Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Entity Listings [Line Items] | |
Document type | 20-F |
Document period end date | Dec. 31, 2018 |
Amendment flag | false |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | FY |
Entity registrant name | PARTNERRE LTD. |
Entity central index key | 0000911421 |
Entity current reporting status | Yes |
Entity voluntary filers | No |
Current fiscal year end date | --12-31 |
Entity filer category | Non-accelerated Filer |
Entity well known seasoned issuer | No |
Entity shell company | false |
Entity emerging growth company | false |
Common shares | |
Entity Listings [Line Items] | |
Entity common stock shares outstanding | 100,000,000 |
Class B Shares [Member] | |
Entity Listings [Line Items] | |
Entity common stock shares outstanding | 345,644 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Assets | |||
Fixed maturities, at fair value (amortized cost: 2018, $12,627,921; 2017, $12,480,569) | $ 12,639,845 | $ 12,654,859 | |
Short-term investments, at fair value (amortized cost: 2018, $495,050; 2017, $4,394) | 493,726 | 4,400 | |
Equities, at fair value (cost: 2018, $621,312; 2017, $567,848) | 694,301 | 638,596 | |
Investments in real estate | 72,573 | 83,098 | |
Other invested assets | 1,488,995 | 1,385,258 | |
Total investments | 15,389,440 | 14,766,211 | |
Funds held–directly managed (cost: 2017, $429,326) | 0 | 424,765 | |
Cash and cash equivalents | 877,907 | 1,772,012 | |
Accrued investment income | 115,735 | 120,805 | |
Reinsurance balances receivable | 2,976,644 | 2,724,844 | |
Reinsurance recoverable on paid and unpaid losses | 940,291 | 828,807 | |
Funds held by reinsured companies | 829,695 | 801,451 | |
Deferred acquisition costs | 743,046 | 672,307 | |
Deposit assets | 80,661 | 78,542 | |
Net tax assets | 157,690 | 133,169 | |
Goodwill | 456,380 | 456,380 | |
Intangible assets | 128,899 | 160,234 | |
Other assets | 63,506 | 41,237 | |
Total assets | 22,759,894 | 22,980,764 | |
Liabilities | |||
Non-life reserves | [1] | 9,895,376 | 10,102,172 |
Life and health reserves | [1] | 2,198,080 | 2,098,759 |
Unearned premiums | 2,072,953 | 1,818,999 | |
Other reinsurance balances payable | 281,744 | 292,077 | |
Deposit liabilities | 7,172 | 10,864 | |
Net tax liabilities | 101,525 | 154,947 | |
Accounts payable, accrued expenses and other | 266,524 | 302,021 | |
Debt related to senior notes | 1,349,017 | 1,384,824 | |
Debt related to capital efficient notes | 70,989 | 70,989 | |
Total liabilities | 16,243,380 | 16,235,652 | |
Shareholders’ Equity | |||
Common shares (par value $0.00000001; issued and outstanding: 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 | (138,634) | (90,281) | |
Retained earnings | 4,230,449 | 4,410,694 | |
Total shareholders’ equity | 6,516,514 | 6,745,112 | |
Total liabilities and shareholders’ equity | $ 22,759,894 | $ 22,980,764 | |
[1] | Effective July 1, 2018, the executive management responsibility and reporting for U.S. health business was reallocated from the Life and Health segment to the P&C segment as part of an internal organizational change. As a result, reserves of $392 million as at December 31, 2017 have been reclassified from Life and Health reserves to Non-Life reserves to conform to current presentation. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Assets | ||||
Fixed maturities, amortized cost | $ 12,627,921 | $ 12,480,569 | ||
Short-term investments, amortized cost | 495,050 | 4,394 | ||
Equities, cost | $ 621,312 | 567,848 | ||
Funds held - directly managed, cost | $ 429,326 | |||
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 | ||
Preferred shares, shares issued | 28,169,062 | 28,169,062 | ||
Preferred shares, shares outstanding | 28,169,062 | 28,169,062 | ||
Preferred shares, aggregate liquidation value | $ 704,227 | $ 704,227 | ||
Life and health reserves | [1] | $ 2,198,080 | 2,098,759 | |
Restatement Adjustment | P&C | Non Life | ||||
Life and health reserves | $ 392,000 | |||
Previously Reported | Life and Health | ||||
Life and health reserves | $ 392,000 | |||
[1] | Effective July 1, 2018, the executive management responsibility and reporting for U.S. health business was reallocated from the Life and Health segment to the P&C segment as part of an internal organizational change. As a result, reserves of $392 million as at December 31, 2017 have been reclassified from Life and Health reserves to Non-Life reserves to conform to current presentation. |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive (Loss) Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues | |||
Gross premiums written | $ 6,299,929 | $ 5,587,894 | $ 5,356,942 |
Net premiums written | 5,803,364 | 5,119,926 | 4,953,470 |
(Increase) decrease in unearned premiums | (289,554) | (94,945) | 16,126 |
Net premiums earned | 5,513,810 | 5,024,981 | 4,969,596 |
Net investment income | 415,921 | 402,071 | 410,864 |
Net realized and unrealized investment (losses) gains | (389,632) | 232,491 | 26,266 |
Other income | 50,127 | 15,242 | 15,232 |
Total revenues | 5,590,226 | 5,674,785 | 5,421,958 |
Expenses | |||
Losses and loss expenses | 4,193,255 | 3,840,982 | 3,248,091 |
Acquisition costs | 1,237,464 | 1,119,773 | 1,186,602 |
Other expenses | 305,568 | 348,398 | 471,905 |
Interest expense | 43,152 | 42,500 | 48,603 |
Loss on redemption of debt | 0 | 1,566 | 22,203 |
Amortization of intangible assets | 35,473 | 24,646 | 25,919 |
Net foreign exchange (gains) losses | (119,151) | 108,244 | (77,515) |
Total expenses | 5,695,761 | 5,486,109 | 4,925,808 |
(Loss) income before taxes and interest in earnings (losses) of equity method investments | (105,535) | 188,676 | 496,150 |
Income tax (benefit) expense | (8,934) | 10,358 | 25,923 |
Interest in earnings (losses) of equity method investments | 10,607 | 85,703 | (22,919) |
Net (loss) income | (85,994) | 264,021 | 447,308 |
Preferred dividends | 46,416 | 46,416 | 55,043 |
Loss on redemption of preferred shares | 0 | 0 | 4,908 |
Net (loss) income attributable to common shareholder | (132,410) | 217,605 | 387,357 |
Comprehensive (loss) income | |||
Net (loss) income | (85,994) | 264,021 | 447,308 |
Change in currency translation adjustment | (74,797) | (15,135) | 12,202 |
Change in unfunded pension obligation, net of tax | 24,859 | (274) | (1,909) |
Change in fair value of designated cash flow hedges | 1,877 | 0 | 0 |
Change in unrealized gains or losses on investments, net of tax | (292) | (303) | (1,579) |
Other comprehensive (loss) income | (48,353) | (15,712) | 8,714 |
Comprehensive (loss) income | $ (134,347) | $ 248,309 | $ 456,022 |
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 |
Balance at beginning of year at Dec. 31, 2015 | $ 87,237 | $ 34,150 | $ 3,982,147 | $ (83,283) | $ (53,970) | $ (31,861) | $ 2,548 | $ 6,146,802 | $ (3,266,552) | |
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 | ||||||||
De-designated net investment hedge | 6,027 | |||||||||
Change in currency translation adjustment | 12,202 | |||||||||
Change in unfunded pension obligation, net of tax | (1,909) | (1,909) | ||||||||
Change in fair value of designated cash flow hedges | 0 | 0 | ||||||||
Change in unrealized gains or losses on investments, net of tax | (1,579) | (1,579) | ||||||||
Net (loss) income | 447,308 | 447,308 | ||||||||
Dividends on common shares | (436,430) | |||||||||
Dividends on preferred shares | (55,043) | (55,043) | ||||||||
Loss on redemption of preferred shares | (4,908) | (4,908) | ||||||||
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 |
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) | ||||||||
De-designated net investment hedge | 0 | |||||||||
Change in currency translation adjustment | (15,135) | |||||||||
Change in unfunded pension obligation, net of tax | (274) | (274) | ||||||||
Change in fair value of designated cash flow hedges | 0 | 0 | ||||||||
Change in unrealized gains or losses on investments, net of tax | (303) | (303) | ||||||||
Net (loss) income | 264,021 | 264,021 | ||||||||
Dividends on common shares | (144,693) | |||||||||
Dividends on preferred shares | (46,416) | (46,416) | ||||||||
Loss on redemption of preferred shares | 0 | 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 |
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 | (74,797) | (74,797) | ||||||||
De-designated net investment hedge | 0 | |||||||||
Change in currency translation adjustment | (74,797) | |||||||||
Change in unfunded pension obligation, net of tax | 24,859 | 24,859 | ||||||||
Change in fair value of designated cash flow hedges | 1,877 | 1,877 | ||||||||
Change in unrealized gains or losses on investments, net of tax | (292) | (292) | ||||||||
Net (loss) income | (85,994) | (85,994) | ||||||||
Dividends on common shares | (47,835) | |||||||||
Dividends on preferred shares | (46,416) | (46,416) | ||||||||
Loss on redemption of preferred shares | 0 | 0 | ||||||||
Balance at end of year at Dec. 31, 2018 | $ 6,516,514 | $ 0 | $ 28,169 | $ 2,396,530 | $ (138,634) | $ (131,700) | $ (9,185) | $ 2,251 | $ 4,230,449 | $ 0 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
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 | $ 2,479 | $ 9,744 | $ 9,512 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Cash flows from operating activities | ||||
Net (loss) income | $ (85,994) | $ 264,021 | $ 447,308 | |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||
Amortization of net premium on investments | 52,495 | 69,080 | 96,402 | |
Amortization of intangible assets | 35,473 | 24,646 | 25,919 | |
Net realized and unrealized investment losses (gains) | 389,632 | (232,491) | (26,266) | |
Changes in: | ||||
Reinsurance balances, net | (427,220) | (84,767) | (95,737) | |
Reinsurance recoverable on paid and unpaid losses, net of ceded premiums payable | (98,086) | (481,173) | (46,235) | |
Funds held by reinsured companies and funds held–directly managed | (23,483) | 47,383 | (59,069) | |
Deferred acquisition costs | (98,475) | (34,822) | 2,000 | |
Net tax assets and liabilities | (82,247) | 42,337 | (135,153) | |
Non-life and life and health reserves | 637,652 | 571,907 | 214,071 | |
Unearned premiums | 289,554 | 94,945 | (16,126) | |
Other net changes in operating assets and liabilities | (141,808) | (38,190) | 38,195 | |
Net cash provided by operating activities | 447,493 | 242,876 | 445,309 | |
Redemptions of fixed maturities | 494,148 | 572,638 | 595,381 | |
Sales and redemptions of short-term investments | 247,843 | 169,555 | 148,665 | |
Purchases of short-term investments | (733,431) | (143,859) | (124,079) | |
Consideration paid to acquire Aurigen, net of cash acquired | 0 | (233,233) | 0 | |
Other, net | (167,230) | (65,753) | (749,194) | |
Net cash (used in) provided by investing activities | (1,260,911) | 98,821 | (34,055) | |
Cash flows from financing activities | ||||
Dividends paid to common and preferred shareholders | (94,251) | (191,109) | (491,473) | |
Settlement of share-based awards upon change in control | 0 | 0 | (75,531) | |
Issuance of Class B common shares | [1] | 0 | 11,000 | 0 |
Reissuance of treasury shares, net of taxes | 0 | 0 | 10,965 | |
Redemption of preferred shares | 0 | 0 | (149,523) | |
Issuance of senior notes | 0 | 0 | 824,002 | |
Redemption of debt | 0 | (207,130) | (271,961) | |
Net cash used in financing activities | (94,251) | (387,239) | (153,521) | |
Effect of foreign exchange rate changes on cash | 13,564 | 44,226 | (61,502) | |
(Decrease) increase in cash and cash equivalents | (894,105) | (1,316) | 196,231 | |
Cash and cash equivalents—beginning of year | 1,772,012 | 1,773,328 | 1,577,097 | |
Cash and cash equivalents—end of year | 877,907 | 1,772,012 | 1,773,328 | |
Supplemental cash flow information: | ||||
Taxes paid | 139,543 | 66,228 | 188,650 | |
Interest paid | 41,551 | 40,989 | 46,417 | |
Fixed maturities | ||||
Sales of trading securities | 14,665,938 | 12,524,296 | 12,404,085 | |
Purchases of trading securities | (15,638,777) | (12,465,127) | (12,704,275) | |
Equities | ||||
Sales of trading securities | 89,349 | 16,232 | 402,481 | |
Purchases of trading securities | $ (218,751) | $ (275,928) | $ (7,119) | |
[1] | Class B shares are recorded as a liability on the Company's Consolidated Balance Sheet. See Note 14 for further details. |
Organization
Organization | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure - Organization [Abstract] | |
Organization | 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, property and U.S. health. Life and health risks include mortality, morbidity, longevity, and non-U.S. 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. At December 31, 2018 and 2017 , the Company's 100 million common shares (Class A shares) issued to EXOR Nederland N.V. (see Note 11) are included in Shareholders' Equity in the Consolidated Balance Sheets. At December 31, 2018 and 2017 , the Company also has 345,644 and 255,492 , respectively, of Class B shares issued to certain executives of the Company (see Note 14) which are recognized in Accounts payable, accrued expenses and other in the Consolidated Balance Sheets. The percentage of total common shares owned by EXOR Nederland N.V. at December 31, 2018 and 2017 was approximately 99.7% . On April 3, 2017, 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. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure - Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | 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. 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 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, morbidity, critical illness, persistency and future investment income, with appropriate provision to reflect uncertainty. For traditional long-duration contracts, the assumptions are locked in at contract inception and modified if the Company deems the reserves to be inadequate. 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, morbidity 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 is credited with investment income 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 difference between the consideration received or paid and the estimated liability for unpaid losses is determined upon entering into the contract and, if a loss, recognized into income immediately, and if a gain, the gain is deferred and earned over the expected settlement period of the contract, with the unearned portion recorded as a component of deposit liabilities. Actuarial studies are used to estimate the liabilities under these contracts and the appropriate accretion rates to increase or decrease the liabilities over the term of the contracts. The change in the estimated liability 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 Fixed maturities and Equities with changes in fair value recorded in Net realized and unrealized investment gains or losses in the Consolidated Statements of Operations. The Company recognizes Other invested assets at fair value (except for those that are accounted for using the equity method of accounting). Other invested assets consist of equity investments in non-publicly traded companies; privately placed corporate loans, notes and loans receivable and notes securitization; and derivative financial instruments. 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 rights, 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. Where the equity method is used, the Company's share of profits or losses of the investee are recorded in Interest in earnings or losses of equity method investees in the Consolidated Statements of Operations. Where the fair value option is elected, the investment is recognized in the Consolidated Balance Sheets at fair value with changes in fair value recorded in Net realized and unrealized investment gains or losses in the Consolidated Statements of Operations. See Note 2(n) below for significant accounting policy for derivatives. Short-term investments, which comprise securities with a maturity greater than three months but less than one year from the date of purchase, are recorded at fair value by electing either the fair value option with changes in fair value recorded in Net realized and unrealized gains or losses included in the Consolidated Statements of Operations or by designating as available-for-sale with changes in fair value recorded in Other comprehensive income or loss. Investments in real estate are recorded at cost less any write down for impairment, where applicable. 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. Net investment income includes interest and dividend income, amortization of premiums and discounts on fixed maturities and short-term investments, and is net of investment expenses and withholding taxes. Investment income is recognized when earned and accrued to the balance sheet date. 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. 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. The valuation techniques used by the Company are generally commensurate with standard valuation techniques for each asset class (see Note 3). (g) Funds Held–Directly Managed The Company elected 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. The changes in fair value and the realized gains or losses related to the segregated investment portfolio underlying the funds held–directly managed account were recorded in Net realized and unrealized investment gains or losses in the Consolidated Statements of Operations. The funds were settled prior to December 31, 2018 as a result of a commutation of the related business (see Notes 3, 4 and 5). (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 (as at December 31) or more frequently if events or changes in circumstances indicate that the carrying amount may not be recoverable. If, as a result of the assessment, the Company determines that the value of its goodwill is impaired, goodwill will be written down in the period in which the determination is made. (k) Intangible Assets Intangible assets represent the fair value adjustments related to non-life reserves, renewal rights, and customer relationships; value of life business acquired; 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 (as at December 31) or more frequently if events or changes in circumstances indicate that impairment may exist. Impairment is recognized if the carrying values of the intangible assets are not recoverable from their undiscounted cash flows and is measured as the difference between the carrying value and the fair value. (l) Income Taxes Certain subsidiaries and branches of the Company operate in jurisdictions where they are subject to taxation. Current and deferred income taxes are charged or credited to net income or loss or, in certain cases, to accumulated other comprehensive income or loss, based upon enacted tax laws and rates applicable in the relevant jurisdiction in the period in which the tax becomes accruable or realizable. Deferred income taxes are provided for all temporary differences between the bases of assets and liabilities used in the Consolidated Balance Sheets and those used in the various jurisdictional tax returns. When management’s assessment indicates that it is more likely than not that deferred tax assets will not be realized, a valuation allowance is recorded against the deferred tax assets. The Company recognizes a tax benefit relating to uncertain tax positions only where the position is more likely than not to be sustained assuming examination by tax authorities. A liability is recognized for any tax benefit (along with any interest and penalty, if applicable) claimed in a tax return in excess of the amount recognized in the financial statements under U.S. GAAP. Any changes in amounts recognized are recorded in the period in which they are determined. (m) Translation of Foreign Currencies The reporting currency of the Company is the U.S. dollar. The national currencies of the Company’s subsidiaries and branches are generally their functional currencies, except for the Company’s Bermuda subsidiaries, its Swiss branch and its Singapore subsidiary and branches, whose functional currency is the U.S. dollar. In translating the financial statements of those subsidiaries or branches whose functional currency is other than the U.S. dollar, assets and liabilities are converted into U.S. dollars using the rates of exchange in effect at the balance sheet dates, and revenues and expenses are converted using the average foreign exchange rates for the period. The effect of translation adjustments are reported in the Consolidated Balance Sheets as Currency translation adjustment, a separate component of Accumulated other comprehensive income or loss. The change in currency translation adjustment is reflected in 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 transaction gains or losses are included in Net foreign exchange gains or losses in the Consolidated Statements of Operations. (n) Derivatives The Company’s investment strategy allows for the use of derivative instruments, subject to strict limitations. The Company may use derivative financial 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. On the date the Company enters into a derivative contract, management determines whether or not the derivative is to be used and designated as a hedge of an identified underlying risk exposure (a designated hedge). The Company’s derivative instruments are recorded in Other invested assets in the Consolidated Balance Sheets at fair value, with gains and losses associated with changes in fair value recognized in either Net realized and unrealized investment gains or losses or Net foreign exchange gains or losses in the Consolidated Statements of Operations, or in Other comprehensive income, depending on the nature and designation of the derivative instrument, as described below (see also Note 6). The Company has entered into derivatives, in the form of foreign exchange forward contracts, designated as a highly effective hedge of the foreign exchange rate risk exposure related to certain short-term investments which are foreign currency denominated debt securities purchased in December 2018. The hedged assets were designated as available-for-sale with changes in fair value recorded in Change in unrealized gains or losses on investments, net of tax, within Other comprehensive income. The changes in fair value of the designated hedges are recorded in Change in fair value of designated cash flow hedges within Other comprehensive income. The Company enters from time to time into insurance-linked securities, including weather and longevity related transactions, 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 also 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. Other than the designated cash flow hedge referred to above, for the remaining derivatives employed by the Company to address foreign currency risk exposure related to fixed income securities, and for other reinsurance assets and liabilities, the derivatives are not designated as hedges. The changes in fair value of foreign exchange forward contracts and foreign currency option contracts not designated as hedges are recognized 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. As part of its overall strategy to manage its level of currency exposure, up to September 30, 2016 the Company had used foreign exchange forward contracts to hedge or partially hedge the net investment in certain subsidiaries and branches whose functional currencies are not the U.S. dollar. Such designated hedges were de-designated in 2016. Up to the time of de-designation, the changes in fair value of this designated hedge and the hedged item related to foreign currency risk exposure were recognized in Currency translation adjustment in the Consolidated Balance Sheets. For foreign exchange forward contracts not designated as net investment hedges, the change in fair value is included in Net foreign exchange gains (losses). At December 31, 2018 and 2017 the Company did not have any designated net investment hedges. The Company also uses, from time to time, interest rate swaps to mitigate exposure to interest rate volatility. The changes in fair value of these derivatives are recorded in Net realized and unrealized gains or losses. The Company formally documents all relationships between designated hedging instruments and hedged items, as well as its risk management objectives 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. Th e Company's method for assessing the effectiveness of the designated hedge entered in December 2018 is a qualitative assessment as the Company has determined that the hedging instrument (the designated foreign currency forward contracts) and the hedged assets (the available-for-sale foreign currency denominated short-term investments) are perfectly aligned as they relate to the hedged risk, the foreign currency exchange rate risk exposure. The Company will discontinue hedge accounting prospectively if it is determined that the derivative is no longer effective in hedging the exposure to variability in expected future cash flows that is attributable to the risk it was meant to hedge; if the derivative instruments expires, is sold, or otherwise terminated; or if the Company removes the designation of the hedg e. To the extent that the Company discontinues hedge accounting because, based on management’s assessment, the derivative no longer qualifies as an effective hedge, or the Company otherwise de-designates the hedge, the derivative will continue to be carried in the Consolidated Balance Sheet at its fair value, with changes in its fair value recognized in in the Consolidated Statements of Operations, or in Other comprehensive income, depending on the type of derivative held. (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 The Company monitors the performance of its operations in three segments: Property & Casualty (P&C), Specialty, and Life and Health. Segments represent markets that are reasonably homogeneous in terms of client types, buying patterns, underlying risk patterns or approach to risk management. In 2018, the executive management responsibility and reporting for U.S. health business was reallocated from the Life and Health segment to the P&C segment as part of an internal organizational change. As a result, the financial results for U.S. health business for 2018 has been included in the P&C segment and the impacted 2017 and 2016 comparatives have been reclassified from the Life and Health to the P&C segment to conform to current presentation. 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 products, allocated 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 January 2016, the Financial Accounting Standards Board (FASB) issued updated guidance that focused on improving the recognition and measurement of financial instruments by adjusting the reporting model for financial instruments to provide improved financial information to readers of the financial statements by requiring equity investments, except for those accounted for using the equity method, to be measured at fair value with changes in fair value recognized in net income rather than other comprehensive income. The guidance was effective for the year ended December 31, 2018. Upon adoption of this guidance the Company remeasured four equity investments, previously recorded at cost, to fair value, recognizing $13 million in Net realized and unrealized (losses) gains in the Consolidated Statement of Operations for the year ended December 31, 2018. 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 was effective for the December 31, 2018 year end. The adoption of this guidance for the year ended December 31, 2018 did not have a significant impact on the Company’s Consolidated Financial Statements. In March 2017, the FASB issued updated guidance on presentation of net periodic pension cost and net periodic post-retirement 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 post-retirement 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 was effective for the year ended December 31, 2018. The adoption of this guidance did not have a significant impact on the Company's Consolidated Financial Statements and disclosures. See Note 15 for disclosures on retirement benefit arrangements. In August 2017, the FASB issued updated guidance on accounting for hedging activities. This update expands and refines hedge accounting for both non-financial 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 early adopted this guidance for the year ended December 31, 2018 which resulted in changes to the significant accounting policy Note 2(n) for Derivatives above to reflect the new guidance. See also Note 6 for further details of the new foreign exchange forward contracts designated as hedges in December 2018 which are accounted for and disclosed in accordance with this new guidance. The adoption of this guidance did not have a significant impact on the Company’s Consolidated Financial Statements as there were no other designated hedges as at December 31, 2018 or 2017. In January and 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 February 2016, the FASB issued updated guidance on the accounting for leases. This update requires the recognition of lease assets and lease liabilities for lea |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 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, 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 loans receivable and notes securitizations included in other invested assets; and certain other derivatives, including weather derivatives, longevity insurance-linked securities and total return swaps included in other invested assets. At December 31, 2018 and 2017 , 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, 2018 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 $ — $ 2,345,008 $ — $ 2,345,008 U.S. states, territories and municipalities — 13,695 120,898 134,593 Non-U.S. sovereign government, supranational and government related — 2,158,642 — 2,158,642 Corporate bonds — 5,590,208 21,470 5,611,678 Asset-backed securities — 41,087 17,596 58,683 Residential mortgage-backed securities — 2,331,230 — 2,331,230 Other mortgage-backed securities — 11 — 11 Fixed maturities $ — $ 12,479,881 $ 159,964 $ 12,639,845 Short-term investments (1) $ — $ 493,726 $ — $ 493,726 Equities Finance $ 11,307 $ 1 $ 13,710 $ 25,018 Technology 5,492 — 12,256 17,748 Consumer noncyclical 13,334 — — 13,334 Consumer cyclical 6,435 — — 6,435 Industrials 4,797 — — 4,797 Insurance 1,771 1,189 — 2,960 Communications 1,451 — — 1,451 Other 799 — — 799 Mutual funds and exchange traded funds — — 621,759 621,759 Equities $ 45,386 $ 1,190 $ 647,725 $ 694,301 Other invested assets Derivative assets Foreign exchange forward contracts $ — $ 17,820 $ — $ 17,820 Insurance-linked securities — — 2,824 2,824 Total return swaps — — 1,697 1,697 Interest rate swaps — 10 — 10 Other Corporate loans — — 401,702 401,702 Notes and loans receivable and notes securitization — — 6,507 6,507 Private equities — — 372,710 372,710 Derivative liabilities Foreign exchange forward contracts — (3,673 ) — (3,673 ) Total return swaps — — (3,232 ) (3,232 ) Interest rate swaps — (9,194 ) — (9,194 ) Insurance-linked securities — — (2,568 ) (2,568 ) Other invested assets $ — $ 4,963 $ 779,640 $ 784,603 Total $ 45,386 $ 12,979,760 $ 1,587,329 $ 14,612,475 (1) Short-term investments includes $229 million of available-for-sale securities with readily determinable fair values. These securities were purchased in 2018 and are recorded at fair value, which approximated amortized cost given the short term to maturity of approximately three to four months. 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 loans receivable 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 Other — 453 2,067 2,520 Funds held–directly managed $ — $ 298,378 $ 2,067 $ 300,445 Total $ 42,781 $ 12,794,810 $ 1,400,281 $ 14,237,872 At December 31, 2018 and 2017 , the aggregate carrying amounts of items included in Other invested assets that the Company did not measure at fair value were $704 million and $746 million , respectively, which primarily related to the Company’s investments that are accounted for using the equity method of accounting. In addition to the investments underlying the funds held–directly managed account held at fair value of $300 million at December 31, 2017 , the funds held–directly managed account also included cash and cash equivalents of $74 million and accrued investment income of $3 million carried at fair value. At December 31, 2017 , the aggregate carrying amount of items included in the funds held–directly managed account that the Company did not measure at fair value was $47 million , which primarily related to other assets and liabilities held by Colisée Re related to the underlying business, which were carried at cost prior to the funds being settled in 2018 (see Note 5). At December 31, 2018 and 2017, the carrying value of accrued investment income approximated fair value due to its short-term nature. During the year ended December 31, 2018 , a corporate longevity bond valued at $25 million was transferred from Level 2 to Level 3 due to the lack of multiple independent pricing services (see in table below). Transfers into Level 3 also included four private equity securities valued at $31 million that were previously held at cost and were measured to fair value upon adoption of new accounting guidance described in Note 2(r). During the years ended December 31, 2018 and 2017 , 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, 2018 and 2017 , 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, 2018 and 2017 , were as follows (in thousands of U.S. dollars): For the year ended December 31, 2018 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 $ 128,806 $ (4,417 ) $ — $ (3,491 ) $ — $ 120,898 $ (4,320 ) Asset-backed securities 20,738 (2,552 ) — (590 ) — 17,596 (2,552 ) Corporate — (139 ) — (3,745 ) 25,354 21,470 (139 ) Fixed maturities $ 149,544 $ (7,108 ) $ — $ (7,826 ) $ 25,354 $ 159,964 $ (7,011 ) Equities Finance $ 21,926 $ 5,065 $ — $ (13,281 ) $ — $ 13,710 $ (3,544 ) Technology 10,961 1,295 — — — 12,256 1,295 Mutual funds and exchanged traded funds 558,736 10,996 55,027 (3,000 ) — 621,759 10,996 Equities $ 591,623 $ 17,356 $ 55,027 $ (16,281 ) $ — $ 647,725 $ 8,747 Other invested assets Derivatives, net $ 11,221 $ 5,038 $ (1,623 ) $ (15,915 ) $ — $ (1,279 ) $ 372 Corporate loans 205,331 (21,522 ) 367,975 (150,082 ) — 401,702 (20,823 ) Notes and loan receivables and notes securitization 108,563 (4,054 ) — (98,002 ) — 6,507 (3,884 ) Private equities 331,932 (12,422 ) 55,114 (32,994 ) 31,080 372,710 (15,048 ) Other invested assets $ 657,047 $ (32,960 ) $ 421,466 $ (296,993 ) $ 31,080 $ 779,640 $ (39,383 ) Funds held–directly managed $ 2,067 $ 238 $ 268 $ (2,573 ) $ — $ — $ — Total $ 1,400,281 $ (22,474 ) $ 476,761 $ (323,673 ) $ 56,434 $ 1,587,329 $ (37,647 ) (1) Purchases and issuances of derivatives include issuances of $2 million . (2) Settlements and sales of Equities, Other invested assets, and Funds held–directly managed include sales of $ 16 million , $ 248 million and $ 3 million , respectively. Sales of Other invested assets of $248 million included sales of derivatives of $16 million , corporate loans of $107 million , notes and loan receivables and notes securitization of $96 million , and private equities of $29 million . For the year ended December 31, 2017 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 exchanged 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 loans receivable 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 . The significant unobservable inputs used in the valuation of financial instruments measured at fair value using Level 3 inputs at December 31, 2018 and 2017 were as follows (fair value in thousands of U.S. dollars): December 31, 2018 Fair value Valuation techniques Unobservable inputs Range (Weighted average) Fixed maturities U.S. states, territories and municipalities $ 120,898 Discounted cash flow Credit spreads 0.2% – 10.2% (4.3%) Asset backed securities 17,596 Discounted cash flow Credit spreads 6.7% (6.7%) Equities Finance (1) 13,710 Lag reported market value Transaction price 12.0 (12.0) Technology 12,256 Reported market value Tangible book value multiple 1.0 (1.0) Other invested assets Total return swaps, net (1,535 ) Discounted cash flow Credit spreads 2.5% – 23.0% (16.0%) Insurance-linked securities – longevity swaps 2,824 Discounted cash flow Credit spreads 2.6% (2.6%) Insurance-linked securities – pandemic swaps (1,301 ) Discounted cash flow Credit spreads 27.3% (27.3%) Insurance-linked securities – weather index swap (1,267 ) Proprietary option model Index value (temperature) 80.7 – 3,293.8 (175.3) Notes and loans receivable 2,660 Discounted cash flow Credit spreads 41.5% – 41.9% (41.5%) Notes and loans receivable 2,688 Discounted cash flow Credit spreads 17.5% (17.5%) Gross revenue/fair value 1.1 (1.1) Note securitization 1,159 Discounted cash flow Credit spreads 0.8% (0.8%) Private equity - direct 1,889 Weighted market comparables Revenue multiple 1.1 (1.1) Adjusted earnings multiple 9.8 (9.8) Liquidity discount 30% (30%) Private equity funds 14,438 Reported market value Net asset value, as reported 100.0% (100.0%) Market adjustments -6.5% (-6.5%) Private equity - other 19,997 Discounted cash flow Effective yield 4.1% (4.1%) (1) During the year, the Company sold a portion of its investment and used the arm's length transaction price as an estimate of the fair value of the remaining holdings. This change was not considered material to the Company's financial position or results of operations. 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 1.0 (1.0) 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 loans receivable 102,907 Discounted cash flow Credit spreads 3.9% – 39.3% (6.1%) Notes and loans receivable 4,265 Discounted cash flow Credit spreads 17.5% (17.5%) Gross revenue to fair value ratios 1.1 (1.1) Note 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%) 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 corporate bonds (included within Fixed maturities), mutual fund and exchange traded funds investments (included within Equities), certain private equity funds (private equities included within Other invested assets), 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. Changes in the fair value of the Company’s financial instruments subject to the fair value option during the years ended December 31, 2018 , 2017 and 2016 were as follows (in thousands of U.S. dollars): 2018 2017 2016 Fixed maturities and short-term investments $ (150,926 ) $ 124,033 $ (90,334 ) Equities 2,791 60,460 (14,850 ) Other invested assets (12,987 ) 28,144 11,066 Funds held–directly managed (6,484 ) (5,612 ) (721 ) Total $ (167,606 ) $ 207,025 $ (94,839 ) Substantially all of the above changes in fair value are included in the Consolidated Statements of Operations under the caption Net realized and unrealized investment (losses) gains. The change in the fair value of Other invested assets subject to the fair value option does not include certain derivatives. 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 —consists 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 —consists 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 (credit spreads). Accordingly, the Company classifies these securities in Level 3. 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 —consists 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 —consists 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 —primarily consists 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 (credit spreads). The Company generally classifies these securities in Level 3. A significant increase (decrease) in credit spreads in isolation could result in a significantly lower (higher) fair value measurement. • Residential mortgage-backed securities —primarily consists 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 —primarily consists 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. Short-term investments at December 31, 2018 includes investments in foreign currency denominated bonds issued by a foreign government with durations to maturity of three to four months, as discussed in footnote (1) to the fair value table above. See also Notes 2(f) and 2(n) for further details. 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 transactional prices, 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 derivatives, including weather derivative insurance-linked securities and total return swaps; corporate loans; notes and loans receivable 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 variation in regional temperatures, 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 was fair valued, and prices validated, on a basis consistent with the methods described above. The funds held–directly managed account was settled prior to December 31, 2018 as a result of a commutation of the related business (see Note 5). (b) Fair Value of Financial Instrument Liabilities At December 31, 2018 and 2017 , the carrying values of financial instrument liabilities recorded in the Consolidated Balance Sheets approximate their fair values, with the exception of the long-term debt related to senior notes and capital efficient notes (CENts). The fair value of the debt related to senior notes as of December 31, 2018 and 2017 was calculated based on discounted cash flow models using observable market yields and contractual cash flows based on the aggregate principal amount outstanding. The fair value of the debt related to CENts as of December 31, 2018 was calculated based on market data valuation models using observable inputs based on the aggregate principal amount outstanding of the intercompany debt. See Note 10 for further |
