net income | (655) | 441 | |||
Purchases | 0 | 0 | |||
Settlements | 0 | [1] | 0 | [2] | |
Net transfers into/ (out of) Level 3 | 0 | 0 | |||
Balance, end of year | 1,985 | 2,640 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of year | (655) | 441 | |||
Equities | Other equities [Member] | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Balance, beginning of year | 0 | 0 | |||
Realized and unrealized investment gains (losses) included in net income | 0 | ||||
Purchases | 8 | ||||
Settlements | [2] | (8) | |||
Net transfers into/ (out of) Level 3 | 0 | ||||
Balance, end of year | 0 | ||||
Change in unrealized investment gains (losses) relating to assets held at the end of year | 0 | ||||
Equities | Mutual funds and exchange traded funds [Member] | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Balance, beginning of year | 8,586 | 7,887 | |||
Realized and unrealized investment gains (losses) included in net income | 471 | 699 | |||
Purchases | 249,340 | 0 | |||
Settlements | (253,793) | [1] | 0 | [2] | |
Sales | [1] | 4,400 | |||
Net transfers into/ (out of) Level 3 | 0 | 0 | |||
Balance, end of year | 4,604 | 8,586 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of year | (1,009) | 699 | |||
Other invested assets [Member] | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Balance, beginning of year | 116,074 | 103,853 | |||
Realized and unrealized investment gains (losses) included in net income | (1,046) | (4,487) | |||
Purchases | 101,108 | 63,527 | |||
Settlements | (5,129) | [1] | (46,819) | [2] | |
Net transfers into/ (out of) Level 3 | 0 | 0 | |||
Balance, end of year | 211,007 | 116,074 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of year | 6,072 | (2,959) | |||
Other invested assets [Member] | Derivatives, net [Member] | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Balance, beginning of year | (1,858) | (788) | |||
Realized and unrealized investment gains (losses) included in net income | 804 | (759) | |||
Purchases | (2,051) | [3] | (871) | [4] | |
Issuances | 2,100 | 900 | |||
Settlements | 8,456 | [1] | 560 | [2] | |
Net transfers into/ (out of) Level 3 | 0 | 0 | |||
Balance, end of year | 5,351 | (1,858) | |||
Change in unrealized investment gains (losses) relating to assets held at the end of year | 7,648 | (759) | |||
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 | 44,817 | 41,446 | |||
Realized and unrealized investment gains (losses) included in net income | (2,223) | (372) | |||
Purchases | 88,675 | 35,988 | |||
Settlements | (5,347) | [1] | (32,245) | [2] | |
Net transfers into/ (out of) Level 3 | 0 | 0 | |||
Balance, end of year | 125,922 | 44,817 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of year | (2,223) | 1,147 | |||
Other invested assets [Member] | Annuities and residuals [Member] | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Balance, beginning of year | 13,243 | 24,064 | |||
Realized and unrealized investment gains (losses) included in net income | (866) | (207) | |||
Purchases | 0 | 0 | |||
Settlements | (3,941) | [1] | (10,614) | [2] | |
Net transfers into/ (out of) Level 3 | 0 | 0 | |||
Balance, end of year | 8,436 | 13,243 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of year | (472) | (167) | |||
Other invested assets [Member] | Private equities [Member] | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Balance, beginning of year | 59,872 | 39,131 | |||
Realized and unrealized investment gains (losses) included in net income | 1,239 | (3,149) | |||
Purchases | 14,484 | 28,410 | |||
Settlements | (4,297) | [1] | (4,520) | [2] | |
Sales | [1] | 200 | |||
Net transfers into/ (out of) Level 3 | 0 | 0 | |||
Balance, end of year | 71,298 | 59,872 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of year | 1,119 | (3,180) | |||
Funds Held - Directly Managed [Member] | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Balance, beginning of year | 13,530 | 15,451 | |||
Realized and unrealized investment gains (losses) included in net income | (3,184) | (2,101) | |||
Purchases | 0 | 781 | |||
Settlements | (200) | [1] | (601) | [2] | |
Net transfers into/ (out of) Level 3 | 0 | 0 | |||
Balance, end of year | 10,146 | 13,530 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of year | (3,252) | (2,089) | |||
Funds Held - Directly Managed [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 | 13,398 | 15,165 | |||
Realized and unrealized investment gains (losses) included in net income | (3,252) | (2,102) | |||
Purchases | 0 | 781 | |||
Settlements | 0 | [1] | (446) | [2] | |
Net transfers into/ (out of) Level 3 | 0 | 0 | |||
Balance, end of year | 10,146 | 13,398 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of year | (3,252) | (2,102) | |||
Funds Held - Directly Managed [Member] | U.S. states, territories and municipalities | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Balance, beginning of year | 132 | 286 | |||
Realized and unrealized investment gains (losses) included in net income | 68 | 1 | |||
Purchases | 0 | 0 | |||
Settlements | (200) | [1] | (155) | [2] | |
Net transfers into/ (out of) Level 3 | 0 | 0 | |||
Balance, end of year | 0 | 132 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of year | $ 0 | $ 13 | |||
[1] | Settlements and sales of mutual funds and exchange traded funds and private equities include sales of $4.4 million and $0.2 million, respectively. | ||||
[2] | There were no sales for the year ended December 31, 2014. | ||||
[3] | Purchases and issuances of derivatives include issuances of $2.1 million. | ||||
[4] | Purchases and issuances of derivatives include issuances of $0.9 million. |
Fair Value - Valuation Techniqu
Fair Value - Valuation Technique and Inputs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fixed maturities | $ 13,448,262 | $ 13,918,745 |
Equities | 443,861 | 1,056,514 |
Other invested assets carried at fair value | 190,899 | 111,476 |
Funds held directly managed investments carried at fair value | 399,899 | 472,593 |
Significant unobservable inputs (Level 3) [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fixed maturities | 508,546 | 599,646 |
Equities | 37,556 | 40,134 |
Other invested assets carried at fair value | 211,007 | 116,074 |
Funds held directly managed investments carried at fair value | 10,146 | 13,530 |
U.S. states, territories and municipalities | Discounted cash flow [Member] | Significant unobservable inputs (Level 3) [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fixed maturities | $ 138,847 | $ 149,728 |
U.S. states, territories and municipalities | Minimum [Member] | Discounted cash flow [Member] | Significant unobservable inputs (Level 3) [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Credit spreads | 1.20% | 2.20% |
U.S. states, territories and municipalities | Maximum [Member] | Discounted cash flow [Member] | Significant unobservable inputs (Level 3) [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Credit spreads | 10.30% | 10.10% |
U.S. states, territories and municipalities | Weighted Average [Member] | Discounted cash flow [Member] | Significant unobservable inputs (Level 3) [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Credit spreads | 4.10% | 4.60% |
Asset-backed securities [Member] | Discounted cash flow [Member] | Significant unobservable inputs (Level 3) [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fixed maturities | $ 369,699 | $ 449,918 |
Asset-backed securities [Member] | Minimum [Member] | Discounted cash flow [Member] | Significant unobservable inputs (Level 3) [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Credit spreads | 4.10% | 4.00% |
Asset-backed securities [Member] | Maximum [Member] | Discounted cash flow [Member] | Significant unobservable inputs (Level 3) [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Credit spreads | 11.40% | 12.10% |
Asset-backed securities [Member] | Weighted Average [Member] | Discounted cash flow [Member] | Significant unobservable inputs (Level 3) [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Credit spreads | 7.70% | 7.10% |
Finance [Member] | Weighted market comparables [Member] | Significant unobservable inputs (Level 3) [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Equities | $ 16,627 | $ 14,561 |
Finance [Member] | Profitability Analysis [Member] | Significant unobservable inputs (Level 3) [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Equities | $ 6,133 | $ 5,792 |
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 | 14.4 | 19 |
Tangible book value multiple | 1.5 | 1.3 |
Liquidity discount | 25.00% | 25.00% |
Comparable return | 7.90% | 7.30% |
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 | 14.4 | 19 |
Tangible book value multiple | 1.5 | 1.3 |
Liquidity discount | 25.00% | 25.00% |
Comparable return | 7.90% | 7.30% |
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 | 14.4 | 19 |
Tangible book value multiple | 1.5 | 1.3 |
Liquidity discount | 25.00% | 25.00% |
Comparable return | 7.90% | 7.30% |
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% |
Technology [Member] | Weighted market comparables [Member] | Significant unobservable inputs (Level 3) [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Equities | $ 8,207 | $ 8,555 |
Technology [Member] | Minimum [Member] | Weighted market comparables [Member] | Significant unobservable inputs (Level 3) [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Gross revenue/fair value | 1.2 | 1.6 |
Technology [Member] | Maximum [Member] | Weighted market comparables [Member] | Significant unobservable inputs (Level 3) [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Gross revenue/fair value | 1.2 | 1.6 |
Technology [Member] | Weighted Average [Member] | Weighted market comparables [Member] | Significant unobservable inputs (Level 3) [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Gross revenue/fair value | 1.2 | 1.6 |
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 | 8.4 | 10.2 |
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 | 8.4 | 10.2 |
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 | 8.4 | 10.2 |
Communications [Member] | Weighted market comparables [Member] | Significant unobservable inputs (Level 3) [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Equities | $ 1,985 | $ 2,640 |
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 | 0.00% | (10.60%) |
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 | 0.00% | (10.60%) |
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 | 0.00% | (10.60%) |
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 | $ (133) | $ (1,522) |
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 | 3.00% | 3.60% |
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 | 29.30% | 19.30% |
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 | 16.50% | 16.30% |
Insurance-linked securities- longevity 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 | $ 9,428 | |
Insurance-linked securities- longevity swaps [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% | |
Insurance-linked securities- longevity swaps [Member] | Maximum [Member] | Discounted cash flow [Member] | Significant unobservable inputs (Level 3) [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Credit spreads | 2.40% | |
Insurance-linked securities- longevity 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 | 2.40% | |
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 | $ 10,415 | $ 13,237 |
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 | 1.1 | 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 | 1.5 | 1.7 |
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 | 1.5 | 1.7 |
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 | $ 84,080 | $ 8,068 |
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 | 6.00% | 12.60% |
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 | 26.80% | 12.60% |
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 | 7.40% | 12.60% |
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 | $ 31,427 | $ 23,512 |
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 | 2.40% | 3.50% |
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 | 7.10% | 6.60% |
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 | 6.90% | 6.40% |
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 | $ 8,436 | $ 13,243 |
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 | 5.10% | 4.90% |
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 | 15.40% | 9.60% |
Prepayment speed | 15.00% | 15.00% |
Constant default rate | 17.50% | 17.50% |
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 | 12.70% | 7.80% |
Prepayment speed | 2.10% | 4.30% |
Constant default rate | 4.40% | 6.30% |
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 | $ 8,792 | $ 8,536 |
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 | 9.2 | 9 |
Tangible book value multiple | 1.9 | 2 |
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 | 9.2 | 9 |
Tangible book value multiple | 1.9 | 2 |
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 | 9.2 | 9 |
Tangible book value multiple | 1.9 | 2 |
Recoverability of intangible assets | 0 | 0 |
Private equity funds [Member] | Reported market value | Significant unobservable inputs (Level 3) [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Other invested assets carried at fair value | $ 29,222 | $ 18,494 |
Private equity funds [Member] | Minimum [Member] | 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 | (4.90%) | (7.60%) |
Private equity funds [Member] | Maximum [Member] | 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 | 5.20% | 11.00% |
Private equity funds [Member] | Weighted Average [Member] | 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 | (0.50%) | (1.60%) |
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 | $ 33,284 | $ 32,842 |
Private Equity - Other [Member] | Minimum [Member] | Discounted cash flow [Member] | Significant unobservable inputs (Level 3) [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Effective Yield | 5.80% | 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] | ||
Effective Yield | 5.80% | 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] | ||
Effective Yield | 5.80% | 5.80% |
Other invested assets [Member] | 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 | $ 10,146 | $ 13,398 |
Other invested assets [Member] | Minimum [Member] | 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 | (16.00%) | (15.40%) |
Other invested assets [Member] | Maximum [Member] | 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] | 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 | (15.00%) | (14.50%) |
Fair Value - Change in fair val
Fair Value - Change in fair value option table (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Change in unrealized gain/loss | $ (472,495) | $ 230,104 | $ (442,597) |
Fixed maturities and short term investments [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Change in unrealized gain/loss | (276,776) | 228,781 | (525,787) |
Equities | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Change in unrealized gain/loss | (187,561) | 2,605 | 118,010 |
Other invested assets [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Change in unrealized gain/loss | (1,835) | (2,664) | (6,970) |
Funds Held - Directly Managed [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Change in unrealized gain/loss | $ (6,323) | $ 1,382 | $ (27,850) |
Fair Value Fair Value of Liabil
Fair Value Fair Value of Liabilities - (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair value of financial instrument liabilities [Line Items] | |||
Debt related to senior notes | $ 750,000 | $ 750,000 | |
Debt related to capital efficient notes | 70,989 | 70,989 | |
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 | 250,000 | |
