Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 5-May-15 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | ARCH CAPITAL GROUP LTD. | |
Entity Central Index Key | 947484 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 124,030,813 |
Unaudited_Consolidated_Balance
Unaudited Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Investments: | ||
Fixed maturities available for sale, at fair value (amortized cost: $10,343,330 and $10,701,557) | $10,427,810 | $10,750,770 |
Short-term investments available for sale, at fair value (amortized cost: $859,167 and $801,758) | 855,032 | 797,226 |
Investment of funds received under securities lending, at fair value (amortized cost: $253,159 and $40,473) | 257,059 | 44,301 |
Equity securities available for sale, at fair value (cost: $578,520 and $562,534) | 687,713 | 658,182 |
Other investments available for sale, at fair value (cost: $292,287 and $264,747) | 329,677 | 296,224 |
Investments accounted for using the fair value option | 2,441,986 | 2,435,532 |
Investments accounted for using the equity method | 412,367 | 349,014 |
Total investments | 15,411,644 | 15,331,249 |
Cash | 471,012 | 485,702 |
Accrued investment income | 73,282 | 74,316 |
Investment in joint venture (cost: $100,000) | 90,724 | 90,426 |
Fixed maturities and short-term investments pledged under securities lending, at fair value | 253,115 | 50,802 |
Premiums receivable | 1,116,389 | 948,695 |
Reinsurance recoverable on unpaid and paid losses and loss adjustment expenses | 1,788,619 | 1,812,845 |
Contractholder receivables | 1,339,433 | 1,309,192 |
Prepaid reinsurance premiums | 421,908 | 377,078 |
Deferred acquisition costs, net | 442,775 | 414,525 |
Receivable for securities sold | 400,113 | 78,170 |
Goodwill and intangible assets | 106,745 | 109,539 |
Other assets | 933,921 | 927,004 |
Total assets | 22,849,680 | 22,009,543 |
Liabilities | ||
Reserve for losses and loss adjustment expenses | 8,928,950 | 9,036,448 |
Unearned premiums | 2,400,834 | 2,231,578 |
Reinsurance balances payable | 200,444 | 219,312 |
Contractholder payables | 1,339,433 | 1,309,192 |
Deposit accounting liabilities | 284,828 | 327,384 |
Senior notes | 800,000 | 800,000 |
Revolving credit agreement borrowings | 100,000 | 100,000 |
Securities lending payable | 263,216 | 50,529 |
Payable for securities purchased | 554,625 | 128,413 |
Other liabilities | 679,450 | 688,041 |
Total liabilities | 15,551,780 | 14,890,897 |
Commitments and Contingencies | ||
Redeemable noncontrolling interests | 219,604 | 219,512 |
Shareholders' Equity | ||
Non-cumulative preferred shares | 325,000 | 325,000 |
Common shares ($0.0033 par, shares issued: 171,832,868 and 171,672,408) | 573 | 572 |
Additional paid-in capital | 399,757 | 383,073 |
Retained earnings | 7,132,423 | 6,854,571 |
Accumulated other comprehensive income, net of deferred income tax | 158,023 | 128,856 |
Common shares held in treasury, at cost (shares: 47,072,027 and 44,304,474) | -1,727,074 | -1,562,019 |
Total shareholders' equity available to Arch | 6,288,702 | 6,130,053 |
Non-redeemable noncontrolling interests | 789,594 | 769,081 |
Total shareholders' equity | 7,078,296 | 6,899,134 |
Total liabilities, noncontrolling interests and shareholders' equity | $22,849,680 | $22,009,543 |
Unaudited_Consolidated_Balance1
Unaudited Consolidated Balance Sheets (Parentheticals) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Fixed maturities available for sale, at amortized cost | $10,343,330 | $10,701,557 |
Short-term investments available for sale, at amortized cost | 859,167 | 801,758 |
Investment of funds received under securities lending agreements, at cost | 253,159 | 40,473 |
Equity securities available for sale, at cost | 578,520 | 562,534 |
Other investments available for sale, at cost | 292,287 | 264,747 |
Investment in joint venture, at cost | $100,000 | $100,000 |
Common shares, par value per share | $0.00 | $0.00 |
Common shares issued (shares) | 171,832,868 | 171,672,408 |
Common shares held in treasury (shares) | 47,072,027 | 44,304,474 |
Unaudited_Consolidated_Stateme
Unaudited Consolidated Statements of Income (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues | ||
Net premiums written | $1,066,995 | $1,064,990 |
Change in unearned premiums | -156,731 | -205,210 |
Net premiums earned | 910,264 | 859,780 |
Net investment income | 78,994 | 66,994 |
Net realized gains (losses) | 83,348 | 19,697 |
Other-than-temporary impairment losses | -7,247 | -2,971 |
Less investment impairments recognized in other comprehensive income, before taxes | 1,448 | 0 |
Net impairment losses recognized in earnings | -5,799 | -2,971 |
Other underwriting income | 11,536 | 1,582 |
Equity in net income of investment funds accounted for using the equity method | 5,889 | 3,253 |
Other income (loss) | -1,888 | -2,104 |
Total revenues | 1,082,344 | 946,231 |
Expenses | ||
Losses and loss adjustment expenses | 493,716 | 436,240 |
Acquisition expenses | 163,076 | 160,342 |
Other operating expenses | 157,882 | 145,799 |
Interest expense | 12,736 | 14,404 |
Net foreign exchange (gains) losses | -66,501 | 6,563 |
Total expenses | 760,909 | 763,348 |
Income before income taxes | 321,435 | 182,883 |
Income tax expense | -12,678 | -3,738 |
Net income | 308,757 | 179,145 |
Amounts attributable to noncontrolling interests | -25,421 | 3,355 |
Net income available to Arch | 283,336 | 182,500 |
Preferred dividends | -5,484 | -5,484 |
Net income available to Arch common shareholders | $277,852 | $177,016 |
Net income per common share | ||
Basic (per share) | $2.24 | $1.34 |
Diluted (per share) | $2.16 | $1.30 |
Weighted average common shares and common share equivalents outstanding | ||
Basic (shares) | 124,209,276 | 131,857,910 |
Diluted (shares) | 128,451,054 | 136,562,717 |
Unaudited_Consolidated_Stateme1
Unaudited Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Comprehensive Income | ||
Net income | $308,757 | $179,145 |
Unrealized appreciation (decline) in value of available-for-sale investments: | ||
Unrealized holding gains (losses) arising during period | 84,304 | 71,353 |
Portion of other-than-temporary impairment losses recognized in other comprehensive income, net of deferred income tax | -1,448 | 0 |
Reclassification of net realized (gains) losses, net of income taxes, included in net income | -30,932 | -21,249 |
Foreign currency translation adjustments | -22,757 | -1,349 |
Comprehensive income | 337,924 | 227,900 |
Amounts attributable to noncontrolling interests | -25,421 | 3,355 |
Comprehensive income available to Arch | $312,503 | $231,255 |
Unaudited_Consolidated_Stateme2
Unaudited Consolidated Statements of Changes in Shareholders' Equity (USD $) | Total | Non-Cumulative Preferred Shares | Common Shares | Additional Paid-in Capital | Retained Earnings | Accumulated other comprehensive income | Unrealized gains on available-for-sale securities | Foreign currency translation adjustments | Common Shares Held in Treasury, at Cost |
In Thousands | |||||||||
Balance at beginning of year at Dec. 31, 2013 | $325,000 | $565 | $299,517 | $6,042,154 | $74,964 | $80,692 | ($5,728) | ($1,094,704) | |
Common shares issued, net | 2 | 0 | |||||||
Exercise of stock options | 8,054 | ||||||||
Amortization of share-based compensation | 14,175 | ||||||||
Other | -1,243 | ||||||||
Net income | 179,145 | 179,145 | |||||||
Amounts attributable to noncontrolling interests | 3,355 | 3,355 | |||||||
Preferred share dividends | -5,484 | -5,484 | |||||||
Unrealized holding gains (losses) arising during period, net of reclassification adjustment | 50,104 | ||||||||
Portion of other-than-temporary impairment losses recognized in other comprehensive income, net of deferred income tax | 0 | 0 | |||||||
Foreign currency translation adjustments | -1,349 | -1,349 | |||||||
Shares repurchased for treasury | -2,122 | ||||||||
Noncontrolling interest | 793,496 | ||||||||
Total shareholders' equity at Mar. 31, 2014 | 6,685,629 | ||||||||
Balance at end of period at Mar. 31, 2014 | 5,892,133 | 325,000 | 567 | 320,503 | 6,219,170 | 123,719 | 130,796 | -7,077 | -1,096,826 |
Balance at beginning of year at Dec. 31, 2014 | 6,130,053 | 325,000 | 572 | 383,073 | 6,854,571 | 128,856 | 161,598 | -32,742 | -1,562,019 |
Common shares issued, net | 1 | 0 | |||||||
Exercise of stock options | 3,368 | ||||||||
Amortization of share-based compensation | 13,238 | ||||||||
Other | 78 | ||||||||
Net income | 308,757 | 308,757 | |||||||
Amounts attributable to noncontrolling interests | -25,421 | -25,421 | |||||||
Preferred share dividends | -5,484 | -5,484 | |||||||
Unrealized holding gains (losses) arising during period, net of reclassification adjustment | 53,372 | ||||||||
Portion of other-than-temporary impairment losses recognized in other comprehensive income, net of deferred income tax | -1,448 | -1,448 | |||||||
Foreign currency translation adjustments | -22,757 | -22,757 | |||||||
Shares repurchased for treasury | -165,055 | ||||||||
Noncontrolling interest | 789,594 | ||||||||
Total shareholders' equity at Mar. 31, 2015 | 7,078,296 | ||||||||
Balance at end of period at Mar. 31, 2015 | $6,288,702 | $325,000 | $573 | $399,757 | $7,132,423 | $158,023 | $213,522 | ($55,499) | ($1,727,074) |
Unaudited_Consolidated_Stateme3
Unaudited Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating Activities | ||
Net income | $308,757 | $179,145 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net realized gains | -87,907 | -22,367 |
Net impairment losses recognized in earnings | 5,799 | 2,971 |
Equity in net income or loss of investment funds accounted for using the equity method and other income or loss | -1,970 | 9,559 |
Share-based compensation | 13,238 | 14,175 |
Changes in: | ||
Reserve for losses and loss adjustment expenses, net of unpaid losses and loss adjustment expenses recoverable | 54,327 | 10,326 |
Unearned premiums, net of prepaid reinsurance premiums | 156,731 | 205,210 |
Premiums receivable | -192,247 | -242,616 |
Deferred acquisition costs, net | -36,304 | -41,988 |
Reinsurance balances payable | -16,022 | 5,428 |
Other liabilities | -48,856 | 59,285 |
Other items | -70,085 | 19,041 |
Net Cash Provided By Operating Activities | 85,461 | 198,169 |
Investing Activities | ||
Purchases of fixed maturity investments | -7,030,731 | -7,131,071 |
Purchases of equity securities | -125,863 | -89,227 |
Purchases of other investments | -685,497 | -304,454 |
Proceeds from the sale of fixed maturity investments | 6,857,459 | 7,014,281 |
Proceeds from the sale of equity securities | 125,906 | 49,614 |
Proceeds from sales, redemptions and maturities of other investments | 605,263 | 331,176 |
Proceeds from redemptions and maturities of fixed maturity investments | 272,657 | 168,484 |
Net sales (purchases) of short-term investments | 66,283 | 156,262 |
Change in cash collateral related to securities lending | -5,529 | 4,669 |
Purchase of business, net of cash acquired | -2,432 | -235,578 |
Purchases of furniture, equipment and other assets | -32,897 | -5,382 |
Net Cash Provided By (Used For) Investing Activities | 44,619 | -41,226 |
Financing Activities | ||
Purchases of common shares under share repurchase program | -162,898 | 0 |
Proceeds from common shares issued, net | -412 | 3,021 |
Change in cash collateral related to securities lending | 5,529 | -4,669 |
Third party investment in non-redeemable noncontrolling interests | 0 | 796,903 |
Third party investment in redeemable noncontrolling interests | 0 | 186,893 |
Dividends paid to redeemable noncontrolling interests | -4,816 | 0 |
Other | 29,779 | 1,700 |
Preferred dividends paid | -5,484 | -5,484 |
Net Cash Provided By (Used For) Financing Activities | -138,302 | 978,364 |
Effects of exchange rate changes on foreign currency cash | -6,468 | 241 |
Increase (decrease) in cash | -14,690 | 1,135,548 |
Cash beginning of year | 485,702 | 434,057 |
Cash end of period | 471,012 | 1,569,605 |
Income taxes paid | 3,569 | 1,600 |
Interest paid | $511 | $404 |
General
General | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General |
Arch Capital Group Ltd. (“ACGL”) is a Bermuda public limited liability company which provides insurance and reinsurance on a worldwide basis through its subsidiaries (together with ACGL, the “Company”). The Company’s consolidated financial statements include the results of Watford Holdings Ltd., the parent of Watford Re Ltd. (see Note 3). | |
The interim consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). All significant intercompany transactions and balances have been eliminated in consolidation. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and assumptions. In the opinion of management, the accompanying unaudited interim consolidated financial statements reflect all adjustments (consisting of normally recurring accruals) necessary for a fair statement of results on an interim basis. The results of any interim period are not necessarily indicative of the results for a full year or any future periods. | |
Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted; however, management believes that the disclosures are adequate to make the information presented not misleading. This report should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 (“2014 Form 10-K”), including the Company’s audited consolidated financial statements and related notes. | |
The Company has reclassified the presentation of certain prior year information to conform to the current presentation. Such reclassifications had no effect on the Company’s net income, comprehensive income, shareholders’ equity or cash flows. Tabular amounts are in U.S. Dollars in thousands, except share amounts, unless otherwise noted. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
A new accounting standard issued in the 2014 second quarter will change the manner in which most companies recognize revenue. The standard requires that revenue reflect the transfer of goods or services to customers based on the consideration or payment the company expects to be entitled to in exchange for those goods or services; however, the standard does not change the accounting for insurance contracts or financial instruments. The new standard also requires enhanced disclosures about revenue. This accounting guidance is effective in the 2017 first quarter and may be applied on a full retrospective or modified retrospective approach. However, there is currently a proposal to defer the effective date by one year. The Company is assessing the impact the implementation of this standard will have on its consolidated financial statements. | |
A new accounting standard was issued in the 2015 first quarter providing targeted improvements to consolidation guidance for limited partnerships and other similarly structured entities. The new standard addresses instances where a reporting entity consolidates another entity when the reporting entity is simply acting on the behalf of others, amongst other related issues. While the standard is targeted, the application is relevant for all companies that are required to assess whether or not to consolidate certain entities. The standard is effective in the 2016 first quarter and early adoption is permitted. The Company is assessing the impact the implementation of this standard will have on its consolidated financial statements. | |
In April 2015, new accounting guidance was issued relating to the presentation of debt issuance costs in the balance sheet. The new guidance requires that those costs be presented in the balance sheet as a deduction to the carrying amount of the related debt rather than as a separate asset. The new guidance is effective in the 2016 first quarter and early adoption is permitted. The Company is assessing the impact the implementation of this standard will have on its consolidated financial statements. |
Variable_Interest_Entities_and
Variable Interest Entities and Noncontrolling Interests | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Noncontrolling Interest [Abstract] | ||||||||
Variable Interest Entity and Noncontrolling Interests | Variable Interest Entity and Noncontrolling Interests | |||||||
Variable interest entity | ||||||||
On March 20, 2014, the Company invested $100.0 million and acquired approximately 11% of Watford Holdings Ltd.’s common equity and a warrant to purchase additional common equity. Watford Holdings Ltd. is the parent of Watford Re Ltd., a multi-line Bermuda reinsurance company (together with Watford Holdings Ltd., “Watford Re”). Watford Re is considered a variable interest entity (“VIE”) and the Company concluded that it is the primary beneficiary of Watford Re. As such, the results of Watford Re are included in the Company’s consolidated financial statements. | ||||||||
The Company concluded that Watford Re represents a separate operating segment and provides the income statement and total investable assets, total assets and total liabilities of Watford Re within Note 5. At March 31, 2015, Watford Re’s liabilities included unearned premiums of $233.0 million and reserves for losses and loss adjustment expenses of $109.4 million, some of which is related to transactions with the Company. During the 2015 first quarter, Watford Re generated $69.9 million of cash provided by operating activities and $22.9 million of cash provided by financing activities, partially offset by $35.3 million of cash used for investing activities. | ||||||||
Because Watford Re is an independent company, the assets of Watford Re can be used only to settle obligations of Watford Re and Watford Re is solely responsible for its own liabilities and commitments. The Company’s financial exposure to Watford Re is limited to its investment in Watford Re’s common shares and counterparty credit risk (mitigated by collateral) arising from the reinsurance transactions. | ||||||||
Non-redeemable noncontrolling interests | ||||||||
The Company accounts for the portion of Watford Re’s common equity attributable to third party investors in the shareholders’ equity section of its consolidated balance sheets. The noncontrolling ownership in Watford Re’s common shares was approximately 89% at March 31, 2015. The portion of Watford Re’s income or loss attributable to third party investors is recorded in the consolidated statements of income in ‘amounts attributable to noncontrolling interests.’ The following table sets forth activity in the non-redeemable noncontrolling interests: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Balance, beginning of period | $ | 769,081 | $ | — | ||||
Sale of shares to noncontrolling interests | — | 796,903 | ||||||
Amounts attributable to noncontrolling interests | 20,513 | (3,407 | ) | |||||
Balance, end of period | $ | 789,594 | $ | 793,496 | ||||
Redeemable noncontrolling interests | ||||||||
The Company accounts for redeemable noncontrolling interests in the mezzanine section of its consolidated balance sheets in accordance with applicable accounting guidance. Such redeemable noncontrolling interests represent the 9,065,200 cumulative redeemable preference shares (“Watford Preference Shares”) issued in late March 2014 with a par value of $0.01 per share and a liquidation preference of $25.00 per share. Third party investors own 100% of the Watford Preference Shares at March 31, 2015. Preferred dividends, including the accretion of the discount and issuance costs, are included in ‘amounts attributable to noncontrolling interests’ in the Company’s consolidated statements of income. | ||||||||
The portion of Watford Re’s income or loss attributable to third party investors is recorded in the consolidated statements of income in ‘amounts attributable to noncontrolling interests.’ During the 2015 first quarter, amounts attributable to noncontrolling interests of $25.4 million reflected the net impact of amounts attributable to non-redeemable noncontrolling interests of $20.5 million and amounts attributable to redeemable noncontrolling interests of $4.9 million, as described above. |
Earnings_Per_Common_Share
Earnings Per Common Share | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Earnings Per Common Share | Earnings Per Common Share | |||||||
The following table sets forth the computation of basic and diluted earnings per common share: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Numerator: | ||||||||
Net income | $ | 308,757 | $ | 179,145 | ||||
Amounts attributable to noncontrolling interests | (25,421 | ) | 3,355 | |||||
Net income available to Arch | 283,336 | 182,500 | ||||||
Preferred dividends | (5,484 | ) | (5,484 | ) | ||||
Net income available to Arch common shareholders | $ | 277,852 | $ | 177,016 | ||||
Denominator: | ||||||||
Weighted average common shares outstanding — basic | 124,209,276 | 131,857,910 | ||||||
Effect of dilutive common share equivalents: | ||||||||
Nonvested restricted shares | 1,416,801 | 1,346,401 | ||||||
Stock options (1) | 2,824,977 | 3,358,406 | ||||||
Weighted average common shares and common share equivalents outstanding — diluted | 128,451,054 | 136,562,717 | ||||||
Earnings per common share: | ||||||||
Basic | $ | 2.24 | $ | 1.34 | ||||
Diluted | $ | 2.16 | $ | 1.3 | ||||
_________________________________________________ | ||||||||
-1 | Certain stock options were not included in the computation of diluted earnings per share where the exercise price of the stock options exceeded the average market price and would have been anti-dilutive or where, when applying the treasury stock method to in-the-money options, the sum of the proceeds, including unrecognized compensation, exceeded the average market price and would have been anti-dilutive. For the 2015 first quarter and 2014 first quarter, the number of stock options excluded were 703,853 and 759,172, respectively. |
Segment_Information
Segment Information | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||
Segment Information | Segment Information | |||||||||||||||||||||||
The Company classifies its businesses into three underwriting segments — insurance, reinsurance and mortgage — and two other operating segments — ‘other’ and corporate (non-underwriting). The Company determined its reportable segments using the management approach described in accounting guidance regarding disclosures about segments of an enterprise and related information. The accounting policies of the segments are the same as those used for the preparation of the Company’s consolidated financial statements. Intersegment business is allocated to the segment accountable for the underwriting results. | ||||||||||||||||||||||||
The Company’s insurance, reinsurance and mortgage segments each have managers who are responsible for the overall profitability of their respective segments and who are directly accountable to the Company’s chief operating decision makers, the Chairman, President and Chief Executive Officer of ACGL and the Chief Financial Officer of ACGL. The chief operating decision makers do not assess performance, measure return on equity or make resource allocation decisions on a line of business basis. Management measures segment performance for its three underwriting segments based on underwriting income or loss. The Company does not manage its assets by underwriting segment, with the exception of goodwill and intangible assets, and, accordingly, investment income is not allocated to each underwriting segment. | ||||||||||||||||||||||||
The insurance segment consists of the Company’s insurance underwriting units which offer specialty product lines on a worldwide basis. Product lines include: construction and national accounts; excess and surplus casualty; lenders products; professional lines; programs; property, energy, marine and aviation; travel, accident and health; and other (consisting of alternative markets, excess workers' compensation and surety business). | ||||||||||||||||||||||||
The reinsurance segment consists of the Company’s reinsurance underwriting units which offer specialty product lines on a worldwide basis. Product lines include: casualty; marine and aviation; other specialty; property catastrophe; property excluding property catastrophe (losses on a single risk, both excess of loss and pro rata); and other (consisting of life reinsurance, casualty clash and other). | ||||||||||||||||||||||||
The mortgage segment consists of the Company’s mortgage insurance and reinsurance business and includes the results of Arch Mortgage Insurance Company (“Arch MI U.S.”). Arch MI U.S. is approved as an eligible mortgage insurer by Federal National Mortgage Association and Federal Home Loan Mortgage Corporation (each a government sponsored enterprise, or “GSE”) and provides mortgage insurance to banks, credit unions and other lenders nationwide. The mortgage segment also provides reinsurance on a global basis, direct mortgage insurance in Europe and various risk-sharing products to government agencies and mortgage lenders. | ||||||||||||||||||||||||
The corporate (non-underwriting) segment results include net investment income, other income (loss), other expenses incurred by the Company, interest expense, net realized gains or losses, net impairment losses included in earnings, equity in net income (loss) of investment funds accounted for using the equity method, net foreign exchange gains or losses, income taxes and items related to the Company’s non-cumulative preferred shares. Such amounts exclude the results of the ‘other’ segment. | ||||||||||||||||||||||||
The ‘other’ segment includes the results of Watford Re (see Note 3). Watford Re has its own management and board of directors that is responsible for the overall profitability of the ‘other’ segment. For the ‘other’ segment, performance is measured based on net income or loss. | ||||||||||||||||||||||||
The following tables summarize the Company’s underwriting income or loss by segment, together with a reconciliation of underwriting income or loss to net income available to common shareholders: | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
31-Mar-15 | ||||||||||||||||||||||||
Insurance | Reinsurance | Mortgage | Sub-Total | Other | Total | |||||||||||||||||||
Gross premiums written (1) | $ | 766,153 | $ | 485,112 | $ | 60,541 | $ | 1,311,678 | $ | 128,633 | $ | 1,342,022 | ||||||||||||
Premiums ceded | (224,150 | ) | (136,569 | ) | (8,670 | ) | (369,261 | ) | (4,055 | ) | (275,027 | ) | ||||||||||||
Net premiums written | 542,003 | 348,543 | 51,871 | 942,417 | 124,578 | 1,066,995 | ||||||||||||||||||
Change in unearned premiums | (34,089 | ) | (68,826 | ) | (1,504 | ) | (104,419 | ) | (52,312 | ) | (156,731 | ) | ||||||||||||
Net premiums earned | 507,914 | 279,717 | 50,367 | 837,998 | 72,266 | 910,264 | ||||||||||||||||||
Other underwriting income | 427 | 1,429 | 7,718 | 9,574 | 1,962 | 11,536 | ||||||||||||||||||
Losses and loss adjustment expenses | (317,896 | ) | (112,532 | ) | (13,809 | ) | (444,237 | ) | (49,479 | ) | (493,716 | ) | ||||||||||||
Acquisition expenses, net | (75,078 | ) | (56,604 | ) | (10,418 | ) | (142,100 | ) | (20,976 | ) | (163,076 | ) | ||||||||||||
Other operating expenses | (88,119 | ) | (38,044 | ) | (20,369 | ) | (146,532 | ) | (2,005 | ) | (148,537 | ) | ||||||||||||
Underwriting income (loss) | $ | 27,248 | $ | 73,966 | $ | 13,489 | 114,703 | 1,768 | 116,471 | |||||||||||||||
Net investment income | 70,288 | 8,706 | 78,994 | |||||||||||||||||||||
Net realized gains (losses) | 65,509 | 17,839 | 83,348 | |||||||||||||||||||||
Net impairment losses recognized in earnings | (5,799 | ) | — | (5,799 | ) | |||||||||||||||||||
Equity in net income of investment funds accounted for using the equity method | 5,889 | — | 5,889 | |||||||||||||||||||||
Other income (loss) | (1,888 | ) | — | (1,888 | ) | |||||||||||||||||||
Other expenses | (9,345 | ) | — | (9,345 | ) | |||||||||||||||||||
Interest expense | (12,736 | ) | — | (12,736 | ) | |||||||||||||||||||
Net foreign exchange gains (losses) | 66,853 | (352 | ) | 66,501 | ||||||||||||||||||||
Income before income taxes | 293,474 | 27,961 | 321,435 | |||||||||||||||||||||
Income tax expense | (12,678 | ) | — | (12,678 | ) | |||||||||||||||||||
Net income | 280,796 | 27,961 | 308,757 | |||||||||||||||||||||
Dividends attributable to redeemable noncontrolling interests | — | (4,908 | ) | (4,908 | ) | |||||||||||||||||||
Amounts attributable to noncontrolling interests | — | (20,513 | ) | (20,513 | ) | |||||||||||||||||||
Net income available to Arch | 280,796 | 2,540 | 283,336 | |||||||||||||||||||||
Preferred dividends | (5,484 | ) | — | (5,484 | ) | |||||||||||||||||||
Net income available to Arch common shareholders | $ | 275,312 | $ | 2,540 | $ | 277,852 | ||||||||||||||||||
Underwriting Ratios | ||||||||||||||||||||||||
Loss ratio | 62.6 | % | 40.2 | % | 27.4 | % | 53 | % | 68.5 | % | 54.2 | % | ||||||||||||
Acquisition expense ratio | 14.8 | % | 20.2 | % | 20.7 | % | 17 | % | 29 | % | 17.9 | % | ||||||||||||
Other operating expense ratio | 17.3 | % | 13.6 | % | 40.4 | % | 17.5 | % | 2.8 | % | 16.3 | % | ||||||||||||
Combined ratio | 94.7 | % | 74 | % | 88.5 | % | 87.5 | % | 100.3 | % | 88.4 | % | ||||||||||||
Goodwill and intangible assets | $ | 30,526 | $ | 2,687 | $ | 73,532 | $ | 106,745 | $ | — | $ | 106,745 | ||||||||||||
Total investable assets | $ | 14,456,612 | $ | 1,267,588 | $ | 15,724,200 | ||||||||||||||||||
Total assets | 21,227,143 | 1,622,537 | 22,849,680 | |||||||||||||||||||||
Total liabilities | 15,036,245 | 515,535 | 15,551,780 | |||||||||||||||||||||
_________________________________________________ | ||||||||||||||||||||||||
-1 | Certain amounts included in the gross premiums written of each segment are related to intersegment transactions. Accordingly, the sum of gross premiums written for each segment does not agree to the total gross premiums written as shown in the table above due to the elimination of intersegment transactions in the total. | |||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
31-Mar-14 | ||||||||||||||||||||||||
Insurance | Reinsurance | Mortgage | Sub-Total | Other | Total | |||||||||||||||||||
Gross premiums written (1) | $ | 730,646 | $ | 517,053 | $ | 47,907 | $ | 1,295,136 | $ | 32,194 | $ | 1,295,136 | ||||||||||||
Premiums ceded | (185,044 | ) | (73,127 | ) | (4,639 | ) | (262,340 | ) | — | (230,146 | ) | |||||||||||||
Net premiums written | 545,602 | 443,926 | 43,268 | 1,032,796 | 32,194 | 1,064,990 | ||||||||||||||||||
Change in unearned premiums | (68,101 | ) | (102,578 | ) | (4,503 | ) | (175,182 | ) | (30,028 | ) | (205,210 | ) | ||||||||||||
Net premiums earned | 477,501 | 341,348 | 38,765 | 857,614 | 2,166 | 859,780 | ||||||||||||||||||
Other underwriting income | 500 | 316 | 766 | 1,582 | — | 1,582 | ||||||||||||||||||
Losses and loss adjustment expenses | (286,770 | ) | (139,636 | ) | (8,478 | ) | (434,884 | ) | (1,356 | ) | (436,240 | ) | ||||||||||||
Acquisition expenses, net | (76,932 | ) | (73,433 | ) | (9,154 | ) | (159,519 | ) | (823 | ) | (160,342 | ) | ||||||||||||
Other operating expenses | (81,144 | ) | (36,195 | ) | (13,876 | ) | (131,215 | ) | (1,109 | ) | (132,324 | ) | ||||||||||||
Underwriting income | $ | 33,155 | $ | 92,400 | $ | 8,023 | 133,578 | (1,122 | ) | 132,456 | ||||||||||||||
Net investment income | 66,993 | 1 | 66,994 | |||||||||||||||||||||
Net realized gains | 19,697 | — | 19,697 | |||||||||||||||||||||
Net impairment losses recognized in earnings | (2,971 | ) | — | (2,971 | ) | |||||||||||||||||||
Equity in net income of investment funds accounted for using the equity method | 3,253 | — | 3,253 | |||||||||||||||||||||
Other income (loss) | (2,104 | ) | — | (2,104 | ) | |||||||||||||||||||
Other expenses | (10,799 | ) | (2,676 | ) | (13,475 | ) | ||||||||||||||||||
Interest expense | (14,404 | ) | — | (14,404 | ) | |||||||||||||||||||
Net foreign exchange losses | (6,656 | ) | 93 | (6,563 | ) | |||||||||||||||||||
Income before income taxes | 186,587 | (3,704 | ) | 182,883 | ||||||||||||||||||||
Income tax expense | (3,738 | ) | — | (3,738 | ) | |||||||||||||||||||
Net income | 182,849 | (3,704 | ) | 179,145 | ||||||||||||||||||||
Dividends attributable to redeemable noncontrolling interests | — | (52 | ) | (52 | ) | |||||||||||||||||||
Amounts attributable to noncontrolling interests | — | 3,407 | 3,407 | |||||||||||||||||||||
Net income available to Arch | 182,849 | (349 | ) | 182,500 | ||||||||||||||||||||
Preferred dividends | (5,484 | ) | — | (5,484 | ) | |||||||||||||||||||
Net income available to Arch common shareholders | $ | 177,365 | $ | (349 | ) | $ | 177,016 | |||||||||||||||||