Investments
Investments | 12 Months Ended |
Dec. 31, 2018 | |
Investments [Abstract] | |
Investments | Investments (a) Net Realized and Unrealized Investment (Losses) Gains The components of the net realized and unrealized investment (losses) gains for the years ended December 31, 2018 , 2017 and 2016 were as follows (in thousands of U.S. dollars): 2018 2017 2016 Net realized investment (losses) gains on fixed maturities and short-term investments $ (224,887 ) $ 28,632 $ 96,994 Net realized investment gains (losses) on equities 14,601 (4,052 ) 157 Net realized investment gains (losses) on other invested assets 7,136 (3,217 ) 5,365 Net realized investment gains on funds held–directly managed 1,200 508 1,355 Net realized investment (losses) gains $ (201,950 ) $ 21,871 $ 103,871 Change in net unrealized investment gains or losses on fixed maturities and short-term investments $ (150,926 ) $ 124,033 $ (90,334 ) Change in net unrealized investment gains or losses on equities 2,791 60,460 (14,850 ) Change in unrealized investment gains or losses on other invested assets (25,607 ) 32,790 25,488 Change in net unrealized investment gains or losses on funds held–directly managed (6,484 ) (5,567 ) (676 ) Net other realized and unrealized investment gains or losses (1,334 ) (1,096 ) 2,767 Change in net unrealized investment gains or losses $ (181,560 ) $ 210,620 $ (77,605 ) Impairment loss on investments in real estate $ (6,122 ) $ — $ — Net realized and unrealized investment (losses) gains $ (389,632 ) $ 232,491 $ 26,266 (b) Net Investment Income The components of net investment income for the years ended December 31, 2018 , 2017 and 2016 were as follows (in thousands of U.S. dollars): 2018 2017 2016 Fixed maturities $ 378,726 $ 382,676 $ 395,831 Short-term investments and cash and cash equivalents 13,279 5,363 1,915 Equities 3,499 (12 ) 4,382 Funds held and other (1) 44,699 29,068 34,161 Funds held–directly managed 4,674 7,742 9,993 Investment expenses (28,956 ) (22,766 ) (35,418 ) Net investment income $ 415,921 $ 402,071 $ 410,864 (1) 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 7.4% , 0.1% to 7.0% and 0.0% to 5.4% for the years ended December 31, 2018 , 2017 and 2016 , respectively. The increase in the interest rate range in 2018 and 2017 compared to 2016 relates to the inclusion of one contract from the acquired Aurigen business with a total funds held value of less than $2 million as at December 31, 2018. (c) Pledged and Restricted Assets At December 31, 2018 and 2017 , approximately $152 million and $274 million , respectively, of cash and cash equivalents and approximately $3,849 million and $3,422 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 2018 was mainly driven by collateral required to secure payment for claims related to hurricane Michael and the California wildfires. (d) Receivable for Securities Sold and Payable for Securities Purchased At December 31, 2018 , receivables for securities sold of $ 19 million was recorded within Other assets and payables for securities purchased of $ 80 million was recorded within Accounts payable, accrued expenses, and other in the Consolidated Balance Sheet. At December 31, 2017 , a net payable for securities purchased of $ 38 million was recorded within Accounts payable, accrued expenses, and other in the Consolidated Balance Sheet. (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 (see Note 16). (f) Summarized Financial Information of an Equity Method Investee In 2016, the Company purchased 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, 2018 and 2017 , the total carrying value of this investment, accounted for under the equity method, was $498 million and $538 million , respectively, included within Other invested assets in the Consolidated Balance Sheets. This equity method investment was considered significant as the interest in earnings of this investee exceeded 10% of the consolidated net income before income tax expense of the Company as at December 31, 2017 . As at December 31, 2018 , the investment in Almacantar was no longer considered significant. The summarized balance sheet and income statement of Almacantar is as follows (in thousands of U.S. dollars) : December 31, 2018 December 31, 2017 Current assets $ 1,007,293 $ 906,085 Noncurrent assets $ 1,341,825 $ 1,877,519 Current liabilities $ 577,660 $ 553,219 Noncurrent liabilities $ 357,625 $ 690,935 For the year ended December 31, 2018 December 31, 2017 December 31, 2016 Revenues $ 173,646 $ 130,333 $ 24,646 Operating (loss) profit (1) $ (14,562 ) $ 190,613 $ (47,082 ) Net (loss) income $ (21,038 ) $ 213,241 $ (37,059 ) (1) 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, 2018 | |
Disclosure - Funds Held-Directly Managed [Abstract] | |
Funds Held - Directly Managed | 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 were 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 inured to the benefit of the Company. The funds held–directly managed account was settled prior to December 31, 2018 upon commutation of the related run-off business and loss reserves. See also note 8(a) for discussion of the related reserve agreement. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | 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 and, in December 2018, specifically designated certain foreign exchange forward contracts as a highly effective hedge of certain foreign currency denominated short-term investments. As described below, up to September 30, 2016, the Company also utilized 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 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 certain investments in Other invested assets. 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. TBAs —The Company utilizes TBAs as part of its overall investment strategy and to enhance investment performance. The net fair values of derivatives included in Other invested assets within the Company’s Consolidated Balance Sheets and the related net notional values at December 31, 2018 and 2017 were as follows (in thousands of U.S. dollars): Asset derivatives at fair value Liability derivatives at fair value Net derivatives December 31, 2018 Fair value Net notional exposure Derivatives designated as hedges Foreign exchange forward contracts $ — $ (2,464 ) $ (2,464 ) $ 226,019 Total derivatives designated as hedges $ — $ (2,464 ) $ (2,464 ) Derivatives not designated as hedges Foreign exchange forward contracts $ 17,820 $ (1,209 ) $ 16,611 $ 2,231,871 Insurance-linked securities (1) 2,824 (2,568 ) 256 59,257 Total return swaps 1,697 (3,232 ) (1,535 ) 41,980 Interest rate swaps (2) 10 (9,194 ) (9,184 ) 1,840 Total derivatives not designated as hedges $ 22,351 $ (16,203 ) $ 6,148 Total derivatives $ 22,351 $ (18,667 ) $ 3,684 Asset Liability Net derivatives December 31, 2017 Fair value Net notional 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 ) (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 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. At December 31, 2018 and 2017, the Company held foreign exchange forward contracts, which were not designated as hedges, for the purpose of managing overall foreign currency risk exposure against the U.S. dollar. At December 31, 2018, the Company also held foreign exchange forward contracts which were designated as highly effective hedges of the Japanese Yen foreign exchange rate risk exposure against the U.S. dollar related to specific Japanese government issued bonds recorded in Short-term investments. The gain on foreign exchange forward contracts designated as cash flow hedges recognized in Accumulated other comprehensive loss at December 31, 2018 was less than $ 2 million . There were no amounts reclassified to income and no amounts excluded from the effectiveness assessment. The time value of money was not considered material to include as the duration to maturity is short (approximately three to four months). There were no derivatives designated as hedges at December 31, 2017 . The gains and losses in the Consolidated Statements of Operations for derivatives not designated as hedges for the years ended December 31, 2018 , 2017 and 2016 were as follows (in thousands of U.S. dollars): 2018 2017 2016 Foreign exchange forward contracts $ 45,143 $ (41,776 ) $ (53,437 ) Foreign currency option contracts — — 2,583 Total included in Net foreign exchange gains (losses) $ 45,143 $ (41,776 ) $ (50,854 ) Futures contracts $ 11,043 $ (11,683 ) $ (5,195 ) Insurance-linked securities 6,134 (563 ) 3,813 Total return swaps — 464 (1,096 ) Interest rate swaps 2,332 1,105 10,981 TBAs (13,614 ) 4,742 6,366 Total included in Net realized and unrealized investment gains (losses) $ 5,895 $ (5,935 ) $ 14,869 Total derivatives not designated as hedges $ 51,038 $ (47,711 ) $ (35,985 ) Offsetting of Derivatives The gross and net fair values of derivatives that are subject to offsetting in the Consolidated Balance Sheets at December 31, 2018 and 2017 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, 2018 Gross amounts recognized (1) Financial instruments Cash collateral received/pledged Net amount Total derivative assets $ 22,351 $ — $ 22,351 $ (544 ) $ (24,704 ) $ (2,897 ) Total derivative liabilities $ (18,667 ) $ — $ (18,667 ) $ 544 $ 5,221 $ (12,902 ) December 31, 2017 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 ) (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, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Intangible Assets | Goodwill and Intangible Assets 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, Aurigen and Claims Analytics at December 31, 2018 and 2017 were as follows (in thousands of U.S. dollars): 2018 Goodwill Definite- lived intangible assets Indefinite- lived intangible asset Total intangible assets Balance at January 1 $ 456,380 $ 150,679 $ 9,555 $ 160,234 Acquired during the year (1) — 4,138 — 4,138 Intangible assets amortization n/a (35,473 ) n/a (35,473 ) Balance at December 31 $ 456,380 $ 119,344 $ 9,555 $ 128,899 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 (2) — 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 n/a: Not applicable (1) In June 2018, the Company completed the acquisition for 100% of the assets in Claim Analytics Inc., a Canadian based provider of predictive analytics solutions for the insurance industry. In relation to this acquisition, the Company recorded intangible assets related to customer relationships of $ 4 million . (2) In April 2017, the Company completed the acquisition of Aurigen. The Company recorded 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. The gross carrying value and accumulated amortization of intangible assets included in the Consolidated Balance Sheets at December 31, 2018 and 2017 were as follows (in thousands of U.S. dollars): December 31, 2018 December 31, 2017 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 (1) $ 191,196 $ 191,196 $ — $ 191,196 $ 168,581 $ 22,615 Renewal rights 48,163 31,828 16,335 48,163 27,909 20,254 Customer relationships 67,546 36,188 31,358 63,408 29,353 34,055 Life VOBA 75,583 3,932 71,651 75,583 1,828 73,755 Total definite-lived intangible assets $ 382,488 $ 263,144 $ 119,344 $ 378,350 $ 227,671 $ 150,679 Indefinite-lived intangible asset: Insurance licenses 9,555 n/a 9,555 9,555 n/a 9,555 Total intangible assets $ 392,043 $ 263,144 $ 128,899 $ 387,905 $ 227,671 $ 160,234 n/a: Not applicable (1) The remaining intangible asset balance for unpaid losses and loss expenses was reduced to $nil in 2018 following commutation of the related business (see Notes 5 and 8(a)). Definite-lived intangible assets are amortized over a period of 10-13 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, 2018 and 2017 was as follows (in thousands of U.S. dollars): 2018 2017 P&C segment (1) $ 242,376 $ 241,530 Specialty segment 196,047 196,047 Life and Health segment (1) 17,957 18,803 Total $ 456,380 $ 456,380 (1) In 2018, the executive management responsibility and reporting for U.S. health business was reallocated from the Life and Health segment to the P&C segment as part of an internal organizational change. As a result, goodwill related to the U.S. health business was moved from the Life and Health segment to the P&C segment. 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 2019 $ 11,350 2020 9,941 2021 8,820 2022 8,912 2023 7,924 Total $ 46,947 |
Non-life and Life and Health Re
Non-life and Life and Health Reserves | 12 Months Ended |
Dec. 31, 2018 | |
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] | |
Non-life and Life and Health Reserves | 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, 2018 and 2017 was as follows (in thousands of U.S. dollars): December 31, 2018 December 31, 2017 (1) Case reserves $ 4,217,068 $ 4,180,554 ACRs 174,713 176,369 IBNR reserves 5,503,595 5,745,249 Non-life reserves $ 9,895,376 $ 10,102,172 (1) In 2018, U.S. health business was reallocated from the Life and Health segment to the P&C segment as part of an internal organizational change. As a result, the impacted 2017 comparatives have been reclassified to conform to current presentation. The reconciliation of the beginning and ending gross and net liability for non-life reserves for the years ended December 31, 2018 , 2017 and 2016 was as follows (in thousands of U.S. dollars): 2018 2017 (1) 2016 (1) Gross liability at beginning of year $ 10,102,172 $ 9,247,200 $ 9,317,003 Reinsurance recoverable at beginning of year 719,998 295,388 228,961 Net liability at beginning of year $ 9,382,174 $ 8,951,812 $ 9,088,042 Net incurred losses related to: Current year $ 3,417,366 $ 3,453,725 $ 3,243,506 Prior years (248,719 ) (448,158 ) (676,574 ) $ 3,168,647 $ 3,005,567 $ 2,566,932 Change in Paris Re Reserve Agreement (2) $ (397,493 ) $ (3,481 ) $ 5,518 Net paid losses related to: Current year $ (336,584 ) $ (472,291 ) $ (391,528 ) Prior years (2,585,403 ) (2,506,760 ) (2,096,945 ) $ (2,921,987 ) $ (2,979,051 ) $ (2,488,473 ) Effects of foreign exchange rate changes $ (186,911 ) $ 407,327 $ (220,207 ) Net liability at end of year $ 9,044,430 $ 9,382,174 $ 8,951,812 Reinsurance recoverable at end of year 850,946 719,998 295,388 Gross liability at end of year $ 9,895,376 $ 10,102,172 $ 9,247,200 (1) In 2018, U.S. health business was reallocated from the Life and Health segment to the P&C segment as part of an internal organizational change. As a result, the impacted 2017 and 2016 comparatives have been reclassified to conform to current presentation. (2) The change in reserve agreement includes (adverse) favorable development on Paris Re’s reserves which were guaranteed by Axa under the reserve agreement. For 2018, this balance also includes the reduction of the guaranteed reserves following the commutation of the agreement in the fourth quarter of 2018. For the year ended December 31, 2018 , 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 across multiple accident years, predominantly from the financial risks and property marine energy business. 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. 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 related to losses incurred prior to December 31, 2005. The reserve guarantee was 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 , the Company’s gross liability for non-life reserves included $426 million of guaranteed reserves, which were settled prior to December 31, 2018 as a result of the commutation of the remaining reserves under the Reserve Agreement. As a result of this commutation, a gain of $ 29 million was recorded in Other income within the Consolidated Statement of Operations during the year ended December 31, 2018. Prior to the commutation, favorable or adverse development related to the guaranteed reserves was 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. See also Note 5. Asbestos and Environmental Claims The Company’s net non-life reserves at December 31, 2018 and 2017 included $ 47 million and $134 million , respectively, related to asbestos and environmental claims. The gross liability for such claims at December 31, 2018 and 2017 was $ 54 million and $142 million , respectively. This primarily relates to casualty exposures in the United States arising from business written by the French branch of PartnerRe Europe and PartnerRe U.S. For the year ended December 31, 2017, the reserve included business related to Paris Re’s gross liability for asbestos and environmental claims for accident years 2005 and prior of $96 million , with any favorable or adverse development being subject to the Reserve Agreement, which was commuted in 2018. 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, 2018 , 2017 and 2016 was as follows (in thousands of U.S. dollars): 2018 2017 (1) 2016 (1) Gross liability at beginning of period $ 2,098,759 $ 1,722,330 $ 1,799,643 Reinsurance recoverable at beginning of period 9,287 2,726 3,046 Net liability at beginning of period $ 2,089,472 $ 1,719,604 $ 1,796,597 Liability acquired related to the acquisition of Aurigen — 67,916 — Net incurred losses 1,024,608 835,415 681,159 Net losses paid (818,916 ) (714,151 ) (618,599 ) Effects of foreign exchange rate changes (108,913 ) 180,688 (139,553 ) Net liability at end of period $ 2,186,251 $ 2,089,472 $ 1,719,604 Reinsurance recoverable at end of period 11,829 9,287 2,726 Gross liability at end of period $ 2,198,080 $ 2,098,759 $ 1,722,330 (1) In 2018, U.S. health business was reallocated from the Life and Health segment to the P&C segment as part of an internal organizational change. As a result, the impacted 2017 and 2016 comparatives have been reclassified to conform to current presentation. The increase in net losses incurred and paid in 2018 compared to 2017 was primarily due to growth in the business and the inclusion of losses and loss expenses from the acquisition of Aurigen for a full year in 2018 compared to three quarters in 2017. The increase in net losses incurred and paid in 2017 compared to 2016 was primarily due to the inclusion of Aurigen in 2017, following the acquisition in April 2017. 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, 2018 and 2017 . (c) Losses and Loss Expenses Losses and loss expenses in the Consolidated Statements of Operations for the years ended December 31, 2018 , 2017 and 2016 were comprised as follows (in thousands of U.S. dollars): 2018 2017 (1) 2016 (1) Non-life $ 3,168,647 $ 3,005,567 $ 2,566,932 Life and Health 1,024,608 835,415 681,159 Losses and loss expenses $ 4,193,255 $ 3,840,982 $ 3,248,091 (1) In 2018, U.S. health business was reallocated from the Life and Health segment to the P&C segment as part of an internal organizational change. As a result, the impacted 2017 and 2016 comparatives have been reclassified to conform to current presentation. 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 2018 , 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 2018 , 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 2017 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, 2018 Accident year 2012 2013 2014 2015 2016 2017 2018 Total of IBNR plus expected development on reported claims 2012 $ 2,637,210 $ 2,448,549 $ 2,293,018 $ 2,187,326 $ 2,155,244 $ 2,186,867 $ 2,163,492 $ 112,104 2013 2,871,364 2,697,368 2,521,182 2,467,928 2,434,587 2,407,116 162,521 2014 2,829,647 2,612,495 2,501,579 2,469,465 2,481,728 236,684 2015 2,882,763 2,593,207 2,487,617 2,502,972 334,162 2016 2,907,786 2,673,642 2,614,830 462,738 2017 2,971,510 2,934,163 829,431 2018 3,022,655 2,250,412 Total $ 18,126,956 $ 4,388,052 NET PAID LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - NON-LIFE For the year ended December 31, Accident year 2012 2013 2014 2015 2016 2017 2018 2012 $ 283,062 $ 1,052,510 $ 1,436,451 $ 1,603,321 $ 1,706,739 $ 1,797,576 $ 1,847,036 2013 242,288 1,292,908 1,644,109 1,845,155 1,975,252 2,068,311 2014 304,066 1,311,788 1,614,941 1,823,531 1,964,856 2015 302,077 1,217,019 1,615,742 1,836,225 2016 324,682 1,366,673 1,722,052 2017 386,326 1,503,129 2018 259,237 Total $ 11,200,846 Net reserves for Accident Years and exposures included in the triangles $ 6,926,110 All outstanding liabilities before Accident Year 2012, net of reinsurance 1,636,500 Total outstanding liabilities for unpaid claims $ 8,562,610 AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - NON-LIFE Years 1 2 3 4 5 6 7 Non-life 12% 39% 15% 8% 5% 4% 2% (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, 2018 Accident year 2012 2013 2014 2015 2016 2017 2018 Total of IBNR plus expected development on reported claims 2012 $ 660,871 $ 660,159 $ 582,063 $ 565,743 $ 550,347 $ 550,104 $ 538,271 $ 5,530 2013 679,013 576,448 544,485 529,249 524,968 514,596 1,160 2014 515,968 471,603 450,264 447,732 444,283 2,067 2015 590,211 548,168 523,012 515,396 7,738 2016 721,172 678,612 632,146 14,941 2017 1,027,772 1,063,309 92,550 2018 850,603 545,540 Total $ 4,558,604 $ 669,526 NET PAID LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - PROPERTY For the year ended December 31, Accident year 2012 2013 2014 2015 2016 2017 2018 2012 $ 99,815 $ 356,469 $ 449,848 $ 483,969 $ 495,215 $ 504,333 $ 507,376 2013 88,603 337,052 437,800 472,185 490,469 493,538 2014 93,134 323,623 387,815 414,068 423,758 2015 95,282 354,313 442,735 471,242 2016 134,960 455,747 536,791 2017 223,180 728,508 2018 76,618 Total $ 3,237,831 Net reserves for Accident Years and exposures included in the triangles $ 1,320,773 All outstanding liabilities before Accident Year 2012, net of reinsurance 105,071 Total outstanding liabilities for unpaid claims $ 1,425,844 AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - PROPERTY Years 1 2 3 4 5 6 7 Property 18% 49% 16% 6% 3% 1% 1% NET INCURRED LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - CASUALTY For the year ended December 31, December 31, 2018 Accident year 2012 2013 2014 2015 2016 2017 2018 Total of IBNR plus expected development on reported claims 2012 $ 690,205 $ 676,404 $ 648,784 $ 608,535 $ 591,092 $ 599,405 $ 594,889 $ 79,586 2013 799,716 796,471 747,464 729,478 725,012 721,474 136,016 2014 899,068 874,854 854,935 860,154 876,455 194,954 2015 897,153 838,361 814,108 856,355 262,967 2016 847,086 798,784 819,511 315,251 2017 758,715 727,301 399,584 2018 939,700 800,587 Total $ 5,535,685 $ 2,188,945 NET PAID LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - CASUALTY For the year ended December 31, Accident year 2012 2013 2014 2015 2016 2017 2018 2012 $ 51,528 $ 135,448 $ 205,164 $ 278,087 $ 334,143 $ 392,529 $ 423,467 2013 50,403 158,653 266,362 347,899 418,193 479,692 2014 70,987 207,906 311,431 411,596 499,040 2015 66,675 186,585 299,015 397,022 2016 36,622 165,828 265,586 2017 60,845 178,201 2018 61,932 Total $ 2,304,940 Net reserves for Accident Years and exposures included in the triangles $ 3,230,745 All outstanding liabilities before Accident Year 2012, net of reinsurance 1,436,281 Total outstanding liabilities for unpaid claims $ 4,667,026 AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - CASUALTY Years 1 2 3 4 5 6 7 Casualty 7% 15% 13% 12% 10% 9% 5% NET INCURRED LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - SPECIALTY For the year ended December 31, December 31, 2018 Accident year 2012 2013 2014 2015 2016 2017 2018 Total of IBNR plus expected development on reported claims 2012 $ 1,286,134 $ 1,111,986 $ 1,062,171 $ 1,013,048 $ 1,013,805 $ 1,037,358 $ 1,030,332 $ 26,988 2013 1,392,635 1,324,449 1,229,233 1,209,201 1,184,607 1,171,046 25,345 2014 1,414,611 1,266,038 1,196,380 1,161,579 1,160,990 39,663 2015 1,395,399 1,206,678 1,150,497 1,131,221 63,457 2016 1,339,528 1,196,246 1,163,173 132,546 2017 1,185,023 1,143,553 337,297 2018 1,232,352 904,285 Total $ 8,032,667 $ 1,529,581 NET PAID LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - SPECIALTY For the year ended December 31, Accident year 2012 2013 2014 2015 2016 2017 2018 2012 $ 131,719 $ 560,593 $ 781,439 $ 841,265 $ 877,381 $ 900,714 $ 916,193 2013 103,282 797,203 939,947 1,025,071 1,066,590 1,095,081 2014 139,945 780,259 915,695 997,867 1,042,058 2015 140,120 676,121 873,992 967,961 2016 153,100 745,098 919,675 2017 102,301 596,420 2018 120,687 Total $ 5,658,075 Net reserves for Accident Years and exposures included in the triangles $ 2,374,592 All outstanding liabilities before Accident Year 2012, net of reinsurance 95,148 Total outstanding liabilities for unpaid claims $ 2,469,740 AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - SPECIALTY Years 1 2 3 4 5 6 7 Specialty 11% 50% 15% 7% 4% 2% 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 7 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, 2018 was as follows (in thousands of U.S. dollars): December 31, 2018 Total outstanding liability for unpaid claims Property $ 1,425,844 Casualty 4,667,026 Specialty 2,469,740 Total outstanding liabilities for unpaid claims $ 8,562,610 Unallocated loss expenses $ 148,700 U.S. health net reserves (1) 327,810 Other 5,310 Total other liabilities $ 481,820 Net liability at end of year $ 9,044,430 Reinsurance recoverable on paid and unpaid claims Property $ 545,300 Casualty 63,161 Specialty 242,485 Reinsurance recoverable at end of year $ 850,946 Gross liability at end of year $ 9,895,376 (1) U.S. health business is not meaningful to include in the development tables as the estimated average duration of the health reserves is less than one year and substantially all claims are expected to be paid within two years, based on historical payout patterns. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2018 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | 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, 2018 and 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. (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, 2018 , 2017 and 2016 were as follows (in thousands of U.S. dollars): Premiums Written Premiums Earned Losses and Loss Expenses 2018 Assumed $ 6,299,929 $ 5,987,931 $ 4,601,564 Ceded 496,565 474,121 408,309 Net $ 5,803,364 $ 5,513,810 $ 4,193,255 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 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt The debt outstanding related to senior notes and capital efficient notes (CENts) and the carrying value recorded in the Consolidated Balance Sheets at December 31, 2018 and 2017 was comprised as follows (in thousands): December 31, 2018 December 31, 2017 Issuer Commitment Carrying Value Fair Value Carrying Value Fair Value Debt related to senior notes PartnerRe Finance B LLC $ 500,000 $ 500,000 $ 515,518 $ 500,000 $ 534,179 PartnerRe Ireland Finance DAC € 750,000 849,017 825,546 884,824 882,717 Total Debt related to senior notes $ 1,349,017 $ 1,341,064 $ 1,384,824 $ 1,416,896 Debt related to CENts PartnerRe Finance II Inc. $ 63,384 $ 70,989 $ 59,299 $ 70,989 $ 61,271 PartnerRe Finance B LLC and PartnerRe Finance II Inc. (collectively, U.S. finance entities) were utilized to issue U.S. dollar denominated debt while PartnerRe Ireland Finance DAC (Irish finance entity) was formed 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 In March 2010, PartnerRe Finance B LLC issued 5.500% senior notes with the option to redeem, 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. In September 2016, PartnerRe Ireland Finance DAC issued 1.250% senior notes 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 15, 2026 , 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. On November 1, 2016 , PartnerRe Finance A LLC early redeemed the 6.875% senior notes, with an aggregate principle of $250 million 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 during 2016, representing a make whole provision related to future interest foregone as a result of the early retirement. Debt related to 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 CENts 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, 2018 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Authorized Shares At December 31, 2018 and 2017 , the total authorized share capital (common and preferred) of the Company was $200 million . Common Shares Upon acquisition by Exor N.V. in March 2016, the publicly traded common shares were cancelled and 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's common shareholders' equity. 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, 2018 and 2017 , the issued and outstanding common share capital was $1.00 , owned by EXOR Nederland N.V. Redeemable Preferred Shares At December 31, 2018 and 2017 , 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 number of shares and 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. Following the acquisition by Exor N.V., on April 1, 2016, the Company launched an exchange offer whereby participating preferred shareholders could exchange any or all existing preferred shares for newly issued preferred shares reflecting, subject to certain exceptions, 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. 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, accordingly, 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 remained outstanding and continued to be listed on the NYSE. On November 1, 2016, the remaining Series D and E preferred shares were redeemed at $25 per share for an aggregate liquidation value of $150 million . In connection with the redemption, the Company recognized a loss on redemption of preferred shares of $5 million in 2016. The redemption price of all preferred shares is $25 per share plus accrued and unpaid dividends. In the event of liquidation of the Company, the preferred shares rank on parity with each other, but rank senior to the common shares, and the holders of the preferred shares would receive a distribution of $25 per share. 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. The Company may redeem the Series F preferred shares at any time or in part from time to time since March 1, 2018. 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. |
Dividend Restrictions and Statu
Dividend Restrictions and Statutory Requirements | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure - Dividend Restrictions and Statutory Requirements [Abstract] | |
Dividend Restrictions and Statutory Requirements | 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, 2018 , given the Company complied with its Bermuda solvency requirements, 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, 2018 , 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, 2018 , the maximum dividend that PartnerRe Bermuda could pay without prior regulatory approval was approximately $921 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 April 22, 2019. 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, to the lesser of net investment income or 10% of its total statutory capital and surplus as of the most recently filed annual statement. 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 SGD25 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, 2019. The statutory financial statements and returns of the Company’s reinsurance subsidiaries as at, and for the year ended, December 31, 2018 are due to be submitted to the relevant regulatory authorities later in 2019, 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. As a result, the comparative figures in the tables below reflect final figures submitted to regulatory authorities for 2017 and 2016. The statutory net income (loss) of PartnerRe Bermuda, PartnerRe Europe, PartnerRe U.S. and PartnerRe Asia for the years ended December 31, 2018 , 2017 and 2016 was as follows (in millions of U.S. dollars): 2018 2017 2016 PartnerRe Bermuda $ 138 $ (69 ) $ 531 PartnerRe Europe $ 1 $ 153 $ 61 PartnerRe U.S. $ (197 ) $ 24 $ 72 PartnerRe Asia $ (40 ) $ 18 $ 43 The required and actual statutory capital and surplus of PartnerRe Bermuda, PartnerRe Europe, PartnerRe U.S. and PartnerRe Asia at December 31, 2018 and 2017 was as follows (in millions of U.S. dollars): PartnerRe Bermuda PartnerRe Europe PartnerRe U.S. PartnerRe Asia 2018 2017 2018 2017 2018 2017 2018 2017 Required statutory capital and surplus $ 2,260 $ 1,767 $ 1,488 $ 1,639 $ 732 $ 662 $ 56 $ 57 Actual statutory capital and surplus $ 4,274 $ 3,683 $ 2,169 $ 2,215 $ 1,094 $ 1,336 $ 208 $ 246 At December 31, 2018 and 2017 , 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, and the ability of the Company to pay dividends to shareholders. 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, 2018 | |
Disclosure - Taxation [Abstract] | |