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 | 500,000 | |
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 | 63,000 | |
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 | [1] | 829,755 | 853,792 |
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 | [2] | 63,265 | 62,309 |
Carrying value [Member] | Senior Notes Debt [Member] | |||
Fair value of financial instrument liabilities [Line Items] | |||
Debt related to senior notes | [1] | 750,000 | 750,000 |
Carrying value [Member] | Capital efficient notes [Member] | |||
Fair value of financial instrument liabilities [Line Items] | |||
Debt related to capital efficient notes | [2] | $ 63,384 | $ 63,384 |
[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 Consolidated Balance Sheets at December 31, 2015 and 2014. | ||
[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 $71 million in its Consolidated Balance Sheets at December 31, 2015 and 2014. |
Investments Cost, unrealized ga
Investments Cost, unrealized gains and losses and fair value - (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule Of Trading Securities And Other Trading Assets [Line Items] | |||
Cost | [1] | $ 13,778,936 | $ 14,358,761 |
Gross unrealized gains | 380,754 | 731,950 | |
Gross unrealized losses | (220,879) | (89,774) | |
Fair value | 13,938,811 | 15,000,937 | |
Trading securities [Member] | Fixed maturities | |||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | |||
Cost | [1] | 13,313,819 | 13,489,633 |
Gross unrealized gains | 309,393 | 491,279 | |
Gross unrealized losses | (174,950) | (62,167) | |
Fair value | 13,448,262 | 13,918,745 | |
Trading securities [Member] | Fixed maturities | U.S. government and government sponsored enterprises | |||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | |||
Cost | [1] | 2,887,000 | 2,308,264 |
Gross unrealized gains | 4,253 | 13,350 | |
Gross unrealized losses | (18,408) | (6,192) | |
Fair value | 2,872,845 | 2,315,422 | |
Trading securities [Member] | Fixed maturities | U.S. states, territories and municipalities | |||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | |||
Cost | [1] | 743,413 | 511,228 |
Gross unrealized gains | 39,543 | 21,058 | |
Gross unrealized losses | (4,630) | (1,683) | |
Fair value | 778,326 | 530,603 | |
Trading securities [Member] | Fixed maturities | Non-U.S. sovereign government, supranational and government related | |||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | |||
Cost | [1] | 1,271,416 | 1,866,915 |
Gross unrealized gains | 71,399 | 112,029 | |
Gross unrealized losses | (9,890) | (2,742) | |
Fair value | 1,332,925 | 1,976,202 | |
Trading securities [Member] | Fixed maturities | Corporate | |||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | |||
Cost | [1] | 5,035,006 | 5,363,006 |
Gross unrealized gains | 138,678 | 263,349 | |
Gross unrealized losses | (87,485) | (22,195) | |
Fair value | 5,086,199 | 5,604,160 | |
Trading securities [Member] | Fixed maturities | Asset-backed securities [Member] | |||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | |||
Cost | [1] | 1,040,144 | 1,110,393 |
Gross unrealized gains | 13,341 | 23,131 | |
Gross unrealized losses | (15,669) | (2,104) | |
Fair value | 1,037,816 | 1,131,420 | |
Trading securities [Member] | Fixed maturities | Residential mortgage-backed securities | |||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | |||
Cost | [1] | 2,287,173 | 2,276,200 |
Gross unrealized gains | 41,154 | 56,875 | |
Gross unrealized losses | (37,687) | (26,599) | |
Fair value | 2,290,640 | 2,306,476 | |
Trading securities [Member] | Fixed maturities | Other mortgage-backed securities | |||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | |||
Cost | [1] | 49,667 | 53,627 |
Gross unrealized gains | 1,025 | 1,487 | |
Gross unrealized losses | (1,181) | (652) | |
Fair value | 49,511 | 54,462 | |
Trading securities [Member] | Short-term investments | |||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | |||
Cost | [1] | 46,689 | 25,699 |
Gross unrealized gains | 33 | 4 | |
Gross unrealized losses | (34) | (25) | |
Fair value | 46,688 | 25,678 | |
Trading securities [Member] | Equities | |||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | |||
Cost | [1] | 418,428 | 843,429 |
Gross unrealized gains | 71,328 | 240,667 | |
Gross unrealized losses | (45,895) | (27,582) | |
Fair value | $ 443,861 | $ 1,056,514 | |
[1] | Cost is amortized cost for fixed maturities and short-term investments and cost for equity securities. |
Investments Maturity profile (D
Investments Maturity profile (Details) - Trading securities [Member] $ in Thousands | Dec. 31, 2015USD ($) |
Amortized Cost | |
Maturity Profile [Line Items] | |
One year or less | $ 556,422 |
More than one year through five years | 4,552,338 |
More than five years through ten years | 3,336,663 |
More than ten years | 1,538,101 |
Subtotal | 9,983,524 |
Mortgage/asset-backed securities | 3,376,984 |
Total | 13,360,508 |
Fair Value | |
Maturity Profile [Line Items] | |
One year or less | 555,956 |
More than one year through five years | 4,608,744 |
More than five years through ten years | 3,341,696 |
More than ten years | 1,610,587 |
Subtotal | 10,116,983 |
Mortgage/asset-backed securities | 3,377,967 |
Total | $ 13,494,950 |
Net Realized and Unrealized Inv
Net Realized and Unrealized Investment (Losses) Gains (Details) - Trading securities [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Net Realized and Unrealized Investment (Losses) Gains | |||
Total net realized and unrealized investment (losses) gains | $ (297,479) | $ 371,796 | $ (160,735) |
Fixed maturities and short term investments [Member] | |||
Schedule of Net Realized and Unrealized Investment (Losses) Gains | |||
Net realized investment gains (losses) on trading securities | 66,296 | 120,734 | 118,575 |
Change in net unrealized investment gains (losses) | (276,776) | 228,781 | (525,787) |
Equities | |||
Schedule of Net Realized and Unrealized Investment (Losses) Gains | |||
Net realized investment gains (losses) on trading securities | 137,609 | 98,733 | 75,217 |
Change in net unrealized investment gains (losses) | (187,561) | 2,605 | 118,010 |
Other invested assets [Member] | |||
Schedule of Net Realized and Unrealized Investment (Losses) Gains | |||
Net realized investment gains (losses) on trading securities | (33,317) | (20,686) | 20,497 |
Change in net unrealized investment gains (losses) | 844 | (58,180) | 56,652 |
Other realized and unrealized investments gains (losses) [Member] | |||
Schedule of Net Realized and Unrealized Investment (Losses) Gains | |||
Net other realized and unrealized investment gains (losses) | 1,053 | (3,624) | (2,107) |
Funds Held - Directly Managed [Member] | |||
Schedule of Net Realized and Unrealized Investment (Losses) Gains | |||
Net realized investment gains (losses) on trading securities | $ (5,627) | $ 3,433 | $ (21,792) |
Investments Investment Income (
Investments Investment Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net Investment Income [Line Items] | |||||||||||
Net investment income | $ 108,000 | $ 117,000 | $ 120,000 | $ 105,000 | $ 115,000 | $ 118,000 | $ 130,000 | $ 117,000 | $ 449,784 | $ 479,696 | $ 484,367 |
Trading securities [Member] | Fixed maturities | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Net investment income | 425,541 | 443,414 | 446,299 | ||||||||
Trading securities [Member] | Short Term Investments, Cash And Cash Equivalents[Member] | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Net investment income | 854 | 868 | 1,886 | ||||||||
Trading securities [Member] | Equities | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Net investment income | 30,739 | 40,326 | 32,989 | ||||||||
Trading securities [Member] | Funds Held And Other [Member] | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Net investment income | 27,406 | 33,192 | 34,215 | ||||||||
Trading securities [Member] | Funds Held - Directly Managed [Member] | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Net investment income | 11,676 | 13,841 | 20,502 | ||||||||
Trading securities [Member] | Investment Expenses [Member] | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Net investment income | $ (46,432) | $ (51,945) | $ (51,524) |
Investments Pledged assets and
Investments Pledged assets and net payable receivable for securities purchased sold (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pledged assets and net payable for securities purchased [Line Items] | |||
Funds Held Investment Interest Rate Range Low | 0.10% | 2.10% | 1.80% |
Funds Held Investment Interest Rate Range High | 8.00% | 5.40% | 4.30% |
Restricted Cash and Cash Equivalents | $ 164,800 | $ 172,300 | |
Marketable Securities, Restricted | 2,168,300 | 2,455,600 | |
Receivable for securities sold | 34,497 | 51,586 | |
Payable for securities purchased | (219,707) | (63,779) | |
Net payable for securities purchased | $ (185,210) | $ (12,193) |
Funds Held - Directly Managed C
Funds Held - Directly Managed Cost, unrealized gains (losses) and fair value - (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||||||
Cost | [1] | $ 13,778,936 | $ 14,358,761 | |||
Gross unrealized gains | 380,754 | 731,950 | ||||
Gross unrealized losses | (220,879) | (89,774) | ||||
Fair value | 13,938,811 | 15,000,937 | ||||
Cash and cash equivalents | 1,577,097 | 1,313,468 | $ 1,496,485 | $ 1,121,705 | ||
Accrued investment income | 141,672 | 158,737 | ||||
Funds held directly managed [Member] | ||||||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||||||
Cost | 397,843 | 464,273 | [2] | |||
Gross unrealized gains | 13,660 | 20,488 | ||||
Gross unrealized losses | (11,578) | (12,015) | ||||
Fair value | 399,925 | 472,746 | ||||
Cash and cash equivalents | 64,600 | 42,300 | ||||
Other Assets Funds Held Directly Managed | 70,700 | 88,200 | ||||
Accrued investment income | 4,500 | 5,700 | ||||
Funds held directly managed [Member] | Fixed maturities | ||||||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||||||
Cost | 375,646 | 438,885 | [2] | |||
Gross unrealized gains | 13,660 | 20,488 | ||||
Gross unrealized losses | (519) | (178) | ||||
Fair value | 388,787 | 459,195 | ||||
Funds held directly managed [Member] | Fixed maturities | U.S. government and government sponsored enterprises | ||||||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||||||
Cost | 168,197 | 150,242 | [2] | |||
Gross unrealized gains | 2,209 | 3,302 | ||||
Gross unrealized losses | (455) | (61) | ||||
Fair value | 169,951 | 153,483 | ||||
Funds held directly managed [Member] | Fixed maturities | U.S. states, territories and municipalities | ||||||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||||||
Cost | [2] | 214 | ||||
Gross unrealized gains | 0 | |||||
Gross unrealized losses | (82) | |||||
Fair value | 132 | |||||
Funds held directly managed [Member] | Fixed maturities | Non-U.S. sovereign government, supranational and government related | ||||||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||||||
Cost | 112,724 | 119,732 | [2] | |||
Gross unrealized gains | 6,827 | 8,536 | ||||
Gross unrealized losses | (64) | (35) | ||||
Fair value | 119,487 | 128,233 | ||||
Funds held directly managed [Member] | Fixed maturities | Corporate | ||||||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||||||
Cost | 94,725 | 168,697 | [2] | |||
Gross unrealized gains | 4,624 | 8,650 | ||||
Gross unrealized losses | 0 | 0 | ||||
Fair value | 99,349 | 177,347 | ||||
Funds held directly managed [Member] | Short-term investments | ||||||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||||||
Cost | 966 | |||||
Gross unrealized gains | 0 | |||||
Gross unrealized losses | 0 | |||||
Fair value | 966 | |||||
Funds held directly managed [Member] | Other invested assets funds held directly managed [Member] | ||||||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||||||
Cost | 21,231 | 25,388 | [2] | |||
Gross unrealized gains | 0 | 0 | ||||
Gross unrealized losses | (11,059) | (11,837) | ||||
Fair value | $ 10,172 | $ 13,551 | ||||
[1] | Cost is amortized cost for fixed maturities and short-term investments and cost for equity securities. | |||||
[2] | Cost is amortized cost for fixed maturities and short-term investments. |
Funds Held - Directly Managed M
Funds Held - Directly Managed Maturity Profile - (Details) - Funds held directly managed [Member] $ in Thousands | Dec. 31, 2015USD ($) |
Amortized Cost | |
Maturity Profile [Line Items] | |
One year or less | $ 72,450 |
More than one year through five years | 187,504 |
More than five years through ten years | 96,533 |
More than ten years | 20,125 |
Total | 376,612 |
Fair Value | |
Maturity Profile [Line Items] | |
One year or less | 73,144 |
More than one year through five years | 195,500 |
More than five years through ten years | 100,700 |
More than ten years | 20,409 |
Total | $ 389,753 |
Funds Held - Directly Managed R
Funds Held - Directly Managed Realized and Unrealized (Losses) Gains - (Details) - Funds held directly managed [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Net Realized and Unrealized Investment (Losses) Gains | |||
Net realized and unrealized investment (losses) gains on funds held – directly managed | $ (5,627) | $ 3,433 | $ (21,792) |
Fixed maturities and short term investments [Member] | |||
Schedule of Net Realized and Unrealized Investment (Losses) Gains | |||
Net realized investment gains (losses) on funds-held directly managed | 64 | 1,959 | 6,021 |
Change in net unrealized investment gains (losses) on funds-held directly managed | (5,774) | 1,938 | (24,176) |
Other invested assets funds held directly managed [Member] | |||
Schedule of Net Realized and Unrealized Investment (Losses) Gains | |||
Net realized investment gains (losses) on funds-held directly managed | 472 | 53 | 19 |
Change in net unrealized investment gains (losses) on funds-held directly managed | $ (389) | $ (517) | $ (3,656) |
Funds Held - Directly Managed F
Funds Held - Directly Managed Funds Held - Directly Managed Investment Income - (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net Investment Income [Line Items] | |||||||||||
Net investment income | $ 108,000 | $ 117,000 | $ 120,000 | $ 105,000 | $ 115,000 | $ 118,000 | $ 130,000 | $ 117,000 | $ 449,784 | $ 479,696 | $ 484,367 |
Funds held directly managed [Member] | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Net investment income | 11,676 | 13,841 | 20,502 | ||||||||
Funds held directly managed [Member] | Fixed maturities | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Net investment income | 10,528 | 12,789 | 18,804 | ||||||||
Funds held directly managed [Member] | Short Term Investments, Cash And Cash Equivalents[Member] | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Net investment income | 81 | 59 | 1,246 | ||||||||
Funds held directly managed [Member] | Other [Member] | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Net investment income | 1,776 | 1,760 | 1,287 | ||||||||
Funds held directly managed [Member] | Investment Expenses [Member] | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Net investment income | $ (709) | $ (767) | $ (835) |
Derivatives - Balance Sheet (De
Derivatives - Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | |||
Derivative Fair Value Of Derivative Asset | [1] | $ 33,159 | $ 21,521 |
Derivative Fair Value Of Derivative Liability | [1] | (47,916) | (27,977) |
Fair value | (14,757) | (6,456) | |
Derivatives designated as hedges [Member] | |||
Derivative [Line Items] | |||
Derivative Fair Value Of Derivative Asset | 0 | ||
Derivative Fair Value Of Derivative Liability | (9,305) | ||
Fair value | (9,305) | ||
Derivatives designated as hedges [Member] | Foreign exchange forward contracts [Member] | |||