Underwriting Ratios | ||||||||||||||||||||||||
Loss ratio | 60.1 | % | 40.9 | % | 21.9 | % | 50.7 | % | 62.6 | % | 50.7 | % | ||||||||||||
Acquisition expense ratio | 16.1 | % | 21.5 | % | 23.6 | % | 18.6 | % | 38 | % | 18.6 | % | ||||||||||||
Other operating expense ratio | 17 | % | 10.6 | % | 35.8 | % | 15.3 | % | 51.2 | % | 15.4 | % | ||||||||||||
Combined ratio | 93.2 | % | 73 | % | 81.3 | % | 84.6 | % | 151.8 | % | 84.7 | % | ||||||||||||
Goodwill and intangible assets | $ | 20,184 | $ | 5,803 | $ | 94,888 | $ | 120,875 | $ | — | $ | 120,875 | ||||||||||||
Total investable assets | $ | 14,261,106 | $ | 1,083,280 | $ | 15,344,386 | ||||||||||||||||||
Total assets | 20,653,897 | 1,146,461 | 21,800,358 | |||||||||||||||||||||
Total liabilities | 14,860,124 | 35,371 | 14,895,495 | |||||||||||||||||||||
_________________________________________________ | ||||||||||||||||||||||||
-1 | Certain amounts included in the gross premiums written of each segment are related to intersegment transactions. Accordingly, the sum of gross premiums written for each segment does not agree to the total gross premiums written as shown in the table above due to the elimination of intersegment transactions in the total. |
Investment_Information
Investment Information | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Disclosure Investment Information [Abstract] | ||||||||||||||||||||||||
Investment Information | Investment Information | |||||||||||||||||||||||
At March 31, 2015, total investable assets of $15.72 billion included $14.46 billion managed by the Company and $1.27 billion attributable to Watford Re. | ||||||||||||||||||||||||
Available For Sale Investments | ||||||||||||||||||||||||
The following table summarizes the fair value and cost or amortized cost of the Company’s investments classified as available for sale: | ||||||||||||||||||||||||
Estimated | Gross | Gross | Cost or | OTTI | ||||||||||||||||||||
Fair | Unrealized | Unrealized | Amortized | Unrealized | ||||||||||||||||||||
Value | Gains | Losses | Cost | Losses (2) | ||||||||||||||||||||
31-Mar-15 | ||||||||||||||||||||||||
Fixed maturities and fixed maturities pledged under securities lending agreements (1): | ||||||||||||||||||||||||
Corporate bonds | $ | 3,119,437 | $ | 62,922 | $ | (46,982 | ) | $ | 3,103,497 | $ | (1,143 | ) | ||||||||||||
Mortgage backed securities | 821,611 | 20,996 | (2,065 | ) | 802,680 | (3,557 | ) | |||||||||||||||||
Municipal bonds | 1,626,580 | 33,377 | (2,013 | ) | 1,595,216 | — | ||||||||||||||||||
Commercial mortgage backed securities | 1,106,332 | 23,083 | (2,497 | ) | 1,085,746 | — | ||||||||||||||||||
U.S. government and government agencies | 1,517,834 | 16,821 | (776 | ) | 1,501,789 | — | ||||||||||||||||||
Non-U.S. government securities | 831,200 | 23,118 | (52,685 | ) | 860,767 | — | ||||||||||||||||||
Asset backed securities | 1,657,931 | 14,080 | (3,563 | ) | 1,647,414 | (22 | ) | |||||||||||||||||
Total | 10,680,925 | 194,397 | (110,581 | ) | 10,597,109 | (4,722 | ) | |||||||||||||||||
Equity securities | 687,713 | 121,660 | (12,467 | ) | 578,520 | — | ||||||||||||||||||
Other investments | 329,677 | 37,964 | (574 | ) | 292,287 | (165 | ) | |||||||||||||||||
Short-term investments | 855,032 | 16 | (4,151 | ) | 859,167 | — | ||||||||||||||||||
Total | $ | 12,553,347 | $ | 354,037 | $ | (127,773 | ) | $ | 12,327,083 | $ | (4,887 | ) | ||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
Fixed maturities and fixed maturities pledged under securities lending agreements (1): | ||||||||||||||||||||||||
Corporate bonds | $ | 3,108,513 | $ | 37,928 | $ | (38,974 | ) | $ | 3,109,559 | $ | (317 | ) | ||||||||||||
Mortgage backed securities | 943,343 | 18,843 | (3,842 | ) | 928,342 | (3,307 | ) | |||||||||||||||||
Municipal bonds | 1,494,122 | 31,227 | (1,044 | ) | 1,463,939 | — | ||||||||||||||||||
Commercial mortgage backed securities | 1,114,528 | 14,594 | (3,822 | ) | 1,103,756 | — | ||||||||||||||||||
U.S. government and government agencies | 1,447,972 | 8,345 | (1,760 | ) | 1,441,387 | — | ||||||||||||||||||
Non-U.S. government securities | 1,015,153 | 21,311 | (37,203 | ) | 1,031,045 | — | ||||||||||||||||||
Asset backed securities | 1,677,941 | 8,425 | (6,089 | ) | 1,675,605 | (22 | ) | |||||||||||||||||
Total | 10,801,572 | 140,673 | (92,734 | ) | 10,753,633 | (3,646 | ) | |||||||||||||||||
Equity securities | 658,182 | 109,012 | (13,364 | ) | 562,534 | — | ||||||||||||||||||
Other investments | 296,224 | 31,839 | (362 | ) | 264,747 | — | ||||||||||||||||||
Short-term investments | 797,226 | 738 | (5,270 | ) | 801,758 | — | ||||||||||||||||||
Total | $ | 12,553,204 | $ | 282,262 | $ | (111,730 | ) | $ | 12,382,672 | $ | (3,646 | ) | ||||||||||||
_________________________________________________ | ||||||||||||||||||||||||
-1 | In securities lending transactions, the Company receives collateral in excess of the fair value of the fixed maturities and short-term investments pledged. For purposes of this table, the Company has excluded the collateral received and reinvested and included the fixed maturities and short-term investments pledged. See “—Securities Lending Agreements.” | |||||||||||||||||||||||
-2 | Represents the total other-than-temporary impairments (“OTTI”) recognized in accumulated other comprehensive income (“AOCI”). It does not include the change in fair value subsequent to the impairment measurement date. At March 31, 2015, the net unrealized loss related to securities for which a non-credit OTTI was recognized in AOCI was $0.3 million, compared to a net unrealized gain of $0.9 million at December 31, 2014. | |||||||||||||||||||||||
The following table summarizes, for all available for sale securities in an unrealized loss position, the fair value and gross unrealized loss by length of time the security has been in a continual unrealized loss position: | ||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Estimated | Gross | Estimated | Gross | Estimated | Gross | |||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
31-Mar-15 | ||||||||||||||||||||||||
Fixed maturities and fixed maturities pledged under securities lending agreements (1): | ||||||||||||||||||||||||
Corporate bonds | $ | 810,064 | $ | (40,337 | ) | $ | 60,249 | $ | (6,645 | ) | $ | 870,313 | $ | (46,982 | ) | |||||||||
Mortgage backed securities | 142,833 | (1,333 | ) | 29,939 | (732 | ) | 172,772 | (2,065 | ) | |||||||||||||||
Municipal bonds | 241,211 | (1,494 | ) | 13,573 | (519 | ) | 254,784 | (2,013 | ) | |||||||||||||||
Commercial mortgage backed securities | 194,085 | (2,375 | ) | 30,774 | (122 | ) | 224,859 | (2,497 | ) | |||||||||||||||
U.S. government and government agencies | 148,004 | (776 | ) | — | — | 148,004 | (776 | ) | ||||||||||||||||
Non-U.S. government securities | 376,737 | (43,321 | ) | 38,091 | (9,364 | ) | 414,828 | (52,685 | ) | |||||||||||||||
Asset backed securities | 331,543 | (2,072 | ) | 157,748 | (1,491 | ) | 489,291 | (3,563 | ) | |||||||||||||||
Total | 2,244,477 | (91,708 | ) | 330,374 | (18,873 | ) | 2,574,851 | (110,581 | ) | |||||||||||||||
Equity securities | 226,711 | (12,467 | ) | — | — | 226,711 | (12,467 | ) | ||||||||||||||||
Other investments | 128,867 | (574 | ) | — | — | 128,867 | (574 | ) | ||||||||||||||||
Short-term investments | 55,615 | (4,151 | ) | — | — | 55,615 | (4,151 | ) | ||||||||||||||||
Total | $ | 2,655,670 | $ | (108,900 | ) | $ | 330,374 | $ | (18,873 | ) | $ | 2,986,044 | $ | (127,773 | ) | |||||||||
31-Dec-14 | ||||||||||||||||||||||||
Fixed maturities and fixed maturities pledged under securities lending agreements (1): | ||||||||||||||||||||||||
Corporate bonds | $ | 1,309,637 | $ | (32,903 | ) | $ | 148,963 | $ | (6,071 | ) | $ | 1,458,600 | $ | (38,974 | ) | |||||||||
Mortgage backed securities | 293,624 | (1,476 | ) | 59,107 | (2,366 | ) | 352,731 | (3,842 | ) | |||||||||||||||
Municipal bonds | 210,614 | (588 | ) | 13,643 | (456 | ) | 224,257 | (1,044 | ) | |||||||||||||||
Commercial mortgage backed securities | 232,147 | (770 | ) | 125,894 | (3,052 | ) | 358,041 | (3,822 | ) | |||||||||||||||
U.S. government and government agencies | 618,381 | (1,626 | ) | 3,438 | (134 | ) | 621,819 | (1,760 | ) | |||||||||||||||
Non-U.S. government securities | 510,766 | (31,172 | ) | 46,910 | (6,031 | ) | 557,676 | (37,203 | ) | |||||||||||||||
Asset backed securities | 612,950 | (2,486 | ) | 243,452 | (3,603 | ) | 856,402 | (6,089 | ) | |||||||||||||||
Total | 3,788,119 | (71,021 | ) | 641,407 | (21,713 | ) | 4,429,526 | (92,734 | ) | |||||||||||||||
Equity securities | 181,002 | (13,364 | ) | — | — | 181,002 | (13,364 | ) | ||||||||||||||||
Other investments | 59,638 | (362 | ) | — | — | 59,638 | (362 | ) | ||||||||||||||||
Short-term investments | 79,271 | (5,270 | ) | — | — | 79,271 | (5,270 | ) | ||||||||||||||||
Total | $ | 4,108,030 | $ | (90,017 | ) | $ | 641,407 | $ | (21,713 | ) | $ | 4,749,437 | $ | (111,730 | ) | |||||||||
_________________________________________________ | ||||||||||||||||||||||||
-1 | In securities lending transactions, the Company receives collateral in excess of the fair value of the fixed maturities and short-term investments pledged. For purposes of this table, the Company has excluded the collateral received and reinvested and included the fixed maturities and short-term investments pledged. See “—Securities Lending Agreements.” | |||||||||||||||||||||||
At March 31, 2015, on a lot level basis, approximately 1,360 security lots out of a total of approximately 5,130 security lots were in an unrealized loss position and the largest single unrealized loss from a single lot in the Company’s fixed maturity portfolio was $3.3 million. At December 31, 2014, on a lot level basis, approximately 1,900 security lots out of a total of approximately 4,790 security lots were in an unrealized loss position and the largest single unrealized loss from a single lot in the Company’s fixed maturity portfolio was $2.9 million. | ||||||||||||||||||||||||
The contractual maturities of the Company’s fixed maturities and fixed maturities pledged under securities lending agreements are shown in the following table. Expected maturities, which are management’s best estimates, will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | ||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||||||||||||||
Maturity | Estimated | Amortized | Estimated | Amortized | ||||||||||||||||||||
Fair | Cost | Fair | Cost | |||||||||||||||||||||
Value | Value | |||||||||||||||||||||||
Due in one year or less | $ | 267,975 | $ | 268,219 | $ | 235,930 | $ | 233,794 | ||||||||||||||||
Due after one year through five years | 3,824,832 | 3,819,036 | 4,074,562 | 4,077,408 | ||||||||||||||||||||
Due after five years through 10 years | 2,651,327 | 2,630,130 | 2,475,726 | 2,461,356 | ||||||||||||||||||||
Due after 10 years | 350,917 | 343,884 | 279,542 | 273,372 | ||||||||||||||||||||
7,095,051 | 7,061,269 | 7,065,760 | 7,045,930 | |||||||||||||||||||||
Mortgage backed securities | 821,611 | 802,680 | 943,343 | 928,342 | ||||||||||||||||||||
Commercial mortgage backed securities | 1,106,332 | 1,085,746 | 1,114,528 | 1,103,756 | ||||||||||||||||||||
Asset backed securities | 1,657,931 | 1,647,414 | 1,677,941 | 1,675,605 | ||||||||||||||||||||
Total | $ | 10,680,925 | $ | 10,597,109 | $ | 10,801,572 | $ | 10,753,633 | ||||||||||||||||
Securities Lending Agreements | ||||||||||||||||||||||||
The Company operates a securities lending program under which certain of its fixed income portfolio securities are loaned to third parties, primarily major brokerage firms, for short periods of time through a lending agent. The fair value and amortized cost of fixed maturities and short-term investments pledged under securities lending agreements were $253.1 million and $253.8 million, respectively, at March 31, 2015, compared to $50.8 million and $52.1 million, respectively, at December 31, 2014. At March 31, 2015, the fair value of the cash collateral received on securities lending was $49.9 million and the fair value of non-cash collateral received was $207.2 million. At December 31, 2014, the fair value of the cash collateral received on securities lending was $44.3 million and the fair value of non-cash collateral received was nil. Such amounts included approximately $5.7 million of sub-prime securities at March 31, 2015, compared to $5.8 million at December 31, 2014. The Company maintains legal control over the securities it lends, retains the earnings and cash flows associated with the loaned securities and receives a fee from the borrower for the temporary use of the securities. An indemnification agreement with the lending agent protects the Company in the event a borrower becomes insolvent or fails to return any of the securities on loan to the Company. | ||||||||||||||||||||||||
Other Investments | ||||||||||||||||||||||||
The following table summarizes the Company’s other investments, including available for sale and fair value option components: | ||||||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Available for sale: | ||||||||||||||||||||||||
Asian and emerging markets | $ | 270,087 | $ | 236,586 | ||||||||||||||||||||
Investment grade fixed income | 59,590 | 59,638 | ||||||||||||||||||||||
Total available for sale | 329,677 | 296,224 | ||||||||||||||||||||||
Fair value option: | ||||||||||||||||||||||||
Term loan investments (par value: $1,055,264 and $1,094,337) | 1,044,762 | 1,073,649 | ||||||||||||||||||||||
Mezzanine debt funds | 121,570 | 121,341 | ||||||||||||||||||||||
Credit related funds | 138,576 | 114,436 | ||||||||||||||||||||||
Investment grade fixed income | 63,162 | 69,108 | ||||||||||||||||||||||
Asian and emerging markets | 26,846 | 25,800 | ||||||||||||||||||||||
Other (1) | 162,908 | 147,573 | ||||||||||||||||||||||
Total fair value option | 1,557,824 | 1,551,907 | ||||||||||||||||||||||
Total | $ | 1,887,501 | $ | 1,848,131 | ||||||||||||||||||||
_________________________________________________ | ||||||||||||||||||||||||
-1 | Includes fund investments with strategies in mortgage servicing rights, transportation and infrastructure assets and other. | |||||||||||||||||||||||
Certain of the Company’s other investments are in investment funds for which the Company has the option to redeem at agreed upon values as described in each investment fund’s subscription agreement. Depending on the terms of the various subscription agreements, investments in investment funds may be redeemed daily, monthly, quarterly or on other terms. Two common redemption restrictions which may impact the Company’s ability to redeem these investment funds are gates and lockups. A gate is a suspension of redemptions which may be implemented by the general partner or investment manager of the fund in order to defer, in whole or in part, the redemption request in the event the aggregate amount of redemption requests exceeds a predetermined percentage of the investment fund’s net assets which may otherwise hinder the general partner or investment manager’s ability to liquidate holdings in an orderly fashion in order to generate the cash necessary to fund extraordinarily large redemption payouts. A lockup period is the initial amount of time an investor is contractually required to hold the security before having the ability to redeem. If the investment funds are eligible to be redeemed, the time to redeem such fund can take weeks or months following the notification. | ||||||||||||||||||||||||
Fair Value Option | ||||||||||||||||||||||||
The following table summarizes the Company’s assets and liabilities which are accounted for using the fair value option: | ||||||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Fixed maturities | $ | 757,467 | $ | 632,024 | ||||||||||||||||||||
Other investments | 1,557,824 | 1,551,907 | ||||||||||||||||||||||
Short-term investments | 125,788 | 251,601 | ||||||||||||||||||||||
Equity securities | 907 | — | ||||||||||||||||||||||
Investments accounted for using the fair value option | $ | 2,441,986 | $ | 2,435,532 | ||||||||||||||||||||
Net Investment Income | ||||||||||||||||||||||||
The components of net investment income were derived from the following sources: | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Fixed maturities | $ | 68,596 | $ | 62,449 | ||||||||||||||||||||
Term loan investments | 14,744 | 5,669 | ||||||||||||||||||||||
Equity securities (dividends) | 2,679 | 2,921 | ||||||||||||||||||||||
Short-term investments | 196 | 405 | ||||||||||||||||||||||
Other (1) | 12,747 | 4,719 | ||||||||||||||||||||||
Gross investment income | 98,962 | 76,163 | ||||||||||||||||||||||
Investment expenses | (19,968 | ) | (9,169 | ) | ||||||||||||||||||||
Net investment income | $ | 78,994 | $ | 66,994 | ||||||||||||||||||||
_________________________________________________ | ||||||||||||||||||||||||
-1 | Includes dividends on investment funds and other items. | |||||||||||||||||||||||
Net Realized Gains (Losses) | ||||||||||||||||||||||||
Net realized gains (losses) were as follows, excluding other-than-temporary impairment provisions: | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Available for sale securities: | ||||||||||||||||||||||||
Gross gains on investment sales | $ | 97,591 | $ | 66,051 | ||||||||||||||||||||
Gross losses on investment sales | (55,160 | ) | (40,013 | ) | ||||||||||||||||||||
Change in fair value of assets and liabilities accounted for using the fair value option: | ||||||||||||||||||||||||
Fixed maturities | (3,302 | ) | (1,643 | ) | ||||||||||||||||||||
Other investments | 6,287 | 10,776 | ||||||||||||||||||||||
Equity securities | (2 | ) | — | |||||||||||||||||||||
Short-term investments | 5,846 | — | ||||||||||||||||||||||
Derivative instruments (1) | 36,676 | (12,768 | ) | |||||||||||||||||||||
Other (2) | (4,588 | ) | (2,706 | ) | ||||||||||||||||||||
Net realized gains (losses) | $ | 83,348 | $ | 19,697 | ||||||||||||||||||||
_________________________________________________ | ||||||||||||||||||||||||
-1 | See Note 8 for information on the Company’s derivative instruments. | |||||||||||||||||||||||
-2 | Includes accretion of contingent consideration liability amounts related to the 2014 acquisition of CMG Mortgage Insurance Company and its affiliated mortgage insurance companies. | |||||||||||||||||||||||
Other-Than-Temporary Impairments | ||||||||||||||||||||||||
The Company performs quarterly reviews of its available for sale investments in order to determine whether declines in fair value below the amortized cost basis were considered other-than-temporary in accordance with applicable guidance. The following table details the net impairment losses recognized in earnings by asset class: | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||
Mortgage backed securities | $ | (1,072 | ) | $ | — | |||||||||||||||||||
Corporate bonds | (1,976 | ) | — | |||||||||||||||||||||
Asset backed securities | — | (6 | ) | |||||||||||||||||||||
Total | (3,048 | ) | (6 | ) | ||||||||||||||||||||
Short-term investments | (2,341 | ) | — | |||||||||||||||||||||
Equity securities | (129 | ) | — | |||||||||||||||||||||
Other investments | (281 | ) | (2,965 | ) | ||||||||||||||||||||
Net impairment losses recognized in earnings | $ | (5,799 | ) | $ | (2,971 | ) | ||||||||||||||||||
A description of the methodology and significant inputs used to measure the amount of net impairment losses recognized in earnings 2015 first quarter is as follows: | ||||||||||||||||||||||||
• | Short-term investments — net impairment losses for the 2015 first quarter related to a reduction in the carrying value of a Euro-denominated investment in an unrealized loss position due to the decline of the Euro against the U.S. Dollar. Due to the short time to maturity, the Company recorded an OTTI on such security; | |||||||||||||||||||||||
• | Corporate bonds — the Company reviewed the business prospects, credit ratings, estimated loss given default factors and information received from asset managers and rating agencies for certain corporate bonds. The amortized cost basis of the corporate bonds were adjusted down, if required, to the expected recovery value calculated in the OTTI review process; | |||||||||||||||||||||||
• | Mortgage backed securities — the Company utilized underlying data provided by asset managers, cash flow projections and additional information from credit agencies in order to determine an expected recovery value for each security. The analysis includes expected cash flow projections under base case and stress case scenarios which modify the expected default expectations and loss severities and slow down prepayment assumptions. The significant inputs in the models include the expected default rates, delinquency rates and foreclosure costs. Net impairment losses for the 2015 first quarter primarily resulted from a revised analysis of prepayment assumptions on one interest only mortgage backed security and small adjustments in other holdings. The amortized cost basis of the mortgage backed securities were adjusted down, if required, to the expected recovery value calculated in the OTTI review process. | |||||||||||||||||||||||
The Company believes that the $4.9 million of OTTI included in accumulated other comprehensive income at March 31, 2015 on the securities which were considered by the Company to be impaired was due to market and sector-related factors (i.e., not credit losses). At March 31, 2015, the Company did not intend to sell these securities, or any other securities which were in an unrealized loss position, and determined that it is more likely than not that the Company will not be required to sell such securities before recovery of their cost basis. | ||||||||||||||||||||||||
The following table provides a roll forward of the amount related to credit losses recognized in earnings for which a portion of an OTTI was recognized in accumulated other comprehensive income: | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Balance at start of period | $ | 20,196 | $ | 60,062 | ||||||||||||||||||||
Credit loss impairments recognized on securities not previously impaired | 4,489 | — | ||||||||||||||||||||||
Credit loss impairments recognized on securities previously impaired | 79 | 6 | ||||||||||||||||||||||
Reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security | — | — | ||||||||||||||||||||||
Reductions for securities sold during the period | (420 | ) | (12,812 | ) | ||||||||||||||||||||
Balance at end of period | $ | 24,344 | $ | 47,256 | ||||||||||||||||||||
Restricted Assets | ||||||||||||||||||||||||
The Company is required to maintain assets on deposit, which primarily consist of fixed maturities, with various regulatory authorities to support its insurance and reinsurance operations. The Company’s insurance and reinsurance subsidiaries maintain assets in trust accounts as collateral for insurance and reinsurance transactions with affiliated companies and also have investments in segregated portfolios primarily to provide collateral or guarantees for letters of credit to third parties. See Note 9 for further details. The following table details the value of the Company’s restricted assets: | ||||||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Assets used for collateral or guarantees: | ||||||||||||||||||||||||
Affiliated transactions | $ | 4,054,848 | $ | 4,138,527 | ||||||||||||||||||||
Third party agreements | 1,010,214 | 970,120 | ||||||||||||||||||||||
Deposits with U.S. regulatory authorities | 407,190 | 337,981 | ||||||||||||||||||||||
Trust funds | 64,673 | 72,461 | ||||||||||||||||||||||
Total restricted assets | $ | 5,536,925 | $ | 5,519,089 | ||||||||||||||||||||
Fair_Value
Fair Value | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||||||||
Accounting guidance regarding fair value measurements addresses how companies should measure fair value when they are required to use a fair value measure for recognition or disclosure purposes under GAAP and provides a common definition of fair value to be used throughout GAAP. It defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly fashion between market participants at the measurement date. In addition, it establishes a three-level valuation hierarchy for the disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. 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 (Level 1 being the highest priority and Level 3 being the lowest priority). | ||||||||||||||||||||||||
The levels in the hierarchy are defined as follows: | ||||||||||||||||||||||||
Level 1: | Inputs to the valuation methodology are observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets | |||||||||||||||||||||||
Level 2: | Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument | |||||||||||||||||||||||
Level 3: | Inputs to the valuation methodology are unobservable and significant to the fair value measurement | |||||||||||||||||||||||
Following is a description of the valuation methodologies used for securities measured at fair value, as well as the general classification of such securities pursuant to the valuation hierarchy. | ||||||||||||||||||||||||
The Company determines the existence of an active market based on its judgment as to whether transactions for the financial instrument occur in such market with sufficient frequency and volume to provide reliable pricing information. The independent pricing sources obtain market quotations and actual transaction prices for securities that have quoted prices in active markets. The Company uses quoted values and other data provided by nationally recognized independent pricing sources as inputs into its process for determining fair values of its fixed maturity investments. To validate the techniques or models used by pricing sources, the Company’s review process includes, but is not limited to: (i) quantitative analysis (e.g., comparing the quarterly return for each managed portfolio to its target benchmark, with significant differences identified and investigated); (ii) a review of the average number of prices obtained in the pricing process and the range of resulting fair values; (iii) initial and ongoing evaluation of methodologies used by outside parties to calculate fair value including a review of deep dive reports on selected securities which indicate the use of observable inputs in the pricing process; (iv) comparing the fair value estimates to its knowledge of the current market; (v) a comparison of the pricing services’ fair values to other pricing services’ fair values for the same investments; and (vi) back-testing, which includes randomly selecting purchased or sold securities and comparing the executed prices to the fair value estimates from the pricing service. For a majority of investments, the Company obtained multiple quotes. A price source hierarchy was maintained in order to determine which price source would be used (i.e., a price obtained from a pricing service with more seniority in the hierarchy will be used over a less senior one in all cases). The hierarchy prioritizes pricing services based on availability and reliability and assigns the highest priority to index providers. Based on the above review, the Company will challenge any prices for a security or portfolio which are considered not to be representative of fair value. The Company did not adjust any of the prices obtained from the pricing services at March 31, 2015. | ||||||||||||||||||||||||
The independent pricing sources obtain market quotations and actual transaction prices for securities that have quoted prices in active markets. Each source has its own proprietary method for determining the fair value of securities that are not actively traded. In general, these methods involve the use of “matrix pricing” in which the independent pricing source uses observable market inputs including, but not limited to, investment yields, credit risks and spreads, benchmarking of like securities, broker-dealer quotes, reported trades and sector groupings to determine a reasonable fair value. In addition, pricing vendors use model processes, such as an Option Adjusted Spread model, to develop prepayment and interest rate scenarios. The Option Adjusted Spread model is commonly used to estimate fair value for securities such as mortgage backed and asset backed securities. In certain circumstances, when fair values are unavailable from these independent pricing sources, quotes are obtained directly from broker-dealers who are active in the corresponding markets. Such quotes are subject to the validation procedures noted above. Of the $15.06 billion of financial assets and liabilities measured at fair value at March 31, 2015, approximately $241.0 million, or 1.6%, were priced using non-binding broker-dealer quotes. Of the $15.05 billion of financial assets and liabilities measured at fair value at December 31, 2014, approximately $260.8 million, or 1.7%, were priced using non-binding broker-dealer quotes. | ||||||||||||||||||||||||
The Company reviews its securities measured at fair value and discusses the proper classification of such investments with investment advisers and others. No transfers were made in the periods presented. A discussion of the general classification of the Company’s financial instruments follows: | ||||||||||||||||||||||||
Fixed maturities. The Company determined that all U.S. Treasuries would be classified as Level 1 securities due to observed levels of trading activity, the high number of strongly correlated pricing quotes received on U.S. Treasuries and other factors. Where the Company believes that quoted market prices are not available or that the market is not active, fair values are estimated by using quoted prices of securities with similar characteristics, pricing models or matrix pricing and are generally classified as Level 2 securities. The Company determined that Level 2 securities included corporate bonds, mortgage backed securities, municipal bonds, asset backed securities and non-U.S. government securities. The Company determined that certain corporate bonds and asset backed securities for which there is a low level of transparency around inputs to the valuation process should be classified within Level 3 of the valuation hierarchy. | ||||||||||||||||||||||||
Equity securities. The Company determined that exchange-traded equity securities would be included in Level 1 as their fair values are based on quoted market prices in active markets. Other equity securities are included in Level 2 of the valuation hierarchy. | ||||||||||||||||||||||||
Other investments. The fair values for certain of the Company’s other investments are determined using net asset values (“NAV”) as advised by external fund managers. The NAV is based on the fund manager’s valuation of the underlying holdings in accordance with the fund’s governing documents. Periodically, the Company performs a number of monitoring procedures in order to assess the quality of the NAVs, including regular review and discussion of each fund’s performance, regular evaluation of fund performance against applicable benchmarks and the backtesting of the NAVs against audited and interim financial statements. Other investments with liquidity terms allowing the Company to substantially redeem its holdings in a short time frame at the applicable NAV are reflected in Level 2. Other investments with redemption restrictions that prevent the Company from redeeming in the near term are classified in Level 3 of the valuation hierarchy. Other investments also include term loan investments for which fair values are estimated by using quoted prices of term loan investments with similar characteristics, pricing models or matrix pricing. Such investments are generally classified as Level 2 securities. | ||||||||||||||||||||||||
Short-term investments. The Company determined that certain of its short-term investments held in highly liquid money market-type funds would be included in Level 1 as their fair values are based on quoted market prices in active markets. Other short-term investments are classified in Level 2 of the valuation hierarchy. | ||||||||||||||||||||||||
In securities lending transactions, the Company receives collateral in excess of the fair value of the fixed maturities and short-term investments pledged under securities lending agreements. For purposes of the following tables, the Company has excluded the collateral received and reinvested and included the fixed maturities and short-term investments pledged under securities lending agreements, at fair value. | ||||||||||||||||||||||||