Taxation | 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 2013-2018 in Hong Kong, 2014-2018 in Canada, Ireland, and the U.S., 2015-2018 in Singapore, and 2016-2018 in France and 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 (benefit) expense for the years ended December 31, 2018 , 2017 and 2016 was as follows (in thousands of U.S. dollars): 2018 2017 2016 Current income tax (benefit) expense U.S. $ (6,872 ) $ (10,031 ) $ 2,798 Non U.S. 33,887 76,425 26,913 Total current income tax expense $ 27,015 $ 66,394 $ 29,711 Deferred income tax (benefit) expense U.S. $ (40,318 ) $ 5,538 $ 10,070 Non U.S. 3,256 (58,702 ) (127 ) Total deferred income tax (benefit) expense $ (37,062 ) $ (53,164 ) $ 9,943 Unrecognized tax expense (benefit) U.S. $ — $ — $ — Non U.S. 1,113 (2,872 ) (13,731 ) Total unrecognized tax expense (benefit) $ 1,113 $ (2,872 ) $ (13,731 ) Total income tax (benefit) expense U.S. $ (47,190 ) $ (4,493 ) $ 12,868 Non U.S. 38,256 14,851 13,055 Total income tax (benefit) expense $ (8,934 ) $ 10,358 $ 25,923 (Loss) 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 (loss) income before taxes was as follows for the years ended December 31, 2018 , 2017 and 2016 (in thousands of U.S. dollars): 2018 2017 2016 Domestic (Bermuda) $ 33,759 $ 82,219 $ 334,559 Foreign (128,687 ) 192,160 138,672 (Loss) income before taxes $ (94,928 ) $ 274,379 $ 473,231 Reconciliation of effective tax rate (% of (loss) income before taxes) Expected tax rate 0.0 % 0.0 % 0.0 % Foreign taxes at local expected tax rates 14.3 11.4 6.9 Impact of foreign exchange gains or losses (4.2 ) (3.2 ) 2.2 Unrecognized tax benefit (1.2 ) (1.0 ) (2.9 ) Tax-exempt income and expenses not deductible 7.3 (5.2 ) (3.2 ) Foreign branch tax (4.1 ) (24.6 ) 0.3 Valuation allowance (12.3 ) 24.8 0.3 Outside basis difference in subsidiary 6.7 — — Other 2.9 1.6 1.9 Actual tax rate 9.4 % 3.8 % 5.5 % 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, deferred tax assets and liabilities in the United States and France were revalued at December 31, 2017, resulting in an income tax expense of $5 million for the year ended December 31, 2017. During the year ended December 31, 2018, the Company completed its review of income tax enactment-date effects, including the revaluation of December 31, 2017 deferred tax assets and liabilities in the United States and France, and determined no significant measurement period adjustments were required. The components of net tax assets and liabilities at December 31, 2018 and 2017 were as follows (in thousands of U.S. dollars): December 31, 2018 December 31, 2017 Net tax assets $ 157,690 $ 133,169 Net tax liabilities (101,525 ) (154,947 ) Net tax assets (liabilities) $ 56,165 $ (21,778 ) December 31, 2018 December 31, 2017 Net current tax assets $ 102,091 $ 53,900 Net deferred tax liabilities (37,183 ) (67,737 ) Net unrecognized tax benefit (8,743 ) (7,941 ) Net tax assets (liabilities) $ 56,165 $ (21,778 ) 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, 2018 and 2017 were as follows (in thousands of U.S. dollars): December 31, 2018 December 31, 2017 Deferred tax assets Discounting of loss reserves and adjustment to life policy reserves $ 27,103 $ 34,806 Foreign tax credit carryforwards 161,177 163,134 Tax loss carryforwards 49,721 36,405 Unearned premiums 26,071 14,425 Other deferred tax assets 47,877 31,566 $ 311,949 $ 280,336 Valuation allowance (189,090 ) (185,615 ) Deferred tax assets $ 122,859 $ 94,721 Deferred tax liabilities Deferred acquisition costs $ 45,558 $ 29,204 Goodwill and other intangibles 65,114 70,674 Equalization reserves 16,606 27,252 Unrealized appreciation and timing differences on investments 5,012 13,361 Unrealized appreciation and timing differences on foreign exchange revaluations 21,117 13,413 Other deferred tax liabilities 6,635 8,554 Deferred tax liabilities $ 160,042 $ 162,458 Net deferred tax liabilities $ (37,183 ) $ (67,737 ) 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, 2018 relates to a foreign tax credit carryforward of $161 million in Ireland, other deferred foreign tax of $7 million in Ireland, net deferred tax assets of $13 million in Canada and $8 million in the United States. The valuation allowance recorded at December 31, 2017 related to a foreign tax credit carryforward of $163 million in Ireland, other deferred foreign tax of $7 million in Ireland, net deferred tax assets of $10 million in Canada and $7 million in the United States. At December 31, 2018, the deferred tax assets (after valuation allowance) included tax loss carryforwards of $17 million in Singapore and $1 million in Hong Kong that can be carried forward for an unlimited period of time, and $21 million in the United States that predominantly relates to non-life insurance company taxable losses and can be carried forward for 20 years. 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. The total amount of unrecognized tax benefits for the years ended December 31, 2018 , 2017 and 2016 was as follows (in thousands of U.S. dollars): January 1, 2018 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, 2018 Unrecognized tax benefits that, if recognized, would impact the effective tax rate $ 6,460 $ 73 $ 346 $ — $ (240 ) $ 6,639 Interest and penalties recognized on the above 1,481 691 — — (68 ) 2,104 Total unrecognized tax benefits, including interest and penalties $ 7,941 $ 764 $ 346 $ — $ (308 ) $ 8,743 January 1, 2017 Changes in tax Tax positions Change as a Impact of the 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, 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 $ 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 For the years ended December 31, 2018 , 2017 and 2016 , 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 (benefit) expense in its Consolidated Statements of Operations. At December 31, 2018 , an unrecognized tax benefit of $5 million is reasonably expected to reverse within twelve months. |
Share-Based Incentives
Share-Based Incentives | 12 Months Ended |
Dec. 31, 2018 | |
Share-based Arrangements with Employees and Nonemployees [Abstract] | |
Share-Based Incentives | 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 a period of three years. Unrestricted Class B shares can be purchased by these executives twice a year at a price based on the latest U.S. GAAP 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. The restricted Class B shares granted at $nil consideration are recognized at fair value over the restriction period. The compensation expense related to granted awards for the years ended December 31, 2018 and 2017 was approximately $3 million and $2 million , respectively. Shares purchased by executives in 2017 for a total of $11 million in cash were recorded as a liability on the Consolidated Balance Sheets, and was increased by less than $1 million for the excess of estimated fair value of the purchased shares over the purchase price paid as at December 31, 2018. Upon change in control of the Company on March 18, 2016, all equity share-based awards fully vested and any remaining unrecognized share based compensation was fully expensed. As a result, at December 31, 2018 and 2017 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. |
Retirement Benefit Arrangements
Retirement Benefit Arrangements | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Retirement Benefit Arrangements | 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, 2018 relates to a hybrid plan accounted for as a defined benefit plan under U.S. GAAP for the Company’s Zurich office employees (the Zurich Plan). Defined Contribution Plans Contributions are made by the Company, and in some locations, these contributions are supplemented by the local plan participants. Contributions are based on a percentage of the participant’s base salary depending upon competitive local market practice and vesting provisions meeting legal compliance standards and market trends. The accumulated benefits for the majority of these plans vest immediately or over a four-year period. As required by law, certain retirement plans also provide for death and disability benefits and lump sum indemnities to employees upon retirement. The Company incurred expenses for these defined contribution arrangements of $13 million , $11 million and $13 million for the years ended December 31, 2018 , 2017 and 2016 , 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, 2018 and 2017 , the funded status of the Zurich Plan was as follows (in thousands of U.S. dollars): 2018 2017 Underfunded pension obligation at beginning of year $ 64,342 $ 57,941 Change in pension obligation Service cost $ 7,203 $ 7,510 Interest cost 1,366 1,295 Plan participants’ contributions 2,938 2,905 Actuarial loss (9,439 ) 1,483 Plan amendments (19,945 ) — Benefits paid (4,901 ) (2,097 ) Foreign currency adjustments (584 ) 7,489 Change in pension obligation $ (23,362 ) $ 18,585 Change in fair value of plan assets Actual return on plan assets 958 1,131 Employer contributions 5,245 5,361 Plan participants’ contributions 2,938 2,905 Benefits paid (4,901 ) (2,097 ) Foreign currency adjustments (365 ) 4,884 Change in fair value of plan assets $ 3,875 $ 12,184 Underfunded pension obligation at end of year $ 37,105 $ 64,342 Additional information: Projected benefit obligation at end of year (1) $ 161,792 $ 185,154 Fair value of plan assets at end of year $ 124,687 $ 120,812 Underfunded pension obligation at end of year $ 37,105 $ 64,342 Accumulated pension obligation at end of year (2) $ 152,681 $ 172,806 (1) Represents the actuarial present value of all benefits attributed to employee service rendered to December 31, measured using assumptions as to future compensation levels (2) Represents the actuarial present value of benefits (whether vested or non-vested) attributed to employee service rendered and compensation to December 31, with no assumption about future compensation levels At December 31, 2018 and 2017 , the underfunded pension obligation of $ 37 million and $ 64 million , respectively, was included in Accounts payable, accrued expenses and other in the Consolidated Balance Sheets. The amounts recognized in Accumulated other comprehensive loss at December 31, 2018 and 2017 were $9 million (net of $2 million of taxes) and $34 million (net of $10 million of taxes), respectively. The net periodic benefit cost reported in Other expenses in the Consolidated Statements of Operations for the years ended December 31, 2018 , 2017 and 2016 was $ 10 million , $11 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, 2018 and 2017 were insured funds, including cash, of $125 million and $121 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. These insured funds meet the definition of Level 2 inputs of the fair value hierarchy as defined in Note 3(a). The assumptions used to determine the Zurich Plan’s pension obligation and net periodic benefit cost for the years ended December 31, 2018 , 2017 and 2016 were as follows: 2018 2017 2016 Pension obligation Net periodic benefit cost Pension obligation Net periodic benefit cost Pension obligation Net periodic benefit cost Discount rate 1.00 % 0.75 % 0.75 % 0.75 % 0.75 % 1.00 % Expected long-term return on plan assets — 0.75 % — 0.75 % — 1.00 % Rate of compensation increase 2.25 % 2.25 % 2.25 % 2.00 % 2.00 % 2.25 % At December 31, 2018 , estimated employer contributions to be paid in 2019 related to the Zurich Plan were $ 7 million and future benefit payments were estimated to be paid as follows (in thousands of U.S. dollars): Year Amount 2019 $ 4,573 2020 $ 4,703 2021 $ 5,952 2022 $ 5,884 2023 $ 6,353 2024 to 2028 $ 38,437 The Company does not believe that any of the Zurich Plan’s assets will be returned to the Company during 2019 . In September 2018, the Company approved an amendment to the Zurich Plan which resulted in a reduction of $ 20 million in the unfunded pension obligation recorded within Accumulated other comprehensive loss in the Consolidated Balance Sheet as at December 31, 2018, the measurement date. The amendments are effective January 1, 2019 and relate to employer contributions, employee contribution choices and spouse's benefits. The pension plan was also changed from a fully insured scheme with a guaranteed level of return to a partially insured scheme. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 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, 2018 and 2017 , 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. 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, 2018 and 2017 , 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. 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 2031. 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, 2018 (in thousands of U.S. dollars): Year Amount 2019 $ 14,074 2020 17,169 2021 14,783 2022 12,536 2023 12,107 2024-2031 55,409 Total future minimum rental payments $ 126,078 Total future sub-lease rental income through 2020 $ 1,316 Rent expense for the years ended December 31, 2018 , 2017 and 2016 was $20 million , $26 million and $25 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 $16 million , with $ 11 million and $ 4 million to be paid during 2019 and 2020 , respectively, and the remainder to be paid through 2023 . The Company has entered into strategic investments, including investments in VIEs (see Note 4(e)), with unfunded capital commitments. The Company expects to fund capital commitments totaling $647 million with $321 million , $199 million , $96 million , $23 million , and $ 8 million to be paid during 2019 , 2020 , 2021 , 2022 , and 2023 , respectively, as of December 31, 2018 . 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, 2018 and 2017 , the Company’s participation in the facility was $67 million . At December 31, 2018 , 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, 2018 , 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, 2018 | |
Line of Credit Facility [Abstract] | |
Credit Agreements | 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, 2018 , the total amount of such credit facilities available to the Company was approximately $603 million , with the significant facilities as follows: • $300 million combined credit facility, with the first $100 million being unsecured and any further utilization secured. This credit facility matures each year on November 14 , and automatically extends for a further year, unless canceled by either counterparty • $150 million secured credit facility, which the Company entered into an agreement to modify during 2018. Under the terms of the agreement, the credit facility was increased from $55 million and the maturity date was extended to December 17, 2020 , and automatically extends for a further year unless canceled by either counterparty • $50 million secured credit facility, which the Company entered into an agreement to modify during 2018. Under the terms of the agreement, the credit facility was increased from $12 million and the maturity date was extended to December 21, 2019 , and automatically extends for a further year unless canceled by either counterparty • $101 million secured and unsecured credit facilities, related to issued letters of credit which had not yet expired under facilities that were terminated prior to December 31, 2018. Under the terms of certain reinsurance agreements, irrevocable letters of credit were issued for a total of $105 million on an unsecured basis and $370 million on a secured basis at December 31, 2018 in respect of losses and unearned premium reserves. The committed secured credit facilities maintained by the Company are used for the issuance of letters of credit which must be fully secured with either cash, 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/or result in the Company not being allowed to issue any new letters of credit. At December 31, 2018 , no conditions of default existed under these facilities. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure - Agreements With Related Parties [Abstract] | |
Related Party Transactions | Related Party Transactions During 2018 and 2017 the Company declared and paid to EXOR Nederland N.V. (Exor) common share dividends totaling $ 48 million and $145 million , respectively. In the normal course of its underwriting activities, the Company has entered into reinsurance agreements with companies affiliated with the Company. In the normal course of its investment operations, the Company bought or held securities of companies affiliated with the Company, including the following: • In 2018, the Company entered into an agreement with Exor to invest in a newly formed limited partnership. At December 31, 2018 , the carrying value of the Company's investment in the limited partnership was $11 million . This investment is accounted for using the equity method and is included within Other invested assets in the Consolidated Balance Sheet. • In 2017, the Company invested $500 million in two Exor managed equity funds. At December 31, 2018 and 2017 , the carrying value of these investments totaled $563 million and $551 million , respectively. These investments are recorded at fair value and are included within Equities in the Consolidated Balance Sheets. • In 2017, the Company purchased certain real estate investments from Almacantar, an equity method investee (see Note 4(f)) for a total cash consideration of £55 million ( $83 million ). The carrying value of these investments decreased from $83 million at December 31, 2017 to $73 million at December 31, 2018 as a result of a $6 million writedown to net realizable value in 2018 and a $4 million foreign currency impact of translating the GBP denominated balance to U.S. dollars. These investments are classified as Investments in real estate in the Consolidated Balance Sheets. During the years ended December 31, 2018, 2017 and 2016, the Company entered into various agreements with Exor whereby Exor provides services in exchange for fees as follows: • advisory services related to certain real estate investments where the Company paid approximately $45 thousand for services rendered in each of 2018 and 2017 • investment advisory services commencing in September 2018 where the Company paid $273 thousand related to services provided in 2018 • certain advisory services for a fixed annual fee of €300 thousand for 2016 and for the first quarter of 2017. The fees were amended effective April 1, 2017 to an annual fee of $500 thousand . Fees paid for each of 2016 and 2017 were less than $500 thousand . The fees for 2018 were unpaid at December 31, 2018. The transactions between related parties discussed above were entered into at arm's-length. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Segment Information | 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. Effective July 1, 2018, the executive management responsibility and reporting for U.S. health business was reallocated from the Life and Health segment to the P&C segment as part of an internal organizational change. As a result, the financial results for U.S. health business for 2018, 2017 and 2016 has been included in the P&C segment and the impacted 2017 and 2016 comparatives have been reclassified from the Life and Health to the P&C segment to conform to current presentation. The U.S. health results for the year ended December 31, 2018 and the reclassifications made from the Life and Health to the P&C segment for the years ended December 31, 2017 and 2016 are presented below (in millions of U.S. dollars) : 2018 2017 2016 Gross premiums written $ 405 $ 416 $ 364 Net premiums written $ 356 $ 379 $ 318 Decrease (increase) in unearned premiums 12 (12 ) (1 ) Net premiums earned $ 368 $ 367 $ 317 Losses and loss expenses (309 ) (431 ) (246 ) Acquisition costs (30 ) (39 ) (39 ) Technical result $ 29 $ (103 ) $ 32 Other expenses (12 ) (17 ) (22 ) Underwriting result $ 17 $ (120 ) $ 10 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. The Specialty segment is comprised of specialty business underwritten, including treaty and facultative contracts. The Life and Health segment in comprised of life, annuity, and non-U.S. 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 underwriting result and net investment income allocated to life business. The segment results for the years ended December 31, 2018 , 2017 and 2016 are presented below (in millions of U.S. dollars, except ratios). Segment Information For the year ended December 31, 2018 P&C segment (6) Specialty segment Total Non-life Life and Health segment (6) Corporate and Other Total Gross premiums written $ 3,015 $ 2,050 $ 5,065 $ 1,235 $ — $ 6,300 Net premiums written $ 2,722 $ 1,870 $ 4,592 $ 1,211 $ — $ 5,803 (Increase) decrease in unearned premiums (187 ) (103 ) (290 ) 1 — (289 ) Net premiums earned $ 2,535 $ 1,767 $ 4,302 $ 1,212 $ — $ 5,514 Losses and loss expenses (2,073 ) (1,096 ) (3,169 ) (1,025 ) — (4,194 ) Acquisition costs (606 ) (502 ) (1,108 ) (129 ) — (1,237 ) Technical result $ (144 ) $ 169 $ 25 $ 58 $ — $ 83 Other income 30 — 30 13 7 50 Other expenses (75 ) (27 ) (102 ) (51 ) (153 ) (306 ) Underwriting result $ (189 ) $ 142 $ (47 ) $ 20 n/a $ (173 ) Net investment income 66 350 416 Allocated underwriting result $ 86 n/a n/a Net realized and unrealized investment losses (390 ) (390 ) Interest expense (43 ) (43 ) Amortization of intangible assets (35 ) (35 ) Net foreign exchange gains 119 119 Income tax benefit 9 9 Interest in earnings of equity method investments 11 11 Net loss n/a $ (86 ) Loss ratio (1) 81.8 % 62.0 % 73.7 % Acquisition ratio (2) 23.9 28.4 25.8 Technical ratio (3) 105.7 % 90.4 % 99.5 % Other expense ratio (4) 3.0 1.5 2.4 Combined ratio (5) 108.7 % 91.9 % 101.9 % (1) Loss ratio is obtained by dividing losses and loss expenses by net premiums earned. (2) Acquisition ratio is obtained by dividing acquisition costs by net premiums earned. (3) Technical ratio is defined as the sum of the loss ratio and the acquisition ratio. (4) Other expense ratio is obtained by dividing other expenses by net premiums earned. (5) Combined ratio is defined as the sum of the technical ratio and the other expense ratio. (6) In 2018, the executive management responsibility and reporting for U.S. health business was reallocated from the Life and Health segment to the P&C segment as part of an internal organizational change. As a result, the financial results for U.S. health business for 2018 has been included in the P&C segment and the impacted 2017 and 2016 comparatives have been reclassified from the Life and Health to the P&C segment to conform to current presentation. n/a: Not applicable Segment Information For the year ended December 31, 2017 P&C segment Specialty Total Non-life Life and Health segment Corporate and Other Total Gross premiums written $ 2,671 $ 1,934 $ 4,605 $ 983 $ — $ 5,588 Net premiums written $ 2,375 $ 1,780 $ 4,155 $ 965 $ — $ 5,120 (Increase) decrease in unearned premiums (45 ) (55 ) (100 ) 5 — (95 ) Net premiums earned $ 2,330 $ 1,725 $ 4,055 $ 970 $ — $ 5,025 Losses and loss expenses (2,051 ) (955 ) (3,006 ) (835 ) — (3,841 ) Acquisition costs (534 ) (489 ) (1,023 ) (97 ) — (1,120 ) Technical result $ (255 ) $ 281 $ 26 $ 38 $ — $ 64 Other (loss) income — (1 ) (1 ) 14 2 15 Other expenses (88 ) (33 ) (121 ) (44 ) (183 ) (348 ) Underwriting result $ (343 ) $ 247 $ (96 ) $ 8 n/a $ (269 ) Net investment income 60 342 402 Allocated underwriting result $ 68 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 88.0 % 55.4 % 74.1 % Acquisition ratio 22.9 28.4 25.2 Technical ratio 110.9 % 83.8 % 99.3 % Other expense ratio 3.8 1.9 3.0 Combined ratio 114.7 % 85.7 % 102.3 % Segment Information For the year ended December 31, 2016 P&C segment Specialty Total Life and Health segment Corporate Total Gross premiums written $ 2,633 $ 1,920 $ 4,553 $ 804 $ — $ 5,357 Net premiums written $ 2,379 $ 1,776 $ 4,155 $ 799 $ — $ 4,954 Decrease (increase) in unearned premiums 24 (9 ) 15 1 — $ 16 Net premiums earned $ 2,403 $ 1,767 $ 4,170 $ 800 $ — $ 4,970 Losses and loss expenses (1,494 ) (1,073 ) (2,567 ) (681 ) — (3,248 ) Acquisition costs (595 ) (500 ) (1,095 ) (92 ) — (1,187 ) Technical result $ 314 $ 194 $ 508 $ 27 $ — $ 535 Other income (loss) 3 (1 ) 2 10 3 15 Other expenses (163 ) (88 ) (251 ) (44 ) (177 ) (472 ) Underwriting result $ 154 $ 105 $ 259 $ (7 ) n/a $ 78 Net investment income 58 353 411 Allocated underwriting result $ 51 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 62.1 % 60.8 % 61.6 % Acquisition ratio 24.8 28.3 26.3 Technical ratio 86.9 % 89.1 % 87.9 % Other expense ratio 6.8 4.9 6.0 Combined ratio 93.7 % 94.0 % 93.9 % 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, 2018 , 2017 and 2016 (in millions of U.S. dollars, except percentages): 2018 2017 2016 North America $ 2,929 47 % $ 2,620 47 % $ 2,573 48 % Europe 2,152 34 1,866 33 1,888 35 Asia, Australia and New Zealand 699 11 565 10 478 9 Latin America, and the Caribbean 260 4 267 5 182 4 Middle East, Africa, Russia and the Commonwealth of Independent States (CIS) 260 4 270 5 236 4 Total $ 6,300 100 % $ 5,588 100 % $ 5,357 100 % 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 4% of total gross premiums written during the years ended December 31, 2018 , 2017 and 2016 , respectively. The Company has two brokers that individually accounted for 10% or more of its gross premiums written during the years ended December 31, 2018 , 2017 and 2016 , as follows: Broker 2018 2017 2016 Marsh (including Guy Carpenter) 22 % 25 % 22 % Aon Group (including the Benfield Group) 22 % 22 % 22 % The following table summarizes the percentage of gross premiums written through these two brokers by segment for the years ended December 31, 2018 , 2017 and 2016 : 2018 2017 2016 P&C 53 % 53 % 52 % Specialty 52 % 56 % 46 % Life and Health 11 % 12 % 13 % |
Other Expenses
Other Expenses | 12 Months Ended |
Dec. 31, 2018 | |
Other Expenses [Abstract] | |
Other expenses | Other Expenses For the years ended December 31, 2018 and 2017, the Company recorded $ 11 million and $29 million of reorganization related costs. In addition, for the year ended December 31, 2017, the Company recorded $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 . |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Event [Line Items] | |
Subsequent Events | Subsequent Events On March 20, 2019, the Company's Board of Directors declared the payment of dividends on common shares of $ 80 million . |
SCHEDULE I - Consolidated Summa
SCHEDULE I - Consolidated Summary of Investments Other Than Investments in Related Parties | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-15, Insurance Companies, 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, 2018 (Expressed in thousands of U.S. dollars) Type of investment Cost (1) Fair Value Amount at which shown in the balance sheet Fixed maturities U.S. government and government sponsored enterprises $ 2,333,371 $ 2,345,008 $ 2,345,008 U.S. states, territories and municipalities 114,857 134,593 134,593 Non-U.S. sovereign government, supranational and government related 2,122,510 2,158,642 2,158,642 Corporate bonds 5,667,992 5,611,678 5,611,678 Asset-backed securities 56,892 58,683 58,683 Residential mortgage-backed securities 2,332,103 2,331,230 2,331,230 Other mortgage-backed securities 196 11 11 Fixed maturities $ 12,627,921 $ 12,639,845 $ 12,639,845 Equities Banks, trust and insurance companies $ 22,446 $ 27,978 $ 27,978 Industrial, miscellaneous and all other 598,866 666,323 666,323 Equities $ 621,312 $ 694,301 $ 694,301 Short-term investments $ 495,050 $ 493,726 $ 493,726 Other invested assets (2) $ 784,603 $ 784,603 Total (3) $ 14,612,475 $ 14,612,475 (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) Other invested assets excludes the Company’s investments accounted for using the equity method of accounting of $704 million . (3) Investments in real estate recorded at cost less accumulated depreciation and impairment of $73 million are excluded from total investments above. |
SCHEDULE II - Condensed Financi
SCHEDULE II - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information 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, 2018 December 31, 2017 Assets Fixed maturities, at fair value (amortized cost: 2018, $109,824; 2017, $52,406) $ 109,951 $ 51,748 Cash and cash equivalents 1,081 26,681 Investments in subsidiaries 8,831,161 8,991,358 Intercompany loans and balances receivable 657,156 1,135,749 Other 4,588 4,246 Total assets $ 9,603,937 $ 10,209,782 Liabilities Intercompany loans and balances payable (1) $ 3,061,210 $ 3,435,693 Accounts payable, accrued expenses and other 26,213 28,977 Total liabilities 3,087,423 3,464,670 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 (138,634 ) (90,281 ) Retained earnings 4,230,449 4,410,694 Total shareholders’ equity 6,516,514 6,745,112 Total liabilities and shareholders’ equity $ 9,603,937 $ 10,209,782 (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. SCHEDULE II PartnerRe Ltd. Condensed Statements of Operations and Comprehensive (Loss) Income—Parent Company Only (Expressed in thousands of U.S. dollars) For the year ended December 31, 2018 December 31, 2017 December 31, 2016 Revenues Net investment income $ 1,844 $ 1,890 $ 2,690 Interest income on intercompany loans 13,015 12,201 12,109 Net realized and unrealized investment (losses) gains (1,632 ) 91 2,993 Other (loss) income (6,778 ) 8,418 2,483 Total revenues 6,449 22,600 20,275 Expenses Other expenses 25,792 40,131 116,758 Interest expense on intercompany loans 15,041 12,085 7,016 Net foreign exchange (gains) losses (50,276 ) 35,753 (10,788 ) Total expenses (9,443 ) 87,969 112,986 Income (loss) before equity in net (loss) income of subsidiaries 15,892 (65,369 ) (92,711 ) Equity in net (loss) income of subsidiaries (101,886 ) 329,390 540,019 Net (loss) income (85,994 ) 264,021 447,308 Preferred dividends 46,416 46,416 55,043 Loss on redemption of preferred shares — — 4,908 Net (loss) income attributable to common shareholder $ (132,410 ) $ 217,605 $ 387,357 Comprehensive (loss) income Net (loss) income $ (85,994 ) $ 264,021 $ 447,308 Other comprehensive (loss) income (48,353 ) (15,712 ) 8,714 Comprehensive (loss) income $ (134,347 ) $ 248,309 $ 456,022 SCHEDULE II PartnerRe Ltd. Condensed Statements of Cash Flows—Parent Company Only (Expressed in thousands of U.S. dollars) For the year ended December 31, 2018 December 31, 2017 December 31, 2016 Cash flows from operating activities Net (loss) income $ (85,994 ) $ 264,021 $ 447,308 Adjustments to reconcile net income to net cash used in operating activities: Equity in net loss (income) of subsidiaries 101,886 (329,390 ) (540,019 ) Other, net (29,283 ) 25,239 11,205 Net cash used in operating activities (13,391 ) (40,130 ) (81,506 ) Cash flows from investing activities Advances to/from subsidiaries, net (261,666 ) 11,138 (167,254 ) Net issue of intercompany loans receivable and payable 299,279 — 542,193 Sales and redemptions of fixed maturities 65,025 40,379 99,888 Purchases of fixed maturities (124,932 ) (16,414 ) (7,839 ) Other, net (680 ) 414 (2,408 ) Net cash (used in) provided by investing activities (22,974 ) 35,517 464,580 Cash flows from financing activities Cash dividends paid to common and preferred shareholders (1) — — (240,725 ) 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 ) Effect of foreign exchange rate changes on cash 10,765 8,144 55 (Decrease) increase in cash and cash equivalents (25,600 ) 3,531 (71,685 ) Cash and cash equivalents—beginning of year 26,681 23,150 94,835 Cash and cash equivalents—end of year $ 1,081 $ 26,681 $ 23,150 (1) During the years ended December 31, 2018, 2017 and 2016, dividends paid to common and preferred shareholders of $ 94 million , $191 million and $251 million , respectively, 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, 2018 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
Supplementary Insurance Information | PartnerRe Ltd. Supplementary Insurance Information For the years ended December 31, 2018, 2017 and 2016 (Expressed in thousands of U.S. dollars) Deferred Policy Acquisition Costs (1) Gross Reserves (1) Unearned Premiums (1) Other Benefits Payable (1) Premium Revenue (1) Net Investment Income (2) Losses Incurred (1) Amortization of DAC (1) Other Expenses (1), (3) Premiums Written (1) 2018 Non-life $ 553,535 $ 9,895,376 $ 2,062,736 $ — $ 4,301,862 $ N/A $ 3,168,647 $ 1,107,760 $ 102,397 $ 4,592,282 Life and Health 189,511 — 10,217 2,198,080 1,211,948 65,567 1,024,608 129,704 51,055 1,211,082 Corporate and Other — — — — — 350,354 — — 152,116 — Total $ 743,046 $ 9,895,376 $ 2,072,953 $ 2,198,080 $ 5,513,810 $ 415,921 $ 4,193,255 $ 1,237,464 $ 305,568 $ 5,803,364 2017 Non-life $ 493,196 $ 10,102,172 $ 1,807,013 $ — $ 4,055,191 $ N/A $ 3,005,567 $ 1,023,065 $ 121,134 $ 4,154,809 Life and Health 179,111 — 11,986 2,098,759 969,790 59,895 835,415 96,708 44,346 965,117 Corporate and Other — — — — — 342,176 — — 182,918 — Total $ 672,307 $ 10,102,172 $ 1,818,999 $ 2,098,759 $ 5,024,981 $ 402,071 $ 3,840,982 $ 1,119,773 $ 348,398 $ 5,119,926 2016 Non-life $ 439,195 $ 9,247,200 $ 1,608,880 $ — $ 4,170,389 $ N/A $ 2,566,932 $ 1,095,251 $ 251,306 $ 4,154,707 Life and Health 158,044 — 14,916 1,722,330 799,207 57,664 681,159 91,351 43,502 798,763 Corporate and Other — — — — — 353,200 — — 177,096 — Total $ 597,239 $ 9,247,200 $ 1,623,796 $ 1,722,330 $ 4,969,596 $ 410,864 $ 3,248,091 $ 1,186,602 $ 471,904 $ 4,953,470 (1) In 2018, U.S. health business was reallocated from the Life and Health segment to the P&C segment as part of an internal organizational change. As a result, the impacted 2017 and 2016 comparatives have been reclassified to conform to current presentation. (2) 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. (3) Other expenses are a component of underwriting result for the Non-life business and Life and Health segment as the Company allocates certain other expenses to its operating segments that vary with business written. |
SCHEDULE IV - Reinsurance
SCHEDULE IV - Reinsurance | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
Reinsurance | PartnerRe Ltd. Reinsurance (1) For the years ended December 31, 2018, 2017 and 2016 (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 2018 Life reinsurance in force $ — $ 16,349,433 $ 349,064,323 $ 332,714,890 105 % Premiums earned Life $ — $ 24,025 $ 1,184,604 $ 1,160,579 102 % Accident and health — — 51,369 51,369 100 % P&C (2) 248,501 450,096 4,503,457 4,301,862 105 % Total premiums $ 248,501 $ 474,121 $ 5,739,430 $ 5,513,810 104 % 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 — — 43,132 43,132 100 % P&C (2) 261,760 428,471 4,221,902 4,055,191 104 % 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 $ — $ 4,694 $ 778,754 $ 774,060 101 % Accident and health — — 25,147 25,147 100 % P&C (2) 251,492 369,541 4,288,438 4,170,389 103 % Total premiums $ 251,492 $ 374,235 $ 5,092,339 $ 4,969,596 102 % (1) In 2018, U.S. health business was reallocated from the Life and Health segment to the P&C segment as part of an internal organizational change. As a result, the impacted 2017 and 2016 comparatives have been reclassified to conform to current presentation. (2) P&C includes Specialty and U.S. health premiums. |
SCHEDULE VI - Supplemental Info
SCHEDULE VI - Supplemental Information Concerning Property-Casualty Insurance Operations | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Abstract] | |
Supplemental InformationConcerning Property-Casualty Insurance Operations | PartnerRe Ltd. Supplemental Information Concerning Property-Casualty Insurance Operations (1) For the years ended December 31, 2018, 2017 and 2016 (Expressed in thousands of U.S. dollars) Losses and Loss Expenses Incurred Related to Affiliation with Registrant Deferred Policy Acquisition Costs Liability for Unpaid Losses and Loss Expenses Unearned Premiums Premiums Earned Current year Prior year Amortization of Deferred Policy Acquisition Costs Paid Losses and Loss Expenses Premiums Written Consolidated subsidiaries 2018 $ 553,535 $ 9,895,376 $ 2,062,736 $ 4,301,862 $ 3,417,366 $ (248,719 ) $ 1,107,760 $ 2,921,987 $ 4,592,282 2017 $ 493,196 $ 10,102,172 $ 1,807,013 $ 4,055,191 $ 3,453,725 $ (448,158 ) $ 1,023,065 $ 2,979,051 $ 4,154,809 2016 $ 439,195 $ 9,247,200 $ 1,608,880 $ 4,170,389 $ 3,243,506 $ (676,574 ) $ 1,095,251 $ 2,488,473 $ 4,154,707 (1) In 2018, U.S. health business was reallocated from the Life and Health segment to the P&C segment as part of an internal organizational change. As a result, the impacted 2017 and 2016 comparatives have been reclassified to conform to current presentation. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
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. 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 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, morbidity, critical illness, persistency and future investment income, with appropriate provision to reflect uncertainty. For traditional long-duration contracts, the assumptions are locked in at contract inception and modified if the Company deems the reserves to be inadequate. 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, morbidity 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 is credited with investment income 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 difference between the consideration received or paid and the estimated liability for unpaid losses is determined upon entering into the contract and, if a loss, recognized into income immediately, and if a gain, the gain is deferred and earned over the expected settlement period of the contract, with the unearned portion recorded as a component of deposit liabilities. Actuarial studies are used to estimate the liabilities under these contracts and the appropriate accretion rates to increase or decrease the liabilities over the term of the contracts. The change in the estimated liability 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 Fixed maturities and Equities with changes in fair value recorded in Net realized and unrealized investment gains or losses in the Consolidated Statements of Operations. The Company recognizes Other invested assets at fair value (except for those that are accounted for using the equity method of accounting). Other invested assets consist of equity investments in non-publicly traded companies; privately placed corporate loans, notes and loans receivable and notes securitization; and derivative financial instruments. 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 rights, 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. Where the equity method is used, the Company's share of profits or losses of the investee are recorded in Interest in earnings or losses of equity method investees in the Consolidated Statements of Operations. Where the fair value option is elected, the investment is recognized in the Consolidated Balance Sheets at fair value with changes in fair value recorded in Net realized and unrealized investment gains or losses in the Consolidated Statements of Operations. See Note 2(n) below for significant accounting policy for derivatives. Short-term investments, which comprise securities with a maturity greater than three months but less than one year from the date of purchase, are recorded at fair value by electing either the fair value option with changes in fair value recorded in Net realized and unrealized gains or losses included in the Consolidated Statements of Operations or by designating as available-for-sale with changes in fair value recorded in Other comprehensive income or loss. Investments in real estate are recorded at cost less any write down for impairment, where applicable. 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. Net investment income includes interest and dividend income, amortization of premiums and discounts on fixed maturities and short-term investments, and is net of investment expenses and withholding taxes. Investment income is recognized when earned and accrued to the balance sheet date. 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. 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. The valuation techniques used by the Company are generally commensurate with standard valuation techniques for each asset class (see Note 3). |
