Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Entity Listings [Line Items] | |
Document type | 20-F |
Document period end date | Dec. 31, 2017 |
Amendment flag | false |
Document Fiscal Year Focus | 2,017 |
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 | Non-accelerated Filer |
Entity well known seasoned issuer | No |
Common shares | |
Entity Listings [Line Items] | |
Entity common stock shares outstanding | 100,000,000 |
Class B Shares [Domain] | |
Entity Listings [Line Items] | |
Entity common stock shares outstanding | 255,492 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Fixed maturities, at fair value (amortized cost: 2017, $12,480,569; 2016, $13,386,557) | $ 12,654,859 | $ 13,432,501 |
Short-term investments, at fair value (amortized cost: 2017, $4,394; 2016, $21,697) | 4,400 | 21,697 |
Equities, at fair value (cost: 2017, $567,848; 2016, $28,376) | 638,596 | 38,626 |
Investments in real estate | 83,098 | 0 |
Other invested assets | 1,385,258 | 1,075,637 |
Total investments | 14,766,211 | 14,568,461 |
Funds held–directly managed (cost: 2017, $429,326; 2016, $510,057) | 424,765 | 511,324 |
Cash and cash equivalents | 1,772,012 | 1,773,328 |
Accrued investment income | 120,805 | 112,580 |
Reinsurance balances receivable | 2,724,844 | 2,492,069 |
Reinsurance recoverable on paid and unpaid losses | 828,807 | 331,704 |
Funds held by reinsured companies | 801,451 | 685,069 |
Deferred acquisition costs | 672,307 | 597,239 |
Deposit assets | 78,542 | 74,273 |
Net tax assets | 133,169 | 194,170 |
Goodwill | 456,380 | 456,380 |
Intangible assets | 160,234 | 107,092 |
Other assets | 41,237 | 35,105 |
Total assets | 22,980,764 | 21,938,794 |
Liabilities | ||
Non-life reserves | 9,710,457 | 8,985,434 |
Life and health reserves | 2,490,474 | 1,984,096 |
Unearned premiums | 1,818,999 | 1,623,796 |
Other reinsurance balances payable | 292,077 | 281,973 |
Deposit liabilities | 10,864 | 15,026 |
Net tax liabilities | 154,947 | 166,113 |
Accounts payable, accrued expenses and other | 302,021 | 849,572 |
Debt related to senior notes | 1,384,824 | 1,273,883 |
Debt related to capital efficient notes | 70,989 | 70,989 |
Total liabilities | 16,235,652 | 15,250,882 |
Shareholders’ Equity | ||
Common shares (par value $0.00000001; issued: 100,000,000 shares) | 0 | 0 |
Preferred shares (par value $1.00; issued and outstanding: 28,169,062 shares; aggregate liquidation value: $704,227) | 28,169 | 28,169 |
Additional paid-in capital | 2,396,530 | 2,396,530 |
Accumulated other comprehensive loss | (90,281) | (74,569) |
Retained earnings | 4,410,694 | 4,337,782 |
Total shareholders’ equity | 6,745,112 | 6,687,912 |
Total liabilities and shareholders’ equity | $ 22,980,764 | $ 21,938,794 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Fixed maturities, amortized cost | $ 12,480,569 | $ 13,386,557 |
Short-term investments, amortized cost | 4,394 | 21,697 |
Equities, cost | 567,848 | 28,376 |
Funds held - directly managed, cost | $ 429,326 | $ 510,057 |
Shareholders’ Equity | ||
Common shares, par value | $ 0.00 | $ 0.00 |
Common shares, shares issued | 100,000,000 | 100,000,000 |
Preferred shares, par value | $ 1 | $ 1 |
Number of preferred shares issued | 28,169,062 | 28,169,062 |
Preferred shares, shares outstanding | 28,169,062 | 28,169,062 |
Aggregate liquidation value | $ 704,227 | $ 704,227 |
Common shares held in treasury, shares | 0 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues | |||
Gross premiums written | $ 5,587,894 | $ 5,356,942 | $ 5,547,525 |
Net premiums written | 5,119,926 | 4,953,470 | 5,229,548 |
(Increase) decrease in unearned premiums | (94,945) | 16,126 | 39,630 |
Net premiums earned | 5,024,981 | 4,969,596 | 5,269,178 |
Net investment income | 402,071 | 410,864 | 449,784 |
Net realized and unrealized investment gains (losses) | 232,491 | 26,266 | (297,479) |
Other income | 15,242 | 15,232 | 9,144 |
Total revenues | 5,674,785 | 5,421,958 | 5,430,627 |
Expenses | |||
Losses and loss expenses | 3,840,982 | 3,248,091 | 3,157,420 |
Acquisition costs | 1,119,773 | 1,186,602 | 1,217,003 |
Other expenses | 348,398 | 471,905 | 790,723 |
Interest expense | 42,500 | 48,603 | 48,988 |
Loss on redemption of debt | 1,566 | 22,203 | 0 |
Amortization of intangible assets | 24,646 | 25,919 | 26,593 |
Net foreign exchange losses (gains) | 108,244 | (77,515) | 9,461 |
Total expenses | 5,486,109 | 4,925,808 | 5,250,188 |
Income before taxes and interest in earnings (losses) of equity method investments | 188,676 | 496,150 | 180,439 |
Income tax expense | 10,358 | 25,923 | 79,664 |
Interest in earnings (losses) of equity method investments | 85,703 | (22,919) | 6,375 |
Net income | 264,021 | 447,308 | 107,150 |
Net income attributable to noncontrolling interests | 0 | 0 | (2,769) |
Net income attributable to PartnerRe Ltd. | 264,021 | 447,308 | 104,381 |
Preferred dividends | 46,416 | 55,043 | 56,735 |
Loss on redemption of preferred shares | 0 | 4,908 | 0 |
Net income attributable to PartnerRe Ltd. common shareholders | 217,605 | 387,357 | 47,646 |
Comprehensive income | |||
Net income attributable to PartnerRe Ltd. | 264,021 | 447,308 | 104,381 |
Change in currency translation adjustment | (15,135) | 12,202 | (46,055) |
Change in unfunded pension obligation, net of tax | (274) | (1,909) | (2,285) |
Change in unrealized gains or losses on investments, net of tax | (303) | (1,579) | (860) |
Total other comprehensive (loss) income, net of tax | (15,712) | 8,714 | (49,200) |
Comprehensive income attributable to PartnerRe Ltd. | $ 248,309 | $ 456,022 | $ 55,181 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common shares | Preferred shares | Additional paid-in capital | 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, 2014 | $ 87,237 | $ 34,150 | $ 3,949,665 | $ (34,083) | $ (7,915) | $ (29,576) | $ 3,408 | $ 6,270,811 | $ (3,258,870) | ||
Cancellation of treasury shares | 0 | 0 | 0 | 0 | |||||||
Cancellation of outstanding common shares | 0 | 0 | |||||||||
Redemption of preferred shares | 0 | 0 | |||||||||
Stock compensation expense, net of taxes paid | 32,482 | ||||||||||
Reissuance of common shares | 0 | (38,051) | 51,584 | ||||||||
Settlement of stock options and SSARs | $ 0 | 0 | |||||||||
Change in currency translation adjustment | (46,055) | (36,750) | |||||||||
Change in designated net investment hedge | (9,305) | ||||||||||
Change in unfunded pension obligation, net of tax | (2,285) | (2,285) | |||||||||
Change in unrealized gains or losses on investments, net of tax | (860) | (860) | |||||||||
Net income | 107,150 | 107,150 | |||||||||
Net income attributable to noncontrolling interests | (2,769) | (2,769) | |||||||||
Dividends on common shares | (133,604) | ||||||||||
Dividends on preferred shares | (56,735) | (56,735) | |||||||||
Loss on redemption of preferred shares | 0 | 0 | |||||||||
Repurchase of common shares | 59,266 | ||||||||||
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 | ||||||||||
Total shareholders’ equity | 6,902,951 | ||||||||||
Cancellation of treasury shares | (39,082) | (1,466,363) | (1,742,718) | 3,248,162 | |||||||
Cancellation of outstanding common shares | (48,155) | 48,155 | |||||||||
Redemption of preferred shares | (5,981) | (138,636) | |||||||||
Stock compensation expense, net of taxes paid | 48,731 | ||||||||||
Reissuance of common shares | (2,193) | (17,229) | 18,390 | ||||||||
Settlement of stock options and SSARs | 75,531 | (75,311) | |||||||||
Change in currency translation adjustment | 12,202 | 6,175 | |||||||||
Change in designated net investment hedge | 6,027 | ||||||||||
Change in unfunded pension obligation, net of tax | (1,909) | (1,909) | |||||||||
Change in unrealized gains or losses on investments, net of tax | (1,579) | (1,579) | |||||||||
Net income | 447,308 | 447,308 | |||||||||
Net income attributable to noncontrolling interests | 0 | 0 | |||||||||
Dividends on common shares | (436,430) | ||||||||||
Dividends on preferred shares | (55,043) | (55,043) | |||||||||
Loss on redemption of preferred shares | (4,908) | (4,908) | |||||||||
Repurchase of common shares | 0 | ||||||||||
Balance at end of year at Dec. 31, 2016 | 6,687,912 | 0 | 28,169 | 2,396,530 | (74,569) | (41,768) | (33,770) | 969 | 4,337,782 | 0 | |
Noncontrolling interests | 0 | ||||||||||
Total shareholders’ equity | 6,687,912 | ||||||||||
Cancellation of treasury shares | 0 | 0 | 0 | 0 | |||||||
Cancellation of outstanding common shares | 0 | 0 | |||||||||
Redemption of preferred shares | 0 | 0 | |||||||||
Stock compensation expense, net of taxes paid | 0 | ||||||||||
Reissuance of common shares | 0 | 0 | 0 | ||||||||
Settlement of stock options and SSARs | 0 | 0 | |||||||||
Change in currency translation adjustment | (15,135) | (15,135) | |||||||||
Change in designated net investment hedge | 0 | ||||||||||
Change in unfunded pension obligation, net of tax | (274) | (274) | |||||||||
Change in unrealized gains or losses on investments, net of tax | (303) | (303) | |||||||||
Net income | 264,021 | 264,021 | |||||||||
Net income attributable to noncontrolling interests | 0 | 0 | |||||||||
Dividends on common shares | (144,693) | ||||||||||
Dividends on preferred shares | (46,416) | (46,416) | |||||||||
Loss on redemption of preferred shares | 0 | 0 | |||||||||
Repurchase of common shares | 0 | ||||||||||
Balance at end of year at Dec. 31, 2017 | 6,745,112 | $ 0 | $ 28,169 | $ 2,396,530 | $ (90,281) | $ (56,903) | $ (34,044) | $ 666 | $ 4,410,694 | $ 0 | |
Noncontrolling interests | $ 0 | ||||||||||
Total shareholders’ equity | $ 6,745,112 |
Consolidated Statements of Sha6
Consolidated Statements of Shareholders' Equity (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Unrealized gain on investments [Member] | |||
Shareholders Equity Parentheticals | |||
Balance at end of period, unrealized gain on investments, tax impact | $ 0 | $ 0 | $ 0 |
Unfunded pension obligation [Member] | |||
Shareholders Equity Parentheticals | |||
Balance at end of period, unfunded pension obligation, tax impact | $ 9,744 | $ 9,512 | $ 8,804 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities | ||||
Net income | $ 264,021 | $ 447,308 | $ 107,150 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Amortization of net premium on investments | 69,080 | 96,402 | 93,754 | |
Amortization of intangible assets | 24,646 | 25,919 | 26,593 | |
Net realized and unrealized investment (gains) losses | (232,491) | (26,266) | 297,479 | |
Changes in: | ||||
Reinsurance balances, net | (84,767) | (95,737) | (122,866) | |
Reinsurance recoverable on paid and unpaid losses, net of ceded premiums payable | (481,173) | (46,235) | 55,172 | |
Funds held by reinsured companies and funds held–directly managed | 47,383 | (59,069) | 131,713 | |
Deferred acquisition costs | (34,822) | 2,000 | (5,784) | |
Net tax assets and liabilities | 42,337 | (135,153) | (105,635) | |
Non-life and life and health reserves | 571,907 | 214,071 | (118,976) | |
Unearned premiums | 94,945 | (16,126) | (39,630) | |
Other net changes in operating assets and liabilities | (38,190) | 38,195 | (158) | |
Net cash provided by operating activities | 242,876 | 445,309 | 318,812 | |
Redemptions of fixed maturities | 572,638 | 595,381 | 743,743 | |
Sales and redemptions of short-term investments | 169,555 | 148,665 | 178,166 | |
Purchases of short-term investments | (143,859) | (124,079) | (200,533) | |
Consideration paid to acquire Aurigen, net of cash acquired | 233,233 | 0 | $ 0 | |
Other, net | (65,753) | (749,194) | (151,198) | |
Net cash provided by (used in) investing activities | 98,821 | (34,055) | 295,274 | |
Cash flows from financing activities | ||||
Dividends paid to common and preferred shareholders | (191,109) | (491,473) | (190,339) | |
Settlement of share-based awards upon change in control | 0 | (75,531) | 0 | |
Proceeds from issuance of Class B common shares | 11,000 | 0 | 0 | |
Repurchase of common shares | 0 | 0 | (71,376) | |
Reissuance of treasury shares, net of taxes | 0 | 10,965 | 7,996 | |
Redemption of preferred shares | 0 | (149,523) | 0 | |
Issuance of senior notes | 0 | 824,002 | 0 | |
Redemption of debt | (207,130) | (271,961) | 0 | |
Distributions to noncontrolling interests | 0 | 0 | (55,820) | |
Net cash used in financing activities | (387,239) | (153,521) | (309,539) | |
Effect of foreign exchange rate changes on cash | 44,226 | (61,502) | (40,918) | |
(Decrease) increase in cash and cash equivalents | (1,316) | 196,231 | 263,629 | |
Cash and cash equivalents—beginning of year | 1,773,328 | 1,577,097 | 1,313,468 | |
Cash and cash equivalents—end of year | 1,772,012 | 1,773,328 | 1,577,097 | $ 1,313,468 |
Supplemental cash flow information: | ||||
Taxes paid | 66,228 | 188,650 | 220,336 | |
Interest paid | 40,989 | 46,417 | 49,259 | |
Fixed maturities | ||||
Sales of fixed maturities and sales of equities | 12,524,296 | 12,404,085 | 7,796,537 | |
Purchases of fixed maturities and purchases of equities | (12,465,127) | (12,704,275) | (8,608,288) | |
Equities | ||||
Sales of fixed maturities and sales of equities | 16,232 | 402,481 | 1,184,380 | |
Purchases of fixed maturities and purchases of equities | $ (275,928) | $ (7,119) | $ (647,533) |
Organization
Organization | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure - Organization [Abstract] | |
Organization | 1. Organization PartnerRe Ltd. provides reinsurance 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 Partner Reinsurance Asia Pte. Ltd. (PartnerRe Asia). Non-life risks reinsured include agriculture, aviation/space, casualty, catastrophe, energy, engineering, financial risks, marine, motor, multiline, and property. Life and health risks include mortality, longevity, and accident and health. R einsurance of alternative risk products include weather and credit protection to financial, industrial and service companies on a worldwide basis. PartnerRe Ltd. and it subsidiaries are collectively referred to hereinafter as PartnerRe or the Company. 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 Societe Anonyme Francaise de Reassurances (SAFR, subsequently renamed PartnerRe SA and reinsurance business transferred into PartnerRe Europe) in 1997, the acquisition of Winterthur Re in 1998, the acquisition of PARIS RE Holdings Limited (Paris Re) in 2009 and the acquisition of Presidio Reinsurance Group, Inc. (Presidio) in 2012. On March 18, 2016, following receipt of regulatory approvals, the Company's publicly held common shares were acquired by Exor N.V., a subsidiary of EXOR S.p.A., one of Europe’s leading investment companies controlled by the Agnelli family. In October 2016, Exor N.V. changed its name to EXOR Nederland N.V. In December 2016, EXOR S.p.A. merged with and into EXOR HOLDING N.V., a newly formed entity organized in the Netherlands and, in conjunction with the merger, EXOR HOLDING N.V. changed its name to EXOR N.V. EXOR N.V. is listed on the Milan Stock Exchange . As a result of the acquisition, PartnerRe's publicly issued common shares were cancelled and are no longer traded on the NYSE. The Company’s preferred shares continue to be traded on the NYSE. The Company's common shares (Class A) included in Shareholders' Equity on the Consolidated Balance Sheets as of December 31, 2017 and 2016 are owned by EXOR Nederland N.V. (see Note 11). On April 3, 2017, after receiving regulatory approvals, the Company completed the acquisition of 100% of the outstanding ordinary shares of Aurigen Capital Limited (Aurigen), a North American life reinsurance company. This acquisition enables the Company to expand its life reinsurance footprint in Canada and the U.S. with limited overlap in market coverage (see Note 7). |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure - Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | 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. 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: • Non-life reserves; • Life and health reserves; • Gross and net premiums written and net premiums earned; • Recoverability of deferred acquisition costs; • Recoverability of deferred tax assets; • Valuation of certain investments that are measured using significant unobservable inputs; and • Valuation of goodwill and intangible assets. 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 The reserves for non-life business include 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 life and health reserves have been established based upon information reported by ceding companies, supplemented by the Company’s actuarial estimates, which for life include 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 non-life and life and health reserves. (c) Deferred Acquisition Costs Acquisition costs, comprising 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 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. The Company establishes a premium deficiency reserve to the extent the deferred acquisition costs are insufficient to cover the excess of expected losses and loss expenses, settlement costs and deferred acquisition costs over the related unearned premiums. 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 for the Company’s short-duration contracts. Actual and anticipated loss experience, together with the present value of future gross premiums, the present value of future benefits, and 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. 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). However, 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 in losses and loss expenses 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 its fixed maturities, short-term investments, equities and certain other invested assets (except for 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 or 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. Short-term investments comprise securities with a maturity greater than three months but less than one year from the date of purchase. Investments in real estate are recorded at cost less accumulated depreciation. Real estate assets held for investment are reviewed for impairment at least annually, or more frequently when events or changes in circumstances indicate the carrying value may not be recoverable and exceeds its estimated fair value. Other invested assets consist primarily of investments in non-publicly traded companies, private placement equity and fixed maturity investments, corporate loans, derivative financial instruments and other specialty asset classes. Non-publicly traded entities in which the Company has significant influence, including 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 (typically more than 3 to 5%), are accounted for using either the equity method or the fair value option. Corporate loans are recorded under the fair value option. The remaining other invested assets are recorded at fair value or cost depending on the nature of the 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, rental income on investments in real estate as well as 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 or 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 or 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, from the date of 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, while any excess of the fair value of net assets acquired over the purchase price is recorded as a gain in the Consolidated Statements of Operations. 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. In 2016, the Company changed its annual impairment testing date from September 30 to December 31, primarily due to the key inputs and assumptions used to assess the fair value of reporting units being based on the Company’s annual business plan which is approved by the Board in November each year. (k) Intangible Assets Intangible assets represent the fair value adjustments related to non-life reserves, fair value of life business acquired, fair values of non-life renewal rights and customer relationships and U.S. licenses arising from acquisitions. Definite-lived intangible assets are amortized over their useful lives and the amortization expense is recorded 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. In 2016, the Company changed its annual impairment testing date from October 1 to December 31 to align with the goodwill impairment testing date. 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 or losses on certain hedged items in net foreign exchange gains or losses in the Consolidated Statements of Operations (see Note 2(n)). (n) 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 or losses or net realized and unrealized investment gains or 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. 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 or 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 or losses in the Consolidated Statements of Operations. 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 or 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 or losses in the Consolidated Statements of Operations. (o) 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. (p) Variable Interest Entities The Company is involved in the normal course of business with variable interest entities (VIEs). An assessment is performed as of the date the Company becomes initially involved in the VIE followed by a reassessment upon certain events related to its involvement in the VIE. The Company consolidates a VIE when it is the primary beneficiary having a controlling financial interest as a result of having the power to direct the activities that most significantly impact the economic performance of the VIE and the obligation to absorb losses, or right to receive benefits, that could potentially be significant to the VIE. (q) Segment Reporting Effective July 1, 2016, the Company monitors the performance of its operations in three segments: Property & Casualty (P&C), Specialty, and Life and Health (previously Non-life, Life and Health, and Corporate and Other). Segments represent markets that are reasonably homogeneous in terms of client types, buying patterns, underlying risk patterns or approach to risk management. Since the Company does not manage its assets by segment, net investment income is not allocated to the P&C and Specialty segments. 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 P&C, Specialty and Life and Health segments: net realized and unrealized investment gains or losses, interest expense, loss on redemption of debt, amortization of intangible assets, net foreign exchange gains or losses, income tax expense or benefit and interest in earnings and losses of equity method investments. These items are included in the Corporate and Other component, which is comprised of the Company’s investment and corporate activities, including other expenses. (r) Recent Accounting Pronouncements In August 2017, the Financial Accounting Standards Board (FASB) issued updated guidance on accounting for hedging activities. This update expands and refines hedge accounting for both nonfinancial and financial risk components and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The amendments also make certain targeted improvements to simplify the application of hedge accounting guidance and ease the administrative burden of hedge documentation requirements and for assessing hedge effectiveness. The guidance is effective for annual periods beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this guidance on its Consolidated Financial Statements and disclosures. In April 2017, the FASB issued updated guidance on the accounting for goodwill impairment. This update removes the second step of the goodwill impairment test and requires entities to apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment of goodwill impairment. The guidance is effective for annual impairment tests performed after December 15, 2019, with early adoption permitted. The Company does not expect the adoption of this guidance to have a significant impact on its Consolidated Financial Statements and disclosures. In March 2017, the FASB issued updated guidance on presentation of net periodic pension cost and net periodic postretirement benefit cost. This update requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the employees during the period. It also requires the other components of net periodic pension cost and net periodic postretirement benefit cost to be presented in income separately from the service cost component. Additionally, only the service cost component is eligible for capitalization, when applicable. The guidance is effective for annual periods beginning after December 15, 2017, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this guidance on its Consolidated Financial Statements and disclosures. In February 2016, the FASB issued updated guidance on the accounting for leases. This update requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous guidance and expands required disclosures. The guidance is effective for annual periods beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this guidance on its Consolidated Financial Statements and disclosures. In August 2016, the FASB issued updated guidance on the classification of certain cash receipts and payments. This update addresses the presentation and classification of certain cash receipts and cash payments in the statement of cash flows. The guidance is effective for fiscal periods beginning after December 15, 2017, with early adoption permitted. The adoption of this guidance for the year ended December 31, 2018 is not expected to have a significant impact on the Company’s Consolidated Financial Statements. In October 2016, the FASB issued updated guidance on income taxes with respect to intra-entity transfers of assets. This update requires recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. The guidance is effective for fiscal periods beginning after December 15, 2017, with early adoption permitted. The adoption of this guidance for the year ended December 31, 2018 is not expected to have a significant impact on the Company’s Consolidated Financial Statements. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 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 listed on a major exchange 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; investment grade and high yield corporate bonds; asset-backed securities; mortgage-backed securities; short-term investments; certain common and preferred equities; notes and loans receivable; 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 or private equities; certain other mutual fund or exchange traded fund equities; privately placed corporate loans, notes and loan receivables and notes securitizations included in other invested assets; and certain other derivatives, including inactively traded weather derivatives, longevity insurance-linked securities and total return swaps included in other invested assets. 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 5 and 6). At December 31, 2017 and 2016 , 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, 2017 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 $ — $ 2,205,964 $ — $ 2,205,964 U.S. states, territories and municipalities — 561,505 128,806 690,311 Non-U.S. sovereign government, supranational and government related — 1,750,770 — 1,750,770 Corporate bonds — 6,128,636 — 6,128,636 Asset-backed securities — 30,965 20,738 51,703 Residential mortgage-backed securities — 1,822,725 — 1,822,725 Other mortgage-backed securities — 4,750 — 4,750 Fixed maturities $ — $ 12,505,315 $ 149,544 $ 12,654,859 Short-term investments $ — $ 4,400 $ — $ 4,400 Equities Finance $ 11,115 $ 1 $ 21,926 $ 33,042 Industrials 16,534 — — 16,534 Technology 1,990 — 10,961 12,951 Insurance — 7,558 — 7,558 Communications 3,215 — — 3,215 Consumer cyclical 2,170 — — 2,170 Consumer noncyclical 897 — — 897 Other 3,493 — — 3,493 Mutual funds and exchange traded funds — — 558,736 558,736 Equities $ 39,414 $ 7,559 $ 591,623 $ 638,596 Other invested assets Derivative assets Foreign exchange forward contracts $ — $ 8,559 $ — $ 8,559 Futures contracts 3,367 — — 3,367 Insurance-linked securities — — 11,985 11,985 Total return swaps — — 2,505 2,505 TBAs — 391 — 391 Other Corporate loans — — 205,331 205,331 Notes and loan receivables and notes securitization — 3,425 108,563 111,988 Private equities — — 331,932 331,932 Derivative liabilities Foreign exchange forward contracts — (20,328 ) — (20,328 ) Total return swaps — — (3,269 ) (3,269 ) Interest rate swaps — (12,298 ) — (12,298 ) TBAs — (591 ) — (591 ) Other invested assets $ 3,367 $ (20,842 ) $ 657,047 $ 639,572 Funds held–directly managed U.S. government and government sponsored enterprises $ — $ 161,023 $ — $ 161,023 Non-U.S. sovereign government, supranational and government related — 95,812 — 95,812 Corporate bonds — 41,090 — 41,090 Short-term investments — 453 — 453 Other invested assets — — 2,067 2,067 Funds held–directly managed $ — $ 298,378 $ 2,067 $ 300,445 Total $ 42,781 $ 12,794,810 $ 1,400,281 $ 14,237,872 December 31, 2016 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 $ — $ 3,541,433 $ — $ 3,541,433 U.S. states, territories and municipalities — 560,728 123,827 684,555 Non-U.S. sovereign government, supranational and government related — 1,136,034 — 1,136,034 Corporate — 5,705,522 — 5,705,522 Asset-backed securities — 24,709 99,351 124,060 Residential mortgage-backed securities — 2,240,897 — 2,240,897 Fixed maturities $ — $ 13,209,323 $ 223,178 $ 13,432,501 Short-term investments $ — $ 21,697 $ — $ 21,697 Equities Finance $ 973 $ 4,960 $ 20,934 $ 26,867 Technology — — 9,800 9,800 Insurance — 1,800 — 1,800 Consumer noncyclical 6 — — 6 Mutual funds and exchange traded funds — — 153 153 Equities $ 979 $ 6,760 $ 30,887 $ 38,626 Other invested assets Derivative assets Foreign exchange forward contracts $ — $ 5,263 $ — $ 5,263 Insurance-linked securities — — 10,130 10,130 Total return swaps — — 1,989 1,989 TBAs — 1,369 — 1,369 Other Notes and loan receivables and notes securitization — 1,500 141,693 143,193 Private equities — — 305,729 305,729 Derivative liabilities Foreign exchange forward contracts — (7,142 ) — (7,142 ) Insurance-linked securities — — (97 ) (97 ) Total return swaps — — (3,217 ) (3,217 ) Interest rate swaps — (13,403 ) — (13,403 ) TBAs — (185 ) — (185 ) Other invested assets $ — $ (12,598 ) $ 456,227 $ 443,629 Funds held–directly managed U.S. government and government sponsored enterprises $ — $ 171,975 $ — $ 171,975 Non-U.S. sovereign government, supranational and government related — 104,512 — 104,512 Corporate bonds — 71,365 — 71,365 Short-term investments — 1,603 — 1,603 Other invested assets — — 4,540 4,540 Funds held–directly managed $ — $ 349,455 $ 4,540 $ 353,995 Total $ 979 $ 13,574,637 $ 714,832 $ 14,290,448 The increase in equities at December 31, 2017 compared to December 31, 2016 was primarily due to a $500 million investment in two Exor managed public equity funds (see Note 19). The increase in other assets at December 31, 2017 compared to December 31, 2016 was primarily due to a $207 million investment in privately placed corporate loans. At December 31, 2017 and 2016 , the aggregate carrying amounts of items included in Other invested assets that the Company did not measure at fair value were $746 million and $632 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 $300 million and $354 million at December 31, 2017 and 2016 , respectively, the funds held–directly managed account also included cash and cash equivalents, carried at fair value, of $74 million and $76 million , respectively, and accrued investment income of $3 million and $4 million , respectively. At December 31, 2017 and 2016 , the aggregate carrying amounts of items included in the funds held–directly managed account that the Company did not measure at fair value were $47 million and $77 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, 2017 and 2016 , 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, 2017 and 2016 , 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, 2017 and 2016 , 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, 2017 and 2016 , were as follows (in thousands of U.S. dollars): For the year ended 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 $ 123,827 $ 5,804 $ — $ (825 ) $ — $ 128,806 $ 5,804 Asset-backed securities 99,351 3,300 1,360 (83,273 ) — 20,738 1,316 Fixed maturities $ 223,178 $ 9,104 $ 1,360 $ (84,098 ) $ — $ 149,544 $ 7,120 Equities Finance $ 20,934 $ 992 $ — $ — $ — $ 21,926 $ 992 Technology 9,800 1,611 — (450 ) — 10,961 1,611 Mutual funds and exchange traded funds 153 51,476 507,250 (143 ) — 558,736 51,486 Equities $ 30,887 $ 54,079 $ 507,250 $ (593 ) $ — $ 591,623 $ 54,089 Other invested assets Derivatives, net $ 8,805 $ 5,977 $ 1,793 $ (5,354 ) $ — $ 11,221 $ 3,231 Corporate loans — (709 ) 206,700 (660 ) — 205,331 (695 ) Notes and loan receivables and notes securitization 141,693 2,744 2,040 (37,914 ) — 108,563 6,977 Private equities 305,729 29,942 17,572 (21,311 ) — 331,932 27,533 Other invested assets $ 456,227 $ 37,954 $ 228,105 $ (65,239 ) $ — $ 657,047 $ 37,046 Funds held–directly managed $ 4,540 $ (516 ) $ 495 $ (2,452 ) $ — $ 2,067 $ (629 ) Total $ 714,832 $ 100,621 $ 737,210 $ (152,382 ) $ — $ 1,400,281 $ 97,626 (1) Purchases and issuances of derivatives include issuances of $2 million . (2) Settlements and sales of equities include sales of $1 million . For the year ended Balance at beginning of year Realized and unrealized investment (losses) gains 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 $ 138,847 $ (14,240 ) $ — $ (780 ) $ — $ 123,827 $ (14,240 ) Asset-backed securities 369,699 21 191,048 (461,417 ) — 99,351 (4,628 ) Fixed maturities $ 508,546 $ (14,219 ) $ 191,048 $ (462,197 ) $ — $ 223,178 $ (18,868 ) Equities Finance $ 22,760 $ 3,438 $ — $ (5,264 ) $ — $ 20,934 $ 3,211 Technology 8,207 1,143 450 — — 9,800 1,143 Communications 1,985 209 — (2,194 ) — — 55 Mutual funds and exchange traded funds 4,604 (242 ) — (4,209 ) — 153 14 Equities $ 37,556 $ 4,548 $ 450 $ (11,667 ) $ — $ 30,887 $ 4,423 Other invested assets Derivatives, net $ 5,351 $ (3,314 ) $ 2,256 $ 4,512 $ — $ 8,805 $ (1,772 ) Notes and loan receivables and notes securitization 125,922 2,599 71,828 (58,656 ) — 141,693 2,278 Annuities and residuals 8,436 262 — (8,698 ) — — — Private equities 71,298 6,764 236,022 (8,355 ) — 305,729 2,827 Other invested assets $ 211,007 $ 6,311 $ 310,106 $ (71,197 ) $ — $ 456,227 $ 3,333 Funds held–directly managed $ 10,146 $ 1,698 $ 1,011 $ (8,315 ) $ — $ 4,540 $ 1,678 Total $ 767,255 $ (1,662 ) $ 502,615 $ (553,376 ) $ — $ 714,832 $ (9,434 ) (1) There were no issuances included in the purchases and issuances amounts above. (2) Settlements and sales of fixed maturities, equities, other invested assets and funds held – directly managed include sales of $276 million , $12 million , $43 million and $8 million , respectively. The significant unobservable inputs used in the valuation of financial instruments measured at fair value using Level 3 inputs at December 31, 2017 and 2016 were as follows (fair value in thousands of U.S. dollars): December 31, 2017 Fair value Valuation techniques Unobservable inputs Range (Weighted average) Fixed maturities U.S. states, territories and municipalities $ 128,806 Discounted cash flow Credit spreads 0.2% – 10.2% (4.7%) Asset-backed securities 20,738 Discounted cash flow Credit spreads 4.7% (4.7%) Equities Finance 21,926 Weighted market comparables Net income multiple 16.7 (16.7) Tangible book value multiple 2.0 (2.0) Liquidity discount 25.0% (25.0%) Comparable return 4.1% (4.1%) Technology 10,961 Reported market value Tangible book value multiple 100.0% (100.0%) Other invested assets Total return swaps, net (764 ) Discounted cash flow Credit spreads 2.4% – 30.8% (18.5%) Insurance-linked securities – longevity swaps 11,962 Discounted cash flow Credit spreads 1.7% (1.7%) Notes and loan receivables 102,907 Discounted cash flow Credit spreads 3.9% – 39.3% (6.1%) Notes and loan receivables 4,265 Discounted cash flow Credit spreads 17.5% (17.5%) Gross revenue/fair value 1.1 (1.1) Notes securitization 1,391 Discounted cash flow Credit spreads 1.5% (1.5%) Private equity – direct 3,011 Discounted cash flow and market multiples Tangible book value multiple 0.8 (0.8) Recoverability of intangible assets 0% (0%) Private equity funds 12,559 Reported market value Net asset value, as reported 100.0% (100.0%) Market adjustments -0.7% (-0.7%) Private equity – other 24,241 Discounted cash flow Effective yield 3.8% (3.8%) Funds held–directly managed Other invested assets 2,067 Reported market value Net asset value, as reported 100.0% (100.0%) Market adjustments 0% (0%) December 31, 2016 Fair value Valuation techniques Unobservable inputs Range (Weighted average) Fixed maturities U.S. states, territories and municipalities $ 123,827 Discounted cash flow Credit spreads 1.5% – 10.5% (6.3%) Asset-backed securities 99,351 Discounted cash flow Credit spreads 4.1% – 18.5% (14.9%) Equities Finance 20,934 Weighted market comparables Net income multiple 20.3 (20.3) Tangible book value multiple 1.9 (1.9) Liquidity discount 25.0% (25.0%) Comparable return 36.9% (36.9%) Technology 9,800 Reported market value Tangible book value multiple 100.0% (100.0%) Other invested assets Total return swaps, net (1,228 ) Discounted cash flow Credit spreads 2.9% – 29.4% (19.3%) Insurance-linked securities – longevity swaps 9,218 Discounted cash flow Credit spreads 2.6% (2.6%) Notes and loan receivables 131,176 Discounted cash flow Credit spreads 4.2% – 24.4% (5.2%) Notes and loan receivables 8,953 Discounted cash flow Credit spreads 17.5% (17.5%) Gross revenue/fair value 1.2 (1.2) Notes securitization 1,564 Discounted cash flow Credit spreads 3.3% (3.3%) Private equity – direct 5,019 Discounted cash flow and weighted market comparables Net income multiple 8.6 (8.6) Tangible book value multiple 2.0 (2.0) Recoverability of intangible assets 0% (0%) Private equity funds 11,064 Reported market value Net asset value, as reported 100.0% (100.0%) Market adjustments -0.7% (-0.7%) Private equity – other 29,949 Discounted cash flow Effective yield 5.8% (5.8%) Funds held–directly managed Other invested assets 4,540 Reported market value Net asset value, as reported 100.0% (100.0%) Market adjustments 0% (0%) 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 and exchange traded funds investments (included within equities), certain private equity funds (included within private equities), privately placed corporate loans (included within other invested assets) and certain derivatives (included within other invested assets). 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 and ensuring that there is an appropriate independent peer analysis, on at least an annual basis, 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. The Company’s Group Enterprise Risk Management Financial Risk Policy which covers, amongst other items, invested asset valuation. Changes in the fair value of the Company’s financial instruments subject to the fair value option during the years ended December 31, 2017 , 2016 and 2015 were as follows (in thousands of U.S. dollars): 2017 2016 2015 Fixed maturities and short-term investments $ 124,033 $ (90,334 ) $ (276,776 ) Equities 60,460 (14,850 ) (187,561 ) Other invested assets 28,144 11,066 (1,835 ) Funds held–directly managed (5,612 ) (721 ) (6,323 ) Total $ 207,025 $ (94,839 ) $ (472,495 ) 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 gains (losses). 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. Corporate securities also include real estate investment trusts, catastrophe bonds, longevity and mortality bonds and government guarantee corporate debt. 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, and certain common and 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 derivatives, including weather derivative insurance-linked securities and total return swaps; corporate loans; notes and loan receivables and notes securitizations; and private equities. 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, gross revenue to fair value ratios, net income multiples, effective yields, tangible book value multiples and other valuation ratios. Significant increases (decreases) in any of these inputs in isolation could result in a significantly lower (higher) fair value measurement. Significant unobservable inputs used in the fair value measurement of other invested assets classified as Level 3 also include an assessment of the recoverability of intangible assets and market return information, weighted using management’s judgment, from comparable selected publicly traded companies in the same industry, in a similar region and of a similar size. Significant increases (decreases) in these inputs in isolation could result in a significantly higher (lower) fair value measurement. As part of the Company’s modeling to determine the fair value of an investment, the Company considers counterparty credit risk as an input to the model, however, the majority of the Company’s counterparties are investment grade rated institutions and the failure of any one counterparty would not have a significant impact on the Company’s consolidated financial statements. To validate prices, the Company will compare them to benchmarks, where appropriate, or to the business results generally within that asset class and specifically to those particular assets. Funds held–directly managed The segregated investment portfolio underlying the funds held–directly managed account is comprised of fixed maturities, short-term investments and other invested assets which are fair valued on a basis consistent with the methods described above. Substantially all fixed maturities and short-term investments within the funds held–directly managed account are classified as Level 2 within the fair value hierarchy. The other invested assets within the segregated investment portfolio underlying the funds held–directly managed account, which are classified as Level 3 investments, are primarily real estate mutual fund investments carried at fair value. For the real estate mutual fund investments, the Company receives a price based on the real estate fund manager’s valuation for the asset and further adjusts the price, if necessary, based on appropriate current information on the real estate market. A significant increase (decrease) to the adjustment to the real estate fund manager’s valuation could result in a significantly lower (higher) fair value measurement. To validate prices with |