Contingent consideration liability. The contingent consideration liability (included in ‘other liabilities’ in the consolidated balance sheets) resulted from the acquisition of CMG Mortgage Insurance Company and its affiliated mortgage insurance companies and is remeasured at fair value at each balance sheet date. Changes in fair value are recognized in ‘net realized gains (losses).’ To determine the fair value of the contingent consideration liability, the Company estimates future payments using an income approach based on modeled inputs which include a weighted average cost of capital. The Company determined that the contingent consideration liability would be included in Level 3 of the valuation hierarchy. | ||||||||||||||||||||||||
The following table presents the Company’s financial assets and liabilities measured at fair value by level at March 31, 2015: | ||||||||||||||||||||||||
Estimated Fair Value Measurement Using: | ||||||||||||||||||||||||
Estimated | Quoted Prices in | Significant | Significant | |||||||||||||||||||||
Fair | Active Markets | Other | Unobservable | |||||||||||||||||||||
Value | for Identical | Observable | Inputs | |||||||||||||||||||||
Assets | Inputs | (Level 3) | ||||||||||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||||||||||
Assets measured at fair value: | ||||||||||||||||||||||||
Available for sale securities: | ||||||||||||||||||||||||
Fixed maturities and fixed maturities pledged under securities lending agreements (1): | ||||||||||||||||||||||||
Corporate bonds | $ | 3,119,437 | $ | — | $ | 3,119,437 | $ | — | ||||||||||||||||
Mortgage backed securities | 821,611 | — | 821,611 | — | ||||||||||||||||||||
Municipal bonds | 1,626,580 | — | 1,626,580 | — | ||||||||||||||||||||
Commercial mortgage backed securities | 1,106,332 | — | 1,106,332 | — | ||||||||||||||||||||
U.S. government and government agencies | 1,517,834 | 1,517,834 | — | — | ||||||||||||||||||||
Non-U.S. government securities | 831,200 | — | 831,200 | — | ||||||||||||||||||||
Asset backed securities | 1,657,931 | — | 1,600,431 | 57,500 | ||||||||||||||||||||
Total | 10,680,925 | 1,517,834 | 9,105,591 | 57,500 | ||||||||||||||||||||
Equity securities | 687,713 | 685,714 | 1,999 | — | ||||||||||||||||||||
Other investments | 329,677 | — | 201,943 | 127,734 | ||||||||||||||||||||
Short-term investments | 855,032 | 835,065 | 19,967 | — | ||||||||||||||||||||
Fair value option: | ||||||||||||||||||||||||
Corporate bonds | 636,762 | — | 636,762 | — | ||||||||||||||||||||
Non-U.S. government bonds | 77,903 | — | 77,903 | — | ||||||||||||||||||||
Mortgage backed securities | 18,010 | — | 18,010 | — | ||||||||||||||||||||
Asset backed securities | 24,792 | — | 24,792 | — | ||||||||||||||||||||
Other investments | 1,557,824 | — | 1,088,930 | 468,894 | ||||||||||||||||||||
Short-term investments | 125,788 | 125,788 | — | — | ||||||||||||||||||||
Equity securities | 907 | 907 | — | — | ||||||||||||||||||||
Total | 2,441,986 | 126,695 | 1,846,397 | 468,894 | ||||||||||||||||||||
Total assets measured at fair value | $ | 14,995,333 | $ | 3,165,308 | $ | 11,175,897 | $ | 654,128 | ||||||||||||||||
Liabilities measured at fair value: | ||||||||||||||||||||||||
Contingent consideration liability | $ | (66,461 | ) | $ | — | $ | — | $ | (66,461 | ) | ||||||||||||||
Total liabilities measured at fair value | $ | (66,461 | ) | $ | — | $ | — | $ | (66,461 | ) | ||||||||||||||
_________________________________________________ | ||||||||||||||||||||||||
-1 | In securities lending transactions, the Company receives collateral in excess of the fair value of the fixed maturities and short-term investments pledged. For purposes of this table, the Company has excluded the collateral received and reinvested and included the fixed maturities and short-term investments pledged. | |||||||||||||||||||||||
The following table presents the Company’s financial assets and liabilities measured at fair value by level at December 31, 2014: | ||||||||||||||||||||||||
Estimated Fair Value Measurement Using: | ||||||||||||||||||||||||
Estimated | Quoted Prices in | Significant | Significant | |||||||||||||||||||||
Fair | Active Markets | Other | Unobservable | |||||||||||||||||||||
Value | for Identical | Observable | Inputs | |||||||||||||||||||||
Assets | Inputs | (Level 3) | ||||||||||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||||||||||
Assets measured at fair value: | ||||||||||||||||||||||||
Available for sale securities: | ||||||||||||||||||||||||
Fixed maturities and fixed maturities pledged under securities lending agreements (1): | ||||||||||||||||||||||||
Corporate bonds | $ | 3,108,513 | $ | — | $ | 3,108,513 | $ | — | ||||||||||||||||
Mortgage backed securities | 943,343 | — | 943,343 | — | ||||||||||||||||||||
Municipal bonds | 1,494,122 | — | 1,494,122 | — | ||||||||||||||||||||
Commercial mortgage backed securities | 1,114,528 | — | 1,114,528 | — | ||||||||||||||||||||
U.S. government and government agencies | 1,447,972 | 1,447,972 | — | — | ||||||||||||||||||||
Non-U.S. government securities | 1,015,153 | — | 1,015,153 | — | ||||||||||||||||||||
Asset backed securities | 1,677,941 | — | 1,620,441 | 57,500 | ||||||||||||||||||||
Total | 10,801,572 | 1,447,972 | 9,296,100 | 57,500 | ||||||||||||||||||||
Equity securities | 658,182 | 658,182 | — | — | ||||||||||||||||||||
Other investments | 296,224 | — | 192,687 | 103,537 | ||||||||||||||||||||
Short-term investments | 797,226 | 759,621 | 37,605 | — | ||||||||||||||||||||
Fair value option: | ||||||||||||||||||||||||
Corporate bonds | 497,101 | — | 497,101 | — | ||||||||||||||||||||
Non-U.S. government bonds | 88,411 | — | 88,411 | — | ||||||||||||||||||||
Mortgage backed securities | 22,190 | — | 22,190 | — | ||||||||||||||||||||
Asset backed securities | 24,322 | — | 24,322 | — | ||||||||||||||||||||
Other investments | 1,551,907 | — | 1,085,557 | 466,350 | ||||||||||||||||||||
Short-term investments | 251,601 | 250,580 | 1,021 | — | ||||||||||||||||||||
Total | 2,435,532 | 250,580 | 1,718,602 | 466,350 | ||||||||||||||||||||
Total assets measured at fair value | $ | 14,988,736 | $ | 3,116,355 | $ | 11,244,994 | $ | 627,387 | ||||||||||||||||
Liabilities measured at fair value: | ||||||||||||||||||||||||
Fair value option: | ||||||||||||||||||||||||
Contingent consideration liability | $ | (61,845 | ) | $ | — | $ | — | $ | (61,845 | ) | ||||||||||||||
Total liabilities measured at fair value | $ | (61,845 | ) | $ | — | $ | — | $ | (61,845 | ) | ||||||||||||||
_________________________________________________ | ||||||||||||||||||||||||
-1 | In securities lending transactions, the Company receives collateral in excess of the fair value of the fixed maturities and short-term investments pledged. For purposes of this table, the Company has excluded the collateral received and reinvested and included the fixed maturities and short-term investments pledged. | |||||||||||||||||||||||
The following tables present a reconciliation of the beginning and ending balances for all financial assets and liabilities measured at fair value on a recurring basis using Level 3 inputs: | ||||||||||||||||||||||||
Estimated Fair Value Measurements Using: | ||||||||||||||||||||||||
Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||
Assets | Liabilities | |||||||||||||||||||||||
s | Available-For-Sale | Fair Value Option | ||||||||||||||||||||||
Asset Backed Securities | Corporate | Other | Other | Total | Contingent Consideration Liability | |||||||||||||||||||
Bonds | Investments | Investments | ||||||||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||||||||||
Balance at beginning of period | $ | 57,500 | $ | — | $ | 103,537 | $ | 466,350 | $ | 627,387 | $ | (61,845 | ) | |||||||||||
Total gains or (losses) (realized/unrealized) | ||||||||||||||||||||||||
Included in earnings (1) | — | — | (281 | ) | (851 | ) | (1,132 | ) | (3,548 | ) | ||||||||||||||
Included in other comprehensive income | — | — | (522 | ) | — | (522 | ) | — | ||||||||||||||||
Purchases, issuances, sales and settlements | ||||||||||||||||||||||||
Purchases | — | — | 25,000 | 22,925 | 47,925 | — | ||||||||||||||||||
Issuances | — | — | — | — | — | (1,068 | ) | |||||||||||||||||
Sales | — | — | — | — | — | — | ||||||||||||||||||
Settlements | — | — | — | (19,530 | ) | (19,530 | ) | — | ||||||||||||||||
Transfers in and/or out of Level 3 | — | — | — | — | — | — | ||||||||||||||||||
Balance at end of period | $ | 57,500 | $ | — | $ | 127,734 | $ | 468,894 | $ | 654,128 | $ | (66,461 | ) | |||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||||||
Balance at beginning of period | $ | — | $ | 2,045 | $ | 170,420 | $ | 377,525 | $ | 549,990 | $ | — | ||||||||||||
Total gains or (losses) (realized/unrealized) | ||||||||||||||||||||||||
Included in earnings (1) | — | — | 2,275 | 6,310 | 8,585 | (1,394 | ) | |||||||||||||||||
Included in other comprehensive income | — | — | (2,196 | ) | — | (2,196 | ) | — | ||||||||||||||||
Purchases, issuances, sales and settlements | ||||||||||||||||||||||||
Purchases | — | — | — | 40,110 | 40,110 | — | ||||||||||||||||||
Issuances | — | — | — | — | — | (41,762 | ) | |||||||||||||||||
Sales | — | (2,045 | ) | (66,164 | ) | — | (68,209 | ) | — | |||||||||||||||
Settlements | — | — | — | (4,799 | ) | (4,799 | ) | — | ||||||||||||||||
Transfers in and/or out of Level 3 | — | — | — | — | — | — | ||||||||||||||||||
Balance at end of period | $ | — | $ | — | $ | 104,335 | $ | 419,146 | $ | 523,481 | $ | (43,156 | ) | |||||||||||
_________________________________________________ | ||||||||||||||||||||||||
-1 | Gains or losses on corporate bonds were included in net realized gains (losses) while gains or losses on other investments were included in net realized gains (losses) or net investment income. Gains or losses on the contingent consideration liability were included in net realized gains (losses). | |||||||||||||||||||||||
The amount of total losses for the 2015 first quarter included in earnings attributable to the change in unrealized gains or losses relating to assets still held at March 31, 2015 was $1.1 million. The amount of total gains for the 2014 first quarter included in earnings attributable to the change in unrealized gains or losses relating to assets still held at March 31, 2014 was $3.3 million. | ||||||||||||||||||||||||
Financial Instruments Disclosed, But Not Carried, At Fair Value | ||||||||||||||||||||||||
The Company uses various financial instruments in the normal course of its business. The carrying values of cash, accrued investment income, receivable for securities sold, certain other assets, payable for securities purchased and certain other liabilities approximated their fair values at March 31, 2015, due to their respective short maturities. As these financial instruments are not actively traded, their respective fair values are classified within Level 2. | ||||||||||||||||||||||||
At March 31, 2015, the senior notes of ACGL were carried at their cost of $300.0 million and had a fair value of $410.5 million while the senior notes of Arch-U.S. were carried at their cost of $500.0 million and had a fair value of $559.1 million. The fair values of the senior notes were obtained from a third party pricing service and are based on observable market inputs. As such, the fair value of the senior notes is classified within Level 2. |
Derivative_Instruments
Derivative Instruments | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||
Derivative Instruments | Derivative Instruments | |||||||||||||||
The Company’s investment strategy allows for the use of derivative securities. The Company’s derivative instruments are recorded on its consolidated balance sheets at fair value based on quoted market prices. All realized and unrealized contract gains and losses are reflected in the Company’s results of operations. The Company utilizes exchange traded U.S. Treasury note, Eurodollar and other futures contracts and commodity futures to manage portfolio duration or replicate investment positions in its portfolios. Certain of the Company’s investments are managed in portfolios which incorporate the use of foreign currency forward contracts which are intended to provide an economic hedge against foreign currency movements. In addition, the Company routinely utilizes foreign currency forward contracts, currency options, index futures contracts and other derivatives as part of its total return objective. | ||||||||||||||||
In addition, the Company purchases to-be-announced mortgage backed securities (“TBAs”) as part of its investment strategy. TBAs represent commitments to purchase a future issuance of agency mortgage backed securities. For the period between purchase of a TBA and issuance of the underlying security, the Company’s position is accounted for as a derivative. The Company purchases TBAs in both long and short positions to enhance investment performance and as part of its overall investment strategy. The fair value of TBAs is included in ‘fixed maturities available for sale, at fair value.’ The Company did not hold any derivatives which were designated as hedging instruments at March 31, 2015 or December 31, 2014. | ||||||||||||||||
The following table summarizes information on the fair values and notional values of the Company’s derivative instruments. | ||||||||||||||||
Asset | Liability Derivatives | Net | ||||||||||||||
Derivatives | Derivatives | |||||||||||||||
Estimated Fair Value | Estimated Fair Value | Estimated Fair Value | Notional | |||||||||||||
Value (1) | ||||||||||||||||
31-Mar-15 | ||||||||||||||||
Futures contracts | $ | 2,534 | $ | (3,148 | ) | $ | (614 | ) | $ | 2,398,085 | ||||||
Foreign currency forward contracts | 23,327 | (6,751 | ) | 16,576 | 1,848,503 | |||||||||||
TBAs | 350,576 | (245,150 | ) | 105,426 | 562,031 | |||||||||||
Other | 8,810 | (4,327 | ) | 4,483 | 1,252,273 | |||||||||||
Total | $ | 385,247 | $ | (259,376 | ) | $ | 125,871 | |||||||||
31-Dec-14 | ||||||||||||||||
Futures contracts | $ | 2,156 | $ | (1,907 | ) | $ | 249 | $ | 2,549,027 | |||||||
Foreign currency forward contracts | 10,511 | (1,145 | ) | 9,366 | 397,106 | |||||||||||
TBAs | 10,592 | — | 10,592 | 10,056 | ||||||||||||
Other | 3,209 | (2,345 | ) | 864 | 735,684 | |||||||||||
Total | $ | 26,468 | $ | (5,397 | ) | $ | 21,071 | |||||||||
_________________________________________________ | ||||||||||||||||
-1 | Represents the absolute notional value of all outstanding contracts, consisting of long and short positions. | |||||||||||||||
The Company’s derivative instruments are generally traded under master netting agreements, which establish terms that apply to all derivative transactions with a counterparty. In the event of a bankruptcy or other stipulated event of default, such agreements provide that the non-defaulting party may elect to terminate all outstanding derivative transactions, in which case all individual derivative positions (loss or gain) with a counterparty are closed out and netted and replaced with a single amount, usually referred to as the termination amount, which is expressed in a single currency. The resulting single net amount, where positive, is payable to the party “in-the-money” regardless of whether or not it is the defaulting party, unless the parties have agreed that only the non-defaulting party is entitled to receive a termination payment where the net amount is positive and is in its favor. Effectively, contractual close-out netting reduces derivatives credit exposure from gross to net exposure. At March 31, 2015, asset derivatives and liability derivatives of $160.5 million and $131.1 million, respectively, were subject to a master netting agreement, compared to $25.3 million and $5.4 million, respectively, at December 31, 2014. The remaining derivatives included in the table above were not subject to a master netting agreement. | ||||||||||||||||
The following table summarizes net realized gains (losses) recorded on the Company’s derivative instruments in the consolidated statements of income: | ||||||||||||||||
Three Months Ended | ||||||||||||||||
Derivatives not designated as | March 31, | |||||||||||||||
hedging instruments: | 2015 | 2014 | ||||||||||||||
Futures contracts | $ | 19,326 | $ | (9,862 | ) | |||||||||||
Foreign currency forward contracts | 16,819 | (2,257 | ) | |||||||||||||
TBAs | 486 | (37 | ) | |||||||||||||
Other | 45 | (612 | ) | |||||||||||||
Total | $ | 36,676 | $ | (12,768 | ) | |||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies |
Letter of Credit and Revolving Credit Facilities | |
As of March 31, 2015, the Company had a $300 million unsecured revolving loan and letter of credit facility and a $500 million secured letter of credit facility (the “Credit Agreement”). The Credit Agreement expires on June 30, 2019. In addition, the Company had access to secured letter of credit facilities of approximately $180.0 million as of March 31, 2015, which are available on a limited basis and for limited purposes (together with the secured portion of the Credit Agreement and these letter of credit facilities, the “LOC Facilities”). At March 31, 2015, the Company had $415.9 million in outstanding letters of credit under the LOC Facilities, which were secured by investments with a fair value of $488.4 million, and had $100.0 million of borrowings outstanding under the Credit Agreement which are due on June 30, 2019. The Company was in compliance with all covenants contained in the LOC Facilities at March 31, 2015. As of March 31, 2015, Watford Re had a $200 million line of credit facility that expires on May 19, 2015. At March 31, 2015, Watford Re had $32.1 million in outstanding letters of credit under that credit facility. Watford Re was in compliance with all covenants contained in its credit facility at March 31, 2015. | |
Investment Commitments | |
The Company’s investment commitments, which are primarily related to agreements entered into by the Company to invest in funds and separately managed accounts when called upon, were approximately $1.22 billion at March 31, 2015. |
Share_Transactions
Share Transactions | 3 Months Ended |
Mar. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Share Transactions | Share Transactions |
Share Repurchases | |
The board of directors of ACGL has authorized the investment in ACGL’s common shares through a share repurchase program. Since the inception of the share repurchase program, ACGL has repurchased approximately 120.9 million common shares for an aggregate purchase price of $3.40 billion. For the 2015 first quarter, ACGL repurchased 2.7 million common shares for an aggregate purchase price of $162.9 million. For the 2014 first quarter, ACGL did not repurchase any common shares. At March 31, 2015, $724.2 million of share repurchases were available under the program. The timing and amount of the repurchase transactions under this program will depend on a variety of factors, including market conditions and corporate and regulatory considerations. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes |
ACGL is incorporated under the laws of Bermuda and, under current Bermuda law, is not obligated to pay any taxes in Bermuda based upon income or capital gains. The Company has received a written undertaking from the Minister of Finance in Bermuda under the Exempted Undertakings Tax Protection Act 1966 that, in the event that any legislation is enacted in Bermuda imposing any tax computed on profits, income, gain or appreciation on any capital asset, or any tax in the nature of estate duty or inheritance tax, such tax will not be applicable to ACGL or any of its operations until March 31, 2035. This undertaking does not, however, prevent the imposition of taxes on any person ordinarily resident in Bermuda or any company in respect of its ownership of real property or leasehold interests in Bermuda. | |
ACGL and its non-U.S. subsidiaries will be subject to U.S. federal income tax only to the extent that they derive U.S. source income that is subject to U.S. withholding tax or income that is effectively connected with the conduct of a trade or business within the U.S. and is not exempt from U.S. tax under an applicable income tax treaty with the U.S. ACGL and its non-U.S. subsidiaries will be subject to a withholding tax on dividends from U.S. investments and interest from certain U.S. payors (subject to reduction by any applicable income tax treaty). ACGL and its non-U.S. subsidiaries intend to conduct their operations in a manner that will not cause them to be treated as engaged in a trade or business in the United States and, therefore, will not be required to pay U.S. federal income taxes (other than U.S. excise taxes on insurance and reinsurance premium and withholding taxes on dividends and certain other U.S. source investment income). However, because there is uncertainty as to the activities which constitute being engaged in a trade or business within the United States, there can be no assurances that the U.S. Internal Revenue Service will not contend successfully that ACGL or its non-U.S. subsidiaries are engaged in a trade or business in the United States. If ACGL or any of its non-U.S. subsidiaries were subject to U.S. income tax, ACGL’s shareholders’ equity and earnings could be materially adversely affected. ACGL has subsidiaries and branches that operate in various jurisdictions around the world that are subject to tax in the jurisdictions in which they operate. The significant jurisdictions in which ACGL’s subsidiaries and branches are subject to tax are the United States, United Kingdom, Ireland, Canada, Switzerland and Denmark. | |
The Company’s income tax provision on income before income taxes resulted in an expense of 4.3% for the 2015 first quarter, compared to an expense of 2.0% for the 2014 first quarter. The Company’s effective tax rate, which is based upon the expected annual effective tax rate, may fluctuate from period to period based on the relative mix of income or loss reported by jurisdiction and the varying tax rates in each jurisdiction. The Company had a net deferred tax asset of $124.7 million at March 31, 2015, compared to $131.0 million at December 31, 2014. In addition, the Company paid $3.6 million in income taxes for the 2015 first quarter, while the Company paid $1.6 million for the 2014 first quarter. |
Other_Comprehensive_Income_Los
Other Comprehensive Income (Loss) | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Comprehensive Income Note Disclosure [Abstract] | ||||||||||||
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) | |||||||||||
The following table presents details about amounts reclassified from accumulated other comprehensive income: | ||||||||||||
Amounts Reclassified from AOCI | ||||||||||||
Consolidated Statement of Income | Three Months Ended | |||||||||||
Details About | Line Item That Includes | March 31, | ||||||||||
AOCI Components | Reclassification | 2015 | 2014 | |||||||||
Unrealized appreciation on available-for-sale investments | ||||||||||||
Net realized gains (losses) | $ | 42,431 | $ | 26,038 | ||||||||
Other-than-temporary impairment losses | (7,247 | ) | (2,971 | ) | ||||||||
Total before tax | 35,184 | 23,067 | ||||||||||
Income tax (expense) benefit | (4,252 | ) | (1,818 | ) | ||||||||
Net of tax | $ | 30,932 | $ | 21,249 | ||||||||
The following table presents the tax effects allocated to each component of other comprehensive income (loss): | ||||||||||||
Before Tax Amount | Tax Expense (Benefit) | Net of Tax Amount | ||||||||||
Three Months Ended March 31, 2015 | ||||||||||||
Unrealized appreciation (decline) in value of investments: | ||||||||||||
Unrealized holding gains (losses) arising during period | $ | 94,387 | $ | 10,083 | $ | 84,304 | ||||||
Portion of other-than-temporary impairment losses recognized in other comprehensive income (loss) | (1,448 | ) | — | (1,448 | ) | |||||||
Less reclassification of net realized gains included in net income | 35,184 | 4,252 | 30,932 | |||||||||
Foreign currency translation adjustments | (23,626 | ) | (869 | ) | (22,757 | ) | ||||||
Other comprehensive income (loss) | $ | 34,129 | $ | 4,962 | $ | 29,167 | ||||||
Three Months Ended March 31, 2014 | ||||||||||||
Unrealized appreciation (decline) in value of investments: | ||||||||||||
Unrealized holding gains (losses) arising during period | $ | 75,400 | $ | 4,047 | $ | 71,353 | ||||||
Portion of other-than-temporary impairment losses recognized in other comprehensive income (loss) | — | — | — | |||||||||
Less reclassification of net realized gains (losses) included in net income | 23,067 | 1,818 | 21,249 | |||||||||
Foreign currency translation adjustments | (1,349 | ) | — | (1,349 | ) | |||||||
Other comprehensive income (loss) | $ | 50,984 | $ | 2,229 | $ | 48,755 | ||||||
Guarantor_Financial_Informatio
Guarantor Financial Information | 3 Months Ended | ||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||
Guarantor Financial Information | Guarantor Financial Information | ||||||||||||||||||||||
The following tables present condensed financial information for ACGL, Arch Capital Group (U.S.) Inc. (“Arch-U.S.”), a 100% owned subsidiary of ACGL, and ACGL’s other subsidiaries. | |||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||
Condensed Consolidating Balance Sheet | ACGL (Parent Guarantor) | Arch-U.S. (Subsidiary Issuer) | Other ACGL Subsidiaries | Consolidating Adjustments and Eliminations | ACGL Consolidated | ||||||||||||||||||
Assets | |||||||||||||||||||||||
Total investments | $ | 24 | $ | 53,890 | $ | 15,357,730 | $ | — | $ | 15,411,644 | |||||||||||||
Cash | 7,992 | 2,822 | 460,198 | — | 471,012 | ||||||||||||||||||
Investments in subsidiaries | 6,688,930 | 1,710,358 | — | (8,399,288 | ) | — | |||||||||||||||||
Due from subsidiaries and affiliates | 31 | 15,144 | 380,577 | (395,752 | ) | — | |||||||||||||||||
Premiums receivable | — | — | 1,575,230 | (458,841 | ) | 1,116,389 | |||||||||||||||||
Reinsurance recoverable on unpaid and paid losses and loss adjustment expenses | — | — | 5,545,517 | (3,756,898 | ) | 1,788,619 | |||||||||||||||||
Contractholder receivables | — | — | 1,339,433 | — | 1,339,433 | ||||||||||||||||||
Prepaid reinsurance premiums | — | — | 1,545,190 | (1,123,282 | ) | 421,908 | |||||||||||||||||
Deferred acquisition costs, net | — | — | 442,775 | — | 442,775 | ||||||||||||||||||
Other assets | 6,998 | 50,869 | 2,138,959 | (338,926 | ) | 1,857,900 | |||||||||||||||||
Total assets | $ | 6,703,975 | $ | 1,833,083 | $ | 28,785,609 | $ | (14,472,987 | ) | $ | 22,849,680 | ||||||||||||
Liabilities | |||||||||||||||||||||||
Reserve for losses and loss adjustment expenses | $ | — | $ | — | $ | 12,656,904 | $ | (3,727,954 | ) | $ | 8,928,950 | ||||||||||||
Unearned premiums | — | — | 3,524,116 | (1,123,282 | ) | 2,400,834 | |||||||||||||||||
Reinsurance balances payable | — | — | 645,723 | (445,279 | ) | 200,444 | |||||||||||||||||
Contractholder payables | — | — | 1,339,433 | — | 1,339,433 | ||||||||||||||||||
Deposit accounting liabilities | — | — | 508,592 | (223,764 | ) | 284,828 | |||||||||||||||||
Senior notes | 300,000 | 500,000 | — | — | 800,000 | ||||||||||||||||||
Revolving credit agreement borrowings | 100,000 | — | — | — | 100,000 | ||||||||||||||||||
Due to subsidiaries and affiliates | 1,305 | 15,022 | 379,425 | (395,752 | ) | — | |||||||||||||||||
Other liabilities | 13,968 | 47,944 | 1,593,048 | (157,669 | ) | 1,497,291 | |||||||||||||||||
Total liabilities | 415,273 | 562,966 | 20,647,241 | (6,073,700 | ) | 15,551,780 | |||||||||||||||||
Redeemable noncontrolling interests | — | — | 219,604 | — | 219,604 | ||||||||||||||||||
Shareholders’ Equity | |||||||||||||||||||||||
Total shareholders’ equity available to Arch | 6,288,702 | 1,270,117 | 7,129,170 | (8,399,287 | ) | 6,288,702 | |||||||||||||||||
Non-redeemable noncontrolling interests | — | — | 789,594 | — | 789,594 | ||||||||||||||||||
Total shareholders’ equity | 6,288,702 | 1,270,117 | 7,918,764 | (8,399,287 | ) | 7,078,296 | |||||||||||||||||
Total liabilities, noncontrolling interests and shareholders’ equity | $ | 6,703,975 | $ | 1,833,083 | $ | 28,785,609 | $ | (14,472,987 | ) | $ | 22,849,680 | ||||||||||||
31-Dec-14 | |||||||||||||||||||||||
Condensed Consolidating Balance Sheet | ACGL (Parent Guarantor) | Arch-U.S. (Subsidiary Issuer) | Other ACGL Subsidiaries | Consolidating Adjustments and Eliminations | ACGL Consolidated | ||||||||||||||||||
Assets | |||||||||||||||||||||||
Total investments | $ | 107 | $ | 62,867 | $ | 15,268,275 | $ | — | $ | 15,331,249 | |||||||||||||
Cash | 3,218 | 2,787 | 479,697 | — | 485,702 | ||||||||||||||||||
Investments in subsidiaries | 6,536,644 | 1,685,185 | — | (8,221,829 | ) | — | |||||||||||||||||
Due from subsidiaries and affiliates | 48 | 7,517 | 370,429 | (377,994 | ) | — | |||||||||||||||||
Premiums receivable | — | — | 1,331,511 | (382,816 | ) | 948,695 | |||||||||||||||||
Reinsurance recoverable on unpaid and paid losses and loss adjustment expenses | — | — | 5,584,973 | (3,772,128 | ) | 1,812,845 | |||||||||||||||||
Contractholder receivables | — | — | 1,309,192 | — | 1,309,192 | ||||||||||||||||||
Prepaid reinsurance premiums | — | — | 1,373,008 | (995,930 | ) | 377,078 | |||||||||||||||||
Deferred acquisition costs, net | — | — | 414,525 | — | 414,525 | ||||||||||||||||||
Other assets | 7,590 | 49,576 | 1,689,670 | (416,579 | ) | 1,330,257 | |||||||||||||||||
Total assets | $ | 6,547,607 | $ | 1,807,932 | $ | 27,821,280 | $ | (14,167,276 | ) | $ | 22,009,543 | ||||||||||||
Liabilities | |||||||||||||||||||||||
Reserve for losses and loss adjustment expenses | $ | — | $ | — | $ | 12,784,030 | $ | (3,747,582 | ) | $ | 9,036,448 | ||||||||||||
Unearned premiums | — | — | 3,227,508 | (995,930 | ) | 2,231,578 | |||||||||||||||||
Reinsurance balances payable | — | — | 589,289 | (369,977 | ) | 219,312 | |||||||||||||||||
Contractholder payables | — | — | 1,309,192 | — | 1,309,192 | ||||||||||||||||||
Deposit accounting liabilities | — | — | 587,050 | (259,666 | ) | 327,384 | |||||||||||||||||
Senior notes | 300,000 | 500,000 | — | — | 800,000 | ||||||||||||||||||
Revolving credit agreement borrowings | 100,000 | — | — | — | 100,000 | ||||||||||||||||||
Due to subsidiaries and affiliates | 417 | 7,505 | 370,072 | (377,994 | ) | — | |||||||||||||||||
Other liabilities | 17,137 | 49,403 | 994,741 | (194,298 | ) | 866,983 | |||||||||||||||||
Total liabilities | 417,554 | 556,908 | 19,861,882 | (5,945,447 | ) | 14,890,897 | |||||||||||||||||
Redeemable noncontrolling interests | — | — | 219,512 | — | 219,512 | ||||||||||||||||||
Shareholders’ Equity | |||||||||||||||||||||||
Total shareholders’ equity available to Arch | 6,130,053 | 1,251,024 | 6,970,805 | (8,221,829 | ) | 6,130,053 | |||||||||||||||||
Non-redeemable noncontrolling interests | — | — | 769,081 | — | 769,081 | ||||||||||||||||||
Total shareholders’ equity | 6,130,053 | 1,251,024 | 7,739,886 | (8,221,829 | ) | 6,899,134 | |||||||||||||||||
Total liabilities, noncontrolling interests and shareholders’ equity | $ | 6,547,607 | $ | 1,807,932 | $ | 27,821,280 | $ | (14,167,276 | ) | $ | 22,009,543 | ||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||||
Condensed Consolidating Statement of Income and Comprehensive Income | ACGL (Parent Guarantor) | Arch-U.S. (Subsidiary Issuer) | Other ACGL Subsidiaries | Consolidating Adjustments and Eliminations | ACGL Consolidated | ||||||||||||||||||
Revenues | |||||||||||||||||||||||
Net premiums earned | $ | — | $ | — | $ | 910,264 | $ | — | $ | 910,264 | |||||||||||||
Net investment income | — | 5 | 86,010 | (7,021 | ) | 78,994 | |||||||||||||||||
Net realized gains | — | — | 83,348 | — | 83,348 | ||||||||||||||||||
Net impairment losses recognized in earnings | — | — | (5,799 | ) | — | (5,799 | ) | ||||||||||||||||
Other underwriting income | — | — | 11,536 | — | 11,536 | ||||||||||||||||||
Equity in net income of investment funds accounted for using the equity method | — | — | 5,889 | — | 5,889 | ||||||||||||||||||
Other income (loss) | — | — | (1,888 | ) | — | (1,888 | ) | ||||||||||||||||
Total revenues | — | 5 | 1,089,360 | (7,021 | ) | 1,082,344 | |||||||||||||||||
Expenses | |||||||||||||||||||||||
Losses and loss adjustment expenses | — | — | 493,716 | — | 493,716 | ||||||||||||||||||
Acquisition expenses | — | — | 163,076 | — | 163,076 | ||||||||||||||||||
Other operating expenses | 8,632 | 1,259 | 147,991 | — | 157,882 | ||||||||||||||||||
Interest expense | 5,856 | 6,366 | 7,535 | (7,021 | ) | 12,736 | |||||||||||||||||