Funds Held - Directly Managed | The Company elected 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. The changes in fair value and the realized gains or losses related to the segregated investment portfolio underlying the funds held–directly managed account were recorded in Net realized and unrealized investment gains or losses in the Consolidated Statements of Operations. The funds were settled prior to December 31, 2018 as a result of a commutation of the related business (see Notes 3, 4 and 5). |
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 (as at December 31) or more frequently if events or changes in circumstances indicate that the carrying amount may not be recoverable. If, as a result of the assessment, the Company determines that the value of its goodwill is impaired, goodwill will be written down in the period in which the determination is made. |
Intangible Assets | Intangible assets represent the fair value adjustments related to non-life reserves, renewal rights, and customer relationships; value of life business acquired; 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 (as at December 31) or more frequently if events or changes in circumstances indicate that impairment may exist. Impairment is recognized if the carrying values of the intangible assets are not recoverable from their undiscounted cash flows and is measured as the difference between the carrying value and the fair value. |
Income Taxes | 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. The change in currency translation adjustment is reflected in 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 transaction gains or losses are included in Net foreign exchange gains or losses in the Consolidated Statements of Operations. |
Derivatives | The Company’s investment strategy allows for the use of derivative instruments, subject to strict limitations. The Company may use derivative financial 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. On the date the Company enters into a derivative contract, management determines whether or not the derivative is to be used and designated as a hedge of an identified underlying risk exposure (a designated hedge). The Company’s derivative instruments are recorded in Other invested assets in the Consolidated Balance Sheets at fair value, with gains and losses associated with changes in fair value recognized in either Net realized and unrealized investment gains or losses or Net foreign exchange gains or losses in the Consolidated Statements of Operations, or in Other comprehensive income, depending on the nature and designation of the derivative instrument, as described below (see also Note 6). The Company has entered into derivatives, in the form of foreign exchange forward contracts, designated as a highly effective hedge of the foreign exchange rate risk exposure related to certain short-term investments which are foreign currency denominated debt securities purchased in December 2018. The hedged assets were designated as available-for-sale with changes in fair value recorded in Change in unrealized gains or losses on investments, net of tax, within Other comprehensive income. The changes in fair value of the designated hedges are recorded in Change in fair value of designated cash flow hedges within Other comprehensive income. The Company enters from time to time into insurance-linked securities, including weather and longevity related transactions, 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 also 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. Other than the designated cash flow hedge referred to above, for the remaining derivatives employed by the Company to address foreign currency risk exposure related to fixed income securities, and for other reinsurance assets and liabilities, the derivatives are not designated as hedges. The changes in fair value of foreign exchange forward contracts and foreign currency option contracts not designated as hedges are recognized 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. As part of its overall strategy to manage its level of currency exposure, up to September 30, 2016 the Company had used foreign exchange forward contracts to hedge or partially hedge the net investment in certain subsidiaries and branches whose functional currencies are not the U.S. dollar. Such designated hedges were de-designated in 2016. Up to the time of de-designation, the changes in fair value of this designated hedge and the hedged item related to foreign currency risk exposure were recognized in Currency translation adjustment in the Consolidated Balance Sheets. For foreign exchange forward contracts not designated as net investment hedges, the change in fair value is included in Net foreign exchange gains (losses). At December 31, 2018 and 2017 the Company did not have any designated net investment hedges. The Company also uses, from time to time, interest rate swaps to mitigate exposure to interest rate volatility. The changes in fair value of these derivatives are recorded in Net realized and unrealized gains or losses. The Company formally documents all relationships between designated hedging instruments and hedged items, as well as its risk management objectives 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. Th e Company's method for assessing the effectiveness of the designated hedge entered in December 2018 is a qualitative assessment as the Company has determined that the hedging instrument (the designated foreign currency forward contracts) and the hedged assets (the available-for-sale foreign currency denominated short-term investments) are perfectly aligned as they relate to the hedged risk, the foreign currency exchange rate risk exposure. The Company will discontinue hedge accounting prospectively if it is determined that the derivative is no longer effective in hedging the exposure to variability in expected future cash flows that is attributable to the risk it was meant to hedge; if the derivative instruments expires, is sold, or otherwise terminated; or if the Company removes the designation of the hedg e. To the extent that the Company discontinues hedge accounting because, based on management’s assessment, the derivative no longer qualifies as an effective hedge, or the Company otherwise de-designates the hedge, the derivative will continue to be carried in the Consolidated Balance Sheet at its fair value, with changes in its fair value recognized in in the Consolidated Statements of Operations, or in Other comprehensive income, depending on the type of derivative held. |
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 | The Company monitors the performance of its operations in three segments: Property & Casualty (P&C), Specialty, and Life and Health. Segments represent markets that are reasonably homogeneous in terms of client types, buying patterns, underlying risk patterns or approach to risk management. In 2018, the executive management responsibility and reporting for U.S. health business was reallocated from the Life and Health segment to the P&C segment as part of an internal organizational change. As a result, the financial results for U.S. health business for 2018 has been included in the P&C segment and the impacted 2017 and 2016 comparatives have been reclassified from the Life and Health to the P&C segment to conform to current presentation. 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 products, allocated 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 January 2016, the Financial Accounting Standards Board (FASB) issued updated guidance that focused on improving the recognition and measurement of financial instruments by adjusting the reporting model for financial instruments to provide improved financial information to readers of the financial statements by requiring equity investments, except for those accounted for using the equity method, to be measured at fair value with changes in fair value recognized in net income rather than other comprehensive income. The guidance was effective for the year ended December 31, 2018. Upon adoption of this guidance the Company remeasured four equity investments, previously recorded at cost, to fair value, recognizing $13 million in Net realized and unrealized (losses) gains in the Consolidated Statement of Operations for the year ended December 31, 2018. 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 was effective for the December 31, 2018 year end. The adoption of this guidance for the year ended December 31, 2018 did not have a significant impact on the Company’s Consolidated Financial Statements. In March 2017, the FASB issued updated guidance on presentation of net periodic pension cost and net periodic post-retirement 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 post-retirement 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 was effective for the year ended December 31, 2018. The adoption of this guidance did not have a significant impact on the Company's Consolidated Financial Statements and disclosures. See Note 15 for disclosures on retirement benefit arrangements. In August 2017, the FASB issued updated guidance on accounting for hedging activities. This update expands and refines hedge accounting for both non-financial 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 early adopted this guidance for the year ended December 31, 2018 which resulted in changes to the significant accounting policy Note 2(n) for Derivatives above to reflect the new guidance. See also Note 6 for further details of the new foreign exchange forward contracts designated as hedges in December 2018 which are accounted for and disclosed in accordance with this new guidance. The adoption of this guidance did not have a significant impact on the Company’s Consolidated Financial Statements as there were no other designated hedges as at December 31, 2018 or 2017. In January and 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 February 2016, the FASB issued updated guidance on the accounting for leases. This update requires the recognition of lease assets and lease liabilities for leases classified as operating leases and expands required disclosures. The guidance is effective for annual periods beginning after December 15, 2018, with early adoption permitted. In July 2018, the FASB issued targeted improvements to the updated guidance, which provide an option to recognize a cumulative effect adjustment to the opening retained earnings in the period of adoption and a practical expedient related to the separation of non-lease components under certain circumstances. The adoption of this guidance for the year ended December 31, 2019 will result in recognition of an asset and liability related to lease assets and liabilities but is not expected to have a significant impact on the Company's Consolidated Statements of Operations. In June 2016, the FASB issued updated guidance on the recognition of credit losses by replacing the incurred loss impairment methodology with new accounting models related to how credit losses on financial instruments are determined. The new guidance is applicable to financial assets such as loans, reinsurance receivables, trade receivables, debt securities, off-balance sheet credit exposures, and other financial assets that have a contractual right to receive cash. The guidance is effective for annual periods beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the impact of this guidance on its Consolidated Financial Statements and disclosures required to be adopted for the year ended December 31, 2020. In August 2018, the FASB issued updated guidance to the disclosure requirements for fair value measurement as part of the disclosure framework project. The updated guidance allows for the removal and modification of certain disclosures to improve the effectiveness of disclosures in the notes to financial statements. This guidance is effective for fiscal years beginning after December 15, 2019. The Company is currently evaluating the impact of this guidance on its Consolidated Financial Statements and disclosures required to be adopted for the year ended December 31, 2020. In August 2018, the FASB issued updated guidance to improve financial reporting for insurance companies that issue long-duration contracts such as life insurance and annuities. The objective of the new guidance is to improve, simplify, and enhance the financial reporting of long-duration contracts by providing financial statement users with useful information in a timely and transparent manner. This guidance is effective for annual periods beginning after December 15, 2020. The Company is currently evaluating the impact of this guidance on its Consolidated Financial Statements and disclosures required to be adopted for the year ended December 31, 2021. This guidance could have a material on the measurement recognition of long duration contracts and will result in additional disclosures once adopted. In August 2018, the FASB issued updated guidance to the disclosure requirements for defined benefit plans as part of the disclosure framework project. The updated guidance allows for the removal and modification of certain disclosures to improve the effectiveness of disclosures in the notes to financial statements. This guidance is effective for fiscal years beginning after December 15, 2020. The Company is currently evaluating the impact of this guidance on its disclosures once adopted. |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial instruments measured at fair value and categorized between Levels 1, 2 and 3 | At December 31, 2018 and 2017 , 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, 2018 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 $ — $ 2,345,008 $ — $ 2,345,008 U.S. states, territories and municipalities — 13,695 120,898 134,593 Non-U.S. sovereign government, supranational and government related — 2,158,642 — 2,158,642 Corporate bonds — 5,590,208 21,470 5,611,678 Asset-backed securities — 41,087 17,596 58,683 Residential mortgage-backed securities — 2,331,230 — 2,331,230 Other mortgage-backed securities — 11 — 11 Fixed maturities $ — $ 12,479,881 $ 159,964 $ 12,639,845 Short-term investments (1) $ — $ 493,726 $ — $ 493,726 Equities Finance $ 11,307 $ 1 $ 13,710 $ 25,018 Technology 5,492 — 12,256 17,748 Consumer noncyclical 13,334 — — 13,334 Consumer cyclical 6,435 — — 6,435 Industrials 4,797 — — 4,797 Insurance 1,771 1,189 — 2,960 Communications 1,451 — — 1,451 Other 799 — — 799 Mutual funds and exchange traded funds — — 621,759 621,759 Equities $ 45,386 $ 1,190 $ 647,725 $ 694,301 Other invested assets Derivative assets Foreign exchange forward contracts $ — $ 17,820 $ — $ 17,820 Insurance-linked securities — — 2,824 2,824 Total return swaps — — 1,697 1,697 Interest rate swaps — 10 — 10 Other Corporate loans — — 401,702 401,702 Notes and loans receivable and notes securitization — — 6,507 6,507 Private equities — — 372,710 372,710 Derivative liabilities Foreign exchange forward contracts — (3,673 ) — (3,673 ) Total return swaps — — (3,232 ) (3,232 ) Interest rate swaps — (9,194 ) — (9,194 ) Insurance-linked securities — — (2,568 ) (2,568 ) Other invested assets $ — $ 4,963 $ 779,640 $ 784,603 Total $ 45,386 $ 12,979,760 $ 1,587,329 $ 14,612,475 (1) Short-term investments includes $229 million of available-for-sale securities with readily determinable fair values. These securities were purchased in 2018 and are recorded at fair value, which approximated amortized cost given the short term to maturity of approximately three to four months. 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 loans receivable 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 Other — 453 2,067 2,520 Funds held–directly managed $ — $ 298,378 $ 2,067 $ 300,445 Total $ 42,781 $ 12,794,810 $ 1,400,281 $ 14,237,872 |
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, 2018 and 2017 , were as follows (in thousands of U.S. dollars): For the year ended December 31, 2018 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 $ 128,806 $ (4,417 ) $ — $ (3,491 ) $ — $ 120,898 $ (4,320 ) Asset-backed securities 20,738 (2,552 ) — (590 ) — 17,596 (2,552 ) Corporate — (139 ) — (3,745 ) 25,354 21,470 (139 ) Fixed maturities $ 149,544 $ (7,108 ) $ — $ (7,826 ) $ 25,354 $ 159,964 $ (7,011 ) Equities Finance $ 21,926 $ 5,065 $ — $ (13,281 ) $ — $ 13,710 $ (3,544 ) Technology 10,961 1,295 — — — 12,256 1,295 Mutual funds and exchanged traded funds 558,736 10,996 55,027 (3,000 ) — 621,759 10,996 Equities $ 591,623 $ 17,356 $ 55,027 $ (16,281 ) $ — $ 647,725 $ 8,747 Other invested assets Derivatives, net $ 11,221 $ 5,038 $ (1,623 ) $ (15,915 ) $ — $ (1,279 ) $ 372 Corporate loans 205,331 (21,522 ) 367,975 (150,082 ) — 401,702 (20,823 ) Notes and loan receivables and notes securitization 108,563 (4,054 ) — (98,002 ) — 6,507 (3,884 ) Private equities 331,932 (12,422 ) 55,114 (32,994 ) 31,080 372,710 (15,048 ) Other invested assets $ 657,047 $ (32,960 ) $ 421,466 $ (296,993 ) $ 31,080 $ 779,640 $ (39,383 ) Funds held–directly managed $ 2,067 $ 238 $ 268 $ (2,573 ) $ — $ — $ — Total $ 1,400,281 $ (22,474 ) $ 476,761 $ (323,673 ) $ 56,434 $ 1,587,329 $ (37,647 ) (1) Purchases and issuances of derivatives include issuances of $2 million . (2) Settlements and sales of Equities, Other invested assets, and Funds held–directly managed include sales of $ 16 million , $ 248 million and $ 3 million , respectively. Sales of Other invested assets of $248 million included sales of derivatives of $16 million , corporate loans of $107 million , notes and loan receivables and notes securitization of $96 million , and private equities of $29 million . For the year ended December 31, 2017 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 exchanged 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 loans receivable 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 . |
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, 2018 and 2017 were as follows (fair value in thousands of U.S. dollars): December 31, 2018 Fair value Valuation techniques Unobservable inputs Range (Weighted average) Fixed maturities U.S. states, territories and municipalities $ 120,898 Discounted cash flow Credit spreads 0.2% – 10.2% (4.3%) Asset backed securities 17,596 Discounted cash flow Credit spreads 6.7% (6.7%) Equities Finance (1) 13,710 Lag reported market value Transaction price 12.0 (12.0) Technology 12,256 Reported market value Tangible book value multiple 1.0 (1.0) Other invested assets Total return swaps, net (1,535 ) Discounted cash flow Credit spreads 2.5% – 23.0% (16.0%) Insurance-linked securities – longevity swaps 2,824 Discounted cash flow Credit spreads 2.6% (2.6%) Insurance-linked securities – pandemic swaps (1,301 ) Discounted cash flow Credit spreads 27.3% (27.3%) Insurance-linked securities – weather index swap (1,267 ) Proprietary option model Index value (temperature) 80.7 – 3,293.8 (175.3) Notes and loans receivable 2,660 Discounted cash flow Credit spreads 41.5% – 41.9% (41.5%) Notes and loans receivable 2,688 Discounted cash flow Credit spreads 17.5% (17.5%) Gross revenue/fair value 1.1 (1.1) Note securitization 1,159 Discounted cash flow Credit spreads 0.8% (0.8%) Private equity - direct 1,889 Weighted market comparables Revenue multiple 1.1 (1.1) Adjusted earnings multiple 9.8 (9.8) Liquidity discount 30% (30%) Private equity funds 14,438 Reported market value Net asset value, as reported 100.0% (100.0%) Market adjustments -6.5% (-6.5%) Private equity - other 19,997 Discounted cash flow Effective yield 4.1% (4.1%) (1) During the year, the Company sold a portion of its investment and used the arm's length transaction price as an estimate of the fair value of the remaining holdings. This change was not considered material to the Company's financial position or results of operations. 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 1.0 (1.0) 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 loans receivable 102,907 Discounted cash flow Credit spreads 3.9% – 39.3% (6.1%) Notes and loans receivable 4,265 Discounted cash flow Credit spreads 17.5% (17.5%) Gross revenue to fair value ratios 1.1 (1.1) Note 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%) |
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, 2018 , 2017 and 2016 were as follows (in thousands of U.S. dollars): 2018 2017 2016 Fixed maturities and short-term investments $ (150,926 ) $ 124,033 $ (90,334 ) Equities 2,791 60,460 (14,850 ) Other invested assets (12,987 ) 28,144 11,066 Funds held–directly managed (6,484 ) (5,612 ) (721 ) Total $ (167,606 ) $ 207,025 $ (94,839 ) |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments [Abstract] | |
Net Realized and Unrealized Investment (Losses) Gains | The components of the net realized and unrealized investment (losses) gains for the years ended December 31, 2018 , 2017 and 2016 were as follows (in thousands of U.S. dollars): 2018 2017 2016 Net realized investment (losses) gains on fixed maturities and short-term investments $ (224,887 ) $ 28,632 $ 96,994 Net realized investment gains (losses) on equities 14,601 (4,052 ) 157 Net realized investment gains (losses) on other invested assets 7,136 (3,217 ) 5,365 Net realized investment gains on funds held–directly managed 1,200 508 1,355 Net realized investment (losses) gains $ (201,950 ) $ 21,871 $ 103,871 Change in net unrealized investment gains or losses on fixed maturities and short-term investments $ (150,926 ) $ 124,033 $ (90,334 ) Change in net unrealized investment gains or losses on equities 2,791 60,460 (14,850 ) Change in unrealized investment gains or losses on other invested assets (25,607 ) 32,790 25,488 Change in net unrealized investment gains or losses on funds held–directly managed (6,484 ) (5,567 ) (676 ) Net other realized and unrealized investment gains or losses (1,334 ) (1,096 ) 2,767 Change in net unrealized investment gains or losses $ (181,560 ) $ 210,620 $ (77,605 ) Impairment loss on investments in real estate $ (6,122 ) $ — $ — Net realized and unrealized investment (losses) gains $ (389,632 ) $ 232,491 $ 26,266 |
Net investment income | The components of net investment income for the years ended December 31, 2018 , 2017 and 2016 were as follows (in thousands of U.S. dollars): 2018 2017 2016 Fixed maturities $ 378,726 $ 382,676 $ 395,831 Short-term investments and cash and cash equivalents 13,279 5,363 1,915 Equities 3,499 (12 ) 4,382 Funds held and other (1) 44,699 29,068 34,161 Funds held–directly managed 4,674 7,742 9,993 Investment expenses (28,956 ) (22,766 ) (35,418 ) Net investment income $ 415,921 $ 402,071 $ 410,864 (1) 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 7.4% , 0.1% to 7.0% and 0.0% to 5.4% for the years ended December 31, 2018 , 2017 and 2016 , respectively. The increase in the interest rate range in 2018 and 2017 compared to 2016 relates to the inclusion of one contract from the acquired Aurigen business with a total funds held value of less than $2 million as at December 31, 2018. |
Summarized financial information | The summarized balance sheet and income statement of Almacantar is as follows (in thousands of U.S. dollars) : December 31, 2018 December 31, 2017 Current assets $ 1,007,293 $ 906,085 Noncurrent assets $ 1,341,825 $ 1,877,519 Current liabilities $ 577,660 $ 553,219 Noncurrent liabilities $ 357,625 $ 690,935 For the year ended December 31, 2018 December 31, 2017 December 31, 2016 Revenues $ 173,646 $ 130,333 $ 24,646 Operating (loss) profit (1) $ (14,562 ) $ 190,613 $ (47,082 ) Net (loss) income $ (21,038 ) $ 213,241 $ (37,059 ) (1) Operating profit referred to in the table above includes revenues, cost of sales, and unrealized gains on properties. |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair values and notional values of derivatives | The net fair values of derivatives included in Other invested assets within the Company’s Consolidated Balance Sheets and the related net notional values at December 31, 2018 and 2017 were as follows (in thousands of U.S. dollars): Asset derivatives at fair value Liability derivatives at fair value Net derivatives December 31, 2018 Fair value Net notional exposure Derivatives designated as hedges Foreign exchange forward contracts $ — $ (2,464 ) $ (2,464 ) $ 226,019 Total derivatives designated as hedges $ — $ (2,464 ) $ (2,464 ) Derivatives not designated as hedges Foreign exchange forward contracts $ 17,820 $ (1,209 ) $ 16,611 $ 2,231,871 Insurance-linked securities (1) 2,824 (2,568 ) 256 59,257 Total return swaps 1,697 (3,232 ) (1,535 ) 41,980 Interest rate swaps (2) 10 (9,194 ) (9,184 ) 1,840 Total derivatives not designated as hedges $ 22,351 $ (16,203 ) $ 6,148 Total derivatives $ 22,351 $ (18,667 ) $ 3,684 Asset Liability Net derivatives December 31, 2017 Fair value Net notional 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 ) (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 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, 2018 , 2017 and 2016 were as follows (in thousands of U.S. dollars): 2018 2017 2016 Foreign exchange forward contracts $ 45,143 $ (41,776 ) $ (53,437 ) Foreign currency option contracts — — 2,583 Total included in Net foreign exchange gains (losses) $ 45,143 $ (41,776 ) $ (50,854 ) Futures contracts $ 11,043 $ (11,683 ) $ (5,195 ) Insurance-linked securities 6,134 (563 ) 3,813 Total return swaps — 464 (1,096 ) Interest rate swaps 2,332 1,105 10,981 TBAs (13,614 ) 4,742 6,366 Total included in Net realized and unrealized investment gains (losses) $ 5,895 $ (5,935 ) $ 14,869 Total derivatives not designated as hedges $ 51,038 $ (47,711 ) $ (35,985 ) |
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, 2018 and 2017 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, 2018 Gross amounts recognized (1) Financial instruments Cash collateral received/pledged Net amount Total derivative assets $ 22,351 $ — $ 22,351 $ (544 ) $ (24,704 ) $ (2,897 ) Total derivative liabilities $ (18,667 ) $ — $ (18,667 ) $ 544 $ 5,221 $ (12,902 ) December 31, 2017 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 ) (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, 2018 | |
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, Aurigen and Claims Analytics at December 31, 2018 and 2017 were as follows (in thousands of U.S. dollars): 2018 Goodwill Definite- lived intangible assets Indefinite- lived intangible asset Total intangible assets Balance at January 1 $ 456,380 $ 150,679 $ 9,555 $ 160,234 Acquired during the year (1) — 4,138 — 4,138 Intangible assets amortization n/a (35,473 ) n/a (35,473 ) Balance at December 31 $ 456,380 $ 119,344 $ 9,555 $ 128,899 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 (2) — 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 n/a: Not applicable (1) In June 2018, the Company completed the acquisition for 100% of the assets in Claim Analytics Inc., a Canadian based provider of predictive analytics solutions for the insurance industry. In relation to this acquisition, the Company recorded intangible assets related to customer relationships of $ 4 million . (2) In April 2017, the Company completed the acquisition of Aurigen. The Company recorded 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. |
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, 2018 and 2017 were as follows (in thousands of U.S. dollars): December 31, 2018 December 31, 2017 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 (1) $ 191,196 $ 191,196 $ — $ 191,196 $ 168,581 $ 22,615 Renewal rights 48,163 31,828 16,335 48,163 27,909 20,254 Customer relationships 67,546 36,188 31,358 63,408 29,353 34,055 Life VOBA 75,583 3,932 71,651 75,583 1,828 73,755 Total definite-lived intangible assets $ 382,488 $ 263,144 $ 119,344 $ 378,350 $ 227,671 $ 150,679 Indefinite-lived intangible asset: Insurance licenses 9,555 n/a 9,555 9,555 n/a 9,555 Total intangible assets $ 392,043 $ 263,144 $ 128,899 $ 387,905 $ 227,671 $ 160,234 n/a: Not applicable (1) The remaining intangible asset balance for unpaid losses and loss expenses was reduced to $nil in 2018 following commutation of the related business (see Notes 5 and 8(a)). |
Allocation of goodwill by segment | The allocation of the goodwill to the Company’s segments at December 31, 2018 and 2017 was as follows (in thousands of U.S. dollars): 2018 2017 P&C segment (1) $ 242,376 $ 241,530 Specialty segment 196,047 196,047 Life and Health segment (1) 17,957 18,803 Total $ 456,380 $ 456,380 (1) In 2018, the executive management responsibility and reporting for U.S. health business was reallocated from the Life and Health segment to the P&C segment as part of an internal organizational change. As a result, goodwill related to the U.S. health business was moved from the Life and Health segment to the P&C segment. |
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 2019 $ 11,350 2020 9,941 2021 8,820 2022 8,912 2023 7,924 Total $ 46,947 |
Non-life and Life and Health _2
Non-life and Life and Health Reserves (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017 was as follows (in thousands of U.S. dollars): December 31, 2018 December 31, 2017 (1) Case reserves $ 4,217,068 $ 4,180,554 ACRs 174,713 176,369 IBNR reserves 5,503,595 5,745,249 Non-life reserves $ 9,895,376 $ 10,102,172 (1) In 2018, U.S. health business was reallocated from the Life and Health segment to the P&C segment as part of an internal organizational change. As a result, the impacted 2017 comparatives have been reclassified to conform to current presentation. |
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, 2018 , 2017 and 2016 was as follows (in thousands of U.S. dollars): 2018 2017 (1) 2016 (1) Gross liability at beginning of year $ 10,102,172 $ 9,247,200 $ 9,317,003 Reinsurance recoverable at beginning of year 719,998 295,388 228,961 Net liability at beginning of year $ 9,382,174 $ 8,951,812 $ 9,088,042 Net incurred losses related to: Current year $ 3,417,366 $ 3,453,725 $ 3,243,506 Prior years (248,719 ) (448,158 ) (676,574 ) $ 3,168,647 $ 3,005,567 $ 2,566,932 Change in Paris Re Reserve Agreement (2) $ (397,493 ) $ (3,481 ) $ 5,518 Net paid losses related to: Current year $ (336,584 ) $ (472,291 ) $ (391,528 ) Prior years (2,585,403 ) (2,506,760 ) (2,096,945 ) $ (2,921,987 ) $ (2,979,051 ) $ (2,488,473 ) Effects of foreign exchange rate changes $ (186,911 ) $ 407,327 $ (220,207 ) Net liability at end of year $ 9,044,430 $ 9,382,174 $ 8,951,812 Reinsurance recoverable at end of year 850,946 719,998 295,388 Gross liability at end of year $ 9,895,376 $ 10,102,172 $ 9,247,200 (1) In 2018, U.S. health business was reallocated from the Life and Health segment to the P&C segment as part of an internal organizational change. As a result, the impacted 2017 and 2016 comparatives have been reclassified to conform to current presentation. (2) The change in reserve agreement includes (adverse) favorable development on Paris Re’s reserves which were guaranteed by Axa under the reserve agreement. For 2018, this balance also includes the reduction of the guaranteed reserves following the commutation of the agreement in the fourth quarter of 2018. |
Reconciliation of the beginning and ending gross and net liability for 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, 2018 , 2017 and 2016 was as follows (in thousands of U.S. dollars): 2018 2017 (1) 2016 (1) Gross liability at beginning of period $ 2,098,759 $ 1,722,330 $ 1,799,643 Reinsurance recoverable at beginning of period 9,287 2,726 3,046 Net liability at beginning of period $ 2,089,472 $ 1,719,604 $ 1,796,597 Liability acquired related to the acquisition of Aurigen — 67,916 — Net incurred losses 1,024,608 835,415 681,159 Net losses paid (818,916 ) (714,151 ) (618,599 ) Effects of foreign exchange rate changes (108,913 ) 180,688 (139,553 ) Net liability at end of period $ 2,186,251 $ 2,089,472 $ 1,719,604 Reinsurance recoverable at end of period 11,829 9,287 2,726 Gross liability at end of period $ 2,198,080 $ 2,098,759 $ 1,722,330 (1) In 2018, U.S. health business was reallocated from the Life and Health segment to the P&C segment as part of an internal organizational change. As a result, the impacted 2017 and 2016 comparatives have been reclassified to conform to current presentation. |
Components of losses and loss expenses by segment | Losses and loss expenses in the Consolidated Statements of Operations for the years ended December 31, 2018 , 2017 and 2016 were comprised as follows (in thousands of U.S. dollars): 2018 2017 (1) 2016 (1) Non-life $ 3,168,647 $ 3,005,567 $ 2,566,932 Life and Health 1,024,608 835,415 681,159 Losses and loss expenses $ 4,193,255 $ 3,840,982 $ 3,248,091 (1) In 2018, U.S. health business was reallocated from the Life and Health segment to the P&C segment as part of an internal organizational change. As a result, the impacted 2017 and 2016 comparatives have been reclassified to conform to current presentation. |
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 2017 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, 2018 Accident year 2012 2013 2014 2015 2016 2017 2018 Total of IBNR plus expected development on reported claims 2012 $ 2,637,210 $ 2,448,549 $ 2,293,018 $ 2,187,326 $ 2,155,244 $ 2,186,867 $ 2,163,492 $ 112,104 2013 2,871,364 2,697,368 2,521,182 2,467,928 2,434,587 2,407,116 162,521 2014 2,829,647 2,612,495 2,501,579 2,469,465 2,481,728 236,684 2015 2,882,763 2,593,207 2,487,617 2,502,972 334,162 2016 2,907,786 2,673,642 2,614,830 462,738 2017 2,971,510 2,934,163 829,431 2018 3,022,655 2,250,412 Total $ 18,126,956 $ 4,388,052 NET PAID LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - NON-LIFE For the year ended December 31, Accident year 2012 2013 2014 2015 2016 2017 2018 2012 $ 283,062 $ 1,052,510 $ 1,436,451 $ 1,603,321 $ 1,706,739 $ 1,797,576 $ 1,847,036 2013 242,288 1,292,908 1,644,109 1,845,155 1,975,252 2,068,311 2014 304,066 1,311,788 1,614,941 1,823,531 1,964,856 2015 302,077 1,217,019 1,615,742 1,836,225 2016 324,682 1,366,673 1,722,052 2017 386,326 1,503,129 2018 259,237 Total $ 11,200,846 Net reserves for Accident Years and exposures included in the triangles $ 6,926,110 All outstanding liabilities before Accident Year 2012, net of reinsurance 1,636,500 Total outstanding liabilities for unpaid claims $ 8,562,610 AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - NON-LIFE Years 1 2 3 4 5 6 7 Non-life 12% 39% 15% 8% 5% 4% 2% (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, 2018 Accident year 2012 2013 2014 2015 2016 2017 2018 Total of IBNR plus expected development on reported claims 2012 $ 660,871 $ 660,159 $ 582,063 $ 565,743 $ 550,347 $ 550,104 $ 538,271 $ 5,530 2013 679,013 576,448 544,485 529,249 524,968 514,596 1,160 2014 515,968 471,603 450,264 447,732 444,283 2,067 2015 590,211 548,168 523,012 515,396 7,738 2016 721,172 678,612 632,146 14,941 2017 1,027,772 1,063,309 92,550 2018 850,603 545,540 Total $ 4,558,604 $ 669,526 NET PAID LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - PROPERTY For the year ended December 31, Accident year 2012 2013 2014 2015 2016 2017 2018 2012 $ 99,815 $ 356,469 $ 449,848 $ 483,969 $ 495,215 $ 504,333 $ 507,376 2013 88,603 337,052 437,800 472,185 490,469 493,538 2014 93,134 323,623 387,815 414,068 423,758 2015 95,282 354,313 442,735 471,242 2016 134,960 455,747 536,791 2017 223,180 728,508 2018 76,618 Total $ 3,237,831 Net reserves for Accident Years and exposures included in the triangles $ 1,320,773 All outstanding liabilities before Accident Year 2012, net of reinsurance 105,071 Total outstanding liabilities for unpaid claims $ 1,425,844 AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - PROPERTY Years 1 2 3 4 5 6 7 Property 18% 49% 16% 6% 3% 1% 1% NET INCURRED LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - CASUALTY For the year ended December 31, December 31, 2018 Accident year 2012 2013 2014 2015 2016 2017 2018 Total of IBNR plus expected development on reported claims 2012 $ 690,205 $ 676,404 $ 648,784 $ 608,535 $ 591,092 $ 599,405 $ 594,889 $ 79,586 2013 799,716 796,471 747,464 729,478 725,012 721,474 136,016 2014 899,068 874,854 854,935 860,154 876,455 194,954 2015 897,153 838,361 814,108 856,355 262,967 2016 847,086 798,784 819,511 315,251 2017 758,715 727,301 399,584 2018 939,700 800,587 Total $ 5,535,685 $ 2,188,945 NET PAID LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - CASUALTY For the year ended December 31, Accident year 2012 2013 2014 2015 2016 2017 2018 2012 $ 51,528 $ 135,448 $ 205,164 $ 278,087 $ 334,143 $ 392,529 $ 423,467 2013 50,403 158,653 266,362 347,899 418,193 479,692 2014 70,987 207,906 311,431 411,596 499,040 2015 66,675 186,585 299,015 397,022 2016 36,622 165,828 265,586 2017 60,845 178,201 2018 61,932 Total $ 2,304,940 Net reserves for Accident Years and exposures included in the triangles $ 3,230,745 All outstanding liabilities before Accident Year 2012, net of reinsurance 1,436,281 Total outstanding liabilities for unpaid claims $ 4,667,026 AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - CASUALTY Years 1 2 3 4 5 6 7 Casualty 7% 15% 13% 12% 10% 9% 5% NET INCURRED LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - SPECIALTY For the year ended December 31, December 31, 2018 Accident year 2012 2013 2014 2015 2016 2017 2018 Total of IBNR plus expected development on reported claims 2012 $ 1,286,134 $ 1,111,986 $ 1,062,171 $ 1,013,048 $ 1,013,805 $ 1,037,358 $ 1,030,332 $ 26,988 2013 1,392,635 1,324,449 1,229,233 1,209,201 1,184,607 1,171,046 25,345 2014 1,414,611 1,266,038 1,196,380 1,161,579 1,160,990 39,663 2015 1,395,399 1,206,678 1,150,497 1,131,221 63,457 2016 1,339,528 1,196,246 1,163,173 132,546 2017 1,185,023 1,143,553 337,297 2018 1,232,352 904,285 Total $ 8,032,667 $ 1,529,581 NET PAID LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - SPECIALTY For the year ended December 31, Accident year 2012 2013 2014 2015 2016 2017 2018 2012 $ 131,719 $ 560,593 $ 781,439 $ 841,265 $ 877,381 $ 900,714 $ 916,193 2013 103,282 797,203 939,947 1,025,071 1,066,590 1,095,081 2014 139,945 780,259 915,695 997,867 1,042,058 2015 140,120 676,121 873,992 967,961 2016 153,100 745,098 919,675 2017 102,301 596,420 2018 120,687 Total $ 5,658,075 Net reserves for Accident Years and exposures included in the triangles $ 2,374,592 All outstanding liabilities before Accident Year 2012, net of reinsurance 95,148 Total outstanding liabilities for unpaid claims $ 2,469,740 AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - SPECIALTY Years 1 2 3 4 5 6 7 Specialty 11% 50% 15% 7% 4% 2% 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, 2018 was as follows (in thousands of U.S. dollars): December 31, 2018 Total outstanding liability for unpaid claims Property $ 1,425,844 Casualty 4,667,026 Specialty 2,469,740 Total outstanding liabilities for unpaid claims $ 8,562,610 Unallocated loss expenses $ 148,700 U.S. health net reserves (1) 327,810 Other 5,310 Total other liabilities $ 481,820 Net liability at end of year $ 9,044,430 Reinsurance recoverable on paid and unpaid claims Property $ 545,300 Casualty 63,161 Specialty 242,485 Reinsurance recoverable at end of year $ 850,946 Gross liability at end of year $ 9,895,376 (1) U.S. health business is not meaningful to include in the development tables as the estimated average duration of the health reserves is less than one year and substantially all claims are expected to be paid within two years, based on historical payout patterns. |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Reinsurance Disclosures [Abstract] | |