Derivative [Line Items] | |||
Derivative Fair Value Of Derivative Asset | 0 | ||
Derivative Fair Value Of Derivative Liability | (9,305) | ||
Net notional exposure | 392,523 | ||
Fair value | (9,305) | ||
Derivatives designated as hedges [Member] | Euro Member Countries, Euro | Foreign exchange forward contracts [Member] | |||
Derivative [Line Items] | |||
Net notional exposure | 350,000 | ||
Derivatives not designated as hedges [Member] | |||
Derivative [Line Items] | |||
Derivative Fair Value Of Derivative Asset | [1] | 33,159 | |
Derivative Fair Value Of Derivative Liability | [1] | (38,611) | |
Fair value | (5,452) | ||
Derivatives not designated as hedges [Member] | Foreign exchange forward contracts [Member] | |||
Derivative [Line Items] | |||
Derivative Fair Value Of Derivative Asset | 15,311 | 20,033 | |
Derivative Fair Value Of Derivative Liability | (5,804) | (7,446) | |
Net notional exposure | 1,708,285 | 2,080,276 | |
Fair value | 9,507 | 12,587 | |
Derivatives not designated as hedges [Member] | Foreign currency option contracts [Member] | |||
Derivative [Line Items] | |||
Derivative Fair Value Of Derivative Asset | 0 | 0 | |
Derivative Fair Value Of Derivative Liability | 0 | (1,196) | |
Net notional exposure | 82,148 | 43,380 | |
Fair value | 0 | (1,196) | |
Derivatives not designated as hedges [Member] | Futures contracts [Member] | |||
Derivative [Line Items] | |||
Derivative Fair Value Of Derivative Asset | 5,675 | 846 | |
Derivative Fair Value Of Derivative Liability | (140) | (467) | |
Net notional exposure | 3,610,658 | 2,348,735 | |
Fair value | 5,535 | 379 | |
Derivatives not designated as hedges [Member] | Insurance-linked securities [Member] | |||
Derivative [Line Items] | |||
Derivative Fair Value Of Derivative Asset | [2] | 9,428 | 3 |
Derivative Fair Value Of Derivative Liability | [2] | (3,944) | (339) |
Net notional exposure | [2] | 140,320 | 145,481 |
Fair value | [2] | 5,484 | (336) |
Derivatives not designated as hedges [Member] | Total return swaps [Member] | |||
Derivative [Line Items] | |||
Derivative Fair Value Of Derivative Asset | 2,745 | 485 | |
Derivative Fair Value Of Derivative Liability | (2,878) | (2,007) | |
Net notional exposure | 42,438 | 42,524 | |
Fair value | (133) | (1,522) | |
Derivatives not designated as hedges [Member] | Interest rate swaps [Member] | |||
Derivative [Line Items] | |||
Derivative Fair Value Of Derivative Asset | [3] | 0 | 0 |
Derivative Fair Value Of Derivative Liability | [3] | (24,383) | (16,282) |
Net notional exposure | [3] | 196,804 | 201,160 |
Fair value | [3] | (24,383) | (16,282) |
Derivatives not designated as hedges [Member] | TBAs [Member] | |||
Derivative [Line Items] | |||
Derivative Fair Value Of Derivative Asset | 0 | 154 | |
Derivative Fair Value Of Derivative Liability | (1,462) | (240) | |
Net notional exposure | 447,315 | 235,105 | |
Fair value | $ (1,462) | $ (86) | |
[1] | Amounts include all derivative instruments, irrespective of whether there is a legally enforceable master netting arrangement in place. | ||
[2] | At December 31, 2015 and 2014, 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 - Income Statement
Derivatives - Income Statement (Details) - Derivatives not designated as hedges [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in income | $ (67,590) | $ (37,037) | $ 6,004 |
Included in net foreign exchange gains and losses [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in income | (32,689) | 38,589 | (64,183) |
Included in net realized and unrealized investment gains and losses [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in income | (34,901) | (75,626) | 70,187 |
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 | (29,217) | 39,399 | (59,019) |
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 | (3,472) | (810) | (5,164) |
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 | (32,004) | (72,146) | 78,841 |
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 | (1,556) | 230 | (707) |
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 | 1,390 | (1,002) | (6,597) |
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 | (8,101) | (15,871) | 7,469 |
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 | 2,877 | 13,166 | (8,808) |
Other [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 | $ 2,493 | $ (3) | $ (11) |
Derivatives - narrative items (
Derivatives - narrative items (Details) | Dec. 31, 2014 |
Derivatives designated as hedges [Member] | |
Derivatives Fair Value [Line Items] | |
Derivative number of instruments held | 0 |
Derivatives Offsetting (Details
Derivatives Offsetting (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Offsetting (Details) [Abstract] | |||
Gross amounts of recognized, asset | [1] | $ 33,159 | $ 21,521 |
Gross amount offset in the balance sheet | 0 | 0 | |
Net amounts of asset/ liabilities presented in the balance sheet, asset | 33,159 | 21,521 | |
Gross amounts not offset in the balance sheet, financial instruments, asset | (1,037) | (766) | |
Gross amounts not offset in the balance sheet, cash collateral received/ pledged | (10,222) | (8,536) | |
Net amount, asset | 21,900 | 12,219 | |
Gross amounts of recognized, liability | [1] | (47,916) | (27,977) |
Gross amount offset in the balance sheet | 0 | 0 | |
Net amounts presented in the balance sheet, liability | (47,916) | (27,977) | |
Gross amounts not offset in the balance sheet, financial instruments, liability | 1,037 | 766 | |
Gross amounts not offset in the balance sheet, cash collateral received | 25,904 | 14,858 | |
Net amount, liability | $ (20,975) | $ (12,353) | |
[1] | Amounts include all derivative instruments, irrespective of whether there is a legally enforceable master netting arrangement in place. |
Goodwill and Intangible Asset74
Goodwill and Intangible Assets Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill And Intangible Assets [Line Items] | |||||||||||
Amortization of intangible assets | $ (6,000) | $ (7,000) | $ (7,000) | $ (7,000) | $ (6,000) | $ (7,000) | $ (7,000) | $ (7,000) | $ (26,593) | $ (27,486) | $ (27,180) |
Goodwill [Member] | |||||||||||
Goodwill And Intangible Assets [Line Items] | |||||||||||
Balance at January 1 | 456,380 | 456,380 | 456,380 | 456,380 | |||||||
Balance at December 31 | 456,380 | 456,380 | 456,380 | 456,380 | 456,380 | ||||||
Definite Lived Intangible Assets [Member] | |||||||||||
Goodwill And Intangible Assets [Line Items] | |||||||||||
Balance at January 1 | 152,254 | 179,740 | 152,254 | 179,740 | |||||||
Amortization of intangible assets | (26,593) | (27,486) | |||||||||
Balance at December 31 | 125,661 | 152,254 | 125,661 | 152,254 | 179,740 | ||||||
Indefinite Lived Intangible Assets [Member] | |||||||||||
Goodwill And Intangible Assets [Line Items] | |||||||||||
Balance at January 1 | 7,350 | 7,350 | 7,350 | 7,350 | |||||||
Balance at December 31 | 7,350 | 7,350 | 7,350 | 7,350 | 7,350 | ||||||
Total intangible assets [Member] | |||||||||||
Goodwill And Intangible Assets [Line Items] | |||||||||||
Balance at January 1 | $ 159,604 | $ 187,090 | 159,604 | 187,090 | |||||||
Amortization of intangible assets | (26,593) | (27,486) | |||||||||
Balance at December 31 | $ 133,011 | $ 159,604 | $ 133,011 | $ 159,604 | $ 187,090 |
Goodwill and Intangible Asset75
Goodwill and Intangible Assets Gross Values And Amortization Of Intangible Assets - (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill And Intangible Assets [Line Items] | ||
Gross intangible assets excluding goodwill | $ 310,117 | $ 310,117 |
Accumulated amortization | 177,106 | 150,513 |
Definite Lived Intangible Assets [Member] | ||
Goodwill And Intangible Assets [Line Items] | ||
Gross intangible assets excluding goodwill | 302,767 | 302,767 |
Accumulated amortization | $ 177,106 | 150,513 |
Definite Lived Intangible Assets [Member] | Minimum [Member] | ||
Goodwill And Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 11 years | |
Definite Lived Intangible Assets [Member] | Maximum [Member] | ||
Goodwill And Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 13 years | |
Definite Lived Intangible Assets [Member] | Unpaid Losses And Loss Expenses [Member] | ||
Goodwill And Intangible Assets [Line Items] | ||
Gross intangible assets excluding goodwill | $ 191,196 | 191,196 |
Accumulated amortization | 145,808 | 131,908 |
Definite Lived Intangible Assets [Member] | Renewal Rights [Member] | ||
Goodwill And Intangible Assets [Line Items] | ||
Gross intangible assets excluding goodwill | 48,163 | 48,163 |
Accumulated amortization | 18,226 | 12,273 |
Definite Lived Intangible Assets [Member] | Customer Relationships [Member] | ||
Goodwill And Intangible Assets [Line Items] | ||
Gross intangible assets excluding goodwill | 63,408 | 63,408 |
Accumulated amortization | 13,072 | 6,332 |
Indefinite Lived Intangible Assets [Member] | Insurance Licenses [Member] | ||
Goodwill And Intangible Assets [Line Items] | ||
Gross intangible assets excluding goodwill | $ 7,350 | $ 7,350 |
Goodwill and Intangible Asset76
Goodwill and Intangible Assets Allocation to Segments - (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Goodwill Allocation to Segments [Line Items] | ||
Goodwill | $ 456,380 | $ 456,380 |
Life and Health [Member] | ||
Goodwill Allocation to Segments [Line Items] | ||
Goodwill | 18,804 | 18,804 |
North America Segment [Member] | Non Life [Member] | ||
Goodwill Allocation to Segments [Line Items] | ||
Goodwill | 82,026 | 82,026 |
Global (Non-US) P&C [Member] | Non Life [Member] | ||
Goodwill Allocation to Segments [Line Items] | ||
Goodwill | 149,895 | 149,895 |
Global Specialty [Member] | Non Life [Member] | ||
Goodwill Allocation to Segments [Line Items] | ||
Goodwill | 179,641 | 179,641 |
Catastrophe Segment [Member] | Non Life [Member] | ||
Goodwill Allocation to Segments [Line Items] | ||
Goodwill | $ 26,014 | $ 26,014 |
Goodwill and Intangible Asset77
Goodwill and Intangible Assets Future Amortization of Finite Intangibles - (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2,016 | $ 25,919 |
2,017 | 22,818 |
2,018 | 21,247 |
2,019 | 18,153 |
2,020 | 10,823 |
Total | $ 98,960 |
Unpaid Losses and Loss Expens78
Unpaid Losses and Loss Expenses and Policy Benefits for Life and Annuity Contracts (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Liability for unpaid losses and loss expenses by type | ||||
Case reserves | $ 3,716,195 | $ 4,236,038 | ||
Additional case reserves (ACRs) | 190,183 | 253,890 | ||
IBNR reserves | 5,158,333 | 5,255,878 | ||
Unpaid losses and loss expenses | $ 9,064,711 | $ 9,745,806 | $ 10,646,318 | $ 10,709,371 |
Unpaid Losses and Loss Expens79
Unpaid Losses and Loss Expenses and Policy Benefits for Life and Annuity Contracts Non Life loss and loss expenses rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Non-Life loss and loss expenses rollforward [Abstract] | |||
Gross liability at beginning of year | $ 9,745,806 | $ 10,646,318 | $ 10,709,371 |
Reinsurance recoverable at beginning of year | 214,349 | 267,384 | 291,330 |
Net liability at beginning of year | 9,531,457 | 10,378,934 | 10,418,041 |
Current year | 3,023,704 | 3,122,981 | 3,118,755 |
Prior years | (830,705) | (660,413) | (721,499) |
Total Non-life Incurred Claims | 2,192,999 | 2,462,568 | 2,397,256 |
Change in Paris Re Reserve Agreement | (8,771) | (25,412) | (49,544) |
Current year | 250,720 | 267,806 | 242,053 |
Prior years | 2,171,883 | 2,530,743 | 2,159,506 |
Total Non-life Claims Paid | 2,422,603 | 2,798,549 | 2,401,559 |
Effects of foreign exchange rate changes | (417,605) | (486,084) | 14,740 |
Net liability at end of year | 8,875,477 | 9,531,457 | 10,378,934 |
Reinsurance recoverable at end of year | 189,234 | 214,349 | 267,384 |
Gross liability at end of year | $ 9,064,711 | $ 9,745,806 | $ 10,646,318 |
Unpaid Losses and Loss Expens80
Unpaid Losses and Loss Expenses and Policy Benefits for Life and Annuity Contracts Reconciliation of losses and loss expenses including life policy benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of loss and loss expense | |||||||||||
Losses and loss expenses and life policy benefits | $ 767,000 | $ 804,000 | $ 865,000 | $ 721,000 | $ 870,000 | $ 960,000 | $ 884,000 | $ 749,000 | $ 3,157,420 | $ 3,462,770 | $ 3,157,808 |
Non Life [Member] | |||||||||||
Reconciliation of loss and loss expense | |||||||||||
Losses and loss expenses and life policy benefits | 2,192,999 | 2,462,568 | 2,397,256 | ||||||||
Life and Health [Member] | |||||||||||
Reconciliation of loss and loss expense | |||||||||||
Losses and loss expenses and life policy benefits | $ 964,421 | $ 1,000,202 | $ 760,552 |
Unpaid Losses and Loss Expens81
Unpaid Losses and Loss Expenses and Policy Benefits for Life and Annuity Contracts (Details - Other Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Prior Year Development [Line Items] | |||
Total net Non-life prior year loss development | $ 830,705 | $ 660,413 | $ 721,499 |
Priory year loss development-Life and Health | 47,000 | 19,000 | 39,000 |
Liability For Asbestos And Environmental Claims [Line Items] | |||
Net liability for asbestos and environmental claims | 181,000 | 189,000 | |
Gross liability for asbestos and environmental claims | 191,000 | 201,000 | |
Paris Re Reserve Agreement | |||
Guaranteed reserves related to Paris Re | $ 514,000 | $ 575,000 | |
Liability for Future Policy Benefits, Assumptions [Abstract] | |||
Interest Rate, Low End | 0.00% | 0.00% | |
Interest Rate, High End | 6.80% | 6.80% | |
North America Segment [Member] | |||
Prior Year Development [Line Items] | |||
Total net Non-life prior year loss development | $ 284,406 | $ 250,942 | 222,839 |
Global (Non-US) P&C [Member] | |||
Prior Year Development [Line Items] | |||
Total net Non-life prior year loss development | 96,438 | 134,394 | 180,052 |
Global Specialty [Member] | |||
Prior Year Development [Line Items] | |||
Total net Non-life prior year loss development | 434,244 | 257,696 | 227,383 |
Catastrophe Segment [Member] | |||
Prior Year Development [Line Items] | |||
Total net Non-life prior year loss development | 15,617 | 17,381 | $ 91,225 |
Asbestos Liabilities Of Paris Re [Member] | |||
Liability For Asbestos And Environmental Claims [Line Items] | |||
Gross liability for asbestos and environmental claims | 121,000 | 127,000 | |
Asbestos Liabilities Of Partner Re SA And Partner Re US [Member] | |||
Liability For Asbestos And Environmental Claims [Line Items] | |||
Gross liability for asbestos and environmental claims | $ 70,000 | $ 74,000 |
Reinsurance (Details)
Reinsurance (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Premiums Written, Net [Abstract] | |||||||||||
Gross premiums written | $ 5,547,525 | $ 5,932,003 | $ 5,569,706 | ||||||||
Ceded | 317,977 | 212,119 | 173,180 | ||||||||
Net | $ 1,064,000 | $ 1,190,000 | $ 1,322,000 | $ 1,653,000 | $ 1,220,000 | $ 1,343,000 | $ 1,419,000 | $ 1,738,000 | 5,229,548 | 5,719,884 | 5,396,526 |
Premiums earned | |||||||||||
Assumed | 5,570,321 | 5,824,398 | 5,373,866 | ||||||||
Ceded | 301,143 | 215,203 | 175,656 | ||||||||
Net | 1,294,000 | 1,412,000 | 1,328,000 | 1,235,000 | 1,446,000 | 1,557,000 | 1,353,000 | 1,254,000 | 5,269,178 | 5,609,195 | 5,198,210 |
Loss and Loss Expenses and Life Policy Benefits | |||||||||||
Assumed | 3,215,665 | 3,503,060 | 3,207,860 | ||||||||
Ceded | 58,245 | 40,290 | 50,052 | ||||||||
Net | 767,000 | $ 804,000 | $ 865,000 | $ 721,000 | 870,000 | $ 960,000 | $ 884,000 | $ 749,000 | 3,157,420 | 3,462,770 | $ 3,157,808 |
Allowance For Reinsurance Recoverable [Member] | |||||||||||
Allowance for uncollectible reinsurance recoverable [Line Items] | |||||||||||
Allowance for uncollectible reinsurance recoverable | $ 9,000 | $ 13,000 | $ 9,000 | $ 13,000 |
