10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark one)

þ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended June 30, 2015

or

o Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

For the Transition Period from to .

Commission File Number 1-15202

W. R. BERKLEY CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	22-1867895
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)
475 Steamboat Road, Greenwich, Connecticut	06830
(Address of principal executive offices)	(Zip Code)

	(203) 629-3000
	(Registrant’s telephone number, including area code)
	None
Former name, former address and former fiscal year, if changed since last report.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ     No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes þ     No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer þ	Accelerated filer o	Non-accelerated filer o	Smaller reporting company o
		(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o     No þ

Number of shares of common stock, $.20 par value, outstanding as of July 31, 2015: 123,366,093

TABLE OF CONTENTS

Part I — FINANCIAL INFORMATION
	Item 1. Financial Statements
	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
	Item 3. Quantitative and Qualitative Disclosure About Market Risk
	Item 4. Controls and Procedures
PART II — OTHER INFORMATION
	Item 1. Legal Proceedings
	Item 1A. Risk Factors
	Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
	Item 6. Exhibits
SIGNATURES
EX-10.1
EX-31.1
EX-31.2
EX-32.1
EX-101 INSTANCE DOCUMENT
EX-101 SCHEMA DOCUMENT
EX-101 CALCULATION LINKBASE DOCUMENT
EX-101 LABELS LINKBASE DOCUMENT
EX-101 PRESENTATION LINKBASE DOCUMENT
EX-101 DEFINITION LINKBASE DOCUMENT

Part I — FINANCIAL INFORMATION

Item 1. Financial Statements

W. R. BERKLEY CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

	June 30, 2015			December 31, 2014
	(Unaudited)			(Audited)
Assets
Investments:
Fixed maturity securities	$	12,395,810		$	12,705,160
Investment funds	1,123,829			1,211,401
Real estate	820,257			731,612
Arbitrage trading account	830,212			450,648
Loans receivable	259,411			322,012
Equity securities	153,513			170,991
Total investments	15,583,032			15,591,824
Cash and cash equivalents	756,368			674,441
Premiums and fees receivable	1,766,654			1,651,088
Due from reinsurers	1,533,267			1,503,441
Deferred policy acquisition costs	521,312			488,525
Prepaid reinsurance premiums	415,672			395,748
Trading account receivables from brokers and clearing organizations	41,576			371,034
Property, furniture and equipment	332,015			332,098
Goodwill	150,682			150,944
Accrued investment income	129,364			120,367
Federal and foreign income taxes	29,135			30,171
Other assets	430,732			369,558
Total assets	$	21,689,809		$	21,679,239
Liabilities and Equity
Liabilities:
Reserves for losses and loss expenses	$	10,622,374		$	10,369,701
Unearned premiums	3,190,144			3,026,732
Due to reinsurers	225,213			237,270
Trading account securities sold but not yet purchased	155,484			106,079
Other liabilities	776,207			859,736
Senior notes and other debt	1,843,865			2,115,527
Subordinated debentures	340,190			340,060
Total liabilities	17,153,477			17,055,105
Equity:
Preferred stock, par value $.10 per share:
Authorized 5,000,000 shares; issued and outstanding - none
Common stock, par value $.20 per share:
Authorized 500,000,000 shares, issued and outstanding, net of treasury shares, 122,481,580 and 126,748,836 shares, respectively	47,024			47,024
Additional paid-in capital	1,003,567			991,512
Retained earnings	5,945,305			5,732,410
Accumulated other comprehensive income	86,055			183,550
Treasury stock, at cost, 112,636,338 and 108,369,082 shares, respectively	(2,579,764		)	(2,364,551		)
Total stockholders’ equity	4,502,187			4,589,945
Noncontrolling interests	34,145			34,189
Total equity	4,536,332			4,624,134
Total liabilities and equity	$	21,689,809		$	21,679,239

See accompanying notes to interim consolidated financial statements.

1

W. R. BERKLEY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(In thousands, except per share data)

	For the Three Months						For the Six Months
	Ended June 30,						Ended June 30,
	2015			2014			2015			2014
REVENUES:
Net premiums written	$	1,543,925		$	1,489,776		$	3,119,327		$	3,015,656
Change in net unearned premiums	(50,884		)	(72,131		)	(154,273		)	(234,399		)
Net premiums earned	1,493,041			1,417,645			2,965,054			2,781,257
Net investment income	127,583			138,729			251,822			307,440
Insurance service fees	35,942			26,922			72,460			55,625
Net realized investment gains	27,557			109,168			46,601			161,922
Revenues from wholly-owned investees	105,596			104,285			198,202			197,125
Other income	46			240			305			526
Total revenues	1,789,765			1,796,989			3,534,444			3,503,895
OPERATING COSTS AND EXPENSES:
Losses and loss expenses	906,235			867,778			1,806,943			1,689,873
Other operating costs and expenses	573,582			534,150			1,124,628			1,049,316
Expenses from wholly-owned investees	98,730			101,296			188,400			193,026
Interest expense	33,031			30,311			67,569			60,641
Total operating costs and expenses	1,611,578			1,533,535			3,187,540			2,992,856
Income before income taxes	178,187			263,454			346,904			511,039
Income tax expense	(55,138		)	(83,277		)	(105,411		)	(161,178		)
Net income before noncontrolling interests	123,049			180,177			241,493			349,861
Noncontrolling interests	(14		)	(216		)	(151		)	(227		)
Net income to common stockholders	$	123,035		$	179,961		$	241,342		$	349,634
NET INCOME PER SHARE:
Basic	$	0.99		$	1.41		$	1.93		$	2.72
Diluted	$	0.95		$	1.35		$	1.84		$	2.60

See accompanying notes to interim consolidated financial statements.

2

W. R. BERKLEY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

(In thousands)

	For the Three Months						For the Six Months
	Ended June 30,						Ended June 30,
	2015			2014			2015			2014
Net income before noncontrolling interests	$	123,049		$	180,177		$	241,493		$	349,861
Other comprehensive income (loss):
Change in unrealized currency translation adjustments	33,627			24,815			(14,178		)	20,790
Change in unrealized investment gains (loss), net of taxes	(99,620		)	48,200			(83,329		)	121,144
Change in net pension asset, net of taxes	—			2,020			—			2,611
Other comprehensive income (loss)	(65,993		)	75,035			(97,507		)	144,545
Comprehensive income	57,056			255,212			143,986			494,406
Comprehensive (income) to the noncontrolling interest	(24		)	(235		)	(139		)	(264		)
Comprehensive income to common stockholders	$	57,032		$	254,977		$	143,847		$	494,142

See accompanying notes to interim consolidated financial statements.

3

W. R. BERKLEY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)

(In thousands)

	For the Six Months
	Ended June 30,
	2015			2014
COMMON STOCK:
Beginning and end of period	$	47,024		$	47,024
ADDITIONAL PAID-IN CAPITAL:
Beginning of period	$	991,512		$	967,440
Restricted stock units issued, net of tax	(2,295		)	(5,692		)
Stock incentive plans expensed	14,350			13,046
End of period	$	1,003,567		$	974,794
RETAINED EARNINGS:
Beginning of period	$	5,732,410		$	5,265,015
Net income to common stockholders	241,342			349,634
Dividends	(28,447		)	(26,825		)
End of period	$	5,945,305		$	5,587,824
ACCUMULATED OTHER COMPREHENSIVE INCOME:
Unrealized investment gains:
Beginning of period	$	306,199		$	256,566
Unrealized gains (losses) on securities not other-than-temporarily impaired	(83,332		)	120,618
Unrealized gains on other-than-temporarily impaired securities	15			489
End of period	222,882			377,673
Currency translation adjustments:
Beginning of period	(122,649		)	(60,524		)
Net change in period	(14,178		)	20,790
End of period	(136,827		)	(39,734		)
Net pension asset:
Beginning of period	—			(6,651		)
Net change in period	—			2,611
End of period	—			(4,040		)
Total accumulated other comprehensive income	$	86,055		$	333,899
TREASURY STOCK:
Beginning of period	$	(2,364,551	)	$	(2,132,835	)
Stock exercised/vested	2,296			5,667
Stock repurchased	(218,132		)	(197,254		)
Stock incentive plans expensed	623			594
End of period	$	(2,579,764	)	$	(2,323,828	)
NONCONTROLLING INTERESTS:
Beginning of period	$	34,189		$	33,359
Contributions (distributions)	(183		)	1,222
Net income	151			227
Other comprehensive income (loss), net of tax	(12		)	37
End of period	$	34,145		$	34,845

See accompanying notes to interim consolidated financial statements.

4

W. R. BERKLEY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(In thousands)

	For the Six Months
	Ended June 30,
	2015			2014
CASH FROM OPERATING ACTIVITIES:
Net income to common stockholders	$	241,342		$	349,634
Adjustments to reconcile net income to net cash from operating activities:
Net investment gains	(46,601		)	(161,922		)
Depreciation and amortization	42,267			50,832
Noncontrolling interests	151			227
Investment funds	(27,912		)	(84,385		)
Stock incentive plans	14,973			13,615
Change in:
Arbitrage trading account	(702		)	(12,956		)
Premiums and fees receivable	(133,227		)	(197,004		)
Reinsurance accounts	(60,595		)	(57		)
Deferred policy acquisition costs	(34,245		)	(31,527		)
Income taxes	48,929			7,742
Reserves for losses and loss expenses	285,204			172,759
Unearned premiums	174,108			297,721
Other	(170,809		)	(150,056		)
Net cash from operating activities	332,883			254,623
CASH FROM (USED IN) INVESTING ACTIVITIES:
Proceeds from sale of fixed maturity securities	794,106			513,281
Proceeds from sale of equity securities	23,547			112,590
Distributions from investment funds	129,181			211,974
Proceeds from maturities and prepayments of fixed maturity securities	1,534,982			1,214,221
Purchase of fixed maturity securities	(2,168,400		)	(2,034,009		)
Purchase of equity securities	(8,543		)	(48,484		)
Additions to real estate	(84,826		)	(63,919		)
Real estate sold	—			343,723
Change in loans receivable	62,601			(312,071		)
Net additions to property, furniture and equipment	(23,504		)	(22,555		)
Change in balances due to security brokers	18,298			28,313
Net cash from business sold	—			15,548
Net cash from (used in) investing activities	277,442			(41,388		)
CASH USED IN FINANCING ACTIVITIES:
Repayment of senior notes and other debt	(275,788		)	—
Net proceeds from issuance of debt	3,749			4,988
Net proceeds from options exercised	1			53
Cash dividends to common stockholders	(28,447		)	(26,825		)
Purchase of common treasury shares	(218,132		)	(197,254		)
Other, net	(92		)	1,365
Net cash used in financing activities	(518,709		)	(217,673		)
Net impact on cash due to change in foreign exchange rates	(9,689		)	7,371
Net change in cash and cash equivalents	81,927			2,933
Cash and cash equivalents at beginning of year	674,441			839,738
Cash and cash equivalents at end of period	$	756,368		$	842,671

See accompanying notes to interim consolidated financial statements.

5

W. R. Berkley Corporation and Subsidiaries

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(1) General

The accompanying unaudited consolidated financial statements of W. R. Berkley Corporation and its subsidiaries (the “Company”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all the information and notes required by GAAP for annual financial statements. The unaudited consolidated financial statements reflect all adjustments, consisting only of normal recurring items, which are necessary to present fairly the Company’s financial position and results of operations on a basis consistent with the prior audited consolidated financial statements. Operating results for interim periods are not necessarily indicative of the results that may be expected for the year. All significant intercompany accounts and transactions have been eliminated. The preparation of financial statements requires the use of management estimates. For further information related to a description of areas of judgment and estimates and other information necessary to understand the Company’s financial position and results of operations, refer to the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. Reclassifications have been made in the 2014 financial statements as originally reported to conform to the presentation of the 2015 financial statements.

The income tax provision has been computed based on the Company’s estimated annual effective tax rate. The effective tax rate for the quarter differs from the federal income tax rate of 35% principally because of tax-exempt investment income.

(2) Per Share Data

The Company presents both basic and diluted net income per share (“EPS”) amounts. Basic EPS is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted EPS is based upon the weighted average number of common and common equivalent shares outstanding during the period and is calculated using the treasury stock method for stock incentive plans. Common equivalent shares are excluded from the computation in periods in which they have an anti-dilutive effect.

The weighted average number of common shares used in the computation of basic and diluted earnings per share was as follows:

	For the Three Months		For the Six Months
	Ended June 30,		Ended June 30,
(In thousands)	2015	2014	2015	2014
Basic	123,781	127,668	124,869	128,765
Diluted	129,988	133,304	131,228	134,323

(3) Recent Accounting Pronouncements

All recently issued but not yet effective accounting and reporting standards are either not applicable to the Company or are not expected to have a material impact on the Company.

6

(4) Acquisitions/Dispositions

In 2014, the Company acquired a specialty property and casualty insurance distribution company for $83 million. The fair values of the assets acquired and liabilities assumed have been estimated based on a valuation prepared by a third party. The estimated useful lives of the intangible assets acquired range from 7 years to 15 years, with approximately $10 million having an indefinite life.

In 2014, the Company sold an aviation-related business for $16 million. The business had a net carrying value of $15 million.

The following table summarizes the estimated fair value of net assets acquired and liabilities assumed for business combinations completed in 2014:

(In thousands)	2014
Cash and cash equivalents	$	17,457
Real estate, furniture and equipment	669
Goodwill and other intangibles assets	79,646
Premium and service fee receivable	24,432
Other assets	2,590
Total assets acquired	124,794
Deferred federal income tax	(7,107		)
Debt	—
Other liabilities assumed	(34,809		)
Net assets acquired	$	82,878

7

(5) Statement of Comprehensive Income (Loss)

The following table presents the components of the changes in accumulated other comprehensive income (loss) ("AOCI"):

(In thousands)	Unrealized Investment Gains (Losses)				Currency Translation Adjustments			Net Pension Asset		Accumulated Other Comprehensive Income (Loss)
As of and for the six months ended June 30, 2015:
Changes in AOCI
Beginning of period	$	306,199			$	(122,649	)	$	—	$	183,550
Other comprehensive income (loss) before reclassifications	(73,021		)		(14,178		)	—		(87,199		)
Amounts reclassified from AOCI	(10,308		)		—			—		(10,308		)
Other comprehensive income (loss)	(83,329		)		(14,178		)	—		(97,507		)
Unrealized investment gain related to non-controlling interest	12				—			—		12
End of period	$	222,882			$	(136,827	)	$	—	$	86,055
Amounts reclassified from AOCI
Pre-tax	$	(15,858	)	(1)	$	—		$	—	$	(15,858	)
Tax effect (2)	5,550				—			—		5,550
After-tax amounts reclassified	$	(10,308	)		$	—		$	—	$	(10,308	)
Other comprehensive income (loss)
Pre-tax	$	(127,455	)		$	(14,178	)	$	—	$	(141,633	)
Tax effect	44,126				—			—		44,126
Other comprehensive income (loss)	$	(83,329	)		$	(14,178	)	$	—	$	(97,507	)
As of and for the three months ended June 30, 2015:
Changes in AOCI
Beginning of period	$	322,512			$	(170,454	)	$	—	$	152,058
Other comprehensive income (loss) before reclassifications	(97,613		)		33,627			—		(63,986		)
Amounts reclassified from AOCI	(2,007		)		—			—		(2,007		)
Other comprehensive income (loss)	(99,620		)		33,627			—		(65,993		)
Unrealized investment gain related to non-controlling interest	(10		)		—			—		(10		)
End of period	$	222,882			$	(136,827	)	$	—	$	86,055
Amounts reclassified from AOCI
Pre-tax	$	(3,087	)	(1)	$	—		$	—	$	(3,087	)
Tax effect (2)	1,080				—			—		1,080
After-tax amounts reclassified	$	(2,007	)		$	—		$	—	$	(2,007	)
Other comprehensive income (loss)
Pre-tax	$	(151,991	)		$	33,627		$	—	$	(118,364	)
Tax effect	52,371				—			—		52,371
Other comprehensive income (loss)	$	(99,620	)		$	33,627		$	—	$	(65,993	)

8

	Unrealized Investment Gains (Losses)				Currency Translation Adjustments			Net Pension Asset				Accumulated Other Comprehensive Income (Loss)
(In thousands)
As of and for the six months ended June 30, 2014:
Changes in AOCI
Beginning of period	$	256,566			$	(60,524	)	$	(6,651	)		$	189,391
Other comprehensive income (loss) before reclassifications	140,289				20,790			—				161,079
Amounts reclassified from AOCI	(19,145		)		—			2,611				(16,534		)
Other comprehensive income (loss)	121,144				20,790			2,611				144,545
Unrealized investment loss related to non-controlling interest	(37		)		—			—				(37		)
End of period	$	377,673			$	(39,734	)	$	(4,040	)		$	333,899
Amounts reclassified from AOCI
Pre-tax	$	(29,454	)	(1)	$	—		$	4,017		(3)	$	(25,437	)
Tax effect (2)	10,309				—			(1,406		)		8,903
After-tax amounts reclassified	$	(19,145	)		$	—		$	2,611			$	(16,534	)
Other comprehensive income (loss)
Pre-tax	$	188,680			$	20,790		$	4,017			$	213,487
Tax effect	(67,536		)		—			(1,406		)		(68,942		)
Other comprehensive income (loss)	$	121,144			$	20,790		$	2,611			$	144,545
As of and for the three months ended June 30, 2014:
Changes in AOCI
Beginning of period	$	329,492			$	(64,549	)	$	(6,060	)		$	258,883
Other comprehensive income (loss) before reclassifications	62,846				24,815			—				87,661
Amounts reclassified from AOCI	(14,646		)		—			2,020				(12,626		)
Other comprehensive income (loss)	48,200				24,815			2,020				75,035
Unrealized investment loss related to non-controlling interest	(19		)		—			—				(19		)
End of period	$	377,673			$	(39,734	)	$	(4,040	)		$	333,899
Amounts reclassified from AOCI
Pre-tax	$	(22,532	)	(1)	$	—		$	3,108		(3)	$	(19,424	)
Tax effect (2)	7,886				—			(1,088		)		6,798
After-tax amounts reclassified	$	(14,646	)		$	—		$	2,020			$	(12,626	)
Other comprehensive income (loss)
Pre-tax	$	76,390			$	24,815		$	3,108			$	104,313
Tax effect	(28,190		)		—			(1,088		)		(29,278		)
Other comprehensive income (loss)	$	48,200			$	24,815		$	2,020			$	75,035

_______________

(1) Net investment gains in the consolidated statements of income.

(2) Income tax expense in the consolidated statements of income.

(3) Other operating costs and expenses in the consolidated statements of income.

9

(6) Statements of Cash Flow

Interest payments were $67,786,000 and $59,811,000 and income taxes paid were $54,324,000 and $152,439,000 in the three months ended June 30, 2015 and 2014, respectively.

(7) Investments in Fixed Maturity Securities

At June 30, 2015 and December 31, 2014, investments in fixed maturity securities were as follows:

(In thousands)	Amortized Cost		Gross Unrealized					Fair Value		Carrying Value
			Gains		Losses
June 30, 2015
Held to maturity:
State and municipal	$	75,066	$	15,029	$	—		$	90,095	$	75,066
Residential mortgage-backed	21,241		2,655		—			23,896		21,241
Corporate	4,999		142		—			5,141		4,999
Total held to maturity	101,306		17,826		—			119,132		101,306
Available for sale:
U.S. government and government agency	691,250		27,672		(3,555		)	715,367		715,367
State and municipal:
Special revenue	2,345,401		91,768		(8,386		)	2,428,783		2,428,783
State general obligation	640,845		25,694		(6,113		)	660,426		660,426
Pre-refunded	444,165		28,606		(133		)	472,638		472,638
Corporate backed	419,572		13,850		(998		)	432,424		432,424
Local general obligation	283,988		21,023		(431		)	304,580		304,580
Total state and municipal	4,133,971		180,941		(16,061		)	4,298,851		4,298,851
Mortgage-backed securities:
Residential (1)	1,085,961		24,498		(10,514		)	1,099,945		1,099,945
Commercial	68,378		1,053		(93		)	69,338		69,338
Total mortgage-backed securities	1,154,339		25,551		(10,607		)	1,169,283		1,169,283
Corporate:
Asset-backed	1,644,366		17,816		(10,027		)	1,652,155		1,652,155
Industrial	1,780,193		96,890		(10,238		)	1,866,845		1,866,845
Financial	1,296,370		32,050		(10,412		)	1,318,008		1,318,008
Utilities	182,282		10,412		(2,212		)	190,482		190,482
Other	116,146		756		(539		)	116,363		116,363
Total corporate	5,019,357		157,924		(33,428		)	5,143,853		5,143,853
Foreign	918,738		65,344		(16,932		)	967,150		967,150
Total available for sale	11,917,655		457,432		(80,583		)	12,294,504		12,294,504
Total investments in fixed maturity securities	$	12,018,961	$	475,258	$	(80,583	)	$	12,413,636	$	12,395,810

10

(In thousands)	Amortized Cost		Gross Unrealized					Fair Value		Carrying Value
			Gains		Losses
December 31, 2014
Held to maturity:
State and municipal	$	72,901	$	17,501	$	—		$	90,402	$	72,901
Residential mortgage-backed	23,278		2,854		—			26,132		23,278
Corporate	4,998		291		—			5,289		4,998
Total held to maturity	101,177		20,646		—			121,823		101,177
Available for sale:
U.S. government and government agency	773,192		33,353		(3,157		)	803,388		803,388
State and municipal:
Special revenue	2,264,210		111,841		(2,084		)	2,373,967		2,373,967
State general obligation	674,022		37,615		(787		)	710,850		710,850
Pre-refunded	504,778		35,619		(289		)	540,108		540,108
Corporate backed	413,234		18,976		(855		)	431,355		431,355
Local general obligation	281,622		25,099		(5		)	306,716		306,716
Total state and municipal	4,137,866		229,150		(4,020		)	4,362,996		4,362,996
Mortgage-backed securities:
Residential (1)	1,201,924		27,124		(9,449		)	1,219,599		1,219,599
Commercial	74,479		1,610		(52		)	76,037		76,037
Total mortgage-backed securities	1,276,403		28,734		(9,501		)	1,295,636		1,295,636
Corporate:
Asset-backed	2,019,032		18,868		(11,974		)	2,025,926		2,025,926
Industrial	1,606,724		117,206		(5,131		)	1,718,799		1,718,799
Financial	1,140,801		38,080		(7,673		)	1,171,208		1,171,208
Utilities	184,107		12,436		(1		)	196,542		196,542
Other	86,294		1,370		(2		)	87,662		87,662
Total corporate	5,036,958		187,960		(24,781		)	5,200,137		5,200,137
Foreign	897,668		62,223		(18,065		)	941,826		941,826
Total available for sale	12,122,087		541,420		(59,524		)	12,603,983		12,603,983
Total investments in fixed maturity securities	$	12,223,264	$	562,066	$	(59,524	)	$	12,725,806	$	12,705,160

____________

(1) Gross unrealized losses for residential mortgage-backed securities include $1,073,002 and $1,095,671 as of June 30, 2015 and December 31, 2014, respectively, related to the non-credit portion of other-than-temporary impairments (“OTTI”) recognized in accumulated other comprehensive income.

The amortized cost and fair value of fixed maturity securities at June 30, 2015, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because certain issuers may have the right to call or prepay obligations.

(In thousands)	Amortized Cost		Fair Value
Due in one year or less	$	818,912	$	825,584
Due after one year through five years	3,934,376		4,091,220
Due after five years through ten years	3,612,449		3,754,639
Due after ten years	2,477,644		2,549,014
Mortgage-backed securities	1,175,580		1,193,179
Total	$	12,018,961	$	12,413,636

At June 30, 2015, there were no investments, other than investments in United States government and government agency securities, which exceeded 10% of common stockholders’ equity.

11

(8) Investments in Equity Securities

At June 30, 2015 and December 31, 2014, investments in equity securities were as follows:

(In thousands)	Cost		Gross Unrealized					Fair Value		Carrying Value
			Gains		Losses
June 30, 2015
Common stocks	$	69,860	$	—	$	(10,669	)	$	59,191	$	59,191
Preferred stocks	86,583		12,022		(4,283		)	94,322		94,322
Total	$	156,443	$	12,022	$	(14,952	)	$	153,513	$	153,513
December 31, 2014
Common stocks	$	69,870	$	11,929	$	(5,453	)	$	76,346	$	76,346
Preferred stocks	90,425		8,385		(4,165		)	94,645		94,645
Total	$	160,295	$	20,314	$	(9,618	)	$	170,991	$	170,991

(9) Arbitrage Trading Account

At June 30, 2015 and December 31, 2014, the carrying value of the arbitrage trading account was $830 million and $451 million, respectively. The primary focus of the trading account is merger arbitrage. Merger arbitrage is the business of investing in the securities of publicly held companies which are the targets in announced tender offers and mergers. Arbitrage investing differs from other types of investing in its focus on transactions and events believed likely to bring about a change in value over a relatively short time period (usually four months or less). The Company believes that this makes merger arbitrage investments less vulnerable to changes in general financial market conditions.

(10) Net Investment Income

Net investment income consists of the following:

	For the Three Months						For the Six Months
	Ended June 30,						Ended June 30,
(In thousands)	2015			2014			2015			2014
Investment income (loss) earned on:
Fixed maturity securities, including cash and cash equivalents and loans receivable	$	105,030		$	107,760		$	213,159		$	214,658
Investment funds	21,851			22,356			27,912			76,155
Arbitrage trading account	(117		)	6,942			8,862			12,461
Equity securities available for sale	1,224			2,103			2,404			4,049
Real estate	2,114			3,063			4,881			6,165
Gross investment income	130,102			142,224			257,218			313,488
Investment expense	(2,519		)	(3,495		)	(5,396		)	(6,048		)
Net investment income	$	127,583		$	138,729		$	251,822		$	307,440

12

(11) Investment Funds

Investment funds consist of the following:

	Carrying Value as of				Income (Loss) from Investment Funds
	June 30,		December 31,		For the Six Months Ended June 30:
(In thousands)	2015		2014		2015			2014
Real estate	$	506,774	$	466,703	$	42,337		$	16,482
Energy	113,779		152,056		(27,484		)	12,596
Arbitrage	72,752		282,335		(590		)	8,231
Other funds	430,524		310,307		13,649			38,846
Total	$	1,123,829	$	1,211,401	$	27,912		$	76,155

The Company's share of the earnings or losses of investment funds is generally reported on a one-quarter lag in order to facilitate the timely completion of the Company's consolidated financial statements.

Other funds include private equity investments carried on the equity method of accounting, which includes a publicly traded common stock investment in HealthEquity, Inc. (HQY). Our ownership interest in HQY as of June 30, 2015 is 25.8% with a fair value of $457 million and a carrying value of $45 million.

(12) Real Estate

Investment in real estate represents directly owned property held for investment, as follows:    

	Carrying Value
	June 30,		December 31,
(In thousands)	2015		2014
Properties in operation	$	209,219	$	196,980
Properties under development	611,038		534,632
Total	$	820,257	$	731,612

Properties in operation include a long-term ground lease in Washington, D.C. and an office building in West Palm Beach, Florida. Properties in operation are net of accumulated depreciation and amortization of $5,834,000 and $1,609,000 as of June 30, 2015 and December 31, 2014, respectively. Related depreciation expense was $4,264,000 and $3,219,000 for the six months ended June 30, 2015 and 2014, respectively. Future minimum rental income expected on operating leases relating to properties in operation is $5,741,234 in 2015, $11,456,555 in 2016, $11,499,945 in 2017, $10,832,715 in 2018, $7,839,368 in 2019, $5,867,788 in 2020 and $330,727,579 thereafter.

Properties under development include an office building in London, a mixed-use project in Washington D.C. and an office complex in New York City.

13

(13) Loans Receivable

Loans receivable are as follows:

(In thousands)	June 30, 2015			December 31, 2014
Amortized cost:
Real estate loans	$	174,719		$	243,407
Commercial loans	84,692			78,605
Total	$	259,411		$	322,012
Fair value:
Real estate loans	$	177,648		$	245,112
Commercial loans	84,693			80,107
Total	$	262,341		$	325,219
Valuation allowance:
Specific	$	75		$	115
General	2,311			2,371
Total	$	2,386		$	2,486
	For the Three Months Ended June 30,
	2015			2014
Increase (decrease) in valuation allowance	$	(53	)	$	16
Loans receivable charged off	—			—
	For the Six Months  Ended June 30,
	2015			2014
Increase (decrease) in valuation allowance	$	(100	)	$	479
Loans receivable charged off	—			—

Loans receivable in non-accrual status were $9.5 million and $14.2 million as of June 30, 2015 and December 31, 2014, respectively.

The Company monitors the performance of its loans receivable and assesses the ability of the borrower to pay principal and interest based upon loan structure, underlying property values, cash flow and related financial and operating performance of the property and market conditions. Loans receivable with a potential for default are further assessed using discounted cash flow analysis and comparable cost and sales methodologies, if appropriate.

The real estate loans are secured by commercial real estate primarily located in Arizona, Maryland, New York and Texas. These loans generally earn interest at floating LIBOR-based interest rates and have maturities (inclusive of extension options) through August 2025. The commercial loans are with small business owners who have secured the related financing with the assets of the business. Commercial loans generally earn interest on a fixed basis and have varying maturities not exceeding 10 years.

The Company utilizes a risk rating system to assign a risk to each of its real estate loans. The loan rating system takes into consideration credit quality indicators including loan to value ratios, which compare the outstanding loan amount to the estimated value of the property, the borrower’s financial condition and performance with respect to loan terms, the Company’s position in the capital structure, and the overall leverage in the capital structure. Based on this rating system, none of the real estate loans were considered to be impaired at June 30, 2015, and accordingly, the Company determined that a specific valuation allowance was not required.