Investments
Investments | 12 Months Ended |
Dec. 31, 2017 | |
Investments [Abstract] | |
Investments | 4. Investments (a) Net Realized and Unrealized Investment Gains (Losses) The components of the net realized and unrealized investment gains (losses) for the years ended December 31, 2017 , 2016 and 2015 were as follows (in thousands of U.S. dollars): 2017 2016 2015 Net realized investment gains on fixed maturities and short-term investments $ 28,632 $ 96,994 $ 66,296 Net realized investment (losses) gains on equities (4,052 ) 157 137,609 Net realized investment (losses) gains on other invested assets (3,217 ) 5,365 (33,317 ) Net realized investment gains on funds held–directly managed 508 1,355 536 Net realized investment gains 21,871 103,871 171,124 Change in net unrealized investment gains or losses on fixed maturities and short-term investments 124,033 (90,334 ) (276,776 ) Change in net unrealized investment gains or losses on equities 60,460 (14,850 ) (187,561 ) Change in unrealized investment gains or losses on other invested assets 32,790 25,488 844 Change in net unrealized investment gains or losses on funds held–directly managed (5,567 ) (676 ) (6,163 ) Net other realized and unrealized investment gains or losses (1,096 ) 2,767 1,053 Change in net unrealized investment gains or losses 210,620 (77,605 ) (468,603 ) Net realized and unrealized investment gains (losses) $ 232,491 $ 26,266 $ (297,479 ) (b) Net Investment Income The components of net investment income for the years ended December 31, 2017 , 2016 and 2015 were as follows (in thousands of U.S. dollars): 2017 2016 2015 Fixed maturities $ 382,676 $ 395,831 $ 425,541 Short-term investments and cash and cash equivalents 5,363 1,915 854 Equities (12 ) 4,382 30,739 Funds held and other 29,068 34,161 27,406 Funds held–directly managed 7,742 9,993 11,676 Investment expenses (22,766 ) (35,418 ) (46,432 ) Net investment income $ 402,071 $ 410,864 $ 449,784 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 7.0% for the year ended December 31, 2017 , from 0.0% to 5.4% for the year ended December 31, 2016 and from 0.1% to 8.0% for the year ended December 31, 2015 . See Note 5 for additional information on the funds held–directly managed account. (c) Pledged and Restricted Assets At December 31, 2017 and 2016 , approximately $274 million and $157 million , respectively, of cash and cash equivalents and approximately $3,422 million and $2,241 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. The increase during the year was a result of the inclusion of Aurigen and collateral required to secure payment for claims related to hurricanes Harvey, Irma and Maria in 2017. (d) Net Payable for Securities Purchased Included within Accounts payable, accrued expenses and other in the Consolidated Balance Sheets at December 31, 2017 and 2016 were amounts of gross receivable balances for securities sold and gross payable balances for securities purchased as follows (in thousands of U.S. dollars): December 31, 2017 December 31, 2016 Receivable for securities sold $ 144,224 $ 52,189 Payable for securities purchased (181,991 ) (648,813 ) Net payable for securities purchased $ (37,767 ) $ (596,624 ) (e) Variable Interest Entities The Company holds variable interests in VIEs including certain limited liability companies or partnerships, trusts, fixed maturity investments and asset-backed securities. The holdings in these VIEs are reported within fixed maturities and other invested assets in the Company’s Consolidated Balance Sheets. The Company’s involvement in these entities is, for the most part, passive in nature. The Company’s maximum exposure to loss with respect to these investments is limited to the amounts invested in and advanced to the VIEs, and any unfunded commitments. The Company’s non-consolidated VIEs include variable interests in catastrophe bonds within fixed maturity investments and certain other invested assets. (f) Summarized Financial Information The Company has an investment in an equity method investee, Almacantar Group S.A. (Almacantar) that is considered significant in terms of the interest in earnings of this investee exceeding 10% of the consolidated net income before income tax expense of the Company as at December 31, 2017. The summarized balance sheet and income statement of Almacantar S.A. is as follows: December 31, 2017 December 31, 2016 Current assets $ 906,085 $ 698,835 Noncurrent assets $ 1,877,519 $ 1,510,632 Current liabilities $ 553,219 $ 372,677 Noncurrent liabilities $ 690,935 $ 624,970 For the year ended December 31, 2017 December 31, 2016 Revenues $ 130,333 $ 24,646 Operating profit $ 190,613 $ (47,082 ) Net income $ 213,241 $ (37,059 ) The summarized balance sheet has been included as at the years ended December 31, 2017 and 2016 and the summarized income statement has been included for the years ended December 31, 2017 and 2016 as the investment in Almacantar was first entered into during 2016. As a result, it is not practicable or meaningful to include summarized financial information for 2015 as there was no ownership interest in the investee at that time. Operating profit referred to in the table above includes revenues, cost of sales, and unrealized gains on properties. |
Funds Held - Directly Managed
Funds Held - Directly Managed | 12 Months Ended |
Dec. 31, 2017 | |
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) in 2006, a subsidiary of AXA SA (AXA), 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 assets underlying the funds held–directly managed account are maintained by Colisée Re in a segregated investment portfolio and managed by the Company. Realized and unrealized investment gains and losses and net investment income related to this account inure to the benefit of the Company. The investment portfolio underlying the funds held–directly managed account measured at fair value (see Note 3(a)) decreased from $354 million at December 31, 2016 to $300 million at December 31, 2017 primarily due to a commutation of a portion of the Reserve Agreement with Colisée Re, the run-off of the underlying loss reserves associated with this account and the impact of the weakening of the U.S. dollar against most major currencies. See also note 8(a) for discussion of the related reserve agreement. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | 6. Derivatives The Company’s objectives for holding or issuing 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. Futures Contracts —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 for which the underlying risks reference parametric weather risks in addition to longevity total return swaps for which the underlying risks reference longevity risks. Total Return and Interest Rate Swaps —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. 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, 2017 and 2016 were as follows (in thousands of U.S. dollars): Asset derivatives at fair value Liability derivatives at fair value Net derivatives December 31, 2017 Fair value Net notional exposure Derivatives not designated as hedges Foreign exchange forward contracts $ 8,559 $ (20,328 ) $ (11,769 ) $ 2,862,927 Futures contracts 3,367 — 3,367 917,696 Insurance-linked securities (1) 11,985 — 11,985 78,879 Total return swaps 2,505 (3,269 ) (764 ) 42,147 Interest rate swaps (2) — (12,298 ) (12,298 ) 192,215 TBAs 391 (591 ) (200 ) 501,405 Total derivatives not designated as hedges $ 26,807 $ (36,486 ) $ (9,679 ) Asset Liability Net derivatives December 31, 2016 Fair value Net notional Derivatives not designated as hedges Foreign exchange forward contracts $ 5,263 $ (7,142 ) $ (1,879 ) $ 1,929,033 Insurance-linked securities (1) 10,130 (97 ) 10,033 145,011 Total return swaps 1,989 (3,217 ) (1,228 ) 42,304 Interest rate swaps (2) — (13,403 ) (13,403 ) 194,585 TBAs 1,369 (185 ) 1,184 386,500 Total derivatives not designated as hedges $ 18,751 $ (24,044 ) $ (5.293 ) (1) Insurance-linked securities include longevity swaps for which the notional amounts are not reflective of the overall potential exposure of the swaps. The net notional exposure above included the Company's probable maximum loss at December 31, 2016 and, for December 31, 2017, the Company's best estimate of the present value of future expected claims. (2) The Company enters into interest rate swaps to mitigate notional exposures on certain total return swaps and certain fixed maturities. The net notional exposure for interest rate swaps above relates to fixed maturities. The fair value of derivatives is recorded in Other invested assets in the Company’s Consolidated Balance Sheets. The Company previously 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, which expired September 30, 2016 and was not renewed. There were no derivatives designated as hedges at December 31, 2017 and 2016. The gains and losses in the Consolidated Statements of Operations for derivatives not designated as hedges for the years ended December 31, 2017 , 2016 and 2015 were as follows (in thousands of U.S. dollars): 2017 2016 2015 Foreign exchange forward contracts $ (41,776 ) $ (53,437 ) $ (29,217 ) Foreign currency option contracts — 2,583 (3,472 ) Total included in net foreign exchange losses $ (41,776 ) $ (50,854 ) $ (32,689 ) Futures contracts $ (11,683 ) $ (5,195 ) $ (32,004 ) Insurance-linked securities (563 ) 3,813 (1,556 ) Total return swaps 464 (1,096 ) 1,390 Interest rate swaps 1,105 10,981 (8,101 ) TBAs 4,742 6,366 2,877 Other — — 2,493 Total included in net realized and unrealized investment gains (losses) $ (5,935 ) $ 14,869 $ (34,901 ) Total derivatives not designated as hedges $ (47,711 ) $ (35,985 ) $ (67,590 ) Offsetting of Derivatives The gross and net fair values of derivatives that are subject to offsetting in the Consolidated Balance Sheets at December 31, 2017 and 2016 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, 2017 Gross amounts recognized (1) Financial instruments Cash collateral received/pledged Net amount Total derivative assets $ 26,807 $ — $ 26,807 $ (1,142 ) $ (43,943 ) $ (18,278 ) Total derivative liabilities $ (36,486 ) $ — $ (36,486 ) $ 1,142 $ 25,389 $ (9,955 ) December 31, 2016 Total derivative assets $ 18,751 $ — $ 18,751 $ (794 ) $ (34,120 ) $ (16,163 ) Total derivative liabilities $ (24,044 ) $ — $ (24,044 ) $ 794 $ 22,923 $ (327 ) (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, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Intangible Assets | 7. Goodwill and Intangible Assets On April 3, 2017, after receiving all necessary regulatory approvals, the Company completed the acquisition of 100% of the outstanding ordinary shares of Aurigen, for CAD 370 million (or approximately $278 million ). The acquisition of Aurigen is consistent with the Company’s diversified strategy and expands its life reinsurance footprint in Canada and the U.S. with limited overlap in market coverage . The Company recorded pre-tax intangible assets related to the life value of business acquired (life VOBA) of $76 million and insurance licenses of $2 million . A bargain purchase gain of less than $1 million was included in Other income in the Consolidated Statement of Operations for the year ended December 31, 2017 representing the excess of fair value of the net assets acquired over the purchase price of $278 million . The Company’s goodwill related to the acquisitions of PartnerRe SA, Winterthur Re, Paris Re and Presidio and intangible assets related to the acquisitions of Paris Re, Presidio and Aurigen at December 31, 2017 and 2016 were as follows (in thousands of U.S. dollars): 2017 Goodwill Definite- lived intangible assets Indefinite- lived intangible asset Total intangible assets Balance at January 1 $ 456,380 $ 99,742 $ 7,350 $ 107,092 Acquired during the year — 75,583 2,205 77,788 Intangible assets amortization n/a (24,646 ) n/a (24,646 ) Balance at December 31 $ 456,380 $ 150,679 $ 9,555 $ 160,234 2016 Goodwill Definite- lived intangible assets Indefinite- lived intangible asset Total intangible assets Balance at January 1 $ 456,380 $ 125,661 $ 7,350 $ 133,011 Intangible assets amortization n/a (25,919 ) n/a (25,919 ) Balance at December 31 $ 456,380 $ 99,742 $ 7,350 $ 107,092 n/a: Not applicable The gross carrying value and accumulated amortization of intangible assets included in the Consolidated Balance Sheets at December 31, 2017 and 2016 were as follows (in thousands of U.S. dollars): December 31, 2017 December 31, 2016 Gross carrying value Accumulated amortization Net carrying value Gross carrying value Accumulated amortization Net carrying value Definite-lived intangible assets: Unpaid losses and loss expenses $ 191,196 $ 168,581 $ 22,615 $ 191,196 $ 157,842 $ 33,354 Renewal rights 48,163 27,909 20,254 48,163 23,404 24,759 Customer relationships 63,408 29,353 34,055 63,408 21,779 41,629 Life VOBA 75,583 1,828 73,755 — — — Total definite-lived intangible assets $ 378,350 $ 227,671 $ 150,679 $ 302,767 $ 203,025 $ 99,742 Indefinite-lived intangible asset: Insurance licenses 9,555 n/a 9,555 7,350 n/a 7,350 Total intangible assets $ 387,905 $ 227,671 $ 160,234 $ 310,117 $ 203,025 $ 107,092 n/a: Not applicable Definite-lived intangible assets are amortized over a period of 11 years for unpaid losses and loss expenses, 13 years for renewal rights and customer relationships, and 100 years for life VOBA. The allocation of the goodwill to the Company’s segments at December 31, 2017 and 2016 was as follows (in thousands of U.S. dollars): Amount P&C segment $ 241,530 Specialty segment 196,047 Life and Health segment 18,803 Total $ 456,380 The estimated amortization expense for each of the five succeeding fiscal years related to the Company’s definite-lived intangible assets was as follows (in thousands of U.S. dollars): Year Amount 2018 $ 23,351 2019 19,946 2020 12,395 2021 8,406 2022 8,499 Total $ 72,597 |
Non-life and Life and Health Re
Non-life and Life and Health Reserves | 12 Months Ended |
Dec. 31, 2017 | |
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] | |
Non-life and Life and Health Reserves | 8. Non-life and Life and Health Reserves (a) Non-life reserves Non-life reserves 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 non-life reserves reported by cedants (case reserves) and those estimated by the Company (ACRs and IBNR reserves) at December 31, 2017 and 2016 was as follows (in thousands of U.S. dollars): December 31, 2017 December 31, 2016 Case reserves $ 4,176,879 $ 3,883,926 ACRs 176,369 166,913 IBNR reserves 5,357,209 4,934,595 Non-life reserves $ 9,710,457 $ 8,985,434 The reconciliation of the beginning and ending gross and net liability for non-life reserves for the years ended December 31, 2017 , 2016 and 2015 was as follows (in thousands of U.S. dollars): 2017 2016 2015 Gross liability at beginning of year $ 8,985,434 $ 9,064,711 $ 9,745,806 Reinsurance recoverable at beginning of year 266,742 189,234 214,349 Net liability at beginning of year 8,718,692 8,875,477 9,531,457 Net incurred losses related to: Current year 3,022,926 2,997,394 3,023,704 Prior years (448,158 ) (676,574 ) (830,705 ) 2,574,768 2,320,820 2,192,999 Change in Paris Re Reserve Agreement (3,481 ) 5,518 (8,771 ) Net paid losses related to: Current year 396,927 331,785 250,720 Prior years 2,278,603 1,931,131 2,171,883 2,675,530 2,262,916 2,422,603 Effects of foreign exchange rate changes 407,328 (220,207 ) (417,605 ) Net liability at end of year 9,021,777 8,718,692 8,875,477 Reinsurance recoverable at end of year 688,680 266,742 189,234 Gross liability at end of year $ 9,710,457 $ 8,985,434 $ 9,064,711 The net favorable prior year loss development for each of the Company’s Non-life segments for the years ended December 31, 2017 , 2016 and 2015 was as follows (in thousands of U.S. dollars): 2017 2016 2015 P&C $ 204,172 $ 389,672 $ 473,564 Specialty 243,986 286,902 357,141 Total net favorable prior year loss development $ 448,158 $ 676,574 $ 830,705 For the year ended December 31, 2017 , the Company reported net favorable loss development for prior accident years resulting from favorable loss emergence in both Non-life segments. The favorable loss emergence within the P&C segment was across multiple accident years, mainly driven by the casualty business. The favorable loss emergence within the Specialty segment was predominantly from the previous two accident years, mainly driven by the energy and agriculture business. For the year ended December 31, 2016, the Company reported net favorable loss development for prior accident years resulting from favorable loss emergence in both Non-life segments. The favorable loss emergence within the P&C segment was across multiple accident years, mainly driven by the casualty business. The favorable loss emergence within the Specialty segment was predominantly from the previous two accident years, mainly driven by the marine and energy business. For the year ended December 31, 2015 , the Company reported net favorable loss development due to favorable loss emergence from most lines of business, in particular from casualty business within the P&C segment and from the marine and aviation/space business within the Specialty segment. 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) whereby AXA and Colisée Re 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. The reserve guarantee is conditioned upon, among other things, the guaranteed business, including related ceded reinsurance, being managed by AXA Liabilities Managers, an affiliate of Colisée Re. At December 31, 2017 and 2016 , the Company’s gross liability for non-life reserves includes $426 million and $496 million , respectively, of guaranteed reserves, with the decrease from December 31, 2016 to December 31, 2017 being primarily related to a commutation of a portion of the Reserve Agreement with Colisée Re and the run-off of the underlying loss reserves associated with the guaranteed reserves, partially offset by the impact of the weakening of the U.S. dollar against most major currencies. Favorable or adverse development related to the guaranteed reserves is recorded as a change in non-life reserves with an offsetting change in the related payable or receivable to/from Colisée Re within the Funds held–directly managed account in the Consolidated Balance Sheets. Asbestos and Environmental Claims The Company’s net non-life reserves at December 31, 2017 and 2016 included $134 million and $166 million , respectively, related to asbestos and environmental claims. The gross liability for such claims at December 31, 2017 and 2016 was $142 million and $176 million , respectively, which primarily relate to Paris Re’s gross liability for asbestos and environmental claims for accident years 2005 and prior of $96 million and $113 million , respectively, with any favorable or adverse development being subject to the Reserve Agreement. The remaining $46 million and $63 million in gross reserves at December 31, 2017 and 2016 , respectively, primarily 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 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. Reserving methods The reserving methods commonly employed by the Company are summarized as follows: Chain Ladder (CL) Development Methods (Reported or Paid) These methods use the underlying assumption that losses reported (paid) for each underwriting year at a particular development stage follow a stable pattern. The CL development method assumes that on average, every underwriting year will display the same percentage of ultimate liabilities reported by the Company’s cedants at 24 months after the inception of the underwriting year. The percentages reported (paid) are established for each development stage after examining historical averages from the loss development data. These are sometimes supplemented by external benchmark information. Ultimate liabilities are estimated by multiplying the actual reported (paid) losses by the reciprocal of the assumed reported (paid) percentage. Reserves are then calculated by subtracting paid claims from the estimated ultimate liabilities. Expected Loss Ratio (ELR) Method This method estimates ultimate losses for an underwriting year by applying an estimated loss ratio to the earned premium for that underwriting year. Although the method is insensitive to actual reported or paid losses, it can often be useful at the early stages of development when very few losses have been reported or paid, and the principal sources of information available to the Company consist of information obtained during pricing and qualitative information supplied by the cedant. However, the lack of sensitivity to reported or paid losses means that the method is usually inappropriate at later stages of development. Bornhuetter-Ferguson (B-F) Methods (Reported or Paid) These methods aim to address the variability at early stages of development and incorporates external information such as pricing. The B-F methods are more sensitive to reported and paid losses than the ELR method, and can be seen as a blend of the ELR and CL development methods. Unreported (unpaid) claims are calculated using an expected reporting (payment) pattern and an externally determined estimate of ultimate liabilities (usually determined by multiplying an a priori loss ratio with estimates of premium volume). The accuracy of the a priori loss ratio is a critical assumption in this method. Usually a priori loss ratios are initially determined on the basis of pricing information, but may also be adjusted to reflect other information that subsequently emerges about underlying loss experience. Benktander (B-K) Methods (Reported or Paid) These methods can be viewed as a blend between the CL Development and the B-F methods described above. The blend is based on predetermined weights at each development stage that depend on the reported (paid) development patterns. Loss Event Specific Method The ultimate losses estimated under this method are derived from estimates of specific events based on reported claims, client and broker discussions, review of potential exposures, market loss estimates, modeled analysis and other event specific criteria. Method Weights In determining the loss reserves, the Company often relies on a blend of the results from two or more methods (e.g., weighted averages). The judgment as to which of the above method(s) is most appropriate for a particular underwriting year and reserving cell could change over time as new information emerges regarding underlying loss activity and other data issues. Furthermore, as each line is typically composed of several reserving cells, it is likely that the reserves for the line will be dependent on several reserving methods. This is because reserves for a line are the result of aggregating the reserves for each constituent reserving cell and that a different method could be selected for each reserving cell. The principal reserving methods used for each of the Specialty segment and P&C segment were ELR, Reported/Paid B-F, Reported/Paid B-K and Reported/Paid CL, with the exception of catastrophe risks within the P&C segment where the principal reserving methods used were ELR based on exposure analysis and Loss event specific methods. (b) Life and Health Reserves The reconciliation of the beginning and ending gross and net liability for life and health reserves for the years ended December 31, 2017 and 2016 was as follows (in thousands of U.S. dollars): 2017 2016 Gross liability at beginning of period $ 1,984,096 $ 2,051,935 Reinsurance recoverable at beginning of period 31,372 42,773 Net liability at beginning of period 1,952,724 2,009,162 Liability acquired related to the acquisition of Aurigen 67,916 — Net incurred losses 1,266,214 927,271 Net losses paid (1,017,673 ) (844,156 ) Effects of foreign exchange rate changes 180,688 (139,553 ) Net liability at end of period 2,449,869 1,952,724 Reinsurance recoverable at end of period 40,605 31,372 Gross liability at end of period $ 2,490,474 $ 1,984,096 The increase in net losses paid in 2017 compared to 2016 was primarily due to the inclusion of Aurigen and higher claims paid in Health. The Company used interest rate assumptions to estimate its liabilities for policy benefits for life and annuity contracts which ranged from 0% to 7% at December 31, 2017 and 2016 . (c) Losses and Loss Expenses Losses and loss expenses in the Consolidated Statements of Operations for the years ended December 31, 2017 , 2016 and 2015 were comprised as follows (in thousands of U.S. dollars): 2017 2016 2015 Non-life $ 2,574,768 $ 2,320,820 $ 2,192,999 Life and Health 1,266,214 927,271 964,421 Losses and loss expenses $ 3,840,982 $ 3,248,091 $ 3,157,420 Non-life net incurred and paid losses and loss expense development The net incurred and paid losses and loss expenses development by accident year for each of the years ended December 31, 2012 through 2017 , and the total of IBNR plus expected development on reported claims included within the net incurred claims amounts, as at each of the years ended December 31, 2012 through 2017 , are presented in the tables below (in thousands of U.S. dollars). The information presented below for incurred and paid claims development for each of the years ended December 31, 2012 through 2016 and the average annual percentage payout of incurred claims by age, net of reinsurance, is presented as supplementary information and is unaudited. NET INCURRED LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - NON-LIFE For the year ended December 31, December 31, 2017 Accident year 2012 2013 2014 2015 2016 2017 Total of IBNR plus expected development on reported claims 2012 $ 2,685,454 $ 2,493,810 $ 2,336,917 $ 2,228,953 $ 2,196,626 $ 2,227,260 $ 156,038 2013 $ 2,925,140 $ 2,753,196 $ 2,573,105 $ 2,518,691 $ 2,483,294 $ 233,607 2014 2,882,914 2,664,647 2,551,470 2,518,203 319,931 2015 2,941,159 2,650,862 2,544,179 484,936 2016 2,978,955 2,743,531 771,217 2017 3,034,380 (1 ) 2,120,419 Total $ 15,550,847 $ 4,086,148 NET PAID LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - NON-LIFE For the year ended December 31, Accident year 2012 2013 2014 2015 2016 2017 2012 $ 290,902 $ 1,076,536 $ 1,466,177 $ 1,635,334 $ 1,739,820 $ 1,831,483 2013 $ 249,309 $ 1,320,171 $ 1,679,371 $ 1,883,432 $ 2,015,049 2014 310,960 1,338,380 1,648,748 1,860,577 2015 310,031 1,247,343 1,655,681 2016 333,673 1,402,948 2017 397,053 (1 ) Total $ 9,162,791 Net reserves for Accident Years and exposures included in the triangles $ 6,388,056 All outstanding liabilities before Accident Year 2012, net of reinsurance 2,070,569 Total outstanding liabilities for unpaid claims $ 8,458,625 AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - NON-LIFE Years 1 2 3 4 5 6 Non-life 12% 39% 15% 8% 5% 4% (1) The table above (and each of the three tables below for property, casualty and specialty) reflects losses incurred and paid losses translated to U.S. dollars at the exchange rate as of the balance sheet date whereas the losses and loss expenses in the Consolidated Statement of Operations reflected losses incurred at the average exchange rate for the period. NET INCURRED LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - PROPERTY For the year ended December 31, December 31, 2017 Accident year 2012 2013 2014 2015 2016 2017 Total of IBNR plus expected development on reported claims 2012 $ 681,580 $ 679,274 $ 600,278 $ 583,371 $ 567,870 $ 567,563 $ 15,272 2013 704,000 600,178 566,525 550,840 546,345 4,825 2014 532,197 486,918 464,515 461,719 6,259 2015 609,235 567,709 542,180 17,187 2016 741,002 696,494 53,275 2017 1,033,194 530,918 Total $ 3,847,495 $ 627,736 NET PAID LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - PROPERTY For the year ended December 31, Accident year 2012 2013 2014 2015 2016 2017 2012 $ 102,351 $ 368,126 $ 464,879 $ 500,313 $ 511,821 520,927 2013 91,935 351,048 456,511 491,978 510,813 2014 95,806 333,809 400,247 427,187 2015 97,678 365,650 456,828 2016 139,423 470,421 2017 225,385 Total $ 2,611,561 Net reserves for Accident Years and exposures included in the triangles $ 1,235,934 All outstanding liabilities before Accident Year 2012, net of reinsurance 201,339 Total outstanding liabilities for unpaid claims $ 1,437,273 AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - PROPERTY Years 1 2 3 4 5 6 Property 20% 48% 17% 6% 3% 2% NET INCURRED LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - CASUALTY For the year ended December 31, December 31, 2017 Accident year 2012 2013 2014 2015 2016 2017 Total of IBNR plus expected development on reported claims 2012 $ 701,087 $ 687,470 $ 659,934 $ 618,750 $ 600,969 $ 608,547 $ 102,999 2013 811,925 809,690 760,299 742,170 736,526 179,543 2014 912,442 889,241 869,428 874,583 252,944 2015 911,106 849,772 825,518 326,504 2016 866,772 818,954 426,472 2017 779,812 633,189 Total $ 4,643,940 $ 1,921,651 NET PAID LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - CASUALTY For the year ended December 31, Accident year 2012 2013 2014 2015 2016 2017 2012 $ 52,976 $ 138,628 $ 209,006 $ 282,401 $ 338,800 397,768 2013 51,808 162,355 271,242 353,313 424,092 2014 72,127 212,462 317,277 418,218 2015 68,544 191,076 304,876 2016 35,901 168,303 2017 63,798 Total $ 1,777,055 Net reserves for Accident Years and exposures included in the triangles $ 2,866,885 All outstanding liabilities before Accident Year 2012, net of reinsurance 1,679,085 Total outstanding liabilities for unpaid claims $ 4,545,970 AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - CASUALTY Years 1 2 3 4 5 6 Casualty 7% 15% 13% 12% 9% 10% NET INCURRED LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - SPECIALTY For the year ended December 31, December 31, 2017 Accident year 2012 2013 2014 2015 2016 2017 Total of IBNR plus expected development on reported claims 2012 $ 1,302,787 $ 1,127,066 $ 1,076,705 $ 1,026,832 $ 1,027,787 $ 1,051,150 $ 37,767 2013 1,409,215 1,343,328 1,246,281 1,225,681 1,200,423 49,239 2014 1,438,275 1,288,488 1,217,527 1,181,901 60,728 2015 1,420,818 1,233,381 1,176,481 141,245 2016 1,371,181 1,228,083 291,470 2017 1,221,374 956,312 Total $ 7,059,412 $ 1,536,761 NET PAID LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - SPECIALTY For the year ended December 31, Accident year 2012 2013 2014 2015 2016 2017 2012 $ 135,575 $ 569,782 $ 792,292 $ 852,620 $ 889,199 912,788 2013 105,566 806,768 951,618 1,038,141 1,080,144 2014 143,027 792,109 931,224 1,015,172 2015 143,809 690,617 893,977 2016 158,349 764,224 2017 107,870 Total $ 4,774,175 Net reserves for Accident Years and exposures included in the triangles $ 2,285,237 All outstanding liabilities before Accident Year 2012, net of reinsurance 190,145 Total outstanding liabilities for unpaid claims $ 2,475,382 AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - SPECIALTY Years 1 2 3 4 5 6 Specialty 11% 50% 15% 7% 3% 2% The Company is predominantly a reinsurer of primary insurers and does not have access to claim frequency information held by our cedants due to the majority of the Company’s business being written on a proportional basis. As such, the Company considers it impracticable to disclose information on the frequency of claims. The Company has concluded that it is impracticable to provide net incurred and paid losses and loss expenses development data for 10 years and has therefore presented the data for 6 years. As disclosed in the notes to the consolidated financial statements for the year ended December 31, 2016, the Company provided 5 years of data in 2016 and agreed to include an additional year of data for each subsequent year such that by 2021 a full 10 years of data will be disclosed. The reconciliation of the net incurred and paid claims development information above to the Non-life reserves in the Consolidated Balance Sheet at December 31, 2017 was as follows (in thousands of U.S. dollars): December 31, 2017 Total outstanding liability for unpaid claims Property $ 1,437,273 Casualty 4,545,970 Specialty 2,475,382 Total outstanding liabilities for unpaid claims $ 8,458,625 Other liabilities (1) 563,152 Net liability at end of year $ 9,021,777 Reinsurance recoverable on unpaid claims Property $ 453,656 Casualty 40,920 Specialty 194,105 Reinsurance recoverable at end of year $ 688,680 Gross liability at end of year $ 9,710,457 (1) Other liabilities included in the reconciliation relate primarily to the guaranteed reserves, described above, and unallocated loss expenses. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2017 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | 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. There was no allowance for uncollectible reinsurance recoverable at December 31, 2017 deemed necessary based on the quantitative and qualitative analysis as collectability was determined to be reasonably assured and given that any recoverables related to reinsurers with ratings below A- or unrated are collateralized. The allowance for uncollectible reinsurance recoverable was $12 million at December 31, 2016 . (b) Ceded Reinsurance Net premiums written, net premiums earned and losses and loss expenses are reported net of reinsurance in the Company’s Consolidated Statements of Operations. Assumed, ceded and net amounts for the years ended December 31, 2017 , 2016 and 2015 were as follows (in thousands of U.S. dollars): Premiums Written Premiums Earned Losses and Loss Expenses 2017 Assumed $ 5,587,894 $ 5,471,546 $ 4,458,290 Ceded 467,968 446,565 617,308 Net $ 5,119,926 $ 5,024,981 $ 3,840,982 2016 Assumed $ 5,356,942 $ 5,343,831 $ 3,412,648 Ceded 403,472 374,235 164,557 Net $ 4,953,470 $ 4,969,596 $ 3,248,091 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 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | 10. Debt The debt outstanding and the carrying value recorded in the Consolidated Balance Sheets at December 31, 2017 and 2016 was comprised as follows (in thousands): December 31, 2017 December 31, 2016 Issuer Commitment Carrying Value Fair Value Carrying Value Fair Value Interest rate Issue Date Redemption or Maturity Date PartnerRe Finance A LLC $ 250,000 $ — $ — $ — $ — 6.875 % May 2008 redeemed November 1, 2016 PartnerRe Finance B LLC 500,000 500,000 534,179 500,000 547,145 5.500 % March 2010 June 1, 2020 PartnerRe Ireland Finance DAC € 750,000 884,824 882,717 773,883 753,499 1.250 % September 2016 September 15, 2026 $ 1,384,824 $ 1,416,896 $ 1,273,883 $ 1,300,644 PartnerRe Finance II Inc. $ 63,384 $ 70,989 61,271 $ 70,989 $ 66,817 see Note 1 November 2006 see Note 1 Note 1 - 6.440% to December 1, 2016 and quarterly thereafter at an annual rate of 3-month LIBOR plus a margin equal to 2.325% , reset quarterly; external debt redeemable since December 1, 2016 and any unpaid principle due on intercompany note due on December 1, 2066 PartnerRe Finance A LLC, PartnerRe Finance B LLC, and PartnerRe Finance II Inc. (collectively, U.S. finance entities) were utilized to issue U.S. dollar denominated debt. In 2016, the Company formed PartnerRe Ireland Finance DAC (Irish finance entity) in order to issue Euro denominated senior notes. The U.S. finance entities are wholly-owned by PartnerRe U.S. Corporation, a holding company indirectly 100% owned by the Company. The Irish finance entity is wholly-owned by PartnerRe Holdings Europe Limited, a wholly owned subsidiary of the Company. The proceeds received by the U.S. finance entities upon issuance of debt were provided to PartnerRe U.S. Corporation in exchange for notes receivable for the same principal and interest terms as the related debt issued externally. The proceeds received by the Irish finance entity upon issuance of debt were provided to the Company and PartnerRe U.S. Corporation in exchange for notes receivable. The Company determined that the U.S. entities were VIEs; however, the Company was not the primary beneficiary and, as a result, did not consolidate the U.S. finance entities. The intercompany notes payable by PartnerRe U.S. Corporation to the U.S. finance entities are recorded within Debt related to senior notes and Debt related to CENts in the Consolidated Balance Sheets and the related interest as interest expense in the Consolidated Statements of Operations. The Company determined that PartnerRe Ireland Finance DAC is a VIE and the Company is the primary beneficiary. As a result, the debt issued externally has been reflected as Debt related senior notes in the Consolidated Balance Sheets and the related interest as interest expense in the Consolidated Statements of Operations. The cash proceeds and intercompany notes were issued by PartnerRe Ireland Finance DAC to the Company and PartnerRe U.S. Corporation, which has been eliminated on consolidation, together with the related interest. Debt related to senior notes On November 1, 2016, PartnerRe Finance A LLC early redeemed the 6.875% notes with an aggregate principle of $250 million notes for a price of $272 million and, as a result, recorded a loss on redemption of debt of $22 million in the Company's Statement of Operations, representing a make whole provision related to future interest foregone as a result of the early retirement. PartnerRe Finance B LLC has the option to redeem the 5.500% senior notes, in whole or in part, at any time. PartnerRe U.S. Corporation has agreed to pay the related 5.500% note payable to PartnerRe Finance B LLC for any unpaid principal amount on June 1, 2020 . Interest on these notes is payable semi-annually at an annual fixed rate of 5.500% and cannot be deferred. These senior notes are ranked as senior unsecured obligations of PartnerRe Finance B LLC and the Company has fully and unconditionally guaranteed all obligations of PartnerRe Finance B LLC related to these senior notes. The Company’s obligations under this guarantee are senior and unsecured and rank equally with all other senior unsecured indebtedness. The 1.250% senior notes issued by PartnerRe Ireland Finance DAC in 2016 were issued at a price of 99.144% of the principal amount and are listed in the main securities market of the Irish Stock Exchange. Interest is payable annually commencing on September 15, 2017. These senior notes may be redeemed at the option of the issuer, in whole or in part, at any time from September 2021, with any early redemption prior to that date subject to the Bermuda Regulatory Authority's approval. These senior notes are ranked as senior unsecured obligations of PartnerRe Ireland Finance DAC. The Company has fully and unconditionally guaranteed all obligations of PartnerRe Ireland Finance DAC under these senior notes. The Company’s obligations under this guarantee are senior and unsecured and rank equally with all other senior unsecured indebtedness. Debt related to Capital Efficient Notes (CENts) In November 2006, PartnerRe Finance II Inc. issued Fixed-to-Floating Rate Junior Subordinated CENts with a principal amount of $250 million and on March 13, 2009, purchased and retired $187 million of this principal amount. As a result, the remaining aggregate principal amount of the CENts is $63 million . In November 2006, PartnerRe U.S. Corporation issued a Fixed-to-Floating Rate promissory note, with a principal amount of $258 million to PartnerRe Finance II Inc. due December 1, 2066 . In March 2009, $187 million of the principal amount was extinguished. As a result, the remaining principal amount of the intercompany promissory note, which is included as Debt related to capital efficient notes in the Consolidated Balance Sheet, is $71 million . The CENts have been redeemable at the option of the issuer, in whole or in part, since December 1, 2016 and are ranked as junior subordinated unsecured obligations of PartnerRe Finance II Inc. The Company has fully and unconditionally guaranteed on a subordinated basis all obligations of PartnerRe Finance II Inc. under the CENts. The Company’s obligations under this guarantee are unsecured and rank junior in priority of payments to the Company’s senior notes. Interest on both the CENts and the promissory note was payable semi-annually through to December 1, 2016 at an annual fixed rate of 6.440% and payable quarterly thereafter until maturity at an annual rate of 3-month LIBOR plus a margin equal to 2.325% , reset quarterly. Since December 1, 2016, PartnerRe Finance II Inc. has the right to defer one or more interest payments for up to ten years to December 1, 2026. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | 11. Shareholders’ Equity Authorized Shares At December 31, 2017 and 2016 , the total authorized share capital (common and preferred) of the Company was $200 million . Common Shares Following the completion of the Merger on March 18, 2016, each publicly traded common share issued and outstanding was cancelled and converted into $137.50 in cash per share and a one-time special pre-closing cash dividend of $3.00 per common share was paid. The common shares were delisted from the NYSE and one common share at $1.00 par value was issued to Exor N.V., representing 100% common share ownership of the Company. On October 27, 2016, Exor N.V. was renamed EXOR Nederland N.V. On November 24, 2016, the one common share of $1.00 par value was subdivided into 100 million authorized and issued Class A shares of $0.00000001 par value each. At December 31, 2017 and 2016 , the issued and outstanding common share capital was $1.00 . Redeemable Preferred Shares At December 31, 2017 and 2016 , the Company's issued and outstanding redeemable preferred shares, each with a par value of $1.00 per share, were as follows (in millions of U.S. dollars, except percentage amounts): Series F Series G Series H Series I Total Date of issuance February 2013 May 2016 May 2016 May 2016 Number of preferred shares outstanding 2,679,426 6,415,264 11,753,798 7,320,574 28,169,062 Annual dividend rate 5.875 % 6.5 % 7.25 % 5.875 % Underwriting discounts and commissions (1) $ 2.3 $ 5.4 $ 9.5 $ 6.4 $ 23.6 Aggregate liquidation value, at $25 per share $ 67.0 $ 160.4 $ 293.8 $ 183.0 $ 704.2 (1) Underwriting discounts and commissions represent the original amounts paid to issue Series D, E and F shares. These amounts were reallocated on a pro-rata basis between the previously issued and the newly issued shares as a result of the share exchange in May 2016 for $nil consideration described below. In accordance with the terms of the Merger Agreement, upon effecting the Merger, EXOR S.p.A. paid cash of $1.25 per share for an aggregate payment of approximately $43 million in the aggregate to the preferred shareholders and agreed to launch an exchange offer. On April 1, 2016, the Company launched the exchange offer whereby participating preferred shareholders could exchange any or all existing preferred shares for newly issued preferred shares reflecting, subject to certain exceptions contained in the existing preferred shares, an extended call date of the fifth anniversary from the date of issuance, and a restriction on payment of dividends on common shares declared with respect to any fiscal quarter to an amount not exceeding 67% of net income during such fiscal quarter until December 31, 2020. The terms of the newly issued preferred shares would otherwise remain identical in all material respects to the Company’s existing preferred shares, as described below. The exchange offer expired on April 29, 2016 and on May 1, 2016, 6,415,264 Series D, 11,753,798 Series E and 7,320,574 Series F preferred shares were exchanged for an equivalent number of Series G, Series H and Series I preferred shares, respectively. There was no consideration paid and no increase in fair value of the preferred shares as a result of the exchange and, as a result, the exchange was considered a modification of the preferred shares with no gain or loss or deemed dividend arising as a result of the exchange. As a result of the exchange offer, the Company cancelled the Series D, E and F preferred shares tendered in the exchange offer. Non-tendered preferred shares not exchanged and the new Series G, H and I preferred shares remain outstanding and will continue to be listed on the NYSE until redeemed. On November 1, 2016, the Company redeemed 2,784,736 Series D and 3,196,202 Series E preferred shares at their redemption price of $25 per share for an aggregate liquidation value of $150 million . In addition, unpaid preferred dividends accrued to the redemption date totaling $2 million were paid. In connection with the redemption, the Company recognized a loss of $5 million related to the deferred issuance costs paid upon issuance which were included in additional paid-in capital related to the Series D and E preferred shares. The loss on redemption of preferred shares of $5 million was recognized as a deemed preferred dividend in retained earnings and in determining the net income attributable to the PartnerRe Ltd. common shareholder in 2016. The redemption price of all preferred shares is $25 per share plus accrued and unpaid dividends without interest at any time or in part from time to time on or after the fifth anniversary from date of issuance. The Company may redeem the Series F preferred shares 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. The Company may redeem each of the Series G, H and I preferred shares on or after May 1, 2021. Dividends on the Series F and I preferred shares are non-cumulative and are payable quarterly. Dividends on the Series G and H preferred shares are cumulative from the date of issuance and are payable quarterly in arrears. In the event of liquidation of the Company, Series F, G, H and I preferred shares rank on parity with each other but rank senior to the common shares. The holders of the Series F, G, H and I preferred shares would receive a distribution of $25 per share, or the aggregate liquidation value. In addition, upon liquidation, non-cumulative Series F and I preferred shares would receive any declared but unpaid dividends while the cumulative Series G and H preferred shares would receive any accrued but unpaid dividends. |
Noncontrolling interests
Noncontrolling interests | 12 Months Ended |
Dec. 31, 2017 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling interests | 12. 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. Lorenz Re was deconsolidated in 2016, as the Company’s investment in Lorenz Re no longer met the U.S. GAAP consolidation criteria. In 2017, Lorenz Re issued non-voting redeemable preferred share capital on behalf of a new segregated account to provide additional capacity to the Company for a diversified catastrophe portfolio on a fully collateralized reinsurance basis. The Company determined that it was the primary beneficiary of this segregated account and, accordingly, the segregated account was consolidated by the Company. No noncontrolling interest exists in this new segregated account as at December 31, 2017. The reconciliation of the beginning and ending balance of the noncontrolling interests in Lorenz Re for the years ended December 31, 2016 and 2015 was as follows (in thousands of U.S. dollars): 2016 2015 Balance at January 1 $ 2,450 $ 55,501 Net income attributable to noncontrolling interests — 2,769 Distribution to noncontrolling interests (2,450 ) (55,820 ) Balance at December 31 $ — $ 2,450 |
Dividend Restrictions and Statu
Dividend Restrictions and Statutory Requirements | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure - Dividend Restrictions and Statutory Requirements [Abstract] | |
Dividend Restrictions and Statutory Requirements | 13. 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, PartnerRe U.S. and PartnerRe Asia (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 domiciled. 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. In addition, in accordance with the terms of the merger agreement between the Company and Exor N.V. , subsequent to preferred share exchange (see Note 11), the Company's payment of dividends on common shares declared with respect to any fiscal quarter is restricted to an amount not exceeding 67% of net income per fiscal quarter until December 31, 2020. At December 31, 2017 , there were no other 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, 2017 , 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 that are limited on a statutory basis, 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, 2017 , the maximum dividend that PartnerRe Bermuda could pay without prior regulatory approval was approximately $1,040 million . Effective January 1, 2016, PartnerRe Europe and PartnerRe Ireland are subject to the Solvency II European Directive (Solvency II Regulations). The Solvency II Regulations relate to the solvency standards applicable to insurers and reinsurers and lays down, at the level of PartnerRe Europe and PartnerRe Ireland, 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. PartnerRe Europe may declare dividends subject to it continuing to meet its Solvency II requirements, which are to hold available capital, calculated on a Solvency II balance sheet basis, in excess of the solvency capital requirement (SCR). The maximum dividend is limited to “profits available for distribution”, which consist of accumulated realized profits less accumulated realized losses. The reporting deadline for the annual Solvency II submission is May 6, 2018. 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. However, as a condition of the acquisition by Exor N.V., PartnerRe U.S. committed that it would not take action to pay any dividend for the two-year period from March 18, 2016 to March 18, 2018 without the prior approval of the New York State Department of Financial Services. PartnerRe Asia may declare dividends from unappropriated profits subject to meeting the capital requirements, as laid out by the Monetary Authority of Singapore. As a licensed reinsurer, PartnerRe Asia is required to maintain minimum capital of SGD 25 million . In addition, PartnerRe Asia is required to establish and maintain separate insurance funds for each class of business that it writes, for both Singapore and offshore policies. The solvency requirement in respect of each insurance fund shall at all times be not less than the total risk requirement of the fund (determined by reference to three components being insurance risks, asset portfolio risks and asset concentration risks) and above 120% of the total risk requirement on a Company basis. The declaration of a dividend by PartnerRe Asia is subject to conditions and requirements being met as specified under the Companies Act and the Insurance Act and its associated regulations. The filing date for the annual submission is March 31, 2018. The statutory financial statements and returns of the Company’s reinsurance subsidiaries as at, and for the year ended, December 31, 2017 are due to be submitted to the relevant regulatory authorities later in 2018 , 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 (loss) income of PartnerRe Bermuda, PartnerRe Europe, PartnerRe U.S. and PartnerRe Asia for the years ended December 31, 2017 , 2016 and 2015 was as follows (in millions of U.S. dollars): 2017 2016 2015 PartnerRe Bermuda $ (69 ) $ 531 $ 444 PartnerRe Europe 149 61 79 PartnerRe U.S. 24 72 219 PartnerRe Asia 15 43 4 The required and actual statutory capital and surplus of PartnerRe Bermuda, PartnerRe Europe, PartnerRe U.S. and PartnerRe Asia at December 31, 2017 and 2016 was as follows (in millions of U.S. dollars): PartnerRe Bermuda PartnerRe Europe PartnerRe U.S. PartnerRe Asia 2017 2016 2017 2016 2017 2016 2017 2016 Required statutory capital and surplus $ 1,811 $ 1,578 $ 1,636 $ 1,431 $ 662 $ 672 $ 57 $ 49 Actual statutory capital and surplus $ 3,781 $ 4,159 $ 2,234 $ 1,655 $ 1,336 $ 1,464 $ 251 $ 238 At December 31, 2017 and 2016 , 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. In addition to the required statutory capital and surplus requirements for the reinsurance subsidiaries in the table above, the Company is required to assess its solvency capital needs both at a Group and subsidiary level. The Company’s capital requirements determine the amount of capital available to be declared as dividends to its shareholders. As Group Supervisor, the Bermuda Monetary Authority is tasked with assessing the financial condition of the Group and coordinates the dissemination of information to other relevant competent authorities for the purpose of assisting in their regulatory functions and the enforcement of regulatory action against the Company or any of its subsidiaries, including the power to impose restrictions on the ability of the relevant subsidiaries to declare dividends to the Company. In addition, the Company is required to maintain the Group ECR imposed by the BMA under Bermuda law. |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure - Taxation [Abstract] | |
Taxation | 14. 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 U.S. Income tax returns are open for examination for the tax years 2012-2017 in Hong Kong, 2013-2017 in Canada and Ireland, 2014-2017 in the U.S., 2015-2017 in Singapore and France, and 2016-2017 in Switzerland. 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, 2017 , 2016 and 2015 was as follows (in thousands of U.S. dollars): 2017 2016 2015 Current income tax (benefit) expense U.S. $ (10,031 ) $ 2,798 $ 81,066 Non U.S. 76,425 26,913 95,720 Total current income tax expense $ 66,394 $ 29,711 $ 176,786 Deferred income tax expense (benefit) U.S. $ 5,538 $ 10,070 $ (59,624 ) Non U.S. (58,702 ) (127 ) (44,125 ) Total deferred income tax (benefit) expense $ (53,164 ) $ 9,943 $ (103,749 ) Unrecognized tax (benefit) expense U.S. $ — $ — $ — Non U.S. (2,872 ) (13,731 ) 6,627 Total unrecognized tax (benefit) expense $ (2,872 ) $ (13,731 ) $ 6,627 Total income tax (benefit) expense U.S. $ (4,493 ) $ 12,868 $ 21,442 Non U.S. 14,851 13,055 58,222 Total income tax expense $ 10,358 $ 25,923 $ 79,664 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, 2017 , 2016 and 2015 (in thousands of U.S. dollars): 2017 2016 2015 Domestic (Bermuda) 82,219 334,559 (63,603 ) Foreign 192,160 138,672 250,417 Income before taxes 274,379 473,231 186,814 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 11.4 6.9 58.3 Impact of foreign exchange (losses) gains (3.2 ) 2.2 1.1 Unrecognized tax (benefit) expense (1.0 ) (2.9 ) 3.5 Tax-exempt income and expenses not deductible (5.2 ) (3.2 ) (8.0 ) Foreign branch tax (24.6 ) 0.3 (26.8 ) Valuation allowance 24.8 0.3 15.2 Other 1.6 1.9 (0.7 ) Actual tax rate 3.8 % 5.5 % 42.6 % During the year ended December 31, 2017 , both the United States and France enacted tax rate changes. On December 22, 2017, the United States enacted the Tax Cuts and Jobs Act ("TCJA") to reduce the corporate income tax rate from 35% to 21% effective for taxable years beginning after December 31, 2017. On December 30, 2017, France enacted legislation to progressively reduce the current corporate income tax rate of 34.43% to specific scheduled effective rates, including the applicable surtax, for each subsequent year end which includes 28.92% on the first €500,000 taxable income and 34.43% on the remainder for 2018 decreasing to 25.83% for 2022. As a result, income tax expense for the year ended December 31, 2017 was adjusted to reflect the impact of these tax rate changes and resulted in an increase to income tax expense of $5 million . This increase reflects the revaluation of deferred tax assets and liabilities in the United States and France at December 31, 2017 . The Company continues to review and analyze the provisions of the TCJA and the impact on our financial statements. Given the complexity of the legislation, anticipated guidance from the U.S. Treasury, and the potential for additional guidance from the Securities and Exchange Commission or the Financial Accounting Standards Board, the impact of the TCJA may differ from the estimates booked, in which case, any adjustments will be recorded during 2018. The components of net tax assets and liabilities at December 31, 2017 and 2016 were as follows (in thousands of U.S. dollars): December 31, 2017 December 31, 2016 Net tax assets $ 133,169 $ 194,170 Net tax liabilities (154,947 ) (166,113 ) Net tax (liabilities) assets $ (21,778 ) $ 28,057 December 31, 2017 December 31, 2016 Net current tax assets 53,900 145,831 Net deferred tax liabilities (67,737 ) (108,084 ) Net unrecognized tax benefit (7,941 ) (9,690 ) Net tax (liabilities) assets $ (21,778 ) $ 28,057 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, 2017 and 2016 were as follows (in thousands of U.S. dollars): December 31, 2017 December 31, 2016 Deferred tax assets Discounting of loss reserves and adjustment to life policy reserves $ 34,806 $ 49,029 Foreign tax credit carryforwards 163,134 80,390 Tax loss carryforwards 36,405 35,708 Unearned premiums 14,425 25,518 Other deferred tax assets 31,566 24,012 280,336 214,657 Valuation allowance (185,615 ) (91,819 ) Deferred tax assets 94,721 122,838 Deferred tax liabilities Deferred acquisition costs 29,204 50,313 Goodwill and other intangibles 70,674 79,606 Equalization reserves 27,252 39,812 Unrealized appreciation and timing differences on investments 13,361 5,946 Unrealized appreciation and timing differences on foreign exchange revaluations 13,413 49,645 Other deferred tax liabilities 8,554 5,600 Deferred tax liabilities 162,458 230,922 Net deferred tax liabilities $ (67,737 ) $ (108,084 ) 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, 2017 relates to a foreign tax credit carryforward of $163 million in Ireland, other deferred foreign tax of $7 million in Ireland, and net deferred tax assets of $10 million in Canada and $ 7 million in the United States. The valuation allowance recorded at December 31, 2016 related to a foreign tax credit carryforward of $80 million , other deferred foreign tax of $7 million in Ireland, tax loss carryforwards of $4 million in Canada, and $1 million in the United States. At December 31, 2017 , the deferred tax assets (after valuation allowance) included tax loss carryforwards of $18 million in Singapore, $8 million in Ireland, and $2 million in Hong Kong, which can be carried forward for an unlimited period of time. At December 31, 2016 , the deferred tax assets (after valuation allowance) included tax loss carryforwards of $20 million in Singapore, $5 million in France, $1 million in Ireland, and $1 million in Hong Kong, which can be carried forward for an unlimited period of time, and $2 million in Canada, which can be carried forward for 20 years . The total amount of unrecognized tax benefits for the years ended December 31, 2017 , 2016 and 2015 was as follows (in thousands of U.S. dollars): January 1, 2017 Changes in tax positions taken during a prior year Tax positions taken during the current year Change as a result of a lapse of the statute of limitations Impact of the change in foreign currency exchange rates December 31, 2017 Unrecognized tax benefits that, if recognized, would impact the effective tax rate $ 8,722 $ 281 $ 589 $ (4,115 ) $ 983 $ 6,460 Interest and penalties recognized on the above 968 900 6 (534 ) 141 1,481 Total unrecognized tax benefits, including interest and penalties $ 9,690 $ 1,181 $ 595 $ (4,649 ) $ 1,124 $ 7,941 January 1, 2016 Changes in tax Tax positions Change as a Impact of the December 31, 2016 Unrecognized tax benefits that, if recognized, would impact the effective tax rate $ 22,255 $ (13,728 ) $ 688 $ (112 ) $ (381 ) $ 8,722 Interest and penalties recognized on the above 1,583 (573 ) 5 (11 ) (36 ) 968 Total unrecognized tax benefits, including interest and penalties $ 23,838 $ (14,301 ) $ 693 $ (123 ) $ (417 ) $ 9,690 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 $ 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 For the years ended December 31, 2017 , 2016 and 2015 , 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, 2017 , there was no unrecognized tax benefit which is reasonably possible to change within twelve months. |
Share-Based Incentives (Notes)
Share-Based Incentives (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Share-based Arrangements with Employees and Nonemployees [Abstract] | |
Share-Based Incentives | 15. Share-Based Incentives During 2017, the Company designated a new class of voting common shares (Class B shares) that can be either granted to certain executives of the Company at the discretion of the Company or purchased by the executives. The granted shares are restricted from sale for three years from date of grant. Unrestricted Class B shares can be purchased by these executives in accordance with the Certificate of Designation Preferences and Rights twice a year at a price based on the latest book value as of the most recent valuation date of either June 30 or December 31. Unrestricted Class B shares can be sold or transferred at the option of the employee and in accordance with the relevant subscription agreement and can be sold to only the Company, subject to the employee having held a minimum of four times their gross LTI target value, unless otherwise agreed in writing. As a result, the Class B shares are accounted for as liabilities, with the restricted shares granted recognized at fair value over the three year restriction period. The compensation expense and related liability related to granted awards for the year ended December 31, 2017 was less than $2 million . At December 31, 2017, shares purchased by two executives for a total of $11 million in cash was recorded as a liability on the Consolidated balance sheet with no impact on the Consolidated Statement of Operations as the fair value of the purchased shares approximated the purchase price paid. Upon change in control of the Company on March 18, 2016, all equity share-based awards (including share options, share-settled share appreciation rights (SSARs), restricted share units (RSUs), performance share units (PSUs) and warrants) fully vested and any remaining unrecognized share based compensation was fully expensed. As a result, at December 31, 2017 and 2016 there were no equity share-based awards outstanding. During 2016, the Company recognized a total share-based compensation expense of $36 million , and a related tax benefit of $40 million for tax deductions arising from the accelerated vesting upon change in control. For the year ended December 31, 2015 the Company’s share-based compensation expense was $42 million with a tax benefit of $7 million . The share options and SSARs totaling $75 million were settled by the Company upon the change in control and recorded as a reduction in additional paid-in capital in 2016. The Company previously valued RSUs and PSUs at the fair value of its common shares at the grant date. The RSUs and PSUs that vested during 2016 and 2015 had a fair value of $95 million and $22 million , respectively. The RSUs and PSUs were settled directly by Exor N.V. upon the change in control. |
Retirement Benefit Arrangements
Retirement Benefit Arrangements | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure - Retirement Benefit Arrangements [Abstract] | |
Retirement Benefit Arrangements | 16. 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, 2017 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 $11 million , $13 million and $13 million for the years ended December 31, 2017 , 2016 and 2015 , respectively, included within Other expenses in the Company's Consolidated Statements of Operations. 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, 2017 and 2016 , the funded status of the Zurich Plan was as follows (in thousands of U.S. dollars): 2017 2016 Funded status Unfunded pension obligation at beginning of year $ 57,941 $ 50,405 Change in pension obligation Service cost 7,510 6,906 Interest cost 1,295 1,501 Plan participants’ contributions 2,905 2,704 Actuarial loss 1,483 8,467 Plan amendments — 85 Benefits paid (2,097 ) 1,756 Foreign currency adjustments 7,489 (5,965 ) Change in pension obligation 18,585 15,454 Change in fair value of plan assets Actual return on plan assets 1,131 2,011 Employer contributions 5,361 5,319 Plan participants’ contributions 2,905 2,704 Benefits paid (2,097 ) 1,756 Foreign currency adjustments 4,884 (3,872 ) Change in fair value of plan assets 12,184 7,918 Funded status Unfunded pension obligation at end of year $ 64,342 $ 57,941 Additional information: Projected benefit obligation at end of year $ 185,154 $ 166,569 Accumulated pension obligation at end of year 172,806 156,803 Fair value of plan assets at end of year 120,812 108,628 At December 31, 2017 and 2016 , 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, 2017 and 2016 were $34 million (net of $10 million of taxes) and $32 million (net of $9 million of taxes), respectively. The net periodic benefit cost for the years ended December 31, 2017 , 2016 and 2015 was $11 million , $10 million and $10 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, 2017 and 2016 were insured funds and cash (Level 2) of $121 million and $109 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, 2017 , 2016 and 2015 were as follows: 2017 2016 2015 Pension obligation Net periodic benefit cost Pension obligation Net periodic benefit cost Pension obligation Net periodic benefit cost Discount rate 0.75 % 0.75 % 0.75 % 1.00 % 1.00 % 1.25 % Expected return on plan assets — 0.75 % — 1.00 % — 1.25 % Rate of compensation increase 2.25 % 2.00 % 2.00 % 2.25 % 2.25 % 2.25 % At December 31, 2017 , estimated employer contributions to be paid in 2018 related to the Zurich Plan were $5 million and future benefit payments were estimated to be paid as follows (in thousands of U.S. dollars): Year Amount 2018 $ 4,751 2019 4,657 2020 4,666 2021 5,754 2022 5,721 2023 to 2027 36,040 The Company does not believe that any of the Zurich Plan’s assets will be returned to the Company during 2018 . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 17. 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, 2017 and 2016 , 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 ensures that there are no significant concentrations of credit risk in any one bank. 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 non-life reserves. The Company regularly reviews its reinsurance recoverable balances to estimate an allowance for uncollectible amounts based on quantitative and qualitative factors. At December 31, 2017 and 2016 , the Company recorded a provision for uncollectible premiums receivable of $5 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 2029. 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 noncancelable leases and future sub-lease rental income on noncancelable leases at December 31, 2017 (in thousands of U.S. dollars): Year Amount 2018 $ 17,195 2019 11,247 2020 9,277 2021 9,256 2022 8,895 2023-2029 38,947 Total future minimum rental payments $ 94,817 Total future sub-lease rental income through 2019 $ 2,556 Rent expense for the years ended December 31, 2017 , 2016 and 2015 was $26 million , $25 million and $23 million , respectively. (c) 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 $23 million through 2022. The Company has entered into strategic investments with unfunded capital commitments. The Company expects to fund capital commitments totaling $315 million with $109 million , $92 million , $63 million , and $51 million to be paid during 2018, 2019, 2020 and 2021, respectively, with no further commitments for 2022 as of December 31, 2017. 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, 2017 and 2016 , the Company’s participation in the facility was $67 million and $62 million , respectively. At December 31, 2017 , 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. (d) 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, 2017 , 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, 2017 | |
Line of Credit Facility [Abstract] | |
Schedule of Line of Credit Facilities [Table Text Block] | 18. 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, 2017 , the total amount of such credit facilities available to the Company was approximately $689 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 $114 million and $474 million , respectively, at December 31, 2017 , 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 each year on November 14, unless canceled by either counterparty, this credit facility automatically extends for a further 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, 2017 is a $225 million secured credit facility, which has various maturity dates ranging from December 31, 2018 to December 31, 2021 , and a $80 million secured credit facility, which matures on December 31, 2018 . At December 31, 2017 , no conditions of default existed under these facilities. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure - Agreements With Related Parties [Abstract] | |
Agreements with related parties | 19. Related Party Transactions During 2017 and 2016 the Company declared and paid to EXOR Nederland N.V. common share dividends totaling $145 million and $250 million , respectively. During 2017, the Company invested $500 million in certain Exor managed equity funds. At December 31, 2017 the carrying value of these investments was $551 million , and was included within Equities in the Consolidated Balance Sheet. During 2017, the Company completed the acquisition of certain real estate investments from Almacantar for total cash consideration of £55 million ( $83 million ). At December 31, 2017 , the carrying value of these investments of $83 million was included within Investments in real estate in the Consolidated Balance Sheet. In December 2017, a subsidiary of the Company entered into a Consulting Services Agreement with EXOR Nederland N.V. (Consulting Agreement), whereby EXOR Nederland N.V. provides advisory services related to certain real estate investments. The Company paid $45 thousand related to such services provided in 2017. Effective April 1, 2017, a subsidiary of the Company entered into a consulting agreement with a director of the Company under which the director provides certain support of our investment operations for a fee of $500 thousand per annum. Effective April 1, 2016, the Company entered into a Services Agreement with EXOR Nederland N.V. (Services Agreement), whereby EXOR Nederland N.V. provides certain advisory services to the Company for a fixed annual fee of €300 thousand . The Services Agreement was amended in 2017 to increase the fixed annual fee to $500 thousand . In March 2016, the Company agreed to purchase from Exor S.A. a 36% shareholding in the privately held United Kingdom real estate investment and development group, Almacantar Group S.A. (Almacantar) for a total cash consideration of approximately $539 million . At December 31, 2017 and 2016 , the total carrying value of the Almacantar investment accounted for under the equity method was $538 million and $436 million , respectively, and was included within Other invested assets in the Consolidated Balance Sheets. In March 2016, the Company agreed to purchase from Exor S.A. certain financial investments, mainly third-party equity funds, for cash consideration of approximately $202 million . In the normal course of its underwriting activities, the Company entered into reinsurance and underwriting agreements with companies affiliated with the Company, including Lorenz Re, a special purpose insurer and segregated accounts company organized under the laws of Bermuda. Distinct segregated accounts are formed and capitalized within Lorenz Re on a fully collateralized basis. All transactions entered into with Lorenz Re were completed on market terms. In the normal course of its investment operations, the Company bought or held securities of companies affiliated with the Company. The transactions between related parties discussed above were entered into at arm's-length. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Segment Reporting Disclosure [Text Block] | 20. Segment Information Effective July 1, 2016, the Company’s business units were consolidated into three worldwide business segments: Property and Casualty (P&C), Specialty and Life and Health. As a result, the Company monitors the performance of its operations in these three segments. The business in the P&C and Specialty segments is collectively referred to as Non-life business. P&C, Specialty and Life and Health each separately represent markets that are reasonably homogeneous in terms of client types, buying patterns, underlying risk patterns and approach to risk management. The P&C segment is comprised of property and casualty business underwritten, including property catastrophe and facultative risks in North America, Europe, Asia, Latin America, and Middle East, Africa and Russia. The Specialty segment is comprised of specialty business underwritten, including treaty and facultative contracts. The Life and Health segment in comprised of worldwide life, annuity, and health business. Management measures results for the P&C and Specialty segments 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 Life and Health segment on the basis of the allocated underwriting result, which includes revenues from net premiums earned, other income or loss, net investment income allocated to life business, life policy benefits, acquisition costs and other expenses. During the year ended December 31, 2016, the segment results for the year ended December 31, 2015 were recast to conform to the new segment presentation. The segment results for the years ended December 31, 2017 , 2016 and 2015 are presented below (in millions of U.S. dollars, except ratios). Segment Information For the year ended December 31, 2017 P&C Specialty Total Life Corporate and Other Total Gross premiums written $ 2,255 $ 1,934 $ 4,189 $ 1,399 $ — $ 5,588 Net premiums written $ 1,996 $ 1,780 $ 3,776 $ 1,344 $ — $ 5,120 Increase in unearned premiums (33 ) (55 ) (88 ) (7 ) — (95 ) Net premiums earned $ 1,963 $ 1,725 $ 3,688 $ 1,337 $ — $ 5,025 Losses and loss expenses (1,620 ) (955 ) (2,575 ) (1,266 ) — (3,841 ) Acquisition costs (495 ) (489 ) (984 ) (136 ) — (1,120 ) Technical result $ (152 ) $ 281 $ 129 $ (65 ) $ — $ 64 Other (loss) income — (1 ) (1 ) 14 2 15 Other expenses (71 ) (33 ) (104 ) (61 ) (183 ) (348 ) Underwriting result (223 ) 247 $ 24 $ (112 ) n/a $ (269 ) Net investment income 60 342 402 Allocated underwriting result $ (52 ) n/a n/a Net realized and unrealized investment gains 232 232 Interest expense (42 ) (42 ) Loss on redemption of debt (2 ) (2 ) Amortization of intangible assets (25 ) (25 ) Net foreign exchange losses (108 ) (108 ) Income tax expense (10 ) (10 ) Interest in earnings of equity method investments 86 86 Net income n/a $ 264 Loss ratio (1) 82.6 % 55.4 % 69.8 % Acquisition ratio (2) 25.2 28.4 26.7 Technical ratio (3) 107.8 % 83.8 % 96.5 % Other expense ratio (4) 3.6 % 1.9 % 2.8 Combined ratio (5) 111.4 % 85.7 % 99.3 % (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. n/a: Not applicable Segment Information For the year ended December 31, 2016 P&C Specialty Total Non-life Life and Health segment Corporate and Other Total Gross premiums written $ 2,269 $ 1,920 $ 4,189 $ 1,168 $ — $ 5,357 Net premiums written $ 2,061 $ 1,776 $ 3,837 $ 1,117 $ — $ 4,954 Decrease (increase) in unearned premiums 25 (9 ) 16 — — 16 Net premiums earned $ 2,086 $ 1,767 $ 3,853 $ 1,117 $ — $ 4,970 Losses and loss expenses (1,248 ) (1,073 ) (2,321 ) (927 ) — (3,248 ) Acquisition costs (556 ) (500 ) (1,056 ) (131 ) — (1,187 ) Technical result $ 282 $ 194 $ 476 $ 59 $ — $ 535 Other income (loss) 3 (1 ) 2 10 3 15 Other expenses (141 ) (88 ) (229 ) (66 ) (177 ) (472 ) Underwriting result 144 105 $ 249 $ 3 n/a $ 78 Net investment income 58 353 411 Allocated underwriting result $ 61 n/a n/a Net realized and unrealized investment gains 26 26 Interest expense (49 ) (49 ) Loss on redemption of debt (22 ) (22 ) Amortization of intangible assets (26 ) (26 ) Net foreign exchange gains 78 78 Income tax expense (26 ) (26 ) Interest in losses of equity method investments (23 ) (23 ) Net income n/a $ 447 Loss ratio 59.8 % 60.8 % 60.3 % Acquisition ratio 26.7 28.3 27.4 Technical ratio 86.5 % 89.1 % 87.7 % Other expense ratio 6.7 % 4.9 % 5.9 Combined ratio 93.2 % 94.0 % 93.6 % Segment Information For the year ended December 31, 2015 P&C Specialty Total Life Corporate Total Gross premiums written $ 2,371 $ 1,906 $ 4,277 $ 1,271 $ — $ 5,548 Net premiums written $ 2,236 $ 1,786 $ 4,022 $ 1,208 $ — $ 5,230 Decrease in unearned premiums 4 34 $ 38 1 — $ 39 Net premiums earned $ 2,240 $ 1,820 $ 4,060 $ 1,209 $ — $ 5,269 Losses and loss expenses (1,129 ) (1,064 ) (2,193 ) (964 ) — (3,157 ) Acquisition costs (570 ) (494 ) (1,064 ) (153 ) — (1,217 ) Technical result $ 541 $ 262 $ 803 $ 92 $ — $ 895 Other income — — — 6 3 9 Other expenses (137 ) (82 ) (219 ) (63 ) (509 ) (791 ) Underwriting result 404 180 $ 584 $ 35 n/a $ 113 Net investment income 59 391 450 Allocated underwriting result $ 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 50.4 % 58.5 % 54.0 % Acquisition ratio 25.4 27.1 26.2 Technical ratio 75.8 % 85.6 % 80.2 % Other expense ratio 6.2 % 4.5 % 5.4 Combined ratio 82.0 % 90.1 % 85.6 % 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, 2017 , 2016 and 2015 : 2017 2016 2015 Asia, Australia and New Zealand 13 % 12 % 12 % Europe 34 36 37 Latin America, Caribbean and Africa 9 8 10 North America 44 44 41 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 4% , 4% and 3% of total gross premiums written during the years ended December 31, 2017 , 2016 and 2015 , respectively. The Company has two brokers that individually accounted for 10% or more of its gross premiums written during the years ended December 31, 2017 , 2016 and 2015 . The brokers accounted for 22% , 22% and 19% and 25% , 22% and 22% of gross premiums written for the years ended December 31, 2017 , 2016 and 2015 , respectively. The following table summarizes the percentage of gross premiums written through these two brokers by segment for the years ended December 31, 2017 , 2016 and 2015 : 2017 2016 2015 P&C 57 % 57 % 54 % Specialty 56 % 46 % 42 % Life and Health 18 % 16 % 16 % |