Debt (Details)
Debt (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Instruments [Line Items] | |||
Interest paid | $ 49,259,000 | $ 49,259,000 | $ 49,259,000 |
Senior Notes Debt [Member] | Notes Issued By Partner Re Finance B LLC [Member] | |||
Debt Instruments [Line Items] | |||
Debt instrument issuance date | Mar. 10, 2010 | ||
Face amount of debt instrument | $ 500,000,000 | 500,000,000 | |
Percentage Of Indirect Ownership In Subsidiary | 100.00% | ||
Stated interest rate of debt instrument | 5.50% | ||
Maturity date | Jun. 1, 2020 | ||
Payment frequency | semi-annually | ||
Date of first required interest payment | Jun. 1, 2010 | ||
Senior Notes Debt [Member] | Notes Issued To Partner Re Finance B LLC [Member] | |||
Debt Instruments [Line Items] | |||
Debt instrument issuance date | Mar. 10, 2010 | ||
Face amount of debt instrument | $ 500,000,000 | ||
Stated interest rate of debt instrument | 5.50% | ||
Maturity date | Jun. 1, 2020 | ||
Payment frequency | semi-annually | ||
Date of first required interest payment | Jun. 1, 2010 | ||
Interest expense incurred (debt-related) | $ 27,500,000 | 27,500,000 | 27,500,000 |
Interest paid | $ 27,500,000 | 27,500,000 | 27,500,000 |
Senior Notes Debt [Member] | Notes Issued By Partner Re Finance A LLC [Member] | |||
Debt Instruments [Line Items] | |||
Debt instrument issuance date | May 27, 2008 | ||
Face amount of debt instrument | $ 250,000,000 | 250,000,000 | |
Percentage Of Indirect Ownership In Subsidiary | 100.00% | ||
Stated interest rate of debt instrument | 6.875% | ||
Maturity date | Jun. 1, 2018 | ||
Payment frequency | semi-annually | ||
Date of first required interest payment | Dec. 1, 2008 | ||
Senior Notes Debt [Member] | Notes Issued To Partner Re Finance A LLC [Member] | |||
Debt Instruments [Line Items] | |||
Debt instrument issuance date | May 27, 2008 | ||
Face amount of debt instrument | $ 250,000,000 | ||
Stated interest rate of debt instrument | 6.875% | ||
Maturity date | Jun. 1, 2018 | ||
Payment frequency | semi-annually | ||
Date of first required interest payment | Dec. 1, 2008 | ||
Interest expense incurred (debt-related) | $ 17,200,000 | 17,200,000 | 17,200,000 |
Interest paid | $ 17,200,000 | 17,200,000 | 17,200,000 |
Capital efficient notes [Member] | Notes Issued By Partner Re Finance II Inc [Member] | |||
Debt Instruments [Line Items] | |||
Debt instrument issuance date | Nov. 7, 2006 | ||
Face amount of debt instrument | $ 63,000,000 | 63,000,000 | |
Percentage Of Indirect Ownership In Subsidiary | 100.00% | ||
Carrying amount at balance sheet date | $ 63,400,000 | ||
Amount of debt extinguished | 186,600,000 | ||
Consideration Paid On Extinguishment Of Debt | $ 93,300,000 | ||
Percentage of outstanding debt extinguished | 75.00% | ||
Maturity date range start | Dec. 1, 2016 | ||
Maturity date range end | Dec. 1, 2066 | ||
Cash tender offer | $ 500 | ||
Face value | 1,000 | ||
Capital efficient notes [Member] | Notes Issued By Partner Re Finance II Inc [Member] | Original Debt Issuance Date [Member] | |||
Debt Instruments [Line Items] | |||
Face amount of debt instrument | $ 250,000,000 | ||
Capital efficient notes [Member] | Notes Issued By Partner Re Finance II Inc [Member] | June 1, 2007 - December 1, 2016 [Member] | |||
Debt Instruments [Line Items] | |||
Stated interest rate of debt instrument | 6.44% | ||
Payment frequency | semi-annually | ||
Date of first required interest payment | Jun. 1, 2007 | ||
Capital efficient notes [Member] | Notes Issued By Partner Re Finance II Inc [Member] | December 1, 2016 - December 1, 2066 [Member] | |||
Debt Instruments [Line Items] | |||
Stated interest rate of debt instrument | 6.44% | ||
Payment frequency | quarterly | ||
Date of first required interest payment | Dec. 1, 2016 | ||
Interest rate in excess of LIBOR | 2.325% | ||
Capital efficient notes [Member] | Notes Issued To Partner Re Finance II Inc [Member] | |||
Debt Instruments [Line Items] | |||
Debt instrument issuance date | Nov. 7, 2006 | ||
Face amount of debt instrument | $ 257,600,000 | ||
Stated interest rate of debt instrument | 6.44% | ||
Maturity date | Dec. 1, 2066 | ||
Interest expense incurred (debt-related) | $ 4,600,000 | 4,600,000 | 4,600,000 |
Interest paid | 4,600,000 | $ 4,600,000 | $ 4,600,000 |
Carrying amount at balance sheet date | 71,000,000 | ||
Net realized gain on purchase of capital efficient notes | 88,400,000 | ||
Amount of debt extinguished | 186,600,000 | ||
Consideration Paid On Extinguishment Of Debt | $ 93,300,000 | ||
Capital efficient notes [Member] | Notes Issued To Partner Re Finance II Inc [Member] | June 1, 2007 - December 1, 2016 [Member] | |||
Debt Instruments [Line Items] | |||
Stated interest rate of debt instrument | 6.44% | ||
Payment frequency | semi-annually | ||
Date of first required interest payment | Jun. 1, 2007 | ||
Capital efficient notes [Member] | Notes Issued To Partner Re Finance II Inc [Member] | December 1, 2016 - December 1, 2066 [Member] | |||
Debt Instruments [Line Items] | |||
Payment frequency | quarterly | ||
Date of first required interest payment | Dec. 1, 2016 | ||
Reference rate for variable rate interest payments | 3-month LIBOR | ||
Interest rate in excess of LIBOR | 2.325% |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Authorized Shares [Abstract] | |||
Total authorized shares | 200,000,000 | 200,000,000 | |
Par value per share | $ 1 | $ 1 | |
Common Shares [Abstract] | |||
Number of shares repurchased | 500,000 | 5,200,000 | 7,700,000 |
Total cost of shares repurchased | $ 59,300 | $ 551,400 | $ 695,300 |
Average cost per share of shares repurchased | $ 112.89 | $ 106.30 | $ 90.73 |
Current share repurchase authorization outstanding | 2,900,000 | ||
Common shares held in treasury, shares | 39,303,068 | 39,400,936 | |
Common Shares Reissued Out Of Treasury | 600,000 | ||
Total Cost Of Shares Reissued | $ 51,600 | ||
Average Cost Per Share Of Shares Reissued | $ 82.88 | ||
Preferred Shares [Abstract] | |||
Number of preferred shares issued | 34,150,000 | 34,150,000 | |
Total consideration | $ 0 | $ 0 | $ 241,265 |
Loss on redemption of preferred shares | $ 0 | $ 0 | $ 9,135 |
Common Shares [Member] | |||
Authorized Shares [Abstract] | |||
Total authorized shares | 100,000,000 | 100,000,000 | |
Designated 6.75% Series C cumulative redeemable preferred shares [Member] | |||
Preferred Shares [Abstract] | |||
Date of issuance | May 8, 2003 | ||
Number of preferred shares issued | 11,600,000 | ||
Annual dividend rate | 6.75% | ||
Total consideration | $ 280,900 | ||
Underwriting discounts and commissions | 9,100 | ||
Aggregate liquidation value. | $ 290,000 | ||
Redemption date | Mar. 18, 2013 | ||
Loss on redemption of preferred shares | $ 9,100 | ||
Designated 6.5% Series D cumulative redeemable preferred shares | |||
Authorized Shares [Abstract] | |||
Total authorized shares | 9,200,000 | 9,200,000 | |
Preferred Shares [Abstract] | |||
Date of issuance | Nov. 9, 2004 | ||
Number of preferred shares issued | 9,200,000 | ||
Annual dividend rate | 6.50% | ||
Total consideration | $ 222,300 | ||
Underwriting discounts and commissions | 7,700 | ||
Aggregate liquidation value. | $ 230,000 | ||
Distribution on liquidation | $ 25 | ||
Designated 7.25% Series E cumulative redeemable preferred shares | |||
Authorized Shares [Abstract] | |||
Total authorized shares | 17,000,000 | 17,000,000 | |
Preferred Shares [Abstract] | |||
Date of issuance | Jun. 8, 2011 | ||
Number of preferred shares issued | 15,000,000 | ||
Annual dividend rate | 7.25% | ||
Total consideration | $ 361,700 | ||
Underwriting discounts and commissions | 12,100 | ||
Aggregate liquidation value. | $ 373,800 | ||
Distribution on liquidation | $ 25 | ||
Designated 5.875% Series F non-cumulative redeemable preferred shares | |||
Authorized Shares [Abstract] | |||
Total authorized shares | 14,000,000 | 14,000,000 | |
Preferred Shares [Abstract] | |||
Date of issuance | Feb. 14, 2013 | ||
Number of preferred shares issued | 10,000,000 | ||
Annual dividend rate | 5.875% | ||
Total consideration | $ 242,300 | ||
Underwriting discounts and commissions | 7,700 | ||
Aggregate liquidation value. | $ 250,000 | ||
Distribution on liquidation | $ 25 | ||
Designated and redeemed preference shares [Member] | |||
Authorized Shares [Abstract] | |||
Total authorized shares | 26,000,000 | 26,000,000 | |
Undesignated [Member] | |||
Authorized Shares [Abstract] | |||
Total authorized shares | 33,800,000 | 33,800,000 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||
Numerator [Abstract] | |||||||||||||||
Net income attributable to PartnerRe Ltd. | $ 177,000 | $ (229,000) | $ (89,000) | $ 246,000 | $ 277,000 | $ 196,000 | $ 272,000 | $ 310,000 | $ 104,381 | $ 1,054,974 | $ 664,008 | ||||
Preferred dividends | 14,000 | 14,000 | 14,000 | 14,000 | 14,000 | 14,000 | 14,000 | 14,000 | 56,735 | 56,735 | 57,861 | ||||
Loss on redemption of preferred shares | 0 | 0 | 9,135 | ||||||||||||
Net income attributable to PartnerRe Ltd. common shareholders | $ 163,000 | $ (243,000) | $ (103,000) | $ 232,000 | $ 263,000 | $ 182,000 | $ 258,000 | $ 296,000 | $ 47,646 | $ 998,239 | $ 597,012 | ||||
Denominator [Abstract] | |||||||||||||||
Weighted average number of common shares outstanding | 47,771,673 | 50,019,480 | 55,378,980 | ||||||||||||
Share options and other (1) | [1] | 1,168,197 | 1,154,745 | 1,069,125 | |||||||||||
Weighted average number of common shares and common share equivalents outstanding | 48,939,870 | 51,174,225 | 56,448,105 | ||||||||||||
Basic net income per share | $ 3.39 | $ (5.08) | $ (2.16) | $ 4.88 | $ 5.39 | $ 3.68 | $ 5.13 | $ 5.72 | $ 1 | $ 19.96 | $ 10.78 | ||||
Diluted net income per share | 3.30 | (5.08) | (2.16) | 4.76 | 5.26 | 3.60 | 5.02 | 5.61 | 0.97 | [1] | 19.51 | [1] | 10.58 | [1] | |
Dividends declared per common share | $ 0.70 | $ 0.70 | $ 0.70 | $ 0.70 | $ 0.67 | $ 0.67 | $ 0.67 | $ 0.67 | $ 2.80 | $ 2.68 | $ 2.56 | ||||
Anti-dilutive common shares excluded from weighted average number of common shares and common share equivalents outstanding - diluted (1) | [1] | 49,411 | 127,329 | 14,784 | |||||||||||
[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 ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Noncontrolling Interest [Line Items] | |||||||||||
Total assets | $ 21,406,043 | $ 22,270,357 | $ 21,406,043 | $ 22,270,357 | |||||||
Total liabilities | 14,503,092 | 15,165,946 | 14,503,092 | 15,165,946 | |||||||
Movement In Minority Interest [Roll Forward] | |||||||||||
Balance at January 1 | $ 55,501 | 55,501 | |||||||||
Net income attributable to noncontrolling interests | 0 | $ 0 | $ 0 | 2,000 | 3,000 | $ 5,000 | $ 2,000 | $ 3,000 | 2,769 | 13,139 | $ 9,434 |
Balance at December 31 | 2,450 | 55,501 | 2,450 | 55,501 | |||||||
Lorenz Re [Member] | |||||||||||
Noncontrolling Interest [Line Items] | |||||||||||
Total assets | 42,200 | 100,800 | 42,200 | 100,800 | |||||||
Total liabilities | 7,800 | 13,100 | 7,800 | 13,100 | |||||||
Movement In Minority Interest [Roll Forward] | |||||||||||
Balance at January 1 | $ 55,501 | $ 56,627 | 55,501 | 56,627 | |||||||
Net income attributable to noncontrolling interests | 2,769 | 13,139 | |||||||||
Distribution to noncontrolling interests | (55,820) | (14,265) | |||||||||
Balance at December 31 | $ 2,450 | $ 55,501 | $ 2,450 | $ 55,501 | $ 56,627 |
Dividend Restrictions and Sta87
Dividend Restrictions and Statutory Requirements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statutory Accounting Practices [Line Items] | |||
Total shareholders’ equity attributable to PartnerRe Ltd. | $ 6,900,501 | $ 7,048,910 | $ 6,709,532 |
Restricted Net Assets For Consolidated And Unconsolidated Subsidiaries | $ 5,300,000 | ||
PartnerRe Bermuda | |||
Statutory Accounting Practices [Line Items] | |||
Percent of enhanced capital requirement | 120.00% | ||
Statutory Amount Available For Dividend Payments | $ 991,000 | ||
Statutory net income | 444,000 | 660,000 | 616,000 |
Required statutory capital and surplus | 2,041,000 | 1,984,000 | |
Actual statutory capital and surplus | 3,032,000 | 3,157,000 | |
PartnerRe Europe | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Amount Available For Dividend Payments | 257,000 | ||
Statutory net income | 75,000 | 298,000 | 9,000 |
Required statutory capital and surplus | 805,000 | 867,000 | |
Actual statutory capital and surplus | $ 1,062,000 | 1,400,000 | |
PartnerRe U.S. | |||
Statutory Accounting Practices [Line Items] | |||
Percent of statutory capital that can be paid as dividends | 10.00% | ||
Statutory Amount Available For Dividend Payments | $ 12,000 | ||
Statutory net income | 219,000 | 236,000 | $ 123,000 |
Required statutory capital and surplus | 701,000 | 764,000 | |
Actual statutory capital and surplus | $ 1,405,000 | $ 1,420,000 |
Taxation (Details)
Taxation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current income tax expense [abstract] | |||||||||||
Current income tax expense | $ 176,786 | $ 235,982 | $ 129,592 | ||||||||
Deferred income tax expense (benefit) [abstract] | |||||||||||
Deferred income tax (benefit) expense | (103,749) | 2,774 | (84,579) | ||||||||
Unrecognized tax expense (benefit) [abstract] | |||||||||||
Unrecognized tax expense (benefit) | 6,627 | 750 | 3,403 | ||||||||
Income Tax Expense, Continuing Operations, by Jurisdiction [Abstract] | |||||||||||
Total income tax expense | $ (3,000) | $ 17,000 | $ (14,000) | $ 80,000 | $ 53,000 | $ 46,000 | $ 78,000 | $ 62,000 | 79,664 | 239,506 | 48,416 |
Income Before Taxes [Abstract] | |||||||||||
Income before taxes | $ 186,814 | $ 1,307,619 | $ 721,858 | ||||||||
Reconciliation of effective tax rate (% of income before taxes) | |||||||||||
Expected tax rate | 0.00% | 0.00% | 0.00% | ||||||||
Foreign taxes at local expected tax rates | 58.30% | 15.80% | 5.10% | ||||||||
Impact of foreign exchange gains (losses) | 1.10% | 2.20% | (1.10%) | ||||||||
Unrecognized tax expense | 3.50% | 0.10% | 0.50% | ||||||||
Tax-exempt income and expenses not deductible | (8.00%) | (2.20%) | (0.90%) | ||||||||
Impact of enacted changes in tax laws | 0.30% | 0.00% | 1.80% | ||||||||
Foreign branch tax | (26.80%) | 1.40% | (1.40%) | ||||||||
Ceding commissions | (0.70%) | 1.80% | (0.40%) | ||||||||
Valuation allowance | 15.20% | (0.60%) | 1.30% | ||||||||
Other | (0.30%) | (0.20%) | 1.80% | ||||||||
Actual tax rate | 42.60% | 18.30% | 6.70% | ||||||||
US [Member] | |||||||||||
Current income tax expense [abstract] | |||||||||||
Current income tax expense | $ 81,066 | $ 51,615 | $ 55,993 | ||||||||
Deferred income tax expense (benefit) [abstract] | |||||||||||
Deferred income tax (benefit) expense | (59,624) | 20,410 | (13,693) | ||||||||
Unrecognized tax expense (benefit) [abstract] | |||||||||||
Unrecognized tax expense (benefit) | 0 | 0 | (335) | ||||||||
Income Tax Expense, Continuing Operations, by Jurisdiction [Abstract] | |||||||||||
Total income tax expense | 21,442 | 72,025 | 41,965 | ||||||||
Non-US [Member] | |||||||||||
Current income tax expense [abstract] | |||||||||||
Current income tax expense | 95,720 | 184,367 | 73,599 | ||||||||
Deferred income tax expense (benefit) [abstract] | |||||||||||
Deferred income tax (benefit) expense | (44,125) | (17,636) | (70,886) | ||||||||
Unrecognized tax expense (benefit) [abstract] | |||||||||||
Unrecognized tax expense (benefit) | 6,627 | 750 | 3,738 | ||||||||
Income Tax Expense, Continuing Operations, by Jurisdiction [Abstract] | |||||||||||
Total income tax expense | 58,222 | 167,481 | 6,451 | ||||||||
Domestic (Bermuda) | |||||||||||
Income Before Taxes [Abstract] | |||||||||||
Income before taxes | (63,603) | 686,538 | 611,900 | ||||||||
Foreign | |||||||||||
Income Before Taxes [Abstract] | |||||||||||
Income before taxes | $ 250,417 | $ 621,081 | $ 109,958 |