14

(14) Realized and Unrealized Investment Gains (Losses)

Realized and unrealized investment gains (losses) are as follows:

	For the Three Months Ended June 30,						For the Six Months Ended June 30:
(In thousands)	2015			2014			2015			2014
Realized investment gains (losses):
Fixed maturity securities:
Gains	$	3,612		$	1,941		$	7,759		$	4,003
Losses	(484		)	(464		)	(1,561		)	(2,062		)
Equity securities available for sale	(42		)	23,124			9,660			29,581
Investment funds	23,684			(1,076		)	22,173			44,757
Real estate	—			85,643			—			85,643
Other	787			—			8,570			—
Total	27,557			109,168			46,601			161,922
Income tax expense	(9,645		)	(38,208		)	(16,311		)	(56,673		)
Total after-tax realized investment gains	$	17,912		$	70,960		$	30,290		$	105,249

Change in unrealized investment gains (losses):
Fixed maturity securities	$	(147,792	)	$	87,882		$	(105,312	)	$	179,520
Previously impaired fixed maturity securities	15			194			23			753
Equity securities available for sale	(6,779		)	(17,870		)	(13,624		)	8,333
Investment funds	2,566			6,184			(8,541		)	74
Total change in unrealized investment gains (losses)	(151,990		)	76,390			(127,454		)	188,680
Income tax benefit (expense)	52,370			(28,190		)	44,125			(67,536		)
Noncontrolling interests	(10		)	(19		)	12			(37		)
Total after-tax unrealized gains (losses)	$	(99,630	)	$	48,181		$	(83,317	)	$	121,107

15

(15) Securities in an Unrealized Loss Position

The following tables summarize all securities in an unrealized loss position at June 30, 2015 and December 31, 2014 by the length of time those securities have been continuously in an unrealized loss position:

	Less Than 12 Months				12 Months or Greater				Total
(In thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
June 30, 2015
U.S. government and government agency	$	72,300	$	1,656	$	73,593	$	1,899	$	145,893	$	3,555
State and municipal	873,578		12,783		108,782		3,278		982,360		16,061
Mortgage-backed securities	222,473		2,903		212,426		7,704		434,899		10,607
Corporate	1,669,868		18,973		159,708		14,455		1,829,576		33,428
Foreign	131,227		4,036		48,528		12,896		179,755		16,932
Fixed maturity securities	2,969,446		40,351		603,037		40,232		3,572,483		80,583
Common stocks	47,359		10,669		—		—		47,359		10,669
Preferred stocks	13,584		1,267		22,658		3,016		36,242		4,283
Equity securities	60,943		11,936		22,658		3,016		83,601		14,952
Total	$	3,030,389	$	52,287	$	625,695	$	43,248	$	3,656,084	$	95,535
December 31, 2014
U.S. government and government agency	$	84,750	$	522	$	84,850	$	2,635	$	169,600	$	3,157
State and municipal	158,594		631		150,284		3,389		308,878		4,020
Mortgage-backed securities	75,739		332		312,922		9,169		388,661		9,501
Corporate	1,586,238		8,697		214,628		16,084		1,800,866		24,781
Foreign	76,471		3,907		85,025		14,158		161,496		18,065
Fixed maturity securities	1,981,792		14,089		847,709		45,435		2,829,501		59,524
Common stocks	15,929		5,453		—		—		15,929		5,453
Preferred stocks	27,126		1,139		22,648		3,026		49,774		4,165
Equity securities	43,055		6,592		22,648		3,026		65,703		9,618
Total	$	2,024,847	$	20,681	$	870,357	$	48,461	$	2,895,204	$	69,142

Fixed Maturity Securities – A summary of the Company’s non-investment grade fixed maturity securities that were in an unrealized loss position at June 30, 2015 is presented in the table below:

($ in thousands)	Number of Securities	Aggregate Fair Value		Gross Unrealized Loss
Mortgage-backed securities	7	$	24,150	$	1,605
Corporate	13	90,216		2,486
Total	20	$	114,366	$	4,091

For OTTI of fixed maturity securities that management does not intend to sell or, more likely than not, would not be required to sell, the portion of the decline in value considered to be due to credit factors is recognized in earnings and the portion of the decline in value considered to be due to non-credit factors is recognized in other comprehensive income. For the six months ended June 30, 2015 and 2014, there were no changes in the portion of impairments recognized in earnings for those securities that have been impaired due to both credit factors and non-credit factors.

The Company has evaluated its fixed maturity securities in an unrealized loss position and believes the unrealized losses are due primarily to temporary market and sector-related factors rather than to issuer-specific factors. None of these securities are delinquent or in default under financial covenants. Based on its assessment of these issuers, the Company expects them to continue to meet their contractual payment obligations as they become due and does not consider any of these securities to be OTTI.

16

Equity Securities – At June 30, 2015, there were eight equity securities in an unrealized loss position, with an aggregate fair value of $83.6 million and a gross unrealized loss of $15 million. Three of these equity securities are preferred stocks that are rated non-investment grade with an aggregate fair value of $3.6 million and a gross unrealized loss of $1.2 million. Based upon management’s view of the underlying value of these securities, the Company does not consider these equity securities to be OTTI.

Loans Receivable – The Company monitors the performance of its loans receivable, including current market conditions for each loan and the ability to collect principal and interest. For loans where the Company determines it is probable that the contractual terms will not be met, an analysis is performed and a valuation reserve is established, if necessary, with a charge to earnings. Loans receivable are reported net of a valuation reserve of $2 million and $3 million at June 30, 2015 and December 31, 2014, respectively.

(16)Fair Value Measurements

The Company’s fixed maturity and equity securities classified as available for sale and its trading account securities are carried at fair value. Fair value is defined as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” The Company utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels, as follows:

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.  

Level 2 - Quoted prices for similar assets or valuations based on inputs that are observable.

Level 3 - Estimates of fair value based on internal pricing methodologies using unobservable inputs. Unobservable inputs are only used to measure fair value to the extent that observable inputs are not available.

Substantially all of the Company’s fixed maturity securities were priced by independent pricing services. The prices provided by the independent pricing services are estimated based on observable market data in active markets utilizing pricing models and processes, which may include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, sector groupings, matrix pricing and reference data. The pricing services may prioritize inputs differently on any given day for any security based on market conditions, and not all inputs are available for each security evaluation on any given day. The pricing services used by the Company have indicated that they will only produce an estimate of fair value if objectively verifiable information is available. The determination of whether markets are active or inactive is based upon the volume and level of activity for a particular asset class. The Company reviews the prices provided by pricing services for reasonableness and periodically performs independent price tests of a sample of securities to ensure proper valuation.

If prices from independent pricing services are not available for fixed maturity securities, the Company estimates the fair value. For Level 2 securities, the Company utilizes pricing models and processes which may include benchmark yields, sector groupings, matrix pricing, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, bids, offers and reference data. Where broker quotes are used, the Company generally requests two or more quotes and sets a price within the range of quotes received based on its assessment of the credibility of the quote and its own evaluation of the security. The Company generally does not adjust quotes received from brokers. For securities traded only in private negotiations, the Company determines fair value based primarily on the cost of such securities, which is adjusted to reflect prices of recent placements of securities of the same issuer, financial projections, credit quality and business developments of the issuer and other relevant information.

For Level 3 securities, the Company generally uses a discounted cash flow model to estimate the fair value of fixed maturity securities. The cash flow models are based upon assumptions as to prevailing credit spreads, interest rate and interest rate volatility, time to maturity and subordination levels. Projected cash flows are discounted at rates that are adjusted to reflect illiquidity, where appropriate.

17

The following tables present the assets and liabilities measured at fair value, on a recurring basis, as of June 30, 2015 and December 31, 2014 by level:

(In thousands)	Total		Level 1		Level 2		Level 3
June 30, 2015
Assets:
Fixed maturity securities available for sale:
U.S. government and government agency	$	715,367	$	—	$	715,367	$	—
State and municipal	4,298,851		—		4,298,851		—
Mortgage-backed securities	1,169,283		—		1,169,283		—
Corporate	5,143,853		—		5,143,699		154
Foreign government	967,150		—		967,150		—
Total fixed maturity securities available for sale	12,294,504		—		12,294,350		154
Equity securities available for sale:
Common stocks	59,191		50,172		—		9,019
Preferred stocks	94,322		—		90,647		3,675
Total equity securities available for sale	153,513		50,172		90,647		12,694
Arbitrage trading account	830,212		387,575		441,580		1,057
Total	$	13,278,229	$	437,747	$	12,826,577	$	13,905
Liabilities:
Securities sold but not yet purchased	$	155,484	$	155,428	$	56	$	—
December 31, 2014
Assets:
Fixed maturity securities available for sale:
U.S. government and government agency	$	803,388	$	—	$	803,388	$	—
State and municipal	4,362,996		—		4,362,996		—
Mortgage-backed securities	1,295,636		—		1,295,636		—
Corporate	5,200,137		—		5,179,372		20,765
Foreign government	941,826		—		941,826		—
Total fixed maturity securities available for sale	12,603,983		—		12,583,218		20,765
Equity securities available for sale:
Common stocks	76,346		65,605		—		10,741
Preferred stocks	94,645		—		90,932		3,713
Total equity securities available for sale	170,991		65,605		90,932		14,454
Arbitrage trading account	450,648		295,047		154,881		720
Total	$	13,225,622	$	360,652	$	12,829,031	$	35,939
Liabilities:
Securities sold but not yet purchased	$	106,079	$	106,074	$	5	$	—

There were no significant transfers between Levels 1 and 2 during the six months ended June 30, 2015 or during the year ended December 31, 2014.

18

The following tables summarize changes in Level 3 assets and liabilities for the six months ended June 30, 2015 and for the year ended December 31, 2014:

	Gains (Losses) Included in:
(In thousands)	Beginning Balance		Earnings			Other Comprehensive Income			Purchases		(Sales)			Paydowns/ Maturities			Transfers					Ending Balance
																	In		Out
Six months ended June 30, 2015
Assets:
Fixed maturities available for sale:
Corporate	$	20,765	$	15		$	180		$	—	$	—		$	(1,673	)	$	—	$	(19,133	)	$	154
Total	20,765		15			180			—		—			(1,673		)	—		(19,133		)	154
Equity securities available for sale:
Common stocks	10,741		—			(1,722		)	—		—			—			—		—			9,019
Preferred stocks	3,713		(38		)	—			—		—			—			—		—			3,675
Total	14,454		(38		)	(1,722		)	—		—			—			—		—			12,694
Arbitrage trading account	720		(437		)	—			72,640		(71,866		)	—			—		—			1,057
Total	$	35,939	$	(460	)	$	(1,542	)	$	72,640	$	(71,866	)	$	(1,673	)	$	—	$	(19,133	)	$	13,905
Liabilities:
Securities sold but not yet purchased	$	—	$	—		$	—		$	—	$	—		$	—		$	—	$	—		$	—
Year ended December 31, 2014:
Assets:
Fixed maturities available for sale:
Corporate	$	42,864	$	47		$	(3,711	)	$	238	$	(15,244	)	$	(3,429	)	$	—	$	—		$	20,765
Total	42,864		47			(3,711		)	238		(15,244		)	(3,429		)	—		—			20,765
Equity securities available for sale:
Common stocks	1,238		—			(911		)	11,343		(929		)	—			—		—			10,741
Preferred stocks	3,752		(17		)	—			3,430		(3,452		)	—			—		—			3,713
Total	4,990		(17		)	(911		)	14,773		(4,381		)	—			—		—			14,454
Arbitrage trading account	1,780		2,274			—			4,942		(14,073		)	—			9,064		(3,267		)	720
Total	$	49,634	$	2,304		$	(4,622	)	$	19,953	$	(33,698	)	$	(3,429	)	$	9,064	$	(3,267	)	$	35,939
Liabilities:
Securities sold but not yet purchased	$	—	$	(20	)	$	—		$	31	$	(11	)	$	—		$	—	$	—		$	—

During the six months ended June 30, 2015, four securities were transferred out of Level 3 where an observable price was available. During the year ended December 31, 2014, two securities were transferred into Level 3 where the quoted prices were no longer available. One of these securities was sold during the second quarter of 2014.

19

(17) Fair Value of Financial Instruments

The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments:

	June 30, 2015				December 31, 2014
(In thousands)	Carrying Value		Fair Value		Carrying Value		Fair Value
Assets:
Fixed maturity securities	$	12,395,810	$	12,413,636	$	12,705,160	$	12,725,806
Equity securities available for sale	153,513		153,513		170,991		170,991
Arbitrage trading account	830,212		830,212		450,648		450,648
Loans receivable	259,411		262,341		322,012		325,219
Cash and cash equivalents	756,368		756,368		674,441		674,441
Trading account receivables from brokers and clearing organizations	41,576		41,576		371,034		371,034
Liabilities:
Due to broker	39,795		39,795		23,133		23,133
Trading account securities sold but not yet purchased	155,484		155,484		106,079		106,079
Subordinated debentures	340,190		338,660		340,060		332,640
Senior notes and other debt	1,843,865		2,025,469		2,115,527		2,344,292

The estimated fair values of the Company’s fixed maturity securities, equity securities available for sale and arbitrage trading account securities are based on various valuation techniques that rely on fair value measurements as described in Note 16 above. The fair value of loans receivable are estimated by using current institutional purchaser yield requirements for loans with similar credit characteristics, which is considered a Level 2 input. The fair value of the senior notes and other debt and the subordinated debentures is based on spreads for similar securities, which is considered a Level 2 input.

(18) Reinsurance

The following is a summary of reinsurance financial information:

	For the Three Months						For the Six Months
	Ended June 30,						Ended June 30,
(In thousands)	2015			2014			2015			2014
Written premiums:
Direct	$	1,603,899		$	1,580,639		$	3,251,240		$	3,145,827
Assumed	207,499			191,762			411,963			431,841
Ceded	(267,473		)	(282,625		)	(543,876		)	(562,012		)
Total net premiums written	$	1,543,925		$	1,489,776		$	3,119,327		$	3,015,656
Earned premiums:
Direct	$	1,545,983		$	1,449,152		$	3,070,719		$	2,830,724
Assumed	211,352			224,916			414,694			450,678
Ceded	(264,294		)	(256,423		)	(520,359		)	(500,145		)
Total net premiums earned	$	1,493,041		$	1,417,645		$	2,965,054		$	2,781,257
Ceded losses incurred	$	131,928		$	89,569		$	250,319		$	190,253
Ceded commissions earned	$	40,169		$	38,055		$	83,820		$	75,226

The Company reinsures a portion of its insurance exposures in order to reduce its net liability on individual risks and catastrophe losses. The Company also cedes premiums to state assigned risk plans and captive insurance companies. Estimated amounts due from reinsurers are reported net of reserves for uncollectible reinsurance of $1 million as of June 30, 2015 and December 31, 2014.

20

(19) Restricted Stock Units

Pursuant to its stock incentive plan, the Company may issue restricted stock units (RSUs) to employees of the Company and its subsidiaries. The RSUs generally vest three to five years from the award date and are subject to other vesting and forfeiture provisions contained in the award agreement. RSUs are expensed pro-ratably over the vesting period. RSU expenses were $15 million and $12 million for the six months ended June 30, 2015 and 2014, respectively. A summary of RSUs issued in the six months ended June 30, 2015 and 2014 follows:

($ in thousands)	Units	Fair Value
Six months ended June 30,
2015	22,011	$	1,102
2014	25,950	$	1,079

(20) Litigation and Contingent Liabilities

In the ordinary course of business, the Company is subject to disputes, litigation and arbitration arising from its insurance and reinsurance businesses. These matters are generally related to insurance and reinsurance claims and are considered in the establishment of loss and loss expense reserves. In addition, the Company may also become involved in legal actions which seek extra-contractual damages, punitive damages or penalties, including claims alleging bad faith in handling of insurance claims. The Company expects its ultimate liability with respect to such matters will not be material to its financial condition. However, adverse outcomes on such matters are possible, from time to time, and could be material to the Company’s results of operations in any particular financial reporting period.

(21) Business Segments

The Company’s financial results are presented for the following reportable business segments, plus a corporate segment:

• Insurance-Domestic - commercial insurance business, including excess and surplus lines and admitted lines, primarily throughout the United States;

• Insurance-International - insurance business primarily in the United Kingdom, Continental Europe, South America, Canada, Scandinavia, and Australia; and

• Reinsurance-Global - reinsurance business on a facultative and treaty basis, primarily in the United States, United Kingdom, Continental Europe, Australia, and the Asia-Pacific Region.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies. Income tax expense and benefits are calculated based upon the Company’s overall effective tax rate.

21

Summary financial information about the Company's business segments is presented in the following tables:

	Revenues
(In thousands)	Earned Premiums		Investment Income		Other		Total		Pre-Tax Income (Loss)			Net Income (Loss) to Common Stockholders
Three months ended June 30, 2015:
Insurance-Domestic	$	1,159,653	$	93,114	$	24,385	$	1,277,152	$	175,953		$	120,578
Insurance-International	191,729		10,150		—		201,879		7,517			5,518
Reinsurance-Global	141,659		18,066		—		159,725		27,122			18,827
Corporate and eliminations (1)	—		6,253		117,199		123,452		(59,962		)	(39,799		)
Net investment gains	—		—		27,557		27,557		27,557			17,911
Total	$	1,493,041	$	127,583	$	169,141	$	1,789,765	$	178,187		$	123,035
Three months ended June 30, 2014:
Insurance-Domestic	$	1,041,745	$	103,073	$	26,985	$	1,171,803	$	176,855		$	121,834
Insurance-International	201,868		11,276		—		213,144		11,510			8,253
Reinsurance-Global	174,032		17,608		—		191,640		25,866			18,025
Corporate and eliminations (1)	—		6,772		104,462		111,234		(59,945		)	(39,110		)
Net investment gains	—		—		109,168		109,168		109,168			70,959
Total	$	1,417,645	$	138,729	$	240,615	$	1,796,989	$	263,454		$	179,961
Six months ended June 30, 2015
Insurance-Domestic	$	2,277,195	$	175,766	$	49,960	$	2,502,921	$	342,819		$	235,488
Insurance-International	385,463		26,582		—		412,045		28,820			20,647
Reinsurance-Global	302,396		35,107		—		337,503		47,384			33,327
Corporate and eliminations (1)	—		14,367		221,007		235,374		(118,720		)	(78,410		)
Net investment gains	—		—		46,601		46,601		46,601			30,290
Total	$	2,965,054	$	251,822	$	317,568	$	3,534,444	$	346,904		$	241,342
Six months ended June 30, 2014:
Insurance-Domestic	$	2,045,252	$	221,210	$	55,751	$	2,322,213	$	379,040		$	259,870
Insurance-International	387,192		27,928		—		415,120		29,257			20,721
Reinsurance-Global	348,813		45,186		—		393,999		57,940			40,417
Corporate and eliminations (1)	—		13,116		197,525		210,641		(117,120		)	(76,623		)
Net investment gains	—		—		161,922		161,922		161,922			105,249
Total	$	2,781,257	$	307,440	$	415,198	$	3,503,895	$	511,039		$	349,634

________

(1) Corporate and eliminations represent corporate revenues and expenses that are not allocated to business segments.

Identifiable assets by segment are as follows:

(In thousands)	June 30, 2015		December 31, 2014
Insurance-Domestic	$	16,105,299	$	16,036,513
Insurance-International	1,854,074		1,876,347
Reinsurance-Global	2,532,001		2,708,090
Corporate and eliminations	1,198,435		1,058,289
Total	$	21,689,809	$	21,679,239

22

Net premiums earned by major line of business are as follows:

	For the Three Months				For the Six Months
	Ended June 30,				Ended June 30,
(In thousands)	2015		2014		2015		2014
Insurance-Domestic:
Other liability	$	379,445	$	362,074	$	751,484	$	701,707
Workers’ compensation	325,123		270,212		617,740		533,244
Short-tail lines	229,167		215,506		456,893		420,272
Commercial automobile	138,511		127,102		273,468		251,470
Professional liability	87,407		66,851		177,610		138,559
Total	1,159,653		1,041,745		2,277,195		2,045,252
Insurance-International:
Other liability	21,929		22,956		46,794		42,331
Workers’ compensation	22,673		17,241		44,794		34,566
Short-tail lines	93,992		106,428		189,356		202,702
Commercial automobile	31,498		29,649		62,101		57,242
Professional liability	21,637		25,594		42,418		50,351
Total	191,729		201,868		385,463		387,192
Reinsurance-Global:
Casualty	98,448		124,550		211,264		250,153
Property	43,211		49,482		91,132		98,660
Total	141,659		174,032		302,396		348,813
Total	$	1,493,041	$	1,417,645	$	2,965,054	$	2,781,257

23

SAFE HARBOR STATEMENT

This is a “Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein, including statements related to our outlook for the industry and for our performance for the year 2015 and beyond, are based upon the Company’s historical performance and on current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. They are subject to various risks and uncertainties, including but not limited to: the cyclical nature of the property casualty industry; the impact of significant competition, including new alternative entrants to the industry; the long-tail and potentially volatile nature of the insurance and reinsurance business; product demand and pricing; claims development and the process of estimating reserves; investment risks, including those of our portfolio of fixed maturity securities and investments in equity securities, including investments in financial institutions, municipal bonds, mortgage-backed securities, loans receivable, investment funds, including real estate, merger arbitrage, energy related and private equity investments; the effects of emerging claim and coverage issues; the uncertain nature of damage theories and loss amounts; natural and man-made catastrophic losses, including as a result of terrorist activities; general economic and market activities, including inflation, interest rates, and volatility in the credit and capital markets; the impact of the conditions in the financial markets and the global economy, and the potential effect of legislative, regulatory, accounting or other initiatives taken in response to it, on our results and financial condition; foreign currency and political risks relating to our international operations; our ability to attract and retain key personnel and qualified employees; continued availability of capital and financing; the success of our new ventures or acquisitions and the availability of other opportunities; the availability of reinsurance; our retention under the Terrorism Risk Insurance Act of 2002, as amended ("TRIA"); the ability of our reinsurers to pay reinsurance recoverables owed to us; other legislative and regulatory developments, including those related to business practices in the insurance industry; credit risk related to our policyholders, independent agents and brokers; changes in the ratings assigned to us or our insurance company subsidiaries by rating agencies; the availability of dividends from our insurance company subsidiaries; potential difficulties with technology and/or data security; the effectiveness of our controls to ensure compliance with guidelines, policies and legal and regulatory standards; and other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission. These risks and uncertainties could cause our actual results for the year 2015 and beyond to differ materially from those expressed in any forward-looking statement we make. Any projections of growth in our revenues would not necessarily result in commensurate levels of earnings. Our future financial performance is dependent upon factors discussed in our Annual Report on Form 10-K, elsewhere in this Form 10-Q and our other SEC filings. Forward-looking statements speak only as of the date on which they are made. Except to the extent required by applicable laws, the Company does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

24

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Overview

W. R. Berkley Corporation is an insurance holding company that is among the largest commercial lines writers in the United States and operates in three business segments: Insurance-Domestic, Insurance-International and Reinsurance-Global. Our decentralized structure provides us with the flexibility to respond quickly and efficiently to local or specific market conditions and to pursue specialty business niches. It also allows us to be closer to our customers in order to better understand their individual needs and risk characteristics. While providing our business units with certain operating autonomy, our structure allows us to capitalize on the benefits of economies of scale through centralized capital, investment, reinsurance, enterprise risk management, and actuarial, financial and corporate legal staff support. The Company’s primary sources of revenues and earnings are its insurance operations and its investments.

An important part of our strategy is to form new operating units to capitalize on various business opportunities. Since 2006, the Company has formed 24 new operating units that are focused on important parts of the economy in the U.S., including healthcare, energy and agriculture, and on growing international markets, including Scandinavia, Australia, the Asia-Pacific region and South America.

The profitability of the Company’s insurance business is affected primarily by the adequacy of premium rates. The ultimate adequacy of premium rates is not known with certainty at the time an insurance policy is issued because premiums are determined before claims are reported. The ultimate adequacy of premium rates is affected mainly by the severity and frequency of claims, which are influenced by many factors, including natural and other disasters, regulatory measures and court decisions that define and change the extent of coverage and the effects of economic inflation on the amount of compensation for injuries or losses. General insurance prices are also influenced by available insurance capacity, i.e., the level of statutory capital and surplus employed in the industry, and the industry’s willingness to deploy that capital.

From 2005 through 2010, the property casualty insurance market was very competitive and insurance rates decreased across most business lines. Although prices have generally increased since the beginning of 2011, the current market is highly competitive and price levels for certain lines of business remain below the prices required for the Company to achieve its long-term return objectives. Part of the Company's strategy is to selectively reduce its business in areas where it believes returns are not adequate. Price changes are reflected in the Company’s results over time as premiums are earned.

The Company’s profitability is also affected by its investment income and investment gains. The Company’s invested assets, which are derived from its own capital and cash flow from its insurance business, are invested principally in fixed maturity securities. The return on fixed maturity securities is affected primarily by general interest rates, as well as the credit quality and duration of the securities. Returns available on fixed maturity investments are at historically low levels. The Company's investment income has been negatively impacted by the low fixed maturity investment returns, and will be further impacted if investment returns remain at this level.

The Company has increasingly invested in equity securities, merger arbitrage securities, investment funds (including energy related funds), private equity, loans and real estate related assets. The Company's investments in investment funds and its other alternative investments have experienced, and the Company expects to continue to experience, greater fluctuations in investment income.

Critical Accounting Estimates

The following presents a discussion of accounting policies and estimates relating to reserves for losses and loss expenses, assumed premiums and other-than-temporary impairments of investments. Management believes these policies and estimates are the most critical to its operations and require the most difficult, subjective and complex judgments.

Reserves for Losses and Loss Expenses.To recognize liabilities for unpaid losses, either known or unknown, insurers establish reserves, which is a balance sheet account representing estimates of future amounts needed to pay claims and related expenses with respect to insured events which have occurred. Estimates and assumptions relating to reserves for losses and loss expenses are based on complex and subjective judgments, often including the interplay of specific uncertainties with related accounting and actuarial measurements. Such estimates are also susceptible to change as significant periods of time may elapse between the occurrence of an insured loss, the report of the loss to the insurer, the ultimate determination of the cost of the loss and the insurer’s payment of that loss.

In general, when a claim is reported, claims personnel establish a “case reserve” for the estimated amount of the ultimate payment based upon known information about the claim at that time. The estimate represents an informed judgment based on general reserving practices and reflects the experience and knowledge of the claims personnel regarding the nature and value of the specific type of claim. Reserves are also established on an aggregate basis to provide for losses incurred but not reported (“IBNR”) to the insurer, potential inadequacy of case reserves and the estimated expenses of settling claims, including legal and

25

other fees and general expenses of administrating the claims adjustment process. Reserves are established based upon the then current legal interpretation of coverage provided.

In examining reserve adequacy, several factors are considered in estimating the ultimate economic value of losses. These factors include, among other things, historical data, legal developments, changes in social attitudes and economic conditions, including the effects of inflation. The actuarial process relies on the basic assumption that past experience, adjusted judgmentally for the effects of current developments and anticipated trends, is an appropriate basis for predicting future outcomes. Reserve amounts are based on management’s informed estimates and judgments using currently available data. As additional experience and other data become available and are reviewed, these estimates and judgments may be revised. This may result in reserve increases or decreases that would be reflected in our results in periods in which such estimates and assumptions are changed.

Reserves do not represent an exact calculation of liability. Rather, reserves represent an estimate of what management expects the ultimate settlement and claim administration will cost. While the methods for establishing reserves are well tested over time, some of the major assumptions about anticipated loss emergence patterns are subject to unanticipated fluctuation. These estimates, which generally involve actuarial projections, are based on management’s assessment of facts and circumstances then known, as well as estimates of trends in claims severity and frequency, judicial theories of liability and other factors, including the actions of third parties which are beyond the Company’s control. These variables are affected by external and internal events, such as inflation and economic volatility, judicial and litigation trends, reinsurance coverage, legislative changes and claim handling and reserving practices, which make it more difficult to accurately predict claim costs. The inherent uncertainties of estimating reserves are greater for certain types of liabilities where long periods of time elapse before a definitive determination of liability is made. Because setting reserves is inherently uncertain, the Company cannot provide assurance that its current reserves will prove adequate in light of subsequent events.

Loss reserves included in the Company’s financial statements represent management’s best estimates based upon an actuarially derived point estimate and other considerations. The Company uses a variety of actuarial techniques and methods to derive an actuarial point estimate for each operating unit. These methods include paid loss development, incurred loss development, paid and incurred Bornhuetter-Ferguson methods and frequency and severity methods. In circumstances where one actuarial method is considered more credible than the others, that method is used to set the point estimate. For example, the paid loss and incurred loss development methods rely on historical paid and incurred loss data. For new lines of business, where there is insufficient history of paid and incurred claims data, or in circumstances where there have been significant changes in claim practices, the paid and incurred loss development methods would be less credible than other actuarial methods. The actuarial point estimate may also be based on a judgmental weighting of estimates produced from each of the methods considered. Industry loss experience is used to supplement the Company’s own data in selecting “tail factors” and in areas where the Company’s own data is limited. The actuarial data is analyzed by line of business, coverage and accident or policy year, as appropriate, for each operating unit.

The establishment of the actuarially derived loss reserve point estimate also includes consideration of qualitative factors that may affect the ultimate losses. These qualitative considerations include, among others, the impact of re-underwriting initiatives, changes in the mix of business, changes in distribution sources and changes in policy terms and conditions. Examples of changes in terms and conditions that can have a significant impact on reserve levels are the use of aggregate policy limits, the expansion of coverage exclusions, whether or not defense costs are within policy limits, and changes in deductibles and attachment points.

The key assumptions used to arrive at the best estimate of loss reserves are the expected loss ratios, rate of loss cost inflation, and reported and paid loss emergence patterns. Expected loss ratios represent management’s expectation of losses at the time the business is written, before any actual claims experience has emerged. This expectation is a significant determinant of the estimate of loss reserves for recently written business where there is little paid or incurred loss data to consider. Expected loss ratios are generally derived from historical loss ratios adjusted for the impact of rate changes, loss cost trends and known changes in the type of risks underwritten. Expected loss ratios are estimated for each key line of business within each operating unit. Expected loss cost inflation is particularly important for the long-tail lines, such as excess casualty, and claims with a high medical component, such as workers’ compensation. Reported and paid loss emergence patterns are used to project current reported or paid loss amounts to their ultimate settlement value. Loss development factors are based on the historical emergence patterns of paid and incurred losses, and are derived from the Company’s own experience and industry data. The paid loss emergence pattern is also significant to excess and assumed workers’ compensation reserves because those reserves are discounted to their estimated present value based upon such estimated payout patterns. Management believes the estimates and assumptions it makes in the reserving process provide the best estimate of the ultimate cost of settling claims and related expenses with respect to insured events which have occurred; however, different assumptions and variables could lead to significantly different reserve estimates.