Ceded reinsurance | Assumed, ceded and net amounts for the years ended December 31, 2018 , 2017 and 2016 were as follows (in thousands of U.S. dollars): Premiums Written Premiums Earned Losses and Loss Expenses 2018 Assumed $ 6,299,929 $ 5,987,931 $ 4,601,564 Ceded 496,565 474,121 408,309 Net $ 5,803,364 $ 5,513,810 $ 4,193,255 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 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Summary of debt outstanding | The debt outstanding related to senior notes and capital efficient notes (CENts) and the carrying value recorded in the Consolidated Balance Sheets at December 31, 2018 and 2017 was comprised as follows (in thousands): December 31, 2018 December 31, 2017 Issuer Commitment Carrying Value Fair Value Carrying Value Fair Value Debt related to senior notes PartnerRe Finance B LLC $ 500,000 $ 500,000 $ 515,518 $ 500,000 $ 534,179 PartnerRe Ireland Finance DAC € 750,000 849,017 825,546 884,824 882,717 Total Debt related to senior notes $ 1,349,017 $ 1,341,064 $ 1,384,824 $ 1,416,896 Debt related to CENts PartnerRe Finance II Inc. $ 63,384 $ 70,989 $ 59,299 $ 70,989 $ 61,271 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Preferred shares | At December 31, 2018 and 2017 , 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 number of shares and 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. |
Dividend Restrictions and Sta_2
Dividend Restrictions and Statutory Requirements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure - Dividend Restrictions and Statutory Requirements [Abstract] | |
Statutory measurements | The statutory net income (loss) of PartnerRe Bermuda, PartnerRe Europe, PartnerRe U.S. and PartnerRe Asia for the years ended December 31, 2018 , 2017 and 2016 was as follows (in millions of U.S. dollars): 2018 2017 2016 PartnerRe Bermuda $ 138 $ (69 ) $ 531 PartnerRe Europe $ 1 $ 153 $ 61 PartnerRe U.S. $ (197 ) $ 24 $ 72 PartnerRe Asia $ (40 ) $ 18 $ 43 The required and actual statutory capital and surplus of PartnerRe Bermuda, PartnerRe Europe, PartnerRe U.S. and PartnerRe Asia at December 31, 2018 and 2017 was as follows (in millions of U.S. dollars): PartnerRe Bermuda PartnerRe Europe PartnerRe U.S. PartnerRe Asia 2018 2017 2018 2017 2018 2017 2018 2017 Required statutory capital and surplus $ 2,260 $ 1,767 $ 1,488 $ 1,639 $ 732 $ 662 $ 56 $ 57 Actual statutory capital and surplus $ 4,274 $ 3,683 $ 2,169 $ 2,215 $ 1,094 $ 1,336 $ 208 $ 246 |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure - Taxation [Abstract] | |
Components of income tax expense | Income tax (benefit) expense for the years ended December 31, 2018 , 2017 and 2016 was as follows (in thousands of U.S. dollars): 2018 2017 2016 Current income tax (benefit) expense U.S. $ (6,872 ) $ (10,031 ) $ 2,798 Non U.S. 33,887 76,425 26,913 Total current income tax expense $ 27,015 $ 66,394 $ 29,711 Deferred income tax (benefit) expense U.S. $ (40,318 ) $ 5,538 $ 10,070 Non U.S. 3,256 (58,702 ) (127 ) Total deferred income tax (benefit) expense $ (37,062 ) $ (53,164 ) $ 9,943 Unrecognized tax expense (benefit) U.S. $ — $ — $ — Non U.S. 1,113 (2,872 ) (13,731 ) Total unrecognized tax expense (benefit) $ 1,113 $ (2,872 ) $ (13,731 ) Total income tax (benefit) expense U.S. $ (47,190 ) $ (4,493 ) $ 12,868 Non U.S. 38,256 14,851 13,055 Total income tax (benefit) expense $ (8,934 ) $ 10,358 $ 25,923 |
Income before taxes attributable to domestic and foreign operations | (Loss) 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 (loss) income before taxes was as follows for the years ended December 31, 2018 , 2017 and 2016 (in thousands of U.S. dollars): 2018 2017 2016 Domestic (Bermuda) $ 33,759 $ 82,219 $ 334,559 Foreign (128,687 ) 192,160 138,672 (Loss) income before taxes $ (94,928 ) $ 274,379 $ 473,231 |
Reconciliation of effective tax rate | Reconciliation of effective tax rate (% of (loss) income before taxes) Expected tax rate 0.0 % 0.0 % 0.0 % Foreign taxes at local expected tax rates 14.3 11.4 6.9 Impact of foreign exchange gains or losses (4.2 ) (3.2 ) 2.2 Unrecognized tax benefit (1.2 ) (1.0 ) (2.9 ) Tax-exempt income and expenses not deductible 7.3 (5.2 ) (3.2 ) Foreign branch tax (4.1 ) (24.6 ) 0.3 Valuation allowance (12.3 ) 24.8 0.3 Outside basis difference in subsidiary 6.7 — — Other 2.9 1.6 1.9 Actual tax rate 9.4 % 3.8 % 5.5 % |
Components of net tax assets and liabilities | The components of net tax assets and liabilities at December 31, 2018 and 2017 were as follows (in thousands of U.S. dollars): December 31, 2018 December 31, 2017 Net tax assets $ 157,690 $ 133,169 Net tax liabilities (101,525 ) (154,947 ) Net tax assets (liabilities) $ 56,165 $ (21,778 ) December 31, 2018 December 31, 2017 Net current tax assets $ 102,091 $ 53,900 Net deferred tax liabilities (37,183 ) (67,737 ) Net unrecognized tax benefit (8,743 ) (7,941 ) Net tax assets (liabilities) $ 56,165 $ (21,778 ) |
Significant components of net deferred tax assets and liabilities | Significant components of the net deferred tax assets and liabilities at December 31, 2018 and 2017 were as follows (in thousands of U.S. dollars): December 31, 2018 December 31, 2017 Deferred tax assets Discounting of loss reserves and adjustment to life policy reserves $ 27,103 $ 34,806 Foreign tax credit carryforwards 161,177 163,134 Tax loss carryforwards 49,721 36,405 Unearned premiums 26,071 14,425 Other deferred tax assets 47,877 31,566 $ 311,949 $ 280,336 Valuation allowance (189,090 ) (185,615 ) Deferred tax assets $ 122,859 $ 94,721 Deferred tax liabilities Deferred acquisition costs $ 45,558 $ 29,204 Goodwill and other intangibles 65,114 70,674 Equalization reserves 16,606 27,252 Unrealized appreciation and timing differences on investments 5,012 13,361 Unrealized appreciation and timing differences on foreign exchange revaluations 21,117 13,413 Other deferred tax liabilities 6,635 8,554 Deferred tax liabilities $ 160,042 $ 162,458 Net deferred tax liabilities $ (37,183 ) $ (67,737 ) |
Total amount of unrecognized tax benefits | The total amount of unrecognized tax benefits for the years ended December 31, 2018 , 2017 and 2016 was as follows (in thousands of U.S. dollars): January 1, 2018 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, 2018 Unrecognized tax benefits that, if recognized, would impact the effective tax rate $ 6,460 $ 73 $ 346 $ — $ (240 ) $ 6,639 Interest and penalties recognized on the above 1,481 691 — — (68 ) 2,104 Total unrecognized tax benefits, including interest and penalties $ 7,941 $ 764 $ 346 $ — $ (308 ) $ 8,743 January 1, 2017 Changes in tax Tax positions Change as a Impact of the 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, 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 $ 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 |
Retirement Benefit Arrangemen_2
Retirement Benefit Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Funded status | At December 31, 2018 and 2017 , the funded status of the Zurich Plan was as follows (in thousands of U.S. dollars): 2018 2017 Underfunded pension obligation at beginning of year $ 64,342 $ 57,941 Change in pension obligation Service cost $ 7,203 $ 7,510 Interest cost 1,366 1,295 Plan participants’ contributions 2,938 2,905 Actuarial loss (9,439 ) 1,483 Plan amendments (19,945 ) — Benefits paid (4,901 ) (2,097 ) Foreign currency adjustments (584 ) 7,489 Change in pension obligation $ (23,362 ) $ 18,585 Change in fair value of plan assets Actual return on plan assets 958 1,131 Employer contributions 5,245 5,361 Plan participants’ contributions 2,938 2,905 Benefits paid (4,901 ) (2,097 ) Foreign currency adjustments (365 ) 4,884 Change in fair value of plan assets $ 3,875 $ 12,184 Underfunded pension obligation at end of year $ 37,105 $ 64,342 Additional information: Projected benefit obligation at end of year (1) $ 161,792 $ 185,154 Fair value of plan assets at end of year $ 124,687 $ 120,812 Underfunded pension obligation at end of year $ 37,105 $ 64,342 Accumulated pension obligation at end of year (2) $ 152,681 $ 172,806 (1) Represents the actuarial present value of all benefits attributed to employee service rendered to December 31, measured using assumptions as to future compensation levels (2) Represents the actuarial present value of benefits (whether vested or non-vested) attributed to employee service rendered and compensation to December 31, with no assumption about future compensation levels |
Assumptions used | The assumptions used to determine the Zurich Plan’s pension obligation and net periodic benefit cost for the years ended December 31, 2018 , 2017 and 2016 were as follows: 2018 2017 2016 Pension obligation Net periodic benefit cost Pension obligation Net periodic benefit cost Pension obligation Net periodic benefit cost Discount rate 1.00 % 0.75 % 0.75 % 0.75 % 0.75 % 1.00 % Expected long-term return on plan assets — 0.75 % — 0.75 % — 1.00 % Rate of compensation increase 2.25 % 2.25 % 2.25 % 2.00 % 2.00 % 2.25 % |
Expected future benefit payments | At December 31, 2018 , estimated employer contributions to be paid in 2019 related to the Zurich Plan were $ 7 million and future benefit payments were estimated to be paid as follows (in thousands of U.S. dollars): Year Amount 2019 $ 4,573 2020 $ 4,703 2021 $ 5,952 2022 $ 5,884 2023 $ 6,353 2024 to 2028 $ 38,437 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 (in thousands of U.S. dollars): Year Amount 2019 $ 14,074 2020 17,169 2021 14,783 2022 12,536 2023 12,107 2024-2031 55,409 Total future minimum rental payments $ 126,078 Total future sub-lease rental income through 2020 $ 1,316 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Segment reclassification | The U.S. health results for the year ended December 31, 2018 and the reclassifications made from the Life and Health to the P&C segment for the years ended December 31, 2017 and 2016 are presented below (in millions of U.S. dollars) : 2018 2017 2016 Gross premiums written $ 405 $ 416 $ 364 Net premiums written $ 356 $ 379 $ 318 Decrease (increase) in unearned premiums 12 (12 ) (1 ) Net premiums earned $ 368 $ 367 $ 317 Losses and loss expenses (309 ) (431 ) (246 ) Acquisition costs (30 ) (39 ) (39 ) Technical result $ 29 $ (103 ) $ 32 Other expenses (12 ) (17 ) (22 ) Underwriting result $ 17 $ (120 ) $ 10 |
Segment reporting table | The segment results for the years ended December 31, 2018 , 2017 and 2016 are presented below (in millions of U.S. dollars, except ratios). Segment Information For the year ended December 31, 2018 P&C segment (6) Specialty segment Total Non-life Life and Health segment (6) Corporate and Other Total Gross premiums written $ 3,015 $ 2,050 $ 5,065 $ 1,235 $ — $ 6,300 Net premiums written $ 2,722 $ 1,870 $ 4,592 $ 1,211 $ — $ 5,803 (Increase) decrease in unearned premiums (187 ) (103 ) (290 ) 1 — (289 ) Net premiums earned $ 2,535 $ 1,767 $ 4,302 $ 1,212 $ — $ 5,514 Losses and loss expenses (2,073 ) (1,096 ) (3,169 ) (1,025 ) — (4,194 ) Acquisition costs (606 ) (502 ) (1,108 ) (129 ) — (1,237 ) Technical result $ (144 ) $ 169 $ 25 $ 58 $ — $ 83 Other income 30 — 30 13 7 50 Other expenses (75 ) (27 ) (102 ) (51 ) (153 ) (306 ) Underwriting result $ (189 ) $ 142 $ (47 ) $ 20 n/a $ (173 ) Net investment income 66 350 416 Allocated underwriting result $ 86 n/a n/a Net realized and unrealized investment losses (390 ) (390 ) Interest expense (43 ) (43 ) Amortization of intangible assets (35 ) (35 ) Net foreign exchange gains 119 119 Income tax benefit 9 9 Interest in earnings of equity method investments 11 11 Net loss n/a $ (86 ) Loss ratio (1) 81.8 % 62.0 % 73.7 % Acquisition ratio (2) 23.9 28.4 25.8 Technical ratio (3) 105.7 % 90.4 % 99.5 % Other expense ratio (4) 3.0 1.5 2.4 Combined ratio (5) 108.7 % 91.9 % 101.9 % (1) Loss ratio is obtained by dividing losses and loss expenses by net premiums earned. (2) Acquisition ratio is obtained by dividing acquisition costs by net premiums earned. (3) Technical ratio is defined as the sum of the loss ratio and the acquisition ratio. (4) Other expense ratio is obtained by dividing other expenses by net premiums earned. (5) Combined ratio is defined as the sum of the technical ratio and the other expense ratio. (6) In 2018, the executive management responsibility and reporting for U.S. health business was reallocated from the Life and Health segment to the P&C segment as part of an internal organizational change. As a result, the financial results for U.S. health business for 2018 has been included in the P&C segment and the impacted 2017 and 2016 comparatives have been reclassified from the Life and Health to the P&C segment to conform to current presentation. n/a: Not applicable Segment Information For the year ended December 31, 2017 P&C segment Specialty Total Non-life Life and Health segment Corporate and Other Total Gross premiums written $ 2,671 $ 1,934 $ 4,605 $ 983 $ — $ 5,588 Net premiums written $ 2,375 $ 1,780 $ 4,155 $ 965 $ — $ 5,120 (Increase) decrease in unearned premiums (45 ) (55 ) (100 ) 5 — (95 ) Net premiums earned $ 2,330 $ 1,725 $ 4,055 $ 970 $ — $ 5,025 Losses and loss expenses (2,051 ) (955 ) (3,006 ) (835 ) — (3,841 ) Acquisition costs (534 ) (489 ) (1,023 ) (97 ) — (1,120 ) Technical result $ (255 ) $ 281 $ 26 $ 38 $ — $ 64 Other (loss) income — (1 ) (1 ) 14 2 15 Other expenses (88 ) (33 ) (121 ) (44 ) (183 ) (348 ) Underwriting result $ (343 ) $ 247 $ (96 ) $ 8 n/a $ (269 ) Net investment income 60 342 402 Allocated underwriting result $ 68 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 88.0 % 55.4 % 74.1 % Acquisition ratio 22.9 28.4 25.2 Technical ratio 110.9 % 83.8 % 99.3 % Other expense ratio 3.8 1.9 3.0 Combined ratio 114.7 % 85.7 % 102.3 % Segment Information For the year ended December 31, 2016 P&C segment Specialty Total Life and Health segment Corporate Total Gross premiums written $ 2,633 $ 1,920 $ 4,553 $ 804 $ — $ 5,357 Net premiums written $ 2,379 $ 1,776 $ 4,155 $ 799 $ — $ 4,954 Decrease (increase) in unearned premiums 24 (9 ) 15 1 — $ 16 Net premiums earned $ 2,403 $ 1,767 $ 4,170 $ 800 $ — $ 4,970 Losses and loss expenses (1,494 ) (1,073 ) (2,567 ) (681 ) — (3,248 ) Acquisition costs (595 ) (500 ) (1,095 ) (92 ) — (1,187 ) Technical result $ 314 $ 194 $ 508 $ 27 $ — $ 535 Other income (loss) 3 (1 ) 2 10 3 15 Other expenses (163 ) (88 ) (251 ) (44 ) (177 ) (472 ) Underwriting result $ 154 $ 105 $ 259 $ (7 ) n/a $ 78 Net investment income 58 353 411 Allocated underwriting result $ 51 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 62.1 % 60.8 % 61.6 % Acquisition ratio 24.8 28.3 26.3 Technical ratio 86.9 % 89.1 % 87.9 % Other expense ratio 6.8 4.9 6.0 Combined ratio 93.7 % 94.0 % 93.9 % |
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, 2018 , 2017 and 2016 (in millions of U.S. dollars, except percentages): 2018 2017 2016 North America $ 2,929 47 % $ 2,620 47 % $ 2,573 48 % Europe 2,152 34 1,866 33 1,888 35 Asia, Australia and New Zealand 699 11 565 10 478 9 Latin America, and the Caribbean 260 4 267 5 182 4 Middle East, Africa, Russia and the Commonwealth of Independent States (CIS) 260 4 270 5 236 4 Total $ 6,300 100 % $ 5,588 100 % $ 5,357 100 % |
Percentage of premiums through brokers | The Company has two brokers that individually accounted for 10% or more of its gross premiums written during the years ended December 31, 2018 , 2017 and 2016 , as follows: Broker 2018 2017 2016 Marsh (including Guy Carpenter) 22 % 25 % 22 % Aon Group (including the Benfield Group) 22 % 22 % 22 % The following table summarizes the percentage of gross premiums written through these two brokers by segment for the years ended December 31, 2018 , 2017 and 2016 : 2018 2017 2016 P&C 53 % 53 % 52 % Specialty 52 % 56 % 46 % Life and Health 11 % 12 % 13 % |
Organization (Details)
Organization (Details) | Apr. 03, 2017 |
Aurigen Capital Limited | |
Business Acquisition [Line Items] | |
Percentage of voting interests acquired | 100.00% |
Organization - Common shares (D
Organization - Common shares (Details) - shares | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 18, 2016 |
Class of Stock [Line Items] | |||
Common shares, shares issued | 100,000,000 | 100,000,000 | 1 |
Percentage ownership | 99.70% | 99.70% | 100.00% |
Class B Shares [Member] | |||
Class of Stock [Line Items] | |||
Common shares, shares issued | 345,644 | 255,492 |
Significant Accounting Polici_3
Significant Accounting Policies - Narrative (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($)equity_investment | Dec. 31, 2018USD ($)equity_investmentSegment | |
Disclosure - Significant Accounting Policies [Abstract] | ||
Number of segments | 3 | 3 |
Number of equity investments | equity_investment | 4 | 4 |
Cumulative effect of new accounting principle in period of adoption | $ | $ 13 | $ 13 |
Fair Value - Hierarchy table (D
Fair Value - Hierarchy table (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, at fair value | $ 12,639,845 | $ 12,654,859 |
Short-term investments | 493,726 | 4,400 |
Equities | 694,301 | 638,596 |
Other invested assets | 784,603 | 639,572 |
Funds held - directly managed | 300,445 | |
Total | 14,612,475 | 14,237,872 |
Available-for-sale Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 229,000 | |
Derivative assets | Foreign exchange forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 17,820 | 8,559 |
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 | 2,824 | 11,985 |
Derivative assets | Total return swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 1,697 | 2,505 |
Derivative assets | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 10 | |
Derivative assets | TBAs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 391 | |
Corporate loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 401,702 | 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 | 6,507 | 111,988 |
Private equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 372,710 | 331,932 |
Derivative liabilities | Foreign exchange forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | (3,673) | (20,328) |
Derivative liabilities | Insurance-linked securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | (2,568) | |
Derivative liabilities | Total return swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | (3,232) | (3,269) |
Derivative liabilities | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | (9,194) | (12,298) |
Derivative liabilities | TBAs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | (591) | |
Other invested assets funds held directly managed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Funds held - directly managed | 2,520 | |
Finance | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 25,018 | 33,042 |
Technology | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 17,748 | 12,951 |
Consumer noncyclical | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 13,334 | 897 |
Consumer cyclical | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 6,435 | 2,170 |
Industrials | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 4,797 | 16,534 |
Insurance | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 2,960 | 7,558 |
Communications | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 1,451 | 3,215 |
Other equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 799 | 3,493 |
Mutual funds and exchange traded funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 621,759 | 558,736 |
U.S. government and government sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, at fair value | 2,345,008 | 2,205,964 |
Funds held - directly managed | 161,023 | |
U.S. states, territories and municipalities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, at fair value | 134,593 | 690,311 |
Non US sovereign government supranational and government related [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, at fair value | 2,158,642 | 1,750,770 |
Funds held - directly managed | 95,812 | |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, at fair value | 5,611,678 | 6,128,636 |
Funds held - directly managed | 41,090 | |
Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, at fair value | 58,683 | 51,703 |
Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, at fair value | 2,331,230 | 1,822,725 |
Other mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, at fair value | 11 | 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, at fair value | 0 | 0 |
Short-term investments | 0 | 0 |
Equities | 45,386 | 39,414 |
Other invested assets | 0 | 3,367 |
Funds held - directly managed | 0 | |
Total | 45,386 | 42,781 |
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 | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 0 | |
Quoted prices in active markets for identical assets (Level 1) | Derivative assets | TBAs | ||
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) | Corporate loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Notes and loan receivables and notes securitization | ||
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 | |
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 | |
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 | 11,307 | 11,115 |
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 | 5,492 | 1,990 |
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 | 13,334 | 897 |
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 | 6,435 | 2,170 |
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 | 4,797 | 16,534 |
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 | 1,771 | 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 | 1,451 | 3,215 |
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 | 799 | 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, at fair value | 0 | 0 |
Funds held - directly managed | 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, at fair value | 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, at fair value | 0 | 0 |
Funds held - directly managed | 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, at fair value | 0 | 0 |
Funds held - directly managed | 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, at fair value | 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, at fair value | 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, at fair value | 0 | 0 |
Significant other observable inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, at fair value | 12,479,881 | 12,505,315 |
Short-term investments | 493,726 | 4,400 |
Equities | 1,190 | 7,559 |
Other invested assets | 4,963 | (20,842) |
Funds held - directly managed | 298,378 | |
Total | 12,979,760 | 12,794,810 |
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 | 17,820 | 8,559 |
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 | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 10 | |
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 | |
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 | 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 | 0 | 3,425 |
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 | (3,673) | (20,328) |
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 | (9,194) | (12,298) |
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) | |
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 | 453 | |
Significant other observable inputs (Level 2) | Finance | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 1 | 1 |
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) | Consumer noncyclical | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 0 | 0 |
Significant other observable inputs (Level 2) | Consumer cyclical | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 0 | 0 |
Significant other observable inputs (Level 2) | Industrials | ||
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 | 1,189 | 7,558 |
Significant other observable inputs (Level 2) | Communications | ||
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 | 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, at fair value | 2,345,008 | 2,205,964 |
Funds held - directly managed | 161,023 | |
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, at fair value | 13,695 | 561,505 |
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, at fair value | 2,158,642 | 1,750,770 |
Funds held - directly managed | 95,812 | |
Significant other observable inputs (Level 2) | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, at fair value | 5,590,208 | 6,128,636 |
Funds held - directly managed | 41,090 | |
Significant other observable inputs (Level 2) | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, at fair value | 41,087 | 30,965 |
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, at fair value | 2,331,230 | 1,822,725 |
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, at fair value | 11 | 4,750 |
Significant unobservable inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, at fair value | 159,964 | 149,544 |
Short-term investments | 0 | 0 |
Equities | 647,725 | 591,623 |
Other invested assets | 779,640 | 657,047 |
Funds held - directly managed | 2,067 | |
Total | 1,587,329 | 1,400,281 |
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 | 2,824 | 11,985 |
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 | 1,697 | 2,505 |
Significant unobservable inputs (Level 3) | Derivative assets | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 0 | |
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 | |
Significant unobservable inputs (Level 3) | Corporate loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 401,702 | 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 | 6,507 | 108,563 |
Significant unobservable inputs (Level 3) | Private equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 372,710 | 331,932 |
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 | (2,568) | |
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 | (3,232) | (3,269) |
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 | |
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 | |
Significant unobservable inputs (Level 3) | Finance | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 13,710 | 21,926 |
Significant unobservable inputs (Level 3) | Technology | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 12,256 | 10,961 |
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) | Consumer cyclical | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 0 | 0 |
Significant unobservable inputs (Level 3) | Industrials | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 0 | 0 |
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 | 0 |
Significant unobservable inputs (Level 3) | Other equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 0 | 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 | 621,759 | 558,736 |
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, at fair value | 0 | 0 |
Funds held - directly managed | 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, at fair value | 120,898 | 128,806 |
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, at fair value | 0 | 0 |
Funds held - directly managed | 0 | |
Significant unobservable inputs (Level 3) | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, at fair value | 21,470 | 0 |
Funds held - directly managed | 0 | |
Significant unobservable inputs (Level 3) | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, at fair value | 17,596 | 20,738 |
Significant unobservable inputs (Level 3) | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, at fair value | 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, at fair value | $ 0 | $ 0 |
Fair Value - Level 3 rollforwar
Fair Value - Level 3 rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Balance, beginning of year | $ 1,400,281 | $ 714,832 | |||
Realized and unrealized investment gains (losses) included in net income | (22,474) | 100,621 | |||
Purchases and issuances | 476,761 | 737,210 | |||
Settlements and Sales | (323,673) | (152,382) | |||
Net transfers into/ (out of) Level 3 | 56,434 | 0 | |||
Balance, end of year | 1,587,329 | 1,400,281 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of year | (37,647) | 97,626 | |||
Issuances | 2,000 | 2,000 | |||
Sales | 1,000 | ||||
Fixed maturities | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Balance, beginning of year | 149,544 | 223,178 | |||
Realized and unrealized investment gains (losses) included in net income | (7,108) | 9,104 | |||
Purchases and issuances | 0 | 1,360 | |||
Settlements and Sales | (7,826) | (84,098) | |||
Net transfers into/ (out of) Level 3 | 25,354 | 0 | |||
Balance, end of year | 159,964 | 149,544 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of year | (7,011) | 7,120 | |||
Fixed maturities | U.S. states, territories and municipalities | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Balance, beginning of year | 128,806 | 123,827 | |||
Realized and unrealized investment gains (losses) included in net income | (4,417) | 5,804 | |||
Purchases and issuances | 0 | 0 | |||
Settlements and Sales | (3,491) | (825) | |||
Net transfers into/ (out of) Level 3 | 0 | 0 | |||
Balance, end of year | 120,898 | 128,806 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of year | (4,320) | 5,804 | |||
Fixed maturities | Asset-backed securities | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Balance, beginning of year | 20,738 | 99,351 | |||
Realized and unrealized investment gains (losses) included in net income | (2,552) | 3,300 | |||
Purchases and issuances | 0 | 1,360 | |||
Settlements and Sales | (590) | (83,273) | |||
Net transfers into/ (out of) Level 3 | 0 | 0 | |||
Balance, end of year | 17,596 | 20,738 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of year | (2,552) | 1,316 | |||
Fixed maturities | Corporate bonds | |||||
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 | (139) | ||||
Purchases and issuances | 0 | ||||
Settlements and Sales | (3,745) | ||||
Net transfers into/ (out of) Level 3 | 25,354 | ||||
Balance, end of year | 21,470 | 0 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of year | (139) | ||||
Equities | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Balance, beginning of year | 591,623 | 30,887 | |||
Realized and unrealized investment gains (losses) included in net income | 17,356 | 54,079 | |||
Purchases and issuances | 55,027 | 507,250 | |||
Settlements and Sales | (16,281) | [1] | (593) | [2] | |
Net transfers into/ (out of) Level 3 | 0 | 0 | |||
Balance, end of year | 647,725 | 591,623 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of year | 8,747 | 54,089 | |||
Sales | [1] | 16,000 | |||
Equities | Finance | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Balance, beginning of year | 21,926 | 20,934 | |||
Realized and unrealized investment gains (losses) included in net income | 5,065 | 992 | |||
Purchases and issuances | 0 | 0 | |||
Settlements and Sales | (13,281) | 0 | [2] | ||
Net transfers into/ (out of) Level 3 | 0 | 0 | |||
Balance, end of year | 13,710 | 21,926 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of year | (3,544) | 992 | |||
Equities | Technology | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Balance, beginning of year | 10,961 | 9,800 | |||
Realized and unrealized investment gains (losses) included in net income | 1,295 | 1,611 | |||
Purchases and issuances | 0 | 0 | |||
Settlements and Sales | 0 | (450) | [2] | ||
Net transfers into/ (out of) Level 3 | 0 | 0 | |||
Balance, end of year | 12,256 | 10,961 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of year | 1,295 | 1,611 | |||
Equities | Mutual funds and exchange traded funds | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Balance, beginning of year | 558,736 | 153 | |||
Realized and unrealized investment gains (losses) included in net income | 10,996 | 51,476 | |||
Purchases and issuances | 55,027 | 507,250 | |||
Settlements and Sales | (3,000) | (143) | [2] | ||
Net transfers into/ (out of) Level 3 | 0 | 0 | |||
Balance, end of year | 621,759 | 558,736 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of year | 10,996 | 51,486 | |||
Other invested assets | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Balance, beginning of year | 657,047 | 456,227 | |||
Realized and unrealized investment gains (losses) included in net income | (32,960) | 37,954 | |||
Purchases and issuances | 421,466 | 228,105 | |||
Settlements and Sales | (296,993) | [1] | (65,239) | ||
Net transfers into/ (out of) Level 3 | 31,080 | 0 | |||
Balance, end of year | 779,640 | 657,047 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of year | (39,383) | 37,046 | |||
Sales | [1] | 248,000 | |||
Other invested assets | Derivatives, net | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Balance, beginning of year | 11,221 | 8,805 | |||
Realized and unrealized investment gains (losses) included in net income | 5,038 | 5,977 | |||
Purchases and issuances | (1,623) | [3] | 1,793 | [4] | |
Settlements and Sales | (15,915) | (5,354) | |||
Net transfers into/ (out of) Level 3 | 0 | 0 | |||
Balance, end of year | (1,279) | 11,221 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of year | 372 | 3,231 | |||
Sales | [1] | 16,000 | |||
Other invested assets | Corporate loans | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Balance, beginning of year | 205,331 | 0 | |||
Realized and unrealized investment gains (losses) included in net income | (21,522) | (709) | |||
Purchases and issuances | 367,975 | 206,700 | |||
Settlements and Sales | (150,082) | (660) | |||
Net transfers into/ (out of) Level 3 | 0 | 0 | |||
Balance, end of year | 401,702 | 205,331 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of year | (20,823) | (695) | |||
Sales | [1] | 107,000 | |||
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 | 108,563 | 141,693 | |||
Realized and unrealized investment gains (losses) included in net income | (4,054) | 2,744 | |||
Purchases and issuances | 0 | 2,040 | |||
Settlements and Sales | (98,002) | (37,914) | |||
Net transfers into/ (out of) Level 3 | 0 | 0 | |||
Balance, end of year | 6,507 | 108,563 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of year | (3,884) | 6,977 | |||
Sales | 96,000 | ||||
Other invested assets | Private equities | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Balance, beginning of year | 331,932 | 305,729 | |||
Realized and unrealized investment gains (losses) included in net income | (12,422) | 29,942 | |||
Purchases and issuances | 55,114 | 17,572 | |||
Settlements and Sales | (32,994) | (21,311) | |||
Net transfers into/ (out of) Level 3 | 31,080 | 0 | |||
Balance, end of year | 372,710 | 331,932 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of year | (15,048) | 27,533 | |||
Sales | 29,000 | ||||
Funds Held - Directly Managed | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Balance, beginning of year | 2,067 | 4,540 | |||
Realized and unrealized investment gains (losses) included in net income | 238 | (516) | |||
Purchases and issuances | 268 | 495 | |||
Settlements and Sales | (2,573) | [1] | (2,452) | ||
Net transfers into/ (out of) Level 3 | 0 | 0 | |||
Balance, end of year | 0 | 2,067 | |||
Change in unrealized investment gains (losses) relating to assets held at the end of year | 0 | $ (629) | |||
Sales | [1] | $ 3,000 | |||
[1] | Settlements and sales of Equities, Other invested assets, and Funds held–directly managed include sales of $16 million, $248 million and $3 million, respectively. Sales of Other invested assets of $248 million included sales of derivatives of $16 million, corporate loans of $107 million, notes and loan receivables and notes securitization of $96 million, and private equities of $29 million. | ||||
[2] | Settlements and sales of equities include sales of $1 million. | ||||
[3] | Purchases and issuances of derivatives include issuances of $2 million. | ||||
[4] | Purchases and issuances of derivatives include issuances of $2 million. |
Fair Value - Valuation Techniqu
Fair Value - Valuation Technique and Inputs (Details) $ in Thousands | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fixed maturities, at fair value | $ 12,639,845 | $ 12,654,859 |
Equities, at fair value | 694,301 | 638,596 |
Other invested assets carried at fair value | 784,603 | 639,572 |
Funds held directly managed investments carried at fair value | 300,445 | |
Finance | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equities, at fair value | 25,018 | 33,042 |
Technology | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equities, at fair value | 17,748 | 12,951 |
Significant unobservable inputs (Level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fixed maturities, at fair value | 159,964 | 149,544 |
Equities, at fair value | 647,725 | 591,623 |
Other invested assets carried at fair value | 779,640 | 657,047 |
Funds held directly managed investments carried at fair value | 2,067 | |
Significant unobservable inputs (Level 3) | Finance | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equities, at fair value | 13,710 | 21,926 |
Significant unobservable inputs (Level 3) | Finance | Weighted market comparables | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equities, at fair value | 21,926 | |