Taxation (Details - Components
Taxation (Details - Components of Tax Assets and Tax Liabilities) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets | ||
Discounting of loss reserves and adjustment to life policy reserves | $ 61,712 | $ 77,117 |
Foreign tax credit carryforwards | 94,560 | 57,186 |
Tax loss carryforwards | 28,663 | 35,384 |
Unearned premiums | 23,319 | 23,230 |
Other deferred tax assets | 49,545 | 32,431 |
Deferred tax assets before valuation allowance | 257,799 | 225,348 |
Valuation allowance | (94,176) | (68,115) |
Deferred tax assets | 163,623 | 157,233 |
Deferred tax liabilities | ||
Deferred acquisition costs | 48,759 | 54,718 |
Goodwill and other intangibles | 85,185 | 93,416 |
Equalization reserves | 55,715 | 77,383 |
Unrealized appreciation and timing differences on investments | 23,240 | 85,873 |
Other deferred tax liabilities | 54,715 | 51,385 |
Deferred tax liabilities | 267,614 | 362,775 |
Net deferred tax liabilities | (103,991) | (205,542) |
Components Of Net Tax Assets And Liabilities [Abstract] | ||
Net tax assets | 102,596 | 6,876 |
Net tax liabilities | (218,652) | (240,989) |
Net tax liabilities | (116,056) | (234,113) |
Net Tax Liabilities By Type [Abstract] | ||
Net current tax assets | (11,773) | |
Net current tax liabilities | (9,739) | |
Net deferred tax liabilities | (103,991) | (205,542) |
Net unrecognized tax benefit | (23,838) | (18,832) |
Net tax liabilities | $ (116,056) | $ (234,113) |
Taxation (Details - Income Tax
Taxation (Details - Income Tax Uncertainties) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Contingency [Line Items] | |||
January 1 | $ 18,832 | $ 20,568 | $ 16,584 |
Changes in tax positions taken during a prior period - Increase | 745 | 1,597 | |
Changes in tax positions taken during a prior period - Decrease | (4,531) | ||
Tax positions taken during the current period - increase | 8,944 | 5,142 | 10,215 |
Change as a result of a lapse in the statute of limitations | (3,063) | (5,989) | (2,281) |
Impact of the change in foreign currency exchange rates - decrease | (1,620) | (2,486) | |
Impact of the change in foreign currency exchange rates - increase | 581 | ||
December 31 | 23,838 | 18,832 | 20,568 |
Unrecognized tax benefits that, if recognized, would impact the effective tax rate | |||
Income Tax Contingency [Line Items] | |||
January 1 | 18,266 | 19,353 | 15,784 |
Changes in tax positions taken during a prior period - Increase | 29 | 1,338 | |
Changes in tax positions taken during a prior period - Decrease | (5,038) | ||
Tax positions taken during the current period - increase | 8,683 | 5,142 | 10,164 |
Change as a result of a lapse in the statute of limitations | (3,039) | (5,197) | (2,102) |
Impact of the change in foreign currency exchange rates - decrease | (1,684) | (2,370) | |
Impact of the change in foreign currency exchange rates - increase | 545 | ||
December 31 | 22,255 | 18,266 | 19,353 |
Interest and penalties recognized on the above | |||
Income Tax Contingency [Line Items] | |||
January 1 | 566 | 1,215 | 800 |
Changes in tax positions taken during a prior period - Increase | 716 | 259 | 507 |
Tax positions taken during the current period - increase | 261 | 0 | 51 |
Change as a result of a lapse in the statute of limitations | (24) | (792) | (179) |
Impact of the change in foreign currency exchange rates - decrease | (116) | ||
Impact of the change in foreign currency exchange rates - increase | 64 | 36 | |
December 31 | $ 1,583 | $ 566 | $ 1,215 |
Taxation (Details - Other Detai
Taxation (Details - Other Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Taxation - Other Details [Line Items] | |||
Expected tax rate | 0.00% | 0.00% | 0.00% |
Unrecognized tax benefits that would create a temporary difference between the reported amount and its tax basis | $ 0 | $ 0 | $ 0 |
Amount of change in unrecognized tax benefit within 12 months | 5.8 | ||
Ireland | |||
Taxation - Other Details [Line Items] | |||
Tax Credit Carryforward, Valuation Allowance | 89.4 | 47 | |
Deferred tax asset carryforwards components | |||
Deferred tax on foreign tax credit carryforwards | 5.2 | 10.1 | |
Deferred tax asset on tax loss carryforwards | 2.9 | 3.1 | |
Singapore [Member] | |||
Taxation - Other Details [Line Items] | |||
Operating Loss Carryforwards, Valuation Allowance | 20 | ||
Deferred tax asset carryforwards components | |||
Deferred tax asset on tax loss carryforwards | 19.1 | ||
US [Member] | |||
Taxation - Other Details [Line Items] | |||
Operating Loss Carryforwards, Valuation Allowance | 1 | ||
Deferred tax asset carryforwards components | |||
Deferred tax asset on tax loss carryforwards | $ 0.3 | ||
Carryforward period | 20 years | ||
Canada | |||
Taxation - Other Details [Line Items] | |||
Operating Loss Carryforwards, Valuation Allowance | $ 3.5 | 1.1 | |
Switzerland | |||
Taxation - Other Details [Line Items] | |||
Operating Loss Carryforwards, Valuation Allowance | $ 0.3 | ||
Deferred tax asset carryforwards components | |||
Deferred tax asset on tax loss carryforwards | $ 10.3 | ||
Carryforward period | 7 years |
Share-Based Awards (Details - O
Share-Based Awards (Details - Other Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($)$ / sharesshares | Dec. 31, 2009shares | |
Share Based Compensation Arrangements - Other details | ||||
Share based compensation expense | $ | $ 41.6 | $ 34.4 | $ 29.8 | |
Tax benefit of share-based compensation expense | $ | 7.4 | 6.9 | 3.3 | |
Tax Benefit Realized from Exercise of Stock Options | $ | $ 10.2 | $ 6.2 | $ 7 | |
Employee Equity Plan [Member] | ||||
Employee Equity Plan [Abstract] | ||||
Shares remaining for issuance | 0 | |||
Share Options and SSARs [Member] | ||||
Employee Equity Plan [Abstract] | ||||
Vesting period for EEP shares | 3 years | |||
Contractual term, in years | 10 years | |||
RSUs and PSUs [Member] | ||||
Employee Equity Plan [Abstract] | ||||
Vesting period for EEP shares | 3 years | |||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Roll Forward | ||||
Outstanding at January 1, 2015 | 932,622 | |||
Granted | 264,018 | 333,358 | 329,174 | |
Performance based adjustment | 10,142 | |||
Vested | (313,078) | |||
Forfeited | (32,096) | |||
Outstanding at December 31, 2015 | 861,608 | 932,622 | ||
Share Based Compensation Arrangements - Other details | ||||
Weighted average grant date fair value | $ / shares | $ 119.06 | $ 98.86 | $ 89.44 | |
Fair value of units vested | $ | $ 22.4 | $ 20.6 | $ 22.8 | |
Unrecognized share-based compensation expense | $ | $ 27.6 | |||
Weighted average period of recognition | 1 year 8 months 26 days | |||
SSARs [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Roll Forward | ||||
Outstanding at January 1, 2015 | 1,492,926 | |||
Granted | 72,918 | 153,797 | 125,561 | |
Exercised | (574,120) | |||
Outstanding at December 31, 2015 | 991,724 | 1,492,926 | ||
Exercisable at December 31, 2015 | 820,380 | |||
Share Based Compensation Arrangements - Other details | ||||
Weighted average grant date fair value | $ / shares | $ 17.03 | $ 14.62 | $ 11.25 | |
Unrecognized share-based compensation expense | $ | $ 1.1 | |||
Weighted average period of recognition | 1 year 8 months | |||
Assumptions: | ||||
Expected life | 6 years | 6 years | 6 years | |
Expected volatility | 17.70% | 18.10% | 18.30% | |
Risk-free interest rate | 1.90% | 1.90% | 1.00% | |
Dividend yield | 2.20% | 2.20% | 2.30% | |
Warrants [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Roll Forward | ||||
Granted | 27,655 | |||
Exercised | 8,110 | |||
Outstanding at December 31, 2015 | 557 | |||
Share Based Compensation Arrangements - Other details | ||||
Weighted average remaining contractual term | 1 year | |||
Weighted average exercise price, exercises during period | $ / shares | 31.25 | |||
Weighted average exercise price | $ / shares | 30.86 |
Share-Based Awards (Details -93
Share-Based Awards (Details - Options) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Summary Of Option Activity [Abstract] | |||
Total intrinsic value of options exercised (in millions of U.S. dollars) | $ 8.5 | $ 8.7 | $ 24.8 |
Proceeds from option exercises (in millions of U.S. dollars) | $ 9.8 | $ 14.7 | $ 49.6 |
Weighted average remaining contractual term | 4 years 2 months | ||
Aggregate intrinsic value of options outstanding, exercisable, vested and expected to vest | $ 18.1 | ||
Activity related to share options | |||
Outstanding at January 1, 2015 | 410,347 | ||
Exercised | (142,429) | (225,329) | (819,764) |
Outstanding at December 31, 2015 | 267,918 | 410,347 | |
Options exercisable at December 31, 2015 | 267,918 | ||
Options vested and expected to vest at December 31, 2015 | 267,918 | ||
The weighted average exercise price is as follows: | |||
Outstanding at January 1, 2015 | $ 71.55 | ||
Exercised | 70.47 | ||
Outstanding at December 31, 2015 | 72.13 | $ 71.55 | |
Options exercisable at December 31, 2015 | 72.13 | ||
Options vested and expected to vest at December 31, 2015 | $ 72.13 |
Share-Based Awards (Details - N
Share-Based Awards (Details - Narrative) shares in Millions | 12 Months Ended |
Dec. 31, 2015shares | |
Non-Employee Directors [Member] | |
Non-employee directors stock plan [Line Items] | |
Number of share-based awards authorized | 1.2 |
Shares remaining for issuance | 0.3 |
Non-Employee Directors [Member] | RSU [Member] | |
Non-employee directors stock plan [Line Items] | |
Number of share-based awards authorized | 0.8 |
Non-Employee Directors [Member] | Share Options and SSARs [Member] | |
Non-employee directors stock plan [Line Items] | |
Number of share-based awards authorized | 0.4 |
Non-Employee Directors [Member] | Share Options and SSARs granted after to May 2012 [Member] | Share Options and SSARs [Member] | |
Non-employee directors stock plan [Line Items] | |
Contractual term, in years | 10 years |
Vesting period, in years | 3 years |
Non-Employee Directors [Member] | RSU Granted Post May 2010 [Member] | RSU [Member] | |
Non-employee directors stock plan [Line Items] | |
Vesting period, in years | 5 years |
Delivery date restrictions, in years | 0 years |
Directors Percentage of RSUs Elected | 60.00% |
Directors Percentage Cash Elected In Lieu Of RSUs | 40.00% |
Employee Share Purchase Plan [Member] | |
Employee Share Purchase Plans [Line Items] | |
Length of offering period, in months | 12 months |
Number of purchase periods allowed under the plan | 2 |
Length of purchase periods, in months | 6 months |
Contribution range low | 1.00% |
Contribution range high | 10.00% |
Discount on fair value | 15.00% |
Swiss Share Purchase Plan [Member] | |
Employee Share Purchase Plans [Line Items] | |
Number of purchase periods allowed under the plan | 2 |
Length of purchase periods, in months | 6 months |
Contribution range low | 1.00% |
Contribution range high | 8.00% |
Discount on fair value | 40.00% |
Restriction on transfer, in years | 2 years |
Minimum Working Hours To Qualify | 20 |
Swiss Share Purchase Plan [Member] | Switzerland, Francs | |
Employee Share Purchase Plans [Line Items] | |
Contribution limit maximum, in CHF | 5,000 |
Retirement Benefit Arrangemen95
Retirement Benefit Arrangements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure - Defined contribution plan | |||
Incurred expense for defined contribution arrangements | $ 13,400 | $ 15,900 | $ 14,500 |
Zurich Plan | |||
Funded status: | |||
Unfunded pension obligation at beginning of year | 41,365 | 24,614 | |
Change in pension obligation: | |||
Service cost | 6,945 | 6,188 | |
Interest cost | 1,682 | 2,635 | |
Plan participants’ contributions | 2,504 | 1,838 | |
Actuarial loss | 7,550 | 15,796 | |
Plan amendments | 0 | 2,667 | |
Benefits paid | (1,730) | (7,392) | |
Foreign currency adjustments | (465) | (13,493) | |
Change in pension obligation | 16,486 | 8,239 | |
Change in fair value of plan assets: | |||
Actual return on plan assets | 1,594 | 1,707 | |
Employer contributions | 5,337 | 5,492 | |
Plan participants’ contributions | 2,504 | 1,838 | |
Benefits paid | (1,730) | (7,392) | |
Foreign currency adjustments | (259) | (10,157) | |
Change in fair value of plan assets | 7,446 | (8,512) | |
Funded status: | |||
Unfunded pension obligation at end of year | 50,405 | 41,365 | $ 24,614 |
Additional information: | |||
Projected benefit obligation at end of year | 151,115 | 134,629 | |
Accumulated pension obligation at end of year | 141,716 | 127,322 | |
Fair value of plan assets at end of year | $ 100,710 | $ 93,264 | |
Pension obligation - assumptions used | |||
Discount rate | 1.00% | 1.25% | 2.25% |
Rate of compensation increase | 2.25% | 2.25% | 2.50% |
Net periodic benefit cost - assumptions used | |||
Discount rate | 1.25% | 2.25% | 1.75% |
Expected return on plan assets | 1.25% | 2.25% | 1.75% |
Rate of compensation increase | 2.25% | 2.50% | 2.50% |
Defined Benefit Plan Estimated Future Benefit Payments Abstract | |||
2,016 | $ 4,566 | ||
2,017 | 4,531 | ||
2,018 | 4,264 | ||
2,019 | 4,244 | ||
2,020 | 4,454 | ||
2021 to 2025 | $ 30,061 |
Retirement Benefit Arrangemen96
Retirement Benefit Arrangements (Details - Other Details) - Zurich Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Plan Assets [Line Items] | |||
Fair value of plan assets at end of year | $ 100,710 | $ 93,264 | |
Defined Benefit Plan Other Details [Abstract] | |||
Net amounts recognized in accumulated other comprehensive income | 29,200 | 25,400 | |
Tax on amounts recognized in accumulated other comprehensive income | 7,900 | 6,800 | |
Net periodic benefit cost | 9,600 | 7,300 | $ 10,700 |
Estimated contributions for next fiscal year | $ 4,900 | ||
Plan assets to be returned | The Company does not believe that any of the Zurich Plan’s assets will be returned to the Company during 2016. | ||
Significant other observable inputs (Level 2) | Insured Funds [Member] | |||
Defined Benefit Plan Plan Assets [Line Items] | |||
Fair value of plan assets at end of year | $ 100,700 | $ 93,300 |
Commitments and Contingencies97
Commitments and Contingencies (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Commitments [Line Items] | ||||||||||||
Concentration Risk, Credit Risk, Financial Instrument, Maximum Exposure | $ 1,200,000 | |||||||||||
Provision for uncollectible premiums receivable | $ 8,000 | $ 8,000 | 8,000 | $ 8,000 | ||||||||
Rent expense | 23,200 | $ 33,600 | $ 33,000 | |||||||||
IT and computer agreements and lease contracts | $ 14,000 | $ 14,000 | ||||||||||
Dividends declared per common share | $ 0.70 | $ 0.70 | $ 0.70 | $ 0.70 | $ 0.67 | $ 0.67 | $ 0.67 | $ 0.67 | $ 2.80 | $ 2.68 | $ 2.56 | |
Lease arrangements [abstract] | ||||||||||||
2,016 | $ 26,150 | $ 26,150 | ||||||||||
2,017 | 25,312 | 25,312 | ||||||||||
2,018 | 12,618 | 12,618 | ||||||||||
2,019 | 5,601 | 5,601 | ||||||||||
2,020 | 981 | 981 | ||||||||||
2021 through 2022 | 1,398 | 1,398 | ||||||||||
Total future minimum rental payments | 72,060 | 72,060 | ||||||||||
Total future sub-lease rental income through 2019 | 7,360 | $ 7,360 | ||||||||||
Special Dividend [Member] | ||||||||||||
Other Commitments [Line Items] | ||||||||||||
Dividends declared per common share | $ 3 | |||||||||||
Strategic Investments [Member] | ||||||||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||||||||||
2,016 | 47,000 | $ 47,000 | ||||||||||
2,017 | 35,000 | 35,000 | ||||||||||
2,018 | 10,000 | 10,000 | ||||||||||
2,019 | 1,000 | 1,000 | ||||||||||
2,020 | 0 | 0 | ||||||||||
Total | 93,000 | 93,000 | ||||||||||
Forecast [Member] | Minimum [Member] | ||||||||||||
Other Commitments [Line Items] | ||||||||||||
Other Expenses Expected To Be Incurred | $ 30,000 | |||||||||||
Forecast [Member] | Maximum [Member] | ||||||||||||
Other Commitments [Line Items] | ||||||||||||
Other Expenses Expected To Be Incurred | $ 40,000 | |||||||||||