Other Expenses
Other Expenses | 12 Months Ended |
Dec. 31, 2017 | |
Other Expenses [Abstract] | |
Other expenses | 21. Other Expenses For the year ended December 31, 2017, the Company recorded $29 million of reorganization related costs and $4 million of transaction costs related to the acquisition of Aurigen. For the year ended December 31, 2016, the Company recorded $76 million of transaction related costs and $52 million of reorganization related costs primarily associated with the acquisition of the Company by Exor N.V. The $76 million transaction related costs included $38 million for settlement of share-based awards that fully vested upon the change in control of the Company . Included in the $52 million reorganization related costs was $34 million related to certain executive changes. During the year ended December 31, 2015, in connection with entering into a Merger Agreement with Exor N.V. and EXOR S.p.A., the Company paid a termination fee and reimbursement of expenses of $315 million to Axis Capital Holdings Limited for terminating an a malgamation agreement previously entered into in January 2015. The Company also expensed $71 million of other transaction and reorganization related costs in addition to $25 million pursuant to an earn-out agreement with former shareholders of Presidio. |
Subsequent Events (Notes)
Subsequent Events (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 22. Subsequent Events On March 13, 2018, the Company's Board of Directors declared the payment of dividends on common shares of $48 million . |
SCHEDULE I - Consolidated Summa
SCHEDULE I - Consolidated Summary of Investments Other Than Investments in Related Parties | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Consolidated Summary of Investments Other Than Investments in Related Parties | PartnerRe Ltd. Consolidated Summary of Investments Other Than Investments in Related Parties at December 31, 2017 (Expressed in thousands of U.S. dollars) 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 $ 2,215,738 $ 2,205,964 $ 2,205,964 U.S. states, territories and municipalities 648,018 690,311 690,311 Non-U.S. sovereign government, supranational and government related 1,696,378 1,750,770 1,750,770 Corporate bonds 6,033,574 6,128,636 6,128,636 Asset-backed securities 46,946 51,703 51,703 Residential mortgage-backed securities 1,835,171 1,822,725 1,822,725 Other mortgage-backed securities 4,744 4,750 4,750 Fixed maturities 12,480,569 12,654,859 12,654,859 Equities Banks, trust and insurance companies 27,154 40,602 40,602 Industrial, miscellaneous and all other 540,694 597,994 597,994 Equities 567,848 638,596 638,596 Short-term investments 4,394 4,400 4,400 Other invested assets (3) 639,572 639,572 Total $ 13,937,427 $ 13,937,427 (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 $746 million . |
SCHEDULE II - Condensed Financi
SCHEDULE II - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information of Parent Company Only | PartnerRe Ltd. Condensed Balance Sheets—Parent Company Only (Expressed in thousands of U.S. dollars, except parenthetical share and per share data) December 31, 2017 December 31, 2016 Assets Fixed maturities, at fair value (amortized cost: 2017, $52,406; 2016, $78,104) $ 51,748 $ 77,170 Cash and cash equivalents 26,681 23,150 Investments in subsidiaries 8,991,358 8,558,696 Intercompany loans and balances receivable 1,135,749 700,965 Other 4,246 4,394 Total assets $ 10,209,782 $ 9,364,375 Liabilities Intercompany loans and balances payable (1) $ 3,435,693 $ 2,652,060 Accounts payable, accrued expenses and other 28,977 24,403 Total liabilities 3,464,670 2,676,463 Shareholders’ Equity Common shares (par value $0.00000001; issued: 100,000,000 shares) — — Preferred shares (par value $1.00; issued and outstanding: 28,169,062 shares; aggregate liquidation value: $704,227) 28,169 28,169 Additional paid-in capital 2,396,530 2,396,530 Accumulated other comprehensive loss (90,281 ) (74,569 ) Retained earnings 4,410,694 4,337,782 Total shareholders’ equity 6,745,112 6,687,912 Total liabilities and shareholders’ equity $ 10,209,782 $ 9,364,375 (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 million aggregate principal amount of 6.440% Fixed-to-Floating Rate Junior Subordinated 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 B, indirect 100% owned finance subsidiary of the parent, and PartnerRe Finance Ireland DAC, direct 100% owned subsidiary of the parent, related to the issuance of th e 5.500% senior notes and 1.250% senior notes, respectively. 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, 2017 December 31, 2016 December 31, 2015 Revenues Net investment income $ 1,890 $ 2,690 $ 3,516 Interest income on intercompany loans 12,201 12,109 12,295 Net realized and unrealized investment gains (losses) 91 2,993 (1,104 ) Other income 8,418 2,483 — Total revenues 22,600 20,275 14,707 Expenses Other expenses 40,131 116,758 435,404 Interest expense on intercompany loans 12,085 7,016 6,243 Net foreign exchange gains (losses) 35,753 (10,788 ) (3,199 ) Total expenses 87,969 112,986 438,448 Loss before equity in net income of subsidiaries (65,369 ) (92,711 ) (423,741 ) Equity in net income of subsidiaries 329,390 540,019 528,122 Net income 264,021 447,308 104,381 Preferred dividends 46,416 55,043 56,735 Loss on redemption of preferred shares — 4,908 — Net income available to common shareholders $ 217,605 $ 387,357 $ 47,646 Comprehensive income Net income $ 264,021 $ 447,308 $ 104,381 Total other comprehensive (loss) income, net of tax (15,712 ) 8,714 (49,200 ) Comprehensive income $ 248,309 $ 456,022 $ 55,181 PartnerRe Ltd. Condensed Statements of Cash Flows—Parent Company Only (Expressed in thousands of U.S. dollars) For the year ended December 31, 2017 December 31, 2016 December 31, 2015 Cash flows from operating activities Net income $ 264,021 $ 447,308 $ 104,381 Adjustments to reconcile net income to net cash used in operating activities: Equity in net income of subsidiaries (329,390 ) (540,019 ) (528,122 ) Other, net 25,239 11,205 32,725 Net cash used in operating activities (40,130 ) (81,506 ) (391,016 ) Cash flows from investing activities Advances to/from subsidiaries, net 11,138 (167,254 ) 97,532 Net issue of intercompany loans receivable and payable — 542,193 5,955 Sales and redemptions of fixed maturities 40,379 99,888 16,818 Purchases of fixed maturities (16,414 ) (7,839 ) (25,758 ) Dividends received from subsidiaries — — 418,789 Other, net 414 (2,408 ) 13,292 Net cash provided by investing activities 35,517 464,580 526,628 Cash flows from financing activities Cash dividends paid to common and preferred shareholders (1) — (240,725 ) (47,582 ) Reissuance of treasury shares and issuance of common shares, net of taxes paid — — 7,996 Redemption of preferred shares — (149,523 ) — Reissuance of treasury shares, net of taxes — 10,965 — Settlement of share-based awards upon change in control — (75,531 ) — Net cash used in financing activities — (454,814 ) (39,586 ) Effect of foreign exchange rate changes on cash 8,144 55 (1,562 ) Increase (decrease) in cash and cash equivalents 3,531 (71,685 ) 94,464 Cash and cash equivalents—beginning of year 23,150 94,835 371 Cash and cash equivalents—end of year $ 26,681 $ 23,150 $ 94,835 (1) During the years ended December 31, 2017 , 2016 and 2015 , dividends paid to common and preferred shareholders of $191 million , $251 million and $143 million , respectively, and the repurchase of common shares of $71 million for 2015 were paid by a Bermuda subsidiary on behalf of the parent and have therefore 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, 2017 | |
Supplementary Insurance Information [Abstract] | |
Supplementary Insurance Information, for Insurance Companies Disclosure [Text Block] | PartnerRe Ltd. Supplementary Insurance Information For the years ended December 31, 2017 , 2016 and 2015 (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) Premiums Written 2017 Non-life $ 493,196 $ 9,710,457 $ 1,795,103 $ — $ 3,688,158 $ N/A $ 2,574,769 $ 984,519 $ 104,454 $ 3,775,905 Life and Health 179,111 — 23,896 2,490,474 1,336,823 59,895 1,266,213 135,254 61,026 1,344,021 Corporate and Other — — — — — 342,176 — — 182,918 — Total $ 672,307 $ 9,710,457 $ 1,818,999 $ 2,490,474 $ 5,024,981 $ 402,071 $ 3,840,982 $ 1,119,773 $ 348,398 $ 5,119,926 2016 Non-life $ 439,195 $ 8,985,434 $ 1,608,880 $ — $ 3,852,336 $ N/A $ 2,320,820 $ 1,055,638 $ 228,806 $ 3,836,654 Life and Health 158,044 — 14,916 1,984,096 1,117,260 57,664 927,271 130,964 66,003 318,052 Corporate and Other — — — — — 353,200 — — 177,096 — Total $ 597,239 $ 8,985,434 $ 1,623,796 $ 1,984,096 $ 4,969,596 $ 410,864 $ 3,248,091 $ 1,186,602 $ 471,905 $ 4,154,706 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 (1) Because the Company does not manage its assets by segment, net investment income is not allocated to the Non-life business 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 business and Life and Health segment. Other expenses included in Corporate and Other represent corporate expenses and other expenses related to the Company’s insurance-linked securities and strategic investments. |
SCHEDULE IV - Reinsurance
SCHEDULE IV - Reinsurance | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 , 2016 and 2015 (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 2017 Life reinsurance in force $ — $ 15,136,473 $ 295,171,940 $ 280,035,467 105 % Premiums earned Life $ — $ 18,094 $ 944,752 $ 926,658 102 % Accident and health 105,634 37,150 341,681 410,165 83 % P&C 156,126 391,321 3,923,353 3,688,158 106 % Total premiums $ 261,760 $ 446,565 $ 5,209,786 $ 5,024,981 104 % 2016 Life reinsurance in force $ — $ 1,930,291 $ 167,198,163 $ 165,267,872 101 % Premiums earned Life $ — $ 4,695 $ 778,754 $ 774,059 101 % Accident and health 89,623 46,568 300,145 343,200 87 % P&C 161,869 322,972 4,013,440 3,852,337 104 % Total premiums $ 251,492 $ 374,235 $ 5,092,339 $ 4,969,596 102 % 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 % P&C 163,042 238,363 4,134,986 4,059,665 102 % Total premiums $ 252,577 $ 301,143 $ 5,317,744 $ 5,269,178 101 % |
SCHEDULE VI - Supplemental Info
SCHEDULE VI - Supplemental Information Concerning Property-Casualty Insurance Operations | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 , 2016 and 2015 (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 2017 $ 493,196 $ 9,710,457 $ 1,795,103 $ 3,688,158 $ 2,574,769 $ 984,519 $ 2,675,530 $ 3,775,905 2016 439,195 8,985,434 1,608,880 3,852,336 2,320,820 1,055,638 2,262,916 3,836,654 2015 449,216 9,064,711 1,629,537 4,059,665 2,192,999 1,063,685 2,422,603 4,022,067 |
Significant Accounting Polici35
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
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. |
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: • Non-life reserves; • Life and health reserves; • Gross and net premiums written and net premiums earned; • Recoverability of deferred acquisition costs; • Recoverability of deferred tax assets; • Valuation of certain investments that are measured using significant unobservable inputs; and • Valuation of goodwill and intangible assets. |
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 | The reserves for non-life business include 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 life and health reserves have been established based upon information reported by ceding companies, supplemented by the Company’s actuarial estimates, which for life include 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 non-life and life and health reserves. |
Deferred Acquisition Costs | Acquisition costs, comprising 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 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. The Company establishes a premium deficiency reserve to the extent the deferred acquisition costs are insufficient to cover the excess of expected losses and loss expenses, settlement costs and deferred acquisition costs over the related unearned premiums. 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 for the Company’s short-duration contracts. Actual and anticipated loss experience, together with the present value of future gross premiums, the present value of future benefits, and 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) | 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. 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). However, 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 in losses and loss expenses 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 | 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 | The Company elects the fair value option for its fixed maturities, short-term investments, equities and certain other invested assets (except for 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 or 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. Short-term investments comprise securities with a maturity greater than three months but less than one year from the date of purchase. Investments in real estate are recorded at cost less accumulated depreciation. Real estate assets held for investment are reviewed for impairment at least annually, or more frequently when events or changes in circumstances indicate the carrying value may not be recoverable and exceeds its estimated fair value. Other invested assets consist primarily of investments in non-publicly traded companies, private placement equity and fixed maturity investments, corporate loans, derivative financial instruments and other specialty asset classes. Non-publicly traded entities in which the Company has significant influence, including 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 (typically more than 3 to 5%), are accounted for using either the equity method or the fair value option. Corporate loans are recorded under the fair value option. The remaining other invested assets are recorded at fair value or cost depending on the nature of the 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, rental income on investments in real estate as well as 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 or 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 | 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 or losses in the Consolidated Statements of Operations. |
Cash and Cash Equivalents | Cash equivalents are carried at fair value and include fixed income securities that, from the date of purchase, have a maturity of three months or less. |
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, while any excess of the fair value of net assets acquired over the purchase price is recorded as a gain in the Consolidated Statements of Operations. All costs associated with an acquisition are expensed as incurred. |
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. In 2016, the Company changed its annual impairment testing date from September 30 to December 31, primarily due to the key inputs and assumptions used to assess the fair value of reporting units being based on the Company’s annual business plan which is approved by the Board in November each year. |
Intangible Assets | Intangible assets represent the fair value adjustments related to non-life reserves, fair value of life business acquired, fair values of non-life renewal rights and customer relationships and U.S. licenses arising from acquisitions. Definite-lived intangible assets are amortized over their useful lives and the amortization expense is recorded 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. In 2016, the Company changed its annual impairment testing date from October 1 to December 31 to align with the goodwill impairment testing date. 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 | 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 | 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 or losses on certain hedged items in net foreign exchange gains or losses in the Consolidated Statements of Operations (see Note 2(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 or 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 or losses in the Consolidated Statements of Operations. 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 or 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 or losses in the Consolidated Statements of Operations. |
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 | The Company is involved in the normal course of business with variable interest entities (VIEs). An assessment is performed as of the date the Company becomes initially involved in the VIE followed by a reassessment upon certain events related to its involvement in the VIE. The Company consolidates a VIE when it is the primary beneficiary having a controlling financial interest as a result of having the power to direct the activities that most significantly impact the economic performance of the VIE and the obligation to absorb losses, or right to receive benefits, that could potentially be significant to the VIE. |
Segment Reporting | Effective July 1, 2016, the Company monitors the performance of its operations in three segments: Property & Casualty (P&C), Specialty, and Life and Health (previously Non-life, Life and Health, and Corporate and Other). Segments represent markets that are reasonably homogeneous in terms of client types, buying patterns, underlying risk patterns or approach to risk management. Since the Company does not manage its assets by segment, net investment income is not allocated to the P&C and Specialty segments. 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 P&C, Specialty and Life and Health segments: net realized and unrealized investment gains or losses, interest expense, loss on redemption of debt, amortization of intangible assets, net foreign exchange gains or losses, income tax expense or benefit and interest in earnings and losses of equity method investments. These items are included in the Corporate and Other component, which is comprised of the Company’s investment and corporate activities, including other expenses. |
Recent Accounting Pronouncements | In August 2017, the Financial Accounting Standards Board (FASB) issued updated guidance on accounting for hedging activities. This update expands and refines hedge accounting for both nonfinancial and financial risk components and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The amendments also make certain targeted improvements to simplify the application of hedge accounting guidance and ease the administrative burden of hedge documentation requirements and for assessing hedge effectiveness. The guidance is effective for annual periods beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this guidance on its Consolidated Financial Statements and disclosures. In April 2017, the FASB issued updated guidance on the accounting for goodwill impairment. This update removes the second step of the goodwill impairment test and requires entities to apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment of goodwill impairment. The guidance is effective for annual impairment tests performed after December 15, 2019, with early adoption permitted. The Company does not expect the adoption of this guidance to have a significant impact on its Consolidated Financial Statements and disclosures. In March 2017, the FASB issued updated guidance on presentation of net periodic pension cost and net periodic postretirement benefit cost. This update requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the employees during the period. It also requires the other components of net periodic pension cost and net periodic postretirement benefit cost to be presented in income separately from the service cost component. Additionally, only the service cost component is eligible for capitalization, when applicable. The guidance is effective for annual periods beginning after December 15, 2017, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this guidance on its Consolidated Financial Statements and disclosures. In February 2016, the FASB issued updated guidance on the accounting for leases. This update requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous guidance and expands required disclosures. The guidance is effective for annual periods beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this guidance on its Consolidated Financial Statements and disclosures. In August 2016, the FASB issued updated guidance on the classification of certain cash receipts and payments. This update addresses the presentation and classification of certain cash receipts and cash payments in the statement of cash flows. The guidance is effective for fiscal periods beginning after December 15, 2017, with early adoption permitted. The adoption of this guidance for the year ended December 31, 2018 is not expected to have a significant impact on the Company’s Consolidated Financial Statements. In October 2016, the FASB issued updated guidance on income taxes with respect to intra-entity transfers of assets. This update requires recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. The guidance is effective for fiscal periods beginning after December 15, 2017, with early adoption permitted. The adoption of this guidance for the year ended December 31, 2018 is not expected to have a significant impact on the Company’s Consolidated Financial Statements. |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Financial instruments measured at fair value and categorized between Levels 1, 2 and 3 | At December 31, 2017 and 2016 , 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, 2017 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 $ — $ 2,205,964 $ — $ 2,205,964 U.S. states, territories and municipalities — 561,505 128,806 690,311 Non-U.S. sovereign government, supranational and government related — 1,750,770 — 1,750,770 Corporate bonds — 6,128,636 — 6,128,636 Asset-backed securities — 30,965 20,738 51,703 Residential mortgage-backed securities — 1,822,725 — 1,822,725 Other mortgage-backed securities — 4,750 — 4,750 Fixed maturities $ — $ 12,505,315 $ 149,544 $ 12,654,859 Short-term investments $ — $ 4,400 $ — $ 4,400 Equities Finance $ 11,115 $ 1 $ 21,926 $ 33,042 Industrials 16,534 — — 16,534 Technology 1,990 — 10,961 12,951 Insurance — 7,558 — 7,558 Communications 3,215 — — 3,215 Consumer cyclical 2,170 — — 2,170 Consumer noncyclical 897 — — 897 Other 3,493 — — 3,493 Mutual funds and exchange traded funds — — 558,736 558,736 Equities $ 39,414 $ 7,559 $ 591,623 $ 638,596 Other invested assets Derivative assets Foreign exchange forward contracts $ — $ 8,559 $ — $ 8,559 Futures contracts 3,367 — — 3,367 Insurance-linked securities — — 11,985 11,985 Total return swaps — — 2,505 2,505 TBAs — 391 — 391 Other Corporate loans — — 205,331 205,331 Notes and loan receivables and notes securitization — 3,425 108,563 111,988 Private equities — — 331,932 331,932 Derivative liabilities Foreign exchange forward contracts — (20,328 ) — (20,328 ) Total return swaps — — (3,269 ) (3,269 ) Interest rate swaps — (12,298 ) — (12,298 ) TBAs — (591 ) — (591 ) Other invested assets $ 3,367 $ (20,842 ) $ 657,047 $ 639,572 Funds held–directly managed U.S. government and government sponsored enterprises $ — $ 161,023 $ — $ 161,023 Non-U.S. sovereign government, supranational and government related — 95,812 — 95,812 Corporate bonds — 41,090 — 41,090 Short-term investments — 453 — 453 Other invested assets — — 2,067 2,067 Funds held–directly managed $ — $ 298,378 $ 2,067 $ 300,445 Total $ 42,781 $ 12,794,810 $ 1,400,281 $ 14,237,872 December 31, 2016 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 $ — $ 3,541,433 $ — $ 3,541,433 U.S. states, territories and municipalities — 560,728 123,827 684,555 Non-U.S. sovereign government, supranational and government related — 1,136,034 — 1,136,034 Corporate — 5,705,522 — 5,705,522 Asset-backed securities — 24,709 99,351 124,060 Residential mortgage-backed securities — 2,240,897 — 2,240,897 Fixed maturities $ — $ 13,209,323 $ 223,178 $ 13,432,501 Short-term investments $ — $ 21,697 $ — $ 21,697 Equities Finance $ 973 $ 4,960 $ 20,934 $ 26,867 Technology — — 9,800 9,800 Insurance — 1,800 — 1,800 Consumer noncyclical 6 — — 6 Mutual funds and exchange traded funds — — 153 153 Equities $ 979 $ 6,760 $ 30,887 $ 38,626 Other invested assets Derivative assets Foreign exchange forward contracts $ — $ 5,263 $ — $ 5,263 Insurance-linked securities — — 10,130 10,130 Total return swaps — — 1,989 1,989 TBAs — 1,369 — 1,369 Other Notes and loan receivables and notes securitization — 1,500 141,693 143,193 Private equities — — 305,729 305,729 Derivative liabilities Foreign exchange forward contracts — (7,142 ) — (7,142 ) Insurance-linked securities — — (97 ) (97 ) Total return swaps — — (3,217 ) (3,217 ) Interest rate swaps — (13,403 ) — (13,403 ) TBAs — (185 ) — (185 ) Other invested assets $ — $ (12,598 ) $ 456,227 $ 443,629 Funds held–directly managed U.S. government and government sponsored enterprises $ — $ 171,975 $ — $ 171,975 Non-U.S. sovereign government, supranational and government related — 104,512 — 104,512 Corporate bonds — 71,365 — 71,365 Short-term investments — 1,603 — 1,603 Other invested assets — — 4,540 4,540 Funds held–directly managed $ — $ 349,455 $ 4,540 $ 353,995 Total $ 979 $ 13,574,637 $ 714,832 $ 14,290,448 |
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, 2017 and 2016 , were as follows (in thousands of U.S. dollars): For the year ended 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 $ 123,827 $ 5,804 $ — $ (825 ) $ — $ 128,806 $ 5,804 Asset-backed securities 99,351 3,300 1,360 (83,273 ) — 20,738 1,316 Fixed maturities $ 223,178 $ 9,104 $ 1,360 $ (84,098 ) $ — $ 149,544 $ 7,120 Equities Finance $ 20,934 $ 992 $ — $ — $ — $ 21,926 $ 992 Technology 9,800 1,611 — (450 ) — 10,961 1,611 Mutual funds and exchange traded funds 153 51,476 507,250 (143 ) — 558,736 51,486 Equities $ 30,887 $ 54,079 $ 507,250 $ (593 ) $ — $ 591,623 $ 54,089 Other invested assets Derivatives, net $ 8,805 $ 5,977 $ 1,793 $ (5,354 ) $ — $ 11,221 $ 3,231 Corporate loans — (709 ) 206,700 (660 ) — 205,331 (695 ) Notes and loan receivables and notes securitization 141,693 2,744 2,040 (37,914 ) — 108,563 6,977 Private equities 305,729 29,942 17,572 (21,311 ) — 331,932 27,533 Other invested assets $ 456,227 $ 37,954 $ 228,105 $ (65,239 ) $ — $ 657,047 $ 37,046 Funds held–directly managed $ 4,540 $ (516 ) $ 495 $ (2,452 ) $ — $ 2,067 $ (629 ) Total $ 714,832 $ 100,621 $ 737,210 $ (152,382 ) $ — $ 1,400,281 $ 97,626 (1) Purchases and issuances of derivatives include issuances of $2 million . (2) Settlements and sales of equities include sales of $1 million . For the year ended Balance at beginning of year Realized and unrealized investment (losses) gains 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 $ 138,847 $ (14,240 ) $ — $ (780 ) $ — $ 123,827 $ (14,240 ) Asset-backed securities 369,699 21 191,048 (461,417 ) — 99,351 (4,628 ) Fixed maturities $ 508,546 $ (14,219 ) $ 191,048 $ (462,197 ) $ — $ 223,178 $ (18,868 ) Equities Finance $ 22,760 $ 3,438 $ — $ (5,264 ) $ — $ 20,934 $ 3,211 Technology 8,207 1,143 450 — — 9,800 1,143 Communications 1,985 209 — (2,194 ) — — 55 Mutual funds and exchange traded funds 4,604 (242 ) — (4,209 ) — 153 14 Equities $ 37,556 $ 4,548 $ 450 $ (11,667 ) $ — $ 30,887 $ 4,423 Other invested assets Derivatives, net $ 5,351 $ (3,314 ) $ 2,256 $ 4,512 $ — $ 8,805 $ (1,772 ) Notes and loan receivables and notes securitization 125,922 2,599 71,828 (58,656 ) — 141,693 2,278 Annuities and residuals 8,436 262 — (8,698 ) — — — Private equities 71,298 6,764 236,022 (8,355 ) — 305,729 2,827 Other invested assets $ 211,007 $ 6,311 $ 310,106 $ (71,197 ) $ — $ 456,227 $ 3,333 Funds held–directly managed $ 10,146 $ 1,698 $ 1,011 $ (8,315 ) $ — $ 4,540 $ 1,678 Total $ 767,255 $ (1,662 ) $ 502,615 $ (553,376 ) $ — $ 714,832 $ (9,434 ) (1) There were no issuances included in the purchases and issuances amounts above. (2) Settlements and sales of fixed maturities, equities, other invested assets and funds held – directly managed include sales of $276 million , $12 million , $43 million and $8 million , respectively. |
Summary of significant unobservable inputs used in the valuation of financial instruments | The significant unobservable inputs used in the valuation of financial instruments measured at fair value using Level 3 inputs at December 31, 2017 and 2016 were as follows (fair value in thousands of U.S. dollars): December 31, 2017 Fair value Valuation techniques Unobservable inputs Range (Weighted average) Fixed maturities U.S. states, territories and municipalities $ 128,806 Discounted cash flow Credit spreads 0.2% – 10.2% (4.7%) Asset-backed securities 20,738 Discounted cash flow Credit spreads 4.7% (4.7%) Equities Finance 21,926 Weighted market comparables Net income multiple 16.7 (16.7) Tangible book value multiple 2.0 (2.0) Liquidity discount 25.0% (25.0%) Comparable return 4.1% (4.1%) Technology 10,961 Reported market value Tangible book value multiple 100.0% (100.0%) Other invested assets Total return swaps, net (764 ) Discounted cash flow Credit spreads 2.4% – 30.8% (18.5%) Insurance-linked securities – longevity swaps 11,962 Discounted cash flow Credit spreads 1.7% (1.7%) Notes and loan receivables 102,907 Discounted cash flow Credit spreads 3.9% – 39.3% (6.1%) Notes and loan receivables 4,265 Discounted cash flow Credit spreads 17.5% (17.5%) Gross revenue/fair value 1.1 (1.1) Notes securitization 1,391 Discounted cash flow Credit spreads 1.5% (1.5%) Private equity – direct 3,011 Discounted cash flow and market multiples Tangible book value multiple 0.8 (0.8) Recoverability of intangible assets 0% (0%) Private equity funds 12,559 Reported market value Net asset value, as reported 100.0% (100.0%) Market adjustments -0.7% (-0.7%) Private equity – other 24,241 Discounted cash flow Effective yield 3.8% (3.8%) Funds held–directly managed Other invested assets 2,067 Reported market value Net asset value, as reported 100.0% (100.0%) Market adjustments 0% (0%) December 31, 2016 Fair value Valuation techniques Unobservable inputs Range (Weighted average) Fixed maturities U.S. states, territories and municipalities $ 123,827 Discounted cash flow Credit spreads 1.5% – 10.5% (6.3%) Asset-backed securities 99,351 Discounted cash flow Credit spreads 4.1% – 18.5% (14.9%) Equities Finance 20,934 Weighted market comparables Net income multiple 20.3 (20.3) Tangible book value multiple 1.9 (1.9) Liquidity discount 25.0% (25.0%) Comparable return 36.9% (36.9%) Technology 9,800 Reported market value Tangible book value multiple 100.0% (100.0%) Other invested assets Total return swaps, net (1,228 ) Discounted cash flow Credit spreads 2.9% – 29.4% (19.3%) Insurance-linked securities – longevity swaps 9,218 Discounted cash flow Credit spreads 2.6% (2.6%) Notes and loan receivables 131,176 Discounted cash flow Credit spreads 4.2% – 24.4% (5.2%) Notes and loan receivables 8,953 Discounted cash flow Credit spreads 17.5% (17.5%) Gross revenue/fair value 1.2 (1.2) Notes securitization 1,564 Discounted cash flow Credit spreads 3.3% (3.3%) Private equity – direct 5,019 Discounted cash flow and weighted market comparables Net income multiple 8.6 (8.6) Tangible book value multiple 2.0 (2.0) Recoverability of intangible assets 0% (0%) Private equity funds 11,064 Reported market value Net asset value, as reported 100.0% (100.0%) Market adjustments -0.7% (-0.7%) Private equity – other 29,949 Discounted cash flow Effective yield 5.8% (5.8%) Funds held–directly managed Other invested assets 4,540 Reported market value Net asset value, as reported 100.0% (100.0%) Market adjustments 0% (0%) |
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, 2017 , 2016 and 2015 were as follows (in thousands of U.S. dollars): 2017 2016 2015 Fixed maturities and short-term investments $ 124,033 $ (90,334 ) $ (276,776 ) Equities 60,460 (14,850 ) (187,561 ) Other invested assets 28,144 11,066 (1,835 ) Funds held–directly managed (5,612 ) (721 ) (6,323 ) Total $ 207,025 $ (94,839 ) $ (472,495 ) |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments [Abstract] | |
Net Realized and Unrealized Investment (Losses) Gains | The components of the net realized and unrealized investment gains (losses) for the years ended December 31, 2017 , 2016 and 2015 were as follows (in thousands of U.S. dollars): 2017 2016 2015 Net realized investment gains on fixed maturities and short-term investments $ 28,632 $ 96,994 $ 66,296 Net realized investment (losses) gains on equities (4,052 ) 157 137,609 Net realized investment (losses) gains on other invested assets (3,217 ) 5,365 (33,317 ) Net realized investment gains on funds held–directly managed 508 1,355 536 Net realized investment gains 21,871 103,871 171,124 Change in net unrealized investment gains or losses on fixed maturities and short-term investments 124,033 (90,334 ) (276,776 ) Change in net unrealized investment gains or losses on equities 60,460 (14,850 ) (187,561 ) Change in unrealized investment gains or losses on other invested assets 32,790 25,488 844 Change in net unrealized investment gains or losses on funds held–directly managed (5,567 ) (676 ) (6,163 ) Net other realized and unrealized investment gains or losses (1,096 ) 2,767 1,053 Change in net unrealized investment gains or losses 210,620 (77,605 ) (468,603 ) Net realized and unrealized investment gains (losses) $ 232,491 $ 26,266 $ (297,479 ) |
Net investment income | The components of net investment income for the years ended December 31, 2017 , 2016 and 2015 were as follows (in thousands of U.S. dollars): 2017 2016 2015 Fixed maturities $ 382,676 $ 395,831 $ 425,541 Short-term investments and cash and cash equivalents 5,363 1,915 854 Equities (12 ) 4,382 30,739 Funds held and other 29,068 34,161 27,406 Funds held–directly managed 7,742 9,993 11,676 Investment expenses (22,766 ) (35,418 ) (46,432 ) Net investment income $ 402,071 $ 410,864 $ 449,784 |
Net Payable for Securities Purchased | Included within Accounts payable, accrued expenses and other in the Consolidated Balance Sheets at December 31, 2017 and 2016 were amounts of gross receivable balances for securities sold and gross payable balances for securities purchased as follows (in thousands of U.S. dollars): December 31, 2017 December 31, 2016 Receivable for securities sold $ 144,224 $ 52,189 Payable for securities purchased (181,991 ) (648,813 ) Net payable for securities purchased $ (37,767 ) $ (596,624 ) |
Summarized financial information | The summarized balance sheet and income statement of Almacantar S.A. is as follows: December 31, 2017 December 31, 2016 Current assets $ 906,085 $ 698,835 Noncurrent assets $ 1,877,519 $ 1,510,632 Current liabilities $ 553,219 $ 372,677 Noncurrent liabilities $ 690,935 $ 624,970 For the year ended December 31, 2017 December 31, 2016 Revenues $ 130,333 $ 24,646 Operating profit $ 190,613 $ (47,082 ) Net income $ 213,241 $ (37,059 ) |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair values and notional values of derivatives | The net fair values and the related net notional values of derivatives included in the Company’s Consolidated Balance Sheets at December 31, 2017 and 2016 were as follows (in thousands of U.S. dollars): Asset derivatives at fair value Liability derivatives at fair value Net derivatives December 31, 2017 Fair value Net notional exposure Derivatives not designated as hedges Foreign exchange forward contracts $ 8,559 $ (20,328 ) $ (11,769 ) $ 2,862,927 Futures contracts 3,367 — 3,367 917,696 Insurance-linked securities (1) 11,985 — 11,985 78,879 Total return swaps 2,505 (3,269 ) (764 ) 42,147 Interest rate swaps (2) — (12,298 ) (12,298 ) 192,215 TBAs 391 (591 ) (200 ) 501,405 Total derivatives not designated as hedges $ 26,807 $ (36,486 ) $ (9,679 ) Asset Liability Net derivatives December 31, 2016 Fair value Net notional Derivatives not designated as hedges Foreign exchange forward contracts $ 5,263 $ (7,142 ) $ (1,879 ) $ 1,929,033 Insurance-linked securities (1) 10,130 (97 ) 10,033 145,011 Total return swaps 1,989 (3,217 ) (1,228 ) 42,304 Interest rate swaps (2) — (13,403 ) (13,403 ) 194,585 TBAs 1,369 (185 ) 1,184 386,500 Total derivatives not designated as hedges $ 18,751 $ (24,044 ) $ (5.293 ) (1) Insurance-linked securities include longevity swaps for which the notional amounts are not reflective of the overall potential exposure of the swaps. The net notional exposure above included the Company's probable maximum loss at December 31, 2016 and, for December 31, 2017, the Company's best estimate of the present value of future expected claims. (2) The Company enters into interest rate swaps to mitigate notional exposures on certain total return swaps and certain fixed maturities. The net notional exposure for interest rate swaps above relates to fixed maturities. |