Significant unobservable inputs (Level 3) | Technology | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equities, at fair value | 12,256 | 10,961 |
Significant unobservable inputs (Level 3) | Technology | Reported market value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equities, at fair value | 10,961 | |
Significant unobservable inputs (Level 3) | U.S. states, territories and municipalities | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fixed maturities, at fair value | $ 120,898 | $ 128,806 |
Significant unobservable inputs (Level 3) | U.S. states, territories and municipalities | Discounted cash flow | Credit spreads | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fixed maturities, measurement input | 0.002 | 0.002 |
Significant unobservable inputs (Level 3) | U.S. states, territories and municipalities | Discounted cash flow | Credit spreads | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fixed maturities, measurement input | 0.102 | 0.102 |
Significant unobservable inputs (Level 3) | U.S. states, territories and municipalities | Discounted cash flow | Credit spreads | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fixed maturities, measurement input | 0.043 | 0.047 |
Significant unobservable inputs (Level 3) | Asset-backed securities [Member] | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fixed maturities, at fair value | $ 17,596 | $ 20,738 |
Significant unobservable inputs (Level 3) | Asset-backed securities [Member] | Discounted cash flow | Credit spreads | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fixed maturities, measurement input | 0.067 | 0.047 |
Significant unobservable inputs (Level 3) | Asset-backed securities [Member] | Discounted cash flow | Credit spreads | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fixed maturities, measurement input | 0.067 | 0.047 |
Significant unobservable inputs (Level 3) | Asset-backed securities [Member] | Discounted cash flow | Credit spreads | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fixed maturities, measurement input | 0.067 | 0.047 |
Significant unobservable inputs (Level 3) | Equities | Finance | Lag reported market value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equities, at fair value | $ 13,710 | |
Significant unobservable inputs (Level 3) | Equities | Finance | Lag reported market value | Transaction price | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities, measurement input | 12 | |
Significant unobservable inputs (Level 3) | Equities | Finance | Lag reported market value | Transaction price | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities, measurement input | 12 | |
Significant unobservable inputs (Level 3) | Equities | Finance | Lag reported market value | Transaction price | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities, measurement input | 12 | |
Significant unobservable inputs (Level 3) | Equities | Finance | Weighted market comparables | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equities, at fair value | $ 21,926 | |
Significant unobservable inputs (Level 3) | Equities | Finance | Weighted market comparables | Liquidity discount | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities, measurement input | 0.250 | |
Significant unobservable inputs (Level 3) | Equities | Finance | Weighted market comparables | Liquidity discount | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities, measurement input | 0.250 | |
Significant unobservable inputs (Level 3) | Equities | Finance | Weighted market comparables | Liquidity discount | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities, measurement input | 0.250 | |
Significant unobservable inputs (Level 3) | Equities | Finance | Weighted market comparables | Tangible book value multiple | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities, measurement input | 2 | |
Significant unobservable inputs (Level 3) | Equities | Finance | Weighted market comparables | Tangible book value multiple | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities, measurement input | 2 | |
Significant unobservable inputs (Level 3) | Equities | Finance | Weighted market comparables | Tangible book value multiple | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities, measurement input | 2 | |
Significant unobservable inputs (Level 3) | Equities | Finance | Weighted market comparables | Net income multiple | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities, measurement input | 16.7 | |
Significant unobservable inputs (Level 3) | Equities | Finance | Weighted market comparables | Net income multiple | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities, measurement input | 16.7 | |
Significant unobservable inputs (Level 3) | Equities | Finance | Weighted market comparables | Net income multiple | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities, measurement input | 16.7 | |
Significant unobservable inputs (Level 3) | Equities | Finance | Weighted market comparables | Transaction price | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities, measurement input | 0.041 | |
Significant unobservable inputs (Level 3) | Equities | Finance | Weighted market comparables | Transaction price | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities, measurement input | 0.041 | |
Significant unobservable inputs (Level 3) | Equities | Finance | Weighted market comparables | Transaction price | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities, measurement input | 0.041 | |
Significant unobservable inputs (Level 3) | Equities | Technology | Reported market value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equities, at fair value | $ 12,256 | $ 10,961 |
Significant unobservable inputs (Level 3) | Equities | Technology | Reported market value | Tangible book value multiple | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities, measurement input | 1 | 1 |
Significant unobservable inputs (Level 3) | Equities | Technology | Reported market value | Tangible book value multiple | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities, measurement input | 1 | 1 |
Significant unobservable inputs (Level 3) | Equities | Technology | Reported market value | Tangible book value multiple | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities, measurement input | 1 | 1 |
Significant unobservable inputs (Level 3) | Total return swaps | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets carried at fair value | $ (1,535) | $ (764) |
Significant unobservable inputs (Level 3) | Total return swaps | Discounted cash flow | Credit spreads | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivatives, measurement input | 0.025 | 0.024 |
Significant unobservable inputs (Level 3) | Total return swaps | Discounted cash flow | Credit spreads | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivatives, measurement input | 0.230 | 0.308 |
Significant unobservable inputs (Level 3) | Total return swaps | Discounted cash flow | Credit spreads | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivatives, measurement input | 0.160 | 0.185 |
Significant unobservable inputs (Level 3) | Insurance-linked securities | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets carried at fair value | $ 11,962 | |
Significant unobservable inputs (Level 3) | Insurance-linked securities | Insurance-linked securities longevity swaps [Member] | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets carried at fair value | $ 2,824 | $ 11,962 |
Significant unobservable inputs (Level 3) | Insurance-linked securities | Insurance-linked securities longevity swaps [Member] | Discounted cash flow | Credit spreads | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivatives, measurement input | 0.026 | 0.017 |
Significant unobservable inputs (Level 3) | Insurance-linked securities | Insurance-linked securities longevity swaps [Member] | Discounted cash flow | Credit spreads | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivatives, measurement input | 0.026 | 0.017 |
Significant unobservable inputs (Level 3) | Insurance-linked securities | Insurance-linked securities longevity swaps [Member] | Discounted cash flow | Credit spreads | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivatives, measurement input | 0.026 | 0.017 |
Significant unobservable inputs (Level 3) | Insurance-linked securities | Insurance-linked securities Weather index swaps [Member] | Proprietary option model | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets carried at fair value | $ (1,267) | |
Significant unobservable inputs (Level 3) | Insurance-linked securities | Insurance-linked securities Weather index swaps [Member] | Proprietary option model | Index value (temperature) | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivatives, measurement input | 80.7 | |
Significant unobservable inputs (Level 3) | Insurance-linked securities | Insurance-linked securities Weather index swaps [Member] | Proprietary option model | Index value (temperature) | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivatives, measurement input | 3,293.8 | |
Significant unobservable inputs (Level 3) | Insurance-linked securities | Insurance-linked securities Weather index swaps [Member] | Proprietary option model | Index value (temperature) | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivatives, measurement input | 175.3 | |
Significant unobservable inputs (Level 3) | Insurance-linked securities | Insurance-linked securities pandemic swaps [Member] | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets carried at fair value | $ (1,301) | |
Significant unobservable inputs (Level 3) | Insurance-linked securities | Insurance-linked securities pandemic swaps [Member] | Discounted cash flow | Credit spreads | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivatives, measurement input | 0.273 | |
Significant unobservable inputs (Level 3) | Insurance-linked securities | Insurance-linked securities pandemic swaps [Member] | Discounted cash flow | Credit spreads | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivatives, measurement input | 0.273 | |
Significant unobservable inputs (Level 3) | Insurance-linked securities | Insurance-linked securities pandemic swaps [Member] | Discounted cash flow | Credit spreads | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivatives, measurement input | 0.273 | |
Significant unobservable inputs (Level 3) | Notes and loan receivables | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets carried at fair value | $ 2,660 | $ 102,907 |
Significant unobservable inputs (Level 3) | Notes and loan receivables | Discounted cash flow | Credit spreads | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets, measurement input | 0.415 | 0.039 |
Significant unobservable inputs (Level 3) | Notes and loan receivables | Discounted cash flow | Credit spreads | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets, measurement input | 0.419 | 0.393 |
Significant unobservable inputs (Level 3) | Notes and loan receivables | Discounted cash flow | Credit spreads | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets, measurement input | 0.415 | 0.061 |
Significant unobservable inputs (Level 3) | Notes and Loans Receivable 2 | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets carried at fair value | $ 2,688 | $ 4,265 |
Significant unobservable inputs (Level 3) | Notes and Loans Receivable 2 | Discounted cash flow | Credit spreads | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets, measurement input | 0.175 | 0.175 |
Significant unobservable inputs (Level 3) | Notes and Loans Receivable 2 | Discounted cash flow | Credit spreads | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets, measurement input | 0.175 | 0.175 |
Significant unobservable inputs (Level 3) | Notes and Loans Receivable 2 | Discounted cash flow | Credit spreads | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets, measurement input | 0.175 | 0.175 |
Significant unobservable inputs (Level 3) | Notes and Loans Receivable 2 | Discounted cash flow | Gross revenue/fair value | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets, measurement input | 1.1 | 1.1 |
Significant unobservable inputs (Level 3) | Notes and Loans Receivable 2 | Discounted cash flow | Gross revenue/fair value | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets, measurement input | 1.1 | 1.1 |
Significant unobservable inputs (Level 3) | Notes and Loans Receivable 2 | Discounted cash flow | Gross revenue/fair value | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets, measurement input | 1.1 | 1.1 |
Significant unobservable inputs (Level 3) | Notes securitization | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets carried at fair value | $ 1,159 | $ 1,391 |
Significant unobservable inputs (Level 3) | Notes securitization | Discounted cash flow | Credit spreads | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets, measurement input | 0.008 | 0.015 |
Significant unobservable inputs (Level 3) | Notes securitization | Discounted cash flow | Credit spreads | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets, measurement input | 0.008 | 0.015 |
Significant unobservable inputs (Level 3) | Notes securitization | Discounted cash flow | Credit spreads | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets, measurement input | 0.008 | 0.015 |
Significant unobservable inputs (Level 3) | Private Equity-Direct | Weighted market comparables | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets carried at fair value | $ 1,889 | |
Significant unobservable inputs (Level 3) | Private Equity-Direct | Weighted market comparables | Liquidity discount | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets, measurement input | 0.300 | |
Significant unobservable inputs (Level 3) | Private Equity-Direct | Weighted market comparables | Liquidity discount | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets, measurement input | 0.300 | |
Significant unobservable inputs (Level 3) | Private Equity-Direct | Weighted market comparables | Liquidity discount | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets, measurement input | 0.300 | |
Significant unobservable inputs (Level 3) | Private Equity-Direct | Weighted market comparables | Adjusted earnings multiple | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets, measurement input | 9.8 | |
Significant unobservable inputs (Level 3) | Private Equity-Direct | Weighted market comparables | Adjusted earnings multiple | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets, measurement input | 9.8 | |
Significant unobservable inputs (Level 3) | Private Equity-Direct | Weighted market comparables | Adjusted earnings multiple | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets, measurement input | 9.8 | |
Significant unobservable inputs (Level 3) | Private Equity-Direct | Discounted cash flow and market multiples | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets carried at fair value | $ 3,011 | |
Significant unobservable inputs (Level 3) | Private Equity-Direct | Discounted cash flow and market multiples | Tangible book value multiple | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets, measurement input | 0.8 | |
Significant unobservable inputs (Level 3) | Private Equity-Direct | Discounted cash flow and market multiples | Tangible book value multiple | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets, measurement input | 0.8 | |
Significant unobservable inputs (Level 3) | Private Equity-Direct | Discounted cash flow and market multiples | Tangible book value multiple | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets, measurement input | 0.8 | |
Significant unobservable inputs (Level 3) | Private Equity-Direct | Discounted cash flow and market multiples | Recoverability of intangible assets | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets, measurement input | 0 | |
Significant unobservable inputs (Level 3) | Private Equity-Direct | Discounted cash flow and market multiples | Recoverability of intangible assets | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets, measurement input | 0 | |
Significant unobservable inputs (Level 3) | Private Equity-Direct | Discounted cash flow and market multiples | Recoverability of intangible assets | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets, measurement input | 0 | |
Significant unobservable inputs (Level 3) | Private equity funds | Weighted market comparables | Revenue multiple | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets, measurement input | 1.1 | |
Significant unobservable inputs (Level 3) | Private equity funds | Weighted market comparables | Revenue multiple | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets, measurement input | 1.1 | |
Significant unobservable inputs (Level 3) | Private equity funds | Weighted market comparables | Revenue multiple | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets, measurement input | 1.1 | |
Significant unobservable inputs (Level 3) | Private equity funds | Reported market value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets carried at fair value | $ 14,438 | $ 12,559 |
Significant unobservable inputs (Level 3) | Private equity funds | Reported market value | Net asset value, as reported | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets, measurement input | 1 | 1 |
Significant unobservable inputs (Level 3) | Private equity funds | Reported market value | Net asset value, as reported | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets, measurement input | 1 | 1 |
Significant unobservable inputs (Level 3) | Private equity funds | Reported market value | Net asset value, as reported | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets, measurement input | 1 | 1 |
Significant unobservable inputs (Level 3) | Private equity funds | Reported market value | Market adjustments | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets, measurement input | (0.065) | (0.007) |
Significant unobservable inputs (Level 3) | Private equity funds | Reported market value | Market adjustments | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets, measurement input | (0.065) | (0.007) |
Significant unobservable inputs (Level 3) | Private equity funds | Reported market value | Market adjustments | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets, measurement input | (0.065) | (0.007) |
Significant unobservable inputs (Level 3) | Private Equity - Other | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets carried at fair value | $ 19,997 | $ 24,241 |
Significant unobservable inputs (Level 3) | Private Equity - Other | Discounted cash flow | Effective yield | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets, measurement input | 0.041 | 0.038 |
Significant unobservable inputs (Level 3) | Private Equity - Other | Discounted cash flow | Effective yield | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets, measurement input | 0.041 | 0.038 |
Significant unobservable inputs (Level 3) | Private Equity - Other | Discounted cash flow | Effective yield | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets, measurement input | 0.041 | 0.038 |
Significant unobservable inputs (Level 3) | Other invested assets | Reported market value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Funds held directly managed investments carried at fair value | $ 2,067 | |
Significant unobservable inputs (Level 3) | Other invested assets | Reported market value | Net asset value, as reported | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Funds held - directly managed, measurement input | 1 | |
Significant unobservable inputs (Level 3) | Other invested assets | Reported market value | Net asset value, as reported | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Funds held - directly managed, measurement input | 1 | |
Significant unobservable inputs (Level 3) | Other invested assets | Reported market value | Net asset value, as reported | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Funds held - directly managed, measurement input | 1 | |
Significant unobservable inputs (Level 3) | Other invested assets | Reported market value | Market adjustments | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Funds held - directly managed, measurement input | 0 | |
Significant unobservable inputs (Level 3) | Other invested assets | Reported market value | Market adjustments | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Funds held - directly managed, measurement input | 0 | |
Significant unobservable inputs (Level 3) | Other invested assets | Reported market value | Market adjustments | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Funds held - directly managed, measurement input | 0 |
Fair Value - Change in fair val
Fair Value - Change in fair value option table (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Change in unrealized gain/loss | $ (167,606) | $ 207,025 | $ (94,839) |
Fixed maturities and short term investments | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Change in unrealized gain/loss | (150,926) | 124,033 | (90,334) |
Equities | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Change in unrealized gain/loss | 2,791 | 60,460 | (14,850) |
Other invested assets | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Change in unrealized gain/loss | (12,987) | 28,144 | 11,066 |
Funds Held - Directly Managed | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Change in unrealized gain/loss | $ (6,484) | $ (5,612) | $ (721) |
Fair Value - narrative items (D
Fair Value - narrative items (Details) | 12 Months Ended | |||
Dec. 31, 2018USD ($)equity_investment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Fair Value - Other Details [Line Items] | ||||
Funds held directly managed investments carried at fair value | $ 300,445,000 | |||
Cash and cash equivalents | $ 877,907,000 | 1,772,012,000 | $ 1,773,328,000 | $ 1,577,097,000 |
Accrued investment income | 115,735,000 | 120,805,000 | ||
Transfers between level 1 and level 2 | $ 0 | 0 | ||
Number of Equity Investments transfered into level 3 | equity_investment | 4 | |||
Funds held directly managed | ||||
Fair Value - Other Details [Line Items] | ||||
Cash and cash equivalents | 74,000,000 | |||
Accrued investment income | 3,000,000 | |||
Other net assets | 47,000,000 | |||
Other invested assets | Private equities | ||||
Fair Value - Other Details [Line Items] | ||||
Transfers into level 3 | $ 31,000,000 | |||
Other invested assets | Trading securities | ||||
Fair Value - Other Details [Line Items] | ||||
Carrying amount of other invested assets not at fair value | 704,000,000 | 746,000,000 | ||
Corporate bonds | ||||
Fair Value - Other Details [Line Items] | ||||
Funds held directly managed investments carried at fair value | $ 41,090,000 | |||
Corporate bonds | Fixed Maturities [Member] | ||||
Fair Value - Other Details [Line Items] | ||||
Transfers into level 3 | $ 25,000,000 |
Investments - Net Realized and
Investments - Net Realized and Unrealized Investment (Losses) Gains (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Net Realized and Unrealized Investment (Losses) Gains | |||
Net realized and unrealized investment (losses) gains | $ (389,632) | $ 232,491 | $ 26,266 |
Trading securities | |||
Schedule of Net Realized and Unrealized Investment (Losses) Gains | |||
Net realized investment gains (losses) on trading securities | (201,950) | 21,871 | 103,871 |
Change in net unrealized investment gains (losses) | (181,560) | 210,620 | (77,605) |
Net realized and unrealized investment (losses) gains | (389,632) | 232,491 | 26,266 |
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 | (224,887) | 28,632 | 96,994 |
Change in net unrealized investment gains (losses) | (150,926) | 124,033 | (90,334) |
Trading securities | Equities | |||
Schedule of Net Realized and Unrealized Investment (Losses) Gains | |||
Net realized investment gains (losses) on trading securities | 14,601 | (4,052) | 157 |
Change in net unrealized investment gains (losses) | 2,791 | 60,460 | (14,850) |
Trading securities | Other invested assets | |||
Schedule of Net Realized and Unrealized Investment (Losses) Gains | |||
Net realized investment gains (losses) on trading securities | 7,136 | (3,217) | 5,365 |
Change in net unrealized investment gains (losses) | (25,607) | 32,790 | 25,488 |
Trading securities | Funds Held - Directly Managed | |||
Schedule of Net Realized and Unrealized Investment (Losses) Gains | |||
Net realized investment gains (losses) on trading securities | 1,200 | 508 | 1,355 |
Change in net unrealized investment gains (losses) | (6,484) | (5,567) | (676) |
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) | (1,334) | (1,096) | 2,767 |
Trading securities | Real Estate Investment | |||
Schedule of Net Realized and Unrealized Investment (Losses) Gains | |||
Other than Temporary Impairment Losses, Investments | $ (6,122) | $ 0 | $ 0 |
Investments - Investment Income
Investments - Investment Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net Investment Income [Line Items] | |||
Net investment income | $ 415,921 | $ 402,071 | $ 410,864 |
Funds held interest rate, low end of range | 0.10% | 0.10% | 0.00% |
Funds held interest rate, high end of range | 7.40% | 7.00% | 5.40% |
Funds held by reinsured companies | $ 829,695 | $ 801,451 | |
Trading securities | |||
Net Investment Income [Line Items] | |||
Net investment income | 415,921 | 402,071 | $ 410,864 |
Trading securities | Fixed maturities | |||
Net Investment Income [Line Items] | |||
Net investment income | 378,726 | 382,676 | 395,831 |
Trading securities | Short-term investments and cash and cash equivalents | |||
Net Investment Income [Line Items] | |||
Net investment income | 13,279 | 5,363 | 1,915 |
Trading securities | Equities | |||
Net Investment Income [Line Items] | |||
Net investment income | 3,499 | (12) | 4,382 |
Trading securities | Funds Held And Other | |||
Net Investment Income [Line Items] | |||
Net investment income | 44,699 | 29,068 | 34,161 |
Trading securities | Funds Held And Other | Aurigen Capital Limited | Maximum | |||
Net Investment Income [Line Items] | |||
Funds held by reinsured companies | 2,000 | ||
Trading securities | Funds Held - Directly Managed | |||
Net Investment Income [Line Items] | |||
Net investment income | 4,674 | 7,742 | 9,993 |
Trading securities | Investment Expenses | |||
Net Investment Income [Line Items] | |||
Net investment income | $ (28,956) | $ (22,766) | $ (35,418) |
Investments - Pledged assets an
Investments - Pledged assets and net payable receivable for securities purchased sold (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Pledged assets and net payable for securities purchased [Line Items] | ||
Restricted cash and cash equivalents | $ 152 | $ 274 |
Restricted securities | 3,849 | 3,422 |
Other assets | ||
Pledged assets and net payable for securities purchased [Line Items] | ||
Receivable for securities sold | 19 | |
Accounts payable, accrued expenses, and other | ||
Pledged assets and net payable for securities purchased [Line Items] | ||
Payable for securities purchased | $ 80 | $ 38 |
Investments - Equity Method Inv
Investments - Equity Method Investment - Summarized Financial Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Almacantar Group S.A. | ||||
Summarized financial information - balance sheet | ||||
Current assets | $ 1,007,293 | $ 906,085 | ||
Noncurrent assets | 1,341,825 | 1,877,519 | ||
Current liabilities | 577,660 | 553,219 | ||
Noncurrent liabilities | 357,625 | 690,935 | ||
Summarized financial information - income statement | ||||
Revenues | 173,646 | 130,333 | $ 24,646 | |
Operating (loss) profit | [1] | (14,562) | 190,613 | (47,082) |
Net (loss) income | (21,038) | 213,241 | $ (37,059) | |
EXOR S.A. [Member] | Almacantar Group S.A. | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 36.00% | |||
Summarized financial information - income statement | ||||
Purchase price | $ 539,000 | |||
Other invested assets | Almacantar Group S.A. | ||||
Summarized financial information - income statement | ||||
Investment carrying value | 498,000 | $ 538,000 | ||
Other invested assets | EXOR S.A. [Member] | ||||
Summarized financial information - income statement | ||||
Investment carrying value | $ 11,000 | |||
[1] | Operating profit referred to in the table above includes revenues, cost of sales, and unrealized gains on properties. |
Derivatives - Balance Sheet (De
Derivatives - Balance Sheet (Details) $ in Thousands, € in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | |
Derivative [Line Items] | ||||
Asset derivatives at fair value | [1] | $ 22,351 | $ 26,807 | |
Liability derivatives at fair value | [1] | (18,667) | (36,486) | |
Fair value | 3,684 | |||
Derivatives designated as hedges [Member] | ||||
Derivative [Line Items] | ||||
Asset derivatives at fair value | 0 | |||
Liability derivatives at fair value | (2,464) | |||
Fair value | (2,464) | |||
Net notional exposure | 0 | |||
Derivatives designated as hedges [Member] | Foreign exchange forward contracts | ||||
Derivative [Line Items] | ||||
Asset derivatives at fair value | 0 | |||
Liability derivatives at fair value | (2,464) | |||
Fair value | (2,464) | |||
Net notional exposure | 226,019 | € 0 | ||
Derivatives not designated as hedges [Member] | ||||
Derivative [Line Items] | ||||
Asset derivatives at fair value | 22,351 | 26,807 | ||
Liability derivatives at fair value | (16,203) | (36,486) | ||
Fair value | 6,148 | (9,679) | ||
Derivatives not designated as hedges [Member] | Foreign exchange forward contracts | ||||
Derivative [Line Items] | ||||
Asset derivatives at fair value | 17,820 | 8,559 | ||
Liability derivatives at fair value | (1,209) | (20,328) | ||
Fair value | 16,611 | (11,769) | ||
Net notional exposure | 2,231,871 | 2,862,927 | ||
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 | 2,824 | 11,985 | ||
Liability derivatives at fair value | (2,568) | 0 | ||
Fair value | 256 | 11,985 | ||
Net notional exposure | [2] | 59,257 | 78,879 | |
Derivatives not designated as hedges [Member] | Total return swaps | ||||
Derivative [Line Items] | ||||
Asset derivatives at fair value | 1,697 | 2,505 | ||
Liability derivatives at fair value | (3,232) | (3,269) | ||
Fair value | (1,535) | (764) | ||
Net notional exposure | 41,980 | 42,147 | ||
Derivatives not designated as hedges [Member] | Interest rate swaps | ||||
Derivative [Line Items] | ||||
Asset derivatives at fair value | 10 | 0 | ||
Liability derivatives at fair value | (9,194) | (12,298) | ||
Fair value | (9,184) | (12,298) | ||
Net notional exposure | [3] | $ 1,840 | 192,215 | |
Derivatives not designated as hedges [Member] | TBAs | ||||
Derivative [Line Items] | ||||
Asset derivatives at fair value | 391 | |||
Liability derivatives at fair value | (591) | |||
Fair value | (200) | |||
Net notional exposure | $ 501,405 | |||
[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 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) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in fair value of designated cash flow hedges | $ 1,877 | $ 0 | $ 0 |
Derivatives not designated as hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in income | 51,038 | (47,711) | (35,985) |
Derivatives not designated as hedges [Member] | Included in net foreign exchange gains and losses [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in income | 45,143 | (41,776) | (50,854) |
Derivatives not designated as hedges [Member] | Included in net realized and unrealized investment gains and losses [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in income | 5,895 | (5,935) | 14,869 |
Derivatives not designated as hedges [Member] | 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 | 45,143 | (41,776) | (53,437) |
Derivatives not designated as hedges [Member] | 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 | 0 | 2,583 |
Derivatives not designated as hedges [Member] | 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 | 11,043 | (11,683) | (5,195) |
Derivatives not designated as hedges [Member] | 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 | 6,134 | (563) | 3,813 |
Derivatives not designated as hedges [Member] | 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 | 0 | 464 | (1,096) |
Derivatives not designated as hedges [Member] | 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 | 2,332 | 1,105 | 10,981 |
Derivatives not designated as hedges [Member] | 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 | (13,614) | 4,742 | 6,366 |
Unrealized gain on investments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in fair value of designated cash flow hedges | $ 1,877 | $ 0 | $ 0 |
Derivatives - Offsetting (Detai
Derivatives - Offsetting (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Offsetting (Details) [Abstract] | |||
Gross amounts of recognized, asset | [1] | $ 22,351 | $ 26,807 |
Gross amount offset in the balance sheet | 0 | 0 | |
Net amounts of asset/ liabilities presented in the balance sheet, asset | 22,351 | 26,807 | |
Gross amounts not offset in the balance sheet, financial instruments, asset | (544) | (1,142) | |
Gross amounts not offset in the balance sheet, cash collateral received/ pledged | (24,704) | (43,943) | |
Net amount, asset | (2,897) | (18,278) | |
Gross amounts of recognized, liability | [1] | (18,667) | (36,486) |
Gross amount offset in the balance sheet | 0 | 0 | |
Net amounts presented in the balance sheet, liability | (18,667) | (36,486) | |
Gross amounts not offset in the balance sheet, financial instruments, liability | 544 | 1,142 | |
Gross amounts not offset in the balance sheet, cash collateral received | 5,221 | 25,389 | |
Net amount, liability | $ (12,902) | $ (9,955) | |
[1] | Amounts include all derivative instruments, irrespective of whether there is a legally enforceable master netting arrangement in place. |
- Rollforward (Details)
- Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Goodwill And Intangible Assets [Line Items] | |||||
Balance at January 1 | $ 456,380 | $ 456,380 | |||
Goodwill acquired during the year | 0 | 0 | |||
Balance at December 31 | 456,380 | 456,380 | $ 456,380 | ||
Balance at January 1 | 160,234 | ||||
Amortization of intangible assets | (35,473) | (24,646) | (25,919) | ||
Balance at December 31 | 128,899 | 160,234 | |||
Definite Lived Intangible Assets [Member] | |||||
Goodwill And Intangible Assets [Line Items] | |||||
Balance at January 1 | 150,679 | 99,742 | |||
Finite-lived Intangible Assets Acquired | 4,138 | [1] | 75,583 | [2] | |
Amortization of intangible assets | (35,473) | (24,646) | |||
Balance at December 31 | 119,344 | 150,679 | 99,742 | ||
Indefinite Lived Intangible Assets [Member] | |||||
Goodwill And Intangible Assets [Line Items] | |||||
Balance at January 1 | 9,555 | 7,350 | |||
Indefinite-lived Intangible Assets Acquired | 0 | 2,205 | [2] | ||
Balance at December 31 | 9,555 | 9,555 | 7,350 | ||
Total intangible assets [Member] | |||||
Goodwill And Intangible Assets [Line Items] | |||||
Balance at January 1 | 160,234 | 107,092 | |||
Finite and Indefinite Lived Intangible Assets Acquired | 4,138 | [1] | 77,788 | [2] | |
Amortization of intangible assets | (35,473) | (24,646) | |||
Balance at December 31 | $ 128,899 | $ 160,234 | $ 107,092 | ||
[1] | In June 2018, the Company completed the acquisition for 100% of the assets in Claim Analytics Inc., a Canadian based provider of predictive analytics solutions for the insurance industry. In relation to this acquisition, the Company recorded intangible assets related to customer relationships of $4 million. | ||||
[2] | April 2017, the Company completed the acquisition of Aurigen. The Company recorded 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 $1 million was included in Other income in the Consolidated Statement of Operations for the year ended December 31, 2017 representing the excess of fair value of the net assets acquired over the purchase price. |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Gross Values And Amortization Of Intangible Assets - (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill And Intangible Assets [Line Items] | |||
Gross intangible assets excluding goodwill | $ 392,043 | $ 387,905 | |
Accumulated amortization | 263,144 | 227,671 | |
Intangible assets | 128,899 | 160,234 | |
Definite Lived Intangible Assets [Member] | |||
Goodwill And Intangible Assets [Line Items] | |||
Gross intangible assets excluding goodwill | 382,488 | 378,350 | |
Accumulated amortization | 263,144 | 227,671 | |
Intangible assets | 119,344 | 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 | 191,196 | 168,581 | |
Intangible assets | 0 | 22,615 | |
Definite Lived Intangible Assets [Member] | Renewal Rights [Member] | |||
Goodwill And Intangible Assets [Line Items] | |||
Gross intangible assets excluding goodwill | 48,163 | 48,163 | |
Accumulated amortization | 31,828 | 27,909 | |
Intangible assets | 16,335 | 20,254 | |
Definite Lived Intangible Assets [Member] | Customer relationships | |||
Goodwill And Intangible Assets [Line Items] | |||
Gross intangible assets excluding goodwill | 67,546 | 63,408 | |
Accumulated amortization | 36,188 | 29,353 | |
Intangible assets | 31,358 | 34,055 | |
Definite Lived Intangible Assets [Member] | Life VOBA | |||
Goodwill And Intangible Assets [Line Items] | |||
Gross intangible assets excluding goodwill | 75,583 | 75,583 | |
Accumulated amortization | 3,932 | 1,828 | |
Intangible assets | $ 71,651 | 73,755 | |
Estimated useful life of intangible assets | 100 years | ||
Indefinite Lived Intangible Assets [Member] | |||
Goodwill And Intangible Assets [Line Items] | |||
Intangible assets | $ 9,555 | 9,555 | $ 7,350 |
Indefinite Lived Intangible Assets [Member] | Insurance licenses | |||
Goodwill And Intangible Assets [Line Items] | |||
Gross intangible assets excluding goodwill | 9,555 | 9,555 | |
Intangible assets | $ 9,555 | $ 9,555 | |
Minimum | Definite Lived Intangible Assets [Member] | Renewal Rights [Member] | |||
Goodwill And Intangible Assets [Line Items] | |||