Loss frequency and severity are measures of loss activity that are considered in determining the key assumptions described in our discussion of loss and loss expense reserves, including expected loss ratios, rate of loss cost inflation and

26

reported and paid loss emergence patterns. Loss frequency is a measure of the number of claims per unit of insured exposure, and loss severity is a measure of the average size of claims. Factors affecting loss frequency include the effectiveness of loss controls and safety programs and changes in economic activity or weather patterns. Factors affecting loss severity include changes in policy limits, retentions, rate of inflation and judicial interpretations.

Another factor affecting estimates of loss frequency and severity is the loss reporting lag, which is the period of time between the occurrence of a loss and the date the loss is reported to the Company. The length of the loss reporting lag affects our ability to accurately predict loss frequency (loss frequencies are more predictable for lines with short reporting lags) as well as the amount of reserves needed for incurred but not reported losses (less IBNR is required for lines with short reporting lags). As a result, loss reserves for lines with short reporting lags are likely to have less variation from initial loss estimates. For lines with short reporting lags, which include commercial automobile, primary workers’ compensation, other liability (claims-made) and property business, the key assumption is the loss emergence pattern used to project ultimate loss estimates from known losses paid or reported to date. For lines of business with long reporting lags, which include other liability (occurrence), products liability, excess workers’ compensation and liability reinsurance, the key assumption is the expected loss ratio since there is often little paid or incurred loss data to consider. Historically, the Company has experienced less variation from its initial loss estimates for lines of businesses with short reporting lags than for lines of business with long reporting lags.

The key assumptions used in calculating the most recent estimate of the loss reserves are reviewed each quarter and adjusted, to the extent necessary, to reflect historical changes, current trends and other factors observed. If the actual level of loss frequency and severity are higher or lower than expected, the ultimate losses will be different than management’s estimate. The following table reflects the impact of changes (which could be favorable or unfavorable) in frequency and severity, relative to our assumptions, on our loss estimate for claims occurring in 2014:

(In thousands)	Frequency (+/-)
Severity (+/-)	1%		5%		10%
1%	$	70,266	$	211,497	$	388,037
5%	211,497		358,222		541,853
10%	388,037		541,853		734,123

Our net reserves for losses and loss expenses of approximately $9.2 billion as of June 30, 2015 relate to multiple accident years. Therefore, the impact of changes in frequency or severity for more than one accident year could be higher or lower than the amounts reflected above.

Approximately $1.4 billion, or 15.6%, of the Company’s net loss reserves as of June 30, 2015 relate to the Reinsurance-Global segment. There is a higher degree of uncertainty and greater variability regarding estimates of assumed loss reserves because those estimates are based, in part, upon information received from ceding companies. If information received from ceding companies is not timely or correct, the Company’s estimate of ultimate losses may not be accurate. Furthermore, due to delayed reporting of claim information by ceding companies, the claim settlement tail for assumed reinsurance is extended. Management considers the impact of delayed reporting in its selection of assumed loss development factors.

Information received from ceding companies is used to set initial expected loss ratios, to establish case reserves and to estimate reserves for incurred but not reported losses on assumed reinsurance business. This information, which is generally provided through reinsurance intermediaries, is gathered through the underwriting process and from periodic claim reports and other correspondence with ceding companies. The Company performs underwriting and claim audits of selected ceding companies to determine the accuracy and completeness of information provided to the Company. The information received from the ceding companies is supplemented by the Company’s own loss development experience with similar lines of business as well as industry loss trends and loss development benchmarks.

Following is a summary of the Company’s reserves for losses and loss expenses by business segment as of June 30, 2015 and December 31, 2014:

(In thousands)	2015		2014
Insurance-Domestic	$	6,991,634	$	6,767,374
Insurance-International	760,617		750,613
Reinsurance-Global	1,434,021		1,452,654
Net reserves for losses and loss expenses	9,186,272		8,970,641
Ceded reserves for losses and loss expenses	1,436,102		1,399,060
Gross reserves for losses and loss expenses	$	10,622,374	$	10,369,701

27

Following is a summary of the Company’s net reserves for losses and loss expenses by major line of business as of June 30, 2015 and December 31, 2014:

(In thousands)	Reported Case Reserves		Incurred But Not Reported		Total
June 30, 2015
Other liability	$	1,030,060	$	1,838,108	$	2,868,168
Workers’ compensation (1)	1,643,869		1,235,054		2,878,923
Professional liability	323,044		464,222		787,266
Commercial automobile	335,626		227,491		563,117
Short-tail lines	349,103		305,674		654,777
Total primary	3,681,702		4,070,549		7,752,251
Reinsurance (1)	625,335		808,686		1,434,021
Total	$	4,307,037	$	4,879,235	$	9,186,272
December 31, 2014
Other liability	$	1,035,442	$	1,785,598	$	2,821,040
Workers’ compensation (1)	1,603,310		1,201,117		2,804,427
Professional liability	308,887		453,557		762,444
Commercial automobile	319,700		203,085		522,785
Short-tail lines	330,010		277,281		607,291
Total primary	3,597,349		3,920,638		7,517,987
Reinsurance (1)	603,851		848,803		1,452,654
Total	$	4,201,200	$	4,769,441	$	8,970,641

___________

(1) Reserves for workers’ compensation and reinsurance are net of an aggregate net discount of $727 million and $746 million as of June 30, 2015 and December 31, 2014, respectively.

The Company evaluates reserves for losses and loss adjustment expenses on a quarterly basis. Changes in estimates of prior year losses are reported when such changes are made. The changes in prior year loss reserve estimates are generally the result of ongoing analysis of recent loss development trends. Original estimates are increased or decreased as additional information becomes known regarding individual claims and aggregate claim trends.

Certain of the Company's insurance and reinsurance contracts are retrospectively rated, whereby the Company collects more or less premiums based on the level of loss activity. For those contracts, changes in loss and loss adjustment expenses for prior years may be fully or partially offset by additional or return premiums.

Net prior year development (i.e, the sum of prior year reserve changes and prior year earned premiums changes) for the six months ended June 30, 2015 and 2014 are as follows:

(In thousands)	2015		2014
Net decrease in prior year loss reserves	$	27,478	$	43,225
Increase in prior year earned premiums	6,645		6,003
Net favorable prior year development	$	34,123	$	49,228

In 2015, favorable prior year development (net of additional and return premiums) was $34 million, and included $28 million for the Insurance-Domestic segment, $3 million for the Insurance-International segment and $3 million for the Reinsurance-Global segment. The favorable development for the Insurance-Domestic segment was primarily attributable to excess and surplus lines business and to accident years 2007 through 2010. The favorable development for excess and surplus lines reflects the continuation of favorable claim frequency trends (i.e., number of reported claims per unit of exposure).

In 2014, favorable reserve development (net of additional and return premiums) of $49 million was primarily related to the Insurance-Domestic segment and was also driven by excess and surplus lines casualty business.

28

Reserve Discount. The Company discounts its liabilities for certain workers’ compensation reserves. The amount of workers’ compensation reserves that were discounted was $2,064 million and $2,187 million at June 30, 2015 and December 31, 2014, respectively. The aggregate net discount for those reserves, after reflecting the effects of ceded reinsurance, was $727 million and $746 million at June 30, 2015 and December 31, 2014, respectively. At June 30, 2015, discount rates by year ranged from 2.0% to 6.5%, with a weighted average discount rate of 4.0%.

Substantially all of discounted workers’ compensation reserves (98% of total discounted reserves at June 30, 2015) are excess workers’ compensation reserves. In order to properly match loss expenses with income earned on investment securities supporting the liabilities, reserves for excess workers’ compensation business are discounted using risk-free discount rates determined by reference to the U.S. Treasury yield curve. These rates are determined annually based on the weighted average rate for the period. Once established, no adjustments are made to the discount rate for that period, and any increases or decreases in loss reserves in subsequent years are discounted at the same rate, without regard to when any such adjustments are recognized. The expected loss and loss expense payout patterns subject to discounting are derived from the Company’s loss payout experience.  

The Company also discounts reserves for certain other long-duration workers’ compensation reserves (representing approximately 2% of total discounted reserves at June 30, 2015), including reserves for quota share reinsurance and reserves related to losses regarding occupational lung disease.  These reserves are discounted at statutory rates permitted by the Department of Insurance of the State of Delaware.

Assumed Reinsurance Premiums. The Company estimates the amount of assumed reinsurance premiums that it will receive under treaty reinsurance agreements at the inception of the contracts. These premium estimates are revised as the actual amount of assumed premiums is reported to the Company by the ceding companies. As estimates of assumed premiums are made or revised, the related amount of earned premiums, commissions and incurred losses associated with those premiums are recorded. Estimated assumed premiums receivable were approximately $65 million at June 30, 2015 and $85 million at December 31, 2014. The assumed premium estimates are based upon terms set forth in reinsurance agreements, information received from ceding companies during the underwriting and negotiation of agreements, reports received from ceding companies and discussions and correspondence with reinsurance intermediaries. The Company also considers its own view of market conditions, economic trends and experience with similar lines of business. These premium estimates represent management’s best estimate of the ultimate amount of premiums to be received under its assumed reinsurance agreements.

Other-Than-Temporary Impairments (OTTI) of Investments. The cost of securities is adjusted where appropriate to include a provision for decline in value which is considered to be other-than-temporary. An other-than-temporary decline is considered to occur in investments where there has been a sustained reduction in fair value and where the Company does not expect the fair value to recover prior to the time of sale or maturity. Since equity securities do not have a contractual cash flow or maturity, the Company considers whether the price of an equity security is expected to recover within a reasonable period of time.

The Company classifies its fixed maturity securities and preferred stocks by credit rating, primarily based on ratings assigned by credit rating agencies. For purposes of classifying securities with different ratings, the Company uses the lower rating if two ratings were assigned and the middle rating if three ratings were assigned, unless the Company’s own analysis indicates that the lower rating is more appropriate. Securities that are not rated by a rating agency are evaluated and classified by the Company on a case-by-case basis.

Fixed Maturity Securities – For securities that we intend to sell or, more likely than not, would be required to sell, a decline in value below amortized cost is considered to be OTTI. The amount of OTTI is equal to the difference between amortized cost and fair value at the balance sheet date. For securities that we do not intend to sell or expect to be required to sell, a decline in value below amortized cost is considered to be an OTTI if we do not expect to recover the entire amortized cost basis of a security (i.e., the present value of cash flows expected to be collected is less than the amortized cost basis of the security).

The portion of the decline in value considered to be a credit loss (i.e., the difference between the present value of cash flows expected to be collected and the amortized cost basis of the security) is recognized in earnings. The portion of the decline in value not considered to be a credit loss (i.e., the difference in the present value of cash flows expected to be collected and the fair value of the security) is recognized in other comprehensive income.

Impairment assessments for structured securities, including mortgage-backed securities and asset-backed securities, collateralized debt obligations and corporate debt, are generally evaluated based on the performance of the underlying collateral under various economic and default scenarios that may involve subjective judgments and estimates by management. Modeling these securities involves various factors, such as projected default rates, the nature and realizable value of the collateral, if any,

29

the ability of the issuer to make scheduled payments, historical performance and other relevant economic and performance factors. If an OTTI determination is made, a discounted cash flow analysis is used to ascertain the amount of the credit impairment.

The following table provides a summary of fixed maturity securities in an unrealized loss position as of June 30, 2015:

($ in thousands)	Number of Securities	Aggregate Fair Value		Unrealized Loss
Unrealized loss less than 20% of amortized cost	451	$	3,522,678	$	62,691
Unrealized loss of 20% or greater of amortized cost:
Less than twelve months	1	342		169
Twelve months and longer	13	49,463		17,723
Total	465	$	3,572,483	$	80,583

A summary of the Company’s non-investment grade fixed maturity securities that were in an unrealized loss position at June 30, 2015 is presented in the table below:

($ in thousands)	Number of Securities	Aggregate Fair Value		Unrealized Loss
Mortgage-backed securities	7	$	24,150	$	1,605
Corporate	13	90,216		2,486
Total	20	$	114,366	$	4,091

The Company has evaluated its fixed maturity securities in an unrealized loss position and believes the unrealized loss is due primarily to temporary market and sector-related factors rather than to issuer-specific factors. None of these securities are delinquent or in default under financial covenants. Based on its assessment of these issuers, the Company expects them to continue to meet their contractual payment obligations as they become due and does not consider any of these securities to be OTTI.

Equity Securities – At June 30, 2015, there were eight equity securities in an unrealized loss position, with an aggregate fair value of $83.6 million and a gross unrealized loss of $15.0 million. Three of these equity securities are preferred stocks that are rated non-investment grade with an aggregate fair value of $3.6 million and a gross unrealized loss of $1.2 million. Based upon management’s view of the underlying value of these securities, the Company does not consider these equity securities to be OTTI.

Loans Receivable – The Company monitors the performance of its loans receivable, including current market conditions for each loan and the ability to collect principal and interest. For loans where the Company determines it is probable that the contractual terms will not be met, an analysis is performed and a valuation reserve is established, if necessary, with a charge to earnings. Loans receivable are reported net of a valuation reserve of $2 million and $3 million at June 30, 2015 and December 31, 2014, respectively.

The Company monitors the performance of its loans receivable and assesses the ability of each borrower to pay principal and interest based upon loan structure, underlying property values, cash flow and related financial and operating performance of the property and market conditions. Loans receivable with a potential for default are further assessed using discounted cash flow analysis and comparable cost and sales methodologies, if appropriate.

Fair Value Measurements.The Company’s fixed maturity and equity securities available for sale and its trading account securities are carried at fair value. Fair value is defined as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” The Company utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for similar assets in active markets. Level 3 inputs are unobservable inputs for the asset or liability. Unobservable inputs may only be used to measure fair value to the extent that observable inputs are not available. The fair value of the vast majority of the Company’s portfolio is based on observable data (other than quoted prices) and, accordingly, is classified as Level 2.

In classifying particular financial securities in the fair value hierarchy, the Company uses its judgment to determine whether the market for a security is active and whether significant pricing inputs are observable. The Company determines the existence of an active market by assessing whether transactions occur with sufficient frequency and volume to provide reliable

30

pricing information. The Company determines whether inputs are observable based on the use of such information by pricing services and external investment managers, the uninterrupted availability of such inputs, the need to make significant adjustments to such inputs and the volatility of such inputs over time. If the market for a security is determined to be inactive or if significant inputs used to price a security are determined to be unobservable, the security is categorized in Level 3 of the fair value hierarchy.

Because many fixed maturity securities do not trade on a daily basis, the Company utilizes pricing models and processes which may include benchmark curves, benchmarking of like securities, sector groupings and matrix pricing. Market inputs used to evaluate securities include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. Quoted prices are often unavailable for recently issued securities that are infrequently traded or securities that are only traded in private transactions. For publicly traded securities for which quoted prices are unavailable, the Company determines fair value based on independent broker quotations and other observable market data. For securities traded only in private negotiations, the Company determines fair value based primarily on the cost of such securities, which is adjusted to reflect prices of recent placements of securities of the same issuer, financial data, projections and business developments of the issuer and other relevant information.

The following is a summary of pricing sources for the Company's fixed maturity securities available for sale as of June 30, 2015:

(In thousands)	Carrying Value		Percent of Total
Pricing source:
Independent pricing services	$	12,030,267	97.9	%
Syndicate manager	93,214		0.7
Directly by the Company based on:
Observable data	170,869		1.4
Cash flow model	154		* -
Total	$	12,294,504	100.0	%

_______

*Less than 0.1%.

Independent pricing services – Substantially all of the Company’s fixed maturity securities available for sale were priced by independent pricing services (generally one U.S. pricing service plus additional pricing services with respect to a limited number of foreign securities held by the Company). The prices provided by the independent pricing services are generally based on observable market data in active markets (e.g., broker quotes and prices observed for comparable securities). The determination of whether markets are active or inactive is based upon the volume and level of activity for a particular asset class. The Company reviews the prices provided by pricing services for reasonableness based upon current trading levels for similar securities. If the prices appear unusual to the Company, they are re-examined and the value is either confirmed or revised. In addition, the Company periodically performs independent price tests of a sample of securities to ensure proper valuation and to verify our understanding of how securities are priced. As of June 30, 2015, the Company did not make any adjustments to the prices provided by the pricing services. Based upon the Company’s review of the methodologies used by the independent pricing services, these securities were classified as Level 2.

Syndicate manager – The Company has a 15% participation in a Lloyd’s syndicate, and the Company’s share of the securities owned by the syndicate is priced by the syndicate’s manager. The majority of the securities are liquid, short duration fixed maturity securities. The Company reviews the syndicate manager’s pricing methodology and audited financial statements and holds discussions with the syndicate manager as necessary to confirm its understanding and agreement with security prices. Based upon the Company’s review of the methodologies used by the syndicate manager, these securities were classified as Level 2.

Observable data – If independent pricing is not available, the Company prices the securities directly. Prices are based on observable market data where available, including current trading levels for similar securities and non-binding quotations from brokers. The Company generally requests two or more quotes. If more than one quote is received, the Company sets a price within the range of quotes received based on its assessment of the credibility of the quote and its own evaluation of the security. The Company generally does not adjust quotes obtained from brokers. Since these securities were priced based on observable data, they were classified as Level 2.

Cash flow model – If the above methodologies are not available, the Company prices securities using a discounted cash flow model based upon assumptions as to prevailing credit spreads, interest rates and interest rate volatility, time to maturity

31

and subordination levels. Discount rates are adjusted to reflect illiquidity where appropriate. These securities were classified as Level 3.

32

Results of Operations for the Six Months Ended June, 2015 and 2014

Business Segment Results

Following is a summary of gross and net premiums written, net premiums earned, loss ratios (losses and loss expenses incurred expressed as a percentage of premiums earned), expense ratios (underwriting expenses expressed as a percentage of premiums earned) and United States Generally Accepted Accounting Principles (“GAAP”) combined ratios (sum of loss ratio and expense ratio) for each of our business segments for the six months ended June 30, 2015 and 2014. The GAAP combined ratio represents a measure of underwriting profitability, excluding investment income. A GAAP combined ratio in excess of 100 indicates an underwriting loss; a number below 100 indicates an underwriting profit.

($ in thousands)	2015			2014
Insurance-Domestic:
Gross premiums written	$	2,831,099		$	2,694,566
Net premiums written	2,396,219			2,250,224
Net premiums earned	2,277,195			2,045,252
Loss ratio	61.6		%	60.4		%
Expense ratio	31.4		%	32.4		%
GAAP combined ratio	93.0		%	92.8		%
Insurance-International:
Gross premiums written	$	520,258		$	542,386
Net premiums written	429,998			448,443
Net premiums earned	385,463			387,192
Loss ratio	58.7		%	60.0		%
Expense ratio	40.3		%	39.4		%
GAAP combined ratio	99.0		%	99.4		%
Reinsurance-Global:
Gross premiums written	$	311,846		$	340,716
Net premiums written	293,110			316,989
Net premiums earned	302,396			348,813
Loss ratio	58.8		%	64.0		%
Expense ratio	37.1		%	32.4		%
GAAP combined ratio	95.9		%	96.4		%
Consolidated:
Gross premiums written	$	3,663,203		$	3,577,668
Net premiums written	3,119,327			3,015,656
Net premiums earned	2,965,054			2,781,257
Loss ratio	60.9		%	60.8		%
Expense ratio	33.1		%	33.4		%
GAAP combined ratio	94.0		%	94.2		%

33

Net Income to Common Stockholders. The following table presents the Company’s net income to common stockholders and net income per diluted share for the six months ended June 30, 2015 and 2014:

(In thousands, except per share data)	2015		2014
Net income to common stockholders	$	241,342	$	349,634
Weighted average diluted shares	131,228		134,323
Net income per diluted share	$	1.84	$	2.60

The Company reported net income of $241 million in 2015 compared to $350 million in 2014. The 31% decrease in net income was primarily due to a decrease in after-tax net investment gains of $75 million and a decrease in after-tax net investment income of $38 million. The number of weighted average diluted shares decreased as a result of the Company’s repurchases of its common stock in 2015 and 2014.

Premiums. Gross premiums written were $3,663 million in 2015, an increase of 2% from $3,578 million in 2014. The growth was due primarily to rate increases. Approximately 79.2% of policies expiring in 2015 were renewed, compared with a 79.3% renewal retention rate for policies expiring in 2014.

Average renewal premium rates (adjusted for change in exposures) increased 1.9% in 2015. However, overall loss costs are also increasing, and current market price levels for certain lines of business remain below the prices required for the Company to achieve its long-term return objectives.

A summary of gross premiums written in 2015 compared with 2014 by line of business within each business segment follows:

• Insurance-Domestic gross premiums increased 5% to $2,831 million in 2015 from $2,695 million in 2014. Gross premiums increased $47 million (6%) for workers' compensation, $41 million (20%) for professional liability, $24 million (3%) for other liability, $19 million (3%), for short-tail lines and $5 million (2%) for commercial auto.

• Insurance-International gross premiums decreased 4% to $520 million in 2015 from $542 million in 2014. Gross premiums increased $16 million (29%) for other liability, $11 million (31%) for workers' compensation and $4 million (7%) for commercial auto. Insurance-International gross premiums decreased $49 million (15%) for short-tail lines and $4 million (8%) for professional liability. In local currency terms, international gross premiums increased 6% in 2015.

• Reinsurance-Global gross premiums decreased 9% to $312 million in 2015 from $341 million in 2014, due to increasingly competitive conditions. Gross premiums written decreased $20 million (9%) for casualty lines and $9 million (8%) for property lines.

Net premiums written were $3,119 million in 2015, an increase of 3% from $3,016 million in 2014. Ceded reinsurance premiums as a percentage of gross written premiums were 15% in 2015 and 16% in 2014.

Premiums earned increased 7% to $2,965 million in 2015 from $2,781 million in 2014. Insurance premiums (including the impact of rate changes) are generally earned evenly over the policy term, and accordingly recent rate increases will be earned over the upcoming quarters. Premiums earned in 2015 are related to business written during both 2015 and 2014. Audit premiums were $73 million in 2015 compared with $60 million in 2014.

34

Net Investment Income. Following is a summary of net investment income for the six months ended June 30, 2015 and 2014:

	Amount						Average Annualized Yield
(In thousands)	2015			2014			2015		2014
Fixed maturity securities, including cash and cash equivalents and loans receivable	$	213,159		$	214,658		3.2	%	3.4	%
Investment funds	27,912			76,155			4.6		15.2
Arbitrage trading account	8,862			12,461			2.9		4.6
Real estate	4,881			6,165			1.3		1.8
Equity securities available for sale	2,404			4,049			2.9		4.0
Gross investment income	257,218			313,488			3.2		4.1
Investment expenses	(5,396		)	(6,048		)
Total	$	251,822		$	307,440		3.2		4.0

Net investment income decreased 18% to $252 million in 2015 from $307 million in 2014 due primarily to a $48 million decrease in income from investment funds. The decrease in investment income from investment funds (reported on a one-quarter lag) was primarily due to losses from energy funds, partially offset by higher earnings from real estate funds. Average invested assets, at cost (including cash and cash equivalents) were $15.9 billion in 2015 and $15.2 billion in 2014.

Insurance Service Fees. The Company earns fees from an insurance distribution business and as a servicing carrier of workers' compensation assigned risk plans for certain states. Service fees increased to $72 million in 2015 from $56 million in 2014 as a result of the acquisition of a specialty property and casualty insurance distribution company in late 2014.

Net Realized Gains on Investment Sales. The Company buys and sells securities on a regular basis in order to maximize its total return on investments. Decisions to sell securities are based on management’s view of the underlying fundamentals of specific securities as well as management’s expectations regarding interest rates, credit spreads, currency values and general economic conditions. Net realized gains on investment sales were $47 million in 2015 compared with $162 million in 2014. The realized gains in 2014 included a gain of $86 million from the sale of an investment in a commercial real estate investment fund.

Revenues from Wholly-Owned Investees. Revenues from wholly-owned investees were derived from aviation-related businesses that provide services to aviation markets, including (i) the distribution, manufacturing, repair and overhaul of aircraft parts and components, (ii) the sale of new and used aircraft, and (iii) avionics, fuel, maintenance, storage and charter services. Revenues from wholly-owned investees was $198 million in 2015 and $197 million in 2014.

Losses and Loss Expenses. Losses and loss expenses increased to $1,807 million in 2015 from $1,690 million in 2014. The consolidated loss ratio was 60.9% in 2015 and 60.8% in 2014. Catastrophe losses, net of reinsurance recoveries and reinstatement premiums, were $39 million in 2015 and $54 million in 2014. Favorable prior year reserve development (net of premium offsets) was $34 million in 2015 compared with $49 million in 2014, a difference of 0.6 loss ratio point. The loss ratio excluding catastrophe losses and prior year reserve development increased 0.1 points to 60.7% in 2015 from 60.6% in 2014. A summary of loss ratios in 2015 compared with 2014 by business segment follows:

• Insurance-Domestic - The loss ratio of 61.6% in 2015 was 1.2 points higher than the loss ratio of 60.4% in 2014. Catastrophe losses were $37 million in 2015 compared with $51 million in 2014. Favorable prior year reserve development was $29 million in 2015 compared with $54 million in 2014, a difference of 1.4 loss ratio points. The loss ratio excluding catastrophe losses and prior year reserve development increased 0.7 points to 61.3% in 2015 from 60.6% in 2014.

• Insurance-International - The loss ratio of 58.7% in 2015 was 1.3 points lower than the loss ratio of 60.0% in 2014. Catastrophe losses were $1 million in 2015 compared with $2 million in 2014. Favorable prior year reserve was $2 million in 2015 compared with unfavorable prior year development of $5 million in 2014, a difference of 2.0 loss ratio points. The loss ratio excluding catastrophe losses and prior year reserve development increased 1.0 points to 59.3% in 2015 from 58.3% in 2014.

• Reinsurance-Global - The loss ratio of 58.8% in 2015 was 5.2 points lower than the loss ratio of 64.0% in 2014. Favorable prior year development was $3 million 2015 compared with no change in 2014, a difference of 1.0 loss ratio points. The loss ratio excluding catastrophe losses and prior year reserve development decreased 4.5 points to 59.1% in 2015 from 63.6% in 2014.

35

Other Operating Costs and Expenses. Following is a summary of other operating costs and expenses:

(In thousands)	2015		2014
Underwriting expenses	$	982,294	$	928,434
Service expenses	63,458		45,864
Net foreign currency loss	2,509		1,659
Other costs and expenses	76,367		73,359
Total	$	1,124,628	$	1,049,316

Underwriting expenses are comprised of commissions paid to agents and brokers, premium taxes and other assessments and internal underwriting costs. Underwriting expenses increased 6% compared with an increase in net premiums earned of 7%. The expense ratio (underwriting expenses expressed as a percentage of premiums earned) was 33.1% in 2015, down from 33.4% in 2014, primarily due to higher earned premiums and to the impact of expense reduction initiatives.

Service expenses, which represent the costs associated with the fee-based businesses, increased to $63 million in 2015 from $46 million in 2014 as a result of the acquisition of a specialty property and casualty insurance distribution company in late 2014.

Foreign currency gains and losses result from transactions denominated in a currency other than a company's operating functional currency. Net foreign currency losses were $3 million in 2015 compared to a net foreign currency loss of $2 million in 2014.

Other costs and expenses represent general and administrative expenses of the parent company and other expenses not allocated to business segments, including the cost of certain long-term incentive plans. Other costs and expenses increased to $76 million in 2015 from $73 million in 2014 due primarily to higher compensation costs, including costs relating to long-term incentive plans.

Expenses from Wholly-Owned Investees. Expenses from wholly-owned investees represent costs associated with aviation-related businesses that include (i) cost of goods sold related to aircraft and products sold and services provided, and (ii) general and administrative expenses. Expenses from wholly-owned investees were $188 million in 2015 compared to $193 million in 2014.

Interest Expense. Interest expense was $68 million in 2015 compared with $61 million in 2014. In August 2014, the Company issued $350 million of 4.75% senior notes due 2044. A portion of the proceeds were used to repay $200 million of 5.60% senior notes at maturity on May 15, 2015.

Income Taxes. The effective income tax rate was 30% in 2015 compared to 32% in 2014. The effective income tax rate differs from the federal income tax rate of 35% primarily because interest on the Company's state and local bonds is taxed at a lower rate. The decrease in the effective tax rate in 2015 compared with 2014 is due to lower income from investment funds and investment gains, which are generally taxed at the 35% federal income tax rate.

The Company has not provided U.S. deferred income taxes on the undistributed earnings of approximately $55 million of its non-U.S. subsidiaries since these earnings are intended to be permanently reinvested in the non-U.S. subsidiaries. However, in the future, if such earnings were distributed to the Company, taxes of approximately $2.6 million, assuming all tax credits are realized, would be payable on such undistributed earnings and would be reflected in the tax provision for the year in which these earnings are no longer intended to be permanently reinvested in the foreign subsidiary.

36

Results of Operations for the Three Months Ended June, 2015 and 2014

Business Segment Results

Following is a summary of gross and net premiums written, net premiums earned, loss ratios (losses and loss expenses incurred expressed as a percentage of premiums earned), expense ratios (underwriting expenses expressed as a percentage of premiums earned) and United States Generally Accepted Accounting Principles (“GAAP”) combined ratios (sum of loss ratio and expense ratio) for each of our business segments for the three months ended June 30, 2015 and 2014. The GAAP combined ratio represents a measure of underwriting profitability, excluding investment income. A GAAP combined ratio in excess of 100 indicates an underwriting loss; a number below 100 indicates an underwriting profit.