Net foreign exchange gains | — | — | (39,630 | ) | (26,871 | ) | (66,501 | ) | |||||||||||||||
Total expenses | 14,488 | 7,625 | 772,688 | (33,892 | ) | 760,909 | |||||||||||||||||
Income (loss) before income taxes | (14,488 | ) | (7,620 | ) | 316,672 | 26,871 | 321,435 | ||||||||||||||||
Income tax benefit (expense) | — | 1,413 | (14,091 | ) | — | (12,678 | ) | ||||||||||||||||
Income (loss) before equity in net income of subsidiaries | (14,488 | ) | (6,207 | ) | 302,581 | 26,871 | 308,757 | ||||||||||||||||
Equity in net income of subsidiaries | 297,824 | 14,495 | — | (312,319 | ) | — | |||||||||||||||||
Net income | 283,336 | 8,288 | 302,581 | (285,448 | ) | 308,757 | |||||||||||||||||
Amounts attributable to noncontrolling interests | — | — | (25,421 | ) | — | (25,421 | ) | ||||||||||||||||
Net income available to Arch | 283,336 | 8,288 | 277,160 | (285,448 | ) | 283,336 | |||||||||||||||||
Preferred dividends | (5,484 | ) | — | — | — | (5,484 | ) | ||||||||||||||||
Net income available to Arch common shareholders | $ | 277,852 | $ | 8,288 | $ | 277,160 | $ | (285,448 | ) | $ | 277,852 | ||||||||||||
Comprehensive income available to Arch | $ | 312,503 | $ | 11,750 | $ | 333,193 | $ | (344,943 | ) | $ | 312,503 | ||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||||
Condensed Consolidating Statement of Income and Comprehensive Income | ACGL (Parent Guarantor) | Arch-U.S. (Subsidiary Issuer) | Other ACGL Subsidiaries | Consolidating Adjustments and Eliminations | ACGL Consolidated | ||||||||||||||||||
Revenues | |||||||||||||||||||||||
Net premiums earned | $ | — | $ | — | $ | 859,780 | $ | — | $ | 859,780 | |||||||||||||
Net investment income | — | — | 77,001 | (10,007 | ) | 66,994 | |||||||||||||||||
Net realized gains | — | — | 19,697 | — | 19,697 | ||||||||||||||||||
Net impairment losses recognized in earnings | — | — | (2,971 | ) | — | (2,971 | ) | ||||||||||||||||
Other underwriting income | — | — | 1,582 | — | 1,582 | ||||||||||||||||||
Equity in net income of investment funds accounted for using the equity method | — | — | 3,253 | — | 3,253 | ||||||||||||||||||
Other income (loss) | — | — | (2,104 | ) | — | (2,104 | ) | ||||||||||||||||
Total revenues | — | — | 956,238 | (10,007 | ) | 946,231 | |||||||||||||||||
Expenses | |||||||||||||||||||||||
Losses and loss adjustment expenses | — | — | 436,240 | — | 436,240 | ||||||||||||||||||
Acquisition expenses | — | — | 160,342 | — | 160,342 | ||||||||||||||||||
Other operating expenses | 10,307 | 977 | 134,515 | — | 145,799 | ||||||||||||||||||
Interest expense | 5,853 | 6,514 | 12,044 | (10,007 | ) | 14,404 | |||||||||||||||||
Net foreign exchange losses | — | — | 5,741 | 822 | 6,563 | ||||||||||||||||||
Total expenses | 16,160 | 7,491 | 748,882 | (9,185 | ) | 763,348 | |||||||||||||||||
Income (loss) before income taxes | (16,160 | ) | (7,491 | ) | 207,356 | (822 | ) | 182,883 | |||||||||||||||
Income tax expense | — | 2,788 | (6,526 | ) | — | (3,738 | ) | ||||||||||||||||
Income (loss) before equity in net income of subsidiaries | (16,160 | ) | (4,703 | ) | 200,830 | (822 | ) | 179,145 | |||||||||||||||
Equity in net income of subsidiaries | 198,660 | 22,152 | — | (220,812 | ) | — | |||||||||||||||||
Net income | 182,500 | 17,449 | 200,830 | (221,634 | ) | 179,145 | |||||||||||||||||
Amounts attributable to noncontrolling interests | — | — | 3,355 | — | 3,355 | ||||||||||||||||||
Net income available to Arch | 182,500 | 17,449 | 204,185 | (221,634 | ) | 182,500 | |||||||||||||||||
Preferred dividends | (5,484 | ) | — | — | — | (5,484 | ) | ||||||||||||||||
Net income available to Arch common shareholders | $ | 177,016 | $ | 17,449 | $ | 204,185 | $ | (221,634 | ) | $ | 177,016 | ||||||||||||
Comprehensive income available to Arch | $ | 231,255 | $ | 17,220 | $ | 252,119 | $ | (269,339 | ) | $ | 231,255 | ||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||||
Condensed Consolidating Statement | ACGL (Parent Guarantor) | Arch-U.S. (Subsidiary Issuer) | Other ACGL Subsidiaries | Consolidating Adjustments and Eliminations | ACGL Consolidated | ||||||||||||||||||
of Cash Flows | |||||||||||||||||||||||
Operating Activities | |||||||||||||||||||||||
Net Cash Provided By (Used For) Operating Activities | $ | 173,508 | $ | (8,950 | ) | $ | 106,903 | $ | (186,000 | ) | $ | 85,461 | |||||||||||
Investing Activities | |||||||||||||||||||||||
Purchases of fixed maturity investments | — | — | (7,030,731 | ) | — | (7,030,731 | ) | ||||||||||||||||
Purchases of equity securities | — | — | (125,863 | ) | — | (125,863 | ) | ||||||||||||||||
Purchases of other investments | — | — | (685,497 | ) | — | (685,497 | ) | ||||||||||||||||
Proceeds from the sales of fixed maturity investments | — | 9,001 | 6,848,458 | — | 6,857,459 | ||||||||||||||||||
Proceeds from the sales of equity securities | — | — | 125,906 | — | 125,906 | ||||||||||||||||||
Proceeds from the sales of other investments | — | — | 605,263 | — | 605,263 | ||||||||||||||||||
Proceeds from redemptions and maturities of fixed maturity investments | — | — | 272,657 | — | 272,657 | ||||||||||||||||||
Net purchases (sales) of short-term investments | 83 | (16 | ) | 66,216 | — | 66,283 | |||||||||||||||||
Change in cash collateral related to securities lending | — | — | (5,529 | ) | — | (5,529 | ) | ||||||||||||||||
Contributions to subsidiaries | — | — | (5,500 | ) | 5,500 | — | |||||||||||||||||
Intercompany loans issued | — | (7,500 | ) | (7,500 | ) | 15,000 | — | ||||||||||||||||
Purchase of business, net of cash acquired | — | — | (2,432 | ) | — | (2,432 | ) | ||||||||||||||||
Purchases of furniture, equipment and other assets | (23 | ) | — | (32,874 | ) | — | (32,897 | ) | |||||||||||||||
Net Cash Provided By (Used For) Investing Activities | 60 | 1,485 | 22,574 | 20,500 | 44,619 | ||||||||||||||||||
Financing Activities | |||||||||||||||||||||||
Purchases of common shares under share repurchase program | (162,898 | ) | — | — | — | (162,898 | ) | ||||||||||||||||
Proceeds from common shares issued, net | (412 | ) | — | 5,500 | (5,500 | ) | (412 | ) | |||||||||||||||
Proceeds from intercompany borrowings | — | 7,500 | 7,500 | (15,000 | ) | — | |||||||||||||||||
Change in cash collateral related to securities lending | — | — | 5,529 | — | 5,529 | ||||||||||||||||||
Dividends paid to redeemable noncontrolling interests | — | — | (4,816 | ) | — | (4,816 | ) | ||||||||||||||||
Dividends paid to parent | — | — | (186,000 | ) | 186,000 | — | |||||||||||||||||
Other | — | — | 29,779 | — | 29,779 | ||||||||||||||||||
Preferred dividends paid | (5,484 | ) | — | — | — | (5,484 | ) | ||||||||||||||||
Net Cash Provided By (Used For) Financing Activities | (168,794 | ) | 7,500 | (142,508 | ) | 165,500 | (138,302 | ) | |||||||||||||||
Effects of exchange rates changes on foreign currency cash | — | — | (6,468 | ) | — | (6,468 | ) | ||||||||||||||||
Increase (decrease) in cash | 4,774 | 35 | (19,499 | ) | — | (14,690 | ) | ||||||||||||||||
Cash beginning of year | 3,218 | 2,787 | 479,697 | — | 485,702 | ||||||||||||||||||
Cash end of period | $ | 7,992 | $ | 2,822 | $ | 460,198 | $ | — | $ | 471,012 | |||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||||
Condensed Consolidating Statement | ACGL (Parent Guarantor) | Arch-U.S. (Subsidiary Issuer) | Other ACGL Subsidiaries | Consolidating Adjustments and Eliminations | ACGL Consolidated | ||||||||||||||||||
of Cash Flows | |||||||||||||||||||||||
Operating Activities | |||||||||||||||||||||||
Net Cash Provided By (Used For) Operating Activities | $ | 11,685 | $ | 7,151 | $ | 194,833 | $ | (15,500 | ) | $ | 198,169 | ||||||||||||
Investing Activities | |||||||||||||||||||||||
Purchases of fixed maturity investments | — | — | (7,131,071 | ) | — | (7,131,071 | ) | ||||||||||||||||
Purchases of equity securities | — | — | (89,227 | ) | — | (89,227 | ) | ||||||||||||||||
Purchases of other investments | — | — | (304,454 | ) | — | (304,454 | ) | ||||||||||||||||
Proceeds from the sales of fixed maturity investments | — | — | 7,014,281 | — | 7,014,281 | ||||||||||||||||||
Proceeds from the sales of equity securities | — | — | 49,614 | — | 49,614 | ||||||||||||||||||
Proceeds from the sales of other investments | — | — | 331,176 | — | 331,176 | ||||||||||||||||||
Proceeds from redemptions and maturities of fixed maturity investments | — | — | 168,484 | — | 168,484 | ||||||||||||||||||
Net (purchases) sales of short-term investments | (16 | ) | 360,269 | (203,991 | ) | — | 156,262 | ||||||||||||||||
Change in cash collateral related to securities lending | — | — | 4,669 | — | 4,669 | ||||||||||||||||||
Contributions to subsidiaries | — | (312,207 | ) | (100,000 | ) | 412,207 | — | ||||||||||||||||
Intercompany loans issued | — | — | 10,250 | (10,250 | ) | — | |||||||||||||||||
Purchase of business, net of cash acquired | — | — | (235,578 | ) | — | (235,578 | ) | ||||||||||||||||
Purchases of furniture, equipment and other assets | (76 | ) | — | (5,306 | ) | — | (5,382 | ) | |||||||||||||||
Net Cash Provided By (Used For) Investing Activities | (92 | ) | 48,062 | (491,153 | ) | 401,957 | (41,226 | ) | |||||||||||||||
Financing Activities | |||||||||||||||||||||||
Proceeds from common shares issued, net | 3,021 | — | 412,207 | (412,207 | ) | 3,021 | |||||||||||||||||
Repayments of intercompany borrowings | — | (10,250 | ) | — | 10,250 | — | |||||||||||||||||
Change in cash collateral related to securities lending | — | — | (4,669 | ) | — | (4,669 | ) | ||||||||||||||||
Third party investment in non-redeemable noncontrolling interests | — | — | 796,903 | — | 796,903 | ||||||||||||||||||
Third party investment in redeemable noncontrolling interests | — | — | 186,893 | — | 186,893 | ||||||||||||||||||
Dividends paid to parent | — | — | (15,500 | ) | 15,500 | — | |||||||||||||||||
Other | — | — | 1,700 | — | 1,700 | ||||||||||||||||||
Preferred dividends paid | (5,484 | ) | — | — | — | (5,484 | ) | ||||||||||||||||
Net Cash Provided By (Used For) Financing Activities | (2,463 | ) | (10,250 | ) | 1,377,534 | (386,457 | ) | 978,364 | |||||||||||||||
Effects of exchange rates changes on foreign currency cash | — | — | 241 | — | 241 | ||||||||||||||||||
Increase in cash | 9,130 | 44,963 | 1,081,455 | — | 1,135,548 | ||||||||||||||||||
Cash beginning of year | 3,223 | 509 | 430,325 | — | 434,057 | ||||||||||||||||||
Cash end of period | $ | 12,353 | $ | 45,472 | $ | 1,511,780 | $ | — | $ | 1,569,605 | |||||||||||||
Legal_Proceedings
Legal Proceedings | 3 Months Ended |
Mar. 31, 2015 | |
Disclosure Legal Proceedings [Abstract] | |
Legal Proceedings | Legal Proceedings |
The Company, in common with the insurance industry in general, is subject to litigation and arbitration in the normal course of its business. As of March 31, 2015, the Company was not a party to any litigation or arbitration which is expected by management to have a material adverse effect on the Company’s results of operations and financial condition and liquidity. |
Transactions_with_Related_Part
Transactions with Related Parties (Notes) | 3 Months Ended |
Mar. 31, 2015 | |
Related Party Transactions [Abstract] | |
Transactions with Related Parties | Transactions with Related Parties |
As part of its investment philosophy, the Company invests a portion of its investment portfolio in alternative investment funds. As of March 31, 2015, the Company had aggregate commitments of $545.9 million to funds managed by The Carlyle Group (“Carlyle”). Of such amount, $393.8 million was unfunded as of March 31, 2015. The Company may make additional commitments to funds managed by Carlyle from time to time. During the 2015 first quarter and 2014 first quarter, the Company made aggregate capital contributions to funds managed by Carlyle of $23.4 million and $19.1 million, respectively, and received aggregate cash distributions from funds managed by Carlyle of $7.1 million and $35.1 million, respectively. Kewsong Lee, a director of ACGL, joined Carlyle as Managing Director and Deputy Chief Investment Officer for Corporate Private Equity on December 31, 2013. |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events |
In May 2008, the Company provided $100.0 million of funding to Gulf Reinsurance Limited (“Gulf Re”), a newly formed reinsurer based in the Dubai International Financial Centre, pursuant to the joint venture agreement with Gulf Investment Corporation GSC (“GIC”). Under the agreement, Arch Re Bermuda and GIC each own 50% of Gulf Re, which commenced underwriting activities in June 2008. Gulf Re provides property and casualty reinsurance primarily in the member states of the Gulf Cooperation Council, which include Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. The initial capital of the joint venture consisted of $200.0 million. The Company accounts for its investment in Gulf Re, shown as “Investment in joint venture,” using the equity method and records its equity in the operating results of Gulf Re in “Other income (loss).” The Company entered into a number of strategic initiatives related to Gulf Re in the 2014 fourth quarter, including an agreement to acquire complete ownership of Gulf Re. Such agreement was approved by the Dubai Financial Services Authority in April 2015. |
General_Policies
General (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | The interim consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). All significant intercompany transactions and balances have been eliminated in consolidation. |
Use of estimates | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and assumptions. In the opinion of management, the accompanying unaudited interim consolidated financial statements reflect all adjustments (consisting of normally recurring accruals) necessary for a fair statement of results on an interim basis. The results of any interim period are not necessarily indicative of the results for a full year or any future periods. |
Variable_Interest_Entities_and1
Variable Interest Entities and Noncontrolling Interests (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Noncontrolling Interest [Abstract] | ||||||||
Activity in non-redeemable noncontrolling interests | The following table sets forth activity in the non-redeemable noncontrolling interests: | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Balance, beginning of period | $ | 769,081 | $ | — | ||||
Sale of shares to noncontrolling interests | — | 796,903 | ||||||
Amounts attributable to noncontrolling interests | 20,513 | (3,407 | ) | |||||
Balance, end of period | $ | 789,594 | $ | 793,496 | ||||
Earnings_Per_Common_Share_Tabl
Earnings Per Common Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Schedule of computation of basic and diluted earnings per common share | The following table sets forth the computation of basic and diluted earnings per common share: | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Numerator: | ||||||||
Net income | $ | 308,757 | $ | 179,145 | ||||
Amounts attributable to noncontrolling interests | (25,421 | ) | 3,355 | |||||
Net income available to Arch | 283,336 | 182,500 | ||||||
Preferred dividends | (5,484 | ) | (5,484 | ) | ||||
Net income available to Arch common shareholders | $ | 277,852 | $ | 177,016 | ||||
Denominator: | ||||||||
Weighted average common shares outstanding — basic | 124,209,276 | 131,857,910 | ||||||
Effect of dilutive common share equivalents: | ||||||||
Nonvested restricted shares | 1,416,801 | 1,346,401 | ||||||
Stock options (1) | 2,824,977 | 3,358,406 | ||||||
Weighted average common shares and common share equivalents outstanding — diluted | 128,451,054 | 136,562,717 | ||||||
Earnings per common share: | ||||||||
Basic | $ | 2.24 | $ | 1.34 | ||||
Diluted | $ | 2.16 | $ | 1.3 | ||||
_________________________________________________ | ||||||||
-1 | Certain stock options were not included in the computation of diluted earnings per share where the exercise price of the stock options exceeded the average market price and would have been anti-dilutive or where, when applying the treasury stock method to in-the-money options, the sum of the proceeds, including unrecognized compensation, exceeded the average market price and would have been anti-dilutive. For the 2015 first quarter and 2014 first quarter, the number of stock options excluded were 703,853 and 759,172, respectively. |
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||
Analysis of underwriting income by segment and reconciliation to net income available to common shareholders | The following tables summarize the Company’s underwriting income or loss by segment, together with a reconciliation of underwriting income or loss to net income available to common shareholders: | |||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
31-Mar-15 | ||||||||||||||||||||||||
Insurance | Reinsurance | Mortgage | Sub-Total | Other | Total | |||||||||||||||||||
Gross premiums written (1) | $ | 766,153 | $ | 485,112 | $ | 60,541 | $ | 1,311,678 | $ | 128,633 | $ | 1,342,022 | ||||||||||||
Premiums ceded | (224,150 | ) | (136,569 | ) | (8,670 | ) | (369,261 | ) | (4,055 | ) | (275,027 | ) | ||||||||||||
Net premiums written | 542,003 | 348,543 | 51,871 | 942,417 | 124,578 | 1,066,995 | ||||||||||||||||||
Change in unearned premiums | (34,089 | ) | (68,826 | ) | (1,504 | ) | (104,419 | ) | (52,312 | ) | (156,731 | ) | ||||||||||||
Net premiums earned | 507,914 | 279,717 | 50,367 | 837,998 | 72,266 | 910,264 | ||||||||||||||||||
Other underwriting income | 427 | 1,429 | 7,718 | 9,574 | 1,962 | 11,536 | ||||||||||||||||||
Losses and loss adjustment expenses | (317,896 | ) | (112,532 | ) | (13,809 | ) | (444,237 | ) | (49,479 | ) | (493,716 | ) | ||||||||||||
Acquisition expenses, net | (75,078 | ) | (56,604 | ) | (10,418 | ) | (142,100 | ) | (20,976 | ) | (163,076 | ) | ||||||||||||
Other operating expenses | (88,119 | ) | (38,044 | ) | (20,369 | ) | (146,532 | ) | (2,005 | ) | (148,537 | ) | ||||||||||||
Underwriting income (loss) | $ | 27,248 | $ | 73,966 | $ | 13,489 | 114,703 | 1,768 | 116,471 | |||||||||||||||
Net investment income | 70,288 | 8,706 | 78,994 | |||||||||||||||||||||
Net realized gains (losses) | 65,509 | 17,839 | 83,348 | |||||||||||||||||||||
Net impairment losses recognized in earnings | (5,799 | ) | — | (5,799 | ) | |||||||||||||||||||
Equity in net income of investment funds accounted for using the equity method | 5,889 | — | 5,889 | |||||||||||||||||||||
Other income (loss) | (1,888 | ) | — | (1,888 | ) | |||||||||||||||||||
Other expenses | (9,345 | ) | — | (9,345 | ) | |||||||||||||||||||
Interest expense | (12,736 | ) | — | (12,736 | ) | |||||||||||||||||||
Net foreign exchange gains (losses) | 66,853 | (352 | ) | 66,501 | ||||||||||||||||||||
Income before income taxes | 293,474 | 27,961 | 321,435 | |||||||||||||||||||||
Income tax expense | (12,678 | ) | — | (12,678 | ) | |||||||||||||||||||
Net income | 280,796 | 27,961 | 308,757 | |||||||||||||||||||||
Dividends attributable to redeemable noncontrolling interests | — | (4,908 | ) | (4,908 | ) | |||||||||||||||||||
Amounts attributable to noncontrolling interests | — | (20,513 | ) | (20,513 | ) | |||||||||||||||||||
Net income available to Arch | 280,796 | 2,540 | 283,336 | |||||||||||||||||||||
Preferred dividends | (5,484 | ) | — | (5,484 | ) | |||||||||||||||||||
Net income available to Arch common shareholders | $ | 275,312 | $ | 2,540 | $ | 277,852 | ||||||||||||||||||
Underwriting Ratios | ||||||||||||||||||||||||
Loss ratio | 62.6 | % | 40.2 | % | 27.4 | % | 53 | % | 68.5 | % | 54.2 | % | ||||||||||||
Acquisition expense ratio | 14.8 | % | 20.2 | % | 20.7 | % | 17 | % | 29 | % | 17.9 | % | ||||||||||||
Other operating expense ratio | 17.3 | % | 13.6 | % | 40.4 | % | 17.5 | % | 2.8 | % | 16.3 | % | ||||||||||||
Combined ratio | 94.7 | % | 74 | % | 88.5 | % | 87.5 | % | 100.3 | % | 88.4 | % | ||||||||||||
Goodwill and intangible assets | $ | 30,526 | $ | 2,687 | $ | 73,532 | $ | 106,745 | $ | — | $ | 106,745 | ||||||||||||
Total investable assets | $ | 14,456,612 | $ | 1,267,588 | $ | 15,724,200 | ||||||||||||||||||
Total assets | 21,227,143 | 1,622,537 | 22,849,680 | |||||||||||||||||||||
Total liabilities | 15,036,245 | 515,535 | 15,551,780 | |||||||||||||||||||||
_________________________________________________ | ||||||||||||||||||||||||
-1 | Certain amounts included in the gross premiums written of each segment are related to intersegment transactions. Accordingly, the sum of gross premiums written for each segment does not agree to the total gross premiums written as shown in the table above due to the elimination of intersegment transactions in the total. | |||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
31-Mar-14 | ||||||||||||||||||||||||
Insurance | Reinsurance | Mortgage | Sub-Total | Other | Total | |||||||||||||||||||
Gross premiums written (1) | $ | 730,646 | $ | 517,053 | $ | 47,907 | $ | 1,295,136 | $ | 32,194 | $ | 1,295,136 | ||||||||||||
Premiums ceded | (185,044 | ) | (73,127 | ) | (4,639 | ) | (262,340 | ) | — | (230,146 | ) | |||||||||||||
Net premiums written | 545,602 | 443,926 | 43,268 | 1,032,796 | 32,194 | 1,064,990 | ||||||||||||||||||
Change in unearned premiums | (68,101 | ) | (102,578 | ) | (4,503 | ) | (175,182 | ) | (30,028 | ) | (205,210 | ) | ||||||||||||
Net premiums earned | 477,501 | 341,348 | 38,765 | 857,614 | 2,166 | 859,780 | ||||||||||||||||||
Other underwriting income | 500 | 316 | 766 | 1,582 | — | 1,582 | ||||||||||||||||||
Losses and loss adjustment expenses | (286,770 | ) | (139,636 | ) | (8,478 | ) | (434,884 | ) | (1,356 | ) | (436,240 | ) | ||||||||||||
Acquisition expenses, net | (76,932 | ) | (73,433 | ) | (9,154 | ) | (159,519 | ) | (823 | ) | (160,342 | ) | ||||||||||||
Other operating expenses | (81,144 | ) | (36,195 | ) | (13,876 | ) | (131,215 | ) | (1,109 | ) | (132,324 | ) | ||||||||||||
Underwriting income | $ | 33,155 | $ | 92,400 | $ | 8,023 | 133,578 | (1,122 | ) | 132,456 | ||||||||||||||
Net investment income | 66,993 | 1 | 66,994 | |||||||||||||||||||||
Net realized gains | 19,697 | — | 19,697 | |||||||||||||||||||||
Net impairment losses recognized in earnings | (2,971 | ) | — | (2,971 | ) | |||||||||||||||||||
Equity in net income of investment funds accounted for using the equity method | 3,253 | — | 3,253 | |||||||||||||||||||||
Other income (loss) | (2,104 | ) | — | (2,104 | ) | |||||||||||||||||||
Other expenses | (10,799 | ) | (2,676 | ) | (13,475 | ) | ||||||||||||||||||
Interest expense | (14,404 | ) | — | (14,404 | ) | |||||||||||||||||||
Net foreign exchange losses | (6,656 | ) | 93 | (6,563 | ) | |||||||||||||||||||
Income before income taxes | 186,587 | (3,704 | ) | 182,883 | ||||||||||||||||||||
Income tax expense | (3,738 | ) | — | (3,738 | ) | |||||||||||||||||||
Net income | 182,849 | (3,704 | ) | 179,145 | ||||||||||||||||||||
Dividends attributable to redeemable noncontrolling interests | — | (52 | ) | (52 | ) | |||||||||||||||||||
Amounts attributable to noncontrolling interests | — | 3,407 | 3,407 | |||||||||||||||||||||
Net income available to Arch | 182,849 | (349 | ) | 182,500 | ||||||||||||||||||||
Preferred dividends | (5,484 | ) | — | (5,484 | ) | |||||||||||||||||||
Net income available to Arch common shareholders | $ | 177,365 | $ | (349 | ) | $ | 177,016 | |||||||||||||||||
Underwriting Ratios | ||||||||||||||||||||||||
Loss ratio | 60.1 | % | 40.9 | % | 21.9 | % | 50.7 | % | 62.6 | % | 50.7 | % | ||||||||||||
Acquisition expense ratio | 16.1 | % | 21.5 | % | 23.6 | % | 18.6 | % | 38 | % | 18.6 | % | ||||||||||||
Other operating expense ratio | 17 | % | 10.6 | % | 35.8 | % | 15.3 | % | 51.2 | % | 15.4 | % | ||||||||||||
Combined ratio | 93.2 | % | 73 | % | 81.3 | % | 84.6 | % | 151.8 | % | 84.7 | % | ||||||||||||
Goodwill and intangible assets | $ | 20,184 | $ | 5,803 | $ | 94,888 | $ | 120,875 | $ | — | $ | 120,875 | ||||||||||||
Total investable assets | $ | 14,261,106 | $ | 1,083,280 | $ | 15,344,386 | ||||||||||||||||||
Total assets | 20,653,897 | 1,146,461 | 21,800,358 | |||||||||||||||||||||
Total liabilities | 14,860,124 | 35,371 | 14,895,495 | |||||||||||||||||||||
_________________________________________________ | ||||||||||||||||||||||||
-1 | Certain amounts included in the gross premiums written of each segment are related to intersegment transactions. Accordingly, the sum of gross premiums written for each segment does not agree to the total gross premiums written as shown in the table above due to the elimination of intersegment transactions in the total. |
Investment_Information_Tables
Investment Information (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Disclosure Investment Information [Abstract] | ||||||||||||||||||||||||
Summary of fair value and cost or amortized cost of available for sale securities | The following table summarizes the fair value and cost or amortized cost of the Company’s investments classified as available for sale: | |||||||||||||||||||||||
Estimated | Gross | Gross | Cost or | OTTI | ||||||||||||||||||||
Fair | Unrealized | Unrealized | Amortized | Unrealized | ||||||||||||||||||||
Value | Gains | Losses | Cost | Losses (2) | ||||||||||||||||||||
31-Mar-15 | ||||||||||||||||||||||||
Fixed maturities and fixed maturities pledged under securities lending agreements (1): | ||||||||||||||||||||||||
Corporate bonds | $ | 3,119,437 | $ | 62,922 | $ | (46,982 | ) | $ | 3,103,497 | $ | (1,143 | ) | ||||||||||||
Mortgage backed securities | 821,611 | 20,996 | (2,065 | ) | 802,680 | (3,557 | ) | |||||||||||||||||
Municipal bonds | 1,626,580 | 33,377 | (2,013 | ) | 1,595,216 | — | ||||||||||||||||||
Commercial mortgage backed securities | 1,106,332 | 23,083 | (2,497 | ) | 1,085,746 | — | ||||||||||||||||||
U.S. government and government agencies | 1,517,834 | 16,821 | (776 | ) | 1,501,789 | — | ||||||||||||||||||
Non-U.S. government securities | 831,200 | 23,118 | (52,685 | ) | 860,767 | — | ||||||||||||||||||
Asset backed securities | 1,657,931 | 14,080 | (3,563 | ) | 1,647,414 | (22 | ) | |||||||||||||||||
Total | 10,680,925 | 194,397 | (110,581 | ) | 10,597,109 | (4,722 | ) | |||||||||||||||||
Equity securities | 687,713 | 121,660 | (12,467 | ) | 578,520 | — | ||||||||||||||||||
Other investments | 329,677 | 37,964 | (574 | ) | 292,287 | (165 | ) | |||||||||||||||||
Short-term investments | 855,032 | 16 | (4,151 | ) | 859,167 | — | ||||||||||||||||||
Total | $ | 12,553,347 | $ | 354,037 | $ | (127,773 | ) | $ | 12,327,083 | $ | (4,887 | ) | ||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
Fixed maturities and fixed maturities pledged under securities lending agreements (1): | ||||||||||||||||||||||||
Corporate bonds | $ | 3,108,513 | $ | 37,928 | $ | (38,974 | ) | $ | 3,109,559 | $ | (317 | ) | ||||||||||||
Mortgage backed securities | 943,343 | 18,843 | (3,842 | ) | 928,342 | (3,307 | ) | |||||||||||||||||
Municipal bonds | 1,494,122 | 31,227 | (1,044 | ) | 1,463,939 | — | ||||||||||||||||||
Commercial mortgage backed securities | 1,114,528 | 14,594 | (3,822 | ) | 1,103,756 | — | ||||||||||||||||||
U.S. government and government agencies | 1,447,972 | 8,345 | (1,760 | ) | 1,441,387 | — | ||||||||||||||||||
Non-U.S. government securities | 1,015,153 | 21,311 | (37,203 | ) | 1,031,045 | — | ||||||||||||||||||
Asset backed securities | 1,677,941 | 8,425 | (6,089 | ) | 1,675,605 | (22 | ) | |||||||||||||||||
Total | 10,801,572 | 140,673 | (92,734 | ) | 10,753,633 | (3,646 | ) | |||||||||||||||||
Equity securities | 658,182 | 109,012 | (13,364 | ) | 562,534 | — | ||||||||||||||||||
Other investments | 296,224 | 31,839 | (362 | ) | 264,747 | — | ||||||||||||||||||
Short-term investments | 797,226 | 738 | (5,270 | ) | 801,758 | — | ||||||||||||||||||
Total | $ | 12,553,204 | $ | 282,262 | $ | (111,730 | ) | $ | 12,382,672 | $ | (3,646 | ) | ||||||||||||
_________________________________________________ | ||||||||||||||||||||||||
-1 | In securities lending transactions, the Company receives collateral in excess of the fair value of the fixed maturities and short-term investments pledged. For purposes of this table, the Company has excluded the collateral received and reinvested and included the fixed maturities and short-term investments pledged. See “—Securities Lending Agreements.” | |||||||||||||||||||||||
-2 | Represents the total other-than-temporary impairments (“OTTI”) recognized in accumulated other comprehensive income (“AOCI”). It does not include the change in fair value subsequent to the impairment measurement date. At March 31, 2015, the net unrealized loss related to securities for which a non-credit OTTI was recognized in AOCI was $0.3 million, compared to a net unrealized gain of $0.9 million at December 31, 2014. | |||||||||||||||||||||||
Summary of available for sale securities in a continual unrealized loss position | The following table summarizes, for all available for sale securities in an unrealized loss position, the fair value and gross unrealized loss by length of time the security has been in a continual unrealized loss position: | |||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Estimated | Gross | Estimated | Gross | Estimated | Gross | |||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
31-Mar-15 | ||||||||||||||||||||||||
Fixed maturities and fixed maturities pledged under securities lending agreements (1): | ||||||||||||||||||||||||
Corporate bonds | $ | 810,064 | $ | (40,337 | ) | $ | 60,249 | $ | (6,645 | ) | $ | 870,313 | $ | (46,982 | ) | |||||||||
Mortgage backed securities | 142,833 | (1,333 | ) | 29,939 | (732 | ) | 172,772 | (2,065 | ) | |||||||||||||||
Municipal bonds | 241,211 | (1,494 | ) | 13,573 | (519 | ) | 254,784 | (2,013 | ) | |||||||||||||||
Commercial mortgage backed securities | 194,085 | (2,375 | ) | 30,774 | (122 | ) | 224,859 | (2,497 | ) | |||||||||||||||
U.S. government and government agencies | 148,004 | (776 | ) | — | — | 148,004 | (776 | ) | ||||||||||||||||
Non-U.S. government securities | 376,737 | (43,321 | ) | 38,091 | (9,364 | ) | 414,828 | (52,685 | ) | |||||||||||||||
Asset backed securities | 331,543 | (2,072 | ) | 157,748 | (1,491 | ) | 489,291 | (3,563 | ) | |||||||||||||||
Total | 2,244,477 | (91,708 | ) | 330,374 | (18,873 | ) | 2,574,851 | (110,581 | ) | |||||||||||||||
Equity securities | 226,711 | (12,467 | ) | — | — | 226,711 | (12,467 | ) | ||||||||||||||||
Other investments | 128,867 | (574 | ) | — | — | 128,867 | (574 | ) | ||||||||||||||||
Short-term investments | 55,615 | (4,151 | ) | — | — | 55,615 | (4,151 | ) | ||||||||||||||||
Total | $ | 2,655,670 | $ | (108,900 | ) | $ | 330,374 | $ | (18,873 | ) | $ | 2,986,044 | $ | (127,773 | ) | |||||||||
31-Dec-14 | ||||||||||||||||||||||||
Fixed maturities and fixed maturities pledged under securities lending agreements (1): | ||||||||||||||||||||||||
Corporate bonds | $ | 1,309,637 | $ | (32,903 | ) | $ | 148,963 | $ | (6,071 | ) | $ | 1,458,600 | $ | (38,974 | ) | |||||||||
Mortgage backed securities | 293,624 | (1,476 | ) | 59,107 | (2,366 | ) | 352,731 | (3,842 | ) | |||||||||||||||
Municipal bonds | 210,614 | (588 | ) | 13,643 | (456 | ) | 224,257 | (1,044 | ) | |||||||||||||||
Commercial mortgage backed securities | 232,147 | (770 | ) | 125,894 | (3,052 | ) | 358,041 | (3,822 | ) | |||||||||||||||
U.S. government and government agencies | 618,381 | (1,626 | ) | 3,438 | (134 | ) | 621,819 | (1,760 | ) | |||||||||||||||
Non-U.S. government securities | 510,766 | (31,172 | ) | 46,910 | (6,031 | ) | 557,676 | (37,203 | ) | |||||||||||||||
Asset backed securities | 612,950 | (2,486 | ) | 243,452 | (3,603 | ) | 856,402 | (6,089 | ) | |||||||||||||||
Total | 3,788,119 | (71,021 | ) | 641,407 | (21,713 | ) | 4,429,526 | (92,734 | ) | |||||||||||||||
Equity securities | 181,002 | (13,364 | ) | — | — | 181,002 | (13,364 | ) | ||||||||||||||||
Other investments | 59,638 | (362 | ) | — | — | 59,638 | (362 | ) | ||||||||||||||||
Short-term investments | 79,271 | (5,270 | ) | — | — | 79,271 | (5,270 | ) | ||||||||||||||||
Total | $ | 4,108,030 | $ | (90,017 | ) | $ | 641,407 | $ | (21,713 | ) | $ | 4,749,437 | $ | (111,730 | ) | |||||||||
_________________________________________________ | ||||||||||||||||||||||||
-1 | In securities lending transactions, the Company receives collateral in excess of the fair value of the fixed maturities and short-term investments pledged. For purposes of this table, the Company has excluded the collateral received and reinvested and included the fixed maturities and short-term investments pledged. See “—Securities Lending Agreements.” | |||||||||||||||||||||||