Estimated useful life of intangible assets | 10 years | ||
Minimum | Definite Lived Intangible Assets [Member] | Customer relationships | |||
Goodwill And Intangible Assets [Line Items] | |||
Estimated useful life of intangible assets | 10 years | ||
Maximum | Definite Lived Intangible Assets [Member] | Renewal Rights [Member] | |||
Goodwill And Intangible Assets [Line Items] | |||
Estimated useful life of intangible assets | 13 years | ||
Maximum | Definite Lived Intangible Assets [Member] | Customer relationships | |||
Goodwill And Intangible Assets [Line Items] | |||
Estimated useful life of intangible assets | 13 years |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Allocation to Segments (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Goodwill Allocation to Segments [Line Items] | |||
Goodwill | $ 456,380 | $ 456,380 | $ 456,380 |
P&C | |||
Goodwill Allocation to Segments [Line Items] | |||
Goodwill | 242,376 | 241,530 | |
Specialty | |||
Goodwill Allocation to Segments [Line Items] | |||
Goodwill | 196,047 | 196,047 | |
Life and Health | |||
Goodwill Allocation to Segments [Line Items] | |||
Goodwill | $ 17,957 | $ 18,803 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Future Amortization of Finite Intangibles (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2019 | $ 11,350 |
2020 | 9,941 |
2021 | 8,820 |
2022 | 8,912 |
2023 | 7,924 |
Total | $ 46,947 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Narrative Disclosures (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Jun. 06, 2018 | Apr. 03, 2017 | |
Claims Analytics Inc. | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Percentage of voting interests acquired | 100.00% | |||
Claims Analytics Inc. | Customer relationships | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Finite-lived Intangible Assets Acquired | $ 4 | |||
Aurigen Capital Limited | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Percentage of voting interests acquired | 100.00% | |||
Business Combination, Bargain Purchase, Gain Recognized, Amount | $ 1 | |||
Aurigen Capital Limited | Life VOBA | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Finite-lived Intangible Assets Acquired | 76 | |||
Aurigen Capital Limited | Insurance licenses | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Indefinite-lived Intangible Assets Acquired | $ 2 |
Non-life and Life and Health _3
Non-life and Life and Health Reserves - Components of Non-life reserves (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Components of non-life reserves [Line Items] | |||||
Non-life reserves | [1] | $ 9,895,376 | $ 10,102,172 | ||
Non Life | |||||
Components of non-life reserves [Line Items] | |||||
Case reserves | 4,217,068 | 4,180,554 | |||
ACRs | 174,713 | 176,369 | |||
IBNR reserves | 5,503,595 | 5,745,249 | |||
Non-life reserves | $ 9,895,376 | $ 10,102,172 | $ 9,247,200 | $ 9,317,003 | |
[1] | Effective July 1, 2018, the executive management responsibility and reporting for U.S. health business was reallocated from the Life and Health segment to the P&C segment as part of an internal organizational change. As a result, reserves of $392 million as at December 31, 2017 have been reclassified from Life and Health reserves to Non-Life reserves to conform to current presentation. |
Non-life and Life and Health _4
Non-life and Life and Health Reserves - Non Life loss and loss expenses rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Gross liability at beginning of year | [1] | $ 10,102,172 | ||
Reinsurance recoverable at beginning of year | 828,807 | |||
Reinsurance recoverable at end of year | 940,291 | $ 828,807 | ||
Gross liability at end of year | [1] | 9,895,376 | 10,102,172 | |
Non Life | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Gross liability at beginning of year | 10,102,172 | 9,247,200 | $ 9,317,003 | |
Reinsurance recoverable at beginning of year | 719,998 | 295,388 | 228,961 | |
Net liability at beginning of year | 9,382,174 | 8,951,812 | 9,088,042 | |
Current year | 3,417,366 | 3,453,725 | 3,243,506 | |
Prior years | (248,719) | (448,158) | (676,574) | |
Net incurred losses | 3,168,647 | 3,005,567 | 2,566,932 | |
Change in Paris Re Reserve Agreement | (397,493) | (3,481) | 5,518 | |
Current year | (336,584) | (472,291) | (391,528) | |
Prior years | (2,585,403) | (2,506,760) | (2,096,945) | |
Total Non-life Claims Paid | (2,921,987) | (2,979,051) | (2,488,473) | |
Effects of foreign exchange rate changes | (186,911) | 407,327 | (220,207) | |
Net liability at end of year | 9,044,430 | 9,382,174 | 8,951,812 | |
Reinsurance recoverable at end of year | 850,946 | 719,998 | 295,388 | |
Gross liability at end of year | $ 9,895,376 | $ 10,102,172 | $ 9,247,200 | |
[1] | Effective July 1, 2018, the executive management responsibility and reporting for U.S. health business was reallocated from the Life and Health segment to the P&C segment as part of an internal organizational change. As a result, reserves of $392 million as at December 31, 2017 have been reclassified from Life and Health reserves to Non-Life reserves to conform to current presentation. |
Non-life and Life and Health _5
Non-life and Life and Health Reserves - Guaranteed reserves, asbestos, and environmental claims and narrative (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Guaranteed Reserves | $ 426 | |
Reserve Agreement Commutation Gain | $ 29 | |
Liability for Asbestos and Environmental Claims, Net | 47 | 134 |
Liability for Asbestos and Environmental Claims, Gross | $ 54 | 142 |
Asbestos Liabilities Of Paris Re | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Liability for Asbestos and Environmental Claims, Gross | $ 96 |
Non-life and Life and Health _6
Non-life and Life and Health Reserves - Life and health reserve rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Loss and Loss Expenses Including Life Policy Benefits [Line Items] | |||
Reinsurance recoverable at beginning of year | $ 828,807 | ||
Reinsurance recoverable at end of year | 940,291 | $ 828,807 | |
Life and Health | |||
Reconciliation of Loss and Loss Expenses Including Life Policy Benefits [Line Items] | |||
Gross liability at beginning of period | 2,098,759 | 1,722,330 | $ 1,799,643 |
Reinsurance recoverable at beginning of year | 9,287 | 2,726 | 3,046 |
Net liability at beginning of period | 2,089,472 | 1,719,604 | 1,796,597 |
Liability acquired related to the acquisition of Aurigen | 0 | 67,916 | 0 |
Net incurred losses | 1,024,608 | 835,415 | 681,159 |
Net losses paid | (818,916) | (714,151) | (618,599) |
Effects of foreign exchange rate changes | (108,913) | 180,688 | (139,553) |
Gross liability at end of period | 2,198,080 | 2,098,759 | 1,722,330 |
Reinsurance recoverable at end of year | 11,829 | 9,287 | 2,726 |
Net liability at end of period | $ 2,186,251 | $ 2,089,472 | $ 1,719,604 |
Minimum | |||
Reconciliation of Loss and Loss Expenses Including Life Policy Benefits [Line Items] | |||
Interest rate assumption related to policy benefits for life and annuity contracts | 0.00% | 0.00% | |
Maximum | |||
Reconciliation of Loss and Loss Expenses Including Life Policy Benefits [Line Items] | |||
Interest rate assumption related to policy benefits for life and annuity contracts | 7.00% | 7.00% |
Non-life and Life and Health _7
Non-life and Life and Health Reserves - Loss and loss expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Losses and Loss Expenses by Segment [Line Items] | |||
Losses and loss expenses | $ 4,193,255 | $ 3,840,982 | $ 3,248,091 |
Non Life | |||
Losses and Loss Expenses by Segment [Line Items] | |||
Net incurred losses | 3,168,647 | 3,005,567 | 2,566,932 |
Life and Health | |||
Losses and Loss Expenses by Segment [Line Items] | |||
Net incurred losses | $ 1,024,608 | $ 835,415 | $ 681,159 |
Non-life and Life and Health _8
Non-life and Life and Health Reserves - Claims development (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property | |||||||
Claims Development [Line Items] | |||||||
Net incurred losses and loss expenses | $ 4,558,604 | ||||||
Net paid losses and loss expenses | 3,237,831 | ||||||
Net reserves for Accident Years and exposures included in the triangles | 1,320,773 | ||||||
All outstanding liabilities before Accident Year 2012, net of reinsurance | 105,071 | ||||||
Net liability at end of year | 1,425,844 | ||||||
Total of IBNR plus expected development on reported claims | $ 669,526 | ||||||
Year One | 18.00% | ||||||
Year Two | 49.00% | ||||||
Year Three | 16.00% | ||||||
Year Four | 6.00% | ||||||
Year Five | 3.00% | ||||||
Year Six | 1.00% | ||||||
Year Seven | 1.00% | ||||||
Property | 2012 | |||||||
Claims Development [Line Items] | |||||||
Net incurred losses and loss expenses | $ 538,271 | $ 550,104 | $ 550,347 | $ 565,743 | $ 582,063 | $ 660,159 | $ 660,871 |
Net paid losses and loss expenses | 507,376 | 504,333 | 495,215 | 483,969 | 449,848 | 356,469 | 99,815 |
Total of IBNR plus expected development on reported claims | 5,530 | ||||||
Property | 2013 | |||||||
Claims Development [Line Items] | |||||||
Net incurred losses and loss expenses | 514,596 | 524,968 | 529,249 | 544,485 | 576,448 | 679,013 | |
Net paid losses and loss expenses | 493,538 | 490,469 | 472,185 | 437,800 | 337,052 | 88,603 | |
Total of IBNR plus expected development on reported claims | 1,160 | ||||||
Property | 2014 | |||||||
Claims Development [Line Items] | |||||||
Net incurred losses and loss expenses | 444,283 | 447,732 | 450,264 | 471,603 | 515,968 | ||
Net paid losses and loss expenses | 423,758 | 414,068 | 387,815 | 323,623 | 93,134 | ||
Total of IBNR plus expected development on reported claims | 2,067 | ||||||
Property | 2015 | |||||||
Claims Development [Line Items] | |||||||
Net incurred losses and loss expenses | 515,396 | 523,012 | 548,168 | 590,211 | |||
Net paid losses and loss expenses | 471,242 | 442,735 | 354,313 | 95,282 | |||
Total of IBNR plus expected development on reported claims | 7,738 | ||||||
Property | 2016 | |||||||
Claims Development [Line Items] | |||||||
Net incurred losses and loss expenses | 632,146 | 678,612 | 721,172 | ||||
Net paid losses and loss expenses | 536,791 | 455,747 | 134,960 | ||||
Total of IBNR plus expected development on reported claims | 14,941 | ||||||
Property | 2017 | |||||||
Claims Development [Line Items] | |||||||
Net incurred losses and loss expenses | 1,063,309 | 1,027,772 | |||||
Net paid losses and loss expenses | 728,508 | 223,180 | |||||
Total of IBNR plus expected development on reported claims | 92,550 | ||||||
Property | 2018 | |||||||
Claims Development [Line Items] | |||||||
Net incurred losses and loss expenses | 850,603 | ||||||
Net paid losses and loss expenses | 76,618 | ||||||
Total of IBNR plus expected development on reported claims | 545,540 | ||||||
Casualty | |||||||
Claims Development [Line Items] | |||||||
Net incurred losses and loss expenses | 5,535,685 | ||||||
Net paid losses and loss expenses | 2,304,940 | ||||||
Net reserves for Accident Years and exposures included in the triangles | 3,230,745 | ||||||
All outstanding liabilities before Accident Year 2012, net of reinsurance | 1,436,281 | ||||||
Net liability at end of year | 4,667,026 | ||||||
Total of IBNR plus expected development on reported claims | $ 2,188,945 | ||||||
Year One | 7.00% | ||||||
Year Two | 15.00% | ||||||
Year Three | 13.00% | ||||||
Year Four | 12.00% | ||||||
Year Five | 10.00% | ||||||
Year Six | 9.00% | ||||||
Year Seven | 5.00% | ||||||
Casualty | 2012 | |||||||
Claims Development [Line Items] | |||||||
Net incurred losses and loss expenses | $ 594,889 | 599,405 | 591,092 | 608,535 | 648,784 | 676,404 | 690,205 |
Net paid losses and loss expenses | 423,467 | 392,529 | 334,143 | 278,087 | 205,164 | 135,448 | 51,528 |
Total of IBNR plus expected development on reported claims | 79,586 | ||||||
Casualty | 2013 | |||||||
Claims Development [Line Items] | |||||||
Net incurred losses and loss expenses | 721,474 | 725,012 | 729,478 | 747,464 | 796,471 | 799,716 | |
Net paid losses and loss expenses | 479,692 | 418,193 | 347,899 | 266,362 | 158,653 | 50,403 | |
Total of IBNR plus expected development on reported claims | 136,016 | ||||||
Casualty | 2014 | |||||||
Claims Development [Line Items] | |||||||
Net incurred losses and loss expenses | 876,455 | 860,154 | 854,935 | 874,854 | 899,068 | ||
Net paid losses and loss expenses | 499,040 | 411,596 | 311,431 | 207,906 | 70,987 | ||
Total of IBNR plus expected development on reported claims | 194,954 | ||||||
Casualty | 2015 | |||||||
Claims Development [Line Items] | |||||||
Net incurred losses and loss expenses | 856,355 | 814,108 | 838,361 | 897,153 | |||
Net paid losses and loss expenses | 397,022 | 299,015 | 186,585 | 66,675 | |||
Total of IBNR plus expected development on reported claims | 262,967 | ||||||
Casualty | 2016 | |||||||
Claims Development [Line Items] | |||||||
Net incurred losses and loss expenses | 819,511 | 798,784 | 847,086 | ||||
Net paid losses and loss expenses | 265,586 | 165,828 | 36,622 | ||||
Total of IBNR plus expected development on reported claims | 315,251 | ||||||
Casualty | 2017 | |||||||
Claims Development [Line Items] | |||||||
Net incurred losses and loss expenses | 727,301 | 758,715 | |||||
Net paid losses and loss expenses | 178,201 | 60,845 | |||||
Total of IBNR plus expected development on reported claims | 399,584 | ||||||
Casualty | 2018 | |||||||
Claims Development [Line Items] | |||||||
Net incurred losses and loss expenses | 939,700 | ||||||
Net paid losses and loss expenses | 61,932 | ||||||
Total of IBNR plus expected development on reported claims | 800,587 | ||||||
Specialty | |||||||
Claims Development [Line Items] | |||||||
Net incurred losses and loss expenses | 8,032,667 | ||||||
Net paid losses and loss expenses | 5,658,075 | ||||||
Net reserves for Accident Years and exposures included in the triangles | 2,374,592 | ||||||
All outstanding liabilities before Accident Year 2012, net of reinsurance | 95,148 | ||||||
Net liability at end of year | 2,469,740 | ||||||
Total of IBNR plus expected development on reported claims | $ 1,529,581 | ||||||
Year One | 11.00% | ||||||
Year Two | 50.00% | ||||||
Year Three | 15.00% | ||||||
Year Four | 7.00% | ||||||
Year Five | 4.00% | ||||||
Year Six | 2.00% | ||||||
Year Seven | 2.00% | ||||||
Specialty | 2012 | |||||||
Claims Development [Line Items] | |||||||
Net incurred losses and loss expenses | $ 1,030,332 | 1,037,358 | 1,013,805 | 1,013,048 | 1,062,171 | 1,111,986 | 1,286,134 |
Net paid losses and loss expenses | 916,193 | 900,714 | 877,381 | 841,265 | 781,439 | 560,593 | 131,719 |
Total of IBNR plus expected development on reported claims | 26,988 | ||||||
Specialty | 2013 | |||||||
Claims Development [Line Items] | |||||||
Net incurred losses and loss expenses | 1,171,046 | 1,184,607 | 1,209,201 | 1,229,233 | 1,324,449 | 1,392,635 | |
Net paid losses and loss expenses | 1,095,081 | 1,066,590 | 1,025,071 | 939,947 | 797,203 | 103,282 | |
Total of IBNR plus expected development on reported claims | 25,345 | ||||||
Specialty | 2014 | |||||||
Claims Development [Line Items] | |||||||
Net incurred losses and loss expenses | 1,160,990 | 1,161,579 | 1,196,380 | 1,266,038 | 1,414,611 | ||
Net paid losses and loss expenses | 1,042,058 | 997,867 | 915,695 | 780,259 | 139,945 | ||
Total of IBNR plus expected development on reported claims | 39,663 | ||||||
Specialty | 2015 | |||||||
Claims Development [Line Items] | |||||||
Net incurred losses and loss expenses | 1,131,221 | 1,150,497 | 1,206,678 | 1,395,399 | |||
Net paid losses and loss expenses | 967,961 | 873,992 | 676,121 | 140,120 | |||
Total of IBNR plus expected development on reported claims | 63,457 | ||||||
Specialty | 2016 | |||||||
Claims Development [Line Items] | |||||||
Net incurred losses and loss expenses | 1,163,173 | 1,196,246 | 1,339,528 | ||||
Net paid losses and loss expenses | 919,675 | 745,098 | 153,100 | ||||
Total of IBNR plus expected development on reported claims | 132,546 | ||||||
Specialty | 2017 | |||||||
Claims Development [Line Items] | |||||||
Net incurred losses and loss expenses | 1,143,553 | 1,185,023 | |||||
Net paid losses and loss expenses | 596,420 | 102,301 | |||||
Total of IBNR plus expected development on reported claims | 337,297 | ||||||
Specialty | 2018 | |||||||
Claims Development [Line Items] | |||||||
Net incurred losses and loss expenses | 1,232,352 | ||||||
Net paid losses and loss expenses | 120,687 | ||||||
Total of IBNR plus expected development on reported claims | 904,285 | ||||||
Non Life | |||||||
Claims Development [Line Items] | |||||||
Net incurred losses and loss expenses | 18,126,956 | ||||||
Net paid losses and loss expenses | 11,200,846 | ||||||
Net reserves for Accident Years and exposures included in the triangles | 6,926,110 | ||||||
All outstanding liabilities before Accident Year 2012, net of reinsurance | 1,636,500 | ||||||
Net liability at end of year | 8,562,610 | ||||||
Total of IBNR plus expected development on reported claims | $ 4,388,052 | ||||||
Year One | 12.00% | ||||||
Year Two | 39.00% | ||||||
Year Three | 15.00% | ||||||
Year Four | 8.00% | ||||||
Year Five | 5.00% | ||||||
Year Six | 4.00% | ||||||
Year Seven | 2.00% | ||||||
Non Life | 2012 | |||||||
Claims Development [Line Items] | |||||||
Net incurred losses and loss expenses | $ 2,163,492 | 2,186,867 | 2,155,244 | 2,187,326 | 2,293,018 | 2,448,549 | 2,637,210 |
Net paid losses and loss expenses | 1,847,036 | 1,797,576 | 1,706,739 | 1,603,321 | 1,436,451 | 1,052,510 | $ 283,062 |
Total of IBNR plus expected development on reported claims | 112,104 | ||||||
Non Life | 2013 | |||||||
Claims Development [Line Items] | |||||||
Net incurred losses and loss expenses | 2,407,116 | 2,434,587 | 2,467,928 | 2,521,182 | 2,697,368 | 2,871,364 | |
Net paid losses and loss expenses | 2,068,311 | 1,975,252 | 1,845,155 | 1,644,109 | 1,292,908 | $ 242,288 | |
Total of IBNR plus expected development on reported claims | 162,521 | ||||||
Non Life | 2014 | |||||||
Claims Development [Line Items] | |||||||
Net incurred losses and loss expenses | 2,481,728 | 2,469,465 | 2,501,579 | 2,612,495 | 2,829,647 | ||
Net paid losses and loss expenses | 1,964,856 | 1,823,531 | 1,614,941 | 1,311,788 | $ 304,066 | ||
Total of IBNR plus expected development on reported claims | 236,684 | ||||||
Non Life | 2015 | |||||||
Claims Development [Line Items] | |||||||
Net incurred losses and loss expenses | 2,502,972 | 2,487,617 | 2,593,207 | 2,882,763 | |||
Net paid losses and loss expenses | 1,836,225 | 1,615,742 | 1,217,019 | $ 302,077 | |||
Total of IBNR plus expected development on reported claims | 334,162 | ||||||
Non Life | 2016 | |||||||
Claims Development [Line Items] | |||||||
Net incurred losses and loss expenses | 2,614,830 | 2,673,642 | 2,907,786 | ||||
Net paid losses and loss expenses | 1,722,052 | 1,366,673 | $ 324,682 | ||||
Total of IBNR plus expected development on reported claims | 462,738 | ||||||
Non Life | 2017 | |||||||
Claims Development [Line Items] | |||||||
Net incurred losses and loss expenses | 2,934,163 | 2,971,510 | |||||
Net paid losses and loss expenses | 1,503,129 | $ 386,326 | |||||
Total of IBNR plus expected development on reported claims | 829,431 | ||||||
Non Life | 2018 | |||||||
Claims Development [Line Items] | |||||||
Net incurred losses and loss expenses | 3,022,655 | ||||||
Net paid losses and loss expenses | 259,237 | ||||||
Total of IBNR plus expected development on reported claims | $ 2,250,412 |
Non-life and Life and Health _9
Non-life and Life and Health Reserves - Reconciliation of claims development to liability (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Reinsurance recoverable on paid and unpaid losses | $ 940,291 | $ 828,807 | |||
Gross liability at end of year | [1] | 9,895,376 | 10,102,172 | ||
Property | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Total outstanding liability for unpaid claims | 1,425,844 | ||||
Reinsurance recoverable on paid and unpaid losses | 545,300 | ||||
Casualty | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Total outstanding liability for unpaid claims | 4,667,026 | ||||
Reinsurance recoverable on paid and unpaid losses | 63,161 | ||||
Specialty | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Total outstanding liability for unpaid claims | 2,469,740 | ||||
Reinsurance recoverable on paid and unpaid losses | 242,485 | ||||
Non Life | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Total outstanding liability for unpaid claims | 8,562,610 | ||||
Other liabilities | 481,820 | ||||
Net liability at end of year | 9,044,430 | 9,382,174 | $ 8,951,812 | $ 9,088,042 | |
Reinsurance recoverable on paid and unpaid losses | 850,946 | 719,998 | 295,388 | 228,961 | |
Gross liability at end of year | 9,895,376 | $ 10,102,172 | $ 9,247,200 | $ 9,317,003 | |
Non Life | Unallocated loss expenses | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Other liabilities | 148,700 | ||||
Non Life | US Health net reserves | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Other liabilities | [2] | 327,810 | |||
Non Life | Other | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Other liabilities | $ 5,310 | ||||
[1] | Effective July 1, 2018, the executive management responsibility and reporting for U.S. health business was reallocated from the Life and Health segment to the P&C segment as part of an internal organizational change. As a result, reserves of $392 million as at December 31, 2017 have been reclassified from Life and Health reserves to Non-Life reserves to conform to current presentation. | ||||
[2] | U.S. health business is not meaningful to include in the development tables as the estimated average duration of the health reserves is less than one year and substantially all claims are expected to be paid within two years, based on historical payout patterns. |
Reinsurance (Details)
Reinsurance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Premiums Written, Net [Abstract] | |||
Gross premiums written | $ 6,299,929 | $ 5,587,894 | $ 5,356,942 |
Ceded | 496,565 | 467,968 | 403,472 |
Net | 5,803,364 | 5,119,926 | 4,953,470 |
Premiums earned | |||
Assumed | 5,987,931 | 5,471,546 | 5,343,831 |
Ceded | 474,121 | 446,565 | 374,235 |
Net premiums earned | 5,513,810 | 5,024,981 | 4,969,596 |
Loss and Loss Expenses and Life Policy Benefits | |||
Assumed | 4,601,564 | 4,458,290 | 3,412,648 |
Ceded | 408,309 | 617,308 | 164,557 |
Net | 4,193,255 | 3,840,982 | $ 3,248,091 |
Allowance for reinsurance recoverable | |||
Allowance for uncollectible reinsurance recoverable [Line Items] | |||
Allowance for uncollectible reinsurance recoverable | $ 0 | $ 0 |
Debt - Summary of debt outstand
Debt - Summary of debt outstanding (Details) € in Thousands, $ in Thousands | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2017USD ($) | Nov. 07, 2006USD ($) |
Debt Instrument [Line Items] | ||||
Debt related to senior notes | $ 1,349,017 | $ 1,384,824 | ||
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 | 1,341,064 | 1,416,896 | ||
Carrying Value | ||||
Debt Instrument [Line Items] | ||||
Debt related to senior notes | 1,349,017 | 1,384,824 | ||
Senior Notes [Member] | Notes Issued By Partner Re Finance B LLC [Member] | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt instrument | 500,000 | |||
Senior Notes [Member] | Notes Issued By Partner Re Finance B LLC [Member] | Fair Value | Significant other observable inputs (Level 2) | ||||
Debt Instrument [Line Items] | ||||
Debt related to senior notes | 515,518 | 534,179 | ||
Senior Notes [Member] | Notes Issued By Partner Re Finance B LLC [Member] | Carrying Value | ||||
Debt Instrument [Line Items] | ||||
Debt related to senior notes | 500,000 | 500,000 | ||
2016 Euro Senior Notes | Notes Issued By Partner Re Ireland dac [Domain] | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt instrument | € | € 750,000 | |||
2016 Euro Senior Notes | Notes Issued By Partner Re Ireland dac [Domain] | Fair Value | Significant other observable inputs (Level 2) | ||||
Debt Instrument [Line Items] | ||||
Debt related to senior notes | 825,546 | 882,717 | ||
2016 Euro Senior Notes | Notes Issued By Partner Re Ireland dac [Domain] | Carrying Value | ||||
Debt Instrument [Line Items] | ||||
Debt related to senior notes | 849,017 | 884,824 | ||
Capital efficient notes | Notes Issued By Partner Re Finance II Inc [Member] | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt instrument | 63,384 | $ 250,000 | ||
Capital efficient notes | Notes Issued By Partner Re Finance II Inc [Member] | Fair Value | Significant other observable inputs (Level 2) | ||||
Debt Instrument [Line Items] | ||||
Debt related to capital efficient notes | 59,299 | 61,271 | ||
Capital efficient notes | Notes Issued By Partner Re Finance II Inc [Member] | Carrying Value | ||||
Debt Instrument [Line Items] | ||||
Debt related to capital efficient notes | $ 70,989 | $ 70,989 |
Debt - Narrative (Details)
Debt - Narrative (Details) € in Thousands, $ in Thousands | Nov. 01, 2016USD ($) | Sep. 15, 2016 | Mar. 13, 2009USD ($) | Nov. 30, 2016USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2018EUR (€) | Nov. 07, 2006USD ($) |
Debt Instrument [Line Items] | |||||||||
Loss on redemption of debt | $ 0 | $ 1,566 | $ 22,203 | ||||||
2016 Euro Senior Notes | Notes Issued By Partner Re Ireland dac [Domain] | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount of debt instrument | € | € 750,000 | ||||||||
Debt Issuance Percentage of Fair Value | 99.144% | ||||||||
Stated interest rate of debt instrument | 1.25% | 1.25% | |||||||
Maturity date | Sep. 15, 2026 | ||||||||
Payment frequency | annually | ||||||||
Date of first required interest payment | Sep. 15, 2017 | ||||||||
Senior Notes [Member] | 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% | ||||||||
Maturity date | Nov. 1, 2016 | ||||||||
Loss on redemption of debt | $ 22,000 | ||||||||
Consideration Paid On Extinguishment Of Debt | $ 272,000 | ||||||||
Senior Notes [Member] | 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% | |||||||
Payment frequency | semi-annually | ||||||||
Senior Notes [Member] | 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 | ||||||||
Capital efficient notes | Notes Issued By Partner Re Finance II Inc [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount of debt instrument | $ 63,384 | $ 250,000 | |||||||
Amount of debt extinguished | $ 187,000 | ||||||||
Maturity date range start | Dec. 1, 2016 | ||||||||
Capital efficient notes | Notes Issued By Partner Re Finance II Inc [Member] | June 1, 2007 - December 1, 2016 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate of debt instrument | 6.44% | 6.44% | |||||||
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] | |||||||||
Payment frequency | quarterly | ||||||||
Reference rate for variable rate interest payments | 3-month LIBOR | ||||||||
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 | ||||||||
Carrying amount at balance sheet date | $ 71,000 | ||||||||
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 To Partner Re Finance II Inc [Member] | June 1, 2007 - December 1, 2016 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate of debt instrument | 6.44% | 6.44% | |||||||
Payment frequency | semi-annually | ||||||||
Capital efficient notes | Notes Issued To Partner Re Finance II Inc [Member] | December 1, 2016 - December 1, 2066 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Payment frequency | quarterly | ||||||||
Reference rate for variable rate interest payments | 3-month LIBOR | ||||||||
Interest rate in excess of LIBOR | 2.325% | ||||||||
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 ($) | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 18, 2016 |
Authorized Shares [Abstract] | |||
Authorized Share Capital Value | $ 200,000,000 | $ 200,000,000 | |
Common Shares [Abstract] | |||
Percentage ownership | 99.70% | 99.70% | 100.00% |
Common shares, shares issued | 100,000,000 | 100,000,000 | 1 |
Common shares, par value | $ 0.00 | $ 0.00 | $ 1 |
Total share capital | $ 1 | $ 1 |
Shareholders' Equity - Redeemab
Shareholders' Equity - Redeemable preferred shares (Details) - USD ($) $ / shares in Units, $ in Thousands | May 01, 2016 | Mar. 18, 2016 | Dec. 31, 2018 | 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 | $ 23,600 | ||||
Preferred shares, aggregate liquidation value | 704,227 | 704,227 | $ 150,000 | ||||
Loss on redemption of preferred shares | $ 0 | $ 0 | $ 4,908 | ||||
Preferred Stock, Redemption Price Per Share | $ 25 | $ 25 | $ 25 | ||||
Restriction on common dividends | 67.00% | 67.00% | |||||
Series D 6.5% cumulative | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock exchanged | 6,415,264 | ||||||
Series E 7.25% cumulative | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock exchanged | 11,753,798 | ||||||
Series F 5.875% non-cumulative | |||||||
Class of Stock [Line Items] | |||||||
Preferred shares, shares outstanding | 2,679,426 | 2,679,426 | |||||
Annual dividend rate | 5.875% | 5.875% | |||||
Underwriting discounts and commissions | [1] | $ 2,300 | $ 2,300 | ||||
Preferred shares, aggregate liquidation value | $ 67,000 | $ 67,000 | |||||
Liquidation preference per share | $ 25 | $ 25 | |||||
Preferred stock exchanged | 7,320,574 | ||||||
Series G 6.5% cumulative | |||||||
Class of Stock [Line Items] | |||||||
Preferred shares, shares outstanding | 6,415,264 | 6,415,264 | |||||
Annual dividend rate | 6.50% | 6.50% | |||||
Underwriting discounts and commissions | [1] | $ 5,400 | $ 5,400 | ||||
Preferred shares, aggregate liquidation value | $ 160,400 | $ 160,400 | |||||
Liquidation preference per share | $ 25 | $ 25 | |||||
Series H 7.25% cumulative | |||||||
Class of Stock [Line Items] | |||||||
Preferred shares, shares outstanding | 11,753,798 | 11,753,798 | |||||
Annual dividend rate | 7.25% | 7.25% | |||||
Underwriting discounts and commissions | [1] | $ 9,500 | $ 9,500 | ||||
Preferred shares, aggregate liquidation value | $ 293,800 | $ 293,800 | |||||
Liquidation preference per share | $ 25 | $ 25 | |||||
Series I 5.875% non-cumulative | |||||||
Class of Stock [Line Items] | |||||||
Preferred shares, shares outstanding | 7,320,574 | 7,320,574 | |||||
Annual dividend rate | 5.875% | 5.875% | |||||
Underwriting discounts and commissions | [1] | $ 6,400 | $ 6,400 | ||||
Preferred shares, aggregate liquidation value | $ 183,000 | $ 183,000 | |||||
Liquidation preference per share | $ 25 | $ 25 | |||||
[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. |
Dividend Restrictions and Sta_3
Dividend Restrictions and Statutory Requirements (Details) $ in Millions, $ in Millions | Mar. 18, 2016 | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2018SGD ($) |
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 | $ 921 | ||||
Statutory net income | 138 | $ (69) | $ 531 | ||
Required statutory capital and surplus | 2,260 | 1,767 | |||
Actual statutory capital and surplus | 4,274 | 3,683 | |||
PartnerRe Europe [Member] | |||||
Statutory Accounting Practices [Line Items] | |||||
Statutory net income | 1 | 153 | 61 | ||
Required statutory capital and surplus | 1,488 | 1,639 | |||
Actual statutory capital and surplus | $ 2,169 | 2,215 | |||
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 | $ (197) | 24 | 72 | ||
Required statutory capital and surplus | 732 | 662 | |||
Actual statutory capital and surplus | $ 1,094 | 1,336 | |||
PartnerRe Asia | |||||
Statutory Accounting Practices [Line Items] | |||||
Percent of enhanced capital requirement | 120.00% | 120.00% | |||
Statutory net income | $ (40) | 18 | $ 43 | ||
Required statutory capital and surplus | 56 | 57 | $ 25 | ||
Actual statutory capital and surplus | $ 208 | $ 246 |
Taxation - Components of income
Taxation - Components of income tax expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current income tax expense [abstract] | |||
Current income tax (benefit) expense | $ 27,015 | $ 66,394 | $ 29,711 |
Deferred income tax expense (benefit) [abstract] | |||
Deferred income tax expense (benefit) | (37,062) | (53,164) | 9,943 |
Unrecognized tax expense (benefit) [abstract] | |||
Unrecognized tax (benefit) expense | 1,113 | (2,872) | (13,731) |
Income Tax Expense, Continuing Operations, by Jurisdiction [Abstract] | |||
Total income tax (benefit) expense | (8,934) | 10,358 | 25,923 |
Income Before Taxes [Abstract] | |||
Income before taxes | $ (94,928) | $ 274,379 | $ 473,231 |
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 | 14.30% | 11.40% | 6.90% |
Impact of foreign exchange (losses) gains | (4.20%) | (3.20%) | 2.20% |
Unrecognized tax (benefit) expense | (1.20%) | (1.00%) | (2.90%) |
Tax-exempt income and expenses not deductible | 7.30% | (5.20%) | (3.20%) |
Foreign branch tax | (4.10%) | (24.60%) | 0.30% |
Valuation allowance | (12.30%) | 24.80% | 0.30% |
Outside basis difference in subsidiary | 6.70% | 0.00% | 0.00% |
Other | 2.90% | 1.60% | 1.90% |
Actual tax rate | 9.40% | 3.80% | 5.50% |
US | |||
Current income tax expense [abstract] | |||
Current income tax (benefit) expense | $ (6,872) | $ (10,031) | $ 2,798 |
Deferred income tax expense (benefit) [abstract] | |||
Deferred income tax expense (benefit) | (40,318) | 5,538 | 10,070 |
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 | (47,190) | (4,493) | 12,868 |
Non-US | |||
Current income tax expense [abstract] | |||
Current income tax (benefit) expense | 33,887 | 76,425 | 26,913 |
Deferred income tax expense (benefit) [abstract] | |||
Deferred income tax expense (benefit) | 3,256 | (58,702) | (127) |
Unrecognized tax expense (benefit) [abstract] | |||
Unrecognized tax (benefit) expense | 1,113 | (2,872) | (13,731) |
Income Tax Expense, Continuing Operations, by Jurisdiction [Abstract] | |||
Total income tax (benefit) expense | 38,256 | 14,851 | 13,055 |
Domestic (Bermuda) | |||
Income Before Taxes [Abstract] | |||
Income before taxes | 33,759 | 82,219 | 334,559 |
Foreign | |||
Income Before Taxes [Abstract] | |||
Income before taxes | $ (128,687) | $ 192,160 | $ 138,672 |
Taxation - Components of Tax As
Taxation - Components of Tax Assets and Tax Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets | ||
Discounting of loss reserves and adjustment to life policy reserves | $ 27,103 | $ 34,806 |
Foreign tax credit carryforwards | 161,177 | 163,134 |
Tax loss carryforwards | 49,721 | 36,405 |
Unearned premiums | 26,071 | 14,425 |
Other deferred tax assets | 47,877 | 31,566 |
Deferred tax assets before valuation allowance | 311,949 | 280,336 |
Valuation allowance | (189,090) | (185,615) |
Deferred tax assets | 122,859 | 94,721 |
Deferred tax liabilities | ||
Deferred acquisition costs | 45,558 | 29,204 |
Goodwill and other intangibles | 65,114 | 70,674 |
Equalization reserves | 16,606 | 27,252 |
Unrealized appreciation and timing differences on investments | 5,012 | 13,361 |
Unrealized appreciation and timing differences on foreign exchange revaluations | 21,117 | 13,413 |
Other deferred tax liabilities | 6,635 | 8,554 |
Deferred tax liabilities | 160,042 | 162,458 |
Net deferred tax liabilities | (37,183) | (67,737) |
Components Of Net Tax Assets And Liabilities [Abstract] | ||
Net tax assets | 157,690 | 133,169 |
Net tax liabilities | (101,525) | (154,947) |
Net tax assets (liabilities) | 56,165 | (21,778) |
Net Tax Liabilities By Type [Abstract] | ||
Net current tax assets | 102,091 | 53,900 |
Net deferred tax liabilities | (37,183) | (67,737) |
Net unrecognized tax benefit | (8,743) | (7,941) |
Net tax assets (liabilities) | $ 56,165 | $ (21,778) |
Taxation - Income Tax Uncertai
Taxation - Income Tax Uncertainties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Contingency [Line Items] | |||
January 1 | $ 7,941 | $ 9,690 | $ 23,838 |
Changes in tax positions taken during a prior period - increase | 764 | 1,181 | |
Changes in tax positions taken during a prior period - decrease | (14,301) | ||
Tax positions taken during the current period - increase | 346 | 595 | 693 |
Change as a result of a lapse in the statute of limitations | 0 | (4,649) | (123) |
Impact of the change in foreign currency exchange rates - increase | 1,124 | ||
Impact of the change in foreign currency exchange rates - decrease | (308) | (417) | |
December 31 | 8,743 | 7,941 | 9,690 |
Unrecognized tax benefits that, if recognized, would impact the effective tax rate | |||
Income Tax Contingency [Line Items] | |||
January 1 | 6,460 | 8,722 | 22,255 |
Changes in tax positions taken during a prior period - increase | 73 | 281 | |
Changes in tax positions taken during a prior period - decrease | (13,728) | ||
Tax positions taken during the current period - increase | 346 | 589 | 688 |
Change as a result of a lapse in the statute of limitations | 0 | (4,115) | (112) |
Impact of the change in foreign currency exchange rates - increase | 983 | ||
Impact of the change in foreign currency exchange rates - decrease | (240) | (381) | |
December 31 | 6,639 | 6,460 | 8,722 |
Interest and penalties recognized on the above | |||
Income Tax Contingency [Line Items] | |||
January 1 | 1,481 | 968 | 1,583 |
Changes in tax positions taken during a prior period - increase | 691 | 900 | |
Changes in tax positions taken during a prior period - decrease | (573) | ||
Tax positions taken during the current period - increase | 0 | 6 | 5 |
Change as a result of a lapse in the statute of limitations | 0 | (534) | (11) |
Impact of the change in foreign currency exchange rates - increase | 141 | ||
Impact of the change in foreign currency exchange rates - decrease | (68) | (36) | |
December 31 | $ 2,104 | $ 1,481 | $ 968 |
Taxation - Narrative (Details)
Taxation - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Taxation - Other Details [Line Items] | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $ 5,000 | ||
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 | $ 189,090 | $ 185,615 | |
Ireland | |||
Taxation - Other Details [Line Items] | |||
Tax Credit Carryforward, Valuation Allowance | 161,000 | 163,000 | |
Deferred Tax Assets, Valuation Allowance | 7,000 | 7,000 | |
Deferred tax asset carryforwards components | |||
Deferred tax asset on tax loss carryforwards | 8,000 | ||
Hong Kong | |||
Deferred tax asset carryforwards components | |||