($ in thousands)	2015			2014
Insurance-Domestic:
Gross premiums written	$	1,421,922		$	1,351,624
Net premiums written	1,202,588			1,123,843
Net premiums earned	1,159,653			1,041,745
Loss ratio	61.6		%	60.9		%
Expense ratio	31.5		%	32.3		%
GAAP combined ratio	93.1		%	93.2		%
Insurance-International:
Gross premiums written	$	237,032		$	265,200
Net premiums written	198,490			222,622
Net premiums earned	191,729			201,868
Loss ratio	59.5		%	60.7		%
Expense ratio	41.6		%	38.8		%
GAAP combined ratio	101.1		%	99.5		%
Reinsurance-Global:
Gross premiums written	$	152,444		$	155,577
Net premiums written	142,847			143,311
Net premiums earned	141,659			174,032
Loss ratio	54.9		%	63.4		%
Expense ratio	38.7		%	31.9		%
GAAP combined ratio	93.6		%	95.3		%
Consolidated:
Gross premiums written	$	1,811,398		$	1,772,401
Net premiums written	1,543,925			1,489,776
Net premiums earned	1,493,041			1,417,645
Loss ratio	60.7		%	61.2		%
Expense ratio	33.5		%	33.2		%
GAAP combined ratio	94.2		%	94.4		%

37

Net Income to Common Stockholders. The following table presents the Company’s net income to common stockholders and net income per diluted share for the three months ended June 30, 2015 and 2014:

(In thousands, except per share data)	2015		2014
Net income to common stockholders	$	123,035	$	179,961
Weighted average diluted shares	129,988		133,304
Net income per diluted share	$	0.95	$	1.35

The Company reported net income of $123 million in 2015 compared to $180 million in 2014. The 32% decrease in net income was primarily due to decreases in after-tax net investment gains of $53 million and in after-tax net investment income of $9 million. The number of weighted average diluted shares decreased as a result of the Company’s repurchases of its common stock in 2015 and 2014.

Premiums. Gross premiums written were $1,811 million in 2015, an increase of 2% from $1,772 million in 2014. The growth was due primarily to rate increases. Average renewal premium rates (adjusted for change in exposures) increased 1.1% in 2015. However, overall loss costs are also increasing, and current market price levels for certain lines of business remain below the prices required for the Company to achieve its long-term return objectives.

A summary of gross premiums written in 2015 compared with 2014 by line of business within each business segment follows:

• Insurance-Domestic gross premiums increased 5% to $1,422 million in 2015 from $1,352 million in 2014. Gross premiums increased $43 million (12%) for workers' compensation, $18 million (16%) for professional liability, $5 million (1%) for other liability, $3 million (1%) for short-tail lines and $1 million (1%) for commercial auto.

• Insurance-International gross premiums decreased 11% to $237 million in 2015 from $265 million in 2014. Gross premiums increased $6 million (33%) for workers' compensation, $5 million (20%) for other liability and $2 million (7%) for commercial auto. Insurance-International gross premiums decreased $40 million (25%) for short-tail lines and $1 million (3%) for professional liability. In local currency terms, international gross premiums decreased 2% in 2015.

• Reinsurance-Global gross premiums decreased 2% to $152 million in 2015 from $156 million in 2014, due to increasingly competitive conditions. Gross premiums written decreased $7 million (6%) for casualty lines and increased $3 million (6%) for property lines.

Net premiums written were $1,544 million in 2015, an increase of 4% from $1,490 million in 2014. Ceded reinsurance premiums as a percentage of gross written premiums were 15% in 2015 and 16% in 2014.

Premiums earned increased 5% to $1,493 million in 2015 from $1,418 million in 2014. Insurance premiums (including the impact of rate changes) are generally earned evenly over the policy term, and accordingly recent rate increases will be earned over the upcoming quarters. Premiums earned in 2015 are related to business written during both 2015 and 2014. Audit premiums were $36 million in 2015 compared with $29 million in 2014.

38

Net Investment Income. Following is a summary of net investment income for the three months ended June 30, 2015 and 2014:

	Amount						Average Annualized Yield
(In thousands)	2015			2014			2015		2014
Fixed maturity securities, including cash and cash equivalents and loans receivable	$	105,030		$	107,760		3.2	%	3.3	%
Investment funds	21,851			22,356			7.3		9.1
Arbitrage trading account	(117		)	6,942			(0.1	)	4.6
Real estate	2,114			3,063			1.1		1.9
Equity securities available for sale	1,224			2,103			3.0		4.4
Gross investment income	130,102			142,224			3.3		3.7
Investment expenses	(2,519		)	(3,495		)
Total	$	127,583		$	138,729		3.2		3.6

Net investment income decreased 8% to $128 million in 2015 from $139 million in 2014 due primarily to a $7 million decrease in income from the arbitrage trading account. Average invested assets, at cost (including cash and cash equivalents) were $15.9 billion in 2015 and $15.3 billion in 2014.

Insurance Service Fees. The Company earns fees from an insurance distribution business and as a servicing carrier of workers' compensation assigned risk plans for certain states. Service fees increased to $36 million in 2015 from $27 million in 2014 as a result of the acquisition of a specialty property and casualty insurance distribution company in late 2014.

Net Realized Gains on Investment Sales. The Company buys and sells securities on a regular basis in order to maximize its total return on investments. Decisions to sell securities are based on management’s view of the underlying fundamentals of specific securities as well as management’s expectations regarding interest rates, credit spreads, currency values and general economic conditions. Net realized gains on investment sales were $28 million in 2015 compared with $109 million in 2014. The realized gains in 2014 included a gain of $86 million from the sale of an investment in a commercial real estate investment fund.

Revenues from Wholly-Owned Investees. Revenues from wholly-owned investees were derived from aviation-related businesses that provide services to aviation markets, including (i) the distribution, manufacturing, repair and overhaul of aircraft parts and components, (ii) the sale of new and used aircraft, and (iii) avionics, fuel, maintenance, storage and charter services. Revenues from wholly-owned investees was $106 million in 2015 and $104 million in 2014.

Losses and Loss Expenses. Losses and loss expenses increased to $906 million in 2015 from $868 million in 2014. The consolidated loss ratio was 60.7% in 2015 and 61.2% in 2014. Catastrophe losses, net of reinsurance recoveries and reinstatement premiums, were $24 million in 2015 and $40 million in 2014. Favorable prior year reserve development (net of premium offsets) was $22 million in 2015 compared with $24 million in 2014, a difference of 0.2 loss ratio point. The loss ratio excluding catastrophe losses and prior year reserve development increased 0.4 point to 60.5% in 2015 from 60.1% in 2014. A summary of loss ratios in 2015 compared with 2014 by business segment follows:

• Insurance-Domestic - The loss ratio of 61.6% in 2015 was 0.7 points higher than the loss ratio of 60.9% in 2014. Catastrophe losses were $22 million in 2015 compared with $38 million in 2014. Favorable prior year reserve development was $17 million in 2015 compared with $26 million in 2014, a difference of 1.1 loss ratio points. The loss ratio excluding catastrophe losses and prior year reserve development increased 1.4 points to 61.2% in 2015 from 59.8% in 2014.

• Insurance-International - The loss ratio of 59.5% in 2015 was 1.2 points lower than the loss ratio of 60.7% in 2014. There were no catastrophe losses in 2015 compared with $1 million in 2014. Favorable prior year reserve development was $3 million in 2015 compared to unfavorable prior year reserve development of $3 million in 2014, a difference of 2.6 loss ratio points. The loss ratio excluding catastrophe losses and prior year reserve development increased 1.3 points to 60.6% in 2015 from 59.3% in 2014.

• Reinsurance-Global - The loss ratio of 54.9% in 2015 was 8.5 points lower than the loss ratio of 63.4% in 2014. Prior year reserves decreased $2 million in 2015 compared with no change in 2014, a difference of 1.7 loss ratio points. The loss ratio excluding catastrophe losses and prior year reserve development decreased 7.4 points to 55.4% in 2015 from 62.8% in 2014.

39

Other Operating Costs and Expenses. Following is a summary of other operating costs and expenses:

(In thousands)	2015		2014
Underwriting expenses	$	500,234	$	470,296
Service expenses	32,374		23,607
Net foreign currency loss	3,076		1,993
Other costs and expenses	37,898		38,254
Total	$	573,582	$	534,150

Underwriting expenses are comprised of commissions paid to agents and brokers, premium taxes and other assessments and internal underwriting costs. Underwriting expenses increased 6% compared with an increase in net premiums earned of 5%. The expense ratio (underwriting expenses expressed as a percentage of premiums earned) was 33.5% in 2015, up from 33.2% in 2014, primarily due to an increase in commission expenses for certain reinsurance business.

Service expenses, which represent the costs associated with the fee-based businesses, increased to $32 million in 2015 from $24 million in 2014 as a result of the acquisition of a specialty property and casualty insurance distribution company in late 2014.

Foreign currency gains and losses result from transactions denominated in a currency other than a company's operating functional currency. Net foreign currency losses were $3 million in 2015 compared to a net foreign currency loss of $2 million in 2014.

Other costs and expenses represent general and administrative expenses of the parent company and other expenses not allocated to business segments, including the cost of certain long-term incentive plans. Other costs and expenses were $38 million in 2015 and 2014.

Expenses from Wholly-Owned Investees. Expenses from wholly-owned investees represent costs associated with aviation-related businesses that include (i) cost of goods sold related to aircraft and products sold and services provided, and (ii) general and administrative expenses. Expenses from wholly-owned investees were $99 million in 2015 compared to $101 million in 2014.

Interest Expense. Interest expense was $33 million in 2015 compared with $30 million in 2014. In August 2014, the Company issued $350 million of 4.75% senior notes due 2044. A portion of the proceeds were used to repay $200 million of 5.60% senior notes at maturity on May 15, 2015.

Income Taxes. The effective income tax rate was 31% in 2015 compared to 32% in 2014. The effective income tax rate differs from the federal income tax rate of 35% primarily because interest on the Company's state and local bonds is taxed at a lower rate. The decrease in the effective tax rate in 2015 compared with 2014 is due to lower income from investment funds and investment gains, which are generally taxed at the 35% federal income tax rate.

40

Investments

As part of its investment strategy, the Company establishes a level of cash and highly liquid short-term and intermediate-term securities that, combined with expected cash flow, it believes is adequate to meet its payment obligations. Due to the historically low fixed maturity investment returns, the Company has increasingly invested in equity securities, merger arbitrage securities, investment funds, private equity, loans and real estate related assets. The Company's investments in investment funds and its other alternative investments have experienced, and the Company expects to continue to experience, greater fluctuations in investment income.

The Company also attempts to maintain an appropriate relationship between the average duration of the investment portfolio and the approximate duration of its liabilities (i.e., policy claims and debt obligations). The average duration of the fixed maturity portfolio was 3.3 years at June 30, 2015 and 3.2 years at December 31, 2014. The Company’s fixed maturity investment portfolio and investment-related assets as of June 30, 2015 were as follows:

($ in thousands)	Carrying Value		Percent of Total
Fixed maturity securities:
U.S. government and government agencies	$	715,367	4.4	%
State and municipal:
Special revenue	2,450,825		15.0
State general obligation	691,871		4.2
Pre-refunded (1)	473,708		2.9
Corporate backed	432,424		2.6
Local general obligation	325,089		2.0
Total state and municipal	4,373,917		26.8
Mortgage-backed securities:
Agency	918,826		5.6
Residential-Prime	138,329		0.9
Commercial	69,338		0.4
Residential-Alt A	64,031		0.4
Total mortgage-backed securities	1,190,524		7.3
Corporate:
Industrial	1,866,845		11.4
Asset-backed	1,652,155		10.1
Financial	1,323,007		8.1
Utilities	190,482		1.2
Other	116,363		0.7
Total corporate	5,148,852		31.5
Foreign government and foreign government agencies	967,150		5.9
Total fixed maturity securities	12,395,810		75.8
Equity securities:
Preferred stocks	94,322		0.6
Common stocks	59,191		0.4
Total equity securities	153,513		1.0
Investment funds	1,123,829		6.9
Arbitrage trading account	830,212		5.1
Real estate	820,257		5.0
Cash and cash equivalents	756,368		4.6
Loans receivable	259,411		1.6
Total investments	$	16,339,400	100.0	%

(1) Pre-refunded securities are securities for which an escrow account has been established to fund the remaining payments of principal and interest through maturity. Such escrow accounts are funded almost exclusively with U.S. Treasury and U.S. government agency securities.

41

Fixed Maturity Securities. The Company’s investment policy with respect to fixed maturity securities is generally to purchase instruments with the expectation of holding them to their maturity. However, management of the available for sale portfolio is considered necessary to maintain an approximate matching of assets and liabilities as well as to adjust the portfolio as a result of changes in financial market conditions and tax considerations.

The Company’s philosophy related to holding or selling fixed maturity securities is based on its objective of maximizing total return. The key factors that management considers in its investment decisions as to whether to hold or sell fixed maturity securities are its view of the underlying fundamentals of specific securities as well as its expectations regarding interest rates, credit spreads and currency values. In a period in which management expects interest rates to rise, the Company may sell longer duration securities in order to mitigate the impact of an interest rate rise on the fair value of the portfolio. Similarly, in a period in which management expects credit spreads to widen, the Company may sell lower quality securities, and in a period in which management expects certain foreign currencies to decline in value, the Company may sell securities denominated in those foreign currencies. The sale of fixed maturity securities in order to achieve the objective of maximizing total return may result in realized gains; however, there is no reason to expect these gains to continue in future periods.

At June 30, 2015, investments in foreign government fixed maturity securities (which are generally held by the Company's foreign operations) were as follows:

(In thousands)	Carrying Value
Australia	$	244,374
United Kingdom	188,127
Canada	162,441
Argentina	160,430
Germany	59,330
Brazil	54,477
Supranational (1)	48,312
Norway	32,770
Singapore	6,316
Colombia	6,830
Uruguay	$	3,743
Total	$	967,150

________

(1) Supranational represents investments in the North American Development Bank, European Investment Bank and Inter-American Development Bank.

Equity Securities. Equity securities primarily represent investments in high-dividend yielding common and preferred stocks issued by large market capitalization companies.

Investment Funds. At June 30, 2015, the carrying value of investment funds was $1,124 million, including investments in real estate funds of $507 million, energy funds of $114 million and arbitrage funds of $73 million. Investment funds are primarily reported on a one-quarter lag.

Real Estate. Real estate is directly owned property held for investment. At June 30, 2015, real estate properties in operation included a long-term ground lease in Washington D.C. and an office building in West Palm Beach, Florida. In addition, there are three properties under development: an office building in London, a mixed-use project in Washington D.C. and an office complex in New York City. The Company expects to fund further development costs for these projects with a combination of its own funds and external financing.

Arbitrage Trading Account. The arbitrage trading account is comprised of direct investments in arbitrage securities. Merger arbitrage is the business of investing in the securities of publicly held companies that are the targets in announced tender offers and mergers.

Loans Receivable. Loans receivable, which are carried at amortized cost, had an aggregate cost of $259 million and an aggregate fair value of $262 million at June 30, 2015. The amortized cost of loans receivable is net of a valuation allowance of $2 million as of June 30, 2015. Loans receivable include real estate loans of $175 million that are secured by commercial real estate located primarily in Arizona, Maryland, New York and Texas. Real estate loans receivable generally earn interest at floating LIBOR-based interest rates and have maturities (inclusive of extension options) through August 2025. Loans

42

receivable include commercial loans of $84 million that are secured by business assets and have fixed interest rates with varying maturities not exceeding 10 years.

Market Risk. The fair value of the Company’s investments is subject to risks of fluctuations in credit quality and interest rates. The Company uses various models and stress test scenarios to monitor and manage interest rate risk. The Company attempts to manage its interest rate risk by maintaining an appropriate relationship between the average duration of the investment portfolio and the approximate duration of its liabilities (i.e., policy claims and debt obligations). The average duration for the fixed maturity portfolio was 3.3 years at June 30, 2015 and 3.2 years at December 31, 2014. In addition, the fair value of the Company’s international investments is subject to currency risk. The Company attempts to manage its currency risk by matching its foreign currency assets and liabilities where considered appropriate.

Liquidity and Capital Resources

Cash Flow. Cash flow provided from operating activities increased to $333 million in the first six months of 2015 from $255 million in the comparable period in 2014, primarily due to the timing of tax payments, premium collections and expense payments.

The Company's insurance subsidiaries' principal sources of cash are premiums, investment income, service fees and proceeds from sales and maturities of portfolio investments. The principal uses of cash are payments for claims, taxes, operating expenses and dividends. The Company expects its insurance subsidiaries to fund the payment of losses with cash received from premiums, investment income and fees. The Company targets an average duration for its investment portfolio that is within one year of the average duration of its liabilities so that portions of its investment portfolio mature throughout the claim cycle and are available for the payment of claims if necessary. In the event operating cash flow and proceeds from maturities and prepayments of fixed income securities are not sufficient to fund claim payments and other cash requirements, the remainder of the Company's cash and investments is available to pay claims and other obligations as they become due. The Company's investment portfolio is highly liquid, with approximately 81% invested in cash, cash equivalents and marketable fixed maturity securities as of June 30, 2015. If the sale of fixed maturity securities were to become necessary, a realized gain or loss equal to the difference between the cost and sales price of securities sold would be recognized.

Debt. At June 30, 2015, the Company had senior notes, subordinated debentures and other debt outstanding with a carrying value of $2,184 million and a face amount of $2,208 million. The maturities of the outstanding debt are $2 million in 2015, $37 million in 2016, $40 million in 2017, $450 million in 2019, $300 million in 2020, $427 million in 2022, $2 million in 2029, $250 million in 2037, $350 million in 2044 and $350 million in 2053.

In August 2014, the Company issued $350 million of 4.75% senior notes due 2044. A portion of the proceeds was used to repay $200 million of 5.60% senior notes at maturity on May 15, 2015. In addition, in May 2015 the Company repaid $71 million of debt that it had assumed in 2014 in conjunction with the purchase of an office building in West Palm Beach, Florida.

Equity. At June 30, 2015, total common stockholders’ equity was $4.5 billion, common shares outstanding were approximately 122 million and stockholders’ equity per outstanding share was $36.76. During the six months ended June 30, 2015, the Company repurchased 4,395,912 shares of its common stock for $218 million.

In June 2015, the Board of Directors increased the Company's share repurchase authorization to 10 million shares of common stock, of which 9,353,091 remain available as of June 30, 2015. Repurchases may be made by the Company from time to time at prevailing prices in the open market in privately negotiated transactions, subject to market conditions and other factors.

Total Capital.Total capitalization (equity, debt and subordinated debentures) was $6.7 billion at June 30, 2015. The percentage of the Company’s capital attributable to debt and subordinated debentures was 33% at June 30, 2015 and 35% at December 31, 2014.

43

Item 3. Quantitative and Qualitative Disclosure About Market Risk

Reference is made to the information under “Investments - Market Risk” under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Form 10-Q.

Item 4. Controls and Procedures

Disclosure Controls and Procedures. The Company’s management, including its Chief Executive Officer and Chief Financial Officer, has conducted an evaluation of the effectiveness of the Company’s disclosure controls and procedures pursuant to Securities Exchange Act Rule 13a-14 as of the end of the period covered by this quarterly report. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Company has in place effective controls and procedures designed to ensure that information required to be disclosed by the Company in the reports it files or submits under the Securities Exchange Act of 1934, as amended, and the rules thereunder, is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

Changes in Internal Control over Financial Reporting. During the quarter ended June 30, 2015, there were no changes in the Company’s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II — OTHER INFORMATION

Item 1.Legal Proceedings

Please see Note 20 to the notes to the interim consolidated financial statements.

Item 1A.Risk Factors

There have been no material changes from the risk factors previously disclosed in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2014.

Item 2.Unregistered Sales of Equity Securities and Use of Proceeds

Set forth below is a summary of the shares repurchased by the Company during the three months ended June 30, 2015 and the number of shares remaining authorized for purchase by the Company.

	Total number of shares purchased	Average price paid per share		Total number of shares purchased as part of publicly announced plans or programs	Maximum number of shares that may yet be purchased under the plans or programs
April 2015	274,211	$	49.480	274,211	5,081,416
May 2015	1,519,302	49.527		1,519,302	3,562,114
June 2015	771,909	49.365		771,909	9,353,091

Item 6.Exhibits

Number
(10.1)	Form of Dividend Equivalent Rights Award Agreement Under the W. R. Berkley Corporation 2012 Stock Incentive Plan.
(31.1)	Certification of the Chief Executive Officer pursuant to Rule 13a-14(a)/ 15d-14(a).
(31.2)	Certification of the Chief Financial Officer pursuant to Rule 13a-14(a)/ 15d-14(a).
(32.1)	Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

44

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.

		W. R. BERKLEY CORPORATION
Date:	August 6, 2015	/s/ William R. Berkley
		William R. Berkley
		Chairman of the Board and Chief Executive Officer
Date:	August 6, 2015	/s/ Eugene G. Ballard
		Eugene G. Ballard
		Executive Vice President - Chief Financial Officer

45

EX-10.1

Exhibit 10.1

DIVIDEND-EQUIVALENT RIGHTS AWARD AGREEMENTUnder the W. R. Berkley Corporation 2012 Stock Incentive Plan

THIS AGREEMENT, dated as of July 1, 2015, by and between W. R. BERKLEY CORPORATION, a Delaware corporation (the “Company”), and grantee as set forth on Exhibit A hereto (the “Grantee”).

WITNESSETH:

WHEREAS, the Grantee is an employee of the Company or subsidiary thereof;

WHEREAS, the Grantee has previously been granted performance-based restricted stock units pursuant to a Performance-Based Restricted Stock Unit Agreement (the “PRSU Award Agreement”); and

WHEREAS, the Company wishes to grant the Grantee dividend equivalent rights (collectively, the “Dividend Equivalent Rights”) as an “other stock-based award” pursuant to Section 10 of the W. R. Berkley Corporation 2012 Stock Incentive Plan, as amended and in effect from time to time (the “Plan”), with respect to shares of the Company’s common stock, par value $0.20 per share (the “Stock”) that may be earned by the Grantee pursuant to the PRSU Award Agreement.

NOW, THEREFORE, in consideration of the covenants and agreements herein contained, the parties hereto hereby agree as follows:

SECTION 1.Grant of Dividend Equivalent Rights. The Company hereby grants to the Grantee Dividend Equivalent Rights, a portion of which shall be designated as Tranche 1 Dividend Equivalent Rights and a portion shall be designated as Tranche 2 Dividend Equivalent Rights, as set forth on Exhibit A. Each vested Dividend Equivalent Right entitles the Grantee to a cash payment as specified in Section 4 equal to the sum of any cash dividends paid by the Company in respect of one share of Stock during the periods set forth in Section 4, subject to the terms and conditions set forth in this Agreement and in the Plan.

SECTION 2.Non‑Transferability. Except as specifically consented to by the Committee, the Grantee may not sell, transfer, pledge, or otherwise encumber or dispose of the Dividend Equivalent Rights other than by will, the laws of descent and distribution, or as otherwise provided for in the Plan.

SECTION 3.Vesting; Forfeiture; Recapture; Other Remedies.

(a)Following the completion of the Performance Period, the Committee shall determine the Average Return on Equity, the ROE Relative Performance, the ROE Relative Performance Vesting Percentage, the portion of the Tranche 1 Dividend Equivalent Rights that have become earned (determined by multiplying the number of Tranche 1 Dividend Equivalent Rights subject to this Agreement by the ROE Relative Performance Vesting Percentage) and the

- 1 -

portion of the Tranche 2 Dividend Equivalent Rights that have become earned (determined by multiplying the number of Tranche 2 Dividend Equivalent Rights subject to this Agreement by the ROE Relative Performance Vesting Percentage). Immediately following the Committee’s determination of the number of earned Tranche 1 Dividend Equivalent Rights and Tranche 2 Dividend Equivalent Rights, the earned Dividend Equivalent Rights shall vest (subject to forfeiture, as set forth in Section 3(e) below), provided the Grantee has remained continuously employed by the Company from the date hereof through the completion of the Performance Period. Dividend Equivalent Rights granted herein which have not become vested Dividend Equivalent Rights following the completion of the Performance Period or otherwise vested shall be immediately forfeited without payment of any consideration and the Grantee shall have no further rights with respect to such Dividend Equivalent Rights. The Company will make no payments to the Grantee with respect to Dividend Equivalent Rights unless and until their Vesting Date.

(b)In the event that Grantee’s employment with the Company is terminated for any reason, all unvested Dividend Equivalent Rights (except for those that vest immediately as provided in Sections 3(c), 3(d) and 3(i) below) shall be forfeited, and the Grantee shall have no further rights with respect to such Dividend Equivalent Rights. For purposes of this Agreement, Grantee’s employment will be considered terminated as of the date Grantee is no longer actively providing services to the Company (regardless of the reason for such termination and whether or not later found to be invalid or in breach of employment laws in the jurisdiction where Grantee is employed or the terms of Grantee’s employment agreement, if any), and unless otherwise expressly provided in this Agreement or determined by the Company, Grantee’s right to continue to vest in the Dividend Equivalent Rights granted hereunder, if any, will terminate as of such date and will not be extended by any notice period arising under local law or contract (e.g., unless Grantee is actively providing substantial services during any notice period as required by the Company. However, Grantee’s period of service would not include any contractual notice period or any period of “garden leave” or similar period arising under employment laws in the jurisdictions where Grantee is employed or the terms of Grantee’s employment agreement, if any).

(c)In the event the Grantee’s employment with the Company is terminated on account of death or Disability prior to the completion of the Performance Period, the number of earned Tranche 1 Dividend Equivalent Rights and earned Tranche 2 Dividend Equivalent Rights shall be immediately determined in accordance with Section 3(a) assuming the Company achieved the target level of ROE Relative Performance for the Performance Period and the number of earned Tranche 1 Dividend Equivalent Rights and Tranche 2 Dividend Equivalent Rights that become vested shall be determined by multiplying the number of earned Dividend Equivalent Rights by a fraction, the numerator of which is the number of days the Grantee served as an employee from August 5, 2014 to the date of such termination and the denominator of which is 1,825.

(d)In the event the Grantee’s employment with the Company is terminated for any reason (other than on account of the Grantee’s death or Disability or by the Company for Cause) (i) prior to the completion of the 2018 Performance Period but following the completion of the

- 2 -

2017 Performance Period, for purposes of this Section 3(d) the Performance Period shall be the 2017 Performance Period, the number of earned Tranche 1 Dividend Equivalent Rights that become vested shall be determined in accordance with Section 3(a), the number of earned Tranche 2 Dividend Equivalent Rights shall be zero (0) and all Tranche 2 Dividend Equivalent Rights shall be immediately forfeited without payment of any consideration, and (ii) prior to the completion of the Performance Period but following the completion of the 2018 Performance Period, for purposes of this Section 3(d) the Performance Period shall be the 2018 Performance Period and the number of earned Tranche 1 Dividend Equivalent Rights and Tranche 2 Dividend Equivalent Rights that become vested shall be determined in accordance with Section 3(a).

(e)The Dividend Equivalent Rights granted hereunder shall be subject to the following forfeiture, recapture and other remedial provisions as provided below:

A. In the event that the Committee determines that the Grantee, prior to the Vesting Date during Grantee’s employment, has engaged in a Competitive Action or enters into, or has entered into, an agreement (written, oral or otherwise) to engage in a Competitive Action or has engaged in Misconduct, all of the unvested Dividend Equivalent Rights granted hereunder shall be immediately forfeited, and the Grantee shall have no further rights with respect to such Dividend Equivalent Rights.

B. In the event that the Committee determines that the Grantee, (1) on or after the Vesting Date during Grantee’s employment or for a period of one year following Grantee’s termination of employment for any reason, has engaged in a Competitive Action or has entered into an agreement (written, oral or otherwise) to engage in a Competitive Action, or (2) on or after the Vesting Date, has engaged in Misconduct, or prior to the Vesting Date Grantee has engaged in Misconduct that is not discovered or acted upon by the Company until on or after the Vesting Date, the Grantee shall pay to the Company, upon demand by the Company, an amount equal to all amounts paid to Grantee pursuant to Section 4 in respect of vested Dividend Equivalent Rights.

C. Grantee acknowledges that engaging in (1) a Competitive Action during the Noncompete Period within the geographic areas set forth in Section 3(f) below or (2) Misconduct is contrary to the interests of the Company and would result in irreparable injuries to the Company and would cause loss in an amount that cannot be readily quantified. Grantee acknowledges that retaining the amounts required to be paid to the Company pursuant to this Section 3(e) once Grantee has (x) chosen to engage in or to agree to engage in a Competitive Action or (y) engaged in Misconduct is contrary to the interests of the Company. The amounts forfeited or paid to the Company hereunder do not and are not intended to constitute actual or liquidated damages. Any action or inaction by the Company with respect to enforcing the forfeiture or recapture provisions set forth herein shall not reduce, eliminate or in any way

- 3 -

affect the Company’s right to enforce the forfeiture or recapture provisions in any other agreement with Grantee.

D. The term “Noncompete Period” as used herein shall mean the period beginning on the date hereof and ending one year following Grantee’s termination of employment for any reason.