Gains and losses for derivatives not designated as hedges | The gains and losses in the Consolidated Statements of Operations for derivatives not designated as hedges for the years ended December 31, 2017 , 2016 and 2015 were as follows (in thousands of U.S. dollars): 2017 2016 2015 Foreign exchange forward contracts $ (41,776 ) $ (53,437 ) $ (29,217 ) Foreign currency option contracts — 2,583 (3,472 ) Total included in net foreign exchange losses $ (41,776 ) $ (50,854 ) $ (32,689 ) Futures contracts $ (11,683 ) $ (5,195 ) $ (32,004 ) Insurance-linked securities (563 ) 3,813 (1,556 ) Total return swaps 464 (1,096 ) 1,390 Interest rate swaps 1,105 10,981 (8,101 ) TBAs 4,742 6,366 2,877 Other — — 2,493 Total included in net realized and unrealized investment gains (losses) $ (5,935 ) $ 14,869 $ (34,901 ) Total derivatives not designated as hedges $ (47,711 ) $ (35,985 ) $ (67,590 ) |
Gross and net fair values of derivatives subject to offsetting | The gross and net fair values of derivatives that are subject to offsetting in the Consolidated Balance Sheets at December 31, 2017 and 2016 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, 2017 Gross amounts recognized (1) Financial instruments Cash collateral received/pledged Net amount Total derivative assets $ 26,807 $ — $ 26,807 $ (1,142 ) $ (43,943 ) $ (18,278 ) Total derivative liabilities $ (36,486 ) $ — $ (36,486 ) $ 1,142 $ 25,389 $ (9,955 ) December 31, 2016 Total derivative assets $ 18,751 $ — $ 18,751 $ (794 ) $ (34,120 ) $ (16,163 ) Total derivative liabilities $ (24,044 ) $ — $ (24,044 ) $ 794 $ 22,923 $ (327 ) (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, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and intangible assets rollforward | The Company’s goodwill related to the acquisitions of PartnerRe SA, Winterthur Re, Paris Re and Presidio and intangible assets related to the acquisitions of Paris Re, Presidio and Aurigen at December 31, 2017 and 2016 were as follows (in thousands of U.S. dollars): 2017 Goodwill Definite- lived intangible assets Indefinite- lived intangible asset Total intangible assets Balance at January 1 $ 456,380 $ 99,742 $ 7,350 $ 107,092 Acquired during the year — 75,583 2,205 77,788 Intangible assets amortization n/a (24,646 ) n/a (24,646 ) Balance at December 31 $ 456,380 $ 150,679 $ 9,555 $ 160,234 2016 Goodwill Definite- lived intangible assets Indefinite- lived intangible asset Total intangible assets Balance at January 1 $ 456,380 $ 125,661 $ 7,350 $ 133,011 Intangible assets amortization n/a (25,919 ) n/a (25,919 ) Balance at December 31 $ 456,380 $ 99,742 $ 7,350 $ 107,092 n/a: Not applicable |
Carrying value and accumulated amortization of intangible assets | The gross carrying value and accumulated amortization of intangible assets included in the Consolidated Balance Sheets at December 31, 2017 and 2016 were as follows (in thousands of U.S. dollars): December 31, 2017 December 31, 2016 Gross carrying value Accumulated amortization Net carrying value Gross carrying value Accumulated amortization Net carrying value Definite-lived intangible assets: Unpaid losses and loss expenses $ 191,196 $ 168,581 $ 22,615 $ 191,196 $ 157,842 $ 33,354 Renewal rights 48,163 27,909 20,254 48,163 23,404 24,759 Customer relationships 63,408 29,353 34,055 63,408 21,779 41,629 Life VOBA 75,583 1,828 73,755 — — — Total definite-lived intangible assets $ 378,350 $ 227,671 $ 150,679 $ 302,767 $ 203,025 $ 99,742 Indefinite-lived intangible asset: Insurance licenses 9,555 n/a 9,555 7,350 n/a 7,350 Total intangible assets $ 387,905 $ 227,671 $ 160,234 $ 310,117 $ 203,025 $ 107,092 n/a: Not applicable |
Allocation of goodwill by segment | The allocation of the goodwill to the Company’s segments at December 31, 2017 and 2016 was as follows (in thousands of U.S. dollars): Amount P&C segment $ 241,530 Specialty segment 196,047 Life and Health segment 18,803 Total $ 456,380 |
Estimated future amortization expense | The estimated amortization expense for each of the five succeeding fiscal years related to the Company’s definite-lived intangible assets was as follows (in thousands of U.S. dollars): Year Amount 2018 $ 23,351 2019 19,946 2020 12,395 2021 8,406 2022 8,499 Total $ 72,597 |
Non-life and Life and Health 40
Non-life and Life and Health Reserves (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] | |
Components of non-life reserves | The Company’s gross liability for non-life reserves reported by cedants (case reserves) and those estimated by the Company (ACRs and IBNR reserves) at December 31, 2017 and 2016 was as follows (in thousands of U.S. dollars): December 31, 2017 December 31, 2016 Case reserves $ 4,176,879 $ 3,883,926 ACRs 176,369 166,913 IBNR reserves 5,357,209 4,934,595 Non-life reserves $ 9,710,457 $ 8,985,434 |
Reconciliation of the beginning and ending gross and net liability for non-life reserves | The reconciliation of the beginning and ending gross and net liability for non-life reserves for the years ended December 31, 2017 , 2016 and 2015 was as follows (in thousands of U.S. dollars): 2017 2016 2015 Gross liability at beginning of year $ 8,985,434 $ 9,064,711 $ 9,745,806 Reinsurance recoverable at beginning of year 266,742 189,234 214,349 Net liability at beginning of year 8,718,692 8,875,477 9,531,457 Net incurred losses related to: Current year 3,022,926 2,997,394 3,023,704 Prior years (448,158 ) (676,574 ) (830,705 ) 2,574,768 2,320,820 2,192,999 Change in Paris Re Reserve Agreement (3,481 ) 5,518 (8,771 ) Net paid losses related to: Current year 396,927 331,785 250,720 Prior years 2,278,603 1,931,131 2,171,883 2,675,530 2,262,916 2,422,603 Effects of foreign exchange rate changes 407,328 (220,207 ) (417,605 ) Net liability at end of year 9,021,777 8,718,692 8,875,477 Reinsurance recoverable at end of year 688,680 266,742 189,234 Gross liability at end of year $ 9,710,457 $ 8,985,434 $ 9,064,711 |
Net favorable prior year loss development by segment | The net favorable prior year loss development for each of the Company’s Non-life segments for the years ended December 31, 2017 , 2016 and 2015 was as follows (in thousands of U.S. dollars): 2017 2016 2015 P&C $ 204,172 $ 389,672 $ 473,564 Specialty 243,986 286,902 357,141 Total net favorable prior year loss development $ 448,158 $ 676,574 $ 830,705 |
Reconciliation losses and loss expenses | The reconciliation of the beginning and ending gross and net liability for life and health reserves for the years ended December 31, 2017 and 2016 was as follows (in thousands of U.S. dollars): 2017 2016 Gross liability at beginning of period $ 1,984,096 $ 2,051,935 Reinsurance recoverable at beginning of period 31,372 42,773 Net liability at beginning of period 1,952,724 2,009,162 Liability acquired related to the acquisition of Aurigen 67,916 — Net incurred losses 1,266,214 927,271 Net losses paid (1,017,673 ) (844,156 ) Effects of foreign exchange rate changes 180,688 (139,553 ) Net liability at end of period 2,449,869 1,952,724 Reinsurance recoverable at end of period 40,605 31,372 Gross liability at end of period $ 2,490,474 $ 1,984,096 Losses and loss expenses in the Consolidated Statements of Operations for the years ended December 31, 2017 , 2016 and 2015 were comprised as follows (in thousands of U.S. dollars): 2017 2016 2015 Non-life $ 2,574,768 $ 2,320,820 $ 2,192,999 Life and Health 1,266,214 927,271 964,421 Losses and loss expenses $ 3,840,982 $ 3,248,091 $ 3,157,420 |
Incurred and paid claims development and average annual percentage payout of incurred claims by age, net of reinsurance | The information presented below for incurred and paid claims development for each of the years ended December 31, 2012 through 2016 and the average annual percentage payout of incurred claims by age, net of reinsurance, is presented as supplementary information and is unaudited. NET INCURRED LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - NON-LIFE For the year ended December 31, December 31, 2017 Accident year 2012 2013 2014 2015 2016 2017 Total of IBNR plus expected development on reported claims 2012 $ 2,685,454 $ 2,493,810 $ 2,336,917 $ 2,228,953 $ 2,196,626 $ 2,227,260 $ 156,038 2013 $ 2,925,140 $ 2,753,196 $ 2,573,105 $ 2,518,691 $ 2,483,294 $ 233,607 2014 2,882,914 2,664,647 2,551,470 2,518,203 319,931 2015 2,941,159 2,650,862 2,544,179 484,936 2016 2,978,955 2,743,531 771,217 2017 3,034,380 (1 ) 2,120,419 Total $ 15,550,847 $ 4,086,148 NET PAID LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - NON-LIFE For the year ended December 31, Accident year 2012 2013 2014 2015 2016 2017 2012 $ 290,902 $ 1,076,536 $ 1,466,177 $ 1,635,334 $ 1,739,820 $ 1,831,483 2013 $ 249,309 $ 1,320,171 $ 1,679,371 $ 1,883,432 $ 2,015,049 2014 310,960 1,338,380 1,648,748 1,860,577 2015 310,031 1,247,343 1,655,681 2016 333,673 1,402,948 2017 397,053 (1 ) Total $ 9,162,791 Net reserves for Accident Years and exposures included in the triangles $ 6,388,056 All outstanding liabilities before Accident Year 2012, net of reinsurance 2,070,569 Total outstanding liabilities for unpaid claims $ 8,458,625 AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - NON-LIFE Years 1 2 3 4 5 6 Non-life 12% 39% 15% 8% 5% 4% (1) The table above (and each of the three tables below for property, casualty and specialty) reflects losses incurred and paid losses translated to U.S. dollars at the exchange rate as of the balance sheet date whereas the losses and loss expenses in the Consolidated Statement of Operations reflected losses incurred at the average exchange rate for the period. NET INCURRED LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - PROPERTY For the year ended December 31, December 31, 2017 Accident year 2012 2013 2014 2015 2016 2017 Total of IBNR plus expected development on reported claims 2012 $ 681,580 $ 679,274 $ 600,278 $ 583,371 $ 567,870 $ 567,563 $ 15,272 2013 704,000 600,178 566,525 550,840 546,345 4,825 2014 532,197 486,918 464,515 461,719 6,259 2015 609,235 567,709 542,180 17,187 2016 741,002 696,494 53,275 2017 1,033,194 530,918 Total $ 3,847,495 $ 627,736 NET PAID LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - PROPERTY For the year ended December 31, Accident year 2012 2013 2014 2015 2016 2017 2012 $ 102,351 $ 368,126 $ 464,879 $ 500,313 $ 511,821 520,927 2013 91,935 351,048 456,511 491,978 510,813 2014 95,806 333,809 400,247 427,187 2015 97,678 365,650 456,828 2016 139,423 470,421 2017 225,385 Total $ 2,611,561 Net reserves for Accident Years and exposures included in the triangles $ 1,235,934 All outstanding liabilities before Accident Year 2012, net of reinsurance 201,339 Total outstanding liabilities for unpaid claims $ 1,437,273 AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - PROPERTY Years 1 2 3 4 5 6 Property 20% 48% 17% 6% 3% 2% NET INCURRED LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - CASUALTY For the year ended December 31, December 31, 2017 Accident year 2012 2013 2014 2015 2016 2017 Total of IBNR plus expected development on reported claims 2012 $ 701,087 $ 687,470 $ 659,934 $ 618,750 $ 600,969 $ 608,547 $ 102,999 2013 811,925 809,690 760,299 742,170 736,526 179,543 2014 912,442 889,241 869,428 874,583 252,944 2015 911,106 849,772 825,518 326,504 2016 866,772 818,954 426,472 2017 779,812 633,189 Total $ 4,643,940 $ 1,921,651 NET PAID LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - CASUALTY For the year ended December 31, Accident year 2012 2013 2014 2015 2016 2017 2012 $ 52,976 $ 138,628 $ 209,006 $ 282,401 $ 338,800 397,768 2013 51,808 162,355 271,242 353,313 424,092 2014 72,127 212,462 317,277 418,218 2015 68,544 191,076 304,876 2016 35,901 168,303 2017 63,798 Total $ 1,777,055 Net reserves for Accident Years and exposures included in the triangles $ 2,866,885 All outstanding liabilities before Accident Year 2012, net of reinsurance 1,679,085 Total outstanding liabilities for unpaid claims $ 4,545,970 AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - CASUALTY Years 1 2 3 4 5 6 Casualty 7% 15% 13% 12% 9% 10% NET INCURRED LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - SPECIALTY For the year ended December 31, December 31, 2017 Accident year 2012 2013 2014 2015 2016 2017 Total of IBNR plus expected development on reported claims 2012 $ 1,302,787 $ 1,127,066 $ 1,076,705 $ 1,026,832 $ 1,027,787 $ 1,051,150 $ 37,767 2013 1,409,215 1,343,328 1,246,281 1,225,681 1,200,423 49,239 2014 1,438,275 1,288,488 1,217,527 1,181,901 60,728 2015 1,420,818 1,233,381 1,176,481 141,245 2016 1,371,181 1,228,083 291,470 2017 1,221,374 956,312 Total $ 7,059,412 $ 1,536,761 NET PAID LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - SPECIALTY For the year ended December 31, Accident year 2012 2013 2014 2015 2016 2017 2012 $ 135,575 $ 569,782 $ 792,292 $ 852,620 $ 889,199 912,788 2013 105,566 806,768 951,618 1,038,141 1,080,144 2014 143,027 792,109 931,224 1,015,172 2015 143,809 690,617 893,977 2016 158,349 764,224 2017 107,870 Total $ 4,774,175 Net reserves for Accident Years and exposures included in the triangles $ 2,285,237 All outstanding liabilities before Accident Year 2012, net of reinsurance 190,145 Total outstanding liabilities for unpaid claims $ 2,475,382 AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - SPECIALTY Years 1 2 3 4 5 6 Specialty 11% 50% 15% 7% 3% 2% |
Reconciliation of net incurred and paid claims development to Non-life reserves | The reconciliation of the net incurred and paid claims development information above to the Non-life reserves in the Consolidated Balance Sheet at December 31, 2017 was as follows (in thousands of U.S. dollars): December 31, 2017 Total outstanding liability for unpaid claims Property $ 1,437,273 Casualty 4,545,970 Specialty 2,475,382 Total outstanding liabilities for unpaid claims $ 8,458,625 Other liabilities (1) 563,152 Net liability at end of year $ 9,021,777 Reinsurance recoverable on unpaid claims Property $ 453,656 Casualty 40,920 Specialty 194,105 Reinsurance recoverable at end of year $ 688,680 Gross liability at end of year $ 9,710,457 (1) Other liabilities included in the reconciliation relate primarily to the guaranteed reserves, described above, and unallocated loss expenses. |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Reinsurance Disclosures [Abstract] | |
Ceded reinsurance | Assumed, ceded and net amounts for the years ended December 31, 2017 , 2016 and 2015 were as follows (in thousands of U.S. dollars): Premiums Written Premiums Earned Losses and Loss Expenses 2017 Assumed $ 5,587,894 $ 5,471,546 $ 4,458,290 Ceded 467,968 446,565 617,308 Net $ 5,119,926 $ 5,024,981 $ 3,840,982 2016 Assumed $ 5,356,942 $ 5,343,831 $ 3,412,648 Ceded 403,472 374,235 164,557 Net $ 4,953,470 $ 4,969,596 $ 3,248,091 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 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Summary of debt outstanding | The debt outstanding and the carrying value recorded in the Consolidated Balance Sheets at December 31, 2017 and 2016 was comprised as follows (in thousands): December 31, 2017 December 31, 2016 Issuer Commitment Carrying Value Fair Value Carrying Value Fair Value Interest rate Issue Date Redemption or Maturity Date PartnerRe Finance A LLC $ 250,000 $ — $ — $ — $ — 6.875 % May 2008 redeemed November 1, 2016 PartnerRe Finance B LLC 500,000 500,000 534,179 500,000 547,145 5.500 % March 2010 June 1, 2020 PartnerRe Ireland Finance DAC € 750,000 884,824 882,717 773,883 753,499 1.250 % September 2016 September 15, 2026 $ 1,384,824 $ 1,416,896 $ 1,273,883 $ 1,300,644 PartnerRe Finance II Inc. $ 63,384 $ 70,989 61,271 $ 70,989 $ 66,817 see Note 1 November 2006 see Note 1 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Preferred shares | At December 31, 2017 and 2016 , the Company's issued and outstanding redeemable preferred shares, each with a par value of $1.00 per share, were as follows (in millions of U.S. dollars, except percentage amounts): Series F Series G Series H Series I Total Date of issuance February 2013 May 2016 May 2016 May 2016 Number of preferred shares outstanding 2,679,426 6,415,264 11,753,798 7,320,574 28,169,062 Annual dividend rate 5.875 % 6.5 % 7.25 % 5.875 % Underwriting discounts and commissions (1) $ 2.3 $ 5.4 $ 9.5 $ 6.4 $ 23.6 Aggregate liquidation value, at $25 per share $ 67.0 $ 160.4 $ 293.8 $ 183.0 $ 704.2 (1) Underwriting discounts and commissions represent the original amounts paid to issue Series D, E and F shares. These amounts were reallocated on a pro-rata basis between the previously issued and the newly issued shares as a result of the share exchange in May 2016 for $nil consideration described below. |
Noncontrolling interests (Table
Noncontrolling interests (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Noncontrolling Interest [Abstract] | |
Reconciliation of the beginning and ending balance of the noncontrolling interest | The reconciliation of the beginning and ending balance of the noncontrolling interests in Lorenz Re for the years ended December 31, 2016 and 2015 was as follows (in thousands of U.S. dollars): 2016 2015 Balance at January 1 $ 2,450 $ 55,501 Net income attributable to noncontrolling interests — 2,769 Distribution to noncontrolling interests (2,450 ) (55,820 ) Balance at December 31 $ — $ 2,450 |
Dividend Restrictions and Sta45
Dividend Restrictions and Statutory Requirements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure - Dividend Restrictions and Statutory Requirements [Abstract] | |
Statutory measurements | The statutory net (loss) income of PartnerRe Bermuda, PartnerRe Europe, PartnerRe U.S. and PartnerRe Asia for the years ended December 31, 2017 , 2016 and 2015 was as follows (in millions of U.S. dollars): 2017 2016 2015 PartnerRe Bermuda $ (69 ) $ 531 $ 444 PartnerRe Europe 149 61 79 PartnerRe U.S. 24 72 219 PartnerRe Asia 15 43 4 The required and actual statutory capital and surplus of PartnerRe Bermuda, PartnerRe Europe, PartnerRe U.S. and PartnerRe Asia at December 31, 2017 and 2016 was as follows (in millions of U.S. dollars): PartnerRe Bermuda PartnerRe Europe PartnerRe U.S. PartnerRe Asia 2017 2016 2017 2016 2017 2016 2017 2016 Required statutory capital and surplus $ 1,811 $ 1,578 $ 1,636 $ 1,431 $ 662 $ 672 $ 57 $ 49 Actual statutory capital and surplus $ 3,781 $ 4,159 $ 2,234 $ 1,655 $ 1,336 $ 1,464 $ 251 $ 238 |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure - Taxation [Abstract] | |
Components of income tax expense | Income tax expense for the years ended December 31, 2017 , 2016 and 2015 was as follows (in thousands of U.S. dollars): 2017 2016 2015 Current income tax (benefit) expense U.S. $ (10,031 ) $ 2,798 $ 81,066 Non U.S. 76,425 26,913 95,720 Total current income tax expense $ 66,394 $ 29,711 $ 176,786 Deferred income tax expense (benefit) U.S. $ 5,538 $ 10,070 $ (59,624 ) Non U.S. (58,702 ) (127 ) (44,125 ) Total deferred income tax (benefit) expense $ (53,164 ) $ 9,943 $ (103,749 ) Unrecognized tax (benefit) expense U.S. $ — $ — $ — Non U.S. (2,872 ) (13,731 ) 6,627 Total unrecognized tax (benefit) expense $ (2,872 ) $ (13,731 ) $ 6,627 Total income tax (benefit) expense U.S. $ (4,493 ) $ 12,868 $ 21,442 Non U.S. 14,851 13,055 58,222 Total income tax expense $ 10,358 $ 25,923 $ 79,664 |
Income before taxes attributable to domestic and foreign operations | 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, 2017 , 2016 and 2015 (in thousands of U.S. dollars): 2017 2016 2015 Domestic (Bermuda) 82,219 334,559 (63,603 ) Foreign 192,160 138,672 250,417 Income before taxes 274,379 473,231 186,814 |
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 11.4 6.9 58.3 Impact of foreign exchange (losses) gains (3.2 ) 2.2 1.1 Unrecognized tax (benefit) expense (1.0 ) (2.9 ) 3.5 Tax-exempt income and expenses not deductible (5.2 ) (3.2 ) (8.0 ) Foreign branch tax (24.6 ) 0.3 (26.8 ) Valuation allowance 24.8 0.3 15.2 Other 1.6 1.9 (0.7 ) Actual tax rate 3.8 % 5.5 % 42.6 % |
Significant components of net deferred tax assets and liabilities | Significant components of the net deferred tax assets and liabilities at December 31, 2017 and 2016 were as follows (in thousands of U.S. dollars): December 31, 2017 December 31, 2016 Deferred tax assets Discounting of loss reserves and adjustment to life policy reserves $ 34,806 $ 49,029 Foreign tax credit carryforwards 163,134 80,390 Tax loss carryforwards 36,405 35,708 Unearned premiums 14,425 25,518 Other deferred tax assets 31,566 24,012 280,336 214,657 Valuation allowance (185,615 ) (91,819 ) Deferred tax assets 94,721 122,838 Deferred tax liabilities Deferred acquisition costs 29,204 50,313 Goodwill and other intangibles 70,674 79,606 Equalization reserves 27,252 39,812 Unrealized appreciation and timing differences on investments 13,361 5,946 Unrealized appreciation and timing differences on foreign exchange revaluations 13,413 49,645 Other deferred tax liabilities 8,554 5,600 Deferred tax liabilities 162,458 230,922 Net deferred tax liabilities $ (67,737 ) $ (108,084 ) |
Components of net tax assets and liabilities | The components of net tax assets and liabilities at December 31, 2017 and 2016 were as follows (in thousands of U.S. dollars): December 31, 2017 December 31, 2016 Net tax assets $ 133,169 $ 194,170 Net tax liabilities (154,947 ) (166,113 ) Net tax (liabilities) assets $ (21,778 ) $ 28,057 December 31, 2017 December 31, 2016 Net current tax assets 53,900 145,831 Net deferred tax liabilities (67,737 ) (108,084 ) Net unrecognized tax benefit (7,941 ) (9,690 ) Net tax (liabilities) assets $ (21,778 ) $ 28,057 |
Total amount of unrecognized tax benefits | The total amount of unrecognized tax benefits for the years ended December 31, 2017 , 2016 and 2015 was as follows (in thousands of U.S. dollars): January 1, 2017 Changes in tax positions taken during a prior year Tax positions taken during the current year Change as a result of a lapse of the statute of limitations Impact of the change in foreign currency exchange rates December 31, 2017 Unrecognized tax benefits that, if recognized, would impact the effective tax rate $ 8,722 $ 281 $ 589 $ (4,115 ) $ 983 $ 6,460 Interest and penalties recognized on the above 968 900 6 (534 ) 141 1,481 Total unrecognized tax benefits, including interest and penalties $ 9,690 $ 1,181 $ 595 $ (4,649 ) $ 1,124 $ 7,941 January 1, 2016 Changes in tax Tax positions Change as a Impact of the December 31, 2016 Unrecognized tax benefits that, if recognized, would impact the effective tax rate $ 22,255 $ (13,728 ) $ 688 $ (112 ) $ (381 ) $ 8,722 Interest and penalties recognized on the above 1,583 (573 ) 5 (11 ) (36 ) 968 Total unrecognized tax benefits, including interest and penalties $ 23,838 $ (14,301 ) $ 693 $ (123 ) $ (417 ) $ 9,690 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 $ 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 |
Retirement Benefit Arrangemen47
Retirement Benefit Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure - Retirement Benefit Arrangements [Abstract] | |
Funded status | At December 31, 2017 and 2016 , the funded status of the Zurich Plan was as follows (in thousands of U.S. dollars): 2017 2016 Funded status Unfunded pension obligation at beginning of year $ 57,941 $ 50,405 Change in pension obligation Service cost 7,510 6,906 Interest cost 1,295 1,501 Plan participants’ contributions 2,905 2,704 Actuarial loss 1,483 8,467 Plan amendments — 85 Benefits paid (2,097 ) 1,756 Foreign currency adjustments 7,489 (5,965 ) Change in pension obligation 18,585 15,454 Change in fair value of plan assets Actual return on plan assets 1,131 2,011 Employer contributions 5,361 5,319 Plan participants’ contributions 2,905 2,704 Benefits paid (2,097 ) 1,756 Foreign currency adjustments 4,884 (3,872 ) Change in fair value of plan assets 12,184 7,918 Funded status Unfunded pension obligation at end of year $ 64,342 $ 57,941 Additional information: Projected benefit obligation at end of year $ 185,154 $ 166,569 Accumulated pension obligation at end of year 172,806 156,803 Fair value of plan assets at end of year 120,812 108,628 |
Assumptions used | The assumptions used to determine the Zurich Plan’s pension obligation and net periodic benefit cost for the years ended December 31, 2017 , 2016 and 2015 were as follows: 2017 2016 2015 Pension obligation Net periodic benefit cost Pension obligation Net periodic benefit cost Pension obligation Net periodic benefit cost Discount rate 0.75 % 0.75 % 0.75 % 1.00 % 1.00 % 1.25 % Expected return on plan assets — 0.75 % — 1.00 % — 1.25 % Rate of compensation increase 2.25 % 2.00 % 2.00 % 2.25 % 2.25 % 2.25 % |
Expected future benefit payments | At December 31, 2017 , estimated employer contributions to be paid in 2018 related to the Zurich Plan were $5 million and future benefit payments were estimated to be paid as follows (in thousands of U.S. dollars): Year Amount 2018 $ 4,751 2019 4,657 2020 4,666 2021 5,754 2022 5,721 2023 to 2027 36,040 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lease arrangements | The following is a schedule of future minimum rental payments, exclusive of escalation clauses, on noncancelable leases and future sub-lease rental income on noncancelable leases at December 31, 2017 (in thousands of U.S. dollars): Year Amount 2018 $ 17,195 2019 11,247 2020 9,277 2021 9,256 2022 8,895 2023-2029 38,947 Total future minimum rental payments $ 94,817 Total future sub-lease rental income through 2019 $ 2,556 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Segment reporting table | The segment results for the years ended December 31, 2017 , 2016 and 2015 are presented below (in millions of U.S. dollars, except ratios). Segment Information For the year ended December 31, 2017 P&C Specialty Total Life Corporate and Other Total Gross premiums written $ 2,255 $ 1,934 $ 4,189 $ 1,399 $ — $ 5,588 Net premiums written $ 1,996 $ 1,780 $ 3,776 $ 1,344 $ — $ 5,120 Increase in unearned premiums (33 ) (55 ) (88 ) (7 ) — (95 ) Net premiums earned $ 1,963 $ 1,725 $ 3,688 $ 1,337 $ — $ 5,025 Losses and loss expenses (1,620 ) (955 ) (2,575 ) (1,266 ) — (3,841 ) Acquisition costs (495 ) (489 ) (984 ) (136 ) — (1,120 ) Technical result $ (152 ) $ 281 $ 129 $ (65 ) $ — $ 64 Other (loss) income — (1 ) (1 ) 14 2 15 Other expenses (71 ) (33 ) (104 ) (61 ) (183 ) (348 ) Underwriting result (223 ) 247 $ 24 $ (112 ) n/a $ (269 ) Net investment income 60 342 402 Allocated underwriting result $ (52 ) n/a n/a Net realized and unrealized investment gains 232 232 Interest expense (42 ) (42 ) Loss on redemption of debt (2 ) (2 ) Amortization of intangible assets (25 ) (25 ) Net foreign exchange losses (108 ) (108 ) Income tax expense (10 ) (10 ) Interest in earnings of equity method investments 86 86 Net income n/a $ 264 Loss ratio (1) 82.6 % 55.4 % 69.8 % Acquisition ratio (2) 25.2 28.4 26.7 Technical ratio (3) 107.8 % 83.8 % 96.5 % Other expense ratio (4) 3.6 % 1.9 % 2.8 Combined ratio (5) 111.4 % 85.7 % 99.3 % (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. n/a: Not applicable Segment Information For the year ended December 31, 2016 P&C Specialty Total Non-life Life and Health segment Corporate and Other Total Gross premiums written $ 2,269 $ 1,920 $ 4,189 $ 1,168 $ — $ 5,357 Net premiums written $ 2,061 $ 1,776 $ 3,837 $ 1,117 $ — $ 4,954 Decrease (increase) in unearned premiums 25 (9 ) 16 — — 16 Net premiums earned $ 2,086 $ 1,767 $ 3,853 $ 1,117 $ — $ 4,970 Losses and loss expenses (1,248 ) (1,073 ) (2,321 ) (927 ) — (3,248 ) Acquisition costs (556 ) (500 ) (1,056 ) (131 ) — (1,187 ) Technical result $ 282 $ 194 $ 476 $ 59 $ — $ 535 Other income (loss) 3 (1 ) 2 10 3 15 Other expenses (141 ) (88 ) (229 ) (66 ) (177 ) (472 ) Underwriting result 144 105 $ 249 $ 3 n/a $ 78 Net investment income 58 353 411 Allocated underwriting result $ 61 n/a n/a Net realized and unrealized investment gains 26 26 Interest expense (49 ) (49 ) Loss on redemption of debt (22 ) (22 ) Amortization of intangible assets (26 ) (26 ) Net foreign exchange gains 78 78 Income tax expense (26 ) (26 ) Interest in losses of equity method investments (23 ) (23 ) Net income n/a $ 447 Loss ratio 59.8 % 60.8 % 60.3 % Acquisition ratio 26.7 28.3 27.4 Technical ratio 86.5 % 89.1 % 87.7 % Other expense ratio 6.7 % 4.9 % 5.9 Combined ratio 93.2 % 94.0 % 93.6 % Segment Information For the year ended December 31, 2015 P&C Specialty Total Life Corporate Total Gross premiums written $ 2,371 $ 1,906 $ 4,277 $ 1,271 $ — $ 5,548 Net premiums written $ 2,236 $ 1,786 $ 4,022 $ 1,208 $ — $ 5,230 Decrease in unearned premiums 4 34 $ 38 1 — $ 39 Net premiums earned $ 2,240 $ 1,820 $ 4,060 $ 1,209 $ — $ 5,269 Losses and loss expenses (1,129 ) (1,064 ) (2,193 ) (964 ) — (3,157 ) Acquisition costs (570 ) (494 ) (1,064 ) (153 ) — (1,217 ) Technical result $ 541 $ 262 $ 803 $ 92 $ — $ 895 Other income — — — 6 3 9 Other expenses (137 ) (82 ) (219 ) (63 ) (509 ) (791 ) Underwriting result 404 180 $ 584 $ 35 n/a $ 113 Net investment income 59 391 450 Allocated underwriting result $ 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 50.4 % 58.5 % 54.0 % Acquisition ratio 25.4 27.1 26.2 Technical ratio 75.8 % 85.6 % 80.2 % Other expense ratio 6.2 % 4.5 % 5.4 Combined ratio 82.0 % 90.1 % 85.6 % |
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, 2017 , 2016 and 2015 : 2017 2016 2015 Asia, Australia and New Zealand 13 % 12 % 12 % Europe 34 36 37 Latin America, Caribbean and Africa 9 8 10 North America 44 44 41 Total 100 % 100 % 100 % |
Percentage of premiums through brokers | The following table summarizes the percentage of gross premiums written through these two brokers by segment for the years ended December 31, 2017 , 2016 and 2015 : 2017 2016 2015 P&C 57 % 57 % 54 % Specialty 56 % 46 % 42 % Life and Health 18 % 16 % 16 % |
Organization Organization (Deta
Organization Organization (Details) | Apr. 03, 2017 |
Aurigen Capital Limited | |
Business Acquisition [Line Items] | |
Percentage of voting interests acquired | 100.00% |
Significant Accounting Polici51
Significant Accounting Policies - Narrative (Details) | 12 Months Ended |
Dec. 31, 2017Segment | |
Disclosure - Significant Accounting Policies [Abstract] | |
Number of segments | 3 |
Fair Value - Hierarchy table (D
Fair Value - Hierarchy table (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | $ 12,654,859 | $ 13,432,501 |
Short-term investments | 4,400 | 21,697 |
Equities | 638,596 | 38,626 |
Other invested assets | 639,572 | 443,629 |
Funds held - directly managed | 300,445 | 353,995 |
Total | 14,237,872 | 14,290,448 |
Derivative assets | Foreign exchange forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 8,559 | 5,263 |
Derivative assets | Futures contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 3,367 | |
Derivative assets | Insurance-linked securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 11,985 | 10,130 |
Derivative assets | Total return swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 2,505 | 1,989 |
Derivative assets | TBAs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 391 | 1,369 |
Corporate loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 205,331 | |
Notes and loan receivables and notes securitization | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 111,988 | 143,193 |
Private equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 331,932 | 305,729 |
Derivative liabilities | Foreign exchange forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | (20,328) | (7,142) |
Derivative liabilities | Insurance-linked securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | (97) | |
Derivative liabilities | Total return swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | (3,269) | (3,217) |
Derivative liabilities | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | (12,298) | (13,403) |
Derivative liabilities | TBAs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | (591) | (185) |
Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Funds held - directly managed | 453 | 1,603 |
Other invested assets funds held directly managed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Funds held - directly managed | 2,067 | 4,540 |
Finance | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 33,042 | 26,867 |
Industrials | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 16,534 | |
Technology | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 12,951 | 9,800 |
Insurance | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 7,558 | 1,800 |
Communications | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 3,215 | |
Consumer cyclical | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 2,170 | |
Consumer noncyclical | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 897 | 6 |
Other equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 3,493 | |
Mutual funds and exchange traded funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 558,736 | 153 |
U.S. government and government sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 2,205,964 | 3,541,433 |
Funds held - directly managed | 161,023 | 171,975 |
U.S. states, territories and municipalities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 690,311 | 684,555 |
Non US sovereign government supranational and government related [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 1,750,770 | 1,136,034 |
Funds held - directly managed | 95,812 | 104,512 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 6,128,636 | 5,705,522 |
Funds held - directly managed | 41,090 | 71,365 |
Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 51,703 | 124,060 |
Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 1,822,725 | 2,240,897 |
Other mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 4,750 | |
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 | 39,414 | 979 |
Other invested assets | 3,367 | 0 |
Funds held - directly managed | 0 | 0 |
Total | 42,781 | 979 |
Quoted prices in active markets for identical assets (Level 1) | Derivative assets | Foreign exchange forward contracts | ||
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 | Futures contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 3,367 | |
Quoted prices in active markets for identical assets (Level 1) | Derivative assets | Insurance-linked securities | ||
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 | Total return swaps | ||
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 | TBAs | ||
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) | Corporate loans | ||
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) | Notes and loan receivables and notes securitization | ||
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 | ||
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 | Foreign exchange forward contracts | ||
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 | Insurance-linked securities | ||
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 | Total return swaps | ||
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 | Interest rate swaps | ||
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 | TBAs | ||
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) | Short-term investments | ||
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) | Other invested assets funds held directly managed | ||
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) | Finance | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 11,115 | 973 |
Quoted prices in active markets for identical assets (Level 1) | Industrials | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 16,534 | |
Quoted prices in active markets for identical assets (Level 1) | Technology | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 1,990 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Insurance | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Communications | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 3,215 | |
Quoted prices in active markets for identical assets (Level 1) | Consumer cyclical | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 2,170 | |
Quoted prices in active markets for identical assets (Level 1) | Consumer noncyclical | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 897 | 6 |
Quoted prices in active markets for identical assets (Level 1) | Other equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 3,493 | |
Quoted prices in active markets for identical assets (Level 1) | Mutual funds and exchange traded funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 0 | 0 |
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 |
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 bonds | ||
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 | ||
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 | |
Significant other observable inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 12,505,315 | 13,209,323 |
Short-term investments | 4,400 | 21,697 |
Equities | 7,559 | 6,760 |
Other invested assets | (20,842) | (12,598) |
Funds held - directly managed | 298,378 | 349,455 |
Total | 12,794,810 | 13,574,637 |
Significant other observable inputs (Level 2) | Derivative assets | Foreign exchange forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 8,559 | 5,263 |
Significant other observable inputs (Level 2) | Derivative assets | Futures contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 0 | |
Significant other observable inputs (Level 2) | Derivative assets | Insurance-linked securities | ||
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 | Total return swaps | ||
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 | TBAs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 391 | 1,369 |
Significant other observable inputs (Level 2) | Corporate loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 0 | |
Significant other observable inputs (Level 2) | Notes and loan receivables and notes securitization | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 3,425 | 1,500 |
Significant other observable inputs (Level 2) | Private equities | ||
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 | Foreign exchange forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | (20,328) | (7,142) |
Significant other observable inputs (Level 2) | Derivative liabilities | Insurance-linked securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 0 | |
Significant other observable inputs (Level 2) | Derivative liabilities | Total return swaps | ||
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 | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | (12,298) | (13,403) |
Significant other observable inputs (Level 2) | Derivative liabilities | TBAs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | (591) | (185) |
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 | 453 | 1,603 |
Significant other observable inputs (Level 2) | Other invested assets funds held directly managed | ||
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) | Finance | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 1 | 4,960 |
Significant other observable inputs (Level 2) | Industrials | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 0 | |
Significant other observable inputs (Level 2) | Technology | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 0 | 0 |
Significant other observable inputs (Level 2) | Insurance | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 7,558 | 1,800 |
Significant other observable inputs (Level 2) | Communications | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 0 | |
Significant other observable inputs (Level 2) | Consumer cyclical | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 0 | |
Significant other observable inputs (Level 2) | Consumer noncyclical | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 0 | 0 |