Contractual maturities of the Company's fixed maturities and fixed maturities pledged under securities lending arrangements | The contractual maturities of the Company’s fixed maturities and fixed maturities pledged under securities lending agreements are shown in the following table. Expected maturities, which are management’s best estimates, will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||||||||||||||
Maturity | Estimated | Amortized | Estimated | Amortized | ||||||||||||||||||||
Fair | Cost | Fair | Cost | |||||||||||||||||||||
Value | Value | |||||||||||||||||||||||
Due in one year or less | $ | 267,975 | $ | 268,219 | $ | 235,930 | $ | 233,794 | ||||||||||||||||
Due after one year through five years | 3,824,832 | 3,819,036 | 4,074,562 | 4,077,408 | ||||||||||||||||||||
Due after five years through 10 years | 2,651,327 | 2,630,130 | 2,475,726 | 2,461,356 | ||||||||||||||||||||
Due after 10 years | 350,917 | 343,884 | 279,542 | 273,372 | ||||||||||||||||||||
7,095,051 | 7,061,269 | 7,065,760 | 7,045,930 | |||||||||||||||||||||
Mortgage backed securities | 821,611 | 802,680 | 943,343 | 928,342 | ||||||||||||||||||||
Commercial mortgage backed securities | 1,106,332 | 1,085,746 | 1,114,528 | 1,103,756 | ||||||||||||||||||||
Asset backed securities | 1,657,931 | 1,647,414 | 1,677,941 | 1,675,605 | ||||||||||||||||||||
Total | $ | 10,680,925 | $ | 10,597,109 | $ | 10,801,572 | $ | 10,753,633 | ||||||||||||||||
Summary of other investments, including available for sale and fair value option components | The following table summarizes the Company’s other investments, including available for sale and fair value option components: | |||||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Available for sale: | ||||||||||||||||||||||||
Asian and emerging markets | $ | 270,087 | $ | 236,586 | ||||||||||||||||||||
Investment grade fixed income | 59,590 | 59,638 | ||||||||||||||||||||||
Total available for sale | 329,677 | 296,224 | ||||||||||||||||||||||
Fair value option: | ||||||||||||||||||||||||
Term loan investments (par value: $1,055,264 and $1,094,337) | 1,044,762 | 1,073,649 | ||||||||||||||||||||||
Mezzanine debt funds | 121,570 | 121,341 | ||||||||||||||||||||||
Credit related funds | 138,576 | 114,436 | ||||||||||||||||||||||
Investment grade fixed income | 63,162 | 69,108 | ||||||||||||||||||||||
Asian and emerging markets | 26,846 | 25,800 | ||||||||||||||||||||||
Other (1) | 162,908 | 147,573 | ||||||||||||||||||||||
Total fair value option | 1,557,824 | 1,551,907 | ||||||||||||||||||||||
Total | $ | 1,887,501 | $ | 1,848,131 | ||||||||||||||||||||
_________________________________________________ | ||||||||||||||||||||||||
-1 | Includes fund investments with strategies in mortgage servicing rights, transportation and infrastructure assets and other. | |||||||||||||||||||||||
Summary of assets and liabilities accounted for using the fair value option | The following table summarizes the Company’s assets and liabilities which are accounted for using the fair value option: | |||||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Fixed maturities | $ | 757,467 | $ | 632,024 | ||||||||||||||||||||
Other investments | 1,557,824 | 1,551,907 | ||||||||||||||||||||||
Short-term investments | 125,788 | 251,601 | ||||||||||||||||||||||
Equity securities | 907 | — | ||||||||||||||||||||||
Investments accounted for using the fair value option | $ | 2,441,986 | $ | 2,435,532 | ||||||||||||||||||||
Components of net investment income | The components of net investment income were derived from the following sources: | |||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Fixed maturities | $ | 68,596 | $ | 62,449 | ||||||||||||||||||||
Term loan investments | 14,744 | 5,669 | ||||||||||||||||||||||
Equity securities (dividends) | 2,679 | 2,921 | ||||||||||||||||||||||
Short-term investments | 196 | 405 | ||||||||||||||||||||||
Other (1) | 12,747 | 4,719 | ||||||||||||||||||||||
Gross investment income | 98,962 | 76,163 | ||||||||||||||||||||||
Investment expenses | (19,968 | ) | (9,169 | ) | ||||||||||||||||||||
Net investment income | $ | 78,994 | $ | 66,994 | ||||||||||||||||||||
_________________________________________________ | ||||||||||||||||||||||||
-1 | Includes dividends on investment funds and other items. | |||||||||||||||||||||||
Summary of net realized gains (losses) | Net realized gains (losses) were as follows, excluding other-than-temporary impairment provisions: | |||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Available for sale securities: | ||||||||||||||||||||||||
Gross gains on investment sales | $ | 97,591 | $ | 66,051 | ||||||||||||||||||||
Gross losses on investment sales | (55,160 | ) | (40,013 | ) | ||||||||||||||||||||
Change in fair value of assets and liabilities accounted for using the fair value option: | ||||||||||||||||||||||||
Fixed maturities | (3,302 | ) | (1,643 | ) | ||||||||||||||||||||
Other investments | 6,287 | 10,776 | ||||||||||||||||||||||
Equity securities | (2 | ) | — | |||||||||||||||||||||
Short-term investments | 5,846 | — | ||||||||||||||||||||||
Derivative instruments (1) | 36,676 | (12,768 | ) | |||||||||||||||||||||
Other (2) | (4,588 | ) | (2,706 | ) | ||||||||||||||||||||
Net realized gains (losses) | $ | 83,348 | $ | 19,697 | ||||||||||||||||||||
_________________________________________________ | ||||||||||||||||||||||||
-1 | See Note 8 for information on the Company’s derivative instruments. | |||||||||||||||||||||||
-2 | Includes accretion of contingent consideration liability amounts related to the 2014 acquisition of CMG Mortgage Insurance Company and its affiliated mortgage insurance companies. | |||||||||||||||||||||||
Summary of OTTI recognized in earnings by asset class | The following table details the net impairment losses recognized in earnings by asset class: | |||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||
Mortgage backed securities | $ | (1,072 | ) | $ | — | |||||||||||||||||||
Corporate bonds | (1,976 | ) | — | |||||||||||||||||||||
Asset backed securities | — | (6 | ) | |||||||||||||||||||||
Total | (3,048 | ) | (6 | ) | ||||||||||||||||||||
Short-term investments | (2,341 | ) | — | |||||||||||||||||||||
Equity securities | (129 | ) | — | |||||||||||||||||||||
Other investments | (281 | ) | (2,965 | ) | ||||||||||||||||||||
Net impairment losses recognized in earnings | $ | (5,799 | ) | $ | (2,971 | ) | ||||||||||||||||||
Rollforward of the amount related to credit losses recognized in earnings for which a portion was recognized in AOCI | The following table provides a roll forward of the amount related to credit losses recognized in earnings for which a portion of an OTTI was recognized in accumulated other comprehensive income: | |||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Balance at start of period | $ | 20,196 | $ | 60,062 | ||||||||||||||||||||
Credit loss impairments recognized on securities not previously impaired | 4,489 | — | ||||||||||||||||||||||
Credit loss impairments recognized on securities previously impaired | 79 | 6 | ||||||||||||||||||||||
Reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security | — | — | ||||||||||||||||||||||
Reductions for securities sold during the period | (420 | ) | (12,812 | ) | ||||||||||||||||||||
Balance at end of period | $ | 24,344 | $ | 47,256 | ||||||||||||||||||||
Summary of restricted assets | The following table details the value of the Company’s restricted assets: | |||||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Assets used for collateral or guarantees: | ||||||||||||||||||||||||
Affiliated transactions | $ | 4,054,848 | $ | 4,138,527 | ||||||||||||||||||||
Third party agreements | 1,010,214 | 970,120 | ||||||||||||||||||||||
Deposits with U.S. regulatory authorities | 407,190 | 337,981 | ||||||||||||||||||||||
Trust funds | 64,673 | 72,461 | ||||||||||||||||||||||
Total restricted assets | $ | 5,536,925 | $ | 5,519,089 | ||||||||||||||||||||
Fair_Value_Tables
Fair Value (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||
Fair value hierarchy | The following table presents the Company’s financial assets and liabilities measured at fair value by level at March 31, 2015: | |||||||||||||||||||||||
Estimated Fair Value Measurement Using: | ||||||||||||||||||||||||
Estimated | Quoted Prices in | Significant | Significant | |||||||||||||||||||||
Fair | Active Markets | Other | Unobservable | |||||||||||||||||||||
Value | for Identical | Observable | Inputs | |||||||||||||||||||||
Assets | Inputs | (Level 3) | ||||||||||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||||||||||
Assets measured at fair value: | ||||||||||||||||||||||||
Available for sale securities: | ||||||||||||||||||||||||
Fixed maturities and fixed maturities pledged under securities lending agreements (1): | ||||||||||||||||||||||||
Corporate bonds | $ | 3,119,437 | $ | — | $ | 3,119,437 | $ | — | ||||||||||||||||
Mortgage backed securities | 821,611 | — | 821,611 | — | ||||||||||||||||||||
Municipal bonds | 1,626,580 | — | 1,626,580 | — | ||||||||||||||||||||
Commercial mortgage backed securities | 1,106,332 | — | 1,106,332 | — | ||||||||||||||||||||
U.S. government and government agencies | 1,517,834 | 1,517,834 | — | — | ||||||||||||||||||||
Non-U.S. government securities | 831,200 | — | 831,200 | — | ||||||||||||||||||||
Asset backed securities | 1,657,931 | — | 1,600,431 | 57,500 | ||||||||||||||||||||
Total | 10,680,925 | 1,517,834 | 9,105,591 | 57,500 | ||||||||||||||||||||
Equity securities | 687,713 | 685,714 | 1,999 | — | ||||||||||||||||||||
Other investments | 329,677 | — | 201,943 | 127,734 | ||||||||||||||||||||
Short-term investments | 855,032 | 835,065 | 19,967 | — | ||||||||||||||||||||
Fair value option: | ||||||||||||||||||||||||
Corporate bonds | 636,762 | — | 636,762 | — | ||||||||||||||||||||
Non-U.S. government bonds | 77,903 | — | 77,903 | — | ||||||||||||||||||||
Mortgage backed securities | 18,010 | — | 18,010 | — | ||||||||||||||||||||
Asset backed securities | 24,792 | — | 24,792 | — | ||||||||||||||||||||
Other investments | 1,557,824 | — | 1,088,930 | 468,894 | ||||||||||||||||||||
Short-term investments | 125,788 | 125,788 | — | — | ||||||||||||||||||||
Equity securities | 907 | 907 | — | — | ||||||||||||||||||||
Total | 2,441,986 | 126,695 | 1,846,397 | 468,894 | ||||||||||||||||||||
Total assets measured at fair value | $ | 14,995,333 | $ | 3,165,308 | $ | 11,175,897 | $ | 654,128 | ||||||||||||||||
Liabilities measured at fair value: | ||||||||||||||||||||||||
Contingent consideration liability | $ | (66,461 | ) | $ | — | $ | — | $ | (66,461 | ) | ||||||||||||||
Total liabilities measured at fair value | $ | (66,461 | ) | $ | — | $ | — | $ | (66,461 | ) | ||||||||||||||
_________________________________________________ | ||||||||||||||||||||||||
-1 | In securities lending transactions, the Company receives collateral in excess of the fair value of the fixed maturities and short-term investments pledged. For purposes of this table, the Company has excluded the collateral received and reinvested and included the fixed maturities and short-term investments pledged. | |||||||||||||||||||||||
The following table presents the Company’s financial assets and liabilities measured at fair value by level at December 31, 2014: | ||||||||||||||||||||||||
Estimated Fair Value Measurement Using: | ||||||||||||||||||||||||
Estimated | Quoted Prices in | Significant | Significant | |||||||||||||||||||||
Fair | Active Markets | Other | Unobservable | |||||||||||||||||||||
Value | for Identical | Observable | Inputs | |||||||||||||||||||||
Assets | Inputs | (Level 3) | ||||||||||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||||||||||
Assets measured at fair value: | ||||||||||||||||||||||||
Available for sale securities: | ||||||||||||||||||||||||
Fixed maturities and fixed maturities pledged under securities lending agreements (1): | ||||||||||||||||||||||||
Corporate bonds | $ | 3,108,513 | $ | — | $ | 3,108,513 | $ | — | ||||||||||||||||
Mortgage backed securities | 943,343 | — | 943,343 | — | ||||||||||||||||||||
Municipal bonds | 1,494,122 | — | 1,494,122 | — | ||||||||||||||||||||
Commercial mortgage backed securities | 1,114,528 | — | 1,114,528 | — | ||||||||||||||||||||
U.S. government and government agencies | 1,447,972 | 1,447,972 | — | — | ||||||||||||||||||||
Non-U.S. government securities | 1,015,153 | — | 1,015,153 | — | ||||||||||||||||||||
Asset backed securities | 1,677,941 | — | 1,620,441 | 57,500 | ||||||||||||||||||||
Total | 10,801,572 | 1,447,972 | 9,296,100 | 57,500 | ||||||||||||||||||||
Equity securities | 658,182 | 658,182 | — | — | ||||||||||||||||||||
Other investments | 296,224 | — | 192,687 | 103,537 | ||||||||||||||||||||
Short-term investments | 797,226 | 759,621 | 37,605 | — | ||||||||||||||||||||
Fair value option: | ||||||||||||||||||||||||
Corporate bonds | 497,101 | — | 497,101 | — | ||||||||||||||||||||
Non-U.S. government bonds | 88,411 | — | 88,411 | — | ||||||||||||||||||||
Mortgage backed securities | 22,190 | — | 22,190 | — | ||||||||||||||||||||
Asset backed securities | 24,322 | — | 24,322 | — | ||||||||||||||||||||
Other investments | 1,551,907 | — | 1,085,557 | 466,350 | ||||||||||||||||||||
Short-term investments | 251,601 | 250,580 | 1,021 | — | ||||||||||||||||||||
Total | 2,435,532 | 250,580 | 1,718,602 | 466,350 | ||||||||||||||||||||
Total assets measured at fair value | $ | 14,988,736 | $ | 3,116,355 | $ | 11,244,994 | $ | 627,387 | ||||||||||||||||
Liabilities measured at fair value: | ||||||||||||||||||||||||
Fair value option: | ||||||||||||||||||||||||
Contingent consideration liability | $ | (61,845 | ) | $ | — | $ | — | $ | (61,845 | ) | ||||||||||||||
Total liabilities measured at fair value | $ | (61,845 | ) | $ | — | $ | — | $ | (61,845 | ) | ||||||||||||||
_________________________________________________ | ||||||||||||||||||||||||
-1 | In securities lending transactions, the Company receives collateral in excess of the fair value of the fixed maturities and short-term investments pledged. For purposes of this table, the Company has excluded the collateral received and reinvested and included the fixed maturities and short-term investments pledged. | |||||||||||||||||||||||
Rollforward of Level 3 investments | The following tables present a reconciliation of the beginning and ending balances for all financial assets and liabilities measured at fair value on a recurring basis using Level 3 inputs: | |||||||||||||||||||||||
Estimated Fair Value Measurements Using: | ||||||||||||||||||||||||
Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||
Assets | Liabilities | |||||||||||||||||||||||
s | Available-For-Sale | Fair Value Option | ||||||||||||||||||||||
Asset Backed Securities | Corporate | Other | Other | Total | Contingent Consideration Liability | |||||||||||||||||||
Bonds | Investments | Investments | ||||||||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||||||||||
Balance at beginning of period | $ | 57,500 | $ | — | $ | 103,537 | $ | 466,350 | $ | 627,387 | $ | (61,845 | ) | |||||||||||
Total gains or (losses) (realized/unrealized) | ||||||||||||||||||||||||
Included in earnings (1) | — | — | (281 | ) | (851 | ) | (1,132 | ) | (3,548 | ) | ||||||||||||||
Included in other comprehensive income | — | — | (522 | ) | — | (522 | ) | — | ||||||||||||||||
Purchases, issuances, sales and settlements | ||||||||||||||||||||||||
Purchases | — | — | 25,000 | 22,925 | 47,925 | — | ||||||||||||||||||
Issuances | — | — | — | — | — | (1,068 | ) | |||||||||||||||||
Sales | — | — | — | — | — | — | ||||||||||||||||||
Settlements | — | — | — | (19,530 | ) | (19,530 | ) | — | ||||||||||||||||
Transfers in and/or out of Level 3 | — | — | — | — | — | — | ||||||||||||||||||
Balance at end of period | $ | 57,500 | $ | — | $ | 127,734 | $ | 468,894 | $ | 654,128 | $ | (66,461 | ) | |||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||||||
Balance at beginning of period | $ | — | $ | 2,045 | $ | 170,420 | $ | 377,525 | $ | 549,990 | $ | — | ||||||||||||
Total gains or (losses) (realized/unrealized) | ||||||||||||||||||||||||
Included in earnings (1) | — | — | 2,275 | 6,310 | 8,585 | (1,394 | ) | |||||||||||||||||
Included in other comprehensive income | — | — | (2,196 | ) | — | (2,196 | ) | — | ||||||||||||||||
Purchases, issuances, sales and settlements | ||||||||||||||||||||||||
Purchases | — | — | — | 40,110 | 40,110 | — | ||||||||||||||||||
Issuances | — | — | — | — | — | (41,762 | ) | |||||||||||||||||
Sales | — | (2,045 | ) | (66,164 | ) | — | (68,209 | ) | — | |||||||||||||||
Settlements | — | — | — | (4,799 | ) | (4,799 | ) | — | ||||||||||||||||
Transfers in and/or out of Level 3 | — | — | — | — | — | — | ||||||||||||||||||
Balance at end of period | $ | — | $ | — | $ | 104,335 | $ | 419,146 | $ | 523,481 | $ | (43,156 | ) | |||||||||||
_________________________________________________ | ||||||||||||||||||||||||
-1 | Gains or losses on corporate bonds were included in net realized gains (losses) while gains or losses on other investments were included in net realized gains (losses) or net investment income. Gains or losses on the contingent consideration liability were included in net realized gains (losses). | |||||||||||||||||||||||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||
Fair value and notional amount of derivatives | The following table summarizes information on the fair values and notional values of the Company’s derivative instruments. | |||||||||||||||
Asset | Liability Derivatives | Net | ||||||||||||||
Derivatives | Derivatives | |||||||||||||||
Estimated Fair Value | Estimated Fair Value | Estimated Fair Value | Notional | |||||||||||||
Value (1) | ||||||||||||||||
31-Mar-15 | ||||||||||||||||
Futures contracts | $ | 2,534 | $ | (3,148 | ) | $ | (614 | ) | $ | 2,398,085 | ||||||
Foreign currency forward contracts | 23,327 | (6,751 | ) | 16,576 | 1,848,503 | |||||||||||
TBAs | 350,576 | (245,150 | ) | 105,426 | 562,031 | |||||||||||
Other | 8,810 | (4,327 | ) | 4,483 | 1,252,273 | |||||||||||
Total | $ | 385,247 | $ | (259,376 | ) | $ | 125,871 | |||||||||
31-Dec-14 | ||||||||||||||||
Futures contracts | $ | 2,156 | $ | (1,907 | ) | $ | 249 | $ | 2,549,027 | |||||||
Foreign currency forward contracts | 10,511 | (1,145 | ) | 9,366 | 397,106 | |||||||||||
TBAs | 10,592 | — | 10,592 | 10,056 | ||||||||||||
Other | 3,209 | (2,345 | ) | 864 | 735,684 | |||||||||||
Total | $ | 26,468 | $ | (5,397 | ) | $ | 21,071 | |||||||||
_________________________________________________ | ||||||||||||||||
-1 | Represents the absolute notional value of all outstanding contracts, consisting of long and short positions. | |||||||||||||||
Summary of net realized gains (losses) recorded in the consolidated statements of income | The following table summarizes net realized gains (losses) recorded on the Company’s derivative instruments in the consolidated statements of income: | |||||||||||||||
Three Months Ended | ||||||||||||||||
Derivatives not designated as | March 31, | |||||||||||||||
hedging instruments: | 2015 | 2014 | ||||||||||||||
Futures contracts | $ | 19,326 | $ | (9,862 | ) | |||||||||||
Foreign currency forward contracts | 16,819 | (2,257 | ) | |||||||||||||
TBAs | 486 | (37 | ) | |||||||||||||
Other | 45 | (612 | ) | |||||||||||||
Total | $ | 36,676 | $ | (12,768 | ) | |||||||||||
Other_Comprehensive_Income_Los1
Other Comprehensive Income (Loss) (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Comprehensive Income Note Disclosure [Abstract] | ||||||||||||
Details about amounts reclassified from AOCI | The following table presents details about amounts reclassified from accumulated other comprehensive income: | |||||||||||
Amounts Reclassified from AOCI | ||||||||||||
Consolidated Statement of Income | Three Months Ended | |||||||||||
Details About | Line Item That Includes | March 31, | ||||||||||
AOCI Components | Reclassification | 2015 | 2014 | |||||||||
Unrealized appreciation on available-for-sale investments | ||||||||||||
Net realized gains (losses) | $ | 42,431 | $ | 26,038 | ||||||||
Other-than-temporary impairment losses | (7,247 | ) | (2,971 | ) | ||||||||
Total before tax | 35,184 | 23,067 | ||||||||||
Income tax (expense) benefit | (4,252 | ) | (1,818 | ) | ||||||||
Net of tax | $ | 30,932 | $ | 21,249 | ||||||||
Schedule of comprehensive income (loss) | The following table presents the tax effects allocated to each component of other comprehensive income (loss): | |||||||||||
Before Tax Amount | Tax Expense (Benefit) | Net of Tax Amount | ||||||||||
Three Months Ended March 31, 2015 | ||||||||||||
Unrealized appreciation (decline) in value of investments: | ||||||||||||
Unrealized holding gains (losses) arising during period | $ | 94,387 | $ | 10,083 | $ | 84,304 | ||||||
Portion of other-than-temporary impairment losses recognized in other comprehensive income (loss) | (1,448 | ) | — | (1,448 | ) | |||||||
Less reclassification of net realized gains included in net income | 35,184 | 4,252 | 30,932 | |||||||||
Foreign currency translation adjustments | (23,626 | ) | (869 | ) | (22,757 | ) | ||||||
Other comprehensive income (loss) | $ | 34,129 | $ | 4,962 | $ | 29,167 | ||||||
Three Months Ended March 31, 2014 | ||||||||||||
Unrealized appreciation (decline) in value of investments: | ||||||||||||
Unrealized holding gains (losses) arising during period | $ | 75,400 | $ | 4,047 | $ | 71,353 | ||||||
Portion of other-than-temporary impairment losses recognized in other comprehensive income (loss) | — | — | — | |||||||||
Less reclassification of net realized gains (losses) included in net income | 23,067 | 1,818 | 21,249 | |||||||||
Foreign currency translation adjustments | (1,349 | ) | — | (1,349 | ) | |||||||
Other comprehensive income (loss) | $ | 50,984 | $ | 2,229 | $ | 48,755 | ||||||
Guarantor_Financial_Informatio1
Guarantor Financial Information (Tables) | 3 Months Ended | ||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||
Condensed consolidating balance sheet | |||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||
Condensed Consolidating Balance Sheet | ACGL (Parent Guarantor) | Arch-U.S. (Subsidiary Issuer) | Other ACGL Subsidiaries | Consolidating Adjustments and Eliminations | ACGL Consolidated | ||||||||||||||||||
Assets | |||||||||||||||||||||||
Total investments | $ | 24 | $ | 53,890 | $ | 15,357,730 | $ | — | $ | 15,411,644 | |||||||||||||
Cash | 7,992 | 2,822 | 460,198 | — | 471,012 | ||||||||||||||||||
Investments in subsidiaries | 6,688,930 | 1,710,358 | — | (8,399,288 | ) | — | |||||||||||||||||
Due from subsidiaries and affiliates | 31 | 15,144 | 380,577 | (395,752 | ) | — | |||||||||||||||||
Premiums receivable | — | — | 1,575,230 | (458,841 | ) | 1,116,389 | |||||||||||||||||
Reinsurance recoverable on unpaid and paid losses and loss adjustment expenses | — | — | 5,545,517 | (3,756,898 | ) | 1,788,619 | |||||||||||||||||
Contractholder receivables | — | — | 1,339,433 | — | 1,339,433 | ||||||||||||||||||
Prepaid reinsurance premiums | — | — | 1,545,190 | (1,123,282 | ) | 421,908 | |||||||||||||||||
Deferred acquisition costs, net | — | — | 442,775 | — | 442,775 | ||||||||||||||||||
Other assets | 6,998 | 50,869 | 2,138,959 | (338,926 | ) | 1,857,900 | |||||||||||||||||
Total assets | $ | 6,703,975 | $ | 1,833,083 | $ | 28,785,609 | $ | (14,472,987 | ) | $ | 22,849,680 | ||||||||||||
Liabilities | |||||||||||||||||||||||
Reserve for losses and loss adjustment expenses | $ | — | $ | — | $ | 12,656,904 | $ | (3,727,954 | ) | $ | 8,928,950 | ||||||||||||
Unearned premiums | — | — | 3,524,116 | (1,123,282 | ) | 2,400,834 | |||||||||||||||||
Reinsurance balances payable | — | — | 645,723 | (445,279 | ) | 200,444 | |||||||||||||||||
Contractholder payables | — | — | 1,339,433 | — | 1,339,433 | ||||||||||||||||||
Deposit accounting liabilities | — | — | 508,592 | (223,764 | ) | 284,828 | |||||||||||||||||
Senior notes | 300,000 | 500,000 | — | — | 800,000 | ||||||||||||||||||
Revolving credit agreement borrowings | 100,000 | — | — | — | 100,000 | ||||||||||||||||||
Due to subsidiaries and affiliates | 1,305 | 15,022 | 379,425 | (395,752 | ) | — | |||||||||||||||||
Other liabilities | 13,968 | 47,944 | 1,593,048 | (157,669 | ) | 1,497,291 | |||||||||||||||||
Total liabilities | 415,273 | 562,966 | 20,647,241 | (6,073,700 | ) | 15,551,780 | |||||||||||||||||
Redeemable noncontrolling interests | — | — | 219,604 | — | 219,604 | ||||||||||||||||||
Shareholders’ Equity | |||||||||||||||||||||||
Total shareholders’ equity available to Arch | 6,288,702 | 1,270,117 | 7,129,170 | (8,399,287 | ) | 6,288,702 | |||||||||||||||||
Non-redeemable noncontrolling interests | — | — | 789,594 | — | 789,594 | ||||||||||||||||||
Total shareholders’ equity | 6,288,702 | 1,270,117 | 7,918,764 | (8,399,287 | ) | 7,078,296 | |||||||||||||||||
Total liabilities, noncontrolling interests and shareholders’ equity | $ | 6,703,975 | $ | 1,833,083 | $ | 28,785,609 | $ | (14,472,987 | ) | $ | 22,849,680 | ||||||||||||
31-Dec-14 | |||||||||||||||||||||||
Condensed Consolidating Balance Sheet | ACGL (Parent Guarantor) | Arch-U.S. (Subsidiary Issuer) | Other ACGL Subsidiaries | Consolidating Adjustments and Eliminations | ACGL Consolidated | ||||||||||||||||||
Assets | |||||||||||||||||||||||
Total investments | $ | 107 | $ | 62,867 | $ | 15,268,275 | $ | — | $ | 15,331,249 | |||||||||||||
Cash | 3,218 | 2,787 | 479,697 | — | 485,702 | ||||||||||||||||||
Investments in subsidiaries | 6,536,644 | 1,685,185 | — | (8,221,829 | ) | — | |||||||||||||||||
Due from subsidiaries and affiliates | 48 | 7,517 | 370,429 | (377,994 | ) | — | |||||||||||||||||
Premiums receivable | — | — | 1,331,511 | (382,816 | ) | 948,695 | |||||||||||||||||
Reinsurance recoverable on unpaid and paid losses and loss adjustment expenses | — | — | 5,584,973 | (3,772,128 | ) | 1,812,845 | |||||||||||||||||
Contractholder receivables | — | — | 1,309,192 | — | 1,309,192 | ||||||||||||||||||
Prepaid reinsurance premiums | — | — | 1,373,008 | (995,930 | ) | 377,078 | |||||||||||||||||
Deferred acquisition costs, net | — | — | 414,525 | — | 414,525 | ||||||||||||||||||
Other assets | 7,590 | 49,576 | 1,689,670 | (416,579 | ) | 1,330,257 | |||||||||||||||||
Total assets | $ | 6,547,607 | $ | 1,807,932 | $ | 27,821,280 | $ | (14,167,276 | ) | $ | 22,009,543 | ||||||||||||
Liabilities | |||||||||||||||||||||||
Reserve for losses and loss adjustment expenses | $ | — | $ | — | $ | 12,784,030 | $ | (3,747,582 | ) | $ | 9,036,448 | ||||||||||||
Unearned premiums | — | — | 3,227,508 | (995,930 | ) | 2,231,578 | |||||||||||||||||
Reinsurance balances payable | — | — | 589,289 | (369,977 | ) | 219,312 | |||||||||||||||||
Contractholder payables | — | — | 1,309,192 | — | 1,309,192 | ||||||||||||||||||
Deposit accounting liabilities | — | — | 587,050 | (259,666 | ) | 327,384 | |||||||||||||||||
Senior notes | 300,000 | 500,000 | — | — | 800,000 | ||||||||||||||||||
Revolving credit agreement borrowings | 100,000 | — | — | — | 100,000 | ||||||||||||||||||
Due to subsidiaries and affiliates | 417 | 7,505 | 370,072 | (377,994 | ) | — | |||||||||||||||||
Other liabilities | 17,137 | 49,403 | 994,741 | (194,298 | ) | 866,983 | |||||||||||||||||
Total liabilities | 417,554 | 556,908 | 19,861,882 | (5,945,447 | ) | 14,890,897 | |||||||||||||||||
Redeemable noncontrolling interests | — | — | 219,512 | — | 219,512 | ||||||||||||||||||
Shareholders’ Equity | |||||||||||||||||||||||
Total shareholders’ equity available to Arch | 6,130,053 | 1,251,024 | 6,970,805 | (8,221,829 | ) | 6,130,053 | |||||||||||||||||
Non-redeemable noncontrolling interests | — | — | 769,081 | — | 769,081 | ||||||||||||||||||
Total shareholders’ equity | 6,130,053 | 1,251,024 | 7,739,886 | (8,221,829 | ) | 6,899,134 | |||||||||||||||||
Total liabilities, noncontrolling interests and shareholders’ equity | $ | 6,547,607 | $ | 1,807,932 | $ | 27,821,280 | $ | (14,167,276 | ) | $ | 22,009,543 | ||||||||||||
Condensed consolidating statement of income and comprehensive income | |||||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||||
Condensed Consolidating Statement of Income and Comprehensive Income | ACGL (Parent Guarantor) | Arch-U.S. (Subsidiary Issuer) | Other ACGL Subsidiaries | Consolidating Adjustments and Eliminations | ACGL Consolidated | ||||||||||||||||||
Revenues | |||||||||||||||||||||||
Net premiums earned | $ | — | $ | — | $ | 910,264 | $ | — | $ | 910,264 | |||||||||||||
Net investment income | — | 5 | 86,010 | (7,021 | ) | 78,994 | |||||||||||||||||
Net realized gains | — | — | 83,348 | — | 83,348 | ||||||||||||||||||
Net impairment losses recognized in earnings | — | — | (5,799 | ) | — | (5,799 | ) | ||||||||||||||||
Other underwriting income | — | — | 11,536 | — | 11,536 | ||||||||||||||||||
Equity in net income of investment funds accounted for using the equity method | — | — | 5,889 | — | 5,889 | ||||||||||||||||||
Other income (loss) | — | — | (1,888 | ) | — | (1,888 | ) | ||||||||||||||||
Total revenues | — | 5 | 1,089,360 | (7,021 | ) | 1,082,344 | |||||||||||||||||
Expenses | |||||||||||||||||||||||
Losses and loss adjustment expenses | — | — | 493,716 | — | 493,716 | ||||||||||||||||||
Acquisition expenses | — | — | 163,076 | — | 163,076 | ||||||||||||||||||
Other operating expenses | 8,632 | 1,259 | 147,991 | — | 157,882 | ||||||||||||||||||
Interest expense | 5,856 | 6,366 | 7,535 | (7,021 | ) | 12,736 | |||||||||||||||||
Net foreign exchange gains | — | — | (39,630 | ) | (26,871 | ) | (66,501 | ) | |||||||||||||||
Total expenses | 14,488 | 7,625 | 772,688 | (33,892 | ) | 760,909 | |||||||||||||||||
Income (loss) before income taxes | (14,488 | ) | (7,620 | ) | 316,672 | 26,871 | 321,435 | ||||||||||||||||
Income tax benefit (expense) | — | 1,413 | (14,091 | ) | — | (12,678 | ) | ||||||||||||||||
Income (loss) before equity in net income of subsidiaries | (14,488 | ) | (6,207 | ) | 302,581 | 26,871 | 308,757 | ||||||||||||||||
Equity in net income of subsidiaries | 297,824 | 14,495 | — | (312,319 | ) | — | |||||||||||||||||
Net income | 283,336 | 8,288 | 302,581 | (285,448 | ) | 308,757 | |||||||||||||||||
Amounts attributable to noncontrolling interests | — | — | (25,421 | ) | — | (25,421 | ) | ||||||||||||||||
Net income available to Arch | 283,336 | 8,288 | 277,160 | (285,448 | ) | 283,336 | |||||||||||||||||
Preferred dividends | (5,484 | ) | — | — | — | (5,484 | ) | ||||||||||||||||
Net income available to Arch common shareholders | $ | 277,852 | $ | 8,288 | $ | 277,160 | $ | (285,448 | ) | $ | 277,852 | ||||||||||||
Comprehensive income available to Arch | $ | 312,503 | $ | 11,750 | $ | 333,193 | $ | (344,943 | ) | $ | 312,503 | ||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||||
Condensed Consolidating Statement of Income and Comprehensive Income | ACGL (Parent Guarantor) | Arch-U.S. (Subsidiary Issuer) | Other ACGL Subsidiaries | Consolidating Adjustments and Eliminations | ACGL Consolidated | ||||||||||||||||||
Revenues | |||||||||||||||||||||||
Net premiums earned | $ | — | $ | — | $ | 859,780 | $ | — | $ | 859,780 | |||||||||||||
Net investment income | — | — | 77,001 | (10,007 | ) | 66,994 | |||||||||||||||||
Net realized gains | — | — | 19,697 | — | 19,697 | ||||||||||||||||||
Net impairment losses recognized in earnings | — | — | (2,971 | ) | — | (2,971 | ) | ||||||||||||||||
Other underwriting income | — | — | 1,582 | — | 1,582 | ||||||||||||||||||
Equity in net income of investment funds accounted for using the equity method | — | — | 3,253 | — | 3,253 | ||||||||||||||||||
Other income (loss) | — | — | (2,104 | ) | — | (2,104 | ) | ||||||||||||||||
Total revenues | — | — | 956,238 | (10,007 | ) | 946,231 | |||||||||||||||||
Expenses | |||||||||||||||||||||||
Losses and loss adjustment expenses | — | — | 436,240 | — | 436,240 | ||||||||||||||||||
Acquisition expenses | — | — | 160,342 | — | 160,342 | ||||||||||||||||||
Other operating expenses | 10,307 | 977 | 134,515 | — | 145,799 | ||||||||||||||||||
Interest expense | 5,853 | 6,514 | 12,044 | (10,007 | ) | 14,404 | |||||||||||||||||
Net foreign exchange losses | — | — | 5,741 | 822 | 6,563 | ||||||||||||||||||
Total expenses | 16,160 | 7,491 | 748,882 | (9,185 | ) | 763,348 | |||||||||||||||||
Income (loss) before income taxes | (16,160 | ) | (7,491 | ) | 207,356 | (822 | ) | 182,883 | |||||||||||||||
Income tax expense | — | 2,788 | (6,526 | ) | — | (3,738 | ) | ||||||||||||||||
Income (loss) before equity in net income of subsidiaries | (16,160 | ) | (4,703 | ) | 200,830 | (822 | ) | 179,145 | |||||||||||||||