E. Furthermore, if the Grantee engages in Misconduct or Competitive Action or has entered into an agreement (written, oral or otherwise) to engage in a Competitive Action during the Noncompete Period, then the Company shall be entitled to, and reserves the right to, pursue any other legal or equitable remedies in addition to the right to receive forfeitures and/or payments pursuant to this Section 3(e), including, but not limited to, the recovery of monetary damages resulting from such action set forth in Section 3(f) and injunctive relief

(f)For purposes of this Agreement, the Grantee has engaged in a “Competitive Action” if, either directly or indirectly, and whether as an employee, consultant, independent contractor, partner, joint venturer or otherwise, the Grantee (i) who was employed by W. R. Berkley Corporation, engages in or directs any business activities, in or directed into any geographical area where the Company is engaged in business, which are competitive with any business activities conducted by the Company in such geographical area, (ii) who was employed by a subsidiary or subsidiaries of the Company, engages in or directs any business activities, in or directed into any geographical area where such subsidiary, or subsidiaries that previously employed Grantee, is or are engaged in business or outside of any such geographical area, in either case, which are competitive with any business activities conducted by such subsidiary or subsidiaries in such geographical area, (iii) on behalf of any person or entity engaged in business activities competitive with the business activities of the Company, solicits or induces, or in any manner attempts to solicit or induce, any person employed by, or as an agent or producer of, the Company to terminate such person’s employment, agency or producer relationship, as the case may be, with the Company, (iv) diverts, or attempts to divert, any person, concern or entity from doing business with the Company or attempts to induce any such person, concern or entity to cease being a customer of the Company, (v) solicits the business of the Company or (vi) makes use of, or attempts to make use of, the Company’s property or proprietary information, other than in the course of the performance of services to the Company or at the direction of the Company. The determination as to whether the Grantee has engaged in a Competitive Action shall be made by the Committee in its sole and absolute discretion. The Committee has sole and absolute discretion to determine whether, notwithstanding its determination that Grantee has engaged in a Competitive Action, recapture or forfeiture as provided herein shall not occur. The Committee’s exercise or nonexercise of its discretion with respect to any particular event or occurrence by or with respect to the Grantee or any other recipient of dividend equivalent rights shall not in any way reduce or eliminate the authority of the Committee to (i) determine that any event or occurrence by or with respect to the Grantee constitutes engaging in a Competitive Action or (ii) determine the related Competitive Action date.

- 4 -

(g)For purposes of this Agreement, the Grantee has engaged in “Misconduct” if the Grantee, during Grantee’s employment with the Company, has engaged in an act which would, in the judgment of the Committee, constitute fraud that could be punishable as a crime or embezzlement against either the Company or one of its subsidiaries. The determination as to whether the Grantee has engaged in Misconduct shall be made by the Committee in its sole and absolute discretion. The Committee has sole and absolute discretion to determine whether, notwithstanding its determination that Grantee has engaged in Misconduct, recapture or forfeiture as provided herein shall not occur. The Committee’s exercise or nonexercise of such discretion with respect to any particular event or occurrence by or with respect to the Grantee or any other recipient of dividend equivalent rights shall not in any way reduce or eliminate the authority of the Committee to (i) determine that any event or occurrence by or with respect to the Grantee constitutes an act of Misconduct or (ii) determine the related Misconduct date.

(h)The Grantee hereby agrees to notify the Company within ten (10) days of commencing any employment or other service provider relationship with any company or business during the Noncompete Period, specifying in reasonable detail (i) the name of such company or business and the line of business in which it is engaged, and (ii) the Grantee’s position or title and the types of services to be rendered by the Grantee in such position or title. The Grantee hereby acknowledges that this notice requirement is reasonable and necessary for the Company to enforce the provisions of Sections 3(e) hereof. Furthermore, if the Grantee fails to so notify the Company, the Grantee shall be required to repay (at the Committee’s sole discretion) to the Company the amounts described in Section 3(e) hereof as if the Grantee had engaged in a Competitive Action during the Noncompete Period, unless the Grantee can provide dispositive evidence, which shall be determined in the Committee’s sole discretion, that a Competitive Action did not occur.

(i)In the event of a Change in Control, unless otherwise specifically prohibited under applicable laws or by the rules and regulations of any governing governmental agencies or national securities exchanges, in the event that the Grantee’s employment with the Company is terminated (i) by the Company without Cause or (ii) by the Grantee for Good Reason, in each case during the eighteen (18) month period following such Change in Control, the number of earned Tranche 1 Dividend Equivalent Rights and Tranche 2 Dividend Equivalent Rights shall be immediately determined assuming the Company achieved the target level of ROE Relative Performance for the Performance Period and the number of earned Tranche 1 Dividend Equivalent Rights and Tranche 2 Dividend Equivalent Rights shall immediately become vested Dividend Equivalent Rights. All vested Dividend Equivalent Rights shall be paid in accordance with Section 4.

SECTION 4.Payment. Upon the vesting of the Dividend Equivalent Rights, the Grantee will be entitled to and promptly shall (and in no event later than thirty (30) days after such Vesting Date) receive a lump-sum cash payment (if any) equal to:

(a)with respect to the vested Tranche 1 Dividend Equivalent Rights, the sum of all cash dividends paid by the Company in respect of one share of Stock following July 1, 2017

- 5 -

through the Vesting Date multiplied by the number of vested Tranche 1 Dividend Equivalent Rights; and

(b)with respect to the vested Tranche 2 Dividend Equivalent Rights, the sum of all cash dividends paid by the Company in respect of one share of Stock following July 1, 2018 through the Vesting Date multiplied by the number of vested Tranche 2 Dividend Equivalent Rights.

SECTION 5.Rights of Stockholder. Neither the Grantee nor any transferee will have any rights as a stockholder with respect to any Dividend Equivalent Rights granted pursuant to this Agreement.

SECTION 6.Company, Grantee.

(a)The term “Company” as used in Section 3 or otherwise in this Agreement with reference to the Grantee’s employment shall include the Company and its subsidiaries. The term “subsidiary” as used in this Agreement shall mean any subsidiary of the Company within the meaning of Section 424(f) of the Code.

(b)Whenever the word “Grantee” is used in any provision of this Agreement under circumstances where the provision should logically be construed to apply to the executors, the administrators, or the person or persons to whom the Dividend Equivalent Rights may be transferred by will or by the laws of descent and distribution, the word “Grantee” shall be deemed to include such person or persons.

SECTION 7.Compliance with Law. Notwithstanding any of the provisions hereof, the Grantee hereby agrees and the Company will not be obligated to make any payment to Grantee hereunder, if such payment will constitute a violation by the Grantee or the Company of any provision of any law or regulation of any governmental authority. Any determination in this connection by the Committee will be final, binding and conclusive. The Company shall in no event be obliged to register any securities pursuant to the Securities Act or to take any other affirmative action in order to cause the grant of Dividend Equivalent Rights hereunder to comply with any law or regulation of any governmental authority.

SECTION 8.Notice. Every notice or other communication relating to this Agreement shall be in writing, and shall be mailed to or delivered to the party for whom it is intended at such address as may from time to time be designated by it in a notice mailed or delivered to the other party as herein provided, provided that, unless and until some other address be so designated, all notices or communications by the Grantee to the Company shall be mailed or delivered to the Company at its principal executive office, and all notices or communications by the Company to the Grantee may be given to the Grantee personally or may be mailed to Grantee at the Grantee’s last known address, as reflected in the Company’s records.

SECTION 9.Changes in Capital Structure. The existence of this Agreement will not affect in any way the right or power of the Company or its stockholders to make or authorize any of the following:

- 6 -

(a)any adjustments, recapitalization, reorganizations or other changes in the Company’s capital structure or its business;

(b)any merger or consolidation of the Company;

(c)any issue of stock or of options, warrants or rights to purchase stock or of bonds, debentures, preferred to prior preference stocks ahead of or affecting the Stock or the rights thereof or convertible into or exchangeable for Stock;

(d)the dissolution or liquidation of the Company;

(e)any sale or transfer of all or any part of its assets or business; or

(f)any other corporate act or proceeding.    

SECTION 10.Other Share Issues. Except as expressly provided in the Plan, the issue by the Company of shares of stock of any class, or securities convertible into or exchangeable for shares of stock of any class, for cash, property or services, either upon direct sale or upon the exercise of options, rights or warrants, or upon conversion of shares or obligations of the Company convertible into such shares or other securities will not affect, and no adjustment by reason thereof will be made with respect to, the number of Dividend Equivalent Rights granted pursuant to this Agreement.

SECTION 11.Withholding. At the time of vesting and/or payment in respect of the Dividend Equivalent Rights, as appropriate, the Committee shall require the Grantee to pay to the Company an amount sufficient to pay all federal, state and local withholding taxes applicable (including FICA taxes upon vesting), in the Committee’s judgment, to the vesting or payment in respect of the Dividend Equivalent Rights, and the Grantee’s right to vesting and/or payment, as appropriate, shall be contingent upon such payment. Such payment to the Company may be effected through (a) payment by the recipient to the Company of the aggregate withholding taxes in cash or cash equivalents; (b) at the discretion of the Committee, the Company’s withholding from the number of shares of Stock that would otherwise be delivered to the Grantee upon settlement of the Restricted Stock Units granted pursuant to the PRSU Award Agreement, a number of shares of Stock with an aggregate fair market value on the date of settlement (as determined by the Committee) equal to the aggregate amount of withholding taxes; or (c) at the discretion of the Committee, any combination of these two methods.

SECTION 12.Grantee’s Tax Considerations. The tax impact of the award hereunder can be quite complex and will vary with each Grantee. It is recommended that each Grantee review such Grantee’s own tax situation and consult their tax advisor.

SECTION 13.Waiver of Right to Trial by Jury. BOTH PARTIES HEREBY WAIVE AND RELEASE ANY CLAIM UNDER STATE OR FEDERAL LAW THEY MAY HAVE HAD TO A JURY TRIAL IN CONNECTION WITH CLAIMS ARISING UNDER OR RELATED TO THIS AGREEMENT OR ANY ACTIONS TAKEN OR DETERMINATIONS MADE HEREUNDER,

- 7 -

SECTION 14.No Right to Continued Service. This Agreement does not confer upon the Grantee any right to continue as an employee of the Company, nor shall it interfere in any way with the right of the Company to terminate Grantee’s employment at any time for any reason.

SECTION 15.Agreement Confidentiality. Grantee understands and agrees that Grantee will keep the terms and conditions of this Agreement strictly confidential unless Grantee is compelled to do otherwise by a court of competent jurisdiction, and Grantee further agrees not to disclose the terms and conditions of this Agreement to any third party other than Grantee’s immediate family members, attorney, financial advisor, or accountant, all of whom must also agree to keep these terms and conditions strictly confidential unless compelled to do otherwise by a court of competent jurisdiction.

SECTION 16.Binding Effect. This Agreement shall be binding upon the heirs, executors, administrators and successors of the parties hereto.

SECTION 17.The Plan. The terms and provisions of the Plan are incorporated herein by reference. In the event of any inconsistency between the Plan and this Agreement, the terms of the Plan shall govern. The Grantee hereby acknowledges that he has received a copy of the Plan and understands and agrees to the terms thereof. This Agreement, together with the Plan, constitutes the entire agreement by and between the parties hereto with respect to the subject matter hereof, and this Agreement and the Plan supersede all prior agreements, correspondence and understandings and all prior and contemporaneous oral agreements and understandings, among the parties hereto with regard to the subject matter hereof.

SECTION 18.Governing Law. This Agreement shall be construed and interpreted in accordance with the laws of the State of Delaware, without regard to the principles of conflicts of law thereof. Grantee hereby irrevocably consents to the exclusive personal jurisdiction of the federal and State courts of the State of Delaware for the resolution of any disputes arising out of, or relating to, this Agreement. In any action arising under or relating to this Agreement, the court shall not have the authority to, and shall not, conduct a de novo review of any determination made by the Committee or the Company but is instead authorized to determine solely whether the determination was the result of fraud or bad faith under Delaware law.

SECTION 19.Severability. The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other provision or provisions of this Agreement, which shall remain in full force and effect. If any provision of this Agreement is held to be invalid, void or unenforceable in any jurisdiction, any court so holding shall substitute a valid, enforceable provision that preserves, to the maximum lawful extent, the terms and intent of such provisions of this Agreement. If any of the provisions of, or covenants contained in, this Agreement are hereafter construed to be invalid or unenforceable in any jurisdiction, the same shall not affect the remainder of the provisions or the enforceability thereof in any other jurisdiction, which shall be given full effect, without regard to the invalidity or unenforceability in such other jurisdiction. Any such holding shall affect such provision of this Agreement, solely as to that jurisdiction, without rendering that or any other provisions of this Agreement invalid, illegal or unenforceable in any other jurisdiction. If any covenant should

- 8 -

be deemed invalid, illegal or unenforceable because its scope is considered excessive, such covenant will be modified so that the scope of the covenant is reduced only to the minimum extent necessary to render the modified covenant valid, legal and enforceable.

SECTION 20.Definitions. The following terms shall have the following meanings:

(a)“2017 Performance Period” means the period commencing on the date hereof and ending on June 30, 2017.

(b)“2018 Performance Period” means the period commencing on the date hereof and ending on June 30, 2018.

(c)“Average Return on Equity” means the percentage equal to the product of four (4) times the result of (i)(A) the sum of the Return on Equity for each of the immediately preceding four (4) quarters completed prior to the date hereof plus (B) the Return on Equity for each quarter in the Performance Period, divided by (ii)(A) the sum of four (4) plus (B) the number of quarters in the Performance Period.

(d)“Return on Equity” means for a quarter, a fraction (expressed as percentage) equal to the consolidated net income from continuing operations of the Company as determined under U.S. Generally Accepted Accounting Principles divided by the stockholders’ equity at the beginning of the calendar year for that quarter.

(e)“Cause” means “Cause” as defined in any active employment agreement between the Grantee and the Company or, in the absence of any such definition, means the occurrence of any one of the following events: (i) fraud, personal dishonesty, embezzlement or acts of gross negligence or gross misconduct on the part of the Grantee in the course of his or her employment or services; (ii) the Grantee’s engagement in conduct that is materially injurious to the Company; (iii) the Grantee’s conviction by a court of competent jurisdiction of, or pleading “guilty” or “no contest” to, (x) a felony or (y) any other criminal charge (other than minor traffic violations) which could reasonably be expected to have a material adverse impact on the Company’s reputation or business; (iv) public or consistent drunkenness by the Grantee or his or her illegal use of narcotics which is, or could reasonably be expected to become, materially injurious to the reputation or business of the Company or which impairs, or could reasonably be expected to impair, the performance of the Grantee’s duties to the Company; (v) willful failure by the Grantee to follow the lawful directions of a superior officer; or (vi) the Grantee’s continued and material failure to fulfill his or her employment obligations to the Company.

(f)“Disability” means the total and permanent disability of the Grantee, as determined by the Committee in its sole discretion.

(g)“Good Reason” means “Good Reason” as defined in any active employment agreement between the Grantee and the Company or, in the absence of any such definition, means the occurrence of any one of the following events, unless the Grantee agrees in writing that such event shall not constitute Good Reason: (i) a material reduction in the Grantee’s duties or responsibilities from those in effect immediately prior to a Change in Control; (ii) a material

- 9 -

reduction in the Grantee’s base salary below the levels in effect immediately prior to a Change in Control; or (iii) relocation of the Grantee’s primary place of employment to a location more than fifty (50) miles from its location, and further from the Grantee’s primary residence, immediately prior to a Change in Control; provided, however, that with respect to any Good Reason termination, the Company will be given not less than thirty (30) days’ written notice by the Grantee (within sixty (60) days of the occurrence of the event constituting Good Reason) of the Grantee’s intention to terminate the Grantee’s employment for Good Reason, such notice to state in detail the particular act or acts or failure or failures to act that constitute the grounds on which the proposed termination for Good Reason is based, and such termination shall be effective at the expiration of such thirty (30) day notice period only if the Company has not fully cured such act or acts or failure or failures to act that give rise to Good Reason during such period. Further notwithstanding any provision in this definition to the contrary, in order to constitute a termination for Good Reason, such termination must occur within six (6) months of the initial existence of the applicable condition.

(h)“Performance Period” means the period commencing on the date hereof and ending on June 30, 2019.

(i)“ROE Relative Performance” means the Average Return on Equity less the Treasury Note Rate of Return, expressed in basis points.

(j)“ROE Relative Performance Vesting Percentage” means a function of the ROE Relative Performance during the applicable Performance Period, and shall be determined as follows:

ROE Relative Performance*	ROE Relative Performance Vesting Percentage (% of Target)*
Less than 0 basis points	0%
≥ 0 basis points and ≤ +500 basis points	80.0%
+633 basis points	90.0%
+766 basis points	100.0% (target)
+	110.0%

* In the event that the ROE Relative Performance falls between any two values listed in the table above, the ROE Relative Performance Vesting Percentage shall be determined using a straight line interpolation between such two values, except that if the ROE Relative Performance is equal to or greater than zero basis points and equal to or less than 500 basis points, the ROE Relative Vesting Percentage shall be 80% (i.e., no linear interpolation between 0% and 80%).

(k)“Treasury Note Rate of Return” means 1.66%.

- 10 -

(l)“Vesting Date” means the date on which the Dividend Equivalent Rights vest hereunder.

SECTION 21.Signature in Counterparts. This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.

- 11 -

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.

W. R. BERKLEY CORPORATION

By: /s/ William R. Berkley

William R. Berkley

Chairman of the Board and

Chief Executive Officer

__________________________________

Grantee

- 12 -

EXHIBIT A

TO THE DIVIDEND EQUIVALENT RIGHT AGREEMENT DATED

AS OF JULY 1, 2015 UNDER THE W. R. BERKLEY CORPORATION

2012 STOCK INCENTIVE PLAN

NAME OF GRANTEE: ________________________________________

TARGET NUMBER OF TRANCHE 1 DIVIDEND EQUIVALENT RIGHTS AWARDED TO GRANTEE: _____________

TARGET NUMBER OF TRANCHE 2 DIVIDEND EQUIVALENT RIGHTS AWARDED TO GRANTEE: _____________

By accepting this Agreement by either clicking on the action icon “accept” or signing this Agreement, you acknowledge that you have read and agree to all the terms and conditions set forth in this Agreement, including without limitation, the forfeiture and recapture provisions set forth in Section 3 of this Agreement.

- 13 -

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, William R. Berkley, Chairman of the Board and Chief Executive Officer of W. R. Berkley Corporation (the “registrant”), certify that:

1. I have reviewed this quarterly report on Form 10-Q of the registrant;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 6, 2015

/s/ William R. Berkley  

William R. Berkley 

Chairman of the Board and

Chief Executive Officer 

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Eugene G. Ballard, Executive Vice President-Chief Financial Officer of W. R. Berkley Corporation (the “registrant”), certify that:

1. I have reviewed this quarterly report on Form 10-Q of the registrant;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 6, 2015

/s/ Eugene G. Ballard

Eugene G. Ballard

Executive Vice President -

Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of W. R. Berkley Corporation (the “Company”) on Form 10-Q for the period ended June 30, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), we, William R. Berkley, Chairman of the Board and Chief Executive Officer of the Company, and Eugene G. Ballard, Executive Vice President-Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ William R. Berkley

William R. Berkley

Chairman of the Board and Chief Executive Officer

/s/ Eugene G. Ballard

Eugene G. Ballard

Executive Vice President — Chief Financial Officer

August 6, 2015

A signed original of this written statement required by Section 906 has been provided to W. R. Berkley Corporation (the “Company”) and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Securities In An Unrealized Loss Position Securities In An Unrealized Loss Position (Tables)

6 Months Ended

Jun. 30, 2015

Statement of Financial Position [Abstract]

Securities in an unrealized loss position

The following tables summarize all securities in an unrealized loss position at June 30, 2015 and December 31, 2014 by the length of time those securities have been continuously in an unrealized loss position:

	Less Than 12 Months				12 Months or Greater				Total
(In thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
June 30, 2015
U.S. government and government agency	$	72,300	$	1,656	$	73,593	$	1,899	$	145,893	$	3,555
State and municipal	873,578		12,783		108,782		3,278		982,360		16,061
Mortgage-backed securities	222,473		2,903		212,426		7,704		434,899		10,607
Corporate	1,669,868		18,973		159,708		14,455		1,829,576		33,428
Foreign	131,227		4,036		48,528		12,896		179,755		16,932
Fixed maturity securities	2,969,446		40,351		603,037		40,232		3,572,483		80,583
Common stocks	47,359		10,669		—		—		47,359		10,669
Preferred stocks	13,584		1,267		22,658		3,016		36,242		4,283
Equity securities	60,943		11,936		22,658		3,016		83,601		14,952
Total	$	3,030,389	$	52,287	$	625,695	$	43,248	$	3,656,084	$	95,535
December 31, 2014
U.S. government and government agency	$	84,750	$	522	$	84,850	$	2,635	$	169,600	$	3,157
State and municipal	158,594		631		150,284		3,389		308,878		4,020
Mortgage-backed securities	75,739		332		312,922		9,169		388,661		9,501
Corporate	1,586,238		8,697		214,628		16,084		1,800,866		24,781
Foreign	76,471		3,907		85,025		14,158		161,496		18,065
Fixed maturity securities	1,981,792		14,089		847,709		45,435		2,829,501		59,524
Common stocks	15,929		5,453		—		—		15,929		5,453
Preferred stocks	27,126		1,139		22,648		3,026		49,774		4,165
Equity securities	43,055		6,592		22,648		3,026		65,703		9,618
Total	$	2,024,847	$	20,681	$	870,357	$	48,461	$	2,895,204	$	69,142

Non-Investment Grade Fixed Maturity Securities

Fixed Maturity Securities – A summary of the Company’s non-investment grade fixed maturity securities that were in an unrealized loss position at June 30, 2015 is presented in the table below:

($ in thousands)	Number of Securities	Aggregate Fair Value		Gross Unrealized Loss
Mortgage-backed securities	7	$	24,150	$	1,605
Corporate	13	90,216		2,486
Total	20	$	114,366	$	4,091

XML

Arbitrage Trading Account (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Trading Securities [Abstract]
Arbitrage trading account	$ 830,212	$ 450,648

XML

Acquistions Intangibles (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Worldwide Supplier of After-market Original Equipment Manufacturer (OEM) Parts [Member]
Business Acquisition [Line Items]
Acquired Indefinite-lived Intangible Assets		$ 10
Minimum [Member]
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life	7 years
Maximum [Member]
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life	15 years

XML

Net Investment Income Net Investment Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Net Investment Income [Line Items]
Investment income	$ 130,102	$ 142,224	$ 257,218	$ 313,488
Investment expense	(2,519)	(3,495)	(5,396)	(6,048)
Net investment income	127,583	138,729	251,822	307,440
Fixed maturity securities, including cash and cash equivalents and loans receivable
Net Investment Income [Line Items]
Investment income	105,030	107,760	213,159	214,658
Investment funds
Net Investment Income [Line Items]
Investment income	21,851	22,356	27,912	76,155
Arbitrage trading account
Net Investment Income [Line Items]
Investment income	(117)	6,942	8,862	12,461
Equity securities available for sale
Net Investment Income [Line Items]
Investment income	1,224	2,103	2,404	4,049
Real estate
Net Investment Income [Line Items]
Investment income	$ 2,114	$ 3,063	$ 4,881	$ 6,165

XML

Per Share Data (Weighted Average Number of Common Shares Used In the Computation of Basic and Diluted Earnings per Share) (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Earnings Per Share [Abstract]
Basic (shares)	123,781	127,668	124,869	128,765
Diluted (shares)	129,988	133,304	131,228	134,323

XML

Investments in Equity Securities Investments in Equity Securities (Tables)

6 Months Ended

Jun. 30, 2015

Equity securities available for sale

Schedule of Available-for-sale Securities [Line Items]

Schedule of Investments in Equity Securities

At June 30, 2015 and December 31, 2014, investments in equity securities were as follows:

(In thousands)	Cost		Gross Unrealized					Fair Value		Carrying Value
			Gains		Losses
June 30, 2015
Common stocks	$	69,860	$	—	$	(10,669	)	$	59,191	$	59,191
Preferred stocks	86,583		12,022		(4,283		)	94,322		94,322
Total	$	156,443	$	12,022	$	(14,952	)	$	153,513	$	153,513
December 31, 2014
Common stocks	$	69,870	$	11,929	$	(5,453	)	$	76,346	$	76,346
Preferred stocks	90,425		8,385		(4,165		)	94,645		94,645
Total	$	160,295	$	20,314	$	(9,618	)	$	170,991	$	170,991

XML

Real Estate Real Estate (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Real Estate [Abstract]
Properties in operation	$ 209,219,000	$ 196,980,000
Properties under development	611,038,000	534,632,000
Total	820,257,000	731,612,000
Real Estate Investment Property, Accumulated Depreciation	$ 5,834,000	$ 1,609,000

XML

Industry Segments (Identifiable Assets by Segment) (Details) - USD ($) $ in Thousands		Jun. 30, 2015	Dec. 31, 2014
Segment Reporting, Asset Reconciling Item [Line Items]
Consolidated Assets		$ 21,689,809	$ 21,679,239
Operating Segments [Member] | Reinsurance-Global Segment [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Consolidated Assets		2,532,001	2,708,090
Operating Segments [Member] | Insurance-International Segment [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Consolidated Assets		1,854,074	1,876,347
Operating Segments [Member] | Insurance-Domestic Segment [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Consolidated Assets		16,105,299	16,036,513
Intersegment Eliminations and Corporate, Non-Segment [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Consolidated Assets	[1]	$ 1,198,435	$ 1,058,289

[1] Corporate and eliminations represent corporate revenues and expenses that are not allocated to business segments.

XML

Fair Value Of Financial Instruments Fair Value of Financial Instruments (Notes)

6 Months Ended

Jun. 30, 2015

Fair Value Disclosures [Abstract]

Fair Value Disclosures

Fair Value Measurements

The Company’s fixed maturity and equity securities classified as available for sale and its trading account securities are carried at fair value. Fair value is defined as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” The Company utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels, as follows:

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.  

Level 2 - Quoted prices for similar assets or valuations based on inputs that are observable.

Level 3 - Estimates of fair value based on internal pricing methodologies using unobservable inputs. Unobservable inputs are only used to measure fair value to the extent that observable inputs are not available.

Substantially all of the Company’s fixed maturity securities were priced by independent pricing services. The prices provided by the independent pricing services are estimated based on observable market data in active markets utilizing pricing models and processes, which may include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, sector groupings, matrix pricing and reference data. The pricing services may prioritize inputs differently on any given day for any security based on market conditions, and not all inputs are available for each security evaluation on any given day. The pricing services used by the Company have indicated that they will only produce an estimate of fair value if objectively verifiable information is available. The determination of whether markets are active or inactive is based upon the volume and level of activity for a particular asset class. The Company reviews the prices provided by pricing services for reasonableness and periodically performs independent price tests of a sample of securities to ensure proper valuation.

If prices from independent pricing services are not available for fixed maturity securities, the Company estimates the fair value. For Level 2 securities, the Company utilizes pricing models and processes which may include benchmark yields, sector groupings, matrix pricing, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, bids, offers and reference data. Where broker quotes are used, the Company generally requests two or more quotes and sets a price within the range of quotes received based on its assessment of the credibility of the quote and its own evaluation of the security. The Company generally does not adjust quotes received from brokers. For securities traded only in private negotiations, the Company determines fair value based primarily on the cost of such securities, which is adjusted to reflect prices of recent placements of securities of the same issuer, financial projections, credit quality and business developments of the issuer and other relevant information.

For Level 3 securities, the Company generally uses a discounted cash flow model to estimate the fair value of fixed maturity securities. The cash flow models are based upon assumptions as to prevailing credit spreads, interest rate and interest rate volatility, time to maturity and subordination levels. Projected cash flows are discounted at rates that are adjusted to reflect illiquidity, where appropriate.

The following tables present the assets and liabilities measured at fair value, on a recurring basis, as of June 30, 2015 and December 31, 2014 by level:

(In thousands)	Total		Level 1		Level 2		Level 3
June 30, 2015
Assets:
Fixed maturity securities available for sale:
U.S. government and government agency	$	715,367	$	—	$	715,367	$	—
State and municipal	4,298,851		—		4,298,851		—
Mortgage-backed securities	1,169,283		—		1,169,283		—
Corporate	5,143,853		—		5,143,699		154
Foreign government	967,150		—		967,150		—
Total fixed maturity securities available for sale	12,294,504		—		12,294,350		154
Equity securities available for sale:
Common stocks	59,191		50,172		—		9,019
Preferred stocks	94,322		—		90,647		3,675
Total equity securities available for sale	153,513		50,172		90,647		12,694
Arbitrage trading account	830,212		387,575		441,580		1,057
Total	$	13,278,229	$	437,747	$	12,826,577	$	13,905
Liabilities:
Securities sold but not yet purchased	$	155,484	$	155,428	$	56	$	—
December 31, 2014
Assets:
Fixed maturity securities available for sale:
U.S. government and government agency	$	803,388	$	—	$	803,388	$	—
State and municipal	4,362,996		—		4,362,996		—
Mortgage-backed securities	1,295,636		—		1,295,636		—
Corporate	5,200,137		—		5,179,372		20,765
Foreign government	941,826		—		941,826		—
Total fixed maturity securities available for sale	12,603,983		—		12,583,218		20,765
Equity securities available for sale:
Common stocks	76,346		65,605		—		10,741
Preferred stocks	94,645		—		90,932		3,713
Total equity securities available for sale	170,991		65,605		90,932		14,454
Arbitrage trading account	450,648		295,047		154,881		720
Total	$	13,225,622	$	360,652	$	12,829,031	$	35,939
Liabilities:
Securities sold but not yet purchased	$	106,079	$	106,074	$	5	$	—

There were no significant transfers between Levels 1 and 2 during the six months ended June 30, 2015 or during the year ended December 31, 2014.