Structured Letter Of Credit [Member] | ||||||||||||
Commitments and Contingencies Other Details [Line Items] | ||||||||||||
LOC obligations guaranteed as of balance sheet date | $ 81,000 | $ 61,000 | $ 81,000 | $ 61,000 | ||||||||
Line Of Credit Facility Term | 10 years | |||||||||||
Maturity date of facility | Dec. 29, 2020 |
Credit Agreements (Details)
Credit Agreements (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Credit Agreements Details [Line Items] | |
Total amount of credit facilities available | $ 817 |
Outstanding Unsecured Letter Of Credit [Member] | |
Credit Agreements Details [Line Items] | |
Letters Of Credit Outstanding Amount | 113 |
Outstanding Secured Letter Of Credit [Member] | |
Credit Agreements Details [Line Items] | |
Letters Of Credit Outstanding Amount | 375 |
Combined Credit Facility [Member] | |
Credit Agreements Details [Line Items] | |
Total amount of credit facilities available | $ 300 |
Maturity date of facility | Nov. 14, 2016 |
Amount of unsecured borrowing capacity | $ 100 |
Committed Secured Letter Of Credit Facility A [Member] | |
Credit Agreements Details [Line Items] | |
Total amount of credit facilities available | $ 300 |
Maturity date of facility | Dec. 31, 2018 |
Committed Secured Letter Of Credit Facility B [Member] | |
Credit Agreements Details [Line Items] | |
Total amount of credit facilities available | $ 140 |
Maturity date of facility | Dec. 31, 2017 |
Agreements with Related Parti99
Agreements with Related Parties (Details) - ING Group N.V. [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transaction [Line Items] | ||
Net premiums earned | $ 1.9 | $ 2.6 |
Losses and loss expenses and life policy benefits | $ 0.6 | $ 1.3 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Segment Reporting [Line Items] | ||||||||||||
Gross premiums written | $ 5,547,525 | $ 5,932,003 | $ 5,569,706 | |||||||||
Net premiums written | $ 1,064,000 | $ 1,190,000 | $ 1,322,000 | $ 1,653,000 | $ 1,220,000 | $ 1,343,000 | $ 1,419,000 | $ 1,738,000 | 5,229,548 | 5,719,884 | 5,396,526 | |
Decrease (increase) in unearned premiums | 39,630 | (110,689) | (198,316) | |||||||||
Net premiums earned | 1,294,000 | 1,412,000 | 1,328,000 | 1,235,000 | 1,446,000 | 1,557,000 | 1,353,000 | 1,254,000 | 5,269,178 | 5,609,195 | 5,198,210 | |
Losses and loss expenses and life policy benefits | (3,157,000) | (3,463,000) | (3,158,000) | |||||||||
Acquisition costs | (311,000) | (347,000) | (283,000) | (276,000) | (325,000) | (322,000) | (303,000) | (265,000) | (1,217,003) | (1,213,822) | (1,077,628) | |
Technical result | 895,000 | 932,000 | 962,000 | |||||||||
Other income | 1,000 | 3,000 | 0 | 4,000 | 4,000 | 2,000 | 9,000 | 0 | 9,144 | 16,190 | 16,565 | |
Other expenses | (120,000) | (416,000) | (130,000) | (125,000) | (123,000) | (108,000) | (107,000) | (111,000) | (790,723) | (449,688) | (500,466) | |
Underwriting result | 113,000 | 498,000 | 479,000 | |||||||||
Net investment income | 108,000 | 117,000 | 120,000 | 105,000 | 115,000 | 118,000 | 130,000 | 117,000 | 449,784 | 479,696 | 484,367 | |
Net realized and unrealized investment (losses) gains | (24,000) | (133,000) | (256,000) | 116,000 | 98,000 | (34,000) | 166,000 | 142,000 | (297,479) | 371,796 | (160,735) | |
Interest expense | (12,000) | (12,000) | (12,000) | (12,000) | (12,000) | (12,000) | (12,000) | (12,000) | (48,988) | (48,963) | (48,929) | |
Amortization of intangible assets | (6,000) | (7,000) | (7,000) | (7,000) | (6,000) | (7,000) | (7,000) | (7,000) | (26,593) | (27,486) | (27,180) | |
Net foreign exchange (losses) gains | 6,000 | (22,000) | (6,000) | 13,000 | 7,000 | 8,000 | 2,000 | 0 | (9,461) | 18,201 | (18,203) | |
Income tax expense | 3,000 | (17,000) | 14,000 | (80,000) | (53,000) | (46,000) | (78,000) | (62,000) | (79,664) | (239,506) | (48,416) | |
Interest in earnings of equity method investments | 5,000 | (3,000) | 8,000 | (4,000) | (1,000) | 5,000 | 5,000 | 6,000 | 6,375 | 15,270 | 13,665 | |
Net income | $ 177,000 | $ (229,000) | $ (89,000) | $ 248,000 | $ 280,000 | $ 201,000 | $ 274,000 | $ 313,000 | 107,150 | 1,068,113 | 673,442 | |
Non Life [Member] | ||||||||||||
Segment Reporting [Line Items] | ||||||||||||
Gross premiums written | 4,277,000 | 4,667,000 | 4,590,000 | |||||||||
Net premiums written | 4,022,000 | 4,500,000 | 4,427,000 | |||||||||
Decrease (increase) in unearned premiums | 38,000 | (113,000) | (192,000) | |||||||||
Net premiums earned | 4,060,000 | 4,387,000 | 4,235,000 | |||||||||
Losses and loss expenses and life policy benefits | (2,193,000) | (2,463,000) | (2,400,000) | |||||||||
Acquisition costs | (1,064,000) | (1,065,000) | (953,000) | |||||||||
Technical result | 803,000 | 859,000 | 882,000 | |||||||||
Other income | 0 | 3,000 | 3,000 | |||||||||
Other expenses | (219,000) | (252,000) | (259,000) | |||||||||
Underwriting result | $ 584,000 | $ 610,000 | $ 626,000 | |||||||||
Reinsurance Ratios [Abstract] | ||||||||||||
Loss ratio | [1] | 54.00% | 56.10% | 56.70% | ||||||||
Acquisition ratio | [2] | 26.20% | 24.30% | 22.50% | ||||||||
Technical ratio | [3] | 80.20% | 80.40% | 79.20% | ||||||||
Other expense ratio | [4] | 5.40% | 5.80% | 6.10% | ||||||||
Combined ratio | [5] | 85.60% | 86.20% | 85.30% | ||||||||
Non Life [Member] | North America Segment [Member] | ||||||||||||
Segment Reporting [Line Items] | ||||||||||||
Gross premiums written | $ 1,604,000 | $ 1,642,000 | $ 1,601,000 | |||||||||
Net premiums written | 1,542,000 | 1,630,000 | 1,587,000 | |||||||||
Decrease (increase) in unearned premiums | 30,000 | (33,000) | (54,000) | |||||||||
Net premiums earned | 1,572,000 | 1,597,000 | 1,533,000 | |||||||||
Losses and loss expenses and life policy benefits | (881,000) | (1,000,000) | (975,000) | |||||||||
Acquisition costs | (443,000) | (401,000) | (351,000) | |||||||||
Technical result | $ 248,000 | $ 196,000 | $ 207,000 | |||||||||
Reinsurance Ratios [Abstract] | ||||||||||||
Loss ratio | [1] | 56.00% | 62.60% | 63.60% | ||||||||
Acquisition ratio | [2] | 28.20% | 25.10% | 22.90% | ||||||||
Technical ratio | [3] | 84.20% | 87.70% | 86.50% | ||||||||
Non Life [Member] | Global (Non-US) P&C [Member] | ||||||||||||
Segment Reporting [Line Items] | ||||||||||||
Gross premiums written | $ 735,000 | $ 803,000 | $ 818,000 | |||||||||
Net premiums written | 726,000 | 794,000 | 811,000 | |||||||||
Decrease (increase) in unearned premiums | (33,000) | (26,000) | (68,000) | |||||||||
Net premiums earned | 693,000 | 768,000 | 743,000 | |||||||||
Losses and loss expenses and life policy benefits | (473,000) | (438,000) | (373,000) | |||||||||
Acquisition costs | (189,000) | (222,000) | (196,000) | |||||||||
Technical result | $ 31,000 | $ 108,000 | $ 174,000 | |||||||||
Reinsurance Ratios [Abstract] | ||||||||||||
Loss ratio | [1] | 68.30% | 57.00% | 50.20% | ||||||||
Acquisition ratio | [2] | 27.30% | 28.90% | 26.40% | ||||||||
Technical ratio | [3] | 95.60% | 85.90% | 76.60% | ||||||||
Non Life [Member] | Global Specialty [Member] | ||||||||||||
Segment Reporting [Line Items] | ||||||||||||
Gross premiums written | $ 1,556,000 | $ 1,797,000 | $ 1,676,000 | |||||||||
Net premiums written | 1,482,000 | 1,696,000 | 1,579,000 | |||||||||
Decrease (increase) in unearned premiums | 29,000 | (58,000) | (73,000) | |||||||||
Net premiums earned | 1,511,000 | 1,638,000 | 1,506,000 | |||||||||
Losses and loss expenses and life policy benefits | (785,000) | (963,000) | (920,000) | |||||||||
Acquisition costs | (407,000) | (400,000) | (362,000) | |||||||||
Technical result | $ 319,000 | $ 275,000 | $ 224,000 | |||||||||
Reinsurance Ratios [Abstract] | ||||||||||||
Loss ratio | [1] | 52.00% | 58.80% | 61.10% | ||||||||
Acquisition ratio | [2] | 26.90% | 24.40% | 24.00% | ||||||||
Technical ratio | [3] | 78.90% | 83.20% | 85.10% | ||||||||
Non Life [Member] | Catastrophe Segment [Member] | ||||||||||||
Segment Reporting [Line Items] | ||||||||||||
Gross premiums written | $ 382,000 | $ 425,000 | $ 495,000 | |||||||||
Net premiums written | 272,000 | 380,000 | 450,000 | |||||||||
Decrease (increase) in unearned premiums | 12,000 | 4,000 | 3,000 | |||||||||
Net premiums earned | 284,000 | 384,000 | 453,000 | |||||||||
Losses and loss expenses and life policy benefits | (54,000) | (62,000) | (132,000) | |||||||||
Acquisition costs | (25,000) | (42,000) | (44,000) | |||||||||
Technical result | $ 205,000 | $ 280,000 | $ 277,000 | |||||||||
Reinsurance Ratios [Abstract] | ||||||||||||
Loss ratio | [1] | 19.10% | 16.10% | 29.00% | ||||||||
Acquisition ratio | [2] | 8.60% | 11.00% | 9.70% | ||||||||
Technical ratio | [3] | 27.70% | 27.10% | 38.70% | ||||||||
Life and Health [Member] | ||||||||||||
Segment Reporting [Line Items] | ||||||||||||
Gross premiums written | $ 1,271,000 | $ 1,265,000 | $ 972,000 | |||||||||
Net premiums written | 1,208,000 | 1,220,000 | 964,000 | |||||||||
Decrease (increase) in unearned premiums | 1,000 | 2,000 | (7,000) | |||||||||
Net premiums earned | 1,209,000 | 1,222,000 | 957,000 | |||||||||
Losses and loss expenses and life policy benefits | (964,000) | (1,000,000) | (760,000) | |||||||||
Acquisition costs | (153,000) | (149,000) | (125,000) | |||||||||
Technical result | 92,000 | 73,000 | 72,000 | |||||||||
Other income | 6,000 | 8,000 | 11,000 | |||||||||
Other expenses | (63,000) | (68,000) | (71,000) | |||||||||
Underwriting result | 35,000 | 13,000 | 12,000 | |||||||||
Net investment income | 59,000 | 60,000 | 61,000 | |||||||||
Allocated underwriting result | [6] | 94,000 | 73,000 | 73,000 | ||||||||
Corporate and Other [Member] | ||||||||||||
Segment Reporting [Line Items] | ||||||||||||
Gross premiums written | 0 | 0 | 8,000 | |||||||||
Net premiums written | 0 | 0 | 6,000 | |||||||||
Decrease (increase) in unearned premiums | 0 | 0 | 0 | |||||||||
Net premiums earned | 0 | 0 | 6,000 | |||||||||
Losses and loss expenses and life policy benefits | 0 | 0 | 2,000 | |||||||||
Acquisition costs | 0 | 0 | 0 | |||||||||
Technical result | 0 | 0 | 8,000 | |||||||||
Other income | 3,000 | 5,000 | 3,000 | |||||||||
Other expenses | (509,000) | (130,000) | (170,000) | |||||||||
Net investment income | 391,000 | 420,000 | 423,000 | |||||||||
Net realized and unrealized investment (losses) gains | (297,000) | 372,000 | (161,000) | |||||||||
Interest expense | (49,000) | (49,000) | (49,000) | |||||||||
Amortization of intangible assets | (27,000) | (27,000) | (27,000) | |||||||||
Net foreign exchange (losses) gains | (9,000) | 18,000 | (18,000) | |||||||||
Income tax expense | (80,000) | (239,000) | (49,000) | |||||||||
Interest in earnings of equity method investments | $ 6,000 | $ 15,000 | $ 14,000 | |||||||||
[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 expense ratio is obtained by dividing other expenses by net premiums earned. | |||||||||||
[5] | Combined ratio is defined as the sum of the technical ratio and the other 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 expenses. |
Segment Information (Distributi
Segment Information (Distribution of gross and net written premium) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Distribution Of Net Premiums Written [Line Items] | |||
Distribution of net premiums written | 100.00% | 100.00% | 100.00% |
Distribution Of Gross Premiums Written [Line Items] | |||
Distribution of gross premiums written | 100.00% | 100.00% | 100.00% |
Non Life [Member] | Property and Casualty [Member] | Casualty [Member] | |||
Distribution Of Net Premiums Written [Line Items] | |||
Distribution of net premiums written | 12.00% | 12.00% | 12.00% |
Non Life [Member] | Property and Casualty [Member] | Motor [Member] | |||
Distribution Of Net Premiums Written [Line Items] | |||
Distribution of net premiums written | 7.00% | 7.00% | 7.00% |
Non Life [Member] | Property and Casualty [Member] | Multiline and other [Member] | |||
Distribution Of Net Premiums Written [Line Items] | |||
Distribution of net premiums written | 7.00% | 5.00% | 4.00% |
Non Life [Member] | Property and Casualty [Member] | Property [Member] | |||
Distribution Of Net Premiums Written [Line Items] | |||
Distribution of net premiums written | 11.00% | 11.00% | 12.00% |
Non Life [Member] | Specialty [Member] | Agriculture [Member] | |||
Distribution Of Net Premiums Written [Line Items] | |||
Distribution of net premiums written | 11.00% | 12.00% | 11.00% |
Non Life [Member] | Specialty [Member] | Aviation/Space [Member] | |||
Distribution Of Net Premiums Written [Line Items] | |||
Distribution of net premiums written | 4.00% | 4.00% | 4.00% |
Non Life [Member] | Specialty [Member] | Catastrophe Line Of Business [Member] | |||
Distribution Of Net Premiums Written [Line Items] | |||
Distribution of net premiums written | 5.00% | 6.00% | 8.00% |
Non Life [Member] | Specialty [Member] | Credit Surety [Member] | |||
Distribution Of Net Premiums Written [Line Items] | |||
Distribution of net premiums written | 6.00% | 7.00% | 6.00% |
Non Life [Member] | Specialty [Member] | Energy [Member] | |||
Distribution Of Net Premiums Written [Line Items] | |||
Distribution of net premiums written | 1.00% | 1.00% | 2.00% |
Non Life [Member] | Specialty [Member] | Engineering [Member] | |||
Distribution Of Net Premiums Written [Line Items] | |||
Distribution of net premiums written | 3.00% | 3.00% | 4.00% |
Non Life [Member] | Specialty [Member] | Marine [Member] | |||
Distribution Of Net Premiums Written [Line Items] | |||
Distribution of net premiums written | 4.00% | 5.00% | 6.00% |
Non Life [Member] | Specialty [Member] | Specialty casualty [Member] | |||
Distribution Of Net Premiums Written [Line Items] | |||
Distribution of net premiums written | 3.00% | 3.00% | 3.00% |
Non Life [Member] | Specialty [Member] | Specialty property [Member] | |||
Distribution Of Net Premiums Written [Line Items] | |||
Distribution of net premiums written | 3.00% | 3.00% | 3.00% |
Life and Health [Member] | |||
Distribution Of Net Premiums Written [Line Items] | |||
Distribution of net premiums written | 23.00% | 21.00% | 18.00% |
Asia, Australia and New Zealand | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Distribution of gross premiums written | 12.00% | 11.00% | 11.00% |
Europe | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Distribution of gross premiums written | 37.00% | 40.00% | 40.00% |
Latin America, Caribbean and Africa | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Distribution of gross premiums written | 10.00% | 10.00% | 10.00% |
North America | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Distribution of gross premiums written | 41.00% | 39.00% | 39.00% |
Segment Information (Broker det
Segment Information (Broker details) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Economic Dependence [Line Items] | |||
Cedant Percentage Of Gross Written Premium | 3.00% | 4.00% | 4.00% |
North America Segment [Member] | |||
Economic Dependence [Line Items] | |||
Broker Percentage Of Gross Written Premium | 63.00% | 59.00% | 60.00% |
Global (Non-US) P&C [Member] | |||
Economic Dependence [Line Items] | |||
Broker Percentage Of Gross Written Premium | 28.00% | 31.00% | 29.00% |
Global Specialty [Member] | |||
Economic Dependence [Line Items] | |||
Broker Percentage Of Gross Written Premium | 38.00% | 38.00% | 41.00% |
Catastrophe Segment [Member] | |||
Economic Dependence [Line Items] | |||
Broker Percentage Of Gross Written Premium | 75.00% | 70.00% | 74.00% |
Life and Health [Member] | |||
Economic Dependence [Line Items] | |||
Broker Percentage Of Gross Written Premium | 16.00% | 12.00% | 12.00% |
Broker A [Member] | |||
Economic Dependence [Line Items] | |||
Broker Percentage Of Gross Written Premium | 19.20% | 20.00% | 22.00% |
Broker B [Member] | |||
Economic Dependence [Line Items] | |||