Equity in net income of subsidiaries | 198,660 | 22,152 | — | (220,812 | ) | — | |||||||||||||||||
Net income | 182,500 | 17,449 | 200,830 | (221,634 | ) | 179,145 | |||||||||||||||||
Amounts attributable to noncontrolling interests | — | — | 3,355 | — | 3,355 | ||||||||||||||||||
Net income available to Arch | 182,500 | 17,449 | 204,185 | (221,634 | ) | 182,500 | |||||||||||||||||
Preferred dividends | (5,484 | ) | — | — | — | (5,484 | ) | ||||||||||||||||
Net income available to Arch common shareholders | $ | 177,016 | $ | 17,449 | $ | 204,185 | $ | (221,634 | ) | $ | 177,016 | ||||||||||||
Comprehensive income available to Arch | $ | 231,255 | $ | 17,220 | $ | 252,119 | $ | (269,339 | ) | $ | 231,255 | ||||||||||||
Condensed consolidating statement of cash flows | |||||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||||
Condensed Consolidating Statement | ACGL (Parent Guarantor) | Arch-U.S. (Subsidiary Issuer) | Other ACGL Subsidiaries | Consolidating Adjustments and Eliminations | ACGL Consolidated | ||||||||||||||||||
of Cash Flows | |||||||||||||||||||||||
Operating Activities | |||||||||||||||||||||||
Net Cash Provided By (Used For) Operating Activities | $ | 173,508 | $ | (8,950 | ) | $ | 106,903 | $ | (186,000 | ) | $ | 85,461 | |||||||||||
Investing Activities | |||||||||||||||||||||||
Purchases of fixed maturity investments | — | — | (7,030,731 | ) | — | (7,030,731 | ) | ||||||||||||||||
Purchases of equity securities | — | — | (125,863 | ) | — | (125,863 | ) | ||||||||||||||||
Purchases of other investments | — | — | (685,497 | ) | — | (685,497 | ) | ||||||||||||||||
Proceeds from the sales of fixed maturity investments | — | 9,001 | 6,848,458 | — | 6,857,459 | ||||||||||||||||||
Proceeds from the sales of equity securities | — | — | 125,906 | — | 125,906 | ||||||||||||||||||
Proceeds from the sales of other investments | — | — | 605,263 | — | 605,263 | ||||||||||||||||||
Proceeds from redemptions and maturities of fixed maturity investments | — | — | 272,657 | — | 272,657 | ||||||||||||||||||
Net purchases (sales) of short-term investments | 83 | (16 | ) | 66,216 | — | 66,283 | |||||||||||||||||
Change in cash collateral related to securities lending | — | — | (5,529 | ) | — | (5,529 | ) | ||||||||||||||||
Contributions to subsidiaries | — | — | (5,500 | ) | 5,500 | — | |||||||||||||||||
Intercompany loans issued | — | (7,500 | ) | (7,500 | ) | 15,000 | — | ||||||||||||||||
Purchase of business, net of cash acquired | — | — | (2,432 | ) | — | (2,432 | ) | ||||||||||||||||
Purchases of furniture, equipment and other assets | (23 | ) | — | (32,874 | ) | — | (32,897 | ) | |||||||||||||||
Net Cash Provided By (Used For) Investing Activities | 60 | 1,485 | 22,574 | 20,500 | 44,619 | ||||||||||||||||||
Financing Activities | |||||||||||||||||||||||
Purchases of common shares under share repurchase program | (162,898 | ) | — | — | — | (162,898 | ) | ||||||||||||||||
Proceeds from common shares issued, net | (412 | ) | — | 5,500 | (5,500 | ) | (412 | ) | |||||||||||||||
Proceeds from intercompany borrowings | — | 7,500 | 7,500 | (15,000 | ) | — | |||||||||||||||||
Change in cash collateral related to securities lending | — | — | 5,529 | — | 5,529 | ||||||||||||||||||
Dividends paid to redeemable noncontrolling interests | — | — | (4,816 | ) | — | (4,816 | ) | ||||||||||||||||
Dividends paid to parent | — | — | (186,000 | ) | 186,000 | — | |||||||||||||||||
Other | — | — | 29,779 | — | 29,779 | ||||||||||||||||||
Preferred dividends paid | (5,484 | ) | — | — | — | (5,484 | ) | ||||||||||||||||
Net Cash Provided By (Used For) Financing Activities | (168,794 | ) | 7,500 | (142,508 | ) | 165,500 | (138,302 | ) | |||||||||||||||
Effects of exchange rates changes on foreign currency cash | — | — | (6,468 | ) | — | (6,468 | ) | ||||||||||||||||
Increase (decrease) in cash | 4,774 | 35 | (19,499 | ) | — | (14,690 | ) | ||||||||||||||||
Cash beginning of year | 3,218 | 2,787 | 479,697 | — | 485,702 | ||||||||||||||||||
Cash end of period | $ | 7,992 | $ | 2,822 | $ | 460,198 | $ | — | $ | 471,012 | |||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||||
Condensed Consolidating Statement | ACGL (Parent Guarantor) | Arch-U.S. (Subsidiary Issuer) | Other ACGL Subsidiaries | Consolidating Adjustments and Eliminations | ACGL Consolidated | ||||||||||||||||||
of Cash Flows | |||||||||||||||||||||||
Operating Activities | |||||||||||||||||||||||
Net Cash Provided By (Used For) Operating Activities | $ | 11,685 | $ | 7,151 | $ | 194,833 | $ | (15,500 | ) | $ | 198,169 | ||||||||||||
Investing Activities | |||||||||||||||||||||||
Purchases of fixed maturity investments | — | — | (7,131,071 | ) | — | (7,131,071 | ) | ||||||||||||||||
Purchases of equity securities | — | — | (89,227 | ) | — | (89,227 | ) | ||||||||||||||||
Purchases of other investments | — | — | (304,454 | ) | — | (304,454 | ) | ||||||||||||||||
Proceeds from the sales of fixed maturity investments | — | — | 7,014,281 | — | 7,014,281 | ||||||||||||||||||
Proceeds from the sales of equity securities | — | — | 49,614 | — | 49,614 | ||||||||||||||||||
Proceeds from the sales of other investments | — | — | 331,176 | — | 331,176 | ||||||||||||||||||
Proceeds from redemptions and maturities of fixed maturity investments | — | — | 168,484 | — | 168,484 | ||||||||||||||||||
Net (purchases) sales of short-term investments | (16 | ) | 360,269 | (203,991 | ) | — | 156,262 | ||||||||||||||||
Change in cash collateral related to securities lending | — | — | 4,669 | — | 4,669 | ||||||||||||||||||
Contributions to subsidiaries | — | (312,207 | ) | (100,000 | ) | 412,207 | — | ||||||||||||||||
Intercompany loans issued | — | — | 10,250 | (10,250 | ) | — | |||||||||||||||||
Purchase of business, net of cash acquired | — | — | (235,578 | ) | — | (235,578 | ) | ||||||||||||||||
Purchases of furniture, equipment and other assets | (76 | ) | — | (5,306 | ) | — | (5,382 | ) | |||||||||||||||
Net Cash Provided By (Used For) Investing Activities | (92 | ) | 48,062 | (491,153 | ) | 401,957 | (41,226 | ) | |||||||||||||||
Financing Activities | |||||||||||||||||||||||
Proceeds from common shares issued, net | 3,021 | — | 412,207 | (412,207 | ) | 3,021 | |||||||||||||||||
Repayments of intercompany borrowings | — | (10,250 | ) | — | 10,250 | — | |||||||||||||||||
Change in cash collateral related to securities lending | — | — | (4,669 | ) | — | (4,669 | ) | ||||||||||||||||
Third party investment in non-redeemable noncontrolling interests | — | — | 796,903 | — | 796,903 | ||||||||||||||||||
Third party investment in redeemable noncontrolling interests | — | — | 186,893 | — | 186,893 | ||||||||||||||||||
Dividends paid to parent | — | — | (15,500 | ) | 15,500 | — | |||||||||||||||||
Other | — | — | 1,700 | — | 1,700 | ||||||||||||||||||
Preferred dividends paid | (5,484 | ) | — | — | — | (5,484 | ) | ||||||||||||||||
Net Cash Provided By (Used For) Financing Activities | (2,463 | ) | (10,250 | ) | 1,377,534 | (386,457 | ) | 978,364 | |||||||||||||||
Effects of exchange rates changes on foreign currency cash | — | — | 241 | — | 241 | ||||||||||||||||||
Increase in cash | 9,130 | 44,963 | 1,081,455 | — | 1,135,548 | ||||||||||||||||||
Cash beginning of year | 3,223 | 509 | 430,325 | — | 434,057 | ||||||||||||||||||
Cash end of period | $ | 12,353 | $ | 45,472 | $ | 1,511,780 | $ | — | $ | 1,569,605 | |||||||||||||
Variable_Interest_Entities_and2
Variable Interest Entities and Noncontrolling Interests - Variable interest entity (Details) (USD $) | 3 Months Ended | 1 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | |
Variable Interest Entity [Line Items] | ||||
Unearned premiums | $2,400,834,000 | $2,231,578,000 | ||
Reserve for losses and loss adjustment expenses | 8,928,950,000 | 9,036,448,000 | ||
Net Cash Provided by (Used in) Operating Activities | 85,461,000 | 198,169,000 | ||
Net Cash Provided by (Used in) Financing Activities | -138,302,000 | 978,364,000 | ||
Net Cash Provided by (Used in) Investing Activities | 44,619,000 | -41,226,000 | ||
Variable Interest Entity, Primary Beneficiary | Watford Holdings Ltd | ||||
Variable Interest Entity [Line Items] | ||||
Initial investment contribution amount | 100,000,000 | |||
Ownership percentage | 11.00% | |||
Variable Interest Entity, Primary Beneficiary | Watford Re | ||||
Variable Interest Entity [Line Items] | ||||
Unearned premiums | 233,000,000 | |||
Reserve for losses and loss adjustment expenses | 109,400,000 | |||
Net Cash Provided by (Used in) Operating Activities | 69,900,000 | |||
Net Cash Provided by (Used in) Financing Activities | 22,900,000 | |||
Net Cash Provided by (Used in) Investing Activities | ($35,300,000) |
Variable_Interest_Entities_and3
Variable Interest Entities and Noncontrolling Interests - Non-redeemable noncontrolling interests (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Noncontrolling Interest [Line Items] | ||
Non-redeemable noncontrolling interests, beginning of period | $769,081 | |
Amounts attributable to noncontrolling interests | 20,513 | -3,407 |
Non-redeemable noncontrolling interests, end of period | 789,594 | 793,496 |
Watford Re | ||
Noncontrolling Interest [Line Items] | ||
Non-redeemable noncontrolling interests, beginning of period | 769,081 | 0 |
Sale of shares to noncontrolling interests | 0 | 796,903 |
Amounts attributable to noncontrolling interests | 20,513 | -3,407 |
Non-redeemable noncontrolling interests, end of period | $789,594 | |
Common shares | Watford Re | ||
Noncontrolling Interest [Line Items] | ||
Noncontrolling interest, ownership percentage by noncontrolling owners | 89.00% |
Variable_Interest_Entities_and4
Variable Interest Entities and Noncontrolling Interests - Redeemable noncontrolling interests (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Redeemable Noncontrolling Interest [Line Items] | ||
Amounts attributable to noncontrolling interests | $25,421 | ($3,355) |
Amounts attributable to noncontrolling interests | 20,513 | -3,407 |
Dividends attributable to redeemable noncontrolling interests | 4,908 | 52 |
Watford Re | ||
Redeemable Noncontrolling Interest [Line Items] | ||
Preference shares, number of shares issued | 9,065,200 | |
Par value per share | $0.01 | |
Liquidation preference per share | $25 | |
Amounts attributable to noncontrolling interests | $20,513 | ($3,407) |
Cumulative redeemable preference shares | Watford Re | ||
Redeemable Noncontrolling Interest [Line Items] | ||
Noncontrolling interest, ownership percentage by noncontrolling owners | 100.00% |
Earnings_Per_Common_Share_Deta
Earnings Per Common Share (Details) (USD $) | 3 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Numerator: | ||||
Net income | $308,757 | $179,145 | ||
Amounts attributable to noncontrolling interests | -25,421 | 3,355 | ||
Net income available to Arch | 283,336 | 182,500 | ||
Preferred dividends | -5,484 | -5,484 | ||
Net income available to Arch common shareholders | $277,852 | $177,016 | ||
Denominator: | ||||
Weighted average common shares outstanding b basic | 124,209,276 | 131,857,910 | ||
Effect of dilutive common share equivalents: | ||||
Nonvested restricted shares | 1,416,801 | 1,346,401 | ||
Stock options | 2,824,977 | [1] | 3,358,406 | [1] |
Weighted average common shares and common share equivalents outstanding b diluted | 128,451,054 | 136,562,717 | ||
Earnings per common share: | ||||
Basic (per share) | $2.24 | $1.34 | ||
Diluted (per share) | $2.16 | $1.30 | ||
Stock Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per common share (shares) | 703,853 | 759,172 | ||
[1] | Certain stock options were not included in the computation of diluted earnings per share where the exercise price of the stock options exceeded the average market price and would have been anti-dilutive or where, when applying the treasury stock method to in-the-money options, the sum of the proceeds, including unrecognized compensation, exceeded the average market price and would have been anti-dilutive. For the 2015 first quarter and 2014 first quarter, the number of stock options excluded were 703,853 and 759,172, respectively. |
Segment_Information_Summary_of
Segment Information - Summary of underwriting income or loss by segment (Details) (USD $) | 3 Months Ended | ||||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | ||
Segment Reporting Information [Line Items] | |||||
Gross premiums written | $1,342,022 | $1,295,136 | |||
Premiums ceded | -275,027 | -230,146 | |||
Net premiums written | 1,066,995 | 1,064,990 | |||
Change in unearned premiums | -156,731 | -205,210 | |||
Net premiums earned | 910,264 | 859,780 | |||
Other underwriting income | 11,536 | 1,582 | |||
Losses and loss adjustment expenses | -493,716 | -436,240 | |||
Acquisition expenses, net | -163,076 | -160,342 | |||
Other operating expenses | -148,537 | -132,324 | |||
Underwriting income (loss) | 116,471 | 132,456 | |||
Net investment income | 78,994 | 66,994 | |||
Net realized gains (losses) | 83,348 | 19,697 | |||
Net impairment losses recognized in earnings | -5,799 | -2,971 | |||
Equity in net income (loss) of investment funds accounted for using the equity method | 5,889 | 3,253 | |||
Other income (loss) | -1,888 | -2,104 | |||
Other expenses | -9,345 | -13,475 | |||
Interest expense | -12,736 | -14,404 | |||
Net foreign exchange gains (losses) | 66,501 | -6,563 | |||
Income before income taxes | 321,435 | 182,883 | |||
Income tax expense | -12,678 | -3,738 | |||
Net income | 308,757 | 179,145 | |||
Dividends attributable to redeemable noncontrolling interests | -4,908 | -52 | |||
Amounts attributable to noncontrolling interests | -20,513 | 3,407 | |||
Net income available to Arch | 283,336 | 182,500 | |||
Preferred dividends | -5,484 | -5,484 | |||
Net income available to Arch common shareholders | 277,852 | 177,016 | |||
Underwriting Ratios | |||||
Loss ratio | 54.20% | 50.70% | |||
Acquisition expense ratio | 17.90% | 18.60% | |||
Other operating expense ratio | 16.30% | 15.40% | |||
Combined ratio | 88.40% | 84.70% | |||
Goodwill and intangible assets | 106,745 | 120,875 | 109,539 | ||
Total investable assets | 15,724,200 | 15,344,386 | |||
Total assets | 22,849,680 | 21,800,358 | 22,009,543 | ||
Total liabilities | 15,551,780 | 14,895,495 | 14,890,897 | ||
Sub-Total | |||||
Segment Reporting Information [Line Items] | |||||
Gross premiums written | 1,311,678 | [1] | 1,295,136 | [1] | |
Premiums ceded | -369,261 | -262,340 | |||
Net premiums written | 942,417 | 1,032,796 | |||
Change in unearned premiums | -104,419 | -175,182 | |||
Net premiums earned | 837,998 | 857,614 | |||
Other underwriting income | 9,574 | 1,582 | |||
Losses and loss adjustment expenses | -444,237 | -434,884 | |||
Acquisition expenses, net | -142,100 | -159,519 | |||
Other operating expenses | -146,532 | -131,215 | |||
Underwriting income (loss) | 114,703 | 133,578 | |||
Net investment income | 70,288 | 66,993 | |||
Net realized gains (losses) | 65,509 | 19,697 | |||
Net impairment losses recognized in earnings | -5,799 | -2,971 | |||
Equity in net income (loss) of investment funds accounted for using the equity method | 5,889 | 3,253 | |||
Other income (loss) | -1,888 | -2,104 | |||
Other expenses | -9,345 | -10,799 | |||
Interest expense | -12,736 | -14,404 | |||
Net foreign exchange gains (losses) | 66,853 | -6,656 | |||
Income before income taxes | 293,474 | 186,587 | |||
Income tax expense | -12,678 | -3,738 | |||
Net income | 280,796 | 182,849 | |||
Dividends attributable to redeemable noncontrolling interests | 0 | 0 | |||
Amounts attributable to noncontrolling interests | 0 | 0 | |||
Net income available to Arch | 280,796 | 182,849 | |||
Preferred dividends | -5,484 | -5,484 | |||
Net income available to Arch common shareholders | 275,312 | 177,365 | |||
Underwriting Ratios | |||||
Loss ratio | 53.00% | 50.70% | |||
Acquisition expense ratio | 17.00% | 18.60% | |||
Other operating expense ratio | 17.50% | 15.30% | |||
Combined ratio | 87.50% | 84.60% | |||
Goodwill and intangible assets | 106,745 | 120,875 | |||
Total investable assets | 14,456,612 | 14,261,106 | |||
Total assets | 21,227,143 | 20,653,897 | |||
Total liabilities | 15,036,245 | 14,860,124 | |||
Sub-Total | Insurance | |||||
Segment Reporting Information [Line Items] | |||||
Gross premiums written | 766,153 | [1] | 730,646 | [1] | |
Premiums ceded | -224,150 | -185,044 | |||
Net premiums written | 542,003 | 545,602 | |||
Change in unearned premiums | -34,089 | -68,101 | |||
Net premiums earned | 507,914 | 477,501 | |||
Other underwriting income | 427 | 500 | |||
Losses and loss adjustment expenses | -317,896 | -286,770 | |||
Acquisition expenses, net | -75,078 | -76,932 | |||
Other operating expenses | -88,119 | -81,144 | |||
Underwriting income (loss) | 27,248 | 33,155 | |||
Underwriting Ratios | |||||
Loss ratio | 62.60% | 60.10% | |||
Acquisition expense ratio | 14.80% | 16.10% | |||
Other operating expense ratio | 17.30% | 17.00% | |||
Combined ratio | 94.70% | 93.20% | |||
Goodwill and intangible assets | 30,526 | 20,184 | |||
Sub-Total | Reinsurance | |||||
Segment Reporting Information [Line Items] | |||||
Gross premiums written | 485,112 | [1] | 517,053 | [1] | |
Premiums ceded | -136,569 | -73,127 | |||
Net premiums written | 348,543 | 443,926 | |||
Change in unearned premiums | -68,826 | -102,578 | |||
Net premiums earned | 279,717 | 341,348 | |||
Other underwriting income | 1,429 | 316 | |||
Losses and loss adjustment expenses | -112,532 | -139,636 | |||
Acquisition expenses, net | -56,604 | -73,433 | |||
Other operating expenses | -38,044 | -36,195 | |||
Underwriting income (loss) | 73,966 | 92,400 | |||
Underwriting Ratios | |||||
Loss ratio | 40.20% | 40.90% | |||
Acquisition expense ratio | 20.20% | 21.50% | |||
Other operating expense ratio | 13.60% | 10.60% | |||
Combined ratio | 74.00% | 73.00% | |||
Goodwill and intangible assets | 2,687 | 5,803 | |||
Sub-Total | Mortgage | |||||
Segment Reporting Information [Line Items] | |||||
Gross premiums written | 60,541 | [1] | 47,907 | [1] | |
Premiums ceded | -8,670 | -4,639 | |||
Net premiums written | 51,871 | 43,268 | |||
Change in unearned premiums | -1,504 | -4,503 | |||
Net premiums earned | 50,367 | 38,765 | |||
Other underwriting income | 7,718 | 766 | |||
Losses and loss adjustment expenses | -13,809 | -8,478 | |||
Acquisition expenses, net | -10,418 | -9,154 | |||
Other operating expenses | -20,369 | -13,876 | |||
Underwriting income (loss) | 13,489 | 8,023 | |||
Underwriting Ratios | |||||
Loss ratio | 27.40% | 21.90% | |||
Acquisition expense ratio | 20.70% | 23.60% | |||
Other operating expense ratio | 40.40% | 35.80% | |||
Combined ratio | 88.50% | 81.30% | |||
Goodwill and intangible assets | 73,532 | 94,888 | |||
Other | |||||
Segment Reporting Information [Line Items] | |||||
Gross premiums written | 128,633 | [1] | 32,194 | [1] | |
Premiums ceded | -4,055 | 0 | |||
Net premiums written | 124,578 | 32,194 | |||
Change in unearned premiums | -52,312 | -30,028 | |||
Net premiums earned | 72,266 | 2,166 | |||
Other underwriting income | 1,962 | 0 | |||
Losses and loss adjustment expenses | -49,479 | -1,356 | |||
Acquisition expenses, net | -20,976 | -823 | |||
Other operating expenses | -2,005 | -1,109 | |||
Underwriting income (loss) | 1,768 | -1,122 | |||
Net investment income | 8,706 | 1 | |||
Net realized gains (losses) | 17,839 | 0 | |||
Net impairment losses recognized in earnings | 0 | 0 | |||
Equity in net income (loss) of investment funds accounted for using the equity method | 0 | 0 | |||
Other income (loss) | 0 | 0 | |||
Other expenses | 0 | -2,676 | |||
Interest expense | 0 | 0 | |||
Net foreign exchange gains (losses) | -352 | 93 | |||
Income before income taxes | 27,961 | -3,704 | |||
Income tax expense | 0 | 0 | |||
Net income | 27,961 | -3,704 | |||
Dividends attributable to redeemable noncontrolling interests | -4,908 | -52 | |||
Amounts attributable to noncontrolling interests | -20,513 | 3,407 | |||
Net income available to Arch | 2,540 | -349 | |||
Preferred dividends | 0 | 0 | |||
Net income available to Arch common shareholders | 2,540 | -349 | |||
Underwriting Ratios | |||||
Loss ratio | 68.50% | 62.60% | |||
Acquisition expense ratio | 29.00% | 38.00% | |||
Other operating expense ratio | 2.80% | 51.20% | |||
Combined ratio | 100.30% | 151.80% | |||
Goodwill and intangible assets | 0 | 0 | |||
Total investable assets | 1,267,588 | 1,083,280 | |||
Total assets | 1,622,537 | 1,146,461 | |||
Total liabilities | $515,535 | $35,371 | |||
[1] | Certain amounts included in the gross premiums written of each segment are related to intersegment transactions. Accordingly, the sum of gross premiums written for each segment does not agree to the total gross premiums written as shown in the table above due to the elimination of intersegment transactions in the total. |
Segment_Information_Narrative_
Segment Information - Narrative (Details) | 3 Months Ended |
Mar. 31, 2015 | |
segment | |
Underwriting segments | |
Segment Reporting Information [Line Items] | |
Number of underwriting segments | 3 |
Other | |
Segment Reporting Information [Line Items] | |
Number of underwriting segments | 2 |
Investment_Information_Summary
Investment Information - Summary of available for sale securities (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | ||
Available for sale securities: | ||||
Estimated Fair Value | $12,553,347 | $12,553,204 | ||
Gross Unrealized Gains | 354,037 | 282,262 | ||
Gross Unrealized Losses | -127,773 | -111,730 | ||
Cost or Amortized Cost | 12,327,083 | 12,382,672 | ||
OTTI Unrealized Losses | -4,887 | [1] | -3,646 | [1] |
Fixed maturities and fixed maturities pledged under securities lending agreements | ||||
Available for sale securities: | ||||
Estimated Fair Value | 10,680,925 | 10,801,572 | ||
Gross Unrealized Gains | 194,397 | [2] | 140,673 | [2] |
Gross Unrealized Losses | -110,581 | [2] | -92,734 | [2] |
Cost or Amortized Cost | 10,597,109 | [2] | 10,753,633 | [2] |
OTTI Unrealized Losses | -4,722 | [1],[2] | -3,646 | [1],[2] |
Fixed maturities and fixed maturities pledged under securities lending agreements | Corporate bonds | ||||
Available for sale securities: | ||||
Estimated Fair Value | 3,119,437 | 3,108,513 | ||
Gross Unrealized Gains | 62,922 | [2] | 37,928 | [2] |
Gross Unrealized Losses | -46,982 | [2] | -38,974 | [2] |
Cost or Amortized Cost | 3,103,497 | [2] | 3,109,559 | [2] |
OTTI Unrealized Losses | -1,143 | [1],[2] | -317 | [1],[2] |
Fixed maturities and fixed maturities pledged under securities lending agreements | Mortgage backed securities | ||||
Available for sale securities: | ||||
Estimated Fair Value | 821,611 | 943,343 | ||
Gross Unrealized Gains | 20,996 | [2] | 18,843 | [2] |
Gross Unrealized Losses | -2,065 | [2] | -3,842 | [2] |
Cost or Amortized Cost | 802,680 | [2] | 928,342 | [2] |
OTTI Unrealized Losses | -3,557 | [1],[2] | -3,307 | [1],[2] |
Fixed maturities and fixed maturities pledged under securities lending agreements | Municipal bonds | ||||
Available for sale securities: | ||||
Estimated Fair Value | 1,626,580 | 1,494,122 | ||
Gross Unrealized Gains | 33,377 | [2] | 31,227 | [2] |
Gross Unrealized Losses | -2,013 | [2] | -1,044 | [2] |
Cost or Amortized Cost | 1,595,216 | [2] | 1,463,939 | [2] |
OTTI Unrealized Losses | 0 | [1],[2] | 0 | [1],[2] |
Fixed maturities and fixed maturities pledged under securities lending agreements | Commercial mortgage backed securities | ||||
Available for sale securities: | ||||
Estimated Fair Value | 1,106,332 | 1,114,528 | ||
Gross Unrealized Gains | 23,083 | [2] | 14,594 | [2] |
Gross Unrealized Losses | -2,497 | [2] | -3,822 | [2] |
Cost or Amortized Cost | 1,085,746 | [2] | 1,103,756 | [2] |
OTTI Unrealized Losses | 0 | [1],[2] | 0 | [1],[2] |
Fixed maturities and fixed maturities pledged under securities lending agreements | US government and government agencies | ||||
Available for sale securities: | ||||
Estimated Fair Value | 1,517,834 | 1,447,972 | ||
Gross Unrealized Gains | 16,821 | [2] | 8,345 | [2] |
Gross Unrealized Losses | -776 | [2] | -1,760 | [2] |
Cost or Amortized Cost | 1,501,789 | [2] | 1,441,387 | [2] |
OTTI Unrealized Losses | 0 | [1],[2] | 0 | [1],[2] |
Fixed maturities and fixed maturities pledged under securities lending agreements | Non-US government securities | ||||
Available for sale securities: | ||||
Estimated Fair Value | 831,200 | 1,015,153 | ||
Gross Unrealized Gains | 23,118 | [2] | 21,311 | [2] |
Gross Unrealized Losses | -52,685 | [2] | -37,203 | [2] |
Cost or Amortized Cost | 860,767 | [2] | 1,031,045 | [2] |
OTTI Unrealized Losses | 0 | [1],[2] | 0 | [1],[2] |
Fixed maturities and fixed maturities pledged under securities lending agreements | Asset backed securities | ||||
Available for sale securities: | ||||
Estimated Fair Value | 1,657,931 | 1,677,941 | ||
Gross Unrealized Gains | 14,080 | [2] | 8,425 | [2] |
Gross Unrealized Losses | -3,563 | [2] | -6,089 | [2] |
Cost or Amortized Cost | 1,647,414 | [2] | 1,675,605 | [2] |
OTTI Unrealized Losses | -22 | [1],[2] | -22 | [1],[2] |
Equity securities | ||||
Available for sale securities: | ||||
Estimated Fair Value | 687,713 | 658,182 | ||
Gross Unrealized Gains | 121,660 | 109,012 | ||
Gross Unrealized Losses | -12,467 | -13,364 | ||
Cost or Amortized Cost | 578,520 | 562,534 | ||
OTTI Unrealized Losses | 0 | [1] | 0 | [1] |
Other investments | ||||
Available for sale securities: | ||||
Estimated Fair Value | 329,677 | 296,224 | ||
Gross Unrealized Gains | 37,964 | 31,839 | ||
Gross Unrealized Losses | -574 | -362 | ||
Cost or Amortized Cost | 292,287 | 264,747 | ||
OTTI Unrealized Losses | -165 | [1] | 0 | [1] |
Short-term investments | ||||
Available for sale securities: | ||||
Estimated Fair Value | 855,032 | 797,226 | ||
Gross Unrealized Gains | 16 | 738 | ||
Gross Unrealized Losses | -4,151 | -5,270 | ||
Cost or Amortized Cost | 859,167 | 801,758 | ||
OTTI Unrealized Losses | $0 | [1] | $0 | [1] |
[1] | Represents the total other-than-temporary impairments (bOTTIb) recognized in accumulated other comprehensive income (bAOCIb). It does not include the change in fair value subsequent to the impairment measurement date. At March 31, 2015, the net unrealized loss related to securities for which a non-credit OTTI was recognized in AOCI was $0.3 million, compared to a net unrealized gain of $0.9 million at December 31, 2014. | |||
[2] | In securities lending transactions, the Company receives collateral in excess of the fair value of the fixed maturities and short-term investments pledged. For purposes of this table, the Company has excluded the collateral received and reinvested and included the fixed maturities and short-term investments pledged. See bbSecurities Lending Agreements.b |
Investment_Information_Aging_o
Investment Information - Aging of available for sale securities in an unrealized loss position (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Available for sale securities: | ||||
Estimated Fair Value - Less than 12 Months | $2,655,670 | $4,108,030 | ||
Gross Unrealized Losses - Less than 12 Months | -108,900 | -90,017 | ||
Estimated Fair Value - 12 Months or More | 330,374 | 641,407 | ||
Gross Unrealized Losses - 12 Months or More | -18,873 | -21,713 | ||
Estimated Fair Value - Total | 2,986,044 | 4,749,437 | ||
Gross Unrealized Losses - Total | -127,773 | -111,730 | ||
Fixed maturities and fixed maturities pledged under securities lending agreements | ||||
Available for sale securities: | ||||
Estimated Fair Value - Less than 12 Months | 2,244,477 | [1] | 3,788,119 | [1] |
Gross Unrealized Losses - Less than 12 Months | -91,708 | [1] | -71,021 | [1] |
Estimated Fair Value - 12 Months or More | 330,374 | [1] | 641,407 | [1] |
Gross Unrealized Losses - 12 Months or More | -18,873 | [1] | -21,713 | [1] |
Estimated Fair Value - Total | 2,574,851 | [1] | 4,429,526 | [1] |
Gross Unrealized Losses - Total | -110,581 | [1] | -92,734 | [1] |
Fixed maturities and fixed maturities pledged under securities lending agreements | Corporate bonds | ||||
Available for sale securities: | ||||
Estimated Fair Value - Less than 12 Months | 810,064 | [1] | 1,309,637 | [1] |
Gross Unrealized Losses - Less than 12 Months | -40,337 | [1] | -32,903 | [1] |
Estimated Fair Value - 12 Months or More | 60,249 | [1] | 148,963 | [1] |
Gross Unrealized Losses - 12 Months or More | -6,645 | [1] | -6,071 | [1] |
Estimated Fair Value - Total | 870,313 | [1] | 1,458,600 | [1] |
Gross Unrealized Losses - Total | -46,982 | [1] | -38,974 | [1] |
Fixed maturities and fixed maturities pledged under securities lending agreements | Mortgage backed securities | ||||
Available for sale securities: | ||||
Estimated Fair Value - Less than 12 Months | 142,833 | [1] | 293,624 | [1] |
Gross Unrealized Losses - Less than 12 Months | -1,333 | [1] | -1,476 | [1] |
Estimated Fair Value - 12 Months or More | 29,939 | [1] | 59,107 | [1] |
Gross Unrealized Losses - 12 Months or More | -732 | [1] | -2,366 | [1] |
Estimated Fair Value - Total | 172,772 | [1] | 352,731 | [1] |
Gross Unrealized Losses - Total | -2,065 | [1] | -3,842 | [1] |
Fixed maturities and fixed maturities pledged under securities lending agreements | Municipal bonds | ||||
Available for sale securities: | ||||
Estimated Fair Value - Less than 12 Months | 241,211 | [1] | 210,614 | [1] |
Gross Unrealized Losses - Less than 12 Months | -1,494 | [1] | -588 | [1] |
Estimated Fair Value - 12 Months or More | 13,573 | [1] | 13,643 | [1] |
Gross Unrealized Losses - 12 Months or More | -519 | [1] | -456 | [1] |
Estimated Fair Value - Total | 254,784 | [1] | 224,257 | [1] |
Gross Unrealized Losses - Total | -2,013 | [1] | -1,044 | [1] |
Fixed maturities and fixed maturities pledged under securities lending agreements | Commercial mortgage backed securities | ||||
Available for sale securities: | ||||
Estimated Fair Value - Less than 12 Months | 194,085 | [1] | 232,147 | [1] |
Gross Unrealized Losses - Less than 12 Months | -2,375 | [1] | -770 | [1] |
Estimated Fair Value - 12 Months or More | 30,774 | [1] | 125,894 | [1] |
Gross Unrealized Losses - 12 Months or More | -122 | [1] | -3,052 | [1] |
Estimated Fair Value - Total | 224,859 | [1] | 358,041 | [1] |
Gross Unrealized Losses - Total | -2,497 | [1] | -3,822 | [1] |
Fixed maturities and fixed maturities pledged under securities lending agreements | US government and government agencies | ||||
Available for sale securities: | ||||
Estimated Fair Value - Less than 12 Months | 148,004 | [1] | 618,381 | [1] |
Gross Unrealized Losses - Less than 12 Months | -776 | [1] | -1,626 | [1] |
Estimated Fair Value - 12 Months or More | 0 | [1] | 3,438 | [1] |
Gross Unrealized Losses - 12 Months or More | 0 | [1] | -134 | [1] |
Estimated Fair Value - Total | 148,004 | [1] | 621,819 | [1] |
Gross Unrealized Losses - Total | -776 | [1] | -1,760 | [1] |
Fixed maturities and fixed maturities pledged under securities lending agreements | Non-US government securities | ||||
Available for sale securities: | ||||
Estimated Fair Value - Less than 12 Months | 376,737 | [1] | 510,766 | [1] |
Gross Unrealized Losses - Less than 12 Months | -43,321 | [1] | -31,172 | [1] |
Estimated Fair Value - 12 Months or More | 38,091 | [1] | 46,910 | [1] |
Gross Unrealized Losses - 12 Months or More | -9,364 | [1] | -6,031 | [1] |
Estimated Fair Value - Total | 414,828 | [1] | 557,676 | [1] |
Gross Unrealized Losses - Total | -52,685 | [1] | -37,203 | [1] |
Fixed maturities and fixed maturities pledged under securities lending agreements | Asset backed securities | ||||
Available for sale securities: | ||||
Estimated Fair Value - Less than 12 Months | 331,543 | [1] | 612,950 | [1] |
Gross Unrealized Losses - Less than 12 Months | -2,072 | [1] | -2,486 | [1] |
Estimated Fair Value - 12 Months or More | 157,748 | [1] | 243,452 | [1] |
Gross Unrealized Losses - 12 Months or More | -1,491 | [1] | -3,603 | [1] |
Estimated Fair Value - Total | 489,291 | [1] | 856,402 | [1] |
Gross Unrealized Losses - Total | -3,563 | [1] | -6,089 | [1] |
Equity securities | ||||
Available for sale securities: | ||||
Estimated Fair Value - Less than 12 Months | 226,711 | 181,002 | ||
Gross Unrealized Losses - Less than 12 Months | -12,467 | -13,364 | ||
Estimated Fair Value - 12 Months or More | 0 | 0 | ||
Gross Unrealized Losses - 12 Months or More | 0 | 0 | ||
Estimated Fair Value - Total | 226,711 | 181,002 | ||
Gross Unrealized Losses - Total | -12,467 | -13,364 | ||
Other investments | ||||
Available for sale securities: | ||||
Estimated Fair Value - Less than 12 Months | 128,867 | 59,638 | ||
Gross Unrealized Losses - Less than 12 Months | -574 | -362 | ||