Deferred tax asset on tax loss carryforwards | 1,000 | 2,000 | |
Singapore | |||
Deferred tax asset carryforwards components | |||
Deferred tax asset on tax loss carryforwards | 17,000 | 18,000 | |
US | |||
Taxation - Other Details [Line Items] | |||
Deferred Tax Assets, Valuation Allowance | 8,000 | 7,000 | |
Deferred tax asset carryforwards components | |||
Deferred tax asset on tax loss carryforwards | 21,000 | ||
Canada | |||
Taxation - Other Details [Line Items] | |||
Deferred Tax Assets, Valuation Allowance | $ 13,000 | $ 10,000 |
Share-Based Incentives (Details
Share-Based Incentives (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Share-based Arrangements with Employees and Nonemployees [Abstract] | |||
Service period | 3 years | ||
Minimum multiplier of gross LTI target value | 4 | ||
Share based compensation expense | $ 3 | $ 2 | $ 36 |
Shares purchased by employees | $ 11 | ||
Excess of estimated fair value of the purchased shares over the purchase price paid | $ 1 | ||
Tax benefit of share-based compensation expense | $ 40 |
Retirement Benefit Arrangemen_3
Retirement Benefit Arrangements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure - Defined contribution plan | |||
Incurred expense for defined contribution arrangements | $ 13,000 | $ 11,000 | $ 13,000 |
Zurich Plan | |||
Funded status: | |||
Unfunded pension obligation at beginning of year | 64,342 | 57,941 | |
Change in pension obligation: | |||
Service cost | 7,203 | 7,510 | |
Interest cost | 1,366 | 1,295 | |
Plan participants’ contributions | 2,938 | 2,905 | |
Actuarial loss | (9,439) | 1,483 | |
Plan amendments | (19,945) | 0 | |
Benefits paid | (4,901) | (2,097) | |
Foreign currency adjustments | (584) | 7,489 | |
Change in pension obligation | (23,362) | 18,585 | |
Change in fair value of plan assets: | |||
Actual return on plan assets | 958 | 1,131 | |
Employer contributions | 5,245 | 5,361 | |
Plan participants’ contributions | 2,938 | 2,905 | |
Benefits paid | (4,901) | (2,097) | |
Foreign currency adjustments | (365) | 4,884 | |
Change in fair value of plan assets | 3,875 | 12,184 | |
Funded status: | |||
Unfunded pension obligation at end of year | 37,105 | 64,342 | $ 57,941 |
Additional information: | |||
Projected benefit obligation at end of year | 161,792 | 185,154 | |
Accumulated pension obligation at end of year | $ 152,681 | $ 172,806 | |
Pension obligation - assumptions used | |||
Discount rate | 1.00% | 0.75% | 0.75% |
Rate of compensation increase | 2.25% | 2.25% | 2.00% |
Net periodic benefit cost - assumptions used | |||
Discount rate | 0.75% | 0.75% | 1.00% |
Expected return on plan assets | 0.75% | 0.75% | 1.00% |
Rate of compensation increase | 2.25% | 2.00% | 2.25% |
Defined Benefit Plan Estimated Future Benefit Payments Abstract | |||
2019 | $ 4,573 | ||
2020 | 4,703 | ||
2021 | 5,952 | ||
2022 | 5,884 | ||
2023 | 6,353 | ||
2024 to 2028 | 38,437 | ||
Significant other observable inputs (Level 2) | Insured Funds [Member] | Zurich Plan | |||
Additional information: | |||
Fair value of plan assets at end of year | $ 124,687 | $ 120,812 | |
Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution Plans, Accumulated Benefits, Vesting Period | 0 years | 0 years | 0 years |
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution Plans, Accumulated Benefits, Vesting Period | 4 years | 4 years | 4 years |
Retirement Benefit Arrangemen_4
Retirement Benefit Arrangements (Details - Other Details) - Zurich Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Plan Assets [Line Items] | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | $ (37,105) | $ (64,342) | $ (57,941) |
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | 7,000 | ||
Defined Benefit Plan Other Details [Abstract] | |||
Net amounts recognized in accumulated other comprehensive income | 9,000 | 34,000 | |
Tax on amounts recognized in accumulated other comprehensive income | 2,000 | 10,000 | |
Net periodic benefit cost | 10,000 | 11,000 | $ 10,000 |
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 | $ 124,687 | $ 120,812 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Provision for uncollectible premiums receivable | $ 5,000 | $ 5,000 | |
Rent expense | 20,000 | 26,000 | $ 25,000 |
Lease arrangements [abstract] | |||
2019 | 14,074 | ||
2020 | 17,169 | ||
2021 | 14,783 | ||
2022 | 12,536 | ||
2023 | 12,107 | ||
2024-2031 | 55,409 | ||
Total future minimum rental payments | 126,078 | ||
Total future sub-lease rental income through 2020 | 1,316 | ||
Strategic Investments [Member] | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
2019 | 321,000 | ||
2020 | 199,000 | ||
2021 | 96,000 | ||
2022 | 23,000 | ||
2023 | 8,000 | ||
Total | 647,000 | ||
Technology Equipment [Member] | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
2019 | 11,000 | ||
2020 | 4,000 | ||
Total | 16,000 | ||
Structured Letter Of Credit [Member] | |||
Commitments and Contingencies Other Details [Line Items] | |||
LOC obligations guaranteed as of balance sheet date | $ 67,000 | $ 67,000 | |
Line Of Credit Facility Term | 10 years | ||
Maturity date of facility | Dec. 29, 2020 |
Credit Agreements (Details)
Credit Agreements (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Credit Agreements Details [Line Items] | ||
Total amount of credit facilities available | $ 603 | |
Outstanding Unsecured Letter Of Credit | ||
Credit Agreements Details [Line Items] | ||
Letters of credit outstanding amount | 105 | |
Outstanding Secured Letter Of Credit | ||
Credit Agreements Details [Line Items] | ||
Letters of credit outstanding amount | 370 | |
Combined Credit Facility | ||
Credit Agreements Details [Line Items] | ||
Total amount of credit facilities available | 300 | |
Amount of unsecured borrowing capacity | 100 | |
$150 milllion Committed Secured Letter Of Credit Facility | ||
Credit Agreements Details [Line Items] | ||
Total amount of credit facilities available | $ 150 | $ 55 |
Maturity date of facility | Dec. 17, 2020 | |
$50 million Committed Secured Letter Of Credit Facility | ||
Credit Agreements Details [Line Items] | ||
Total amount of credit facilities available | $ 50 | $ 12 |
Maturity date of facility | Dec. 21, 2019 | |
Secured and Unsecured Credit Facilities Not Yet Expired | ||
Credit Agreements Details [Line Items] | ||
Total amount of credit facilities available | $ 101 |
Related Party Transactions (Det
Related Party Transactions (Details) € in Thousands, $ in Thousands, £ in Millions | 12 Months Ended | |||||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017GBP (£) | Dec. 31, 2016USD ($) | Mar. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) | |
Related Party Transaction [Line Items] | ||||||
Investments in real estate | $ 72,573 | $ 83,098 | ||||
Retained earnings | ||||||
Related Party Transaction [Line Items] | ||||||
Dividends on common shares | (47,835) | (144,693) | $ (436,430) | |||
EXOR S.A. [Member] | Other invested assets | ||||||
Related Party Transaction [Line Items] | ||||||
Investment carrying value | 11,000 | |||||
EXOR S.A. [Member] | Private equity funds | ||||||
Related Party Transaction [Line Items] | ||||||
Payments to acquire investments | 500,000 | |||||
Investment carrying value | 563,000 | 551,000 | ||||
Almacantar Group S.A. | Real Estate Investment | ||||||
Related Party Transaction [Line Items] | ||||||
Payments to Acquire Real Estate and Real Estate Joint Ventures | 83,000 | £ 55 | ||||
Other than Temporary Impairment Losses, Investments | 6,000 | |||||
Foreign currency translation adjustment | 4,000 | |||||
EXOR Nederland NV [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Related Party Advisory Services Agreement | 500 | € 300 | € 300 | |||
Payment to Related Parties (Less than) | 500 | $ 500 | ||||
EXOR Nederland NV [Member] | Real estate services [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Related Party Consulting Services Agreement | 45 | $ 45 | ||||
EXOR Nederland NV [Member] | Investment advisory services [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Related Party Advisory Services Agreement | $ 273 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) - 12 months ended Dec. 31, 2018 | Total | Segment |
Segment Reporting [Abstract] | ||
Number of worldwide business segments | 3 | 3 |
Number of operating Segments | 3 |
Segment Information (Results by
Segment Information (Results by Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Segment Reporting [Line Items] | ||||
Gross premiums written | $ 6,299,929 | $ 5,587,894 | $ 5,356,942 | |
Net premiums written | 5,803,364 | 5,119,926 | 4,953,470 | |
(Increase) decrease in unearned premiums | (289,554) | (94,945) | 16,126 | |
Net premiums earned | 5,513,810 | 5,024,981 | 4,969,596 | |
Losses and loss expenses | (4,194,000) | (3,841,000) | (3,248,000) | |
Acquisition costs | (1,237,464) | (1,119,773) | (1,186,602) | |
Technical result | 83,000 | 64,000 | 535,000 | |
Other income | 50,127 | 15,242 | 15,232 | |
Other expenses | (305,568) | (348,398) | (471,905) | |
Underwriting result | (173,000) | (269,000) | 78,000 | |
Net investment income | 415,921 | 402,071 | 410,864 | |
Net realized and unrealized investment (losses) gains | (389,632) | 232,491 | 26,266 | |
Interest expense | (43,152) | (42,500) | (48,603) | |
Loss on redemption of debt | 0 | (1,566) | (22,203) | |
Amortization of intangible assets | (35,473) | (24,646) | (25,919) | |
Net foreign exchange (gains) losses | 119,151 | (108,244) | 77,515 | |
Income tax expense (benefit) | 8,934 | (10,358) | (25,923) | |
Interest in earnings (losses) of equity method investments | 10,607 | 85,703 | (22,919) | |
Net (loss) income | (85,994) | 264,021 | 447,308 | |
Non Life | ||||
Segment Reporting [Line Items] | ||||
Gross premiums written | 5,065,000 | 4,605,000 | 4,553,000 | |
Net premiums written | 4,592,000 | 4,155,000 | 4,155,000 | |
(Increase) decrease in unearned premiums | (290,000) | (100,000) | 15,000 | |
Net premiums earned | 4,302,000 | 4,055,000 | 4,170,000 | |
Losses and loss expenses | (3,169,000) | (3,006,000) | (2,567,000) | |
Acquisition costs | (1,108,000) | (1,023,000) | (1,095,000) | |
Technical result | 25,000 | 26,000 | 508,000 | |
Other income | 30,000 | [1] | (1,000) | 2,000 |
Other expenses | (102,000) | (121,000) | (251,000) | |
Underwriting result | $ (47,000) | $ (96,000) | $ 259,000 | |
Reinsurance Ratios [Abstract] | ||||
Loss ratio | 73.70% | [2] | 74.10% | 61.60% |
Acquisition ratio | 25.80% | [3] | 25.20% | 26.30% |
Technical ratio | 99.50% | [4] | 99.30% | 87.90% |
Other expense ratio | 2.40% | [5] | 3.00% | 6.00% |
Combined Ratio | 101.90% | [6] | 102.30% | 93.90% |
Non Life | P&C | ||||
Segment Reporting [Line Items] | ||||
Gross premiums written | $ 3,015,000 | [1] | $ 2,671,000 | $ 2,633,000 |
Net premiums written | 2,722,000 | [1] | 2,375,000 | 2,379,000 |
(Increase) decrease in unearned premiums | (187,000) | [1] | (45,000) | 24,000 |
Net premiums earned | 2,535,000 | [1] | 2,330,000 | 2,403,000 |
Losses and loss expenses | (2,073,000) | [1] | (2,051,000) | (1,494,000) |
Acquisition costs | (606,000) | [1] | (534,000) | (595,000) |
Technical result | (144,000) | [1] | (255,000) | 314,000 |
Other income | 30,000 | [1] | 0 | 3,000 |
Other expenses | (75,000) | [1] | (88,000) | (163,000) |
Underwriting result | $ (189,000) | [1] | $ (343,000) | $ 154,000 |
Reinsurance Ratios [Abstract] | ||||
Loss ratio | 81.80% | [2] | 88.00% | 62.10% |
Acquisition ratio | 23.90% | [3] | 22.90% | 24.80% |
Technical ratio | 105.70% | [4] | 110.90% | 86.90% |
Other expense ratio | 3.00% | [5] | 3.80% | 6.80% |
Combined Ratio | 108.70% | [6] | 114.70% | 93.70% |
Non Life | Specialty | ||||
Segment Reporting [Line Items] | ||||
Gross premiums written | $ 2,050,000 | $ 1,934,000 | $ 1,920,000 | |
Net premiums written | 1,870,000 | 1,780,000 | 1,776,000 | |
(Increase) decrease in unearned premiums | (103,000) | (55,000) | (9,000) | |
Net premiums earned | 1,767,000 | 1,725,000 | 1,767,000 | |
Losses and loss expenses | (1,096,000) | (955,000) | (1,073,000) | |
Acquisition costs | (502,000) | (489,000) | (500,000) | |
Technical result | 169,000 | 281,000 | 194,000 | |
Other income | 0 | [1] | (1,000) | (1,000) |
Other expenses | (27,000) | (33,000) | (88,000) | |
Underwriting result | $ 142,000 | $ 247,000 | $ 105,000 | |
Reinsurance Ratios [Abstract] | ||||
Loss ratio | 62.00% | [2] | 55.40% | 60.80% |
Acquisition ratio | 28.40% | [3] | 28.40% | 28.30% |
Technical ratio | 90.40% | [4] | 83.80% | 89.10% |
Other expense ratio | 1.50% | [5] | 1.90% | 4.90% |
Combined Ratio | 91.90% | [6] | 85.70% | 94.00% |
Life and Health | ||||
Segment Reporting [Line Items] | ||||
Gross premiums written | $ 1,235,000 | [1] | $ 983,000 | $ 804,000 |
Net premiums written | 1,211,000 | [1] | 965,000 | 799,000 |
(Increase) decrease in unearned premiums | 1,000 | [1] | 5,000 | 1,000 |
Net premiums earned | 1,212,000 | [1] | 970,000 | 800,000 |
Losses and loss expenses | (1,025,000) | [1] | (835,000) | (681,000) |
Acquisition costs | (129,000) | [1] | (97,000) | (92,000) |
Technical result | 58,000 | [1] | 38,000 | 27,000 |
Other income | 13,000 | [1] | 14,000 | 10,000 |
Other expenses | (51,000) | [1] | (44,000) | (44,000) |
Underwriting result | 20,000 | [1] | 8,000 | (7,000) |
Net investment income | 66,000 | [1] | 60,000 | 58,000 |
Allocated underwriting result | 86,000 | [1] | 68,000 | 51,000 |
Corporate and Other | ||||
Segment Reporting [Line Items] | ||||
Gross premiums written | 0 | 0 | 0 | |
Net premiums written | 0 | 0 | 0 | |
(Increase) decrease in unearned premiums | 0 | 0 | 0 | |
Net premiums earned | 0 | 0 | 0 | |
Losses and loss expenses | 0 | 0 | 0 | |
Acquisition costs | 0 | 0 | 0 | |
Technical result | 0 | 0 | 0 | |
Other income | 7,000 | 2,000 | 3,000 | |
Other expenses | (153,000) | (183,000) | (177,000) | |
Net investment income | 350,000 | 342,000 | 353,000 | |
Net realized and unrealized investment (losses) gains | (390,000) | 232,000 | 26,000 | |
Interest expense | (43,000) | (42,000) | (49,000) | |
Loss on redemption of debt | (2,000) | (22,000) | ||
Amortization of intangible assets | (35,000) | (25,000) | (26,000) | |
Net foreign exchange (gains) losses | 119,000 | (108,000) | 78,000 | |
Income tax expense (benefit) | 9,000 | (10,000) | (26,000) | |
Interest in earnings (losses) of equity method investments | 11,000 | 86,000 | (23,000) | |
Previously Reported | Life and Health | ||||
Segment Reporting [Line Items] | ||||
Gross premiums written | 405,000 | 416,000 | 364,000 | |
Net premiums written | 356,000 | 379,000 | 318,000 | |
(Increase) decrease in unearned premiums | 12,000 | (12,000) | (1,000) | |
Net premiums earned | 368,000 | 367,000 | 317,000 | |
Losses and loss expenses | (309,000) | (431,000) | (246,000) | |
Acquisition costs | (30,000) | (39,000) | (39,000) | |
Technical result | 29,000 | (103,000) | 32,000 | |
Other expenses | (12,000) | (17,000) | (22,000) | |
Underwriting result | 17,000 | (120,000) | 10,000 | |
Restatement Adjustment | Non Life | P&C | ||||
Segment Reporting [Line Items] | ||||
Gross premiums written | 405,000 | 416,000 | 364,000 | |
Net premiums written | 356,000 | 379,000 | 318,000 | |
(Increase) decrease in unearned premiums | 12,000 | (12,000) | (1,000) | |
Net premiums earned | 368,000 | 367,000 | 317,000 | |
Losses and loss expenses | (309,000) | (431,000) | (246,000) | |
Acquisition costs | (30,000) | (39,000) | (39,000) | |
Technical result | 29,000 | (103,000) | 32,000 | |
Other expenses | (12,000) | (17,000) | (22,000) | |
Underwriting result | $ 17,000 | $ (120,000) | $ 10,000 | |
[1] | In 2018, the executive management responsibility and reporting for U.S. health business was reallocated from the Life and Health segment to the P&C segment as part of an internal organizational change. As a result, the financial results for U.S. health business for 2018 has been included in the P&C segment and the impacted 2017 and 2016 comparatives have been reclassified from the Life and Health to the P&C segment to conform to current presentation. | |||
[2] | Loss ratio is obtained by dividing losses and loss expenses by net premiums earned. | |||
[3] | Acquisition ratio is obtained by dividing acquisition costs by net premiums earned. | |||
[4] | Technical ratio is defined as the sum of the loss ratio and the acquisition ratio. | |||
[5] | Other expense ratio is obtained by dividing other expenses by net premiums earned. | |||
[6] | Combined ratio is defined as the sum of the technical ratio and the other expense ratio. |
Segment Information (Distributi
Segment Information (Distribution of gross and net written premium) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | $ 6,299,929 | $ 5,587,894 | $ 5,356,942 |
Percentage Distribution of gross premiums written | 100.00% | 100.00% | 100.00% |
North America | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | $ 2,929,000 | $ 2,620,000 | $ 2,573,000 |
Percentage Distribution of gross premiums written | 47.00% | 47.00% | 48.00% |
Europe | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | $ 2,152,000 | $ 1,866,000 | $ 1,888,000 |
Percentage Distribution of gross premiums written | 34.00% | 33.00% | 35.00% |
Asia, Australia and New Zealand | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | $ 699,000 | $ 565,000 | $ 478,000 |
Percentage Distribution of gross premiums written | 11.00% | 10.00% | 9.00% |
Latin America, and the Caribbean | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | $ 260,000 | $ 267,000 | $ 182,000 |
Percentage Distribution of gross premiums written | 4.00% | 5.00% | 4.00% |
Middle East, Africa, Russia and the Commonwealth of Independent States (CIS) | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | $ 260,000 | $ 270,000 | $ 236,000 |
Percentage Distribution of gross premiums written | 4.00% | 5.00% | 4.00% |
Segment Information (Broker det
Segment Information (Broker details) (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Economic Dependence [Line Items] | |||
Cedant Percentage Of Gross Written Premium | 4.00% | 4.00% | 4.00% |
Marsh (including Guy Carpenter) | |||
Economic Dependence [Line Items] | |||
Broker Percentage Of Gross Written Premium | 22.00% | 25.00% | 22.00% |
Aon Group (including the Benfield Group) | |||
Economic Dependence [Line Items] | |||
Broker Percentage Of Gross Written Premium | 22.00% | 22.00% | 22.00% |
Non Life | P&C | |||
Economic Dependence [Line Items] | |||
Broker Percentage Of Gross Written Premium | 53.00% | 53.00% | 52.00% |
Non Life | Specialty | |||
Economic Dependence [Line Items] | |||
Broker Percentage Of Gross Written Premium | 52.00% | 56.00% | 46.00% |
Life and Health | |||
Economic Dependence [Line Items] | |||
Broker Percentage Of Gross Written Premium | 11.00% | 12.00% | 13.00% |
Other Expenses (Details)
Other Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Expenses [Abstract] | |||
Reorganization Related Costs | $ 11 | $ 29 | $ 52 |
Other Transaction Costs | $ 4 | 76 | |
Settlement Of Stock Awards On Change Of Control | $ 38 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | Mar. 20, 2019USD ($) |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Dividends | $ 80 |
SCHEDULE I - Consolidated Sum_2
SCHEDULE I - Consolidated Summary of Investments Other Than Investments in Related Parties (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |||
Investments in real estate | $ 72,573 | $ 83,098 | |
Trading securities | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |||
Fair Value | [1] | 14,612,475 | |
Amount at which shown in the balance sheet | [1] | 14,612,475 | |
Trading securities | Fixed maturities | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |||
Cost (1) | 12,627,921 | ||
Fair Value | 12,639,845 | ||
Amount at which shown in the balance sheet | 12,639,845 | ||
Trading securities | U.S. government and government sponsored enterprises | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |||
Cost (1) | [2] | 2,333,371 | |
Fair Value | 2,345,008 | ||
Amount at which shown in the balance sheet | 2,345,008 | ||
Trading securities | U.S. states, territories and municipalities | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |||
Cost (1) | [2] | 114,857 | |
Fair Value | 134,593 | ||
Amount at which shown in the balance sheet | 134,593 | ||
Trading securities | Non-U.S. sovereign government, supranational and government related | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |||
Cost (1) | [2] | 2,122,510 | |
Fair Value | 2,158,642 | ||
Amount at which shown in the balance sheet | 2,158,642 | ||
Trading securities | Corporate bonds | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |||
Cost (1) | [2] | 5,667,992 | |
Fair Value | 5,611,678 | ||
Amount at which shown in the balance sheet | 5,611,678 | ||
Trading securities | Asset-backed securities | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |||
Cost (1) | [2] | 56,892 | |
Fair Value | 58,683 | ||
Amount at which shown in the balance sheet | 58,683 | ||
Trading securities | Residential mortgage-backed securities | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |||
Cost (1) | [2] | 2,332,103 | |
Fair Value | 2,331,230 | ||
Amount at which shown in the balance sheet | 2,331,230 | ||
Trading securities | Other mortgage-backed securities | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |||
Cost (1) | [2] | 196 | |
Fair Value | 11 | ||
Amount at which shown in the balance sheet | 11 | ||
Trading securities | Equities | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |||
Cost (1) | [2] | 621,312 | |
Fair Value | 694,301 | ||
Amount at which shown in the balance sheet | 694,301 | ||
Trading securities | Banks, trust and insurance companies | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |||
Cost (1) | [2] | 22,446 | |
Fair Value | 27,978 | ||
Amount at which shown in the balance sheet | 27,978 | ||
Trading securities | Industrial, miscellaneous and all other | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |||
Cost (1) | [2] | 598,866 | |
Fair Value | 666,323 | ||
Amount at which shown in the balance sheet | 666,323 | ||
Trading securities | Short-term investments | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |||
Cost (1) | [2] | 495,050 | |
Fair Value | 493,726 | ||
Amount at which shown in the balance sheet | 493,726 | ||
Trading securities | Other invested assets | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |||
Fair Value | [3] | 784,603 | |
Amount at which shown in the balance sheet | [3] | 784,603 | |
Other invested assets | Trading securities | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |||
Investments Not Carried At Fair Value | $ 704,000 | $ 746,000 | |
[1] | Investments in real estate recorded at cost less accumulated depreciation and impairment of $73 million are excluded from total investments above. | ||
[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 equity method of accounting of $704 million. |
SCHEDULE II - Condensed Balance
SCHEDULE II - Condensed Balance Sheets - Parent Company Only (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Nov. 01, 2016 | Mar. 18, 2016 | Dec. 31, 2015 | |
Assets | ||||||
Fixed maturities, at fair value (amortized cost: 2018, $109,824; 2017, $52,406) | $ 12,639,845 | $ 12,654,859 | ||||
Cash and cash equivalents | 877,907 | 1,772,012 | $ 1,773,328 | $ 1,577,097 | ||
Other | 63,506 | 41,237 | ||||
Total assets | 22,759,894 | 22,980,764 | ||||
Liabilities | ||||||
Accounts payable, accrued expenses and other | 266,524 | 302,021 | ||||
Total liabilities | 16,243,380 | 16,235,652 | ||||
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 | (138,634) | (90,281) | ||||
Retained earnings | 4,230,449 | 4,410,694 | ||||
Total shareholders’ equity | 6,516,514 | 6,745,112 | 6,687,912 | |||
Total liabilities and shareholders’ equity | 22,759,894 | 22,980,764 | ||||
CondensedFinancialStatementsParentheticals [Abstract] | ||||||
Fixed maturities, amortized cost | $ 12,627,921 | $ 12,480,569 | ||||
Common shares, par value | $ 0.00 | $ 0.00 | $ 1 | |||
Common shares, shares issued | 100,000,000 | 100,000,000 | 1 | |||
Preferred shares, par value | $ 1 | $ 1 | ||||
Preferred shares, shares issued | 28,169,062 | 28,169,062 | ||||
Preferred shares, shares outstanding | 28,169,062 | 28,169,062 | ||||
Preferred shares, aggregate liquidation value | $ 704,227 | $ 704,227 | $ 150,000 | |||
Parent Company [Member] | ||||||
Assets | ||||||
Fixed maturities, at fair value (amortized cost: 2018, $109,824; 2017, $52,406) | 109,951 | 51,748 | ||||
Cash and cash equivalents | 1,081 | 26,681 | $ 23,150 | $ 94,835 | ||
Investments in subsidiaries | 8,831,161 | 8,991,358 | ||||
Intercompany loans and balances receivable | 657,156 | 1,135,749 | ||||
Other | 4,588 | 4,246 | ||||
Total assets | 9,603,937 | 10,209,782 | ||||
Liabilities | ||||||
Intercompany loans and balances payable (1) | 3,061,210 | 3,435,693 | ||||
Accounts payable, accrued expenses and other | 26,213 | 28,977 | ||||
Total liabilities | 3,087,423 | 3,464,670 | ||||
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 | (138,634) | (90,281) | ||||
Retained earnings | 4,230,449 | 4,410,694 | ||||
Total shareholders’ equity | 6,516,514 | 6,745,112 | ||||
Total liabilities and shareholders’ equity | 9,603,937 | 10,209,782 | ||||
CondensedFinancialStatementsParentheticals [Abstract] | ||||||
Fixed maturities, amortized cost | $ 109,824 | $ 52,406 | ||||
Common shares, par value | $ 0.00 | $ 0.00 | ||||
Common shares, shares issued | 100,000,000 | 100,000,000 | ||||
Preferred shares, par value | $ 1 | $ 1 | ||||
Preferred shares, shares issued | 28,169,062 | 28,169,062 | ||||
Preferred shares, shares outstanding | 28,169,062 | 28,169,062 | ||||
Preferred shares, aggregate liquidation value | $ 704,227 | $ 704,227 | ||||
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% | |||||
Percentage Ownership | 100.00% | |||||
Parent Company [Member] | Senior Notes | Notes Issued By Partner Re Finance B LLC [Member] | FinancialGuaranteeMember | ||||||
Parent Company Guarantee Disclosures [Abstract] | ||||||
Interest rate on obligations guaranteed by the Parent Company | 5.50% | |||||
Percentage Ownership | 100.00% | |||||
Parent Company [Member] | 2016 Euro Senior Notes | PartnerRe Ireland Finance DAC [Member] | FinancialGuaranteeMember | ||||||
Parent Company Guarantee Disclosures [Abstract] | ||||||
Interest rate on obligations guaranteed by the Parent Company | 1.25% | |||||
Percentage Ownership | 100.00% |
SCHEDULE II - Condensed Stateme
SCHEDULE II - Condensed Statements of Operations - Parent Company Only (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues | |||
Net investment income | $ 415,921 | $ 402,071 | $ 410,864 |
Net realized and unrealized investment gains (losses) | (389,632) | 232,491 | 26,266 |
Total revenues | 5,590,226 | 5,674,785 | 5,421,958 |
Expenses | |||
Other expenses | 305,568 | 348,398 | 471,905 |
Net foreign exchange (gains) losses | (119,151) | 108,244 | (77,515) |
Net (loss) income | (85,994) | 264,021 | 447,308 |
Preferred dividends | 46,416 | 46,416 | 55,043 |
Loss on redemption of preferred shares | 0 | 0 | 4,908 |
Net (loss) income attributable to common shareholder | (132,410) | 217,605 | 387,357 |
Comprehensive (loss) income | |||
Net (loss) income | (85,994) | 264,021 | 447,308 |
Total other comprehensive (loss) income, net of tax | (48,353) | (15,712) | 8,714 |
Comprehensive (loss) income | (134,347) | 248,309 | 456,022 |
Parent Company [Member] | |||
Revenues | |||
Net investment income | 1,844 | 1,890 | 2,690 |
Interest income on intercompany loans | 13,015 | 12,201 | 12,109 |
Net realized and unrealized investment gains (losses) | (1,632) | 91 | 2,993 |
Other income | (6,778) | 8,418 | 2,483 |
Total revenues | 6,449 | 22,600 | 20,275 |
Expenses | |||
Other expenses | 25,792 | 40,131 | 116,758 |
Interest expense on intercompany loans | 15,041 | 12,085 | 7,016 |
Net foreign exchange (gains) losses | (50,276) | 35,753 | (10,788) |
Total expenses | (9,443) | 87,969 | 112,986 |
Loss before equity in net income of subsidiaries | 15,892 | (65,369) | (92,711) |
Equity in net income of subsidiaries | (101,886) | 329,390 | 540,019 |
Net (loss) income | (85,994) | 264,021 | 447,308 |
Preferred dividends | 46,416 | 46,416 | 55,043 |
Loss on redemption of preferred shares | 0 | 0 | 4,908 |
Net (loss) income attributable to common shareholder | (132,410) | 217,605 | 387,357 |
Comprehensive (loss) income | |||
Net (loss) income | (85,994) | 264,021 | 447,308 |
Total other comprehensive (loss) income, net of tax | (48,353) | (15,712) | 8,714 |
Comprehensive (loss) income | $ (134,347) | $ 248,309 | $ 456,022 |
SCHEDULE II - Condensed State_2
SCHEDULE II - Condensed Statements of Cash Flows - Parent Company Only (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Cash flows from operating activities | ||||
Net (loss) income | $ (85,994) | $ 264,021 | $ 447,308 | |
Adjustments to reconcile net income to net cash used in operating activities: | ||||
Other, net | (141,808) | (38,190) | 38,195 | |
Net cash provided by operating activities | 447,493 | 242,876 | 445,309 | |
Cash flows from investing activities | ||||
Other, net | (167,230) | (65,753) | (749,194) | |
Net cash provided by (used in) investing activities | (1,260,911) | 98,821 | (34,055) | |
Cash flows from financing activities | ||||
Cash dividends paid to common and preferred shareholders | (94,251) | (191,109) | (491,473) | |
Redemption of preferred shares | 0 | 0 | (149,523) | |
Settlement of share-based awards upon change in control | 0 | 0 | (75,531) | |
Net cash used in financing activities | (94,251) | (387,239) | (153,521) | |
Effect of foreign exchange rate changes on cash | 13,564 | 44,226 | (61,502) | |
Increase (decrease) in cash and cash equivalents | (894,105) | (1,316) | 196,231 | |
Cash and cash equivalents—beginning of year | 1,772,012 | 1,773,328 | 1,577,097 | |
Cash and cash equivalents—end of year | 877,907 | 1,772,012 | 1,773,328 | |
Fixed maturities | ||||
Cash flows from investing activities | ||||
Purchases of trading securities | (15,638,777) | (12,465,127) | (12,704,275) | |
Parent Company [Member] | ||||
Cash flows from operating activities | ||||
Net (loss) income | (85,994) | 264,021 | 447,308 | |
Adjustments to reconcile net income to net cash used in operating activities: | ||||
Equity in net income of subsidiaries | 101,886 | (329,390) | (540,019) | |
Other, net | (29,283) | 25,239 | 11,205 | |
Net cash provided by operating activities | (13,391) | (40,130) | (81,506) | |
Cash flows from investing activities | ||||
Advances to/from subsidiaries, net | (261,666) | 11,138 | (167,254) | |
Net issue of intercompany loans receivable and payable | 299,279 | 0 | 542,193 | |
Other, net | (680) | 414 | (2,408) | |
Net cash provided by (used in) investing activities | (22,974) | 35,517 | 464,580 | |
Cash flows from financing activities | ||||
Cash dividends paid to common and preferred shareholders | [1] | 0 | 0 | (240,725) |
Redemption of preferred shares | 0 | 0 | (149,523) | |
Reissuance of treasury shares, net of taxes | 0 | 0 | 10,965 | |
Settlement of share-based awards upon change in control | 0 | 0 | (75,531) | |
Net cash used in financing activities | 0 | 0 | (454,814) | |
Effect of foreign exchange rate changes on cash | 10,765 | 8,144 | 55 | |
Increase (decrease) in cash and cash equivalents | (25,600) | 3,531 | (71,685) | |
Cash and cash equivalents—beginning of year | 26,681 | 23,150 | 94,835 | |
Cash and cash equivalents—end of year | 1,081 | 26,681 | 23,150 | |
Parent Company [Member] | Fixed maturities | ||||
Cash flows from investing activities | ||||
Sales and redemptions of fixed maturities | 65,025 | 40,379 | 99,888 | |
Purchases of trading securities | (124,932) | (16,414) | (7,839) | |
Subsidiaries [Member] | ||||
Non Cash Transactions [Abstract] | ||||
Payment Of Dividends By Subsidiary On Behalf Of Parent | $ 94,000 | $ 191,000 | $ 251,000 | |
[1] | During the years ended December 31, 2018, 2017 and 2016, dividends paid to common and preferred shareholders of $94 million, $191 million and $251 million, respectively, were paid by a Bermuda subsidiary on behalf of the parent and have therefore been excluded from the Condensed Statements of Cash Flows—Parent Company Only. |
SCHEDULE III - Supplementary _2
SCHEDULE III - Supplementary Insurance Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | ||||
Deferred Policy Acquisition Costs | $ 743,046 | $ 672,307 | $ 597,239 | |
Gross Reserves | 9,895,376 | 10,102,172 | 9,247,200 | |
Unearned Premiums | 2,072,953 | 1,818,999 | 1,623,796 | |
Other Benefits Payable | 2,198,080 | 2,098,759 | 1,722,330 | |
Premium Revenue | 5,513,810 | 5,024,981 | 4,969,596 | |
Net Investment Income(2) | [1] | 415,921 | 402,071 | 410,864 |
Losses Incurred | 4,193,255 | 3,840,982 | 3,248,091 | |
Amortization of DAC | 1,237,464 | 1,119,773 | 1,186,602 | |
Other Expenses (1), (3) | [2] | 305,568 | 348,398 | 471,904 |
Premiums Written | 5,803,364 | 5,119,926 | 4,953,470 | |
Non Life | ||||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | ||||
Deferred Policy Acquisition Costs | [3] | 553,535 | 493,196 | 439,195 |
Gross Reserves | [3] | 9,895,376 | 10,102,172 | 9,247,200 |
Unearned Premiums | [3] | 2,062,736 | 1,807,013 | 1,608,880 |
Other Benefits Payable | [3] | 0 | 0 | 0 |
Premium Revenue | [3] | 4,301,862 | 4,055,191 | 4,170,389 |
Losses Incurred | [3] | 3,168,647 | 3,005,567 | 2,566,932 |
Amortization of DAC | [3] | 1,107,760 | 1,023,065 | 1,095,251 |
Other Expenses (1), (3) | [2],[3] | 102,397 | 121,134 | 251,306 |
Premiums Written | [3] | 4,592,282 | 4,154,809 | 4,154,707 |
Life and Health | ||||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | ||||
Deferred Policy Acquisition Costs | [3] | 189,511 | 179,111 | 158,044 |
Gross Reserves | [3] | 0 | 0 | 0 |
Unearned Premiums | [3] | 10,217 | 11,986 | 14,916 |
Other Benefits Payable | [3] | 2,198,080 | 2,098,759 | 1,722,330 |
Premium Revenue | [3] | 1,211,948 | 969,790 | 799,207 |
Net Investment Income(2) | [1] | 65,567 | 59,895 | 57,664 |
Losses Incurred | [3] | 1,024,608 | 835,415 | 681,159 |
Amortization of DAC | [3] | 129,704 | 96,708 | 91,351 |
Other Expenses (1), (3) | [2],[3] | 51,055 | 44,346 | 43,502 |
Premiums Written | [3] | 1,211,082 | 965,117 | 798,763 |
Corporate and Other | ||||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [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(2) | [1] | 350,354 | 342,176 | 353,200 |
Losses Incurred | 0 | 0 | 0 | |
Amortization of DAC | 0 | 0 | 0 | |
Other Expenses (1), (3) | [2] | 152,116 | 182,918 | 177,096 |
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 as the Company allocates certain other expenses to its operating segments that vary with business written. | |||
[3] | In 2018, U.S. health business was reallocated from the Life and Health segment to the P&C segment as part of an internal organizational change. As a result, the impacted 2017 and 2016 comparatives have been reclassified to conform to current presentation. |
SCHEDULE IV - Reinsurance (Deta
SCHEDULE IV - Reinsurance (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Life reinsurance in force | ||||
Gross amount | $ 0 | $ 0 | $ 0 | |
Ceded to other companies | 16,349,433 | 15,136,473 | 1,930,291 | |
Assumed from other companies | 349,064,323 | 295,171,940 | 167,198,163 | |
Net amount | $ 332,714,890 | $ 280,035,467 | $ 165,267,872 | |
Percentage of amount assumed to net | 105.00% | 105.00% | 101.00% | |
Reinsurance Premiums For Insurance Companies By Product Segment Net Amount [Abstract] | ||||
Gross amount | $ 248,501 | $ 261,760 | $ 251,492 | |
Ceded to other companies | 474,121 | 446,565 | 374,235 | |
Assumed from other companies | 5,739,430 | 5,209,786 | 5,092,339 | |
Net premiums earned | $ 5,513,810 | $ 5,024,981 | $ 4,969,596 | |
Percentage of amount assumed to net | 104.00% | 104.00% | 102.00% | |
Life [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment Net Amount [Abstract] | ||||
Gross amount | [1] | $ 0 | $ 0 | $ 0 |
Ceded to other companies | [1] | 24,025 | 18,094 | 4,694 |
Assumed from other companies | [1] | 1,184,604 | 944,752 | 778,754 |
Net premiums earned | [1] | $ 1,160,579 | $ 926,658 | $ 774,060 |
Percentage of amount assumed to net | [1] | 102.00% | 102.00% | 101.00% |
Accident and health [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment Net Amount [Abstract] | ||||
Gross amount | [1] | $ 0 | $ 0 | $ 0 |
Ceded to other companies | [1] | 0 | 0 | 0 |
Assumed from other companies | [1] | 51,369 | 43,132 | 25,147 |
Net premiums earned | [1] | $ 51,369 | $ 43,132 | $ 25,147 |
Percentage of amount assumed to net | [1] | 100.00% | 100.00% | 100.00% |
Property and casualty [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment Net Amount [Abstract] | ||||
Gross amount | [1],[2] | $ 248,501 | $ 261,760 | $ 251,492 |
Ceded to other companies | [1],[2] | 450,096 | 428,471 | 369,541 |
Assumed from other companies | [1],[2] | 4,503,457 | 4,221,902 | 4,288,438 |
Net premiums earned | [1],[2] | $ 4,301,862 | $ 4,055,191 | $ 4,170,389 |
Percentage of amount assumed to net | [1],[2] | 105.00% | 104.00% | 103.00% |
[1] | In 2018, U.S. health business was reallocated from the Life and Health segment to the P&C segment as part of an internal organizational change. As a result, the impacted 2017 and 2016 comparatives have been reclassified to conform to current presentation. | |||
[2] | P&C includes Specialty and U.S. health premiums. |
SCHEDULE VI - Supplemental In_2
SCHEDULE VI - Supplemental Information Concerning Property-Casualty Insurance Operations (Details) - Non Life - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Supplemental Information Concerning Property-Casualty Insurance Operations [Line Items] | |||
Deferred Policy Acquisition Costs | $ 553,535 | $ 493,196 | $ 439,195 |
Liability for Unpaid Losses and Loss Expenses | 9,895,376 | 10,102,172 | 9,247,200 |
Unearned Premiums | 2,062,736 | 1,807,013 | 1,608,880 |
Premiums Earned | 4,301,862 | 4,055,191 | 4,170,389 |
Current year | 3,417,366 | 3,453,725 | 3,243,506 |
Prior year | (248,719) | (448,158) | (676,574) |
Amortization of Deferred Policy Acquisition Costs | 1,107,760 | 1,023,065 | 1,095,251 |
Paid Losses and Loss Expenses | 2,921,987 | 2,979,051 | 2,488,473 |
Premiums Written | $ 4,592,282 | $ 4,154,809 | $ 4,154,707 |