Broker Percentage Of Gross Written Premium | 22.10% | 20.00% | 21.00% |
Other Expenses (Details)
Other Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Expenses [Abstract] | |||
Termination Fee Paid | $ 315 | ||
Other Transaction Costs | 63 | ||
Restructuring costs incurred | $ 11 | $ 58 | |
Change In Contingent Liability In Business Combination | 25 | ||
Business Combination, Contingent Consideration, Liability | $ 29 | $ 4 |
Unaudited Quarterly Financia104
Unaudited Quarterly Financial Information Unaudited Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||
Net premiums written | $ 1,064,000 | $ 1,190,000 | $ 1,322,000 | $ 1,653,000 | $ 1,220,000 | $ 1,343,000 | $ 1,419,000 | $ 1,738,000 | $ 5,229,548 | $ 5,719,884 | $ 5,396,526 | |||
Net premiums earned | 1,294,000 | 1,412,000 | 1,328,000 | 1,235,000 | 1,446,000 | 1,557,000 | 1,353,000 | 1,254,000 | 5,269,178 | 5,609,195 | 5,198,210 | |||
Net investment income | 108,000 | 117,000 | 120,000 | 105,000 | 115,000 | 118,000 | 130,000 | 117,000 | 449,784 | 479,696 | 484,367 | |||
Net realized and unrealized investment (losses) gains | (24,000) | (133,000) | (256,000) | 116,000 | 98,000 | (34,000) | 166,000 | 142,000 | (297,479) | 371,796 | (160,735) | |||
Other income | 1,000 | 3,000 | 0 | 4,000 | 4,000 | 2,000 | 9,000 | 0 | 9,144 | 16,190 | 16,565 | |||
Total revenues | 1,379,000 | 1,399,000 | 1,192,000 | 1,460,000 | 1,663,000 | 1,643,000 | 1,658,000 | 1,513,000 | 5,430,627 | 6,476,877 | 5,538,407 | |||
Losses and loss expenses and life policy benefits | 767,000 | 804,000 | 865,000 | 721,000 | 870,000 | 960,000 | 884,000 | 749,000 | 3,157,420 | 3,462,770 | 3,157,808 | |||
Acquisition costs | 311,000 | 347,000 | 283,000 | 276,000 | 325,000 | 322,000 | 303,000 | 265,000 | 1,217,003 | 1,213,822 | 1,077,628 | |||
Other expenses | 120,000 | 416,000 | 130,000 | 125,000 | 123,000 | 108,000 | 107,000 | 111,000 | 790,723 | 449,688 | 500,466 | |||
Interest expense | 12,000 | 12,000 | 12,000 | 12,000 | 12,000 | 12,000 | 12,000 | 12,000 | 48,988 | 48,963 | 48,929 | |||
Amortization of intangible assets | 6,000 | 7,000 | 7,000 | 7,000 | 6,000 | 7,000 | 7,000 | 7,000 | 26,593 | 27,486 | 27,180 | |||
Net foreign exchange (gains) losses | (6,000) | 22,000 | 6,000 | (13,000) | (7,000) | (8,000) | (2,000) | 0 | 9,461 | (18,201) | 18,203 | |||
Total expenses | 1,210,000 | 1,608,000 | 1,303,000 | 1,128,000 | 1,329,000 | 1,401,000 | 1,311,000 | 1,144,000 | 5,250,188 | 5,184,528 | 4,830,214 | |||
Income (loss) before taxes and interest in earnings (losses) of equity method investments | 169,000 | (209,000) | (111,000) | 332,000 | 334,000 | 242,000 | 347,000 | 369,000 | 180,439 | 1,292,349 | 708,193 | |||
Income tax (benefit) expense | (3,000) | 17,000 | (14,000) | 80,000 | 53,000 | 46,000 | 78,000 | 62,000 | 79,664 | 239,506 | 48,416 | |||
Interest in earnings (losses) of equity method investments | 5,000 | (3,000) | 8,000 | (4,000) | (1,000) | 5,000 | 5,000 | 6,000 | 6,375 | 15,270 | 13,665 | |||
Net income (loss) | 177,000 | (229,000) | (89,000) | 248,000 | 280,000 | 201,000 | 274,000 | 313,000 | 107,150 | 1,068,113 | 673,442 | |||
Net income attributable to noncontrolling interests | 0 | 0 | 0 | (2,000) | (3,000) | (5,000) | (2,000) | (3,000) | (2,769) | (13,139) | (9,434) | |||
Net income (loss) attributable to PartnerRe Ltd. | 177,000 | (229,000) | (89,000) | 246,000 | 277,000 | 196,000 | 272,000 | 310,000 | 104,381 | 1,054,974 | 664,008 | |||
Preferred dividends | 14,000 | 14,000 | 14,000 | 14,000 | 14,000 | 14,000 | 14,000 | 14,000 | 56,735 | 56,735 | 57,861 | |||
Net income (loss) attributable to PartnerRe Ltd. common shareholders | $ 163,000 | $ (243,000) | $ (103,000) | $ 232,000 | $ 263,000 | $ 182,000 | $ 258,000 | $ 296,000 | $ 47,646 | $ 998,239 | $ 597,012 | |||
Basic net income (loss) per common share | $ 3.39 | $ (5.08) | $ (2.16) | $ 4.88 | $ 5.39 | $ 3.68 | $ 5.13 | $ 5.72 | $ 1 | $ 19.96 | $ 10.78 | |||
Diluted net income (loss) per common share | 3.30 | (5.08) | (2.16) | 4.76 | 5.26 | 3.60 | 5.02 | 5.61 | 0.97 | [1] | 19.51 | [1] | 10.58 | [1] |
Dividends declared per common share | $ 0.70 | $ 0.70 | $ 0.70 | $ 0.70 | $ 0.67 | $ 0.67 | $ 0.67 | $ 0.67 | $ 2.80 | $ 2.68 | $ 2.56 | |||
[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. |
SCHEDULE I - Consolidated Su105
SCHEDULE I - Consolidated Summary of Investments Other Than Investments in Related Parties (Details) $ in Thousands | Dec. 31, 2015USD ($) | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Investments Not Carried At Fair Value | $ 208,000 | |
Trading securities [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Fair value | 14,129,710 | [1] |
Amount at which shown in the balance sheet | 14,129,710 | [1] |
Trading securities [Member] | Fixed maturities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 13,313,819 | [1],[2] |
Fair value | 13,448,262 | [1] |
Amount at which shown in the balance sheet | 13,448,262 | [1] |
Trading securities [Member] | Fixed maturities | U.S. government and government sponsored enterprises | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 2,887,000 | [1],[2] |
Fair value | 2,872,845 | [1] |
Amount at which shown in the balance sheet | 2,872,845 | [1] |
Trading securities [Member] | Fixed maturities | U.S. states, territories and municipalities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 743,413 | [1],[2] |
Fair value | 778,326 | [1] |
Amount at which shown in the balance sheet | 778,326 | [1] |
Trading securities [Member] | Fixed maturities | Non-U.S. sovereign government, supranational and government related | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 1,271,416 | [1],[2] |
Fair value | 1,332,925 | [1] |
Amount at which shown in the balance sheet | 1,332,925 | [1] |
Trading securities [Member] | Fixed maturities | Corporate | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 5,035,006 | [1],[2] |
Fair value | 5,086,199 | [1] |
Amount at which shown in the balance sheet | 5,086,199 | [1] |
Trading securities [Member] | Fixed maturities | Asset-backed securities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 1,040,144 | [1],[2] |
Fair value | 1,037,816 | [1] |
Amount at which shown in the balance sheet | 1,037,816 | [1] |
Trading securities [Member] | Fixed maturities | Residential mortgage-backed securities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 2,287,173 | [1],[2] |
Fair value | 2,290,640 | [1] |
Amount at which shown in the balance sheet | 2,290,640 | [1] |
Trading securities [Member] | Fixed maturities | Other mortgage-backed securities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 49,667 | [1],[2] |
Fair value | 49,511 | [1] |
Amount at which shown in the balance sheet | 49,511 | [1] |
Trading securities [Member] | Equities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 418,428 | [1],[2] |
Fair value | 443,861 | [1] |
Amount at which shown in the balance sheet | 443,861 | [1] |
Trading securities [Member] | Equities | Banks, trust and insurance companies | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 89,934 | [1],[2] |
Fair value | 137,704 | [1] |
Amount at which shown in the balance sheet | 137,704 | [1] |
Trading securities [Member] | Equities | Public utilities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 8,501 | [1],[2] |
Fair value | 7,796 | [1] |
Amount at which shown in the balance sheet | 7,796 | [1] |
Trading securities [Member] | Equities | Industrial, miscellaneous and all other | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 319,993 | [1],[2] |
Fair value | 298,361 | [1] |
Amount at which shown in the balance sheet | 298,361 | [1] |
Trading securities [Member] | Short-term investments | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 46,689 | [1],[2] |
Fair value | 46,688 | [1] |
Amount at which shown in the balance sheet | 46,688 | [1] |
Trading securities [Member] | Other invested assets [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Fair value | 190,899 | [1],[3] |
Amount at which shown in the balance sheet | $ 190,899 | [1],[3] |
[1] | Excludes the investment portfolio underlying the funds held – directly managed account. While the net investment income and net realized and unrealized gains and losses inure to the benefit of the Company, the Company does not legally own the investments. | |
[2] | Original cost of fixed maturities reduced by repayments and adjusted for amortization of premiums or accrual of discounts. Original cost of equity securities. | |
[3] | Other invested assets excludes the Company’s investments accounted for using the cost method of accounting and the equity method of accounting of $208 million. |
SCHEDULE II - Condensed Balance
SCHEDULE II - Condensed Balance Sheets - Parent Company Only (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Assets | |||||
Fixed maturities, at fair value (amortized cost: 2015, $254,486) | $ 13,448,262 | $ 13,918,745 | |||
Cash and cash equivalents | 1,577,097 | 1,313,468 | $ 1,496,485 | $ 1,121,705 | |
Other | 31,254 | 45,603 | |||
Total assets | 21,406,043 | 22,270,357 | |||
Liabilities | |||||
Accounts payable, accrued expenses and other | 411,539 | 304,728 | |||
Total liabilities | 14,503,092 | 15,165,946 | |||
Shareholders’ Equity | |||||
Common shares (par value $1.00; issued: 2015 and 2014, 87,237,220 shares) | 87,237 | 87,237 | |||
Preferred shares (par value $1.00; issued and outstanding: 2015 and 2014, 34,150,000 shares; aggregate liquidation value: 2015 and 2014, $853,750) | 34,150 | 34,150 | |||
Additional paid-in capital | 3,982,147 | 3,949,665 | |||
Accumulated other comprehensive loss | (83,283) | (34,083) | |||
Retained earnings | 6,146,802 | 6,270,811 | |||
Common shares held in treasury, at cost (2015, 39,303,068 shares; 2014, 39,400,936 shares) | (3,266,552) | (3,258,870) | |||
Total shareholders’ equity attributable to PartnerRe Ltd. | 6,900,501 | 7,048,910 | 6,709,532 | ||
Total liabilities and shareholders’ equity | 21,406,043 | 22,270,357 | |||
CondensedFinancialStatementsParentheticals [Abstract] | |||||
Fixed maturities, amortized cost | $ 13,313,819 | $ 13,489,633 | |||
Common shares, par value | $ 1 | $ 1 | |||
Common shares, shares issued | 87,237,220 | 87,237,220 | |||
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 | 39,303,068 | 39,400,936 | |||
Senior Notes Debt [Member] | Notes Issued By Partner Re Finance A LLC [Member] | |||||
Parent Company Guarantee Disclosures [Abstract] | |||||
Interest rate on obligations guaranteed by the Parent Company | 6.875% | ||||
Senior Notes Debt [Member] | Notes Issued By Partner Re Finance B LLC [Member] | |||||
Parent Company Guarantee Disclosures [Abstract] | |||||
Interest rate on obligations guaranteed by the Parent Company | 5.50% | ||||
Parent Company [Member] | |||||
Assets | |||||
Fixed maturities, at fair value (amortized cost: 2015, $254,486) | $ 252,538 | $ 0 | |||
Cash and cash equivalents | 94,835 | 371 | $ 1,286 | $ 30,372 | |
Investments in subsidiaries | 8,187,691 | 8,242,199 | |||
Intercompany loans and balances receivable | 605,697 | 675,408 | |||
Other | 2,955 | 2,476 | |||
Total assets | 9,143,716 | 8,920,454 | |||
Liabilities | |||||
Intercompany loans and balances payable (1) | [1] | 2,211,106 | 1,845,690 | ||
Accounts payable, accrued expenses and other | 32,109 | 25,854 | |||
Total liabilities | 2,243,215 | 1,871,544 | |||
Shareholders’ Equity | |||||
Common shares (par value $1.00; issued: 2015 and 2014, 87,237,220 shares) | 87,237 | 87,237 | |||
Preferred shares (par value $1.00; issued and outstanding: 2015 and 2014, 34,150,000 shares; aggregate liquidation value: 2015 and 2014, $853,750) | 34,150 | 34,150 | |||
Additional paid-in capital | 3,982,147 | 3,949,665 | |||
Accumulated other comprehensive loss | (83,283) | (34,083) | |||
Retained earnings | 6,146,802 | 6,270,811 | |||
Common shares held in treasury, at cost (2015, 39,303,068 shares; 2014, 39,400,936 shares) | (3,266,552) | (3,258,870) | |||
Total shareholders’ equity attributable to PartnerRe Ltd. | 6,900,501 | 7,048,910 | |||
Total liabilities and shareholders’ equity | 9,143,716 | $ 8,920,454 | |||
CondensedFinancialStatementsParentheticals [Abstract] | |||||
Fixed maturities, amortized cost | $ 254,486 | ||||
Common shares, par value | $ 1 | $ 1 | |||
Common shares, shares issued | 87,237,220 | 87,237,220 | |||
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 | 39,303,068 | 39,400,936 | |||
Parent Company [Member] | Capital efficient notes [Member] | Notes Issued By Partner Re Finance II Inc [Member] | FinancialGuaranteeMember | |||||
Parent Company Guarantee Disclosures [Abstract] | |||||
Guarantor Obligations, Current Carrying Value | $ 63,400 | ||||
Interest rate on obligations guaranteed by the Parent Company | 6.44% | ||||
Parent Company [Member] | Senior Notes Debt [Member] | Notes Issued By Partner Re Finance A LLC [Member] | FinancialGuaranteeMember | |||||
Parent Company Guarantee Disclosures [Abstract] | |||||
Guarantor Obligations, Current Carrying Value | $ 250,000 | ||||
Interest rate on obligations guaranteed by the Parent Company | 6.875% | ||||
Parent Company [Member] | Senior Notes Debt [Member] | Notes Issued By Partner Re Finance B LLC [Member] | FinancialGuaranteeMember | |||||
Parent Company Guarantee Disclosures [Abstract] | |||||
Guarantor Obligations, Current Carrying Value | $ 500,000 | ||||
Interest rate on obligations guaranteed by the Parent Company | 5.50% | ||||
[1] | The parent has fully and unconditionally guaranteed on a subordinated basis all obligations of PartnerRe Finance II Inc., an indirect 100% owned finance subsidiary of the parent, related to the remaining $63.4 million aggregate principal amount of 6.440% Fixed-to-Floating Rate Junior Subordinated Capital Efficient Notes (CENts). The parent’s obligations under this guarantee are unsecured and rank junior in priority of payments to the parent’s Senior Notes.The parent has fully and unconditionally guaranteed all obligations of PartnerRe Finance A and PartnerRe Finance B, indirect 100% owned finance subsidiaries of the parent, related to the issuance of $250 million aggregate principal amount of 6.875% Senior Notes and $500 million aggregate principal amount of 5.500% Senior Notes. The parent’s obligations under these guarantees are senior and unsecured and rank equally with all other senior unsecured indebtedness of the parent. |
SCHEDULE II - Condensed Stateme
SCHEDULE II - Condensed Statements of Operations - Parent Company Only (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Other Expenses | ||||||||||||
Termination Fee Paid | $ 315,000 | |||||||||||
Other Transaction Costs | 63,000 | |||||||||||
Revenues | ||||||||||||
Net investment income | $ 108,000 | $ 117,000 | $ 120,000 | $ 105,000 | $ 115,000 | $ 118,000 | $ 130,000 | $ 117,000 | 449,784 | $ 479,696 | $ 484,367 | |
Net realized and unrealized investment losses | (24,000) | (133,000) | (256,000) | 116,000 | 98,000 | (34,000) | 166,000 | 142,000 | (297,479) | 371,796 | (160,735) | |
Total revenues | 1,379,000 | 1,399,000 | 1,192,000 | 1,460,000 | 1,663,000 | 1,643,000 | 1,658,000 | 1,513,000 | 5,430,627 | 6,476,877 | 5,538,407 | |
Expenses | ||||||||||||
Other expenses | 120,000 | 416,000 | 130,000 | 125,000 | 123,000 | 108,000 | 107,000 | 111,000 | 790,723 | 449,688 | 500,466 | |
Net foreign exchange (gains) losses | (6,000) | 22,000 | 6,000 | (13,000) | (7,000) | (8,000) | (2,000) | 0 | 9,461 | (18,201) | 18,203 | |
Net income attributable to PartnerRe Ltd. | 177,000 | (229,000) | (89,000) | 246,000 | 277,000 | 196,000 | 272,000 | 310,000 | 104,381 | 1,054,974 | 664,008 | |
Preferred dividends | 14,000 | 14,000 | 14,000 | 14,000 | 14,000 | 14,000 | 14,000 | 14,000 | 56,735 | 56,735 | 57,861 | |
Loss on redemption of preferred shares | 0 | 0 | 9,135 | |||||||||