Significant other observable inputs (Level 2) | Other equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 0 | |
Significant other observable inputs (Level 2) | Mutual funds and exchange traded funds | ||
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 | 2,205,964 | 3,541,433 |
Funds held - directly managed | 161,023 | 171,975 |
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 | 561,505 | 560,728 |
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 | 1,750,770 | 1,136,034 |
Funds held - directly managed | 95,812 | 104,512 |
Significant other observable inputs (Level 2) | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 6,128,636 | 5,705,522 |
Funds held - directly managed | 41,090 | 71,365 |
Significant other observable inputs (Level 2) | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 30,965 | 24,709 |
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 | 1,822,725 | 2,240,897 |
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 | 4,750 | |
Significant unobservable inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 149,544 | 223,178 |
Short-term investments | 0 | 0 |
Equities | 591,623 | 30,887 |
Other invested assets | 657,047 | 456,227 |
Funds held - directly managed | 2,067 | 4,540 |
Total | 1,400,281 | 714,832 |
Significant unobservable inputs (Level 3) | Derivative assets | Foreign exchange forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 0 | 0 |
Significant unobservable inputs (Level 3) | Derivative assets | Futures contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 0 | |
Significant unobservable inputs (Level 3) | Derivative assets | Insurance-linked securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 11,985 | 10,130 |
Significant unobservable inputs (Level 3) | Derivative assets | Total return swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 2,505 | 1,989 |
Significant unobservable inputs (Level 3) | Derivative assets | TBAs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 0 | 0 |
Significant unobservable inputs (Level 3) | Corporate loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 205,331 | |
Significant unobservable inputs (Level 3) | Notes and loan receivables and notes securitization | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 108,563 | 141,693 |
Significant unobservable inputs (Level 3) | Private equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 331,932 | 305,729 |
Significant unobservable inputs (Level 3) | Derivative liabilities | Foreign exchange forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 0 | 0 |
Significant unobservable inputs (Level 3) | Derivative liabilities | Insurance-linked securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | (97) | |
Significant unobservable inputs (Level 3) | Derivative liabilities | Total return swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | (3,269) | (3,217) |
Significant unobservable inputs (Level 3) | Derivative liabilities | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 0 | 0 |
Significant unobservable inputs (Level 3) | Derivative liabilities | TBAs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 0 | 0 |
Significant unobservable inputs (Level 3) | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Funds held - directly managed | 0 | 0 |
Significant unobservable inputs (Level 3) | Other invested assets funds held directly managed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Funds held - directly managed | 2,067 | 4,540 |
Significant unobservable inputs (Level 3) | Finance | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 21,926 | 20,934 |
Significant unobservable inputs (Level 3) | Industrials | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 0 | |
Significant unobservable inputs (Level 3) | Technology | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 10,961 | 9,800 |
Significant unobservable inputs (Level 3) | Insurance | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 0 | 0 |
Significant unobservable inputs (Level 3) | Communications | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 0 | |
Significant unobservable inputs (Level 3) | Consumer cyclical | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 0 | |
Significant unobservable inputs (Level 3) | Consumer noncyclical | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 0 | 0 |
Significant unobservable inputs (Level 3) | Other equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 0 | |
Significant unobservable inputs (Level 3) | Mutual funds and exchange traded funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 558,736 | 153 |
Significant unobservable inputs (Level 3) | 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) | U.S. states, territories and municipalities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 128,806 | 123,827 |
Significant unobservable inputs (Level 3) | 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) | Corporate bonds | ||
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) | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 20,738 | 99,351 |
Significant unobservable inputs (Level 3) | 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) | Other mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | $ 0 |
Fair Value - Level 3 rollforwar
Fair Value - Level 3 rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Balance, beginning of year | $ 714,832 | $ 767,255 | |||
Realized and unrealized investment gains (losses) included in net income | 100,621 | (1,662) | |||
Purchases and issuances | 737,210 | 502,615 | |||
Settlements and Sales | (152,382) | [1] | (553,376) | [2] | |
Net transfers into/ (out of) Level 3 | 0 | 0 | |||
Balance, end of year | 1,400,281 | 714,832 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of year | 97,626 | (9,434) | |||
Fixed maturities | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Balance, beginning of year | 223,178 | 508,546 | |||
Realized and unrealized investment gains (losses) included in net income | 9,104 | (14,219) | |||
Purchases and issuances | 1,360 | 191,048 | |||
Settlements and Sales | (84,098) | [1] | (462,197) | [2] | |
Net transfers into/ (out of) Level 3 | 0 | 0 | |||
Balance, end of year | 149,544 | 223,178 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of year | 7,120 | (18,868) | |||
Sales | 276,000 | ||||
Fixed maturities | U.S. states, territories and municipalities | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Balance, beginning of year | 123,827 | 138,847 | |||
Realized and unrealized investment gains (losses) included in net income | 5,804 | (14,240) | |||
Purchases and issuances | 0 | 0 | |||
Settlements and Sales | (825) | [1] | (780) | [2] | |
Net transfers into/ (out of) Level 3 | 0 | 0 | |||
Balance, end of year | 128,806 | 123,827 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of year | 5,804 | (14,240) | |||
Fixed maturities | Asset-backed securities | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Balance, beginning of year | 99,351 | 369,699 | |||
Realized and unrealized investment gains (losses) included in net income | 3,300 | 21 | |||
Purchases and issuances | 1,360 | 191,048 | |||
Settlements and Sales | (83,273) | [1] | (461,417) | [2] | |
Net transfers into/ (out of) Level 3 | 0 | 0 | |||
Balance, end of year | 20,738 | 99,351 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of year | 1,316 | (4,628) | |||
Equities | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Balance, beginning of year | 30,887 | 37,556 | |||
Realized and unrealized investment gains (losses) included in net income | 54,079 | 4,548 | |||
Purchases and issuances | 507,250 | 450 | |||
Settlements and Sales | (593) | [1] | (11,667) | [2] | |
Net transfers into/ (out of) Level 3 | 0 | 0 | |||
Balance, end of year | 591,623 | 30,887 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of year | 54,089 | 4,423 | |||
Sales | 1,000 | 12,000 | |||
Equities | Finance | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Balance, beginning of year | 20,934 | 22,760 | |||
Realized and unrealized investment gains (losses) included in net income | 992 | 3,438 | |||
Purchases and issuances | 0 | 0 | |||
Settlements and Sales | 0 | [1] | (5,264) | [2] | |
Net transfers into/ (out of) Level 3 | 0 | 0 | |||
Balance, end of year | 21,926 | 20,934 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of year | 992 | 3,211 | |||
Equities | Technology | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Balance, beginning of year | 9,800 | 8,207 | |||
Realized and unrealized investment gains (losses) included in net income | 1,611 | 1,143 | |||
Purchases and issuances | 0 | 450 | |||
Settlements and Sales | (450) | [1] | 0 | [2] | |
Net transfers into/ (out of) Level 3 | 0 | 0 | |||
Balance, end of year | 10,961 | 9,800 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of year | 1,611 | 1,143 | |||
Equities | Communications | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Balance, beginning of year | 0 | 1,985 | |||
Realized and unrealized investment gains (losses) included in net income | 209 | ||||
Purchases and issuances | 0 | ||||
Settlements and Sales | [2] | (2,194) | |||
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 | 55 | ||||
Equities | Mutual funds and exchange traded funds | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Balance, beginning of year | 153 | 4,604 | |||
Realized and unrealized investment gains (losses) included in net income | 51,476 | (242) | |||
Purchases and issuances | 507,250 | 0 | |||
Settlements and Sales | (143) | [1] | (4,209) | [2] | |
Net transfers into/ (out of) Level 3 | 0 | 0 | |||
Balance, end of year | 558,736 | 153 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of year | 51,486 | 14 | |||
Other invested assets | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Balance, beginning of year | 456,227 | 211,007 | |||
Realized and unrealized investment gains (losses) included in net income | 37,954 | 6,311 | |||
Purchases and issuances | 228,105 | 310,106 | |||
Settlements and Sales | (65,239) | [1] | (71,197) | [2] | |
Net transfers into/ (out of) Level 3 | 0 | 0 | |||
Balance, end of year | 657,047 | 456,227 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of year | 37,046 | 3,333 | |||
Sales | 43,000 | ||||
Other invested assets | Derivatives, net | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Balance, beginning of year | 8,805 | 5,351 | |||
Realized and unrealized investment gains (losses) included in net income | 5,977 | (3,314) | |||
Purchases and issuances | 1,793 | 2,256 | [3] | ||
Settlements and Sales | (5,354) | [1] | 4,512 | [2] | |
Net transfers into/ (out of) Level 3 | 0 | 0 | |||
Balance, end of year | 11,221 | 8,805 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of year | 3,231 | (1,772) | |||
Issuances | 2,000 | 0 | |||
Other invested assets | Corporate loans | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Balance, beginning of year | 0 | ||||
Realized and unrealized investment gains (losses) included in net income | (709) | ||||
Purchases and issuances | 206,700 | ||||
Settlements and Sales | [1] | (660) | |||
Net transfers into/ (out of) Level 3 | 0 | ||||
Balance, end of year | 205,331 | 0 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of year | (695) | ||||
Other invested assets | Notes and loan receivables and notes securitization | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Balance, beginning of year | 141,693 | 125,922 | |||
Realized and unrealized investment gains (losses) included in net income | 2,744 | 2,599 | |||
Purchases and issuances | 2,040 | 71,828 | |||
Settlements and Sales | (37,914) | [1] | (58,656) | [2] | |
Net transfers into/ (out of) Level 3 | 0 | 0 | |||
Balance, end of year | 108,563 | 141,693 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of year | 6,977 | 2,278 | |||
Other invested assets | Annuities and residuals | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Balance, beginning of year | 0 | 8,436 | |||
Realized and unrealized investment gains (losses) included in net income | 262 | ||||
Purchases and issuances | 0 | ||||
Settlements and Sales | [2] | (8,698) | |||
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 | ||||
Other invested assets | Private equities | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Balance, beginning of year | 305,729 | 71,298 | |||
Realized and unrealized investment gains (losses) included in net income | 29,942 | 6,764 | |||
Purchases and issuances | 17,572 | 236,022 | |||
Settlements and Sales | (21,311) | [1] | (8,355) | [2] | |
Net transfers into/ (out of) Level 3 | 0 | 0 | |||
Balance, end of year | 331,932 | 305,729 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of year | 27,533 | 2,827 | |||
Funds Held - Directly Managed | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Balance, beginning of year | 4,540 | 10,146 | |||
Realized and unrealized investment gains (losses) included in net income | (516) | 1,698 | |||
Purchases and issuances | 495 | 1,011 | |||
Settlements and Sales | (2,452) | [1] | (8,315) | [2] | |
Net transfers into/ (out of) Level 3 | 0 | 0 | |||
Balance, end of year | 2,067 | 4,540 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of year | $ (629) | 1,678 | |||
Sales | $ 8,000 | ||||
[1] | Settlements and sales of equities include sales of $1 million. | ||||
[2] | Settlements and sales of fixed maturities, equities, other invested assets and funds held–directly managed include sales of $276 million, $12 million, $43 million and $8 million, respectively. | ||||
[3] | 1)There were no issuances included in the purchases and issuances amounts above. |
Fair Value - Valuation Techniqu
Fair Value - Valuation Technique and Inputs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fixed maturities | $ 12,654,859 | $ 13,432,501 |
Equities | 638,596 | 38,626 |
Other invested assets carried at fair value | 639,572 | 443,629 |
Funds held directly managed investments carried at fair value | 300,445 | 353,995 |
Significant unobservable inputs (Level 3) | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fixed maturities | 149,544 | 223,178 |
Equities | 591,623 | 30,887 |
Other invested assets carried at fair value | 657,047 | 456,227 |
Funds held directly managed investments carried at fair value | 2,067 | 4,540 |
Significant unobservable inputs (Level 3) | Discounted cash flow [Member] | U.S. states, territories and municipalities | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fixed maturities | $ 128,806 | $ 123,827 |
Significant unobservable inputs (Level 3) | Discounted cash flow [Member] | U.S. states, territories and municipalities | Minimum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Credit spreads | 0.20% | 1.50% |
Significant unobservable inputs (Level 3) | Discounted cash flow [Member] | U.S. states, territories and municipalities | Maximum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Credit spreads | 10.20% | 10.50% |
Significant unobservable inputs (Level 3) | Discounted cash flow [Member] | U.S. states, territories and municipalities | Weighted Average | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Credit spreads | 4.70% | 6.30% |
Significant unobservable inputs (Level 3) | Discounted cash flow [Member] | Asset-backed securities [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fixed maturities | $ 20,738 | $ 99,351 |
Significant unobservable inputs (Level 3) | Discounted cash flow [Member] | Asset-backed securities [Member] | Minimum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Credit spreads | 4.70% | 4.10% |
Significant unobservable inputs (Level 3) | Discounted cash flow [Member] | Asset-backed securities [Member] | Maximum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Credit spreads | 4.70% | 18.50% |
Significant unobservable inputs (Level 3) | Discounted cash flow [Member] | Asset-backed securities [Member] | Weighted Average | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Credit spreads | 4.70% | 14.90% |
Significant unobservable inputs (Level 3) | Discounted cash flow [Member] | Total return swaps | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Other invested assets carried at fair value | $ (764) | $ (1,228) |
Significant unobservable inputs (Level 3) | Discounted cash flow [Member] | Total return swaps | Minimum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Credit spreads | 2.40% | 2.90% |
Significant unobservable inputs (Level 3) | Discounted cash flow [Member] | Total return swaps | Maximum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Credit spreads | 30.80% | 29.40% |
Significant unobservable inputs (Level 3) | Discounted cash flow [Member] | Total return swaps | Weighted Average | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Credit spreads | 18.50% | 19.30% |
Significant unobservable inputs (Level 3) | Discounted cash flow [Member] | Insurance-linked securities- longevity swaps | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Other invested assets carried at fair value | $ 11,962 | $ 9,218 |
Significant unobservable inputs (Level 3) | Discounted cash flow [Member] | Insurance-linked securities- longevity swaps | Minimum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Credit spreads | 1.70% | 2.60% |
Significant unobservable inputs (Level 3) | Discounted cash flow [Member] | Insurance-linked securities- longevity swaps | Maximum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Credit spreads | 1.70% | 2.60% |
Significant unobservable inputs (Level 3) | Discounted cash flow [Member] | Insurance-linked securities- longevity swaps | Weighted Average | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Credit spreads | 1.70% | 2.60% |
Significant unobservable inputs (Level 3) | Discounted cash flow [Member] | Notes and Loans Receivable 2 | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Other invested assets carried at fair value | $ 102,907 | $ 131,176 |
Significant unobservable inputs (Level 3) | Discounted cash flow [Member] | Notes and Loans Receivable 2 | Minimum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Credit spreads | 3.90% | 4.20% |
Significant unobservable inputs (Level 3) | Discounted cash flow [Member] | Notes and Loans Receivable 2 | Maximum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Credit spreads | 39.30% | 24.40% |
Significant unobservable inputs (Level 3) | Discounted cash flow [Member] | Notes and Loans Receivable 2 | Weighted Average | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Credit spreads | 6.10% | 5.20% |
Significant unobservable inputs (Level 3) | Discounted cash flow [Member] | Notes and loan receivables | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Other invested assets carried at fair value | $ 4,265 | $ 8,953 |
Significant unobservable inputs (Level 3) | Discounted cash flow [Member] | Notes and loan receivables | Minimum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Credit spreads | 17.50% | 17.50% |
Gross revenue/fair value | 1.1 | 1.2 |
Significant unobservable inputs (Level 3) | Discounted cash flow [Member] | Notes and loan receivables | Maximum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Credit spreads | 17.50% | 17.50% |
Gross revenue/fair value | 1.1 | 1.2 |
Significant unobservable inputs (Level 3) | Discounted cash flow [Member] | Notes and loan receivables | Weighted Average | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Credit spreads | 17.50% | 17.50% |
Gross revenue/fair value | 1.1 | 1.2 |
Significant unobservable inputs (Level 3) | Discounted cash flow [Member] | Notes securitization | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Other invested assets carried at fair value | $ 1,391 | $ 1,564 |
Significant unobservable inputs (Level 3) | Discounted cash flow [Member] | Notes securitization | Minimum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Credit spreads | 1.50% | 3.30% |
Significant unobservable inputs (Level 3) | Discounted cash flow [Member] | Notes securitization | Maximum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Credit spreads | 1.50% | 3.30% |
Significant unobservable inputs (Level 3) | Discounted cash flow [Member] | Notes securitization | Weighted Average | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Credit spreads | 1.50% | 3.30% |
Significant unobservable inputs (Level 3) | Discounted cash flow [Member] | Private Equity - Other | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Other invested assets carried at fair value | $ 24,241 | $ 29,949 |
Significant unobservable inputs (Level 3) | Discounted cash flow [Member] | Private Equity - Other | Minimum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Effective Yield | 3.80% | 5.80% |
Significant unobservable inputs (Level 3) | Discounted cash flow [Member] | Private Equity - Other | Maximum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Effective Yield | 3.80% | 5.80% |
Significant unobservable inputs (Level 3) | Discounted cash flow [Member] | Private Equity - Other | Weighted Average | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Effective Yield | 3.80% | 5.80% |
Significant unobservable inputs (Level 3) | Weighted market comparables [Member] | Finance | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Equities | $ 21,926 | $ 20,934 |
Significant unobservable inputs (Level 3) | Weighted market comparables [Member] | Finance | Minimum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Net income multiple | 16.7 | 20.3 |
Tangible book value multiple | 2 | 1.9 |
Liquidity discount | 25.00% | 25.00% |
Comparable return | 4.10% | 36.90% |
Significant unobservable inputs (Level 3) | Weighted market comparables [Member] | Finance | Maximum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Net income multiple | 16.7 | 20.3 |
Tangible book value multiple | 2 | 1.9 |
Liquidity discount | 25.00% | 25.00% |
Comparable return | 4.10% | 36.90% |
Significant unobservable inputs (Level 3) | Weighted market comparables [Member] | Finance | Weighted Average | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Net income multiple | 16.7 | 20.3 |
Tangible book value multiple | 2 | 1.9 |
Liquidity discount | 25.00% | 25.00% |
Comparable return | 4.10% | 36.90% |
Significant unobservable inputs (Level 3) | Reported Market Value [Member] | Technology | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Equities | $ 10,961 | $ 9,800 |
Significant unobservable inputs (Level 3) | Reported Market Value [Member] | Technology | Minimum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Tangible book value multiple | 1 | 1 |
Significant unobservable inputs (Level 3) | Reported Market Value [Member] | Technology | Maximum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Tangible book value multiple | 1 | 1 |
Significant unobservable inputs (Level 3) | Reported Market Value [Member] | Technology | Weighted Average | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Tangible book value multiple | 1 | 1 |
Significant unobservable inputs (Level 3) | Reported market value | Private equity funds | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Other invested assets carried at fair value | $ 12,559 | $ 11,064 |
Significant unobservable inputs (Level 3) | Reported market value | Private equity funds | Minimum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Net asset value, as reported | 100.00% | 100.00% |
Market adjustments | (0.70%) | (0.70%) |
Significant unobservable inputs (Level 3) | Reported market value | Private equity funds | Maximum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Net asset value, as reported | 100.00% | 100.00% |
Market adjustments | (0.70%) | (0.70%) |
Significant unobservable inputs (Level 3) | Reported market value | Private equity funds | Weighted Average | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Net asset value, as reported | 100.00% | 100.00% |
Market adjustments | (0.70%) | (0.70%) |
Significant unobservable inputs (Level 3) | Reported market value | Other invested assets | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Funds held directly managed investments carried at fair value | $ 2,067 | $ 4,540 |
Significant unobservable inputs (Level 3) | Reported market value | Other invested assets | Minimum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Net asset value, as reported | 100.00% | 100.00% |
Market adjustments | 0.00% | 0.00% |
Significant unobservable inputs (Level 3) | Reported market value | Other invested assets | Maximum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Net asset value, as reported | 100.00% | 100.00% |
Market adjustments | 0.00% | 0.00% |
Significant unobservable inputs (Level 3) | Reported market value | Other invested assets | Weighted Average | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Net asset value, as reported | 100.00% | 100.00% |
Market adjustments | 0.00% | 0.00% |
Significant unobservable inputs (Level 3) | Discounted Cash Flow And Weighted Market Comparables [Member] | Private Equity-Direct | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Other invested assets carried at fair value | $ 3,011 | $ 5,019 |
Significant unobservable inputs (Level 3) | Discounted Cash Flow And Weighted Market Comparables [Member] | Private Equity-Direct | Minimum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Net income multiple | 8.6 | |
Tangible book value multiple | 0.8 | 2 |
Recoverability of intangible assets | 0 | 0 |
Significant unobservable inputs (Level 3) | Discounted Cash Flow And Weighted Market Comparables [Member] | Private Equity-Direct | Maximum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Net income multiple | 8.6 | |
Tangible book value multiple | 0.8 | 2 |
Recoverability of intangible assets | 0 | 0 |
Significant unobservable inputs (Level 3) | Discounted Cash Flow And Weighted Market Comparables [Member] | Private Equity-Direct | Weighted Average | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Net income multiple | 8.6 | |
Tangible book value multiple | 0.8 | 2 |
Recoverability of intangible assets | 0 | 0 |
Fair Value - Change in fair val
Fair Value - Change in fair value option table (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Change in unrealized gain/loss | $ 207,025 | $ (94,839) | $ (472,495) |
Fixed maturities and short term investments | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Change in unrealized gain/loss | 124,033 | (90,334) | (276,776) |
Equities | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Change in unrealized gain/loss | 60,460 | (14,850) | (187,561) |
Other invested assets | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Change in unrealized gain/loss | 28,144 | 11,066 | (1,835) |
Funds Held - Directly Managed | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Change in unrealized gain/loss | $ (5,612) | $ (721) | $ (6,323) |
Fair Value - narrative items (D
Fair Value - narrative items (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value - Other Details [Line Items] | ||||
Funds held directly managed investments carried at fair value | $ 300,445 | $ 353,995 | ||
Fair Value Assets Level 2 To Level 1 Transfers Amount | 0 | 0 | ||
Cash and cash equivalents | 1,772,012 | 1,773,328 | $ 1,577,097 | $ 1,313,468 |
Accrued investment income | 120,805 | 112,580 | ||
Corporate loans | ||||
Fair Value - Other Details [Line Items] | ||||
Investment in privately placed corporate loans | 207,000 | |||
Mutual funds and exchange traded funds | ||||
Fair Value - Other Details [Line Items] | ||||
Payments to acquire investments | 500,000 | |||
Funds held directly managed | ||||
Fair Value - Other Details [Line Items] | ||||
Cash and cash equivalents | 74,000 | 76,000 | ||
Accrued investment income | 3,000 | 4,000 | ||
Other net assets | 47,000 | 77,000 | ||
Trading securities | Other invested assets | ||||
Fair Value - Other Details [Line Items] | ||||
Carrying amount of other invested assets not at fair value | $ 746,000 | $ 632,000 |
Investments - Net Realized and
Investments - Net Realized and Unrealized Investment (Losses) Gains (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Net Realized and Unrealized Investment (Losses) Gains | |||
Net realized and unrealized investment gains (losses) | $ 232,491 | $ 26,266 | $ (297,479) |
Trading securities | |||
Schedule of Net Realized and Unrealized Investment (Losses) Gains | |||
Net realized investment gains (losses) on trading securities | 21,871 | 103,871 | 171,124 |
Change in net unrealized investment gains (losses) | 210,620 | (77,605) | (468,603) |
Net realized and unrealized investment gains (losses) | 232,491 | 26,266 | (297,479) |
Trading securities | Fixed maturities and short term investments | |||
Schedule of Net Realized and Unrealized Investment (Losses) Gains | |||
Net realized investment gains (losses) on trading securities | 28,632 | 96,994 | 66,296 |
Change in net unrealized investment gains (losses) | 124,033 | (90,334) | (276,776) |
Trading securities | Equities | |||
Schedule of Net Realized and Unrealized Investment (Losses) Gains | |||
Net realized investment gains (losses) on trading securities | (4,052) | 157 | 137,609 |
Change in net unrealized investment gains (losses) | 60,460 | (14,850) | (187,561) |
Trading securities | Other invested assets | |||
Schedule of Net Realized and Unrealized Investment (Losses) Gains | |||
Net realized investment gains (losses) on trading securities | (3,217) | 5,365 | (33,317) |
Change in net unrealized investment gains (losses) | 32,790 | 25,488 | 844 |
Trading securities | Funds Held - Directly Managed | |||
Schedule of Net Realized and Unrealized Investment (Losses) Gains | |||
Net realized investment gains (losses) on trading securities | 508 | 1,355 | 536 |
Change in net unrealized investment gains (losses) | (5,567) | (676) | (6,163) |
Trading securities | Other realized and unrealized investments gains (losses) | |||
Schedule of Net Realized and Unrealized Investment (Losses) Gains | |||
Change in net unrealized investment gains (losses) | $ (1,096) | $ 2,767 | $ 1,053 |
Investments - Investment Income
Investments - Investment Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net Investment Income [Line Items] | |||
Net investment income | $ 402,071 | $ 410,864 | $ 449,784 |
Trading securities | Fixed maturities | |||
Net Investment Income [Line Items] | |||
Net investment income | 382,676 | 395,831 | 425,541 |
Trading securities | Short-term investments and cash and cash equivalents | |||
Net Investment Income [Line Items] | |||
Net investment income | 5,363 | 1,915 | 854 |
Trading securities | Equities | |||
Net Investment Income [Line Items] | |||
Net investment income | (12) | 4,382 | 30,739 |
Trading securities | Funds Held And Other | |||
Net Investment Income [Line Items] | |||
Net investment income | 29,068 | 34,161 | 27,406 |
Trading securities | Funds Held - Directly Managed | |||
Net Investment Income [Line Items] | |||
Net investment income | 7,742 | 9,993 | 11,676 |
Trading securities | Investment Expenses | |||
Net Investment Income [Line Items] | |||
Net investment income | $ (22,766) | $ (35,418) | $ (46,432) |
Investments - Pledged assets an
Investments - Pledged assets and net payable receivable for securities purchased sold (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pledged assets and net payable for securities purchased [Line Items] | |||
Funds Held Investment Interest Rate Range Low | 0.10% | 0.00% | 0.10% |
Funds Held Investment Interest Rate Range High | 7.00% | 5.40% | 8.00% |
Restricted Cash and Cash Equivalents | $ 274,000 | $ 157,000 | |
Marketable Securities, Restricted | 3,422,000 | 2,241,000 | |
Receivable for securities sold | 144,224 | 52,189 | |
Payable for securities purchased | (181,991) | (648,813) | |
Net payable for securities purchased | $ (37,767) | $ (596,624) |
Investments - Equity Method Inv
Investments - Equity Method Investment - Summarized Financial Information (Details) - Almacantar Group S.A. - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Summarized Financial Information, Current Assets | $ 906,085 | $ 698,835 |
Equity Method Investment, Summarized Financial Information, Noncurrent Assets | 1,877,519 | 1,510,632 |
Equity Method Investment, Summarized Financial Information, Current Liabilities | 553,219 | 372,677 |
Equity Method Investment, Summarized Financial Information, Noncurrent Liabilities | 690,935 | 624,970 |
Equity Method Investment, Summarized Financial Information, Revenue | 130,333 | 24,646 |
Equity Method Investment, Summarized Financial Information, Gross Profit (Loss) | 190,613 | (47,082) |
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | $ 213,241 | $ (37,059) |
Funds Held - Directly Managed (
Funds Held - Directly Managed (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure - Funds Held-Directly Managed [Abstract] | ||
Funds held directly managed investments carried at fair value | $ 300,445 | $ 353,995 |
Derivatives - Balance Sheet (De
Derivatives - Balance Sheet (Details) $ in Thousands, € in Millions | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2016USD ($) | Dec. 31, 2015EUR (€) | |
Derivative [Line Items] | |||||
Asset derivatives at fair value | [1] | $ 26,807 | $ 18,751 | ||
Liability derivatives at fair value | [1] | (36,486) | (24,044) | ||
Derivatives designated as hedges [Member] | Euro Member Countries, Euro | Foreign exchange forward contracts | |||||
Derivative [Line Items] | |||||
Net notional exposure | € | € 0 | € 350 | |||
Derivatives not designated as hedges [Member] | |||||
Derivative [Line Items] | |||||
Asset derivatives at fair value | [1] | 26,807 | 18,751 | ||
Liability derivatives at fair value | [1] | (36,486) | (24,044) | ||
Fair value | (9,679) | (5,293) | |||
Derivatives not designated as hedges [Member] | Foreign exchange forward contracts | |||||
Derivative [Line Items] | |||||
Asset derivatives at fair value | 8,559 | 5,263 | |||
Liability derivatives at fair value | (20,328) | (7,142) | |||
Fair value | (11,769) | (1,879) | |||
Net notional exposure | 2,862,927 | 1,929,033 | |||
Derivatives not designated as hedges [Member] | Futures contracts | |||||
Derivative [Line Items] | |||||
Asset derivatives at fair value | 3,367 | ||||
Liability derivatives at fair value | 0 | ||||
Fair value | 3,367 | ||||
Net notional exposure | 917,696 | ||||
Derivatives not designated as hedges [Member] | Insurance-linked securities | |||||
Derivative [Line Items] | |||||
Asset derivatives at fair value | [2] | 11,985 | 10,130 | ||
Liability derivatives at fair value | [2] | 0 | (97) | ||
Fair value | [2] | 11,985 | 10,033 | ||
Net notional exposure | [2] | 78,879 | 145,011 | ||
Derivatives not designated as hedges [Member] | Total return swaps | |||||
Derivative [Line Items] | |||||
Asset derivatives at fair value | 2,505 | 1,989 | |||
Liability derivatives at fair value | (3,269) | (3,217) | |||
Fair value | (764) | (1,228) | |||
Net notional exposure | 42,147 | 42,304 | |||
Derivatives not designated as hedges [Member] | Interest rate swaps | |||||
Derivative [Line Items] | |||||
Asset derivatives at fair value | [3] | 0 | 0 | ||
Liability derivatives at fair value | [3] | (12,298) | (13,403) | ||
Fair value | [3] | (12,298) | (13,403) | ||
Net notional exposure | [3] | 192,215 | 194,585 | ||
Derivatives not designated as hedges [Member] | TBAs | |||||
Derivative [Line Items] | |||||
Asset derivatives at fair value | 391 | 1,369 | |||
Liability derivatives at fair value | (591) | (185) | |||
Fair value | (200) | 1,184 | |||
Net notional exposure | $ 501,405 | $ 386,500 | |||
[1] | Amounts include all derivative instruments, irrespective of whether there is a legally enforceable master netting arrangement in place. | ||||
[2] | Insurance-linked securities include longevity swaps for which the notional amounts are not reflective of the overall potential exposure of the swaps. The net notional exposure above included the Company's probable maximum loss at December 31, 2016 and, for December 31, 2017, the Company's best estimate of the present value of future expected claims. | ||||
[3] | The Company enters into interest rate swaps to mitigate notional exposures on certain total return swaps and certain fixed maturities. The net notional exposure for interest rate swaps above relates to fixed maturities. |
Derivatives - Income Statement
Derivatives - Income Statement (Details) - Derivatives not designated as hedges [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in income | $ (47,711) | $ (35,985) | $ (67,590) |
Included in net foreign exchange gains and losses [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in income | (41,776) | (50,854) | (32,689) |
Included in net realized and unrealized investment gains and losses [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in income | (5,935) | 14,869 | (34,901) |
Foreign exchange forward contracts | Included in net foreign exchange gains and losses [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in income | (41,776) | (53,437) | (29,217) |
Foreign currency option contracts | Included in net foreign exchange gains and losses [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in income | 0 | 2,583 | (3,472) |
Futures contracts | Included in net realized and unrealized investment gains and losses [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in income | (11,683) | (5,195) | (32,004) |
Insurance-linked securities | Included in net realized and unrealized investment gains and losses [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in income | (563) | 3,813 | (1,556) |
Total return swaps | Included in net realized and unrealized investment gains and losses [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in income | 464 | (1,096) | 1,390 |
Interest rate swaps | Included in net realized and unrealized investment gains and losses [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in income | 1,105 | 10,981 | (8,101) |
TBAs | Included in net realized and unrealized investment gains and losses [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in income | 4,742 | 6,366 | 2,877 |
Other | Included in net realized and unrealized investment gains and losses [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in income | $ 0 | $ 0 | $ 2,493 |
Derivatives - Offsetting (Detai
Derivatives - Offsetting (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Offsetting (Details) [Abstract] | |||
Gross amounts of recognized, asset | [1] | $ 26,807 | $ 18,751 |
Gross amount offset in the balance sheet | 0 | 0 | |
Net amounts of asset/ liabilities presented in the balance sheet, asset | 26,807 | 18,751 | |
Gross amounts not offset in the balance sheet, financial instruments, asset | (1,142) | (794) | |
Gross amounts not offset in the balance sheet, cash collateral received/ pledged | (43,943) | (34,120) | |
Net amount, asset | (18,278) | (16,163) | |
Gross amounts of recognized, liability | [1] | (36,486) | (24,044) |
Gross amount offset in the balance sheet | 0 | 0 | |
Net amounts presented in the balance sheet, liability | 36,486 | 24,044 | |
Gross amounts not offset in the balance sheet, financial instruments, liability | 1,142 | 794 | |
Gross amounts not offset in the balance sheet, cash collateral received | 25,389 | 22,923 | |
Net amount, liability | $ 9,955 | $ 327 | |
[1] | Amounts include all derivative instruments, irrespective of whether there is a legally enforceable master netting arrangement in place. |
Goodwill and Intangible Asset65