The following tables summarize changes in Level 3 assets and liabilities for the six months ended June 30, 2015 and for the year ended December 31, 2014:

	Gains (Losses) Included in:
(In thousands)	Beginning Balance		Earnings			Other Comprehensive Income			Purchases		(Sales)			Paydowns/ Maturities			Transfers					Ending Balance
																	In		Out
Six months ended June 30, 2015
Assets:
Fixed maturities available for sale:
Corporate	$	20,765	$	15		$	180		$	—	$	—		$	(1,673	)	$	—	$	(19,133	)	$	154
Total	20,765		15			180			—		—			(1,673		)	—		(19,133		)	154
Equity securities available for sale:
Common stocks	10,741		—			(1,722		)	—		—			—			—		—			9,019
Preferred stocks	3,713		(38		)	—			—		—			—			—		—			3,675
Total	14,454		(38		)	(1,722		)	—		—			—			—		—			12,694
Arbitrage trading account	720		(437		)	—			72,640		(71,866		)	—			—		—			1,057
Total	$	35,939	$	(460	)	$	(1,542	)	$	72,640	$	(71,866	)	$	(1,673	)	$	—	$	(19,133	)	$	13,905
Liabilities:
Securities sold but not yet purchased	$	—	$	—		$	—		$	—	$	—		$	—		$	—	$	—		$	—
Year ended December 31, 2014:
Assets:
Fixed maturities available for sale:
Corporate	$	42,864	$	47		$	(3,711	)	$	238	$	(15,244	)	$	(3,429	)	$	—	$	—		$	20,765
Total	42,864		47			(3,711		)	238		(15,244		)	(3,429		)	—		—			20,765
Equity securities available for sale:
Common stocks	1,238		—			(911		)	11,343		(929		)	—			—		—			10,741
Preferred stocks	3,752		(17		)	—			3,430		(3,452		)	—			—		—			3,713
Total	4,990		(17		)	(911		)	14,773		(4,381		)	—			—		—			14,454
Arbitrage trading account	1,780		2,274			—			4,942		(14,073		)	—			9,064		(3,267		)	720
Total	$	49,634	$	2,304		$	(4,622	)	$	19,953	$	(33,698	)	$	(3,429	)	$	9,064	$	(3,267	)	$	35,939
Liabilities:
Securities sold but not yet purchased	$	—	$	(20	)	$	—		$	31	$	(11	)	$	—		$	—	$	—		$	—

During the six months ended June 30, 2015, four securities were transferred out of Level 3 where an observable price was available. During the year ended December 31, 2014, two securities were transferred into Level 3 where the quoted prices were no longer available. One of these securities was sold during the second quarter of 2014.

Fair Value of Financial Instruments

The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments:

	June 30, 2015				December 31, 2014
(In thousands)	Carrying Value		Fair Value		Carrying Value		Fair Value
Assets:
Fixed maturity securities	$	12,395,810	$	12,413,636	$	12,705,160	$	12,725,806
Equity securities available for sale	153,513		153,513		170,991		170,991
Arbitrage trading account	830,212		830,212		450,648		450,648
Loans receivable	259,411		262,341		322,012		325,219
Cash and cash equivalents	756,368		756,368		674,441		674,441
Trading account receivables from brokers and clearing organizations	41,576		41,576		371,034		371,034
Liabilities:
Due to broker	39,795		39,795		23,133		23,133
Trading account securities sold but not yet purchased	155,484		155,484		106,079		106,079
Subordinated debentures	340,190		338,660		340,060		332,640
Senior notes and other debt	1,843,865		2,025,469		2,115,527		2,344,292

The estimated fair values of the Company’s fixed maturity securities, equity securities available for sale and arbitrage trading account securities are based on various valuation techniques that rely on fair value measurements as described in Note 16 above. The fair value of loans receivable are estimated by using current institutional purchaser yield requirements for loans with similar credit characteristics, which is considered a Level 2 input. The fair value of the senior notes and other debt and the subordinated debentures is based on spreads for similar securities, which is considered a Level 2 input.

XML

Statements of Cash Flow (Details) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Supplemental Cash Flow Information [Abstract]
Interest payments	$ 67,786,000	$ 59,811,000
Income taxes paid	$ 54,324,000	$ 152,439,000

XML

Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2015

Fair Value Disclosures [Abstract]

Carrying Amounts And Estimated Fair Values Of Financial Instruments

The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments:

	June 30, 2015				December 31, 2014
(In thousands)	Carrying Value		Fair Value		Carrying Value		Fair Value
Assets:
Fixed maturity securities	$	12,395,810	$	12,413,636	$	12,705,160	$	12,725,806
Equity securities available for sale	153,513		153,513		170,991		170,991
Arbitrage trading account	830,212		830,212		450,648		450,648
Loans receivable	259,411		262,341		322,012		325,219
Cash and cash equivalents	756,368		756,368		674,441		674,441
Trading account receivables from brokers and clearing organizations	41,576		41,576		371,034		371,034
Liabilities:
Due to broker	39,795		39,795		23,133		23,133
Trading account securities sold but not yet purchased	155,484		155,484		106,079		106,079
Subordinated debentures	340,190		338,660		340,060		332,640
Senior notes and other debt	1,843,865		2,025,469		2,115,527		2,344,292

XML

Loans Receivable Loans Receivable (Tables)

6 Months Ended

Jun. 30, 2015

Receivables [Abstract]

Schedule of Loans Receivable

Loans receivable are as follows:

(In thousands)	June 30, 2015			December 31, 2014
Amortized cost:
Real estate loans	$	174,719		$	243,407
Commercial loans	84,692			78,605
Total	$	259,411		$	322,012
Fair value:
Real estate loans	$	177,648		$	245,112
Commercial loans	84,693			80,107
Total	$	262,341		$	325,219
Valuation allowance:
Specific	$	75		$	115
General	2,311			2,371
Total	$	2,386		$	2,486
	For the Three Months Ended June 30,
	2015			2014
Increase (decrease) in valuation allowance	$	(53	)	$	16
Loans receivable charged off	—			—
	For the Six Months  Ended June 30,
	2015			2014
Increase (decrease) in valuation allowance	$	(100	)	$	479
Loans receivable charged off	—			—

XML

Investments In Fixed Maturity Securities Investments in Fixed Maturity Securities (Amortized cost and fair value of fixed maturity securities) (Details) - USD ($) $ in Thousands		Jun. 30, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment		$ 101,306	$ 101,177
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain		(17,826)	(20,646)
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss		0	0
Held-to-maturity Securities, Fair Value		119,132	121,823
Held-to-maturity Securities		101,306	101,177
Available-for-sale Debt Securities, Amortized Cost Basis		11,917,655	12,122,087
Available For Sale Securities Debt Securities Gross Unrealized Gain		457,432	541,420
Available For Sale Securities Debt Securities Gross Unrealized Losses		(80,583)	(59,524)
Available For Sale Securities Debt Securities Fair Value		12,294,504	12,603,983
Available-for-sale Securities, Debt Securities		12,294,504	12,603,983
Marketable Securities Fixed Maturities Gross Unrealized Gains		475,258	562,066
Fixed maturity securities		12,395,810	12,705,160
Marketable Securities Fixed Maturities Gross Unrealized Losses		80,583	59,524
Amortized Cost, Due in one year or less		818,912
Amortized Cost, Due after one year through five years		3,934,376
Amortized Cost, Due after five years through ten years		3,612,449
Amortized Cost, Due after ten years		2,477,644
Amortized Cost, Mortgaged-backed securities		1,175,580
Total investments in fixed maturity securities, Amortized Value		12,018,961	12,223,264
Fair Value, Due in one year or less		825,584
Fair Value, Due after one year through five years		4,091,220
Fair Value, Due after five years through ten years		3,754,639
Fair Value, Due after ten years		2,549,014
Fair Value, Mortgage-backed securities		1,193,179
Total investments in fixed maturity securities, Fair Value		12,413,636	12,725,806
Foreign government
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Debt Securities, Amortized Cost Basis		918,738	897,668
Available For Sale Securities Debt Securities Gross Unrealized Gain		65,344	62,223
Available For Sale Securities Debt Securities Gross Unrealized Losses		(16,932)	(18,065)
Available For Sale Securities Debt Securities Fair Value		967,150	941,826
Available-for-sale Securities, Debt Securities		967,150	941,826
Commercial Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Debt Securities, Amortized Cost Basis		68,378	74,479
Available For Sale Securities Debt Securities Gross Unrealized Gain		1,053	1,610
Available For Sale Securities Debt Securities Gross Unrealized Losses		(93)	(52)
Available For Sale Securities Debt Securities Fair Value		69,338	76,037
Available-for-sale Securities, Debt Securities		69,338	76,037
Residential Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Debt Securities, Amortized Cost Basis	[1]	1,085,961	1,201,924
Available For Sale Securities Debt Securities Gross Unrealized Gain	[1]	24,498	27,124
Available For Sale Securities Debt Securities Gross Unrealized Losses	[1]	(10,514)	(9,449)
Available For Sale Securities Debt Securities Fair Value	[1]	1,099,945	1,219,599
Available-for-sale Securities, Debt Securities	[1]	1,099,945	1,219,599
State and municipal
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Debt Securities, Amortized Cost Basis		4,133,971	4,137,866
Available For Sale Securities Debt Securities Gross Unrealized Gain		180,941	229,150
Available For Sale Securities Debt Securities Gross Unrealized Losses		(16,061)	(4,020)
Available For Sale Securities Debt Securities Fair Value		4,298,851	4,362,996
Available-for-sale Securities, Debt Securities		4,298,851	4,362,996
U.S. government and government agency
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Debt Securities, Amortized Cost Basis		691,250	773,192
Available For Sale Securities Debt Securities Gross Unrealized Gain		27,672	33,353
Available For Sale Securities Debt Securities Gross Unrealized Losses		(3,555)	(3,157)
Available For Sale Securities Debt Securities Fair Value		715,367	803,388
Available-for-sale Securities, Debt Securities		715,367	803,388
Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Debt Securities, Amortized Cost Basis		2,345,401	2,264,210
Available For Sale Securities Debt Securities Gross Unrealized Gain		91,768	111,841
Available For Sale Securities Debt Securities Gross Unrealized Losses		(8,386)	(2,084)
Available For Sale Securities Debt Securities Fair Value		2,428,783	2,373,967
Available-for-sale Securities, Debt Securities		2,428,783	2,373,967
Debt, State Government [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Debt Securities, Amortized Cost Basis		640,845	674,022
Available For Sale Securities Debt Securities Gross Unrealized Gain		25,694	37,615
Available For Sale Securities Debt Securities Gross Unrealized Losses		(6,113)	(787)
Available For Sale Securities Debt Securities Fair Value		660,426	710,850
Available-for-sale Securities, Debt Securities		660,426	710,850
Revenue Subject to Refund [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Debt Securities, Amortized Cost Basis		444,165	504,778
Available For Sale Securities Debt Securities Gross Unrealized Gain		28,606	35,619
Available For Sale Securities Debt Securities Gross Unrealized Losses		(133)	(289)
Available For Sale Securities Debt Securities Fair Value		472,638	540,108
Available-for-sale Securities, Debt Securities		472,638	540,108
Corporation [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Debt Securities, Amortized Cost Basis		419,572	413,234
Available For Sale Securities Debt Securities Gross Unrealized Gain		13,850	18,976
Available For Sale Securities Debt Securities Gross Unrealized Losses		(998)	(855)
Available For Sale Securities Debt Securities Fair Value		432,424	431,355
Available-for-sale Securities, Debt Securities		432,424	431,355
Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Debt Securities, Amortized Cost Basis		5,019,357	5,036,958
Available For Sale Securities Debt Securities Gross Unrealized Gain		157,924	187,960
Available For Sale Securities Debt Securities Gross Unrealized Losses		(33,428)	(24,781)
Available For Sale Securities Debt Securities Fair Value		5,143,853	5,200,137
Available-for-sale Securities, Debt Securities		5,143,853	5,200,137
Mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Debt Securities, Amortized Cost Basis		1,154,339	1,276,403
Available For Sale Securities Debt Securities Gross Unrealized Gain		25,551	28,734
Available For Sale Securities Debt Securities Gross Unrealized Losses		(10,607)	(9,501)
Available For Sale Securities Debt Securities Fair Value		1,169,283	1,295,636
Available-for-sale Securities, Debt Securities		1,169,283	1,295,636
Asset-backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Debt Securities, Amortized Cost Basis		1,644,366	2,019,032
Available For Sale Securities Debt Securities Gross Unrealized Gain		17,816	18,868
Available For Sale Securities Debt Securities Gross Unrealized Losses		(10,027)	(11,974)
Available For Sale Securities Debt Securities Fair Value		1,652,155	2,025,926
Available-for-sale Securities, Debt Securities		1,652,155	2,025,926
Industrial Property [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Debt Securities, Amortized Cost Basis		1,780,193	1,606,724
Available For Sale Securities Debt Securities Gross Unrealized Gain		96,890	117,206
Available For Sale Securities Debt Securities Gross Unrealized Losses		(10,238)	(5,131)
Available For Sale Securities Debt Securities Fair Value		1,866,845	1,718,799
Available-for-sale Securities, Debt Securities		1,866,845	1,718,799
Domestic Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Debt Securities, Amortized Cost Basis		1,296,370	1,140,801
Available For Sale Securities Debt Securities Gross Unrealized Gain		32,050	38,080
Available For Sale Securities Debt Securities Gross Unrealized Losses		(10,412)	(7,673)
Available For Sale Securities Debt Securities Fair Value		1,318,008	1,171,208
Available-for-sale Securities, Debt Securities		1,318,008	1,171,208
Public Utility, Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Debt Securities, Amortized Cost Basis		182,282	184,107
Available For Sale Securities Debt Securities Gross Unrealized Gain		10,412	12,436
Available For Sale Securities Debt Securities Gross Unrealized Losses		(2,212)	(1)
Available For Sale Securities Debt Securities Fair Value		190,482	196,542
Available-for-sale Securities, Debt Securities		190,482	196,542
Other Security Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Debt Securities, Amortized Cost Basis		116,146	86,294
Available For Sale Securities Debt Securities Gross Unrealized Gain		756	1,370
Available For Sale Securities Debt Securities Gross Unrealized Losses		(539)	(2)
Available For Sale Securities Debt Securities Fair Value		116,363	87,662
Available-for-sale Securities, Debt Securities		116,363	87,662
State and municipal
Schedule of Available-for-sale Securities [Line Items]
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment		75,066	72,901
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain		(15,029)	(17,501)
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss		0	0
Held-to-maturity Securities, Fair Value		90,095	90,402
Held-to-maturity Securities		75,066	72,901
Residential Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment		21,241	23,278
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain		(2,655)	(2,854)
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss		0	0
Held-to-maturity Securities, Fair Value		23,896	26,132
Held-to-maturity Securities		21,241	23,278
Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment		4,999	4,998
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain		(142)	(291)
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss		0	0
Held-to-maturity Securities, Fair Value		5,141	5,289
Held-to-maturity Securities		$ 4,999	$ 4,998

[1] Gross unrealized losses for residential mortgage-backed securities include $1,073,002 and $1,095,671 as of June 30, 2015 and December 31, 2014, respectively, related to the non-credit portion of other-than-temporary impairments (“OTTI”) recognized in accumulated other comprehensive income.

XML

Reinsurance Reinsurance (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Premiums Written
Written premiums, direct	$ 1,603,899	$ 1,580,639	$ 3,251,240	$ 3,145,827
Written premiums, assumed	207,499	191,762	411,963	431,841
Written premiums, ceded	(267,473)	(282,625)	(543,876)	(562,012)
Total net premiums written	1,543,925	1,489,776	3,119,327	3,015,656
Premiums Earned
Earned premiums, direct	1,545,983	1,449,152	3,070,719	2,830,724
Earned premiums, assumed	211,352	224,916	414,694	450,678
Earned premiums, ceded	(264,294)	(256,423)	(520,359)	(500,145)
Net premiums earned	1,493,041	1,417,645	2,965,054	2,781,257
Ceded losses incurred	131,928	89,569	250,319	190,253
Uncollectible reinsurance	1,000		1,000		$ 1,000
Fees and Commissions, Other	$ 40,169	$ 38,055	$ 83,820	$ 75,226

XML

Realized and Unrealized Investment Gains (Losses) (Change in Unrealized Gains (Losses) of Available For Sales Securities) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Realized and Unrealized Investment Gains Losses [Line Items]
Change in unrealized gains (losses) before income taxes and noncontrolling interests	$ (151,990)	$ 76,390	$ (127,454)	$ 188,680
Income tax benefit (expense)	52,370	(28,190)	44,125	(67,536)
Noncontrolling interests	(10)	(19)	12	(37)
Total change in unrealized gains	(99,630)	48,181	(83,317)	121,107
Debt Securities [Member]
Realized and Unrealized Investment Gains Losses [Line Items]
Change in unrealized gains (losses) before income taxes and noncontrolling interests	(147,792)	87,882	(105,312)	179,520
Debt Securities Previously Impaired [Member]
Realized and Unrealized Investment Gains Losses [Line Items]
Change in unrealized gains (losses) before income taxes and noncontrolling interests	15	194	23	753
Equity securities available for sale
Realized and Unrealized Investment Gains Losses [Line Items]
Change in unrealized gains (losses) before income taxes and noncontrolling interests	(6,779)	(17,870)	(13,624)	8,333
Investment funds
Realized and Unrealized Investment Gains Losses [Line Items]
Change in unrealized gains (losses) before income taxes and noncontrolling interests	$ 2,566	$ 6,184	$ (8,541)	$ 74

XML

Acquistions Acquisitions (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Business Acquisition [Line Items]
Significant Acquisitions and Disposals, Acquisition Costs or Sale Proceeds		$ 16,000
Assets of Disposal Group, Including Discontinued Operation		15,000
Goodwill	$ 150,682	150,944
Premiums and fees receivable	$ 1,766,654	1,651,088
After Market Original Equipment Manufacturer
Business Acquisition [Line Items]
Business Acquisition, Transaction Costs		83,000
Cash and cash equivalents		17,457
Real estate, furniture and equipment		669
Goodwill and other intangibles assets		79,646
Premiums and fees receivable		24,432
Other assets		2,590
Total assets acquired		124,794
Debt		0
Other liabilities assumed		(34,809)
Net assets acquired		82,878
London Acquisition, Inactive insurance Company, and Worldwide Supplier of After-market (OEM) Parts [Member]
Business Acquisition [Line Items]
Deferred Tax Liabilities, Net		$ (7,107)

XML

Per Share Data Per Share Data

6 Months Ended

Jun. 30, 2015

Earnings Per Share [Abstract]

Earnings Per Share

Per Share Data

The Company presents both basic and diluted net income per share (“EPS”) amounts. Basic EPS is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted EPS is based upon the weighted average number of common and common equivalent shares outstanding during the period and is calculated using the treasury stock method for stock incentive plans. Common equivalent shares are excluded from the computation in periods in which they have an anti-dilutive effect.

The weighted average number of common shares used in the computation of basic and diluted earnings per share was as follows:

	For the Three Months		For the Six Months
	Ended June 30,		Ended June 30,
(In thousands)	2015	2014	2015	2014
Basic	123,781	127,668	124,869	128,765
Diluted	129,988	133,304	131,228	134,323

XML

Securities In An Unrealized Loss Position Securities in an Unrealized Loss Position (Securities in an Unrealized Loss Position) (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Fair Value, Less than 12 Months	$ 3,030,389	$ 2,024,847
Gross Unrealized Losses, Less than 12 Months	52,287	20,681
Fair Value, 12 Months or Greater	625,695	870,357
Gross Unrealized Losses, 12 Months or Greater	43,248	48,461
Fair Value, Total	3,656,084	2,895,204
Gross Unrealized Losses, Total	95,535	69,142
U.S. government and government agency
Schedule of Available-for-sale Securities [Line Items]
Fair Value, Less than 12 Months	72,300	84,750
Gross Unrealized Losses, Less than 12 Months	1,656	522
Fair Value, 12 Months or Greater	73,593	84,850
Gross Unrealized Losses, 12 Months or Greater	1,899	2,635
Fair Value, Total	145,893	169,600
Gross Unrealized Losses, Total	3,555	3,157
State and municipal
Schedule of Available-for-sale Securities [Line Items]
Fair Value, Less than 12 Months	873,578	158,594
Gross Unrealized Losses, Less than 12 Months	12,783	631
Fair Value, 12 Months or Greater	108,782	150,284
Gross Unrealized Losses, 12 Months or Greater	3,278	3,389
Fair Value, Total	982,360	308,878
Gross Unrealized Losses, Total	16,061	4,020
Mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Fair Value, Less than 12 Months	222,473	75,739
Gross Unrealized Losses, Less than 12 Months	2,903	332
Fair Value, 12 Months or Greater	212,426	312,922
Gross Unrealized Losses, 12 Months or Greater	7,704	9,169
Fair Value, Total	434,899	388,661
Gross Unrealized Losses, Total	10,607	9,501
Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair Value, Less than 12 Months	1,669,868	1,586,238
Gross Unrealized Losses, Less than 12 Months	18,973	8,697
Fair Value, 12 Months or Greater	159,708	214,628
Gross Unrealized Losses, 12 Months or Greater	14,455	16,084
Fair Value, Total	1,829,576	1,800,866
Gross Unrealized Losses, Total	33,428	24,781
Foreign government
Schedule of Available-for-sale Securities [Line Items]
Fair Value, Less than 12 Months	131,227	76,471
Gross Unrealized Losses, Less than 12 Months	4,036	3,907
Fair Value, 12 Months or Greater	48,528	85,025
Gross Unrealized Losses, 12 Months or Greater	12,896	14,158
Fair Value, Total	179,755	161,496
Gross Unrealized Losses, Total	16,932	18,065
Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair Value, Less than 12 Months	2,969,446	1,981,792
Gross Unrealized Losses, Less than 12 Months	40,351	14,089
Fair Value, 12 Months or Greater	603,037	847,709
Gross Unrealized Losses, 12 Months or Greater	40,232	45,435
Fair Value, Total	3,572,483	2,829,501
Gross Unrealized Losses, Total	80,583	59,524
Preferred stocks
Schedule of Available-for-sale Securities [Line Items]
Fair Value, Less than 12 Months	13,584	27,126
Gross Unrealized Losses, Less than 12 Months	1,267	1,139
Fair Value, 12 Months or Greater	22,658	22,648
Gross Unrealized Losses, 12 Months or Greater	3,016	3,026
Fair Value, Total	36,242	49,774
Gross Unrealized Losses, Total	4,283	4,165
Equity securities available for sale
Schedule of Available-for-sale Securities [Line Items]
Fair Value, Less than 12 Months	60,943	43,055
Gross Unrealized Losses, Less than 12 Months	11,936	6,592
Fair Value, 12 Months or Greater	22,658	22,648
Gross Unrealized Losses, 12 Months or Greater	3,016	3,026
Fair Value, Total	83,601	65,703
Gross Unrealized Losses, Total	14,952	9,618
Common stocks
Schedule of Available-for-sale Securities [Line Items]
Fair Value, Less than 12 Months	47,359	15,929
Gross Unrealized Losses, Less than 12 Months	10,669	5,453
Fair Value, 12 Months or Greater	0	0
Gross Unrealized Losses, 12 Months or Greater	0	0
Fair Value, Total	47,359	15,929
Gross Unrealized Losses, Total	10,669	$ 5,453
Noninvestment Grade Investments at Loss Less than 5 Million [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair Value, Total	114,366
Noninvestment Grade Investments at Loss Less than 5 Million [Member] | Mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Fair Value, Total	24,150
Noninvestment Grade Investments at Loss Less than 5 Million [Member] | Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair Value, Total	$ 90,216

XML

Restricted Stock Units (Tables)

6 Months Ended

Jun. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary Of Restricted Stock Units Issued

A summary of RSUs issued in the six months ended June 30, 2015 and 2014 follows:

($ in thousands)	Units	Fair Value
Six months ended June 30,
2015	22,011	$	1,102
2014	25,950	$	1,079

XML

Per Share Data (Tables)

6 Months Ended

Jun. 30, 2015

Earnings Per Share [Abstract]

Schedule of Weighted Average Number of Shares [Table Text Block]

The weighted average number of common shares used in the computation of basic and diluted earnings per share was as follows:

	For the Three Months		For the Six Months
	Ended June 30,		Ended June 30,
(In thousands)	2015	2014	2015	2014
Basic	123,781	127,668	124,869	128,765
Diluted	129,988	133,304	131,228	134,323

XML

Industry Segments

6 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Industry Segments

Business Segments

The Company’s financial results are presented for the following reportable business segments, plus a corporate segment:

• Insurance-Domestic - commercial insurance business, including excess and surplus lines and admitted lines, primarily throughout the United States;

• Insurance-International - insurance business primarily in the United Kingdom, Continental Europe, South America, Canada, Scandinavia, and Australia; and

• Reinsurance-Global - reinsurance business on a facultative and treaty basis, primarily in the United States, United Kingdom, Continental Europe, Australia, and the Asia-Pacific Region.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies. Income tax expense and benefits are calculated based upon the Company’s overall effective tax rate.

Summary financial information about the Company's business segments is presented in the following tables:

	Revenues
(In thousands)	Earned Premiums		Investment Income		Other		Total		Pre-Tax Income (Loss)			Net Income (Loss) to Common Stockholders
Three months ended June 30, 2015:
Insurance-Domestic	$	1,159,653	$	93,114	$	24,385	$	1,277,152	$	175,953		$	120,578
Insurance-International	191,729		10,150		—		201,879		7,517			5,518
Reinsurance-Global	141,659		18,066		—		159,725		27,122			18,827
Corporate and eliminations (1)	—		6,253		117,199		123,452		(59,962		)	(39,799		)
Net investment gains	—		—		27,557		27,557		27,557			17,911
Total	$	1,493,041	$	127,583	$	169,141	$	1,789,765	$	178,187		$	123,035
Three months ended June 30, 2014:
Insurance-Domestic	$	1,041,745	$	103,073	$	26,985	$	1,171,803	$	176,855		$	121,834
Insurance-International	201,868		11,276		—		213,144		11,510			8,253
Reinsurance-Global	174,032		17,608		—		191,640		25,866			18,025
Corporate and eliminations (1)	—		6,772		104,462		111,234		(59,945		)	(39,110		)
Net investment gains	—		—		109,168		109,168		109,168			70,959
Total	$	1,417,645	$	138,729	$	240,615	$	1,796,989	$	263,454		$	179,961
Six months ended June 30, 2015
Insurance-Domestic	$	2,277,195	$	175,766	$	49,960	$	2,502,921	$	342,819		$	235,488
Insurance-International	385,463		26,582		—		412,045		28,820			20,647
Reinsurance-Global	302,396		35,107		—		337,503		47,384			33,327
Corporate and eliminations (1)	—		14,367		221,007		235,374		(118,720		)	(78,410		)
Net investment gains	—		—		46,601		46,601		46,601			30,290
Total	$	2,965,054	$	251,822	$	317,568	$	3,534,444	$	346,904		$	241,342
Six months ended June 30, 2014:
Insurance-Domestic	$	2,045,252	$	221,210	$	55,751	$	2,322,213	$	379,040		$	259,870
Insurance-International	387,192		27,928		—		415,120		29,257			20,721
Reinsurance-Global	348,813		45,186		—		393,999		57,940			40,417
Corporate and eliminations (1)	—		13,116		197,525		210,641		(117,120		)	(76,623		)
Net investment gains	—		—		161,922		161,922		161,922			105,249
Total	$	2,781,257	$	307,440	$	415,198	$	3,503,895	$	511,039		$	349,634

________

(1) Corporate and eliminations represent corporate revenues and expenses that are not allocated to business segments.

Identifiable assets by segment are as follows:

(In thousands)	June 30, 2015		December 31, 2014
Insurance-Domestic	$	16,105,299	$	16,036,513
Insurance-International	1,854,074		1,876,347
Reinsurance-Global	2,532,001		2,708,090
Corporate and eliminations	1,198,435		1,058,289
Total	$	21,689,809	$	21,679,239

Net premiums earned by major line of business are as follows:

	For the Three Months				For the Six Months
	Ended June 30,				Ended June 30,
(In thousands)	2015		2014		2015		2014
Insurance-Domestic:
Other liability	$	379,445	$	362,074	$	751,484	$	701,707
Workers’ compensation	325,123		270,212		617,740		533,244
Short-tail lines	229,167		215,506		456,893		420,272
Commercial automobile	138,511		127,102		273,468		251,470
Professional liability	87,407		66,851		177,610		138,559
Total	1,159,653		1,041,745		2,277,195		2,045,252
Insurance-International:
Other liability	21,929		22,956		46,794		42,331
Workers’ compensation	22,673		17,241		44,794		34,566
Short-tail lines	93,992		106,428		189,356		202,702
Commercial automobile	31,498		29,649		62,101		57,242
Professional liability	21,637		25,594		42,418		50,351
Total	191,729		201,868		385,463		387,192
Reinsurance-Global:
Casualty	98,448		124,550		211,264		250,153
Property	43,211		49,482		91,132		98,660
Total	141,659		174,032		302,396		348,813
Total	$	1,493,041	$	1,417,645	$	2,965,054	$	2,781,257

XML

Investment Funds Investment Funds (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Ownership Percentage	25.80%
Investment funds	$ 1,123,829		$ 1,211,401
Income (Loss) from Investment Funds	27,912	$ 76,155
Alternative Investments, Fair Value Disclosure	457,000
Real estate
Schedule of Equity Method Investments [Line Items]
Investment funds	506,774		466,703
Income (Loss) from Investment Funds	42,337	16,482
Energy
Schedule of Equity Method Investments [Line Items]
Investment funds	113,779		152,056
Income (Loss) from Investment Funds	(27,484)	12,596
Arbitrage
Schedule of Equity Method Investments [Line Items]
Investment funds	72,752		282,335
Income (Loss) from Investment Funds	(590)	8,231
Other funds
Schedule of Equity Method Investments [Line Items]
Investment funds	430,524		$ 310,307
Income (Loss) from Investment Funds	13,649	$ 38,846
Equity Method Investee [Member]
Schedule of Equity Method Investments [Line Items]
Investment funds	$ 45,000

XML

Industry Segments (Tables)

6 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Financial Information Of Company Operating Segments

	Revenues
(In thousands)	Earned Premiums		Investment Income		Other		Total		Pre-Tax Income (Loss)			Net Income (Loss) to Common Stockholders
Three months ended June 30, 2015:
Insurance-Domestic	$	1,159,653	$	93,114	$	24,385	$	1,277,152	$	175,953		$	120,578
Insurance-International	191,729		10,150		—		201,879		7,517			5,518
Reinsurance-Global	141,659		18,066		—		159,725		27,122			18,827
Corporate and eliminations (1)	—		6,253		117,199		123,452		(59,962		)	(39,799		)
Net investment gains	—		—		27,557		27,557		27,557			17,911
Total	$	1,493,041	$	127,583	$	169,141	$	1,789,765	$	178,187		$	123,035
Three months ended June 30, 2014:
Insurance-Domestic	$	1,041,745	$	103,073	$	26,985	$	1,171,803	$	176,855		$	121,834
Insurance-International	201,868		11,276		—		213,144		11,510			8,253
Reinsurance-Global	174,032		17,608		—		191,640		25,866			18,025
Corporate and eliminations (1)	—		6,772		104,462		111,234		(59,945		)	(39,110		)
Net investment gains	—		—		109,168		109,168		109,168			70,959
Total	$	1,417,645	$	138,729	$	240,615	$	1,796,989	$	263,454		$	179,961
Six months ended June 30, 2015
Insurance-Domestic	$	2,277,195	$	175,766	$	49,960	$	2,502,921	$	342,819		$	235,488
Insurance-International	385,463		26,582		—		412,045		28,820			20,647
Reinsurance-Global	302,396		35,107		—		337,503		47,384			33,327
Corporate and eliminations (1)	—		14,367		221,007		235,374		(118,720		)	(78,410		)
Net investment gains	—		—		46,601		46,601		46,601			30,290
Total	$	2,965,054	$	251,822	$	317,568	$	3,534,444	$	346,904		$	241,342
Six months ended June 30, 2014:
Insurance-Domestic	$	2,045,252	$	221,210	$	55,751	$	2,322,213	$	379,040		$	259,870
Insurance-International	387,192		27,928		—		415,120		29,257			20,721
Reinsurance-Global	348,813		45,186		—		393,999		57,940			40,417
Corporate and eliminations (1)	—		13,116		197,525		210,641		(117,120		)	(76,623		)
Net investment gains	—		—		161,922		161,922		161,922			105,249
Total	$	2,781,257	$	307,440	$	415,198	$	3,503,895	$	511,039		$	349,634

________

(1) Corporate and eliminations represent corporate revenues and expenses that are not allocated to business segments.