Net income attributable to PartnerRe Ltd. common shareholders | 163,000 | (243,000) | (103,000) | 232,000 | 263,000 | 182,000 | 258,000 | 296,000 | 47,646 | 998,239 | 597,012 | |
Comprehensive income | ||||||||||||
Net income attributable to PartnerRe Ltd. | $ 177,000 | $ (229,000) | $ (89,000) | $ 246,000 | $ 277,000 | $ 196,000 | $ 272,000 | $ 310,000 | 104,381 | 1,054,974 | 664,008 | |
Total other comprehensive loss, net of tax | (49,200) | (21,845) | (22,835) | |||||||||
Comprehensive income attributable to PartnerRe Ltd. | 55,181 | 1,033,129 | 641,173 | |||||||||
Parent Company [Member] | ||||||||||||
Other Expenses | ||||||||||||
Termination Fee Paid | 315,000 | |||||||||||
Other Transaction Costs | 63,000 | |||||||||||
Revenues | ||||||||||||
Net investment income | 3,516 | 0 | 18 | |||||||||
Interest income on intercompany loans | 12,295 | 14,669 | 11,039 | |||||||||
Net realized and unrealized investment losses | (1,104) | 0 | 0 | |||||||||
Total revenues | 14,707 | 14,669 | 11,057 | |||||||||
Expenses | ||||||||||||
Other expenses | 435,404 | [1] | 58,076 | 91,800 | ||||||||
Interest expense on intercompany loans | 6,243 | 1,696 | 1,867 | |||||||||
Net foreign exchange (gains) losses | (3,199) | (3,192) | 9,895 | |||||||||
Total expenses | 438,448 | 56,580 | 103,562 | |||||||||
Loss before equity in net income of subsidiaries | (423,741) | (41,911) | (92,505) | |||||||||
Equity in net income of subsidiaries | 528,122 | 1,096,885 | 756,513 | |||||||||
Net income attributable to PartnerRe Ltd. | 104,381 | 1,054,974 | 664,008 | |||||||||
Preferred dividends | 56,735 | 56,735 | 57,861 | |||||||||
Loss on redemption of preferred shares | 0 | 0 | 9,135 | |||||||||
Net income attributable to PartnerRe Ltd. common shareholders | 47,646 | 998,239 | 597,012 | |||||||||
Comprehensive income | ||||||||||||
Net income attributable to PartnerRe Ltd. | 104,381 | 1,054,974 | 664,008 | |||||||||
Total other comprehensive loss, net of tax | (49,200) | (21,845) | (22,835) | |||||||||
Comprehensive income attributable to PartnerRe Ltd. | $ 55,181 | $ 1,033,129 | $ 641,173 | |||||||||
[1] | Other expenses for the year ended December 31, 2015 include the AXIS Termination Fee of $315 million and Transaction Costs of $63 million. |
SCHEDULE II - Condensed Stat108
SCHEDULE II - Condensed Statements of Cash Flows - Parent Company Only (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Cash flows from operating activities | |||||||||||||
Net income attributable to PartnerRe Ltd. | $ 177,000 | $ (229,000) | $ (89,000) | $ 246,000 | $ 277,000 | $ 196,000 | $ 272,000 | $ 310,000 | $ 104,381 | $ 1,054,974 | $ 664,008 | ||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||||||||
Other, net | (158) | 52,796 | 108,525 | ||||||||||
Net cash used in operating activities | 318,812 | 852,599 | 827,267 | ||||||||||
Cash flows from investing activities | |||||||||||||
Sales and redemptions of short-term investments | 178,166 | 92,956 | 312,376 | ||||||||||
Other, net | (151,198) | (58,840) | (786) | ||||||||||
Net cash provided by (used in) investing activities | 295,274 | (250,007) | 417,993 | ||||||||||
Cash flows from financing activities | |||||||||||||
Cash dividends paid to common and preferred shareholders (2) | (190,339) | (190,960) | (200,078) | ||||||||||
Repurchase of common shares | (71,376) | (547,120) | (715,421) | ||||||||||
Reissuance of treasury shares and issuance of common shares, net of taxes paid | 7,996 | 16,785 | 51,111 | ||||||||||
Net proceeds from issuance of preferred shares | 0 | 0 | 241,265 | ||||||||||
Redemption of preferred shares | 0 | 0 | (290,000) | ||||||||||
Net cash (used in) provided by financing activities | (309,539) | (735,560) | (865,930) | ||||||||||
Effect of foreign exchange rate changes on cash | (40,918) | (50,049) | (4,550) | ||||||||||
Increase (decrease) in cash and cash equivalents | 263,629 | (183,017) | 374,780 | ||||||||||
Cash and cash equivalents—beginning of year | 1,313,468 | 1,496,485 | 1,313,468 | 1,496,485 | 1,121,705 | ||||||||
Cash and cash equivalents—end of year | 1,577,097 | 1,313,468 | 1,577,097 | 1,313,468 | 1,496,485 | ||||||||
Supplemental cash flow information: | |||||||||||||
Interest paid | 49,259 | 49,259 | 49,259 | ||||||||||
Fixed maturities | |||||||||||||
Cash flows from investing activities | |||||||||||||
Purchases of fixed maturities | (8,608,288) | (9,844,660) | (8,872,874) | ||||||||||
Equities | |||||||||||||
Cash flows from investing activities | |||||||||||||
Purchases of fixed maturities | (647,533) | (452,201) | (695,456) | ||||||||||
Parent Company [Member] | |||||||||||||
Cash flows from operating activities | |||||||||||||
Net income attributable to PartnerRe Ltd. | 104,381 | 1,054,974 | 664,008 | ||||||||||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||||||||
Equity in net income of subsidiaries | (528,122) | (1,096,885) | (756,513) | ||||||||||
Other, net | 32,725 | 33,598 | 27,397 | ||||||||||
Net cash used in operating activities | (391,016) | (8,313) | (65,108) | ||||||||||
Cash flows from investing activities | |||||||||||||
Advances to/from subsidiaries, net | 97,532 | (12,635) | 666,444 | ||||||||||
Net issue of intercompany loans receivable and payable | 5,955 | 2,500 | 14,473 | ||||||||||
Sales and redemptions of fixed maturities | 16,818 | 0 | 0 | ||||||||||
Dividends received from subsidiaries | 418,789 | 0 | 0 | ||||||||||
Other, net | 13,292 | 60 | 196 | ||||||||||
Net cash provided by (used in) investing activities | [1] | 526,628 | (10,075) | 681,113 | |||||||||
Cash flows from financing activities | |||||||||||||
Cash dividends paid to common and preferred shareholders (2) | [2] | (47,582) | 0 | (103,311) | |||||||||
Repurchase of common shares | [2] | 0 | 0 | (546,617) | |||||||||
Reissuance of treasury shares and issuance of common shares, net of taxes paid | 7,996 | 16,785 | 51,111 | ||||||||||
Net proceeds from issuance of preferred shares | 0 | 0 | 241,265 | ||||||||||
Redemption of preferred shares | 0 | 0 | (290,000) | ||||||||||
Net cash (used in) provided by financing activities | (39,586) | 16,785 | (647,552) | ||||||||||
Effect of foreign exchange rate changes on cash | (1,562) | 688 | 2,461 | ||||||||||
Increase (decrease) in cash and cash equivalents | 94,464 | (915) | (29,086) | ||||||||||
Cash and cash equivalents—beginning of year | $ 371 | $ 1,286 | 371 | 1,286 | 30,372 | ||||||||
Cash and cash equivalents—end of year | $ 94,835 | $ 371 | 94,835 | 371 | 1,286 | ||||||||
Supplemental cash flow information: | |||||||||||||
Interest paid | 0 | 0 | 1,528 | ||||||||||
Non Cash Transactions [Abstract] | |||||||||||||
Non-cash dividends received from subsidiary | 300,000 | 833,000 | 1,100,000 | ||||||||||
Parent Company [Member] | Fixed maturities | |||||||||||||
Cash flows from investing activities | |||||||||||||
Purchases of fixed maturities | 25,758 | [3] | 0 | 0 | |||||||||
Subsidiaries [Member] | |||||||||||||
Cash flows from financing activities | |||||||||||||
Repurchase of common shares | 71,000 | 547,000 | 169,000 | ||||||||||
Non Cash Transactions [Abstract] | |||||||||||||
Payment Of Dividends By Subsidiary On Behalf Of Parent | 143,000 | $ 191,000 | $ 97,000 | ||||||||||
Fair Value of Assets Acquired | 248,000 | ||||||||||||
Noncash acquisition, Net Nonmonetary Assets Acquired | [4] | $ 191,000 | |||||||||||
[1] | The parent received non-cash dividends from its subsidiaries of $300 million, $833 million and $1,100 million for the years ended December 31, 2015, 2014 and 2013, respectively, which have been excluded from the Condensed Statements of Cash Flows—Parent Company Only. | ||||||||||||
[2] | During the years ended December 31, 2015, 2014 and 2013, dividends paid to common and preferred shareholders of $143 million, $191 million and $97 million, respectively, and the repurchase of common shares of $71 million, $547 million and $169 million, respectively, were paid by a subsidiary on behalf of the parent and have been excluded from the Condensed Statements of Cash Flows—Parent Company Only. | ||||||||||||
[3] | During the year ended December 31, 2015, the parent received $248 million of fixed maturities from its subsidiaries, which has been excluded from the Condensed Statements of Cash Flows—Parent Company Only. | ||||||||||||
[4] | During the year ended December 31, 2015, the parent purchased a subsidiary from another subsidiary for $191 million in exchange for an intercompany loan payable. These transactions have been excluded from the Condensed Statements of Cash Flows—Parent Company Only. |
SCHEDULE III - Supplementary109
SCHEDULE III - Supplementary Insurance Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Supplementary Insurance Information, by Segment [Line Items] | |||||
Deferred Policy Acquisition Costs | $ 629,372 | $ 661,186 | $ 644,952 | ||
Gross Reserves | 9,064,711 | 9,745,806 | 10,646,318 | ||
Unearned Premiums | 1,644,757 | 1,750,607 | 1,723,767 | ||
Other Benefits Payable | 2,051,935 | 2,050,107 | 1,974,133 | ||
Premium Revenue | 5,269,178 | 5,609,195 | 5,198,210 | ||
Net Investment Income(1) | [1] | 449,784 | 479,696 | 484,367 | |
Losses Incurred | 3,157,420 | 3,462,770 | 3,157,808 | ||
Amortization of DAC | 1,217,003 | 1,213,822 | 1,077,628 | ||
Other Expenses(2) (3) | [2] | 790,723 | [3] | 449,688 | 500,466 |
Premiums Written | 4,343,345 | 4,765,907 | 4,556,765 | ||
Non Life [Member] | |||||
Supplementary Insurance Information, by Segment [Line Items] | |||||
Deferred Policy Acquisition Costs | 449,216 | 463,958 | 434,109 | ||
Gross Reserves | 9,064,711 | 9,745,806 | 10,646,318 | ||
Unearned Premiums | 1,629,537 | 1,731,212 | 1,699,393 | ||
Other Benefits Payable | 0 | 0 | 0 | ||
Premium Revenue | 4,059,665 | 4,387,406 | 4,234,850 | ||
Losses Incurred | 2,193,449 | 2,462,568 | 2,399,867 | ||
Amortization of DAC | 1,063,693 | 1,065,117 | 952,570 | ||
Other Expenses(2) (3) | [2] | 218,319 | [3] | 252,322 | 258,997 |
Premiums Written | 4,022,067 | 4,500,214 | 4,426,719 | ||
Life and Health [Member] | |||||
Supplementary Insurance Information, by Segment [Line Items] | |||||
Deferred Policy Acquisition Costs | 180,156 | 197,228 | 210,841 | ||
Gross Reserves | 0 | 0 | 0 | ||
Unearned Premiums | 15,220 | 19,395 | 24,337 | ||
Other Benefits Payable | 2,051,935 | 2,050,107 | 1,974,133 | ||
Premium Revenue | 1,209,513 | 1,221,751 | 957,146 | ||
Net Investment Income(1) | [1] | 58,537 | 60,369 | 60,897 | |
Losses Incurred | 964,421 | 1,000,202 | 760,552 | ||
Amortization of DAC | 153,318 | 148,689 | 124,631 | ||
Other Expenses(2) (3) | [2] | 63,451 | [3] | 67,811 | 71,092 |
Premiums Written | 321,278 | 265,693 | 123,936 | ||
Corporate and Other [Member] | |||||
Supplementary Insurance Information, by Segment [Line Items] | |||||
Deferred Policy Acquisition Costs | 0 | 0 | 2 | ||
Gross Reserves | 0 | 0 | 0 | ||
Unearned Premiums | 0 | 0 | 37 | ||
Other Benefits Payable | 0 | 0 | 0 | ||
Premium Revenue | 0 | 38 | 6,214 | ||
Net Investment Income(1) | [1] | 391,247 | 419,327 | 423,470 | |
Losses Incurred | (450) | 0 | (2,611) | ||
Amortization of DAC | (8) | 16 | 427 | ||
Other Expenses(2) (3) | [2] | 508,953 | [3] | 129,555 | 170,377 |
Premiums Written | $ 0 | $ 0 | $ 6,110 | ||
[1] | Because the Company does not manage its assets by segment, net investment income is not allocated to the Non-life segment of the reinsurance operations. However, because of the interest-sensitive nature of some of the Company’s Life products, net investment income is considered in Management’s assessment of the profitability of the Life and Health segment. | ||||
[2] | Other expenses are a component of underwriting result for the Non-life and Life and Health segments. Other expenses included in Corporate and Other represent corporate expenses and other expenses related to the Company’s principal finance transactions, insurance-linked securities and strategic investments. | ||||
[3] | Other expenses for the year ended December 31, 2015 include the AXIS Termination Fee and Transaction Costs. |
SCHEDULE IV - Reinsurance (Deta
SCHEDULE IV - Reinsurance (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reinsurance Premiums For Insurance Companies By Product Segment Net Amount [Abstract] | |||||||||||
Gross amount | $ 252,577 | $ 209,479 | $ 93,091 | ||||||||
Ceded to other companies | 301,143 | 215,203 | 175,656 | ||||||||
Assumed from other companies | 5,317,744 | 5,614,919 | 5,280,775 | ||||||||
Net amount | $ 1,294,000 | $ 1,412,000 | $ 1,328,000 | $ 1,235,000 | $ 1,446,000 | $ 1,557,000 | $ 1,353,000 | $ 1,254,000 | $ 5,269,178 | $ 5,609,195 | $ 5,198,210 |
Percentage of amount assumed to net | 101.00% | 100.00% | 102.00% | ||||||||
Life reinsurance in force | |||||||||||
Gross amount | 0 | 0 | $ 0 | $ 0 | $ 0 | ||||||
Ceded to other companies | 2,189,254 | 2,322,845 | 2,189,254 | 2,322,845 | 1,629,920 | ||||||
Assumed from other companies | 180,825,066 | 198,284,805 | 180,825,066 | 198,284,805 | 211,247,212 | ||||||
Net amount | $ 178,635,812 | $ 195,961,960 | $ 178,635,812 | $ 195,961,960 | $ 209,617,292 | ||||||
Percentage of amount assumed to net | 101.00% | 101.00% | 101.00% | 101.00% | 101.00% | ||||||
Life [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment Net Amount [Abstract] | |||||||||||
Gross amount | $ 0 | $ 0 | $ 0 | ||||||||
Ceded to other companies | 4,802 | 5,031 | 5,000 | ||||||||
Assumed from other companies | 873,854 | 943,054 | 821,737 | ||||||||
Net amount | $ 869,052 | $ 938,023 | $ 816,737 | ||||||||
Percentage of amount assumed to net | 101.00% | 101.00% | 101.00% | ||||||||
Accident and health [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment Net Amount [Abstract] | |||||||||||
Gross amount | $ 89,535 | $ 66,090 | $ 0 | ||||||||
Ceded to other companies | 57,978 | 40,065 | 2,912 | ||||||||
Assumed from other companies | 308,904 | 257,703 | 143,321 | ||||||||
Net amount | $ 340,461 | $ 283,728 | $ 140,409 | ||||||||
Percentage of amount assumed to net | 91.00% | 91.00% | 102.00% | ||||||||
Property and casualty [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment Net Amount [Abstract] | |||||||||||
Gross amount | $ 163,042 | $ 143,389 | $ 93,091 | ||||||||
Ceded to other companies | 238,363 | 170,107 | 167,744 | ||||||||
Assumed from other companies | 4,134,986 | 4,414,162 | 4,315,717 | ||||||||
Net amount | $ 4,059,665 | $ 4,387,444 | $ 4,241,064 | ||||||||
Percentage of amount assumed to net | 102.00% | 101.00% | 102.00% |
SCHEDULE VI - Supplemental I111
SCHEDULE VI - Supplemental Information Concerning Property-Casualty Insurance Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Supplemental Information Concerning Property-Casualty Insurance Operations [Line Items] | |||
Unearned Premiums | $ 1,644,757 | $ 1,750,607 | $ 1,723,767 |
Premiums Earned | 5,269,178 | 5,609,195 | 5,198,210 |
Losses and Loss Expenses Incurred | 3,157,420 | 3,462,770 | 3,157,808 |
Premiums Written | 4,343,345 | 4,765,907 | 4,556,765 |
Supplementary Insurance Information, Deferred Policy Acquisition Costs | 629,372 | 661,186 | 644,952 |
Consolidated subsidiaries [Member] | |||
Supplemental Information Concerning Property-Casualty Insurance Operations [Line Items] | |||
Deferred Policy Acquisition Costs | 449,216 | 463,958 | 434,111 |
Liability for Unpaid Losses and Loss Expenses | 9,064,711 | 9,745,806 | 10,646,318 |
Unearned Premiums | 1,629,537 | 1,731,212 | 1,699,430 |
Premiums Earned | 4,059,665 | 4,387,444 | 4,241,064 |
Losses and Loss Expenses Incurred | 2,192,999 | 2,462,568 | 2,397,256 |
Amortization of Deferred Policy Acquisition Costs | 1,063,685 | 1,065,133 | 952,997 |
Paid Losses and Loss Expenses | 2,422,603 | 2,798,549 | 2,401,559 |
Premiums Written | $ 4,022,067 | $ 4,500,214 | $ 4,432,829 |