Goodwill and Intangible Assets Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill And Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ (24,646) | $ (25,919) | $ (26,593) |
Goodwill [Member] | |||
Goodwill And Intangible Assets [Line Items] | |||
Balance at January 1 | 456,380 | 456,380 | |
Balance at December 31 | 456,380 | 456,380 | 456,380 |
Definite Lived Intangible Assets [Member] | |||
Goodwill And Intangible Assets [Line Items] | |||
Balance at January 1 | 99,742 | 125,661 | |
Finite-lived Intangible Assets Acquired | 75,583 | ||
Amortization of intangible assets | (24,646) | (25,919) | |
Balance at December 31 | 150,679 | 99,742 | 125,661 |
Indefinite Lived Intangible Assets [Member] | |||
Goodwill And Intangible Assets [Line Items] | |||
Balance at January 1 | 7,350 | 7,350 | |
Indefinite-lived Intangible Assets Acquired | 2,205 | ||
Balance at December 31 | 9,555 | 7,350 | 7,350 |
Total intangible assets [Member] | |||
Goodwill And Intangible Assets [Line Items] | |||
Balance at January 1 | 107,092 | 133,011 | |
Finite and Indefinite Lived Intangible Assets Acquired | 77,788 | ||
Amortization of intangible assets | (24,646) | (25,919) | |
Balance at December 31 | $ 160,234 | $ 107,092 | $ 133,011 |
Goodwill and Intangible Asset66
Goodwill and Intangible Assets - Gross Values And Amortization Of Intangible Assets - (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill And Intangible Assets [Line Items] | ||
Gross intangible assets excluding goodwill | $ 387,905 | $ 310,117 |
Accumulated amortization | 227,671 | 203,025 |
Intangible assets | 160,234 | 107,092 |
Definite Lived Intangible Assets [Member] | ||
Goodwill And Intangible Assets [Line Items] | ||
Gross intangible assets excluding goodwill | 378,350 | 302,767 |
Accumulated amortization | 227,671 | 203,025 |
Intangible assets | 150,679 | 99,742 |
Definite Lived Intangible Assets [Member] | Unpaid losses and loss expenses | ||
Goodwill And Intangible Assets [Line Items] | ||
Gross intangible assets excluding goodwill | 191,196 | 191,196 |
Accumulated amortization | 168,581 | 157,842 |
Intangible assets | $ 22,615 | 33,354 |
Finite-Lived Intangible Asset, Useful Life | 11 years | |
Definite Lived Intangible Assets [Member] | Renewal rights | ||
Goodwill And Intangible Assets [Line Items] | ||
Gross intangible assets excluding goodwill | $ 48,163 | 48,163 |
Accumulated amortization | 27,909 | 23,404 |
Intangible assets | $ 20,254 | 24,759 |
Finite-Lived Intangible Asset, Useful Life | 13 years | |
Definite Lived Intangible Assets [Member] | Customer relationships | ||
Goodwill And Intangible Assets [Line Items] | ||
Gross intangible assets excluding goodwill | $ 63,408 | 63,408 |
Accumulated amortization | 29,353 | 21,779 |
Intangible assets | $ 34,055 | 41,629 |
Finite-Lived Intangible Asset, Useful Life | 13 years | |
Definite Lived Intangible Assets [Member] | Life VOBA | ||
Goodwill And Intangible Assets [Line Items] | ||
Gross intangible assets excluding goodwill | $ 75,583 | 0 |
Accumulated amortization | 1,828 | 0 |
Intangible assets | $ 73,755 | 0 |
Finite-Lived Intangible Asset, Useful Life | 100 years | |
Indefinite Lived Intangible Assets [Member] | Insurance licenses | ||
Goodwill And Intangible Assets [Line Items] | ||
Gross intangible assets excluding goodwill | $ 9,555 | 7,350 |
Intangible assets | $ 9,555 | $ 7,350 |
Goodwill and Intangible Asset67
Goodwill and Intangible Assets - Allocation to Segments (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Goodwill Allocation to Segments [Line Items] | ||
Goodwill | $ 456,380 | $ 456,380 |
Non Life | P&C | ||
Goodwill Allocation to Segments [Line Items] | ||
Goodwill | 241,530 | |
Non Life | Specialty | ||
Goodwill Allocation to Segments [Line Items] | ||
Goodwill | 196,047 | |
Life and Health | ||
Goodwill Allocation to Segments [Line Items] | ||
Goodwill | $ 18,803 |
Goodwill and Intangible Asset68
Goodwill and Intangible Assets - Future Amortization of Finite Intangibles (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2,018 | $ 23,351 |
2,019 | 19,946 |
2,020 | 12,395 |
2,021 | 8,406 |
2,022 | 8,499 |
Total | $ 72,597 |
Goodwill and Intangible Asset69
Goodwill and Intangible Assets - Narrative Disclosures (Details) $ in Millions, $ in Millions | Apr. 03, 2017USD ($) | Apr. 03, 2017CAD ($) | Dec. 31, 2017USD ($) |
Goodwill And Intangible Assets [Line Items] | |||
Payments to Acquire Businesses, Gross | $ 278 | $ 370 | |
Business Combination, Bargain Purchase, Gain Recognized, Amount | $ 1 | ||
Life VOBA | |||
Goodwill And Intangible Assets [Line Items] | |||
Finite-lived Intangible Assets Acquired | 76 | ||
Insurance licenses | |||
Goodwill And Intangible Assets [Line Items] | |||
Finite-lived Intangible Assets Acquired | $ 2 | ||
Aurigen Capital Limited | |||
Goodwill And Intangible Assets [Line Items] | |||
Percentage of voting interests acquired | 100.00% | 100.00% |
Non-life and Life and Health 70
Non-life and Life and Health Reserves - Components of Non-life reserves (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Gross liability for non-life reserves | ||||
Case reserves | $ 4,176,879 | $ 3,883,926 | ||
ACRs | 176,369 | 166,913 | ||
IBNR reserves | 5,357,209 | 4,934,595 | ||
Non-life reserves | $ 9,710,457 | $ 8,985,434 | $ 9,064,711 | $ 9,745,806 |
Non-life and Life and Health 71
Non-life and Life and Health Reserves - Non Life loss and loss expenses rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Non-Life loss and loss expenses rollforward [Abstract] | |||
Gross liability at beginning of year | $ 8,985,434 | $ 9,064,711 | $ 9,745,806 |
Reinsurance recoverable at beginning of year | 266,742 | 189,234 | 214,349 |
Net liability at beginning of year | 8,718,692 | 8,875,477 | 9,531,457 |
Current year | 3,022,926 | 2,997,394 | 3,023,704 |
Prior years | (448,158) | (676,574) | (830,705) |
Total Non-life Incurred Claims | 2,574,768 | 2,320,820 | 2,192,999 |
Change in Paris Re Reserve Agreement | (3,481) | 5,518 | (8,771) |
Current year | 396,927 | 331,785 | 250,720 |
Prior years | 2,278,603 | 1,931,131 | 2,171,883 |
Total Non-life Claims Paid | 2,675,530 | 2,262,916 | 2,422,603 |
Effects of foreign exchange rate changes | 407,328 | (220,207) | (417,605) |
Net liability at end of year | 9,021,777 | 8,718,692 | 8,875,477 |
Reinsurance recoverable at end of year | 688,680 | 266,742 | 189,234 |
Gross liability at end of year | $ 9,710,457 | $ 8,985,434 | $ 9,064,711 |
Non-life and Life and Health 72
Non-life and Life and Health Reserves - Net favorable prior year loss development (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Total net favorable prior year loss development | $ 448,158 | $ 676,574 | $ 830,705 |
P&C | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Total net favorable prior year loss development | 204,172 | 389,672 | 473,564 |
Specialty | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Total net favorable prior year loss development | $ 243,986 | $ 286,902 | $ 357,141 |
Non-life and Life and Health 73
Non-life and Life and Health Reserves - Guaranteed reserves, asbestos, and environmental claims and narrative (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Guaranteed Reserves | $ 426 | $ 496 |
Minimum | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Interest rate assumption | 0.00% | 0.00% |
Maximum | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Interest rate assumption | 7.00% | 7.00% |
Life and Health | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Liability for Asbestos and Environmental Claims, Net | $ 134 | $ 166 |
Liability for Asbestos and Environmental Claims, Gross | 142 | 176 |
Life and Health | Asbestos Liabilities Of Paris Re | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Liability for Asbestos and Environmental Claims, Gross | 96 | 113 |
Life and Health | Asbestos Liabilities Of PartnerRe Europe and PartnerRe US | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Liability for Asbestos and Environmental Claims, Gross | $ 46 | $ 63 |
Non-life and Life and Health 74
Non-life and Life and Health Reserves - Loss and loss expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of loss and loss expense | |||
Gross liability at beginning of period | $ 1,984,096 | $ 2,051,935 | |
Reinsurance recoverable at beginning of period | 31,372 | 42,773 | |
Net liability at beginning of period | 1,952,724 | 2,009,162 | |
Liability acquired related to the acquisition of Aurigen | 67,916 | 0 | |
Net incurred losses | 3,840,982 | 3,248,091 | $ 3,157,420 |
Net losses paid | (396,927) | (331,785) | (250,720) |
Effects of foreign exchange rate changes | 407,328 | (220,207) | (417,605) |
Net liability at end of period | 2,449,869 | 1,952,724 | 2,009,162 |
Reinsurance recoverable at end of period | 40,605 | 31,372 | 42,773 |
Gross liability at end of period | 2,490,474 | 1,984,096 | 2,051,935 |
Non Life | |||
Reconciliation of loss and loss expense | |||
Net incurred losses | 2,574,768 | 2,320,820 | 2,192,999 |
Life and Health | |||
Reconciliation of loss and loss expense | |||
Net incurred losses | 1,266,214 | 927,271 | $ 964,421 |
Net losses paid | (1,017,673) | (844,156) | |
Effects of foreign exchange rate changes | $ 180,688 | $ (139,553) |
Non-life and Life and Health 75
Non-life and Life and Health Reserves - Claims development (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Claims Development [Line Items] | ||||||
Net liability at end of year | $ 8,458,625 | |||||
Non Life | ||||||
Claims Development [Line Items] | ||||||
Net incurred losses and loss expenses | 15,550,847 | |||||
Net paid losses and loss expenses | 9,162,791 | |||||
Net reserves for Accident Years and exposures included in the triangles | 6,388,056 | |||||
All outstanding liabilities before Accident Year 2012, net of reinsurance | 2,070,569 | |||||
Net liability at end of year | 8,458,625 | |||||
Total of IBNR plus expected development on reported claims | $ 4,086,148 | |||||
Year One | 12.00% | |||||
Year Two | 39.00% | |||||
Year Three | 15.00% | |||||
Year Four | 8.00% | |||||
Year Five | 5.00% | |||||
Year Six | 4.00% | |||||
Non Life | 2012 | ||||||
Claims Development [Line Items] | ||||||
Net incurred losses and loss expenses | $ 2,227,260 | $ 2,196,626 | $ 2,228,953 | $ 2,336,917 | $ 2,493,810 | $ 2,685,454 |
Net paid losses and loss expenses | 1,831,483 | 1,739,820 | 1,635,334 | 1,466,177 | 1,076,536 | 290,902 |
Total of IBNR plus expected development on reported claims | 156,038 | |||||
Non Life | 2013 | ||||||
Claims Development [Line Items] | ||||||
Net incurred losses and loss expenses | 2,483,294 | 2,518,691 | 2,573,105 | 2,753,196 | 2,925,140 | |
Net paid losses and loss expenses | 2,015,049 | 1,883,432 | 1,679,371 | 1,320,171 | 249,309 | |
Total of IBNR plus expected development on reported claims | 233,607 | |||||
Non Life | 2014 | ||||||
Claims Development [Line Items] | ||||||
Net incurred losses and loss expenses | 2,518,203 | 2,551,470 | 2,664,647 | 2,882,914 | ||
Net paid losses and loss expenses | 1,860,577 | 1,648,748 | 1,338,380 | 310,960 | ||
Total of IBNR plus expected development on reported claims | 319,931 | |||||
Non Life | 2015 | ||||||
Claims Development [Line Items] | ||||||
Net incurred losses and loss expenses | 2,544,179 | 2,650,862 | 2,941,159 | |||
Net paid losses and loss expenses | 1,655,681 | 1,247,343 | 310,031 | |||
Total of IBNR plus expected development on reported claims | 484,936 | |||||
Non Life | 2016 | ||||||
Claims Development [Line Items] | ||||||
Net incurred losses and loss expenses | 2,743,531 | 2,978,955 | ||||
Net paid losses and loss expenses | 1,402,948 | 333,673 | ||||
Total of IBNR plus expected development on reported claims | 771,217 | |||||
Non Life | 2017 | ||||||
Claims Development [Line Items] | ||||||
Net incurred losses and loss expenses | 3,034,380 | |||||
Net paid losses and loss expenses | 397,053 | |||||
Total of IBNR plus expected development on reported claims | 2,120,419 | |||||
Non Life | Property | ||||||
Claims Development [Line Items] | ||||||
Net incurred losses and loss expenses | 3,847,495 | |||||
Net paid losses and loss expenses | 2,611,561 | |||||
Net reserves for Accident Years and exposures included in the triangles | 1,235,934 | |||||
All outstanding liabilities before Accident Year 2012, net of reinsurance | 201,339 | |||||
Net liability at end of year | 1,437,273 | |||||
Total of IBNR plus expected development on reported claims | $ 627,736 | |||||
Year One | 20.00% | |||||
Year Two | 48.00% | |||||
Year Three | 17.00% | |||||
Year Four | 6.00% | |||||
Year Five | 3.00% | |||||
Year Six | 2.00% | |||||
Non Life | Property | 2012 | ||||||
Claims Development [Line Items] | ||||||
Net incurred losses and loss expenses | $ 567,563 | 567,870 | 583,371 | 600,278 | 679,274 | 681,580 |
Net paid losses and loss expenses | 520,927 | 511,821 | 500,313 | 464,879 | 368,126 | 102,351 |
Total of IBNR plus expected development on reported claims | 15,272 | |||||
Non Life | Property | 2013 | ||||||
Claims Development [Line Items] | ||||||
Net incurred losses and loss expenses | 546,345 | 550,840 | 566,525 | 600,178 | 704,000 | |
Net paid losses and loss expenses | 510,813 | 491,978 | 456,511 | 351,048 | 91,935 | |
Total of IBNR plus expected development on reported claims | 4,825 | |||||
Non Life | Property | 2014 | ||||||
Claims Development [Line Items] | ||||||
Net incurred losses and loss expenses | 461,719 | 464,515 | 486,918 | 532,197 | ||
Net paid losses and loss expenses | 427,187 | 400,247 | 333,809 | 95,806 | ||
Total of IBNR plus expected development on reported claims | 6,259 | |||||
Non Life | Property | 2015 | ||||||
Claims Development [Line Items] | ||||||
Net incurred losses and loss expenses | 542,180 | 567,709 | 609,235 | |||
Net paid losses and loss expenses | 456,828 | 365,650 | 97,678 | |||
Total of IBNR plus expected development on reported claims | 17,187 | |||||
Non Life | Property | 2016 | ||||||
Claims Development [Line Items] | ||||||
Net incurred losses and loss expenses | 696,494 | 741,002 | ||||
Net paid losses and loss expenses | 470,421 | 139,423 | ||||
Total of IBNR plus expected development on reported claims | 53,275 | |||||
Non Life | Property | 2017 | ||||||
Claims Development [Line Items] | ||||||
Net incurred losses and loss expenses | 1,033,194 | |||||
Net paid losses and loss expenses | 225,385 | |||||
Total of IBNR plus expected development on reported claims | 530,918 | |||||
Non Life | Casualty | ||||||
Claims Development [Line Items] | ||||||
Net incurred losses and loss expenses | 4,643,940 | |||||
Net paid losses and loss expenses | 1,777,055 | |||||
Net reserves for Accident Years and exposures included in the triangles | 2,866,885 | |||||
All outstanding liabilities before Accident Year 2012, net of reinsurance | 1,679,085 | |||||
Net liability at end of year | 4,545,970 | |||||
Total of IBNR plus expected development on reported claims | $ 1,921,651 | |||||
Year One | 7.00% | |||||
Year Two | 15.00% | |||||
Year Three | 13.00% | |||||
Year Four | 12.00% | |||||
Year Five | 9.00% | |||||
Year Six | 10.00% | |||||
Non Life | Casualty | 2012 | ||||||
Claims Development [Line Items] | ||||||
Net incurred losses and loss expenses | $ 608,547 | 600,969 | 618,750 | 659,934 | 687,470 | 701,087 |
Net paid losses and loss expenses | 397,768 | 338,800 | 282,401 | 209,006 | 138,628 | 52,976 |
Total of IBNR plus expected development on reported claims | 102,999 | |||||
Non Life | Casualty | 2013 | ||||||
Claims Development [Line Items] | ||||||
Net incurred losses and loss expenses | 736,526 | 742,170 | 760,299 | 809,690 | 811,925 | |
Net paid losses and loss expenses | 424,092 | 353,313 | 271,242 | 162,355 | 51,808 | |
Total of IBNR plus expected development on reported claims | 179,543 | |||||
Non Life | Casualty | 2014 | ||||||
Claims Development [Line Items] | ||||||
Net incurred losses and loss expenses | 874,583 | 869,428 | 889,241 | 912,442 | ||
Net paid losses and loss expenses | 418,218 | 317,277 | 212,462 | 72,127 | ||
Total of IBNR plus expected development on reported claims | 252,944 | |||||
Non Life | Casualty | 2015 | ||||||
Claims Development [Line Items] | ||||||
Net incurred losses and loss expenses | 825,518 | 849,772 | 911,106 | |||
Net paid losses and loss expenses | 304,876 | 191,076 | 68,544 | |||
Total of IBNR plus expected development on reported claims | 326,504 | |||||
Non Life | Casualty | 2016 | ||||||
Claims Development [Line Items] | ||||||
Net incurred losses and loss expenses | 818,954 | 866,772 | ||||
Net paid losses and loss expenses | 168,303 | 35,901 | ||||
Total of IBNR plus expected development on reported claims | 426,472 | |||||
Non Life | Casualty | 2017 | ||||||
Claims Development [Line Items] | ||||||
Net incurred losses and loss expenses | 779,812 | |||||
Net paid losses and loss expenses | 63,798 | |||||
Total of IBNR plus expected development on reported claims | 633,189 | |||||
Non Life | Specialty | ||||||
Claims Development [Line Items] | ||||||
Net incurred losses and loss expenses | 7,059,412 | |||||
Net paid losses and loss expenses | 4,774,175 | |||||
Net reserves for Accident Years and exposures included in the triangles | 2,285,237 | |||||
All outstanding liabilities before Accident Year 2012, net of reinsurance | 190,145 | |||||
Net liability at end of year | 2,475,382 | |||||
Total of IBNR plus expected development on reported claims | $ 1,536,761 | |||||
Year One | 11.00% | |||||
Year Two | 50.00% | |||||
Year Three | 15.00% | |||||
Year Four | 7.00% | |||||
Year Five | 3.00% | |||||
Year Six | 2.00% | |||||
Non Life | Specialty | 2012 | ||||||
Claims Development [Line Items] | ||||||
Net incurred losses and loss expenses | $ 1,051,150 | 1,027,787 | 1,026,832 | 1,076,705 | 1,127,066 | 1,302,787 |
Net paid losses and loss expenses | 912,788 | 889,199 | 852,620 | 792,292 | 569,782 | $ 135,575 |
Total of IBNR plus expected development on reported claims | 37,767 | |||||
Non Life | Specialty | 2013 | ||||||
Claims Development [Line Items] | ||||||
Net incurred losses and loss expenses | 1,200,423 | 1,225,681 | 1,246,281 | 1,343,328 | 1,409,215 | |
Net paid losses and loss expenses | 1,080,144 | 1,038,141 | 951,618 | 806,768 | $ 105,566 | |
Total of IBNR plus expected development on reported claims | 49,239 | |||||
Non Life | Specialty | 2014 | ||||||
Claims Development [Line Items] | ||||||
Net incurred losses and loss expenses | 1,181,901 | 1,217,527 | 1,288,488 | 1,438,275 | ||
Net paid losses and loss expenses | 1,015,172 | 931,224 | 792,109 | $ 143,027 | ||
Total of IBNR plus expected development on reported claims | 60,728 | |||||
Non Life | Specialty | 2015 | ||||||
Claims Development [Line Items] | ||||||
Net incurred losses and loss expenses | 1,176,481 | 1,233,381 | 1,420,818 | |||
Net paid losses and loss expenses | 893,977 | 690,617 | $ 143,809 | |||
Total of IBNR plus expected development on reported claims | 141,245 | |||||
Non Life | Specialty | 2016 | ||||||
Claims Development [Line Items] | ||||||
Net incurred losses and loss expenses | 1,228,083 | 1,371,181 | ||||
Net paid losses and loss expenses | 764,224 | $ 158,349 | ||||
Total of IBNR plus expected development on reported claims | 291,470 | |||||
Non Life | Specialty | 2017 | ||||||
Claims Development [Line Items] | ||||||
Net incurred losses and loss expenses | 1,221,374 | |||||
Net paid losses and loss expenses | 107,870 | |||||
Total of IBNR plus expected development on reported claims | $ 956,312 |
Non-life and Life and Health 76
Non-life and Life and Health Reserves - Reconciliation of claims development to liability (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total outstanding liability for unpaid claims | $ 8,458,625 | |||
Net liability at end of year | 9,021,777 | $ 8,718,692 | $ 8,875,477 | $ 9,531,457 |
Reinsurance recoverable on unpaid claims | 688,680 | 266,742 | 189,234 | 214,349 |
Gross liability at end of year | 9,710,457 | $ 8,985,434 | $ 9,064,711 | $ 9,745,806 |
Non Life | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total outstanding liability for unpaid claims | 8,458,625 | |||
Other liabilities | 563,152 | |||
Non Life | Property | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total outstanding liability for unpaid claims | 1,437,273 | |||
Reinsurance recoverable on unpaid claims | 453,656 | |||
Non Life | Casualty | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total outstanding liability for unpaid claims | 4,545,970 | |||
Reinsurance recoverable on unpaid claims | 40,920 | |||
Non Life | Specialty | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total outstanding liability for unpaid claims | 2,475,382 | |||
Reinsurance recoverable on unpaid claims | $ 194,105 |
Reinsurance (Details)
Reinsurance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Premiums Written, Net [Abstract] | |||
Gross premiums written | $ 5,587,894 | $ 5,356,942 | $ 5,547,525 |
Ceded | 467,968 | 403,472 | 317,977 |
Net | 5,119,926 | 4,953,470 | 5,229,548 |
Premiums earned | |||
Assumed | 5,471,546 | 5,343,831 | 5,570,321 |
Ceded | 446,565 | 374,235 | 301,143 |
Net premiums earned | 5,024,981 | 4,969,596 | 5,269,178 |
Loss and Loss Expenses and Life Policy Benefits | |||
Assumed | 4,458,290 | 3,412,648 | 3,215,665 |
Ceded | 617,308 | 164,557 | 58,245 |
Net | 3,840,982 | 3,248,091 | $ 3,157,420 |
Allowance for reinsurance recoverable | |||
Allowance for uncollectible reinsurance recoverable [Line Items] | |||
Allowance for uncollectible reinsurance recoverable | $ 0 | $ 12,000 |
Debt - Summary of debt outstand
Debt - Summary of debt outstanding (Details) € in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2016USD ($) | Nov. 01, 2016USD ($) | |
Debt Instrument [Line Items] | ||||
Debt related to senior notes | $ 1,384,824 | $ 1,273,883 | ||
Debt related to capital efficient notes | 70,989 | 70,989 | ||
Senior Notes | Notes Issued By Partner Re Finance A LLC [Member] | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt instrument | $ 250,000 | |||
Stated interest rate of debt instrument | 6.875% | |||
Senior Notes | Notes Issued By Partner Re Finance B LLC [Member] | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt instrument | $ 500,000 | |||
Stated interest rate of debt instrument | 5.50% | 5.50% | ||
Debt instrument issuance date | Mar. 10, 2010 | |||
Maturity date | Jun. 1, 2020 | |||
Senior Notes | Notes Issued By Partner Re Ireland dac [Domain] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument issuance date | Sep. 15, 2016 | |||
Senior Notes | Notes Issued By Partner Re Finance II Inc [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument issuance date | Nov. 7, 2006 | |||
2016 Euro Senior Notes | PartnerRe Ireland Finance DAC [Member] | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt instrument | € | € 750,000 | |||
Stated interest rate of debt instrument | 1.25% | 1.25% | ||
Maturity date | Sep. 15, 2026 | |||
Capital efficient notes | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt instrument | $ 63,384 | |||
Carrying Value | ||||
Debt Instrument [Line Items] | ||||
Debt related to senior notes | 1,384,824 | 1,273,883 | ||
Carrying Value | Senior Notes | Notes Issued By Partner Re Finance B LLC [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt related to senior notes | 500,000 | 500,000 | ||
Carrying Value | 2016 Euro Senior Notes | PartnerRe Ireland Finance DAC [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt related to senior notes | 884,824 | 773,883 | ||
Carrying Value | Capital efficient notes | ||||
Debt Instrument [Line Items] | ||||
Debt related to capital efficient notes | 70,989 | 70,989 | ||
Fair Value | Significant other observable inputs (Level 2) | ||||
Debt Instrument [Line Items] | ||||
Debt related to senior notes | 1,416,896 | 1,300,644 | ||
Fair Value | Significant other observable inputs (Level 2) | Senior Notes | Notes Issued By Partner Re Finance B LLC [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt related to senior notes | 534,179 | 547,145 | ||
Fair Value | Significant other observable inputs (Level 2) | 2016 Euro Senior Notes | PartnerRe Ireland Finance DAC [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt related to senior notes | 882,717 | 753,499 | ||
Fair Value | Significant other observable inputs (Level 2) | Capital efficient notes | ||||
Debt Instrument [Line Items] | ||||
Debt related to capital efficient notes | $ 61,271 | $ 66,817 |
Debt - Narrative (Details)
Debt - Narrative (Details) € in Thousands, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2009USD ($) | Dec. 31, 2017EUR (€) | Nov. 01, 2016USD ($) | Nov. 07, 2006USD ($) | |
Debt Instrument [Line Items] | |||||||
Redemption of senior notes | $ 207,130 | $ 271,961 | $ 0 | ||||
Interest paid | 40,989 | 46,417 | 49,259 | ||||
Loss on redemption of senior notes | $ (1,566) | (22,203) | $ 0 | ||||
Senior Notes | Notes Issued By Partner Re Finance B LLC [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument issuance date | Mar. 10, 2010 | ||||||
Face amount of debt instrument | $ 500,000 | ||||||
Stated interest rate of debt instrument | 5.50% | 5.50% | |||||
Maturity date | Jun. 1, 2020 | ||||||
Senior Notes | Notes Issued To Partner Re Finance B LLC [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate of debt instrument | 5.50% | 5.50% | |||||
Maturity date | Jun. 1, 2020 | ||||||
Payment frequency | semi-annually | ||||||
Senior Notes | Notes Issued By Partner Re Finance A LLC [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of debt instrument | $ 250,000 | ||||||
Stated interest rate of debt instrument | 6.875% | ||||||
Senior Notes | Notes Issued To Partner Re Finance A LLC [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Redemption of senior notes | 272,000 | ||||||
Loss on redemption of senior notes | $ (22,000) | ||||||
Senior Notes | Notes Issued By Partner Re Finance II Inc [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument issuance date | Nov. 7, 2006 | ||||||
2016 Euro Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt Issuance Percentage of Fair Value | 99.144% | ||||||
2016 Euro Senior Notes | PartnerRe Ireland Finance DAC [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of debt instrument | € | € 750,000 | ||||||
Stated interest rate of debt instrument | 1.25% | 1.25% | |||||
Maturity date | Sep. 15, 2026 | ||||||
Payment frequency | annually | ||||||
Capital efficient notes | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of debt instrument | $ 63,384 | ||||||
Capital efficient notes | Notes Issued By Partner Re Finance II Inc [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Carrying amount at balance sheet date | $ 63,000 | ||||||
Amount of debt extinguished | $ 187,000 | ||||||
Maturity date range start | Dec. 1, 2016 | ||||||
Maturity date range end | Dec. 1, 2066 | ||||||
Capital efficient notes | Notes Issued By Partner Re Finance II Inc [Member] | Original Debt Issuance Date [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of debt instrument | $ 250,000 | ||||||
Capital efficient notes | Notes Issued By Partner Re Finance II Inc [Member] | June 1, 2007 - December 1, 2016 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Payment frequency | semi-annually | ||||||
Capital efficient notes | Notes Issued By Partner Re Finance II Inc [Member] | December 1, 2016 - December 1, 2066 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate of debt instrument | 6.44% | 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 | Notes Issued To Partner Re Finance II Inc [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of debt instrument | $ 258,000 | ||||||
Maturity date | Dec. 1, 2066 | ||||||
Carrying amount at balance sheet date | $ 71,000 | ||||||
Amount of debt extinguished | $ 187,000 | ||||||
Capital efficient notes | Notes Issued To Partner Re Finance II Inc [Member] | December 1, 2016 - December 1, 2066 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Reference rate for variable rate interest payments | 3-month LIBOR | ||||||
Optional Payment Deferral Period | 10 years | ||||||
PartnerRe U.S. Corporation [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Percentage Ownership | 100.00% |
Shareholders' Equity - Authoriz
Shareholders' Equity - Authorized share capital and common shares (Details) - USD ($) | Mar. 18, 2016 | Dec. 31, 2017 | Dec. 31, 2016 |
Authorized Shares [Abstract] | |||
Authorized Share Capital Value | $ 200,000,000 | $ 200,000,000 | |
Common Shares [Abstract] | |||
Merger price per share | $ 137.50 | ||
Special dividend per share | $ 3 | ||
Percentage ownership | 100.00% | ||
Common shares, shares issued | 1 | 100,000,000 | 100,000,000 |
Common shares, par value | $ 1 | $ 0.00 | $ 0.00 |
Total share capital | $ 1 |
Shareholders' Equity - Redeemab
Shareholders' Equity - Redeemable preferred shares (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 18, 2016 | Nov. 30, 2016 | May 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Nov. 01, 2016 | |
Class of Stock [Line Items] | |||||||
Preferred shares, par value | $ 1 | $ 1 | |||||
Preferred shares, shares outstanding | 28,169,062 | 28,169,062 | |||||
Underwriting discounts and commissions | [1] | $ 23,600 | |||||
Aggregate liquidation value | $ 704,227 | $ 704,227 | $ 150,000 | ||||
Redeemable Preferred Stock Dividends | $ 2,000 | ||||||
Preferred Stock, Redemption Price Per Share | $ 25 | $ 25 | |||||
Preferred Stock Contingent Cash Payment Per Share | $ 1.25 | ||||||
PreferredStockContingentCashPayments | $ 43,000 | ||||||
Restriction on common dividends | 67.00% | 67.00% | |||||
Series D 6.5% cumulative | |||||||
Class of Stock [Line Items] | |||||||
Annual dividend rate | 6.50% | ||||||
Liquidation preference per share | $ 25 | ||||||
Preferred stock exchanged | 6,415,264 | ||||||
Preferred stock redeemed | (2,784,736) | ||||||
Series E 7.25% cumulative | |||||||
Class of Stock [Line Items] | |||||||
Annual dividend rate | 7.25% | ||||||
Liquidation preference per share | $ 25 | ||||||
Preferred stock exchanged | 11,753,798 | ||||||
Preferred stock redeemed | (3,196,202) | ||||||
Series F 5.875% non-cumulative | |||||||
Class of Stock [Line Items] | |||||||
Preferred shares, shares outstanding | 2,679,426 | ||||||
Annual dividend rate | 5.875% | ||||||
Underwriting discounts and commissions | [1] | $ 2,300 | |||||
Aggregate liquidation value | $ 67,000 | ||||||
Liquidation preference per share | $ 25 | ||||||
Preferred stock exchanged | 7,320,574 | ||||||
Series G 6.5% cumulative | |||||||
Class of Stock [Line Items] | |||||||
Preferred shares, shares outstanding | 6,415,264 | ||||||
Annual dividend rate | 6.50% | ||||||
Underwriting discounts and commissions | [1] | $ 5,400 | |||||
Aggregate liquidation value | $ 160,400 | ||||||
Liquidation preference per share | $ 25 | ||||||
Series H 7.25% cumulative | |||||||
Class of Stock [Line Items] | |||||||
Preferred shares, shares outstanding | 11,753,798 | ||||||
Annual dividend rate | 7.25% | ||||||
Underwriting discounts and commissions | [1] | $ 9,500 | |||||
Aggregate liquidation value | $ 293,800 | ||||||
Liquidation preference per share | $ 25 | ||||||
Series I 5.875% non-cumulative | |||||||
Class of Stock [Line Items] | |||||||
Preferred shares, shares outstanding | 7,320,574 | ||||||
Annual dividend rate | 5.875% | ||||||
Underwriting discounts and commissions | [1] | $ 6,400 | |||||
Aggregate liquidation value | $ 183,000 | ||||||
Liquidation preference per share | $ 25 | ||||||
[1] | nderwriting discounts and commissions represent the original amounts paid to issue Series D, E and F shares. These amounts were reallocated on a pro-rata basis between the previously issued and the newly issued shares as a result of the share exchange in May 2016 for $nil consideration described below. |
Noncontrolling interests (Detai
Noncontrolling interests (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Movement In Minority Interest [Roll Forward] | |||
Net income attributable to noncontrolling interests | $ 0 | $ 0 | $ 2,769 |
Lorenz Re | |||
Movement In Minority Interest [Roll Forward] | |||
Balance at January 1 | $ 0 | 2,450 | 55,501 |
Net income attributable to noncontrolling interests | 0 | 2,769 | |
Distribution to noncontrolling interests | (2,450) | (55,820) | |
Balance at December 31 | $ 0 | $ 2,450 |
Dividend Restrictions and Sta83
Dividend Restrictions and Statutory Requirements (Details) $ in Millions, $ in Millions | Mar. 18, 2016 | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017SGD ($) |
Statutory Accounting Practices [Line Items] | |||||
Restriction on common dividends | 67.00% | 67.00% | |||
Partner Reinsurance [Member] | |||||
Statutory Accounting Practices [Line Items] | |||||
Percent of enhanced capital requirement | 120.00% | 120.00% | |||
Statutory Amount Available For Dividend Payments | $ 1,040 | ||||
Statutory net income | (69) | $ 531 | $ 444 | ||
Required statutory capital and surplus | 1,811 | 1,578 | |||
Actual statutory capital and surplus | 3,781 | 4,159 | |||
PartnerRe Europe [Member] | |||||
Statutory Accounting Practices [Line Items] | |||||
Statutory net income | 149 | 61 | 79 | ||
Required statutory capital and surplus | 1,636 | 1,431 | |||
Actual statutory capital and surplus | $ 2,234 | 1,655 | |||
Partner Re US [Member] | |||||
Statutory Accounting Practices [Line Items] | |||||
Percent of statutory capital that can be paid as dividends | 10.00% | 10.00% | |||
Statutory net income | $ 24 | 72 | 219 | ||
Required statutory capital and surplus | 662 | 672 | |||
Actual statutory capital and surplus | $ 1,336 | 1,464 | |||
PartnerRe Asia | |||||
Statutory Accounting Practices [Line Items] | |||||
Percent of enhanced capital requirement | 120.00% | 120.00% | |||
Statutory net income | $ 15 | 43 | $ 4 | ||
Required statutory capital and surplus | 57 | 49 | $ 25 | ||
Actual statutory capital and surplus | $ 251 | $ 238 |
Taxation - Components of income
Taxation - Components of income tax expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current income tax expense [abstract] | |||
Current income tax (benefit) expense | $ 66,394 | $ 29,711 | $ 176,786 |
Deferred income tax expense (benefit) [abstract] | |||
Deferred income tax expense (benefit) | (53,164) | 9,943 | (103,749) |
Unrecognized tax expense (benefit) [abstract] | |||
Unrecognized tax (benefit) expense | (2,872) | (13,731) | 6,627 |
Income Tax Expense, Continuing Operations, by Jurisdiction [Abstract] | |||
Total income tax (benefit) expense | 10,358 | 25,923 | 79,664 |
Income Before Taxes [Abstract] | |||
Income before taxes | $ 274,379 | $ 473,231 | $ 186,814 |
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 | 11.40% | 6.90% | 58.30% |
Impact of foreign exchange (losses) gains | (3.20%) | 2.20% | 1.10% |
Unrecognized tax (benefit) expense | (1.00%) | (2.90%) | 3.50% |
Tax-exempt income and expenses not deductible | (5.20%) | (3.20%) | (8.00%) |
Foreign branch tax | (24.60%) | 0.30% | (26.80%) |
Valuation allowance | 24.80% | 0.30% | 15.20% |
Other | 1.60% | 1.90% | (0.70%) |
Actual tax rate | 3.80% | 5.50% | 42.60% |
US | |||
Current income tax expense [abstract] | |||
Current income tax (benefit) expense | $ (10,031) | $ 2,798 | $ 81,066 |
Deferred income tax expense (benefit) [abstract] | |||
Deferred income tax expense (benefit) | 5,538 | 10,070 | (59,624) |
Unrecognized tax expense (benefit) [abstract] | |||
Unrecognized tax (benefit) expense | 0 | 0 | 0 |
Income Tax Expense, Continuing Operations, by Jurisdiction [Abstract] | |||
Total income tax (benefit) expense | (4,493) | 12,868 | 21,442 |
Non-US | |||
Current income tax expense [abstract] | |||
Current income tax (benefit) expense | 76,425 | 26,913 | 95,720 |
Deferred income tax expense (benefit) [abstract] | |||
Deferred income tax expense (benefit) | (58,702) | (127) | (44,125) |
Unrecognized tax expense (benefit) [abstract] | |||
Unrecognized tax (benefit) expense | (2,872) | (13,731) | 6,627 |
Income Tax Expense, Continuing Operations, by Jurisdiction [Abstract] | |||
Total income tax (benefit) expense | 14,851 | 13,055 | 58,222 |
Domestic (Bermuda) | |||
Income Before Taxes [Abstract] | |||
Income before taxes | 82,219 | 334,559 | (63,603) |
Foreign | |||
Income Before Taxes [Abstract] | |||
Income before taxes | $ 192,160 | $ 138,672 | $ 250,417 |
Taxation - Components of Tax As
Taxation - Components of Tax Assets and Tax Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets | ||
Discounting of loss reserves and adjustment to life policy reserves | $ 34,806 | $ 49,029 |
Foreign tax credit carryforwards | 163,134 | 80,390 |
Tax loss carryforwards | 36,405 | 35,708 |
Unearned premiums | 14,425 | 25,518 |
Other deferred tax assets | 31,566 | 24,012 |
Deferred tax assets before valuation allowance | 280,336 | 214,657 |
Valuation allowance | (185,615) | (91,819) |
Deferred tax assets | 94,721 | 122,838 |
Deferred tax liabilities | ||
Deferred acquisition costs | 29,204 | 50,313 |
Goodwill and other intangibles | 70,674 | 79,606 |
Equalization reserves | 27,252 | 39,812 |
Unrealized appreciation and timing differences on investments | 13,361 | 5,946 |
Unrealized appreciation and timing differences on foreign exchange revaluations | 13,413 | 49,645 |
Other deferred tax liabilities | 8,554 | 5,600 |
Deferred tax liabilities | 162,458 | 230,922 |
Net deferred tax liabilities | (67,737) | (108,084) |
Components Of Net Tax Assets And Liabilities [Abstract] | ||
Net tax assets | 133,169 | 194,170 |
Net tax liabilities | (154,947) | (166,113) |
Net tax assets (liabilities) | (21,778) | 28,057 |
Net Tax Liabilities By Type [Abstract] | ||
Net current tax assets | 53,900 | 145,831 |
Net deferred tax liabilities | (67,737) | (108,084) |
Net unrecognized tax benefit | (7,941) | (9,690) |
Net tax assets (liabilities) | $ (21,778) | $ 28,057 |
Taxation - Income Tax Uncertai
Taxation - Income Tax Uncertainties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Contingency [Line Items] | |||
January 1 | $ 9,690 | $ 23,838 | $ 18,832 |
Changes in tax positions taken during a prior period - decrease | (14,301) | ||
Changes in tax positions taken during a prior period - increase | 1,181 | 745 | |
Tax positions taken during the current period - increase | 595 | 693 | 8,944 |
Change as a result of a lapse in the statute of limitations | (4,649) | (123) | (3,063) |
Impact of the change in foreign currency exchange rates - decrease | 417 | 1,620 | |
Impact of the change in foreign currency exchange rates - increase | 1,124 | ||
December 31 | 7,941 | 9,690 | 23,838 |
Unrecognized tax benefits that, if recognized, would impact the effective tax rate | |||
Income Tax Contingency [Line Items] | |||
January 1 | 8,722 | 22,255 | 18,266 |
Changes in tax positions taken during a prior period - decrease | (13,728) | ||
Changes in tax positions taken during a prior period - increase | 281 | 29 | |
Tax positions taken during the current period - increase | 589 | 688 | 8,683 |
Change as a result of a lapse in the statute of limitations | (4,115) | (112) | (3,039) |
Impact of the change in foreign currency exchange rates - decrease | 381 | 1,684 | |
Impact of the change in foreign currency exchange rates - increase | 983 | ||
December 31 | 6,460 | 8,722 | 22,255 |
Interest and penalties recognized on the above | |||
Income Tax Contingency [Line Items] | |||
January 1 | 968 | 1,583 | 566 |
Changes in tax positions taken during a prior period - decrease | (573) | ||
Changes in tax positions taken during a prior period - increase | 900 | 716 | |
Tax positions taken during the current period - increase | 6 | 5 | 261 |