Estimated Fair Value - 12 Months or More | 0 | 0 | ||
Gross Unrealized Losses - 12 Months or More | 0 | 0 | ||
Estimated Fair Value - Total | 128,867 | 59,638 | ||
Gross Unrealized Losses - Total | -574 | -362 | ||
Short-term investments | ||||
Available for sale securities: | ||||
Estimated Fair Value - Less than 12 Months | 55,615 | 79,271 | ||
Gross Unrealized Losses - Less than 12 Months | -4,151 | -5,270 | ||
Estimated Fair Value - 12 Months or More | 0 | 0 | ||
Gross Unrealized Losses - 12 Months or More | 0 | 0 | ||
Estimated Fair Value - Total | 55,615 | 79,271 | ||
Gross Unrealized Losses - Total | ($4,151) | ($5,270) | ||
[1] | In securities lending transactions, the Company receives collateral in excess of the fair value of the fixed maturities and short-term investments pledged. For purposes of this table, the Company has excluded the collateral received and reinvested and included the fixed maturities and short-term investments pledged. See bbSecurities Lending Agreements.b |
Investment_Information_Maturit
Investment Information - Maturity profile of available for sale securities) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Estimated Fair Value: | ||
Estimated fair value | $10,427,810 | $10,750,770 |
Amortized Cost: | ||
Amortized cost | 10,343,330 | 10,701,557 |
Fixed maturities and fixed maturities pledged under securities lending agreements | ||
Estimated Fair Value: | ||
Due in one year or less | 267,975 | 235,930 |
Due after one year through five years | 3,824,832 | 4,074,562 |
Due after five years through 10 years | 2,651,327 | 2,475,726 |
Due after 10 years | 350,917 | 279,542 |
Single maturity date | 7,095,051 | 7,065,760 |
Estimated fair value | 10,680,925 | 10,801,572 |
Amortized Cost: | ||
Due in one year or less | 268,219 | 233,794 |
Due after one year through five years | 3,819,036 | 4,077,408 |
Due after five years through 10 years | 2,630,130 | 2,461,356 |
Due after 10 years | 343,884 | 273,372 |
Single maturity date | 7,061,269 | 7,045,930 |
Amortized cost | 10,597,109 | 10,753,633 |
Fixed maturities and fixed maturities pledged under securities lending agreements | Mortgage backed securities | ||
Estimated Fair Value: | ||
Securities without single maturity date | 821,611 | 943,343 |
Amortized Cost: | ||
Securities without single maturity date | 802,680 | 928,342 |
Fixed maturities and fixed maturities pledged under securities lending agreements | Commercial mortgage backed securities | ||
Estimated Fair Value: | ||
Securities without single maturity date | 1,106,332 | 1,114,528 |
Amortized Cost: | ||
Securities without single maturity date | 1,085,746 | 1,103,756 |
Fixed maturities and fixed maturities pledged under securities lending agreements | Asset backed securities | ||
Estimated Fair Value: | ||
Securities without single maturity date | 1,657,931 | 1,677,941 |
Amortized Cost: | ||
Securities without single maturity date | $1,647,414 | $1,675,605 |
Investment_Information_Other_i
Investment Information - Other investments (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Schedule Of Other Investments [Line Items] | ||||
Other investments and fair value option investments | $1,887,501 | $1,848,131 | ||
Available for sale | ||||
Schedule Of Other Investments [Line Items] | ||||
Other investments and fair value option investments | 329,677 | 296,224 | ||
Available for sale | Investment grade fixed income | ||||
Schedule Of Other Investments [Line Items] | ||||
Other investments and fair value option investments | 59,590 | 59,638 | ||
Available for sale | Asian and emerging markets | ||||
Schedule Of Other Investments [Line Items] | ||||
Other investments and fair value option investments | 270,087 | 236,586 | ||
Fair value option | ||||
Schedule Of Other Investments [Line Items] | ||||
Other investments and fair value option investments | 1,557,824 | 1,551,907 | ||
Fair value option | Term loan investments | ||||
Schedule Of Other Investments [Line Items] | ||||
Other investments and fair value option investments | 1,044,762 | 1,073,649 | ||
Other investments par | 1,055,264 | 1,094,337 | ||
Fair value option | Mezzanine debt funds | ||||
Schedule Of Other Investments [Line Items] | ||||
Other investments and fair value option investments | 121,570 | 121,341 | ||
Fair value option | Credit related funds | ||||
Schedule Of Other Investments [Line Items] | ||||
Other investments and fair value option investments | 138,576 | 114,436 | ||
Fair value option | Investment grade fixed income | ||||
Schedule Of Other Investments [Line Items] | ||||
Other investments and fair value option investments | 63,162 | 69,108 | ||
Fair value option | Asian and emerging markets | ||||
Schedule Of Other Investments [Line Items] | ||||
Other investments and fair value option investments | 26,846 | 25,800 | ||
Fair value option | Other | ||||
Schedule Of Other Investments [Line Items] | ||||
Other investments and fair value option investments | $162,908 | [1] | $147,573 | [1] |
[1] | Includes fund investments with strategies in mortgage servicing rights, transportation and infrastructure assets and other. |
Investment_Information_Fair_va
Investment Information - Fair value option (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investments accounted for using the fair value option | $2,441,986 | $2,435,532 |
Fixed Maturities | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investments accounted for using the fair value option | 757,467 | 632,024 |
Other investments | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investments accounted for using the fair value option | 1,557,824 | 1,551,907 |
Short-term investments | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investments accounted for using the fair value option | 125,788 | 251,601 |
Equity securities | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investments accounted for using the fair value option | $907 | $0 |
Investment_Information_Net_inv
Investment Information - Net investment income (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Net investment income: | ||||
Gross investment income | $98,962 | $76,163 | ||
Investment expenses | -19,968 | -9,169 | ||
Net investment income | 78,994 | 66,994 | ||
Fixed Maturities | ||||
Net investment income: | ||||
Gross investment income | 68,596 | 62,449 | ||
Term loan investments | ||||
Net investment income: | ||||
Gross investment income | 14,744 | 5,669 | ||
Equity securities (dividends) | ||||
Net investment income: | ||||
Gross investment income | 2,679 | 2,921 | ||
Short-term investments | ||||
Net investment income: | ||||
Gross investment income | 196 | 405 | ||
Other | ||||
Net investment income: | ||||
Gross investment income | $12,747 | [1] | $4,719 | [1] |
[1] | Includes dividends on investment funds and other items. |
Investment_Information_Net_rea
Investment Information - Net realized gains and losses (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Net realized gains and losses: | ||||
Available for sale securities, gross gains on investment sales | $97,591 | $66,051 | ||
Available for sale securities, gross losses on investment sales | -55,160 | -40,013 | ||
Derivative instruments | 36,676 | [1] | -12,768 | [1] |
Other | -4,588 | [2] | -2,706 | [2] |
Net realized gains (losses) | 83,348 | 19,697 | ||
Fixed Maturities | ||||
Net realized gains and losses: | ||||
Change in fair value of assets and liabilities accounted for using the fair value option | -3,302 | -1,643 | ||
Other investments | ||||
Net realized gains and losses: | ||||
Change in fair value of assets and liabilities accounted for using the fair value option | 6,287 | 10,776 | ||
Equity securities | ||||
Net realized gains and losses: | ||||
Change in fair value of assets and liabilities accounted for using the fair value option | -2 | 0 | ||
Short-term investments | ||||
Net realized gains and losses: | ||||
Change in fair value of assets and liabilities accounted for using the fair value option | $5,846 | $0 | ||
[1] | See Note 8 for information on the Companybs derivative instruments. | |||
[2] | Includes accretion of contingent consideration liability amounts related to the 2014 acquisition of CMG Mortgage Insurance Company and its affiliated mortgage insurance companies. |
Investment_Information_Other_t
Investment Information - Other than temporary impairments recognized in earnings (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Net impairment losses recognized in earnings | ($5,799) | ($2,971) |
Fixed Maturities | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Net impairment losses recognized in earnings | -3,048 | -6 |
Fixed Maturities | Mortgage backed securities | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Net impairment losses recognized in earnings | -1,072 | 0 |
Fixed Maturities | Corporate bonds | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Net impairment losses recognized in earnings | -1,976 | 0 |
Fixed Maturities | Asset backed securities | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Net impairment losses recognized in earnings | 0 | -6 |
Short-term investments | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Net impairment losses recognized in earnings | -2,341 | 0 |
Equity securities | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Net impairment losses recognized in earnings | -129 | 0 |
Other investments | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Net impairment losses recognized in earnings | ($281) | ($2,965) |
Investment_Information_Other_t1
Investment Information - Other than temporary impairments rollforward (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Rollforward: | ||
Balance at start of period | $20,196 | $60,062 |
Credit loss impairments recognized on securities not previously impaired | 4,489 | 0 |
Credit loss impairments recognized on securities previously impaired | 79 | 6 |
Reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security | 0 | 0 |
Reductions for securities sold during the period | -420 | -12,812 |
Balance at end of period | $24,344 | $47,256 |
Investment_Information_Restric
Investment Information - Restricted assets (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Restricted Assets [Line Items] | ||
Restricted assets | $5,536,925 | $5,519,089 |
Collateral or guarantees - affiliated transactions | ||
Restricted Assets [Line Items] | ||
Restricted assets | 4,054,848 | 4,138,527 |
Collateral or guarantees - third party agreements | ||
Restricted Assets [Line Items] | ||
Restricted assets | 1,010,214 | 970,120 |
Deposits with US regulatory authorities | ||
Restricted Assets [Line Items] | ||
Restricted assets | 407,190 | 337,981 |
Trust funds | ||
Restricted Assets [Line Items] | ||
Restricted assets | $64,673 | $72,461 |
Investment_Information_Narrati
Investment Information - Narrative (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | |||
lots | lots | ||||
Narrative items: | |||||
Investable assets | $15,724,200,000 | $15,344,386,000 | |||
OTTI unrealized losses at current fair value | -300,000 | 900,000 | |||
Continuous unrealized loss, qualitative disclosures: | |||||
Number of positions in an unrealized loss position (lots) | 1,360 | 1,900 | |||
Total number of positions (lots) | 5,130 | 4,790 | |||
Largest single loss | 3,300,000 | 2,900,000 | |||
Securities lending, qualitative disclosures: | |||||
Fair value of fixed maturities and short-term investments pledged under securities lending agreements | 253,100,000 | 50,800,000 | |||
Amortized cost of fixed maturities and short-term investments pledged under securities lending agreements | 253,800,000 | 52,100,000 | |||
Fair value of cash collateral received on securities lending | 49,900,000 | 44,300,000 | |||
Fair value of non-cash collateral received on securities lending | 207,200,000 | 0 | |||
Approximate fair value of sub-prime securities backing the securities lending program | 5,700,000 | 5,800,000 | |||
OTTI unrealized losses (gains) | 4,887,000 | [1] | 3,646,000 | [1] | |
Underwriting segments | |||||
Narrative items: | |||||
Investable assets | 14,456,612,000 | 14,261,106,000 | |||
Other | |||||
Narrative items: | |||||
Investable assets | $1,267,588,000 | $1,083,280,000 | |||
[1] | Represents the total other-than-temporary impairments (bOTTIb) recognized in accumulated other comprehensive income (bAOCIb). It does not include the change in fair value subsequent to the impairment measurement date. At March 31, 2015, the net unrealized loss related to securities for which a non-credit OTTI was recognized in AOCI was $0.3 million, compared to a net unrealized gain of $0.9 million at December 31, 2014. |
Fair_Value_Fair_Value_Hierarch
Fair Value - Fair Value Hierarchy (Details) (Recurring, USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | $3,165,308 | $3,116,355 | ||
Liabilities measured at fair value | 0 | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Contingent consideration liability | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Liabilities measured at fair value | 0 | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed maturities and fixed maturities pledged under securities lending agreements | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 1,517,834 | [1] | 1,447,972 | [1] |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed maturities and fixed maturities pledged under securities lending agreements | Corporate bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 0 | [1] | 0 | [1] |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed maturities and fixed maturities pledged under securities lending agreements | Mortgage backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 0 | [1] | 0 | [1] |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed maturities and fixed maturities pledged under securities lending agreements | Municipal bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 0 | [1] | 0 | [1] |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed maturities and fixed maturities pledged under securities lending agreements | Commercial mortgage backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 0 | [1] | 0 | [1] |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed maturities and fixed maturities pledged under securities lending agreements | US government and government agencies | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 1,517,834 | [1] | 1,447,972 | [1] |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed maturities and fixed maturities pledged under securities lending agreements | Non-US government securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 0 | [1] | 0 | [1] |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed maturities and fixed maturities pledged under securities lending agreements | Asset backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 0 | [1] | 0 | [1] |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 685,714 | 658,182 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 0 | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 835,065 | 759,621 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair value option | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 126,695 | 250,580 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair value option | Corporate bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 0 | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair value option | Mortgage backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 0 | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair value option | Non-US government securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 0 | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair value option | Asset backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 0 | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair value option | Other investments fair value option | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 0 | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair value option | Short-term investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 125,788 | 250,580 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair value option | Equity securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 907 | |||
Significant Other Observable Inputs (Level 2) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 11,175,897 | 11,244,994 | ||
Liabilities measured at fair value | 0 | 0 | ||
Significant Other Observable Inputs (Level 2) | Contingent consideration liability | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Liabilities measured at fair value | 0 | 0 | ||
Significant Other Observable Inputs (Level 2) | Fixed maturities and fixed maturities pledged under securities lending agreements | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 9,105,591 | [1] | 9,296,100 | [1] |
Significant Other Observable Inputs (Level 2) | Fixed maturities and fixed maturities pledged under securities lending agreements | Corporate bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 3,119,437 | [1] | 3,108,513 | [1] |
Significant Other Observable Inputs (Level 2) | Fixed maturities and fixed maturities pledged under securities lending agreements | Mortgage backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 821,611 | [1] | 943,343 | [1] |
Significant Other Observable Inputs (Level 2) | Fixed maturities and fixed maturities pledged under securities lending agreements | Municipal bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 1,626,580 | [1] | 1,494,122 | [1] |
Significant Other Observable Inputs (Level 2) | Fixed maturities and fixed maturities pledged under securities lending agreements | Commercial mortgage backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 1,106,332 | [1] | 1,114,528 | [1] |
Significant Other Observable Inputs (Level 2) | Fixed maturities and fixed maturities pledged under securities lending agreements | US government and government agencies | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 0 | [1] | 0 | [1] |
Significant Other Observable Inputs (Level 2) | Fixed maturities and fixed maturities pledged under securities lending agreements | Non-US government securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 831,200 | [1] | 1,015,153 | [1] |
Significant Other Observable Inputs (Level 2) | Fixed maturities and fixed maturities pledged under securities lending agreements | Asset backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 1,600,431 | [1] | 1,620,441 | [1] |
Significant Other Observable Inputs (Level 2) | Equity securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 1,999 | 0 | ||
Significant Other Observable Inputs (Level 2) | Other investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 201,943 | 192,687 | ||
Significant Other Observable Inputs (Level 2) | Short-term investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 19,967 | 37,605 | ||
Significant Other Observable Inputs (Level 2) | Fair value option | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 1,846,397 | 1,718,602 | ||
Significant Other Observable Inputs (Level 2) | Fair value option | Corporate bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 636,762 | 497,101 | ||
Significant Other Observable Inputs (Level 2) | Fair value option | Mortgage backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 18,010 | 22,190 | ||
Significant Other Observable Inputs (Level 2) | Fair value option | Non-US government securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 77,903 | 88,411 | ||
Significant Other Observable Inputs (Level 2) | Fair value option | Asset backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 24,792 | 24,322 | ||
Significant Other Observable Inputs (Level 2) | Fair value option | Other investments fair value option | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 1,088,930 | 1,085,557 | ||
Significant Other Observable Inputs (Level 2) | Fair value option | Short-term investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 0 | 1,021 | ||
Significant Other Observable Inputs (Level 2) | Fair value option | Equity securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 0 | |||
Significant Unobservable Inputs (Level 3) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 654,128 | 627,387 | ||
Liabilities measured at fair value | -66,461 | -61,845 | ||
Significant Unobservable Inputs (Level 3) | Contingent consideration liability | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Liabilities measured at fair value | -66,461 | -61,845 | ||
Significant Unobservable Inputs (Level 3) | Fixed maturities and fixed maturities pledged under securities lending agreements | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 57,500 | [1] | 57,500 | [1] |
Significant Unobservable Inputs (Level 3) | Fixed maturities and fixed maturities pledged under securities lending agreements | Corporate bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 0 | [1] | 0 | [1] |
Significant Unobservable Inputs (Level 3) | Fixed maturities and fixed maturities pledged under securities lending agreements | Mortgage backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 0 | [1] | 0 | [1] |
Significant Unobservable Inputs (Level 3) | Fixed maturities and fixed maturities pledged under securities lending agreements | Municipal bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 0 | [1] | 0 | [1] |
Significant Unobservable Inputs (Level 3) | Fixed maturities and fixed maturities pledged under securities lending agreements | Commercial mortgage backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 0 | [1] | 0 | [1] |
Significant Unobservable Inputs (Level 3) | Fixed maturities and fixed maturities pledged under securities lending agreements | US government and government agencies | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 0 | [1] | 0 | [1] |
Significant Unobservable Inputs (Level 3) | Fixed maturities and fixed maturities pledged under securities lending agreements | Non-US government securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 0 | [1] | 0 | [1] |
Significant Unobservable Inputs (Level 3) | Fixed maturities and fixed maturities pledged under securities lending agreements | Asset backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 57,500 | [1] | 57,500 | [1] |
Significant Unobservable Inputs (Level 3) | Equity securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) | Other investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 127,734 | 103,537 | ||
Significant Unobservable Inputs (Level 3) | Short-term investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) | Fair value option | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 468,894 | 466,350 | ||
Significant Unobservable Inputs (Level 3) | Fair value option | Corporate bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) | Fair value option | Mortgage backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) | Fair value option | Non-US government securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) | Fair value option | Asset backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) | Fair value option | Other investments fair value option | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 468,894 | 466,350 | ||
Significant Unobservable Inputs (Level 3) | Fair value option | Short-term investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) | Fair value option | Equity securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 0 | |||
Estimated Fair Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 14,995,333 | 14,988,736 | ||
Liabilities measured at fair value | -66,461 | -61,845 | ||
Estimated Fair Value | Contingent consideration liability | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Liabilities measured at fair value | -66,461 | -61,845 | ||
Estimated Fair Value | Fixed maturities and fixed maturities pledged under securities lending agreements | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 10,680,925 | 10,801,572 | ||
Estimated Fair Value | Fixed maturities and fixed maturities pledged under securities lending agreements | Corporate bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 3,119,437 | 3,108,513 | ||
Estimated Fair Value | Fixed maturities and fixed maturities pledged under securities lending agreements | Mortgage backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 821,611 | 943,343 | ||
Estimated Fair Value | Fixed maturities and fixed maturities pledged under securities lending agreements | Municipal bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 1,626,580 | 1,494,122 | ||
Estimated Fair Value | Fixed maturities and fixed maturities pledged under securities lending agreements | Commercial mortgage backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 1,106,332 | 1,114,528 | ||
Estimated Fair Value | Fixed maturities and fixed maturities pledged under securities lending agreements | US government and government agencies | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 1,517,834 | 1,447,972 | ||
Estimated Fair Value | Fixed maturities and fixed maturities pledged under securities lending agreements | Non-US government securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 831,200 | 1,015,153 | ||
Estimated Fair Value | Fixed maturities and fixed maturities pledged under securities lending agreements | Asset backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 1,657,931 | 1,677,941 | ||
Estimated Fair Value | Equity securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 687,713 | 658,182 | ||
Estimated Fair Value | Other investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 329,677 | 296,224 | ||
Estimated Fair Value | Short-term investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 855,032 | 797,226 | ||
Estimated Fair Value | Fair value option | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 2,441,986 | 2,435,532 | ||
Estimated Fair Value | Fair value option | Corporate bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 636,762 | 497,101 | ||
Estimated Fair Value | Fair value option | Mortgage backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 18,010 | 22,190 | ||
Estimated Fair Value | Fair value option | Non-US government securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 77,903 | 88,411 | ||
Estimated Fair Value | Fair value option | Asset backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 24,792 | 24,322 | ||
Estimated Fair Value | Fair value option | Other investments fair value option | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 1,557,824 | 1,551,907 | ||
Estimated Fair Value | Fair value option | Short-term investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | 125,788 | 251,601 | ||
Estimated Fair Value | Fair value option | Equity securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value | $907 | |||
[1] | In securities lending transactions, the Company receives collateral in excess of the fair value of the fixed maturities and short-term investments pledged. For purposes of this table, the Company has excluded the collateral received and reinvested and included the fixed maturities and short-term investments pledged. |
Fair_Value_Rollforward_of_Leve
Fair Value - Rollforward of Level 3 assets and liabilities (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at beginning of period | $627,387 | $549,990 | ||
Total gains or (losses) (realized/unrealized) - included in earnings | -1,132 | [1] | 8,585 | [1] |
Total gains or (losses) (realized/unrealized) - included in other comprehensive income | -522 | -2,196 | ||
Purchases, issuances, sales and settlements | ||||
Purchases | 47,925 | 40,110 | ||
Issuances | 0 | 0 | ||
Sales | 0 | -68,209 | ||
Settlements | -19,530 | -4,799 | ||
Transfers in and/or out of Level 3 | 0 | 0 | ||
Balance at end of period | 654,128 | 523,481 | ||
Contingent consideration liability | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at beginning of period | -61,845 | 0 | ||
Total gains or (losses) (realized/unrealized) - included in earnings | -3,548 | [1] | -1,394 | [1] |
Total gains or (losses) (realized/unrealized) - included in other comprehensive income | 0 | 0 | ||
Purchases, issuances, sales and settlements | ||||
Purchases | 0 | 0 | ||
Issuances | -1,068 | -41,762 | ||
Sales | 0 | 0 | ||
Settlements | 0 | 0 | ||
Transfers in and/or out of Level 3 | 0 | 0 | ||
Balance at end of period | -66,461 | -43,156 | ||
Available for sale | Asset backed securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at beginning of period | 57,500 | 0 | ||
Total gains or (losses) (realized/unrealized) - included in earnings | 0 | [1] | 0 | [1] |
Total gains or (losses) (realized/unrealized) - included in other comprehensive income | 0 | 0 | ||
Purchases, issuances, sales and settlements | ||||
Purchases | 0 | 0 | ||
Issuances | 0 | 0 | ||
Sales | 0 | 0 | ||
Settlements | 0 | 0 | ||
Transfers in and/or out of Level 3 | 0 | 0 | ||
Balance at end of period | 57,500 | 0 | ||
Available for sale | Corporate bonds | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at beginning of period | 0 | 2,045 | ||
Total gains or (losses) (realized/unrealized) - included in earnings | 0 | [1] | 0 | [1] |
Total gains or (losses) (realized/unrealized) - included in other comprehensive income | 0 | 0 | ||
Purchases, issuances, sales and settlements | ||||
Purchases | 0 | 0 | ||
Issuances | 0 | 0 | ||
Sales | 0 | -2,045 | ||
Settlements | 0 | 0 | ||
Transfers in and/or out of Level 3 | 0 | 0 | ||
Balance at end of period | 0 | 0 | ||
Available for sale | Other investments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at beginning of period | 103,537 | 170,420 | ||
Total gains or (losses) (realized/unrealized) - included in earnings | -281 | [1] | 2,275 | [1] |
Total gains or (losses) (realized/unrealized) - included in other comprehensive income | -522 | -2,196 | ||
Purchases, issuances, sales and settlements | ||||
Purchases | 25,000 | 0 | ||
Issuances | 0 | 0 | ||
Sales | 0 | -66,164 | ||
Settlements | 0 | 0 | ||
Transfers in and/or out of Level 3 | 0 | 0 | ||
Balance at end of period | 127,734 | 104,335 | ||
Fair value option | Other investments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at beginning of period | 466,350 | 377,525 | ||
Total gains or (losses) (realized/unrealized) - included in earnings | -851 | [1] | 6,310 | [1] |
Total gains or (losses) (realized/unrealized) - included in other comprehensive income | 0 | 0 | ||
Purchases, issuances, sales and settlements | ||||
Purchases | 22,925 | 40,110 | ||
Issuances | 0 | 0 | ||
Sales | 0 | 0 | ||
Settlements | -19,530 | -4,799 | ||
Transfers in and/or out of Level 3 | 0 | 0 | ||
Balance at end of period | $468,894 | $419,146 | ||
[1] | Gains or losses on corporate bonds were included in net realized gains (losses) while gains or losses on other investments were included in net realized gains (losses) or net investment income. Gains or losses on the contingent consideration liability were included in net realized gains (losses). |
Fair_Value_Narrative_Details
Fair Value - Narrative (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Fair Value Disclosures [Abstract] | |||
Total assets and liabilities measured at fair value | $15,060,000,000 | $15,050,000,000 | |
Total assets and liabilities measured at fair value priced using non-binding broker quotes | 241,000,000 | 260,800,000 | |
Total assets and liabilities measured at fair value priced using non-binding broker quotes (percentage) | 1.60% | 1.70% | |
Gains (losses) including in earnings attributable to the change in unrealized gains or losses related to assets still held at balance sheet date | -1,100,000 | 3,300,000 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior notes | 800,000,000 | 800,000,000 | |
Reportable Legal Entities | ACGL (Parent Guarantor) | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior notes | 300,000,000 | 300,000,000 | |
Estimated fair value of senior notes | 410,500,000 | ||
Reportable Legal Entities | Arch-U.S. (Subsidiary Issuer) | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior notes | 500,000,000 | 500,000,000 | |
Estimated fair value of senior notes | $559,100,000 |
Derivative_Instruments_Details
Derivative Instruments (Details) (USD $) | 3 Months Ended | |||||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | ||||
Derivative offsetting [Abstract] | ||||||
Derivative assets subject to master netting agreements | $160,500,000 | $25,300,000 | ||||
Derivative liabilities subject to master netting agreements | 131,100,000 | 5,400,000 | ||||
Net realized gains (losses) on derivative instruments | ||||||