Identifiable Assets By Segment

Identifiable assets by segment are as follows:

(In thousands)	June 30, 2015		December 31, 2014
Insurance-Domestic	$	16,105,299	$	16,036,513
Insurance-International	1,854,074		1,876,347
Reinsurance-Global	2,532,001		2,708,090
Corporate and eliminations	1,198,435		1,058,289
Total	$	21,689,809	$	21,679,239

Net Premiums Earned By Major Line Of Business

Net premiums earned by major line of business are as follows:

	For the Three Months				For the Six Months
	Ended June 30,				Ended June 30,
(In thousands)	2015		2014		2015		2014
Insurance-Domestic:
Other liability	$	379,445	$	362,074	$	751,484	$	701,707
Workers’ compensation	325,123		270,212		617,740		533,244
Short-tail lines	229,167		215,506		456,893		420,272
Commercial automobile	138,511		127,102		273,468		251,470
Professional liability	87,407		66,851		177,610		138,559
Total	1,159,653		1,041,745		2,277,195		2,045,252
Insurance-International:
Other liability	21,929		22,956		46,794		42,331
Workers’ compensation	22,673		17,241		44,794		34,566
Short-tail lines	93,992		106,428		189,356		202,702
Commercial automobile	31,498		29,649		62,101		57,242
Professional liability	21,637		25,594		42,418		50,351
Total	191,729		201,868		385,463		387,192
Reinsurance-Global:
Casualty	98,448		124,550		211,264		250,153
Property	43,211		49,482		91,132		98,660
Total	141,659		174,032		302,396		348,813
Total	$	1,493,041	$	1,417,645	$	2,965,054	$	2,781,257

XML

Acquistions Acquisitions (Tables)

6 Months Ended

Jun. 30, 2015

Business Combinations [Abstract]

Summary of fair value of net assets acquired and liabilities assumed

The following table summarizes the estimated fair value of net assets acquired and liabilities assumed for business combinations completed in 2014:

(In thousands)	2014
Cash and cash equivalents	$	17,457
Real estate, furniture and equipment	669
Goodwill and other intangibles assets	79,646
Premium and service fee receivable	24,432
Other assets	2,590
Total assets acquired	124,794
Deferred federal income tax	(7,107		)
Debt	—
Other liabilities assumed	(34,809		)
Net assets acquired	$	82,878

XML

Statements of Comprehensive Income (Loss) Statements of Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2014

Equity [Abstract]

Components of changes in accumulated other comprehensive income (loss)

The following table presents the components of the changes in accumulated other comprehensive income (loss) ("AOCI"):

(In thousands)	Unrealized Investment Gains (Losses)				Currency Translation Adjustments			Net Pension Asset		Accumulated Other Comprehensive Income (Loss)
As of and for the six months ended June 30, 2015:
Changes in AOCI
Beginning of period	$	306,199			$	(122,649	)	$	—	$	183,550
Other comprehensive income (loss) before reclassifications	(73,021		)		(14,178		)	—		(87,199		)
Amounts reclassified from AOCI	(10,308		)		—			—		(10,308		)
Other comprehensive income (loss)	(83,329		)		(14,178		)	—		(97,507		)
Unrealized investment gain related to non-controlling interest	12				—			—		12
End of period	$	222,882			$	(136,827	)	$	—	$	86,055
Amounts reclassified from AOCI
Pre-tax	$	(15,858	)	(1)	$	—		$	—	$	(15,858	)
Tax effect (2)	5,550				—			—		5,550
After-tax amounts reclassified	$	(10,308	)		$	—		$	—	$	(10,308	)
Other comprehensive income (loss)
Pre-tax	$	(127,455	)		$	(14,178	)	$	—	$	(141,633	)
Tax effect	44,126				—			—		44,126
Other comprehensive income (loss)	$	(83,329	)		$	(14,178	)	$	—	$	(97,507	)
As of and for the three months ended June 30, 2015:
Changes in AOCI
Beginning of period	$	322,512			$	(170,454	)	$	—	$	152,058
Other comprehensive income (loss) before reclassifications	(97,613		)		33,627			—		(63,986		)
Amounts reclassified from AOCI	(2,007		)		—			—		(2,007		)
Other comprehensive income (loss)	(99,620		)		33,627			—		(65,993		)
Unrealized investment gain related to non-controlling interest	(10		)		—			—		(10		)
End of period	$	222,882			$	(136,827	)	$	—	$	86,055
Amounts reclassified from AOCI
Pre-tax	$	(3,087	)	(1)	$	—		$	—	$	(3,087	)
Tax effect (2)	1,080				—			—		1,080
After-tax amounts reclassified	$	(2,007	)		$	—		$	—	$	(2,007	)
Other comprehensive income (loss)
Pre-tax	$	(151,991	)		$	33,627		$	—	$	(118,364	)
Tax effect	52,371				—			—		52,371
Other comprehensive income (loss)	$	(99,620	)		$	33,627		$	—	$	(65,993	)

	Unrealized Investment Gains (Losses)				Currency Translation Adjustments			Net Pension Asset				Accumulated Other Comprehensive Income (Loss)
(In thousands)
As of and for the six months ended June 30, 2014:
Changes in AOCI
Beginning of period	$	256,566			$	(60,524	)	$	(6,651	)		$	189,391
Other comprehensive income (loss) before reclassifications	140,289				20,790			—				161,079
Amounts reclassified from AOCI	(19,145		)		—			2,611				(16,534		)
Other comprehensive income (loss)	121,144				20,790			2,611				144,545
Unrealized investment loss related to non-controlling interest	(37		)		—			—				(37		)
End of period	$	377,673			$	(39,734	)	$	(4,040	)		$	333,899
Amounts reclassified from AOCI
Pre-tax	$	(29,454	)	(1)	$	—		$	4,017		(3)	$	(25,437	)
Tax effect (2)	10,309				—			(1,406		)		8,903
After-tax amounts reclassified	$	(19,145	)		$	—		$	2,611			$	(16,534	)
Other comprehensive income (loss)
Pre-tax	$	188,680			$	20,790		$	4,017			$	213,487
Tax effect	(67,536		)		—			(1,406		)		(68,942		)
Other comprehensive income (loss)	$	121,144			$	20,790		$	2,611			$	144,545
As of and for the three months ended June 30, 2014:
Changes in AOCI
Beginning of period	$	329,492			$	(64,549	)	$	(6,060	)		$	258,883
Other comprehensive income (loss) before reclassifications	62,846				24,815			—				87,661
Amounts reclassified from AOCI	(14,646		)		—			2,020				(12,626		)
Other comprehensive income (loss)	48,200				24,815			2,020				75,035
Unrealized investment loss related to non-controlling interest	(19		)		—			—				(19		)
End of period	$	377,673			$	(39,734	)	$	(4,040	)		$	333,899
Amounts reclassified from AOCI
Pre-tax	$	(22,532	)	(1)	$	—		$	3,108		(3)	$	(19,424	)
Tax effect (2)	7,886				—			(1,088		)		6,798
After-tax amounts reclassified	$	(14,646	)		$	—		$	2,020			$	(12,626	)
Other comprehensive income (loss)
Pre-tax	$	76,390			$	24,815		$	3,108			$	104,313
Tax effect	(28,190		)		—			(1,088		)		(29,278		)
Other comprehensive income (loss)	$	48,200			$	24,815		$	2,020			$	75,035

_______________

(1) Net investment gains in the consolidated statements of income.

(2) Income tax expense in the consolidated statements of income.

(3) Other operating costs and expenses in the consolidated statements of income.

XML

General General

6 Months Ended

Jun. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

General

The accompanying unaudited consolidated financial statements of W. R. Berkley Corporation and its subsidiaries (the “Company”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all the information and notes required by GAAP for annual financial statements. The unaudited consolidated financial statements reflect all adjustments, consisting only of normal recurring items, which are necessary to present fairly the Company’s financial position and results of operations on a basis consistent with the prior audited consolidated financial statements. Operating results for interim periods are not necessarily indicative of the results that may be expected for the year. All significant intercompany accounts and transactions have been eliminated. The preparation of financial statements requires the use of management estimates. For further information related to a description of areas of judgment and estimates and other information necessary to understand the Company’s financial position and results of operations, refer to the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. Reclassifications have been made in the 2014 financial statements as originally reported to conform to the presentation of the 2015 financial statements.

The income tax provision has been computed based on the Company’s estimated annual effective tax rate. The effective tax rate for the quarter differs from the federal income tax rate of 35% principally because of tax-exempt investment income.

XML

Investments In Fixed Maturity Securities Investments in Fixed Maturity Securities (Tables)

6 Months Ended

Jun. 30, 2015

Schedule of Marketable Securities [Line Items]

Amortized cost and fair value of fixed maturity securities by contractual maturity

The amortized cost and fair value of fixed maturity securities at June 30, 2015, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because certain issuers may have the right to call or prepay obligations.

(In thousands)	Amortized Cost		Fair Value
Due in one year or less	$	818,912	$	825,584
Due after one year through five years	3,934,376		4,091,220
Due after five years through ten years	3,612,449		3,754,639
Due after ten years	2,477,644		2,549,014
Mortgage-backed securities	1,175,580		1,193,179
Total	$	12,018,961	$	12,413,636

Debt Securities [Member]

Schedule of Marketable Securities [Line Items]

Schedule of investments in fixed maturity securities

At June 30, 2015 and December 31, 2014, investments in fixed maturity securities were as follows:

(In thousands)	Amortized Cost		Gross Unrealized					Fair Value		Carrying Value
			Gains		Losses
June 30, 2015
Held to maturity:
State and municipal	$	75,066	$	15,029	$	—		$	90,095	$	75,066
Residential mortgage-backed	21,241		2,655		—			23,896		21,241
Corporate	4,999		142		—			5,141		4,999
Total held to maturity	101,306		17,826		—			119,132		101,306
Available for sale:
U.S. government and government agency	691,250		27,672		(3,555		)	715,367		715,367
State and municipal:
Special revenue	2,345,401		91,768		(8,386		)	2,428,783		2,428,783
State general obligation	640,845		25,694		(6,113		)	660,426		660,426
Pre-refunded	444,165		28,606		(133		)	472,638		472,638
Corporate backed	419,572		13,850		(998		)	432,424		432,424
Local general obligation	283,988		21,023		(431		)	304,580		304,580
Total state and municipal	4,133,971		180,941		(16,061		)	4,298,851		4,298,851
Mortgage-backed securities:
Residential (1)	1,085,961		24,498		(10,514		)	1,099,945		1,099,945
Commercial	68,378		1,053		(93		)	69,338		69,338
Total mortgage-backed securities	1,154,339		25,551		(10,607		)	1,169,283		1,169,283
Corporate:
Asset-backed	1,644,366		17,816		(10,027		)	1,652,155		1,652,155
Industrial	1,780,193		96,890		(10,238		)	1,866,845		1,866,845
Financial	1,296,370		32,050		(10,412		)	1,318,008		1,318,008
Utilities	182,282		10,412		(2,212		)	190,482		190,482
Other	116,146		756		(539		)	116,363		116,363
Total corporate	5,019,357		157,924		(33,428		)	5,143,853		5,143,853
Foreign	918,738		65,344		(16,932		)	967,150		967,150
Total available for sale	11,917,655		457,432		(80,583		)	12,294,504		12,294,504
Total investments in fixed maturity securities	$	12,018,961	$	475,258	$	(80,583	)	$	12,413,636	$	12,395,810

(In thousands)	Amortized Cost		Gross Unrealized					Fair Value		Carrying Value
			Gains		Losses
December 31, 2014
Held to maturity:
State and municipal	$	72,901	$	17,501	$	—		$	90,402	$	72,901
Residential mortgage-backed	23,278		2,854		—			26,132		23,278
Corporate	4,998		291		—			5,289		4,998
Total held to maturity	101,177		20,646		—			121,823		101,177
Available for sale:
U.S. government and government agency	773,192		33,353		(3,157		)	803,388		803,388
State and municipal:
Special revenue	2,264,210		111,841		(2,084		)	2,373,967		2,373,967
State general obligation	674,022		37,615		(787		)	710,850		710,850
Pre-refunded	504,778		35,619		(289		)	540,108		540,108
Corporate backed	413,234		18,976		(855		)	431,355		431,355
Local general obligation	281,622		25,099		(5		)	306,716		306,716
Total state and municipal	4,137,866		229,150		(4,020		)	4,362,996		4,362,996
Mortgage-backed securities:
Residential (1)	1,201,924		27,124		(9,449		)	1,219,599		1,219,599
Commercial	74,479		1,610		(52		)	76,037		76,037
Total mortgage-backed securities	1,276,403		28,734		(9,501		)	1,295,636		1,295,636
Corporate:
Asset-backed	2,019,032		18,868		(11,974		)	2,025,926		2,025,926
Industrial	1,606,724		117,206		(5,131		)	1,718,799		1,718,799
Financial	1,140,801		38,080		(7,673		)	1,171,208		1,171,208
Utilities	184,107		12,436		(1		)	196,542		196,542
Other	86,294		1,370		(2		)	87,662		87,662
Total corporate	5,036,958		187,960		(24,781		)	5,200,137		5,200,137
Foreign	897,668		62,223		(18,065		)	941,826		941,826
Total available for sale	12,122,087		541,420		(59,524		)	12,603,983		12,603,983
Total investments in fixed maturity securities	$	12,223,264	$	562,066	$	(59,524	)	$	12,725,806	$	12,705,160

____________

(1) Gross unrealized losses for residential mortgage-backed securities include $1,073,002 and $1,095,671 as of June 30, 2015 and December 31, 2014, respectively, related to the non-credit portion of other-than-temporary impairments (“OTTI”) recognized in accumulated other comprehensive income.

XML

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2015

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Assets And Liabilities Measured At Fair value, On A Recurring Basis

The following tables present the assets and liabilities measured at fair value, on a recurring basis, as of June 30, 2015 and December 31, 2014 by level:

(In thousands)	Total		Level 1		Level 2		Level 3
June 30, 2015
Assets:
Fixed maturity securities available for sale:
U.S. government and government agency	$	715,367	$	—	$	715,367	$	—
State and municipal	4,298,851		—		4,298,851		—
Mortgage-backed securities	1,169,283		—		1,169,283		—
Corporate	5,143,853		—		5,143,699		154
Foreign government	967,150		—		967,150		—
Total fixed maturity securities available for sale	12,294,504		—		12,294,350		154
Equity securities available for sale:
Common stocks	59,191		50,172		—		9,019
Preferred stocks	94,322		—		90,647		3,675
Total equity securities available for sale	153,513		50,172		90,647		12,694
Arbitrage trading account	830,212		387,575		441,580		1,057
Total	$	13,278,229	$	437,747	$	12,826,577	$	13,905
Liabilities:
Securities sold but not yet purchased	$	155,484	$	155,428	$	56	$	—
December 31, 2014
Assets:
Fixed maturity securities available for sale:
U.S. government and government agency	$	803,388	$	—	$	803,388	$	—
State and municipal	4,362,996		—		4,362,996		—
Mortgage-backed securities	1,295,636		—		1,295,636		—
Corporate	5,200,137		—		5,179,372		20,765
Foreign government	941,826		—		941,826		—
Total fixed maturity securities available for sale	12,603,983		—		12,583,218		20,765
Equity securities available for sale:
Common stocks	76,346		65,605		—		10,741
Preferred stocks	94,645		—		90,932		3,713
Total equity securities available for sale	170,991		65,605		90,932		14,454
Arbitrage trading account	450,648		295,047		154,881		720
Total	$	13,225,622	$	360,652	$	12,829,031	$	35,939
Liabilities:
Securities sold but not yet purchased	$	106,079	$	106,074	$	5	$	—

Summarize Changes In Level 3 Assets

The following tables summarize changes in Level 3 assets and liabilities for the six months ended June 30, 2015 and for the year ended December 31, 2014:

	Gains (Losses) Included in:
(In thousands)	Beginning Balance		Earnings			Other Comprehensive Income			Purchases		(Sales)			Paydowns/ Maturities			Transfers					Ending Balance
																	In		Out
Six months ended June 30, 2015
Assets:
Fixed maturities available for sale:
Corporate	$	20,765	$	15		$	180		$	—	$	—		$	(1,673	)	$	—	$	(19,133	)	$	154
Total	20,765		15			180			—		—			(1,673		)	—		(19,133		)	154
Equity securities available for sale:
Common stocks	10,741		—			(1,722		)	—		—			—			—		—			9,019
Preferred stocks	3,713		(38		)	—			—		—			—			—		—			3,675
Total	14,454		(38		)	(1,722		)	—		—			—			—		—			12,694
Arbitrage trading account	720		(437		)	—			72,640		(71,866		)	—			—		—			1,057
Total	$	35,939	$	(460	)	$	(1,542	)	$	72,640	$	(71,866	)	$	(1,673	)	$	—	$	(19,133	)	$	13,905
Liabilities:
Securities sold but not yet purchased	$	—	$	—		$	—		$	—	$	—		$	—		$	—	$	—		$	—
Year ended December 31, 2014:
Assets:
Fixed maturities available for sale:
Corporate	$	42,864	$	47		$	(3,711	)	$	238	$	(15,244	)	$	(3,429	)	$	—	$	—		$	20,765
Total	42,864		47			(3,711		)	238		(15,244		)	(3,429		)	—		—			20,765
Equity securities available for sale:
Common stocks	1,238		—			(911		)	11,343		(929		)	—			—		—			10,741
Preferred stocks	3,752		(17		)	—			3,430		(3,452		)	—			—		—			3,713
Total	4,990		(17		)	(911		)	14,773		(4,381		)	—			—		—			14,454
Arbitrage trading account	1,780		2,274			—			4,942		(14,073		)	—			9,064		(3,267		)	720
Total	$	49,634	$	2,304		$	(4,622	)	$	19,953	$	(33,698	)	$	(3,429	)	$	9,064	$	(3,267	)	$	35,939
Liabilities:
Securities sold but not yet purchased	$	—	$	(20	)	$	—		$	31	$	(11	)	$	—		$	—	$	—		$	—

XML

Investments in Equity Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Cost	$ 156,443	$ 160,295
Gross Unrealized, Gains	12,022	20,314
Gross Unrealized, Losses	(14,952)	(9,618)
Carrying and fair value of equity securities	153,513	170,991
Common stocks
Schedule of Available-for-sale Securities [Line Items]
Cost	69,860	69,870
Gross Unrealized, Gains	0	11,929
Gross Unrealized, Losses	(10,669)	(5,453)
Carrying and fair value of equity securities	59,191	76,346
Preferred stocks
Schedule of Available-for-sale Securities [Line Items]
Cost	86,583	90,425
Gross Unrealized, Gains	12,022	8,385
Gross Unrealized, Losses	(4,283)	(4,165)
Carrying and fair value of equity securities	$ 94,322	$ 94,645

XML

Industry Segments Industry Segments (Net Premiums Earned By Major Line of Business) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015		Jun. 30, 2014
Revenue from External Customer [Line Items]
Premiums Earned, Net	$ 1,493,041	$ 1,417,645	$ 2,965,054		$ 2,781,257
Insurance-Domestic Segment [Member]
Revenue from External Customer [Line Items]
Premiums Earned, Net	1,159,653	1,041,745	2,277,195		2,045,252
Insurance-Domestic Segment [Member] | Other Insurance Liabilities [Member]
Revenue from External Customer [Line Items]
Premiums Earned, Net	379,445	362,074	751,484		701,707
Insurance-Domestic Segment [Member] | Workers' Compensation [Member]
Revenue from External Customer [Line Items]
Premiums Earned, Net	325,123	270,212	617,740		533,244
Insurance-Domestic Segment [Member] | Property [Member]
Revenue from External Customer [Line Items]
Premiums Earned, Net	229,167	215,506	456,893	[1]	420,272	[1]
Insurance-Domestic Segment [Member] | Commercial Automobile [Member]
Revenue from External Customer [Line Items]
Premiums Earned, Net	138,511	127,102	273,468		251,470
Insurance-Domestic Segment [Member] | Products Liability [Member]
Revenue from External Customer [Line Items]
Premiums Earned, Net	87,407	66,851	177,610		138,559
Insurance-International Segment [Member]
Revenue from External Customer [Line Items]
Premiums Earned, Net	191,729	201,868	385,463		387,192
Insurance-International Segment [Member] | Other Insurance Liabilities [Member]
Revenue from External Customer [Line Items]
Premiums Earned, Net	21,929	22,956	46,794		42,331
Insurance-International Segment [Member] | Workers' Compensation [Member]
Revenue from External Customer [Line Items]
Premiums Earned, Net	22,673	17,241	44,794		34,566
Insurance-International Segment [Member] | Property [Member]
Revenue from External Customer [Line Items]
Premiums Earned, Net	93,992	106,428	189,356	[1]	202,702	[1]
Insurance-International Segment [Member] | Commercial Automobile [Member]
Revenue from External Customer [Line Items]
Premiums Earned, Net	31,498	29,649	62,101		57,242
Insurance-International Segment [Member] | Products Liability [Member]
Revenue from External Customer [Line Items]
Premiums Earned, Net	21,637	25,594	42,418		50,351
Reinsurance-Global Segment [Member]
Revenue from External Customer [Line Items]
Premiums Earned, Net	141,659	174,032	302,396		348,813
Reinsurance-Global Segment [Member] | Property [Member]
Revenue from External Customer [Line Items]
Premiums Earned, Net	43,211	49,482	91,132		98,660
Reinsurance-Global Segment [Member] | Casualty [Member]
Revenue from External Customer [Line Items]
Premiums Earned, Net	$ 98,448	$ 124,550	$ 211,264		$ 250,153

[1] For the Three Months For the Six Months Ended June 30, Ended June 30,(In thousands)2015 2014 2015 2014 Insurance-Domestic: Other liability$379,445 $362,074 $751,484 $701,707Workers’ compensation325,123 270,212 617,740 533,244Short-tail lines 229,167 215,506 456,893 420,272Commercial automobile138,511 127,102 273,468 251,470Professional liability87,407 66,851 177,610 138,559Total1,159,653 1,041,745 2,277,195 2,045,252 Insurance-International: Other liability21,929 22,956 46,794 42,331Workers’ compensation22,673 17,241 44,794 34,566Short-tail lines93,992 106,428 189,356 202,702Commercial automobile31,498 29,649 62,101 57,242Professional liability21,637 25,594 42,418 50,351Total191,729 201,868 385,463 387,192 Reinsurance-Global: Casualty98,448 124,550 211,264 250,153Property43,211 49,482 91,132 98,660Total141,659 174,032 302,396 348,813 Total$1,493,041 $1,417,645 $2,965,054 $2,781,257

XML

Consolidated Balance Sheet Consolidated Balance Sheet - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Assets [Abstract]
Fixed maturity securities	$ 12,395,810	$ 12,705,160
Loans receivable	153,513	170,991
Equity securities	830,212	450,648
Investment funds	1,123,829	1,211,401
Loans receivable	259,411	322,012
Real estate	820,257	731,612
Total investments	15,583,032	15,591,824
Cash and cash equivalents	756,368	674,441
Premiums and fees receivable	1,766,654	1,651,088
Due from reinsurers	1,533,267	1,503,441
Prepaid reinsurance premiums	415,672	395,748
Trading account receivables from brokers and clearing organizations	41,576	371,034
Deferred policy acquisition costs	521,312	488,525
Property, furniture and equipment	332,015	332,098
Federal and foreign income taxes	29,135	30,171
Goodwill	150,682	150,944
Accrued investment income	129,364	120,367
Other assets	430,732	369,558
Total assets	21,689,809	21,679,239
Liabilities:
Reserves for losses and loss expenses	10,622,374	10,369,701
Unearned premiums	3,190,144	3,026,732
Due to reinsurers	225,213	237,270
Trading account securities sold but not yet purchased	155,484	106,079
Other liabilities	776,207	859,736
Subordinated debentures	340,190	340,060
Senior notes and other debt	1,843,865	2,115,527
Total liabilities	$ 17,153,477	$ 17,055,105
Equity:
Authorized 5,000,000 shares; issued and outstanding - none
Authorized 500,000,000 shares, issued and outstanding, net of treasury shares, 122,481,580 and 126,748,836 shares, respectively	$ 47,024	$ 47,024
Additional paid-in capital	1,003,567	991,512
Retained earnings	5,945,305	5,732,410
Accumulated other comprehensive income	86,055	183,550
Treasury stock, at cost, 112,636,338 and 108,369,082 shares, respectively	2,579,764	2,364,551
Total stockholders’ equity	4,502,187	4,589,945
Noncontrolling interests	34,145	34,189
Total equity	4,536,332	4,624,134
Total liabilities and equity	$ 21,689,809	$ 21,679,239

XML

General General (Details)	6 Months Ended
	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Federal Income Tax Rate	35.00%

XML

Consolidated Statements of Stockholders' Equity Statement - USD ($) $ in Thousands	Total	Common stocks	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]	Accumulated Translation Adjustment [Member]	Accumulated Defined Benefit Plans Adjustment [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Treasury Stock [Member]	Noncontrolling Interest [Member]
Beginning and end of period at Dec. 31, 2013		$ 47,024	$ 967,440	$ 5,265,015	$ 256,566	$ (60,524)	$ (6,651)		$ (2,132,835)	$ 33,359
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Restricted stock units issued, net of tax			(5,692)
Stock incentive plans expensed			13,046
Net income before noncontrolling interests	$ 349,861			349,634						227
Dividends				(26,825)
Change in unrealized investment gains (loss), net of taxes	121,144				120,618
Unrealized gains on other-than-temporarily impaired securities					489
Change in unrealized currency translation adjustments	20,790					20,790
Change in net pension asset, net of taxes	2,611						2,611
Stock exercised/vested									5,667
Stock repurchased									(197,254)
Stock or Unit Option Plan Expense	594
Contributions (distributions)										1,222
Other comprehensive income (loss)	144,545					20,790	2,611	$ 144,545		37
End of period at Jun. 30, 2014			974,794	5,587,824	377,673	(39,734)	(4,040)	333,899	(2,323,828)	34,845
Beginning and end of period at Dec. 31, 2014	4,624,134	$ 47,024	991,512	5,732,410	306,199	(122,649)	0		(2,364,551)	34,189
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Restricted stock units issued, net of tax			(2,295)
Stock incentive plans expensed			14,350
Net income before noncontrolling interests	241,493			241,342						151
Dividends				(28,447)
Change in unrealized investment gains (loss), net of taxes	(83,329)				(83,332)
Unrealized gains on other-than-temporarily impaired securities					15
Change in unrealized currency translation adjustments	(14,178)					(14,178)
Change in net pension asset, net of taxes	0						0
Stock exercised/vested									2,296
Stock repurchased									(218,132)
Stock or Unit Option Plan Expense	623
Contributions (distributions)										(183)
Other comprehensive income (loss)	(97,507)					(14,178)	0	(97,507)		(12)
End of period at Jun. 30, 2015	$ 4,536,332		$ 1,003,567	$ 5,945,305	$ 222,882	$ (136,827)	$ 0	$ 86,055	$ (2,579,764)	$ 34,145

XML

Loans Receivable (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 9,500		$ 9,500		$ 14,200
Loans and Leases Receivable, Gross	259,411		259,411		322,012
Loans receivable	262,341		262,341		325,219
Valuation allowance, specific	75		75		115
Valuation allowance, general	2,311		2,311		2,371
Valuation allowance of loans receivable	2,386		2,386		2,486
Decrease in valuation allowance	(53)	$ 16	(100)	$ 479
Loans receivable charged off	0	$ 0	0	$ 0
Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	174,719		174,719		243,407
Loans receivable	177,648		177,648		245,112
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	84,692		84,692		78,605
Loans receivable	$ 84,693		$ 84,693		$ 80,107

XML

Investment Funds Investment Funds (Tables)

6 Months Ended

Jun. 30, 2015

Equity Method Investments and Joint Ventures [Abstract]

Schedule of Net Investment Funds

Investment funds consist of the following:

	Carrying Value as of				Income (Loss) from Investment Funds
	June 30,		December 31,		For the Six Months Ended June 30:
(In thousands)	2015		2014		2015			2014
Real estate	$	506,774	$	466,703	$	42,337		$	16,482
Energy	113,779		152,056		(27,484		)	12,596
Arbitrage	72,752		282,335		(590		)	8,231
Other funds	430,524		310,307		13,649			38,846
Total	$	1,123,829	$	1,211,401	$	27,912		$	76,155