Change as a result of a lapse in the statute of limitations | (534) | (11) | (24) |
Impact of the change in foreign currency exchange rates - decrease | 36 | ||
Impact of the change in foreign currency exchange rates - increase | 141 | 64 | |
December 31 | $ 1,481 | $ 968 | $ 1,583 |
Taxation - Narrative (Details)
Taxation - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Taxation - Other Details [Line Items] | |||
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ 5,000 | ||
Expected tax rate | 0.00% | 0.00% | 0.00% |
Deferred Tax Assets, Valuation Allowance | $ 185,615 | $ 91,819 | |
Ireland | |||
Taxation - Other Details [Line Items] | |||
Tax Credit Carryforward, Valuation Allowance | 163,000 | 80,000 | |
Deferred Tax Assets, Valuation Allowance | 7,000 | ||
Deferred tax asset carryforwards components | |||
Deferred tax asset on tax loss carryforwards | 8,000 | 1,000 | |
Hong Kong | |||
Deferred tax asset carryforwards components | |||
Deferred tax asset on tax loss carryforwards | 2,000 | 1,000 | |
Singapore | |||
Deferred tax asset carryforwards components | |||
Deferred tax asset on tax loss carryforwards | 18,000 | 20,000 | |
France | |||
Deferred tax asset carryforwards components | |||
Deferred tax asset on tax loss carryforwards | 5,000 | ||
US | |||
Taxation - Other Details [Line Items] | |||
Tax Credit Carryforward, Valuation Allowance | 7,000 | ||
Operating Loss Carryforwards, Valuation Allowance | 1,000 | ||
Canada | |||
Taxation - Other Details [Line Items] | |||
Deferred Tax Assets, Valuation Allowance | $ 10,000 | ||
Operating Loss Carryforwards, Valuation Allowance | 4,000 | ||
Deferred tax asset carryforwards components | |||
Deferred tax asset on tax loss carryforwards | $ 2,000 | ||
Carryforward period | 20 years |
Share-Based Incentives (Details
Share-Based Incentives (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Service period | 3 years | ||
Compensation expense | $ 2,000 | ||
Compensation liability | 2,000 | ||
Shares purchased by employees | 11,000 | ||
Share based compensation expense | $ 36,000 | $ 42,000 | |
Tax benefit of share-based compensation expense | 40,000 | 7,000 | |
Settlement of share-based awards upon change in control | 0 | (75,531) | 0 |
RSUs and PSUs [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Fair value of units vested | 95,000 | 22,000 | |
Additional paid-in capital | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Settlement of share-based awards upon change in control | $ 0 | $ 75,311 | $ 0 |
Retirement Benefit Arrangemen89
Retirement Benefit Arrangements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure - Defined contribution plan | |||
Incurred expense for defined contribution arrangements | $ 11,000 | $ 13,000 | $ 13,000 |
Additional information: | |||
Projected benefit obligation at end of year | 166,569 | ||
Zurich Plan | |||
Funded status: | |||
Unfunded pension obligation at beginning of year | 57,941 | 50,405 | |
Change in pension obligation: | |||
Service cost | 7,510 | 6,906 | |
Interest cost | 1,295 | 1,501 | |
Plan participants’ contributions | 2,905 | 2,704 | |
Actuarial loss | 1,483 | 8,467 | |
Plan amendments | 0 | 85 | |
Benefits paid | 2,097 | (1,756) | |
Foreign currency adjustments | 7,489 | (5,965) | |
Change in pension obligation | 18,585 | 15,454 | |
Change in fair value of plan assets: | |||
Actual return on plan assets | 1,131 | 2,011 | |
Employer contributions | 5,361 | 5,319 | |
Plan participants’ contributions | 2,905 | 2,704 | |
Benefits paid | 2,097 | (1,756) | |
Foreign currency adjustments | 4,884 | (3,872) | |
Change in fair value of plan assets | 12,184 | 7,918 | |
Funded status: | |||
Unfunded pension obligation at end of year | 64,342 | 57,941 | $ 50,405 |
Additional information: | |||
Projected benefit obligation at end of year | 185,154 | ||
Accumulated pension obligation at end of year | 172,806 | 156,803 | |
Fair value of plan assets at end of year | $ 120,812 | $ 108,628 | |
Pension obligation - assumptions used | |||
Discount rate | 0.75% | 0.75% | 1.00% |
Rate of compensation increase | 2.25% | 2.00% | 2.25% |
Net periodic benefit cost - assumptions used | |||
Discount rate | 0.75% | 1.00% | 1.25% |
Expected return on plan assets | 0.75% | 1.00% | 1.25% |
Rate of compensation increase | 2.00% | 2.25% | 2.25% |
Defined Benefit Plan Estimated Future Benefit Payments Abstract | |||
2,018 | $ 4,751 | ||
2,019 | 4,657 | ||
2,020 | 4,666 | ||
2,021 | 5,754 | ||
2,022 | 5,721 | ||
2023 to 2027 | $ 36,040 |
Retirement Benefit Arrangemen90
Retirement Benefit Arrangements (Details - Other Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
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 | $ 121,000 | ||
Zurich Plan | |||
Defined Benefit Plan Plan Assets [Line Items] | |||
Fair value of plan assets at end of year | 120,812 | $ 108,628 | |
Defined Benefit Plan Other Details [Abstract] | |||
Net amounts recognized in accumulated other comprehensive income | 34,000 | 32,000 | |
Tax on amounts recognized in accumulated other comprehensive income | 10,000 | 9,000 | |
Net periodic benefit cost | 11,000 | 10,000 | $ 10,000 |
Estimated contributions for next fiscal year | $ 5,000 | ||
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. | ||
Zurich Plan | 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 | $ 109,000 |
Commitments and Contingencies91
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Provision for uncollectible premiums receivable | $ 5,000 | $ 5,000 | |
Rent expense | 26,000 | 25,400 | $ 23,200 |
IT and computer agreements and lease contracts | 23,000 | ||
Charge for executive changes, pre-tax | 34,000 | ||
Lease arrangements [abstract] | |||
2,018 | 17,195 | ||
2,019 | 11,247 | ||
2,020 | 9,277 | ||
2,021 | 9,256 | ||
2,022 | 8,895 | ||
2023-2029 | 38,947 | ||
Total future minimum rental payments | 94,817 | ||
Total future sub-lease rental income through 2019 | 2,556 | ||
Strategic Investments [Member] | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
2,018 | 109,000 | ||
2,019 | 92,000 | ||
2,020 | 63,000 | ||
2,021 | 51,000 | ||
Total | 315,000 | ||
Structured Letter Of Credit [Member] | |||
Commitments and Contingencies Other Details [Line Items] | |||
LOC obligations guaranteed as of balance sheet date | $ 67,000 | $ 62,000 | |
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, 2017USD ($) | |
Credit Agreements Details [Line Items] | |
Total amount of credit facilities available | $ 689 |
Outstanding Unsecured Letter Of Credit [Member] | |
Credit Agreements Details [Line Items] | |
Letters Of Credit Outstanding Amount | 114 |
Outstanding Secured Letter Of Credit [Member] | |
Credit Agreements Details [Line Items] | |
Letters Of Credit Outstanding Amount | 474 |
Combined Credit Facility [Member] | |
Credit Agreements Details [Line Items] | |
Total amount of credit facilities available | 300 |
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 | $ 225 |
Maturity date of facility | Dec. 31, 2021 |
Committed Secured Letter Of Credit Facility B [Member] | |
Credit Agreements Details [Line Items] | |
Total amount of credit facilities available | $ 80 |
Maturity date of facility | Dec. 31, 2018 |
Related Party Transactions (Det
Related Party Transactions (Details) € in Thousands, $ in Thousands, £ in Millions | Mar. 24, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017GBP (£) | Dec. 31, 2016USD ($) | Dec. 31, 2017EUR (€) | Apr. 01, 2016EUR (€) |
Related Party Transaction [Line Items] | |||||||
Payments to Acquire Real Estate and Real Estate Joint Ventures | $ 83,000 | £ 55 | |||||
Investments in real estate | $ 0 | 83,098 | $ 0 | ||||
EXOR Nederland NV [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Dividends Paid by PartnerRe Ltd. | 250,000 | 145,000 | |||||
Related Party Advisory Services Agreement | 500 | € 300 | |||||
Related Party Consulting Services Agreement | € | € 45 | ||||||
Director [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Related Party Consulting Services Agreement | 500 | ||||||
Almacantar Group S.A. | EXOR S.A. [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 36.00% | ||||||
Purchase price | $ 539,000 | ||||||
Private equity funds | EXOR S.A. [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Related Party Investment Carrying Value | 551,000 | ||||||
Equity Method Investments [Member] | Almacantar Group S.A. | |||||||
Related Party Transaction [Line Items] | |||||||
Related Party Investment Carrying Value | $ 436,000 | 538,000 | 436,000 | ||||
Mutual funds and exchange traded funds | |||||||
Related Party Transaction [Line Items] | |||||||
Payments to acquire investments | 500,000 | ||||||
Mutual funds and exchange traded funds | EXOR S.A. [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Payments to acquire investments | $ 500,000 | ||||||
Private equity funds | EXOR S.A. [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Financial Instruments Purchased, Cost | $ 202,000 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017USD ($)Segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | ||
Segment Reporting [Line Items] | ||||
Number of segments | Segment | 3 | |||
Gross premiums written | $ 5,587,894 | $ 5,356,942 | $ 5,547,525 | |
Net premiums written | 5,119,926 | 4,953,470 | 5,229,548 | |
Decrease (increase) in unearned premiums | (94,945) | 16,126 | 39,630 | |
Net premiums earned | 5,024,981 | 4,969,596 | 5,269,178 | |
Losses and loss expenses and life policy benefits | (3,841,000) | (3,248,000) | (3,157,000) | |
Acquisition costs | (1,119,773) | (1,186,602) | (1,217,003) | |
Technical result | 64,000 | 535,000 | 895,000 | |
Other income | 15,242 | 15,232 | 9,144 | |
Other expenses | (348,398) | (471,905) | (790,723) | |
Underwriting result | (269,000) | 78,000 | 113,000 | |
Net investment income | 402,071 | 410,864 | 449,784 | |
Net realized and unrealized investment gains (losses) | 232,491 | 26,266 | (297,479) | |
Interest expense | (42,500) | (48,603) | (48,988) | |
Loss on redemption of debt | 1,566 | 22,203 | 0 | |
Amortization of intangible assets | (24,646) | (25,919) | (26,593) | |
Net foreign exchange losses (gains) | 108,244 | (77,515) | 9,461 | |
Interest in earnings (losses) of equity method investments | (10,358) | (25,923) | (79,664) | |
Interest in earnings (losses) of equity method investments | 85,703 | (22,919) | 6,375 | |
Net income | 264,021 | 447,308 | 107,150 | |
Non Life | ||||
Segment Reporting [Line Items] | ||||
Gross premiums written | 4,189,000 | 4,189,000 | 4,277,000 | |
Net premiums written | 3,776,000 | 3,837,000 | 4,022,000 | |
Decrease (increase) in unearned premiums | (88,000) | 16,000 | 38,000 | |
Net premiums earned | 3,688,000 | 3,853,000 | 4,060,000 | |
Losses and loss expenses and life policy benefits | (2,575,000) | (2,321,000) | (2,193,000) | |
Acquisition costs | (984,000) | (1,056,000) | (1,064,000) | |
Technical result | 129,000 | 476,000 | 803,000 | |
Other income | (1,000) | 2,000 | 0 | |
Other expenses | (104,000) | (229,000) | (219,000) | |
Underwriting result | $ 24,000 | $ 249,000 | $ 584,000 | |
Reinsurance Ratios [Abstract] | ||||
Loss ratio | 69.80% | [1] | 60.30% | 54.00% |
Acquisition Cost Ratio | 26.70% | [2] | 27.40% | 26.20% |
Technical Ratio Percentage | 96.50% | [3] | 87.70% | 80.20% |
General and Administrative Expense Ratio | 2.80% | [4] | 5.90% | 5.40% |
Combined Ratio | 99.30% | [5] | 93.60% | 85.60% |
Non Life | P&C | ||||
Segment Reporting [Line Items] | ||||
Gross premiums written | $ 2,255,000 | $ 2,269,000 | $ 2,371,000 | |
Net premiums written | 1,996,000 | 2,061,000 | 2,236,000 | |
Decrease (increase) in unearned premiums | (33,000) | 25,000 | 4,000 | |
Net premiums earned | 1,963,000 | 2,086,000 | 2,240,000 | |
Losses and loss expenses and life policy benefits | (1,620,000) | (1,248,000) | (1,129,000) | |
Acquisition costs | (495,000) | (556,000) | (570,000) | |
Technical result | (152,000) | 282,000 | 541,000 | |
Other income | 0 | 3,000 | 0 | |
Other expenses | (71,000) | (141,000) | (137,000) | |
Underwriting result | $ (223,000) | $ 144,000 | $ 404,000 | |
Reinsurance Ratios [Abstract] | ||||
Loss ratio | 82.60% | [1] | 59.80% | 50.40% |
Acquisition Cost Ratio | 25.20% | [2] | 26.70% | 25.40% |
Technical Ratio Percentage | 107.80% | [3] | 86.50% | 75.80% |
General and Administrative Expense Ratio | 3.60% | [4] | 6.70% | 6.20% |
Combined Ratio | 111.40% | [5] | 93.20% | 82.00% |
Non Life | Specialty | ||||
Segment Reporting [Line Items] | ||||
Gross premiums written | $ 1,934,000 | $ 1,920,000 | $ 1,906,000 | |
Net premiums written | 1,780,000 | 1,776,000 | 1,786,000 | |
Decrease (increase) in unearned premiums | (55,000) | (9,000) | 34,000 | |
Net premiums earned | 1,725,000 | 1,767,000 | 1,820,000 | |
Losses and loss expenses and life policy benefits | (955,000) | (1,073,000) | (1,064,000) | |
Acquisition costs | (489,000) | (500,000) | (494,000) | |
Technical result | 281,000 | 194,000 | 262,000 | |
Other income | (1,000) | (1,000) | 0 | |
Other expenses | (33,000) | (88,000) | (82,000) | |
Underwriting result | $ 247,000 | $ 105,000 | $ 180,000 | |
Reinsurance Ratios [Abstract] | ||||
Loss ratio | 55.40% | [1] | 60.80% | 58.50% |
Acquisition Cost Ratio | 28.40% | [2] | 28.30% | 27.10% |
Technical Ratio Percentage | 83.80% | [3] | 89.10% | 85.60% |
General and Administrative Expense Ratio | 1.90% | [4] | 4.90% | 4.50% |
Combined Ratio | 85.70% | [5] | 94.00% | 90.10% |
Life and Health | ||||
Segment Reporting [Line Items] | ||||
Gross premiums written | $ 1,399,000 | $ 1,168,000 | $ 1,271,000 | |
Net premiums written | 1,344,000 | 1,117,000 | 1,208,000 | |
Decrease (increase) in unearned premiums | (7,000) | 0 | 1,000 | |
Net premiums earned | 1,337,000 | 1,117,000 | 1,209,000 | |
Losses and loss expenses and life policy benefits | (1,266,000) | (927,000) | (964,000) | |
Acquisition costs | (136,000) | (131,000) | (153,000) | |
Technical result | (65,000) | 59,000 | 92,000 | |
Other income | 14,000 | 10,000 | 6,000 | |
Other expenses | (61,000) | (66,000) | (63,000) | |
Underwriting result | (112,000) | 3,000 | 35,000 | |
Net investment income | 60,000 | 58,000 | 59,000 | |
Allocated underwriting result | (52,000) | 61,000 | 94,000 | |
Corporate and Other [Member] | ||||
Segment Reporting [Line Items] | ||||
Gross premiums written | 0 | 0 | 0 | |
Net premiums written | 0 | 0 | 0 | |
Decrease (increase) in unearned premiums | 0 | 0 | 0 | |
Net premiums earned | 0 | 0 | 0 | |
Losses and loss expenses and life policy benefits | 0 | 0 | ||
Acquisition costs | 0 | 0 | 0 | |
Technical result | 0 | 0 | 0 | |
Other income | 2,000 | 3,000 | 3,000 | |
Other expenses | (183,000) | (177,000) | (509,000) | |
Net investment income | 342,000 | 353,000 | 391,000 | |
Net realized and unrealized investment gains (losses) | 232,000 | 26,000 | (297,000) | |
Interest expense | (42,000) | (49,000) | (49,000) | |
Loss on redemption of debt | (2,000) | (22,000) | ||
Amortization of intangible assets | (25,000) | (26,000) | (27,000) | |
Net foreign exchange losses (gains) | 108,000 | (78,000) | 9,000 | |
Interest in earnings (losses) of equity method investments | (10,000) | (26,000) | (80,000) | |
Interest in earnings (losses) of equity method investments | $ 86,000 | $ (23,000) | $ 6,000 | |
[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. |
Segment Information (Distributi
Segment Information (Distribution of gross and net written premium) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Distribution Of Gross Premiums Written [Line Items] | |||
Distribution of gross premiums written | 100.00% | 100.00% | 100.00% |
Asia, Australia and New Zealand | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Distribution of gross premiums written | 13.00% | 12.00% | 12.00% |
Europe | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Distribution of gross premiums written | 34.00% | 36.00% | 37.00% |
Latin America, Caribbean and Africa | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Distribution of gross premiums written | 9.00% | 8.00% | 10.00% |
North America | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Distribution of gross premiums written | 44.00% | 44.00% | 41.00% |
Segment Information (Broker det
Segment Information (Broker details) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Economic Dependence [Line Items] | |||
Cedant Percentage Of Gross Written Premium | 4.00% | 4.00% | 3.00% |
Broker A [Member] | |||
Economic Dependence [Line Items] | |||
Broker Percentage Of Gross Written Premium | 22.00% | 22.00% | 19.00% |
Broker B [Member] | |||
Economic Dependence [Line Items] | |||
Broker Percentage Of Gross Written Premium | 25.00% | 22.00% | 22.00% |
Life and Health | |||
Economic Dependence [Line Items] | |||
Broker Percentage Of Gross Written Premium | 18.00% | 16.00% | 16.00% |
P&C | Non Life | |||
Economic Dependence [Line Items] | |||
Broker Percentage Of Gross Written Premium | 57.00% | 57.00% | 54.00% |
Specialty | Non Life | |||
Economic Dependence [Line Items] | |||
Broker Percentage Of Gross Written Premium | 56.00% | 46.00% | 42.00% |
Other Expenses (Details)
Other Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Expenses [Abstract] | |||
Reorganization Related Costs | $ 29 | $ 52 | |
Other Transaction Costs | $ 4 | 76 | |
Settlement Of Stock Awards On Change Of Control | 38 | ||
Charge for executive changes, pre-tax | $ 34 | ||
Termination Fee Paid | $ 315 | ||
Other Transaction And Severance Costs | 71 | ||
Change In Contingent Liability In Business Combination | $ 25 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | 2 Months Ended |
Mar. 13, 2018USD ($) | |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Dividends | $ 48 |
SCHEDULE I - Consolidated Sum99
SCHEDULE I - Consolidated Summary of Investments Other Than Investments in Related Parties (Details) - Trading securities - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Fair value | [1] | $ 13,937,427 | |
Amount at which shown in the balance sheet | [1] | 13,937,427 | |
Fixed maturities | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | [1],[2] | 12,480,569 | |
Fair value | [1] | 12,654,859 | |
Amount at which shown in the balance sheet | [1] | 12,654,859 | |
Fixed maturities | U.S. government and government sponsored enterprises | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | [1],[2] | 2,215,738 | |
Fair value | [1] | 2,205,964 | |
Amount at which shown in the balance sheet | [1] | 2,205,964 | |
Fixed maturities | U.S. states, territories and municipalities | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | [1],[2] | 648,018 | |
Fair value | [1] | 690,311 | |
Amount at which shown in the balance sheet | [1] | 690,311 | |
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],[2] | 1,696,378 | |
Fair value | [1] | 1,750,770 | |
Amount at which shown in the balance sheet | [1] | 1,750,770 | |
Fixed maturities | Corporate bonds | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | [1],[2] | 6,033,574 | |
Fair value | [1] | 6,128,636 | |
Amount at which shown in the balance sheet | [1] | 6,128,636 | |
Fixed maturities | Asset-backed securities | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | [1],[2] | 46,946 | |
Fair value | [1] | 51,703 | |
Amount at which shown in the balance sheet | [1] | 51,703 | |
Fixed maturities | Residential mortgage-backed securities | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | [1],[2] | 1,835,171 | |
Fair value | [1] | 1,822,725 | |
Amount at which shown in the balance sheet | [1] | 1,822,725 | |
Fixed maturities | Other mortgage-backed securities | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 4,744 | ||
Fair value | 4,750 | ||
Amount at which shown in the balance sheet | [1] | 4,750 | |
Equities | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | [1],[2] | 567,848 | |
Fair value | [1] | 638,596 | |
Amount at which shown in the balance sheet | [1] | 638,596 | |
Equities | Banks, trust and insurance companies | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | [1],[2] | 27,154 | |
Fair value | [1] | 40,602 | |
Amount at which shown in the balance sheet | [1] | 40,602 | |
Equities | Industrial, miscellaneous and all other | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | [1],[2] | 540,694 | |
Fair value | [1] | 597,994 | |
Amount at which shown in the balance sheet | [1] | 597,994 | |
Short-term investments | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | [1],[2] | 4,394 | |
Fair value | [1] | 4,400 | |
Amount at which shown in the balance sheet | [1] | 4,400 | |
Other invested assets | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Fair value | [1],[3] | 639,572 | |
Amount at which shown in the balance sheet | [1],[3] | 639,572 | |
Other invested assets | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Investments Not Carried At Fair Value | $ 746,000 | $ 632,000 | |
[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 $746 million |
SCHEDULE II - Condensed Balance
SCHEDULE II - Condensed Balance Sheets - Parent Company Only (Details) $ / shares in Units, € in Thousands, $ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2017EUR (€)shares | Dec. 31, 2016USD ($)$ / sharesshares | Nov. 01, 2016USD ($) | Mar. 18, 2016$ / sharesshares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | ||
Assets | ||||||||
Fixed maturities, at fair value (amortized cost: 2017, $52,406; 2016, $78,104) | $ 12,654,859 | $ 13,432,501 | ||||||
Cash and cash equivalents | 1,772,012 | 1,773,328 | $ 1,577,097 | $ 1,313,468 | ||||
Other | 41,237 | 35,105 | ||||||
Total assets | 22,980,764 | 21,938,794 | ||||||
Liabilities | ||||||||
Accounts payable, accrued expenses and other | 302,021 | 849,572 | ||||||
Total liabilities | 16,235,652 | 15,250,882 | ||||||
Shareholders’ Equity | ||||||||
Common shares (par value $0.00000001; issued: 100,000,000 shares) | 0 | 0 | ||||||
Preferred shares (par value $1.00; issued and outstanding: 28,169,062 shares; aggregate liquidation value: $704,227) | 28,169 | 28,169 | ||||||
Additional paid-in capital | 2,396,530 | 2,396,530 | ||||||
Accumulated other comprehensive loss | (90,281) | (74,569) | ||||||
Retained earnings | 4,410,694 | 4,337,782 | ||||||
Total shareholders’ equity attributable to PartnerRe Ltd. | 6,745,112 | 6,687,912 | 6,900,501 | |||||
Total liabilities and shareholders’ equity | 22,980,764 | 21,938,794 | ||||||
CondensedFinancialStatementsParentheticals [Abstract] | ||||||||
Fixed maturities, amortized cost | $ 12,480,569 | $ 13,386,557 | ||||||
Common shares, par value | $ / shares | $ 0.00 | $ 0.00 | $ 1 | |||||
Common shares, shares issued | shares | 100,000,000 | 100,000,000 | 100,000,000 | 1 | ||||
Preferred shares, par value | $ / shares | $ 1 | $ 1 | ||||||
Number of preferred shares issued | shares | 28,169,062 | 28,169,062 | 28,169,062 | |||||
Preferred shares, shares outstanding | shares | 28,169,062 | 28,169,062 | 28,169,062 | |||||
Aggregate liquidation value | $ 704,227 | $ 704,227 | $ 150,000 | |||||
Common shares held in treasury, shares | shares | 0 | 0 | 0 | |||||
Capital efficient notes | ||||||||
Parent Company Guarantee Disclosures [Abstract] | ||||||||
Face amount of debt instrument | $ 63,384 | |||||||
Senior Notes | 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% | |||||||
Face amount of debt instrument | $ 250,000 | |||||||
Senior Notes | 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% | 5.50% | ||||||
Face amount of debt instrument | $ 500,000 | |||||||
2016 Euro Senior Notes | PartnerRe Ireland Finance DAC [Member] | ||||||||
Parent Company Guarantee Disclosures [Abstract] | ||||||||
Interest rate on obligations guaranteed by the Parent Company | 1.25% | 1.25% | ||||||
Face amount of debt instrument | € | € 750,000 | |||||||
Parent Company [Member] | ||||||||
Assets | ||||||||
Fixed maturities, at fair value (amortized cost: 2017, $52,406; 2016, $78,104) | $ 51,748 | $ 77,170 | ||||||
Cash and cash equivalents | 26,681 | 23,150 | $ 94,835 | $ 371 | ||||
Investments in subsidiaries | 8,991,358 | 8,558,696 | ||||||
Intercompany loans and balances receivable | 1,135,749 | 700,965 | ||||||
Other | 4,246 | 4,394 | ||||||
Total assets | 10,209,782 | 9,364,375 | ||||||
Liabilities | ||||||||
Intercompany loans and balances payable (1) | [1] | 3,435,693 | 2,652,060 | |||||
Accounts payable, accrued expenses and other | 28,977 | 24,403 | ||||||
Total liabilities | 3,464,670 | 2,676,463 | ||||||
Shareholders’ Equity | ||||||||
Common shares (par value $0.00000001; issued: 100,000,000 shares) | 0 | 0 | ||||||
Preferred shares (par value $1.00; issued and outstanding: 28,169,062 shares; aggregate liquidation value: $704,227) | 28,169 | 28,169 | ||||||
Additional paid-in capital | 2,396,530 | 2,396,530 | ||||||
Accumulated other comprehensive loss | (90,281) | (74,569) | ||||||
Retained earnings | 4,410,694 | 4,337,782 | ||||||
Total shareholders’ equity attributable to PartnerRe Ltd. | 6,745,112 | 6,687,912 | ||||||
Total liabilities and shareholders’ equity | 10,209,782 | 9,364,375 | ||||||
CondensedFinancialStatementsParentheticals [Abstract] | ||||||||
Fixed maturities, amortized cost | $ 78,104 | $ 254,486 | ||||||
Common shares, par value | $ / shares | $ 1 | $ 1 | ||||||
Common shares, shares issued | shares | 1 | 1 | 87,237,220 | |||||
Preferred shares, par value | $ / shares | $ 1 | $ 1 | ||||||
Number of preferred shares issued | shares | 28,169,062 | 28,169,062 | 34,150,000 | |||||
Preferred shares, shares outstanding | shares | 28,169,062 | 28,169,062 | 34,150,000 | |||||
Aggregate liquidation value | $ 704,227 | $ 853,750 | ||||||
Common shares held in treasury, shares | shares | 0 | 0 | 39,303,068 | |||||
Parent Company [Member] | Capital efficient notes | Notes Issued By Partner Re Finance II Inc [Member] | FinancialGuaranteeMember | ||||||||
Parent Company Guarantee Disclosures [Abstract] | ||||||||
Guarantor Obligations, Current Carrying Value | $ 63,000 | |||||||
Interest rate on obligations guaranteed by the Parent Company | 6.44% | 6.44% | ||||||
PartnerRe Finance II [Member] | ||||||||
Parent Company Guarantee Disclosures [Abstract] | ||||||||
Percentage Ownership | 100.00% | |||||||
PartnerRe Finance B [Member] | ||||||||
Parent Company Guarantee Disclosures [Abstract] | ||||||||
Percentage Ownership | 100.00% | |||||||
[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 $63 million aggregate principal amount of 6.440% Fixed-to-Floating Rate Junior Subordinated CENts. The parent’s obligations under this guarantee are unsecured and rank junior in priority of payments to the parent’s senior notes.The parent has fully and unconditionally guaranteed all obligations of PartnerRe Finance B, indirect 100% owned finance subsidiary of the parent, and PartnerRe Finance Ireland DAC, direct 100% owned subsidiary of the parent, related to the issuance of the 5.500% senior notes and 1.250% senior notes, respectively. The parent’s obligations under these guarantees are senior and unsecured and rank equally with all other senior unsecured indebtedness of the parent. |
SCHEDULE II - Condensed Stateme
SCHEDULE II - Condensed Statements of Operations - Parent Company Only (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues | |||
Net investment income | $ 402,071 | $ 410,864 | $ 449,784 |
Net realized and unrealized investment gains (losses) | 232,491 | 26,266 | (297,479) |
Total revenues | 5,674,785 | 5,421,958 | 5,430,627 |
Expenses | |||
Other expenses | 348,398 | 471,905 | 790,723 |
Net foreign exchange (gains) losses | 108,244 | (77,515) | 9,461 |
Net income attributable to PartnerRe Ltd. | 264,021 | 447,308 | 104,381 |
Preferred dividends | 46,416 | 55,043 | 56,735 |
Loss on redemption of preferred shares | 0 | 4,908 | 0 |
Net income available to common shareholders | 217,605 | 387,357 | 47,646 |
Comprehensive income | |||
Net income attributable to PartnerRe Ltd. | 264,021 | 447,308 | 104,381 |
Total other comprehensive (loss) income, net of tax | (15,712) | 8,714 | (49,200) |
Comprehensive income | 248,309 | 456,022 | 55,181 |
Other Expenses | |||
Termination Fee Paid | 315,000 | ||
Other Transaction Costs | 4,000 | 76,000 | |
Parent Company [Member] | |||
Revenues | |||
Net investment income | 1,890 | 2,690 | 3,516 |
Interest income on intercompany loans | 12,201 | 12,109 | 12,295 |
Net realized and unrealized investment gains (losses) | 91 | 2,993 | (1,104) |
Other income | 8,418 | 2,483 | 0 |
Total revenues | 22,600 | 20,275 | 14,707 |
Expenses | |||
Other expenses | 40,131 | 116,758 | 435,404 |
Interest expense on intercompany loans | 12,085 | 7,016 | 6,243 |
Net foreign exchange (gains) losses | 35,753 | (10,788) | (3,199) |
Total expenses | 87,969 | 112,986 | 438,448 |
Loss before equity in net income of subsidiaries | (65,369) | (92,711) | (423,741) |
Equity in net income of subsidiaries | 329,390 | 540,019 | 528,122 |
Net income attributable to PartnerRe Ltd. | 264,021 | 447,308 | 104,381 |
Preferred dividends | 46,416 | 55,043 | 56,735 |
Loss on redemption of preferred shares | 0 | 4,908 | 0 |
Net income available to common shareholders | 217,605 | 387,357 | 47,646 |
Comprehensive income | |||
Net income attributable to PartnerRe Ltd. | 264,021 | 447,308 | 104,381 |
Total other comprehensive (loss) income, net of tax | (15,712) | 8,714 | (49,200) |
Comprehensive income | $ 248,309 | $ 456,022 | $ 55,181 |
SCHEDULE II - Condensed Stat102
SCHEDULE II - Condensed Statements of Cash Flows - Parent Company Only (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Cash flows from operating activities | ||||
Net income attributable to PartnerRe Ltd. | $ 264,021 | $ 447,308 | $ 104,381 | |
Adjustments to reconcile net income to net cash used in operating activities: | ||||
Other, net | (38,190) | 38,195 | (158) | |
Net cash used in operating activities | 242,876 | 445,309 | 318,812 | |
Cash flows from investing activities | ||||
Sales and redemptions of short-term investments | 169,555 | 148,665 | 178,166 | |
Other, net | (65,753) | (749,194) | (151,198) | |
Net cash provided by (used in) investing activities | 98,821 | (34,055) | 295,274 | |
Cash flows from financing activities | ||||
Cash dividends paid to common and preferred shareholders | (191,109) | (491,473) | (190,339) | |
Redemption of preferred shares | 0 | (149,523) | 0 | |
Settlement of share-based awards upon change in control | 0 | (75,531) | 0 | |
Net cash used in financing activities | (387,239) | (153,521) | (309,539) | |
Effect of foreign exchange rate changes on cash | 44,226 | (61,502) | (40,918) | |
Increase (decrease) in cash and cash equivalents | (1,316) | 196,231 | 263,629 | |
Cash and cash equivalents—beginning of year | 1,773,328 | 1,577,097 | 1,313,468 | |
Cash and cash equivalents—end of year | 1,772,012 | 1,773,328 | 1,577,097 | |
Supplemental cash flow information: | ||||
Interest paid | 40,989 | 46,417 | 49,259 | |
Non Cash Transactions [Abstract] | ||||
Repurchase of common shares | 0 | 0 | (71,376) | |
Fixed maturities | ||||
Cash flows from investing activities | ||||
Purchases of fixed maturities | (12,465,127) | (12,704,275) | (8,608,288) | |
Parent Company [Member] | ||||
Cash flows from operating activities | ||||
Net income attributable to PartnerRe Ltd. | 264,021 | 447,308 | 104,381 | |
Adjustments to reconcile net income to net cash used in operating activities: | ||||
Equity in net income of subsidiaries | (329,390) | (540,019) | (528,122) | |
Other, net | 25,239 | 11,205 | 32,725 | |
Net cash used in operating activities | (40,130) | (81,506) | (391,016) | |
Cash flows from investing activities | ||||
Advances to/from subsidiaries, net | 11,138 | (167,254) | 97,532 | |
Net issue of intercompany loans receivable and payable | 0 | 542,193 | 5,955 | |
Sales and redemptions of fixed maturities | 40,379 | 99,888 | 16,818 | |
Dividends received from subsidiaries | 0 | 0 | 418,789 | |
Other, net | 414 | (2,408) | 13,292 | |
Net cash provided by (used in) investing activities | 35,517 | 464,580 | 526,628 | |
Cash flows from financing activities | ||||
Cash dividends paid to common and preferred shareholders | [1] | 0 | (240,725) | (47,582) |
Reissuance of treasury shares and issuance of common shares, net of taxes paid | 0 | 0 | 7,996 | |
Redemption of preferred shares | 0 | (149,523) | 0 | |
Reissuance of treasury shares, net of taxes | 0 | 10,965 | 0 | |
Settlement of share-based awards upon change in control | 0 | 75,531 | 0 | |
Net cash used in financing activities | 0 | (454,814) | (39,586) | |
Effect of foreign exchange rate changes on cash | 8,144 | 55 | (1,562) | |
Increase (decrease) in cash and cash equivalents | 3,531 | (71,685) | 94,464 | |
Cash and cash equivalents—beginning of year | 23,150 | 94,835 | 371 | |
Cash and cash equivalents—end of year | 26,681 | 23,150 | 94,835 | |
Parent Company [Member] | Fixed maturities | ||||
Cash flows from investing activities | ||||
Purchases of fixed maturities | (16,414) | (7,839) | (25,758) | |
Subsidiaries [Member] | ||||
Non Cash Transactions [Abstract] | ||||
Payment Of Dividends By Subsidiary On Behalf Of Parent | $ 191,000 | $ 251,000 | 143,000 | |
Repurchase of common shares | $ 71,000 | |||
[1] | During the years ended December 31, 2017, 2016 and 2015, dividends paid to common and preferred shareholders of $191 million, $251 million and $143 million, respectively, and the repurchase of common shares of $71 million for 2015 were paid by a Bermuda subsidiary on behalf of the parent and have therefore been excluded from the Condensed Statements of Cash Flows—Parent Company Only. |
SCHEDULE III - Supplementary103
SCHEDULE III - Supplementary Insurance Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Supplementary Insurance Information, by Segment [Line Items] | ||||
Deferred Policy Acquisition Costs | $ 672,307 | $ 597,239 | $ 629,372 | |
Gross Reserves | 9,710,457 | 8,985,434 | 9,064,711 | |
Unearned Premiums | 1,818,999 | 1,623,796 | 1,644,757 | |
Other Benefits Payable | 2,490,474 | 1,984,096 | 2,051,935 | |
Premium Revenue | 5,024,981 | 4,969,596 | 5,269,178 | |
Net Investment Income(1) | [1] | 402,071 | 410,864 | 449,784 |
Losses Incurred | 3,840,982 | 3,248,091 | 3,157,420 | |
Amortization of DAC | 1,119,773 | 1,186,602 | 1,217,003 | |
Other Expenses(2) | [2] | 348,398 | 471,905 | 790,723 |
Premiums Written | 5,119,926 | 4,154,706 | 4,343,345 | |
Non Life | ||||
Supplementary Insurance Information, by Segment [Line Items] | ||||
Deferred Policy Acquisition Costs | 493,196 | 439,195 | 449,216 | |
Gross Reserves | 9,710,457 | 8,985,434 | 9,064,711 | |
Unearned Premiums | 1,795,103 | 1,608,880 | 1,629,537 | |
Other Benefits Payable | 0 | 0 | 0 | |
Premium Revenue | 3,688,158 | 3,852,336 | 4,059,665 | |
Losses Incurred | 2,574,769 | 2,320,820 | 2,193,449 | |
Amortization of DAC | 984,519 | 1,055,638 | 1,063,693 | |
Other Expenses(2) | [2] | 104,454 | 228,806 | 218,319 |
Premiums Written | 3,775,905 | 3,836,654 | 4,022,067 | |
Life and Health | ||||
Supplementary Insurance Information, by Segment [Line Items] | ||||
Deferred Policy Acquisition Costs | 179,111 | 158,044 | 180,156 | |
Gross Reserves | 0 | 0 | 0 | |
Unearned Premiums | 23,896 | 14,916 | 15,220 | |
Other Benefits Payable | 2,490,474 | 1,984,096 | 2,051,935 | |
Premium Revenue | 1,336,823 | 1,117,260 | 1,209,513 | |
Net Investment Income(1) | [1] | 59,895 | 57,664 | 58,537 |
Losses Incurred | 1,266,213 | 927,271 | 964,421 | |
Amortization of DAC | 135,254 | 130,964 | 153,318 | |
Other Expenses(2) | [2] | 61,026 | 66,003 | 63,451 |
Premiums Written | 1,344,021 | 318,052 | 321,278 | |
Corporate and Other [Member] | ||||
Supplementary Insurance Information, by Segment [Line Items] | ||||
Deferred Policy Acquisition Costs | 0 | 0 | 0 | |
Gross Reserves | 0 | 0 | 0 | |
Unearned Premiums | 0 | 0 | 0 | |
Other Benefits Payable | 0 | 0 | 0 | |
Premium Revenue | 0 | 0 | 0 | |
Net Investment Income(1) | [1] | 342,176 | 353,200 | 391,247 |
Losses Incurred | 0 | 0 | (450) | |
Amortization of DAC | 0 | 0 | (8) | |
Other Expenses(2) | [2] | 182,918 | 177,096 | 508,953 |
Premiums Written | $ 0 | $ 0 | $ 0 | |
[1] | Because the Company does not manage its assets by segment, net investment income is not allocated to the Non-life business 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 business and Life and Health segment. Other expenses included in Corporate and Other represent corporate expenses and other expenses related to the Company’s insurance-linked securities and strategic investments. |
SCHEDULE IV - Reinsurance (Deta
SCHEDULE IV - Reinsurance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reinsurance Premiums For Insurance Companies By Product Segment Net Amount [Abstract] | |||
Gross amount | $ 261,760 | $ 251,492 | $ 252,577 |
Ceded to other companies | 446,565 | 374,235 | 301,143 |
Assumed from other companies | 5,209,786 | 5,092,339 | 5,317,744 |
Net amount | $ 5,024,981 | $ 4,969,596 | $ 5,269,178 |
Percentage of amount assumed to net | 104.00% | 102.00% | 101.00% |
Life reinsurance in force | |||
Gross amount | $ 0 | $ 0 | $ 0 |
Ceded to other companies | 15,136,473 | 1,930,291 | 2,189,254 |
Assumed from other companies | 295,171,940 | 167,198,163 | 180,825,066 |
Net amount | $ 280,035,467 | $ 165,267,872 | $ 178,635,812 |
Percentage of amount assumed to net | 105.00% | 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 | 18,094 | 4,695 | 4,802 |
Assumed from other companies | 944,752 | 778,754 | 873,854 |
Net amount | $ 926,658 | $ 774,059 | $ 869,052 |
Percentage of amount assumed to net | 102.00% | 101.00% | 101.00% |
Accident and health [Member] | |||
Reinsurance Premiums For Insurance Companies By Product Segment Net Amount [Abstract] | |||
Gross amount | $ 105,634 | $ 89,623 | $ 89,535 |
Ceded to other companies | 37,150 | 46,568 | 57,978 |
Assumed from other companies | 341,681 | 300,145 | 308,904 |
Net amount | $ 410,165 | $ 343,200 | $ 340,461 |
Percentage of amount assumed to net | 83.00% | 87.00% | 91.00% |
Property and casualty [Member] | |||
Reinsurance Premiums For Insurance Companies By Product Segment Net Amount [Abstract] | |||
Gross amount | $ 156,126 | $ 161,869 | $ 163,042 |
Ceded to other companies | 391,321 | 322,972 | 238,363 |
Assumed from other companies | 3,923,353 | 4,013,440 | 4,134,986 |
Net amount | $ 3,688,158 | $ 3,852,337 | $ 4,059,665 |
Percentage of amount assumed to net | 106.00% | 104.00% | 102.00% |
SCHEDULE VI - Supplemental I105
SCHEDULE VI - Supplemental Information Concerning Property-Casualty Insurance Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Supplemental Information Concerning Property-Casualty Insurance Operations [Line Items] | |||
Unearned Premiums | $ 1,818,999 | $ 1,623,796 | $ 1,644,757 |
Premiums Earned | 5,024,981 | 4,969,596 | 5,269,178 |
Losses and Loss Expenses Incurred | 3,840,982 | 3,248,091 | 3,157,420 |
Premiums Written | 5,119,926 | 4,154,706 | 4,343,345 |
Consolidated subsidiaries [Member] | |||
Supplemental Information Concerning Property-Casualty Insurance Operations [Line Items] | |||
Deferred Policy Acquisition Costs | 493,196 | 439,195 | 449,216 |
Liability for Unpaid Losses and Loss Expenses | 9,710,457 | 8,985,434 | 9,064,711 |
Unearned Premiums | 1,795,103 | 1,608,880 | 1,629,537 |
Premiums Earned | 3,688,158 | 3,852,336 | 4,059,665 |
Losses and Loss Expenses Incurred | 2,574,769 | 2,320,820 | 2,192,999 |
Amortization of Deferred Policy Acquisition Costs | 984,519 | 1,055,638 | 1,063,685 |
Paid Losses and Loss Expenses | 2,675,530 | 2,262,916 | 2,422,603 |
Premiums Written | $ 3,775,905 | $ 3,836,654 | $ 4,022,067 |