Net realized gains (losses) on derivative instruments | 36,676,000 | [1] | -12,768,000 | [1] | ||
Not Designated as Hedging Instrument [Member] | ||||||
Derivative [Line Items] | ||||||
Asset derivatives - fair value | 385,247,000 | 26,468,000 | ||||
Liability derivatives - fair value | -259,376,000 | -5,397,000 | ||||
Net derivatives - fair value | 125,871,000 | 21,071,000 | ||||
Net realized gains (losses) on derivative instruments | ||||||
Net realized gains (losses) on derivative instruments | 36,676,000 | -12,768,000 | ||||
Not Designated as Hedging Instrument [Member] | Futures contracts | ||||||
Net realized gains (losses) on derivative instruments | ||||||
Net realized gains (losses) on derivative instruments | 19,326,000 | -9,862,000 | ||||
Not Designated as Hedging Instrument [Member] | Futures contracts | Other investments available for sale, at fair value | ||||||
Derivative [Line Items] | ||||||
Asset derivatives - fair value | 2,534,000 | 2,156,000 | ||||
Liability derivatives - fair value | -3,148,000 | -1,907,000 | ||||
Net derivatives - fair value | -614,000 | 249,000 | ||||
Net derivatives - notional value | 2,398,085,000 | [2] | 2,549,027,000 | [2] | ||
Not Designated as Hedging Instrument [Member] | Foreign currency forward contracts | ||||||
Net realized gains (losses) on derivative instruments | ||||||
Net realized gains (losses) on derivative instruments | 16,819,000 | -2,257,000 | ||||
Not Designated as Hedging Instrument [Member] | Foreign currency forward contracts | Other investments available for sale, at fair value | ||||||
Derivative [Line Items] | ||||||
Asset derivatives - fair value | 23,327,000 | 10,511,000 | ||||
Liability derivatives - fair value | -6,751,000 | -1,145,000 | ||||
Net derivatives - fair value | 16,576,000 | 9,366,000 | ||||
Net derivatives - notional value | 1,848,503,000 | [2] | 397,106,000 | [2] | ||
Not Designated as Hedging Instrument [Member] | TBAs | ||||||
Net realized gains (losses) on derivative instruments | ||||||
Net realized gains (losses) on derivative instruments | 486,000 | -37,000 | ||||
Not Designated as Hedging Instrument [Member] | TBAs | Fixed maturities available for sale, at fair value | ||||||
Derivative [Line Items] | ||||||
Asset derivatives - fair value | 350,576,000 | 10,592,000 | ||||
Liability derivatives - fair value | -245,150,000 | 0 | ||||
Net derivatives - fair value | 105,426,000 | 10,592,000 | ||||
Net derivatives - notional value | 562,031,000 | [2] | 10,056,000 | [2] | ||
Not Designated as Hedging Instrument [Member] | Other | ||||||
Net realized gains (losses) on derivative instruments | ||||||
Net realized gains (losses) on derivative instruments | 45,000 | -612,000 | ||||
Not Designated as Hedging Instrument [Member] | Other | Other investments available for sale, at fair value | ||||||
Derivative [Line Items] | ||||||
Asset derivatives - fair value | 8,810,000 | 3,209,000 | ||||
Liability derivatives - fair value | -4,327,000 | -2,345,000 | ||||
Net derivatives - fair value | 4,483,000 | 864,000 | ||||
Net derivatives - notional value | $1,252,273,000 | [2] | $735,684,000 | [2] | ||
[1] | See Note 8 for information on the Companybs derivative instruments. | |||||
[2] | Represents the absolute notional value of all outstanding contracts, consisting of long and short positions. |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Line of Credit Facility [Abstract] | ||
Revolving credit agreement borrowings | $100,000,000 | $100,000,000 |
Unfunded Investment Commitments [Abstract] | ||
Investment commitments | 1,220,000,000 | |
LOC Facilities [Member] | ||
Line of Credit Facility [Abstract] | ||
Letters of credit outstanding, amount | 415,900,000 | |
Investments pledged as collateral | 488,400,000 | |
Other secured letter of credit facilities | ||
Line of Credit Facility [Abstract] | ||
Maximum borrowing capacity | 180,000,000 | |
Credit Agreement | ||
Line of Credit Facility [Abstract] | ||
Credit facility expiration date | 30-Jun-19 | |
Revolving credit agreement borrowings | 100,000,000 | |
Unsecured revolving loan and letter of credit facility | ||
Line of Credit Facility [Abstract] | ||
Maximum borrowing capacity | 300,000,000 | |
Secured letter of credit facility | ||
Line of Credit Facility [Abstract] | ||
Maximum borrowing capacity | 500,000,000 | |
Watford Holdings Ltd | Line of credit | ||
Line of Credit Facility [Abstract] | ||
Maximum borrowing capacity | 200,000,000 | |
Credit facility expiration date | 19-May-15 | |
Letters of credit outstanding, amount | $32,100,000 |
Share_Transactions_Share_repur
Share Transactions - Share repurchases (Details) (Common shares, USD $) | 3 Months Ended |
Share data in Millions, unless otherwise specified | Mar. 31, 2015 |
Common shares | |
Class of Stock [Line Items] | |
Cumulative number of shares acquired since inception of share repurchase program | 120.9 |
Aggregate purchase price of shares acquired since inception of share repurchase program | $3,400,000,000 |
Treasury stock, shares acquired (shares) | 2.7 |
Treasury stock, value of shares acquired | 162,900,000 |
Remaining authorized repurchase amount | $724,200,000 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | |||
Effective tax rate on income before income taxes (percentage) | 4.30% | 2.00% | |
Net deferred tax assets | $124.70 | $131 | |
Income taxes paid | $3.60 | $1.60 |
Other_Comprehensive_Income_Los2
Other Comprehensive Income (Loss) - Amounts reclassified from accumulated other comprehensive income (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other-than-temporary impairment losses | ($5,799) | ($2,971) |
Income before income taxes | 321,435 | 182,883 |
Income tax expense | -12,678 | -3,738 |
Net of tax | 283,336 | 182,500 |
Reclassification out of accumulated other comprehensive income | Unrealized appreciation on available-for-sale investments | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net realized gains | 42,431 | 26,038 |
Other-than-temporary impairment losses | -7,247 | -2,971 |
Income before income taxes | 35,184 | 23,067 |
Income tax expense | -4,252 | -1,818 |
Net of tax | $30,932 | $21,249 |
Other_Comprehensive_Income_Los3
Other Comprehensive Income (Loss) - Components of other comprehensive income (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Before tax amount: | ||
Unrealized holding gains arising during period, before tax | $94,387 | $75,400 |
Portion of other-than-temporary impairment losses recognized in other comprehensive income (loss), before tax | -1,448 | 0 |
Less reclassification of net realized gains included in net income, before tax | 35,184 | 23,067 |
Foreign currency translation adjustments, before tax | -23,626 | -1,349 |
Other comprehensive income (loss), before tax | 34,129 | 50,984 |
Tax expense (benefit): | ||
Unrealized holding gains arising during period, tax | 10,083 | 4,047 |
Portion of other-than-temporary impairment losses recognized in other comprehensive income (loss), tax | 0 | 0 |
Less reclassification of net realized gains included in net income, tax | 4,252 | 1,818 |
Foreign currency translation adjustments, tax | -869 | 0 |
Other comprehensive income (loss), tax | 4,962 | 2,229 |
Net of tax amount: | ||
Unrealized holding gains arising during period, net of tax | 84,304 | 71,353 |
Portion of other-than-temporary impairment losses recognized in other comprehensive income (loss), net of tax | -1,448 | 0 |
Less reclassification of net realized gains included in net income, net of tax | 30,932 | 21,249 |
Foreign currency translation adjustments, net of tax | -22,757 | -1,349 |
Net current period other comprehensive income (loss) | $29,167 | $48,755 |
Guarantor_Financial_Informatio2
Guarantor Financial Information - Condensed consolidating balance sheet (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||||
Assets | ||||
Total investments | $15,411,644 | $15,331,249 | ||
Cash | 471,012 | 485,702 | 1,569,605 | 434,057 |
Investments in subsidiaries | 0 | 0 | ||
Due from subsidiaries and affiliates | 0 | 0 | ||
Premiums receivable | 1,116,389 | 948,695 | ||
Reinsurance recoverable on unpaid and paid losses and loss adjustment expenses | 1,788,619 | 1,812,845 | ||
Contractholder receivables | 1,339,433 | 1,309,192 | ||
Prepaid reinsurance premiums | 421,908 | 377,078 | ||
Deferred acquisition costs, net | 442,775 | 414,525 | ||
Other assets | 1,857,900 | 1,330,257 | ||
Total assets | 22,849,680 | 22,009,543 | 21,800,358 | |
Liabilities | ||||
Reserve for losses and loss adjustment expenses | 8,928,950 | 9,036,448 | ||
Unearned premiums | 2,400,834 | 2,231,578 | ||
Reinsurance balances payable | 200,444 | 219,312 | ||
Contractholder payables | 1,339,433 | 1,309,192 | ||
Deposit accounting liabilities | 284,828 | 327,384 | ||
Senior notes | 800,000 | 800,000 | ||
Revolving credit agreement borrowings | 100,000 | 100,000 | ||
Due to subsidiaries and affiliates | 0 | 0 | ||
Other liabilities | 1,497,291 | 866,983 | ||
Total liabilities | 15,551,780 | 14,890,897 | 14,895,495 | |
Redeemable noncontrolling interests | 219,604 | 219,512 | ||
Shareholders' Equity | ||||
Total shareholdersb equity available to Arch | 6,288,702 | 6,130,053 | 5,892,133 | |
Non-redeemable noncontrolling interests | 789,594 | 769,081 | 793,496 | |
Total shareholdersb equity | 7,078,296 | 6,899,134 | 6,685,629 | |
Total liabilities, noncontrolling interests and shareholdersb equity | 22,849,680 | 22,009,543 | ||
Reportable Legal Entities | ACGL (Parent Guarantor) | ||||
Assets | ||||
Total investments | 24 | 107 | ||
Cash | 7,992 | 3,218 | 12,353 | 3,223 |
Investments in subsidiaries | 6,688,930 | 6,536,644 | ||
Due from subsidiaries and affiliates | 31 | 48 | ||
Premiums receivable | 0 | 0 | ||
Reinsurance recoverable on unpaid and paid losses and loss adjustment expenses | 0 | 0 | ||
Contractholder receivables | 0 | 0 | ||
Prepaid reinsurance premiums | 0 | 0 | ||
Deferred acquisition costs, net | 0 | 0 | ||
Other assets | 6,998 | 7,590 | ||
Total assets | 6,703,975 | 6,547,607 | ||
Liabilities | ||||
Reserve for losses and loss adjustment expenses | 0 | 0 | ||
Unearned premiums | 0 | 0 | ||
Reinsurance balances payable | 0 | 0 | ||
Contractholder payables | 0 | 0 | ||
Deposit accounting liabilities | 0 | 0 | ||
Senior notes | 300,000 | 300,000 | ||
Revolving credit agreement borrowings | 100,000 | 100,000 | ||
Due to subsidiaries and affiliates | 1,305 | 417 | ||
Other liabilities | 13,968 | 17,137 | ||
Total liabilities | 415,273 | 417,554 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Shareholders' Equity | ||||
Total shareholdersb equity available to Arch | 6,288,702 | 6,130,053 | ||
Non-redeemable noncontrolling interests | 0 | 0 | ||
Total shareholdersb equity | 6,288,702 | 6,130,053 | ||
Total liabilities, noncontrolling interests and shareholdersb equity | 6,703,975 | 6,547,607 | ||
Reportable Legal Entities | Arch-U.S. (Subsidiary Issuer) | ||||
Assets | ||||
Total investments | 53,890 | 62,867 | ||
Cash | 2,822 | 2,787 | 45,472 | 509 |
Investments in subsidiaries | 1,710,358 | 1,685,185 | ||
Due from subsidiaries and affiliates | 15,144 | 7,517 | ||
Premiums receivable | 0 | 0 | ||
Reinsurance recoverable on unpaid and paid losses and loss adjustment expenses | 0 | 0 | ||
Contractholder receivables | 0 | 0 | ||
Prepaid reinsurance premiums | 0 | 0 | ||
Deferred acquisition costs, net | 0 | 0 | ||
Other assets | 50,869 | 49,576 | ||
Total assets | 1,833,083 | 1,807,932 | ||
Liabilities | ||||
Reserve for losses and loss adjustment expenses | 0 | 0 | ||
Unearned premiums | 0 | 0 | ||
Reinsurance balances payable | 0 | 0 | ||
Contractholder payables | 0 | 0 | ||
Deposit accounting liabilities | 0 | 0 | ||
Senior notes | 500,000 | 500,000 | ||
Revolving credit agreement borrowings | 0 | 0 | ||
Due to subsidiaries and affiliates | 15,022 | 7,505 | ||
Other liabilities | 47,944 | 49,403 | ||
Total liabilities | 562,966 | 556,908 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Shareholders' Equity | ||||
Total shareholdersb equity available to Arch | 1,270,117 | 1,251,024 | ||
Non-redeemable noncontrolling interests | 0 | 0 | ||
Total shareholdersb equity | 1,270,117 | 1,251,024 | ||
Total liabilities, noncontrolling interests and shareholdersb equity | 1,833,083 | 1,807,932 | ||
Reportable Legal Entities | Other ACGL Subsidiaries | ||||
Assets | ||||
Total investments | 15,357,730 | 15,268,275 | ||
Cash | 460,198 | 479,697 | 1,511,780 | 430,325 |
Investments in subsidiaries | 0 | 0 | ||
Due from subsidiaries and affiliates | 380,577 | 370,429 | ||
Premiums receivable | 1,575,230 | 1,331,511 | ||
Reinsurance recoverable on unpaid and paid losses and loss adjustment expenses | 5,545,517 | 5,584,973 | ||
Contractholder receivables | 1,339,433 | 1,309,192 | ||
Prepaid reinsurance premiums | 1,545,190 | 1,373,008 | ||
Deferred acquisition costs, net | 442,775 | 414,525 | ||
Other assets | 2,138,959 | 1,689,670 | ||
Total assets | 28,785,609 | 27,821,280 | ||
Liabilities | ||||
Reserve for losses and loss adjustment expenses | 12,656,904 | 12,784,030 | ||
Unearned premiums | 3,524,116 | 3,227,508 | ||
Reinsurance balances payable | 645,723 | 589,289 | ||
Contractholder payables | 1,339,433 | 1,309,192 | ||
Deposit accounting liabilities | 508,592 | 587,050 | ||
Senior notes | 0 | 0 | ||
Revolving credit agreement borrowings | 0 | 0 | ||
Due to subsidiaries and affiliates | 379,425 | 370,072 | ||
Other liabilities | 1,593,048 | 994,741 | ||
Total liabilities | 20,647,241 | 19,861,882 | ||
Redeemable noncontrolling interests | 219,604 | 219,512 | ||
Shareholders' Equity | ||||
Total shareholdersb equity available to Arch | 7,129,170 | 6,970,805 | ||
Non-redeemable noncontrolling interests | 789,594 | 769,081 | ||
Total shareholdersb equity | 7,918,764 | 7,739,886 | ||
Total liabilities, noncontrolling interests and shareholdersb equity | 28,785,609 | 27,821,280 | ||
Consolidating Adjustments and Eliminations | ||||
Assets | ||||
Total investments | 0 | 0 | ||
Cash | 0 | 0 | 0 | 0 |
Investments in subsidiaries | -8,399,288 | -8,221,829 | ||
Due from subsidiaries and affiliates | -395,752 | -377,994 | ||
Premiums receivable | -458,841 | -382,816 | ||
Reinsurance recoverable on unpaid and paid losses and loss adjustment expenses | -3,756,898 | -3,772,128 | ||
Contractholder receivables | 0 | 0 | ||
Prepaid reinsurance premiums | -1,123,282 | -995,930 | ||
Deferred acquisition costs, net | 0 | 0 | ||
Other assets | -338,926 | -416,579 | ||
Total assets | -14,472,987 | -14,167,276 | ||
Liabilities | ||||
Reserve for losses and loss adjustment expenses | -3,727,954 | -3,747,582 | ||
Unearned premiums | -1,123,282 | -995,930 | ||
Reinsurance balances payable | -445,279 | -369,977 | ||
Contractholder payables | 0 | 0 | ||
Deposit accounting liabilities | -223,764 | -259,666 | ||
Senior notes | 0 | 0 | ||
Revolving credit agreement borrowings | 0 | 0 | ||
Due to subsidiaries and affiliates | -395,752 | -377,994 | ||
Other liabilities | -157,669 | -194,298 | ||
Total liabilities | -6,073,700 | -5,945,447 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Shareholders' Equity | ||||
Total shareholdersb equity available to Arch | -8,399,287 | -8,221,829 | ||
Non-redeemable noncontrolling interests | 0 | 0 | ||
Total shareholdersb equity | -8,399,287 | -8,221,829 | ||
Total liabilities, noncontrolling interests and shareholdersb equity | ($14,472,987) | ($14,167,276) |
Guarantor_Financial_Informatio3
Guarantor Financial Information - Condensed consolidating statement of income and comprehensive income (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues | ||
Net premiums earned | $910,264 | $859,780 |
Net investment income | 78,994 | 66,994 |
Net realized gains (losses) | 83,348 | 19,697 |
Net impairment losses recognized in earnings | -5,799 | -2,971 |
Other underwriting income | 11,536 | 1,582 |
Equity in net income of investment funds accounted for using the equity method | 5,889 | 3,253 |
Other income (loss) | -1,888 | -2,104 |
Total revenues | 1,082,344 | 946,231 |
Expenses | ||
Losses and loss adjustment expenses | 493,716 | 436,240 |
Acquisition expenses | 163,076 | 160,342 |
Other operating expenses | 157,882 | 145,799 |
Interest expense | 12,736 | 14,404 |
Net foreign exchange (gains) losses | -66,501 | 6,563 |
Total expenses | 760,909 | 763,348 |
Income (loss) before income taxes | 321,435 | 182,883 |
Income tax expense (benefit) | -12,678 | -3,738 |
Income (loss) before equity in net income of subsidiaries | 308,757 | 179,145 |
Equity in net income of subsidiaries | 0 | 0 |
Net income | 308,757 | 179,145 |
Amounts attributable to noncontrolling interests | -25,421 | 3,355 |
Net income available to Arch | 283,336 | 182,500 |
Preferred dividends | -5,484 | -5,484 |
Net income available to Arch common shareholders | 277,852 | 177,016 |
Comprehensive income available to Arch | 312,503 | 231,255 |
Reportable Legal Entities | ACGL (Parent Guarantor) | ||
Revenues | ||
Net premiums earned | 0 | 0 |
Net investment income | 0 | 0 |
Net realized gains (losses) | 0 | 0 |
Net impairment losses recognized in earnings | 0 | 0 |
Other underwriting income | 0 | 0 |
Equity in net income of investment funds accounted for using the equity method | 0 | 0 |
Other income (loss) | 0 | 0 |
Total revenues | 0 | 0 |
Expenses | ||
Losses and loss adjustment expenses | 0 | 0 |
Acquisition expenses | 0 | 0 |
Other operating expenses | 8,632 | 10,307 |
Interest expense | 5,856 | 5,853 |
Net foreign exchange (gains) losses | 0 | 0 |
Total expenses | 14,488 | 16,160 |
Income (loss) before income taxes | -14,488 | -16,160 |
Income tax expense (benefit) | 0 | 0 |
Income (loss) before equity in net income of subsidiaries | -14,488 | -16,160 |
Equity in net income of subsidiaries | 297,824 | 198,660 |
Net income | 283,336 | 182,500 |
Amounts attributable to noncontrolling interests | 0 | 0 |
Net income available to Arch | 283,336 | 182,500 |
Preferred dividends | -5,484 | -5,484 |
Net income available to Arch common shareholders | 277,852 | 177,016 |
Comprehensive income available to Arch | 312,503 | 231,255 |
Reportable Legal Entities | Arch-U.S. (Subsidiary Issuer) | ||
Revenues | ||
Net premiums earned | 0 | 0 |
Net investment income | 5 | 0 |
Net realized gains (losses) | 0 | 0 |
Net impairment losses recognized in earnings | 0 | 0 |
Other underwriting income | 0 | 0 |
Equity in net income of investment funds accounted for using the equity method | 0 | 0 |
Other income (loss) | 0 | 0 |
Total revenues | 5 | 0 |
Expenses | ||
Losses and loss adjustment expenses | 0 | 0 |
Acquisition expenses | 0 | 0 |
Other operating expenses | 1,259 | 977 |
Interest expense | 6,366 | 6,514 |
Net foreign exchange (gains) losses | 0 | 0 |
Total expenses | 7,625 | 7,491 |
Income (loss) before income taxes | -7,620 | -7,491 |
Income tax expense (benefit) | 1,413 | 2,788 |
Income (loss) before equity in net income of subsidiaries | -6,207 | -4,703 |
Equity in net income of subsidiaries | 14,495 | 22,152 |
Net income | 8,288 | 17,449 |
Amounts attributable to noncontrolling interests | 0 | 0 |
Net income available to Arch | 8,288 | 17,449 |
Preferred dividends | 0 | 0 |
Net income available to Arch common shareholders | 8,288 | 17,449 |
Comprehensive income available to Arch | 11,750 | 17,220 |
Reportable Legal Entities | Other ACGL Subsidiaries | ||
Revenues | ||
Net premiums earned | 910,264 | 859,780 |
Net investment income | 86,010 | 77,001 |
Net realized gains (losses) | 83,348 | 19,697 |
Net impairment losses recognized in earnings | -5,799 | -2,971 |
Other underwriting income | 11,536 | 1,582 |
Equity in net income of investment funds accounted for using the equity method | 5,889 | 3,253 |
Other income (loss) | -1,888 | -2,104 |
Total revenues | 1,089,360 | 956,238 |
Expenses | ||
Losses and loss adjustment expenses | 493,716 | 436,240 |
Acquisition expenses | 163,076 | 160,342 |
Other operating expenses | 147,991 | 134,515 |
Interest expense | 7,535 | 12,044 |
Net foreign exchange (gains) losses | -39,630 | 5,741 |
Total expenses | 772,688 | 748,882 |
Income (loss) before income taxes | 316,672 | 207,356 |
Income tax expense (benefit) | -14,091 | -6,526 |
Income (loss) before equity in net income of subsidiaries | 302,581 | 200,830 |
Equity in net income of subsidiaries | 0 | 0 |
Net income | 302,581 | 200,830 |
Amounts attributable to noncontrolling interests | -25,421 | 3,355 |
Net income available to Arch | 277,160 | 204,185 |
Preferred dividends | 0 | 0 |
Net income available to Arch common shareholders | 277,160 | 204,185 |
Comprehensive income available to Arch | 333,193 | 252,119 |
Consolidating Adjustments and Eliminations | ||
Revenues | ||
Net premiums earned | 0 | 0 |
Net investment income | -7,021 | -10,007 |
Net realized gains (losses) | 0 | 0 |
Net impairment losses recognized in earnings | 0 | 0 |
Other underwriting income | 0 | 0 |
Equity in net income of investment funds accounted for using the equity method | 0 | 0 |
Other income (loss) | 0 | 0 |
Total revenues | -7,021 | -10,007 |
Expenses | ||
Losses and loss adjustment expenses | 0 | 0 |
Acquisition expenses | 0 | 0 |
Other operating expenses | 0 | 0 |
Interest expense | -7,021 | -10,007 |
Net foreign exchange (gains) losses | -26,871 | 822 |
Total expenses | -33,892 | -9,185 |
Income (loss) before income taxes | 26,871 | -822 |
Income tax expense (benefit) | 0 | 0 |
Income (loss) before equity in net income of subsidiaries | 26,871 | -822 |
Equity in net income of subsidiaries | -312,319 | -220,812 |
Net income | -285,448 | -221,634 |
Amounts attributable to noncontrolling interests | 0 | 0 |
Net income available to Arch | -285,448 | -221,634 |
Preferred dividends | 0 | 0 |
Net income available to Arch common shareholders | -285,448 | -221,634 |
Comprehensive income available to Arch | ($344,943) | ($269,339) |
Guarantor_Financial_Informatio4
Guarantor Financial Information - Condensed consolidating statement of cash flows (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating Activities | ||
Net Cash Provided by (Used in) Operating Activities | $85,461 | $198,169 |
Investing Activities | ||
Purchases of fixed maturity investments | -7,030,731 | -7,131,071 |
Purchases of equity securities | -125,863 | -89,227 |
Purchases of other investments | -685,497 | -304,454 |
Proceeds from the sale of fixed maturity investments | 6,857,459 | 7,014,281 |
Proceeds from the sale of equity securities | 125,906 | 49,614 |
Proceeds from sales, redemptions and maturities of other investments | 605,263 | 331,176 |
Proceeds from redemptions and maturities of fixed maturity investments | 272,657 | 168,484 |
Net sales (purchases) of short-term investments | 66,283 | 156,262 |
Change in cash collateral related to securities lending | -5,529 | 4,669 |
Contributions to subsidiaries | 0 | 0 |
Intercompany loans issued | 0 | 0 |
Purchase of business, net of cash acquired | -2,432 | -235,578 |
Purchases of furniture, equipment and other assets | -32,897 | -5,382 |
Net Cash Provided By (Used For) Investing Activities | 44,619 | -41,226 |
Financing Activities | ||
Purchases of common shares under share repurchase program | -162,898 | 0 |
Proceeds from common shares issued, net | -412 | 3,021 |
Proceeds from intercompany borrowings | 0 | |
Repayments of intercompany borrowings | 0 | |
Change in cash collateral related to securities lending | 5,529 | -4,669 |
Third party investment in non-redeemable noncontrolling interests | 0 | 796,903 |
Third party investment in redeemable noncontrolling interests | 0 | 186,893 |
Dividends paid to redeemable noncontrolling interests | -4,816 | 0 |
Dividends paid to parent | 0 | 0 |
Other | 29,779 | 1,700 |
Preferred dividends paid | -5,484 | -5,484 |
Net Cash Provided By (Used For) Financing Activities | -138,302 | 978,364 |
Effects of exchange rate changes on foreign currency cash | -6,468 | 241 |
Increase (decrease) in cash | -14,690 | 1,135,548 |
Cash beginning of year | 485,702 | 434,057 |
Cash end of period | 471,012 | 1,569,605 |
Reportable Legal Entities | ACGL (Parent Guarantor) | ||
Operating Activities | ||
Net Cash Provided by (Used in) Operating Activities | 173,508 | 11,685 |
Investing Activities | ||
Purchases of fixed maturity investments | 0 | 0 |
Purchases of equity securities | 0 | 0 |
Purchases of other investments | 0 | 0 |
Proceeds from the sale of fixed maturity investments | 0 | 0 |
Proceeds from the sale of equity securities | 0 | 0 |
Proceeds from sales, redemptions and maturities of other investments | 0 | 0 |
Proceeds from redemptions and maturities of fixed maturity investments | 0 | 0 |
Net sales (purchases) of short-term investments | 83 | -16 |
Change in cash collateral related to securities lending | 0 | 0 |
Contributions to subsidiaries | 0 | 0 |
Intercompany loans issued | 0 | 0 |
Purchase of business, net of cash acquired | 0 | 0 |
Purchases of furniture, equipment and other assets | -23 | -76 |
Net Cash Provided By (Used For) Investing Activities | 60 | -92 |
Financing Activities | ||
Purchases of common shares under share repurchase program | -162,898 | |
Proceeds from common shares issued, net | -412 | 3,021 |
Proceeds from intercompany borrowings | 0 | |
Repayments of intercompany borrowings | 0 | |
Change in cash collateral related to securities lending | 0 | 0 |
Third party investment in non-redeemable noncontrolling interests | 0 | |
Third party investment in redeemable noncontrolling interests | 0 | |
Dividends paid to redeemable noncontrolling interests | 0 | |
Dividends paid to parent | 0 | 0 |
Other | 0 | 0 |
Preferred dividends paid | -5,484 | -5,484 |
Net Cash Provided By (Used For) Financing Activities | -168,794 | -2,463 |
Effects of exchange rate changes on foreign currency cash | 0 | 0 |
Increase (decrease) in cash | 4,774 | 9,130 |
Cash beginning of year | 3,218 | 3,223 |
Cash end of period | 7,992 | 12,353 |
Reportable Legal Entities | Arch-U.S. (Subsidiary Issuer) | ||
Operating Activities | ||
Net Cash Provided by (Used in) Operating Activities | -8,950 | 7,151 |
Investing Activities | ||
Purchases of fixed maturity investments | 0 | 0 |
Purchases of equity securities | 0 | 0 |
Purchases of other investments | 0 | 0 |
Proceeds from the sale of fixed maturity investments | 9,001 | 0 |
Proceeds from the sale of equity securities | 0 | 0 |
Proceeds from sales, redemptions and maturities of other investments | 0 | 0 |
Proceeds from redemptions and maturities of fixed maturity investments | 0 | 0 |
Net sales (purchases) of short-term investments | -16 | 360,269 |
Change in cash collateral related to securities lending | 0 | 0 |
Contributions to subsidiaries | 0 | -312,207 |
Intercompany loans issued | -7,500 | 0 |
Purchase of business, net of cash acquired | 0 | 0 |
Purchases of furniture, equipment and other assets | 0 | 0 |
Net Cash Provided By (Used For) Investing Activities | 1,485 | 48,062 |
Financing Activities | ||
Purchases of common shares under share repurchase program | 0 | |
Proceeds from common shares issued, net | 0 | 0 |
Proceeds from intercompany borrowings | 7,500 | |
Repayments of intercompany borrowings | -10,250 | |
Change in cash collateral related to securities lending | 0 | 0 |
Third party investment in non-redeemable noncontrolling interests | 0 | |
Third party investment in redeemable noncontrolling interests | 0 | |
Dividends paid to redeemable noncontrolling interests | 0 | |
Dividends paid to parent | 0 | 0 |
Other | 0 | 0 |
Preferred dividends paid | 0 | 0 |
Net Cash Provided By (Used For) Financing Activities | 7,500 | -10,250 |
Effects of exchange rate changes on foreign currency cash | 0 | 0 |
Increase (decrease) in cash | 35 | 44,963 |
Cash beginning of year | 2,787 | 509 |
Cash end of period | 2,822 | 45,472 |
Reportable Legal Entities | Other ACGL Subsidiaries | ||
Operating Activities | ||
Net Cash Provided by (Used in) Operating Activities | 106,903 | 194,833 |
Investing Activities | ||
Purchases of fixed maturity investments | -7,030,731 | -7,131,071 |
Purchases of equity securities | -125,863 | -89,227 |
Purchases of other investments | -685,497 | -304,454 |
Proceeds from the sale of fixed maturity investments | 6,848,458 | 7,014,281 |
Proceeds from the sale of equity securities | 125,906 | 49,614 |
Proceeds from sales, redemptions and maturities of other investments | 605,263 | 331,176 |
Proceeds from redemptions and maturities of fixed maturity investments | 272,657 | 168,484 |
Net sales (purchases) of short-term investments | 66,216 | -203,991 |
Change in cash collateral related to securities lending | -5,529 | 4,669 |
Contributions to subsidiaries | -5,500 | -100,000 |
Intercompany loans issued | -7,500 | 10,250 |
Purchase of business, net of cash acquired | -2,432 | -235,578 |
Purchases of furniture, equipment and other assets | -32,874 | -5,306 |
Net Cash Provided By (Used For) Investing Activities | 22,574 | -491,153 |
Financing Activities | ||
Purchases of common shares under share repurchase program | 0 | |
Proceeds from common shares issued, net | 5,500 | 412,207 |
Proceeds from intercompany borrowings | 7,500 | |
Repayments of intercompany borrowings | 0 | |
Change in cash collateral related to securities lending | 5,529 | -4,669 |
Third party investment in non-redeemable noncontrolling interests | 796,903 | |
Third party investment in redeemable noncontrolling interests | 186,893 | |
Dividends paid to redeemable noncontrolling interests | -4,816 | |
Dividends paid to parent | -186,000 | -15,500 |
Other | 29,779 | 1,700 |
Preferred dividends paid | 0 | 0 |
Net Cash Provided By (Used For) Financing Activities | -142,508 | 1,377,534 |
Effects of exchange rate changes on foreign currency cash | -6,468 | 241 |
Increase (decrease) in cash | -19,499 | 1,081,455 |
Cash beginning of year | 479,697 | 430,325 |
Cash end of period | 460,198 | 1,511,780 |
Consolidating Adjustments and Eliminations | ||
Operating Activities | ||
Net Cash Provided by (Used in) Operating Activities | -186,000 | -15,500 |
Investing Activities | ||
Purchases of fixed maturity investments | 0 | 0 |
Purchases of equity securities | 0 | 0 |
Purchases of other investments | 0 | 0 |
Proceeds from the sale of fixed maturity investments | 0 | 0 |
Proceeds from the sale of equity securities | 0 | 0 |
Proceeds from sales, redemptions and maturities of other investments | 0 | 0 |
Proceeds from redemptions and maturities of fixed maturity investments | 0 | 0 |
Net sales (purchases) of short-term investments | 0 | 0 |
Change in cash collateral related to securities lending | 0 | 0 |
Contributions to subsidiaries | 5,500 | 412,207 |
Intercompany loans issued | 15,000 | -10,250 |
Purchase of business, net of cash acquired | 0 | 0 |
Purchases of furniture, equipment and other assets | 0 | 0 |
Net Cash Provided By (Used For) Investing Activities | 20,500 | 401,957 |
Financing Activities | ||
Purchases of common shares under share repurchase program | 0 | |
Proceeds from common shares issued, net | -5,500 | -412,207 |
Proceeds from intercompany borrowings | -15,000 | |
Repayments of intercompany borrowings | 10,250 | |
Change in cash collateral related to securities lending | 0 | 0 |
Third party investment in non-redeemable noncontrolling interests | 0 | |
Third party investment in redeemable noncontrolling interests | 0 | |
Dividends paid to redeemable noncontrolling interests | 0 | |
Dividends paid to parent | 186,000 | 15,500 |
Other | 0 | 0 |
Preferred dividends paid | 0 | 0 |
Net Cash Provided By (Used For) Financing Activities | 165,500 | -386,457 |
Effects of exchange rate changes on foreign currency cash | 0 | 0 |
Increase (decrease) in cash | 0 | 0 |
Cash beginning of year | 0 | 0 |
Cash end of period | $0 | $0 |
Transactions_with_Related_Part1
Transactions with Related Parties (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Related Party Transaction [Line Items] | ||
Investment commitments | $1,220,000,000 | |
Purchases of other investments | 685,497,000 | 304,454,000 |
Common director | The Carlyle Group | ||
Related Party Transaction [Line Items] | ||
Investment commitments | 545,900,000 | |
Unfunded commitments | 393,800,000 | |
Purchases of other investments | 23,400,000 | 19,100,000 |
Aggregate distributions received | $7,100,000 | $35,100,000 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | 31-May-08 |
Subsequent Event [Line Items] | |||
Investment in joint venture, at cost | $100,000,000 | $100,000,000 | |
Gulf Re | |||
Subsequent Event [Line Items] | |||
Investment in joint venture, at cost | 100,000,000 | ||
Joint venture, ownership percentage | 50.00% | ||
Joint venture, initial capital amount | $200,000,000 |