XML

Fair Value Measurements (Assets and Liabilities Measured At Fair Value, On a Recurring Basis) (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Fair Value Measurements, Recurring and Nonrecurring Basis [Line Items]
Fixed maturity securities	$ 12,294,504	$ 12,603,983
Loans receivable	153,513	170,991
Arbitrage trading account	830,212	450,648
Level 1 | Fair Value, Measurements, Recurring [Member]
Fair Value Measurements, Recurring and Nonrecurring Basis [Line Items]
Fixed maturity securities	0	0
Loans receivable	50,172	65,605
Assets, fair value disclosure	437,747	360,652
Arbitrage trading account	387,575	295,047
Securities sold but not yet purchased	155,428	106,074
Level 1 | Fair Value, Measurements, Recurring [Member] | U.S. government and government agency
Fair Value Measurements, Recurring and Nonrecurring Basis [Line Items]
Fixed maturity securities	0	0
Level 1 | Fair Value, Measurements, Recurring [Member] | State and municipal
Fair Value Measurements, Recurring and Nonrecurring Basis [Line Items]
Fixed maturity securities	0	0
Level 1 | Fair Value, Measurements, Recurring [Member] | Mortgage-backed securities
Fair Value Measurements, Recurring and Nonrecurring Basis [Line Items]
Fixed maturity securities	0	0
Level 1 | Fair Value, Measurements, Recurring [Member] | Corporate
Fair Value Measurements, Recurring and Nonrecurring Basis [Line Items]
Fixed maturity securities	0	0
Level 1 | Fair Value, Measurements, Recurring [Member] | Foreign government
Fair Value Measurements, Recurring and Nonrecurring Basis [Line Items]
Fixed maturity securities	0	0
Level 1 | Fair Value, Measurements, Recurring [Member] | Common stocks
Fair Value Measurements, Recurring and Nonrecurring Basis [Line Items]
Loans receivable	50,172	65,605
Level 1 | Fair Value, Measurements, Recurring [Member] | Preferred stocks
Fair Value Measurements, Recurring and Nonrecurring Basis [Line Items]
Loans receivable	0	0
Level 2 | Fair Value, Measurements, Recurring [Member]
Fair Value Measurements, Recurring and Nonrecurring Basis [Line Items]
Fixed maturity securities	12,294,350	12,583,218
Loans receivable	90,647	90,932
Assets, fair value disclosure	12,826,577	12,829,031
Arbitrage trading account	441,580	154,881
Securities sold but not yet purchased	56	5
Level 2 | Fair Value, Measurements, Recurring [Member] | U.S. government and government agency
Fair Value Measurements, Recurring and Nonrecurring Basis [Line Items]
Fixed maturity securities	715,367	803,388
Level 2 | Fair Value, Measurements, Recurring [Member] | State and municipal
Fair Value Measurements, Recurring and Nonrecurring Basis [Line Items]
Fixed maturity securities	4,298,851	4,362,996
Level 2 | Fair Value, Measurements, Recurring [Member] | Mortgage-backed securities
Fair Value Measurements, Recurring and Nonrecurring Basis [Line Items]
Fixed maturity securities	1,169,283	1,295,636
Level 2 | Fair Value, Measurements, Recurring [Member] | Corporate
Fair Value Measurements, Recurring and Nonrecurring Basis [Line Items]
Fixed maturity securities	5,143,699	5,179,372
Level 2 | Fair Value, Measurements, Recurring [Member] | Foreign government
Fair Value Measurements, Recurring and Nonrecurring Basis [Line Items]
Fixed maturity securities	967,150	941,826
Level 2 | Fair Value, Measurements, Recurring [Member] | Common stocks
Fair Value Measurements, Recurring and Nonrecurring Basis [Line Items]
Loans receivable	0	0
Level 2 | Fair Value, Measurements, Recurring [Member] | Preferred stocks
Fair Value Measurements, Recurring and Nonrecurring Basis [Line Items]
Loans receivable	90,647	90,932
Level 3 | Fair Value, Measurements, Recurring [Member]
Fair Value Measurements, Recurring and Nonrecurring Basis [Line Items]
Fixed maturity securities	154	20,765
Loans receivable	12,694	14,454
Assets, fair value disclosure	13,905	35,939
Arbitrage trading account	1,057	720
Securities sold but not yet purchased	0	0
Level 3 | Fair Value, Measurements, Recurring [Member] | U.S. government and government agency
Fair Value Measurements, Recurring and Nonrecurring Basis [Line Items]
Fixed maturity securities	0	0
Level 3 | Fair Value, Measurements, Recurring [Member] | State and municipal
Fair Value Measurements, Recurring and Nonrecurring Basis [Line Items]
Fixed maturity securities	0	0
Level 3 | Fair Value, Measurements, Recurring [Member] | Mortgage-backed securities
Fair Value Measurements, Recurring and Nonrecurring Basis [Line Items]
Fixed maturity securities	0	0
Level 3 | Fair Value, Measurements, Recurring [Member] | Corporate
Fair Value Measurements, Recurring and Nonrecurring Basis [Line Items]
Fixed maturity securities	154	20,765
Level 3 | Fair Value, Measurements, Recurring [Member] | Foreign government
Fair Value Measurements, Recurring and Nonrecurring Basis [Line Items]
Fixed maturity securities	0	0
Level 3 | Fair Value, Measurements, Recurring [Member] | Common stocks
Fair Value Measurements, Recurring and Nonrecurring Basis [Line Items]
Loans receivable	9,019	10,741
Level 3 | Fair Value, Measurements, Recurring [Member] | Preferred stocks
Fair Value Measurements, Recurring and Nonrecurring Basis [Line Items]
Loans receivable	3,675	3,713
Fair Value | Fair Value, Measurements, Recurring [Member]
Fair Value Measurements, Recurring and Nonrecurring Basis [Line Items]
Fixed maturity securities	12,294,504	12,603,983
Loans receivable	153,513	170,991
Assets, fair value disclosure	13,278,229	13,225,622
Arbitrage trading account	830,212	450,648
Securities sold but not yet purchased	155,484	106,079
Fair Value | Fair Value, Measurements, Recurring [Member] | U.S. government and government agency
Fair Value Measurements, Recurring and Nonrecurring Basis [Line Items]
Fixed maturity securities	715,367	803,388
Fair Value | Fair Value, Measurements, Recurring [Member] | State and municipal
Fair Value Measurements, Recurring and Nonrecurring Basis [Line Items]
Fixed maturity securities	4,298,851	4,362,996
Fair Value | Fair Value, Measurements, Recurring [Member] | Mortgage-backed securities
Fair Value Measurements, Recurring and Nonrecurring Basis [Line Items]
Fixed maturity securities	1,169,283	1,295,636
Fair Value | Fair Value, Measurements, Recurring [Member] | Corporate
Fair Value Measurements, Recurring and Nonrecurring Basis [Line Items]
Fixed maturity securities	5,143,853	5,200,137
Fair Value | Fair Value, Measurements, Recurring [Member] | Foreign government
Fair Value Measurements, Recurring and Nonrecurring Basis [Line Items]
Fixed maturity securities	967,150	941,826
Fair Value | Fair Value, Measurements, Recurring [Member] | Common stocks
Fair Value Measurements, Recurring and Nonrecurring Basis [Line Items]
Loans receivable	59,191	76,346
Fair Value | Fair Value, Measurements, Recurring [Member] | Preferred stocks
Fair Value Measurements, Recurring and Nonrecurring Basis [Line Items]
Loans receivable	$ 94,322	$ 94,645

XML

Securities In An Unrealized Loss Position

6 Months Ended

Jun. 30, 2015

Investments [Abstract]

Securities in Unrealized Loss Position

Securities in an Unrealized Loss Position

The following tables summarize all securities in an unrealized loss position at June 30, 2015 and December 31, 2014 by the length of time those securities have been continuously in an unrealized loss position:

	Less Than 12 Months				12 Months or Greater				Total
(In thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
June 30, 2015
U.S. government and government agency	$	72,300	$	1,656	$	73,593	$	1,899	$	145,893	$	3,555
State and municipal	873,578		12,783		108,782		3,278		982,360		16,061
Mortgage-backed securities	222,473		2,903		212,426		7,704		434,899		10,607
Corporate	1,669,868		18,973		159,708		14,455		1,829,576		33,428
Foreign	131,227		4,036		48,528		12,896		179,755		16,932
Fixed maturity securities	2,969,446		40,351		603,037		40,232		3,572,483		80,583
Common stocks	47,359		10,669		—		—		47,359		10,669
Preferred stocks	13,584		1,267		22,658		3,016		36,242		4,283
Equity securities	60,943		11,936		22,658		3,016		83,601		14,952
Total	$	3,030,389	$	52,287	$	625,695	$	43,248	$	3,656,084	$	95,535
December 31, 2014
U.S. government and government agency	$	84,750	$	522	$	84,850	$	2,635	$	169,600	$	3,157
State and municipal	158,594		631		150,284		3,389		308,878		4,020
Mortgage-backed securities	75,739		332		312,922		9,169		388,661		9,501
Corporate	1,586,238		8,697		214,628		16,084		1,800,866		24,781
Foreign	76,471		3,907		85,025		14,158		161,496		18,065
Fixed maturity securities	1,981,792		14,089		847,709		45,435		2,829,501		59,524
Common stocks	15,929		5,453		—		—		15,929		5,453
Preferred stocks	27,126		1,139		22,648		3,026		49,774		4,165
Equity securities	43,055		6,592		22,648		3,026		65,703		9,618
Total	$	2,024,847	$	20,681	$	870,357	$	48,461	$	2,895,204	$	69,142

Fixed Maturity Securities – A summary of the Company’s non-investment grade fixed maturity securities that were in an unrealized loss position at June 30, 2015 is presented in the table below:

($ in thousands)	Number of Securities	Aggregate Fair Value		Gross Unrealized Loss
Mortgage-backed securities	7	$	24,150	$	1,605
Corporate	13	90,216		2,486
Total	20	$	114,366	$	4,091

For OTTI of fixed maturity securities that management does not intend to sell or, more likely than not, would not be required to sell, the portion of the decline in value considered to be due to credit factors is recognized in earnings and the portion of the decline in value considered to be due to non-credit factors is recognized in other comprehensive income. For the six months ended June 30, 2015 and 2014, there were no changes in the portion of impairments recognized in earnings for those securities that have been impaired due to both credit factors and non-credit factors.

The Company has evaluated its fixed maturity securities in an unrealized loss position and believes the unrealized losses are due primarily to temporary market and sector-related factors rather than to issuer-specific factors. None of these securities are delinquent or in default under financial covenants. Based on its assessment of these issuers, the Company expects them to continue to meet their contractual payment obligations as they become due and does not consider any of these securities to be OTTI.

Equity Securities – At June 30, 2015, there were eight equity securities in an unrealized loss position, with an aggregate fair value of $83.6 million and a gross unrealized loss of $15 million. Three of these equity securities are preferred stocks that are rated non-investment grade with an aggregate fair value of $3.6 million and a gross unrealized loss of $1.2 million. Based upon management’s view of the underlying value of these securities, the Company does not consider these equity securities to be OTTI.

Loans Receivable – The Company monitors the performance of its loans receivable, including current market conditions for each loan and the ability to collect principal and interest. For loans where the Company determines it is probable that the contractual terms will not be met, an analysis is performed and a valuation reserve is established, if necessary, with a charge to earnings. Loans receivable are reported net of a valuation reserve of $2 million and $3 million at June 30, 2015 and December 31, 2014, respectively.

XML

Real Estate Real Estate (Tables)

6 Months Ended

Jun. 30, 2015

Real Estate [Abstract]

Schedule of Real Estate Investments

Investment in real estate represents directly owned property held for investment, as follows:    

	Carrying Value
	June 30,		December 31,
(In thousands)	2015		2014
Properties in operation	$	209,219	$	196,980
Properties under development	611,038		534,632
Total	$	820,257	$	731,612

XML

Reinsurance Reinsurance

6 Months Ended

Jun. 30, 2015

Insurance [Abstract]

Reinsurance [Text Block]

Reinsurance

The following is a summary of reinsurance financial information:

	For the Three Months						For the Six Months
	Ended June 30,						Ended June 30,
(In thousands)	2015			2014			2015			2014
Written premiums:
Direct	$	1,603,899		$	1,580,639		$	3,251,240		$	3,145,827
Assumed	207,499			191,762			411,963			431,841
Ceded	(267,473		)	(282,625		)	(543,876		)	(562,012		)
Total net premiums written	$	1,543,925		$	1,489,776		$	3,119,327		$	3,015,656
Earned premiums:
Direct	$	1,545,983		$	1,449,152		$	3,070,719		$	2,830,724
Assumed	211,352			224,916			414,694			450,678
Ceded	(264,294		)	(256,423		)	(520,359		)	(500,145		)
Total net premiums earned	$	1,493,041		$	1,417,645		$	2,965,054		$	2,781,257
Ceded losses incurred	$	131,928		$	89,569		$	250,319		$	190,253
Ceded commissions earned	$	40,169		$	38,055		$	83,820		$	75,226

The Company reinsures a portion of its insurance exposures in order to reduce its net liability on individual risks and catastrophe losses. The Company also cedes premiums to state assigned risk plans and captive insurance companies. Estimated amounts due from reinsurers are reported net of reserves for uncollectible reinsurance of $1 million as of June 30, 2015 and December 31, 2014.

XML

Fair Value of Financial Instruments (Carrying Amounts and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Assets:
Equity securities	$ 830,212	$ 450,648
Loans receivable	262,341	325,219
Fair Value
Assets:
Fixed maturity securities	12,413,636	12,725,806
Equity securities available for sale	153,513	170,991
Equity securities	830,212	450,648
Loans receivable	262,341	325,219
Cash and cash equivalents	756,368	674,441
Trading account receivables from brokers and clearing organizations	41,576	371,034
Liabilities:
Trading account securities sold but not yet purchased	155,484	106,079
Subordinated debentures	338,660	332,640
Senior notes and other debt	2,025,469	2,344,292
Carrying Value
Assets:
Fixed maturity securities	12,395,810	12,705,160
Equity securities available for sale	153,513	170,991
Equity securities	830,212	450,648
Loans receivable	259,411	322,012
Cash and cash equivalents	756,368	674,441
Trading account receivables from brokers and clearing organizations	41,576	371,034
Due from broker fair value	39,795	23,133
Liabilities:
Trading account securities sold but not yet purchased	155,484	106,079
Subordinated debentures	340,190	340,060
Senior notes and other debt	$ 1,843,865	$ 2,115,527

XML

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
CASH FROM (USED IN) OPERATING ACTIVITIES:
Net income to common stockholders	$ 241,342	$ 349,634
Adjustments to reconcile net income to net cash from operating activities:
Net investment gains	(46,601)	(161,922)
Depreciation and amortization	42,267	50,832
Noncontrolling interests	151	227
Investment funds	(27,912)	(84,385)
Stock incentive plans	14,973	13,615
Change in:
Arbitrage trading account	(702)	(12,956)
Premiums and fees receivable	(133,227)	(197,004)
Reinsurance accounts	(60,595)	(57)
Deferred policy acquisition costs	(34,245)	(31,527)
Income taxes	48,929	7,742
Reserves for losses and loss expenses	285,204	172,759
Unearned premiums	174,108	297,721
Other	(170,809)	(150,056)
Net cash from operating activities	332,883	254,623
CASH FROM (USED IN) INVESTING ACTIVITIES:
Proceeds from sale of fixed maturity securities	794,106	513,281
Proceeds from sale of equity securities	23,547	112,590
Distributions from investment funds	129,181	211,974
Proceeds from maturities and prepayments of fixed maturity securities	1,534,982	1,214,221
Purchase of fixed maturity securities	(2,168,400)	(2,034,009)
Purchase of equity securities	(8,543)	(48,484)
Additions to real estate	(84,826)	(63,919)
SEC Schedule III, Real Estate Accumulated Depreciation, Real Estate Sold	0	343,723
Change in loans receivable	62,601	(312,071)
Net additions to property, furniture and equipment	(23,504)	(22,555)
Change in balances due to security brokers	18,298	28,313
Net cash from business sold	0	15,548
Net cash from (used in) investing activities	277,442	(41,388)
CASH USED IN FINANCING ACTIVITIES:
Repayment of senior notes and other debt	(275,788)	0
Proceeds from Issuance of Debt	3,749	4,988
Proceeds from Stock Options Exercised	1	53
Cash dividends to common stockholders	(28,447)	(26,825)
Purchase of common treasury shares	(218,132)	(197,254)
Other, net	(92)	1,365
Net cash used in financing activities	(518,709)	(217,673)
Net impact on cash due to change in foreign exchange rates	(9,689)	7,371
Net change in cash and cash equivalents	81,927	2,933
Cash and cash equivalents at beginning of year	674,441	839,738
Cash and cash equivalents at end of period	$ 756,368	$ 842,671

XML

Consolidated Balance Sheet Consolidated Balance Sheet (Parenthetical) - $ / shares	Jun. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Preferred stock, par value $.10 per share:	$ 0.1	$ 0.1
Preferred shares authorized	5,000,000	5,000,000
Preferred shares issued	0	0
Preferred shares outstanding	0	0
Common stock, par value $.20 per share:	$ 0.2	$ 0.2
Common shares authorized	500,000,000	500,000,000
Common shares issued	127,613,325	126,748,836
Common shares outstanding	127,613,325	126,748,836
Treasury stock issued at cost	107,504,593	108,369,082

XML

Net Investment Income Net Investment Income

6 Months Ended

Jun. 30, 2015

Income Statement [Abstract]

Net Investment Income

Net Investment Income

Net investment income consists of the following:

	For the Three Months						For the Six Months
	Ended June 30,						Ended June 30,
(In thousands)	2015			2014			2015			2014
Investment income (loss) earned on:
Fixed maturity securities, including cash and cash equivalents and loans receivable	$	105,030		$	107,760		$	213,159		$	214,658
Investment funds	21,851			22,356			27,912			76,155
Arbitrage trading account	(117		)	6,942			8,862			12,461
Equity securities available for sale	1,224			2,103			2,404			4,049
Real estate	2,114			3,063			4,881			6,165
Gross investment income	130,102			142,224			257,218			313,488
Investment expense	(2,519		)	(3,495		)	(5,396		)	(6,048		)
Net investment income	$	127,583		$	138,729		$	251,822		$	307,440

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Jul. 31, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	BERKLEY W R CORP
Entity Central Index Key	0000011544
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		123,366,093

XML

Investment Funds Investment Funds

6 Months Ended

Jun. 30, 2015

Equity Method Investments and Joint Ventures [Abstract]

Net Investment Income

Investment Funds

Investment funds consist of the following:

	Carrying Value as of				Income (Loss) from Investment Funds
	June 30,		December 31,		For the Six Months Ended June 30:
(In thousands)	2015		2014		2015			2014
Real estate	$	506,774	$	466,703	$	42,337		$	16,482
Energy	113,779		152,056		(27,484		)	12,596
Arbitrage	72,752		282,335		(590		)	8,231
Other funds	430,524		310,307		13,649			38,846
Total	$	1,123,829	$	1,211,401	$	27,912		$	76,155

The Company's share of the earnings or losses of investment funds is generally reported on a one-quarter lag in order to facilitate the timely completion of the Company's consolidated financial statements.

Other funds include private equity investments carried on the equity method of accounting, which includes a publicly traded common stock investment in HealthEquity, Inc. (HQY). Our ownership interest in HQY as of June 30, 2015 is 25.8% with a fair value of $457 million and a carrying value of $45 million.

XML

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
REVENUES:
Net premiums written	$ 1,543,925	$ 1,489,776	$ 3,119,327	$ 3,015,656
Change in net unearned premiums	(50,884)	(72,131)	(154,273)	(234,399)
Net premiums earned	1,493,041	1,417,645	2,965,054	2,781,257
Net investment income	127,583	138,729	251,822	307,440
Insurance service fees	35,942	26,922	72,460	55,625
Net realized investment gains	27,557	109,168	46,601	161,922
Revenues from wholly-owned investees	105,596	104,285	198,202	197,125
Other income	46	240	305	526
Total revenues	1,789,765	1,796,989	3,534,444	3,503,895
OPERATING COSTS AND EXPENSES:
Losses and loss expenses	906,235	867,778	1,806,943	1,689,873
Other operating costs and expenses	573,582	534,150	1,124,628	1,049,316
Expenses from wholly-owned investees	98,730	101,296	188,400	193,026
Interest expense	33,031	30,311	67,569	60,641
Total operating costs and expenses	1,611,578	1,533,535	3,187,540	2,992,856
Income before income taxes	178,187	263,454	346,904	511,039
Income tax expense	(55,138)	(83,277)	(105,411)	(161,178)
Net income before noncontrolling interests	123,049	180,177	241,493	349,861
Noncontrolling interests	(14)	(216)	(151)	(227)
Net income to common stockholders	$ 123,035	$ 179,961	$ 241,342	$ 349,634
NET INCOME PER SHARE:
Basic	$ 0.99	$ 1.41	$ 1.93	$ 2.72
Diluted	$ 0.95	$ 1.35	$ 1.84	$ 2.60

XML

Statements of Comprehensive Income (Loss) Statements of Comprehensive Income (Loss) (Notes)

6 Months Ended

Jun. 30, 2014

Equity [Abstract]

Comprehensive Income (Loss)

Statement of Comprehensive Income (Loss)

The following table presents the components of the changes in accumulated other comprehensive income (loss) ("AOCI"):

(In thousands)	Unrealized Investment Gains (Losses)				Currency Translation Adjustments			Net Pension Asset		Accumulated Other Comprehensive Income (Loss)
As of and for the six months ended June 30, 2015:
Changes in AOCI
Beginning of period	$	306,199			$	(122,649	)	$	—	$	183,550
Other comprehensive income (loss) before reclassifications	(73,021		)		(14,178		)	—		(87,199		)
Amounts reclassified from AOCI	(10,308		)		—			—		(10,308		)
Other comprehensive income (loss)	(83,329		)		(14,178		)	—		(97,507		)
Unrealized investment gain related to non-controlling interest	12				—			—		12
End of period	$	222,882			$	(136,827	)	$	—	$	86,055
Amounts reclassified from AOCI
Pre-tax	$	(15,858	)	(1)	$	—		$	—	$	(15,858	)
Tax effect (2)	5,550				—			—		5,550
After-tax amounts reclassified	$	(10,308	)		$	—		$	—	$	(10,308	)
Other comprehensive income (loss)
Pre-tax	$	(127,455	)		$	(14,178	)	$	—	$	(141,633	)
Tax effect	44,126				—			—		44,126
Other comprehensive income (loss)	$	(83,329	)		$	(14,178	)	$	—	$	(97,507	)
As of and for the three months ended June 30, 2015:
Changes in AOCI
Beginning of period	$	322,512			$	(170,454	)	$	—	$	152,058
Other comprehensive income (loss) before reclassifications	(97,613		)		33,627			—		(63,986		)
Amounts reclassified from AOCI	(2,007		)		—			—		(2,007		)
Other comprehensive income (loss)	(99,620		)		33,627			—		(65,993		)
Unrealized investment gain related to non-controlling interest	(10		)		—			—		(10		)
End of period	$	222,882			$	(136,827	)	$	—	$	86,055
Amounts reclassified from AOCI
Pre-tax	$	(3,087	)	(1)	$	—		$	—	$	(3,087	)
Tax effect (2)	1,080				—			—		1,080
After-tax amounts reclassified	$	(2,007	)		$	—		$	—	$	(2,007	)
Other comprehensive income (loss)
Pre-tax	$	(151,991	)		$	33,627		$	—	$	(118,364	)
Tax effect	52,371				—			—		52,371
Other comprehensive income (loss)	$	(99,620	)		$	33,627		$	—	$	(65,993	)

	Unrealized Investment Gains (Losses)				Currency Translation Adjustments			Net Pension Asset				Accumulated Other Comprehensive Income (Loss)
(In thousands)
As of and for the six months ended June 30, 2014:
Changes in AOCI
Beginning of period	$	256,566			$	(60,524	)	$	(6,651	)		$	189,391
Other comprehensive income (loss) before reclassifications	140,289				20,790			—				161,079
Amounts reclassified from AOCI	(19,145		)		—			2,611				(16,534		)
Other comprehensive income (loss)	121,144				20,790			2,611				144,545
Unrealized investment loss related to non-controlling interest	(37		)		—			—				(37		)
End of period	$	377,673			$	(39,734	)	$	(4,040	)		$	333,899
Amounts reclassified from AOCI
Pre-tax	$	(29,454	)	(1)	$	—		$	4,017		(3)	$	(25,437	)
Tax effect (2)	10,309				—			(1,406		)		8,903
After-tax amounts reclassified	$	(19,145	)		$	—		$	2,611			$	(16,534	)
Other comprehensive income (loss)
Pre-tax	$	188,680			$	20,790		$	4,017			$	213,487
Tax effect	(67,536		)		—			(1,406		)		(68,942		)
Other comprehensive income (loss)	$	121,144			$	20,790		$	2,611			$	144,545
As of and for the three months ended June 30, 2014:
Changes in AOCI
Beginning of period	$	329,492			$	(64,549	)	$	(6,060	)		$	258,883
Other comprehensive income (loss) before reclassifications	62,846				24,815			—				87,661
Amounts reclassified from AOCI	(14,646		)		—			2,020				(12,626		)
Other comprehensive income (loss)	48,200				24,815			2,020				75,035
Unrealized investment loss related to non-controlling interest	(19		)		—			—				(19		)
End of period	$	377,673			$	(39,734	)	$	(4,040	)		$	333,899
Amounts reclassified from AOCI
Pre-tax	$	(22,532	)	(1)	$	—		$	3,108		(3)	$	(19,424	)
Tax effect (2)	7,886				—			(1,088		)		6,798
After-tax amounts reclassified	$	(14,646	)		$	—		$	2,020			$	(12,626	)
Other comprehensive income (loss)
Pre-tax	$	76,390			$	24,815		$	3,108			$	104,313
Tax effect	(28,190		)		—			(1,088		)		(29,278		)
Other comprehensive income (loss)	$	48,200			$	24,815		$	2,020			$	75,035

_______________

(1) Net investment gains in the consolidated statements of income.

(2) Income tax expense in the consolidated statements of income.

(3) Other operating costs and expenses in the consolidated statements of income.

XML

Acquistions Acquisitions

6 Months Ended

Jun. 30, 2015

Business Combinations [Abstract]

Business Combination Disclosure

Acquisitions/Dispositions

In 2014, the Company acquired a specialty property and casualty insurance distribution company for $83 million. The fair values of the assets acquired and liabilities assumed have been estimated based on a valuation prepared by a third party. The estimated useful lives of the intangible assets acquired range from 7 years to 15 years, with approximately $10 million having an indefinite life.

In 2014, the Company sold an aviation-related business for $16 million. The business had a net carrying value of $15 million.

The following table summarizes the estimated fair value of net assets acquired and liabilities assumed for business combinations completed in 2014:

(In thousands)	2014
Cash and cash equivalents	$	17,457
Real estate, furniture and equipment	669
Goodwill and other intangibles assets	79,646
Premium and service fee receivable	24,432
Other assets	2,590
Total assets acquired	124,794
Deferred federal income tax	(7,107		)
Debt	—
Other liabilities assumed	(34,809		)
Net assets acquired	$	82,878

XML

Fair Value Measurements Fair Value Measurements

6 Months Ended

Jun. 30, 2015

Fair Value Disclosures [Abstract]

Fair Value Disclosures

Fair Value Measurements

The Company’s fixed maturity and equity securities classified as available for sale and its trading account securities are carried at fair value. Fair value is defined as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” The Company utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels, as follows:

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.  

Level 2 - Quoted prices for similar assets or valuations based on inputs that are observable.

Level 3 - Estimates of fair value based on internal pricing methodologies using unobservable inputs. Unobservable inputs are only used to measure fair value to the extent that observable inputs are not available.

Substantially all of the Company’s fixed maturity securities were priced by independent pricing services. The prices provided by the independent pricing services are estimated based on observable market data in active markets utilizing pricing models and processes, which may include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, sector groupings, matrix pricing and reference data. The pricing services may prioritize inputs differently on any given day for any security based on market conditions, and not all inputs are available for each security evaluation on any given day. The pricing services used by the Company have indicated that they will only produce an estimate of fair value if objectively verifiable information is available. The determination of whether markets are active or inactive is based upon the volume and level of activity for a particular asset class. The Company reviews the prices provided by pricing services for reasonableness and periodically performs independent price tests of a sample of securities to ensure proper valuation.

If prices from independent pricing services are not available for fixed maturity securities, the Company estimates the fair value. For Level 2 securities, the Company utilizes pricing models and processes which may include benchmark yields, sector groupings, matrix pricing, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, bids, offers and reference data. Where broker quotes are used, the Company generally requests two or more quotes and sets a price within the range of quotes received based on its assessment of the credibility of the quote and its own evaluation of the security. The Company generally does not adjust quotes received from brokers. For securities traded only in private negotiations, the Company determines fair value based primarily on the cost of such securities, which is adjusted to reflect prices of recent placements of securities of the same issuer, financial projections, credit quality and business developments of the issuer and other relevant information.

For Level 3 securities, the Company generally uses a discounted cash flow model to estimate the fair value of fixed maturity securities. The cash flow models are based upon assumptions as to prevailing credit spreads, interest rate and interest rate volatility, time to maturity and subordination levels. Projected cash flows are discounted at rates that are adjusted to reflect illiquidity, where appropriate.

The following tables present the assets and liabilities measured at fair value, on a recurring basis, as of June 30, 2015 and December 31, 2014 by level:

(In thousands)	Total		Level 1		Level 2		Level 3
June 30, 2015
Assets:
Fixed maturity securities available for sale:
U.S. government and government agency	$	715,367	$	—	$	715,367	$	—
State and municipal	4,298,851		—		4,298,851		—
Mortgage-backed securities	1,169,283		—		1,169,283		—
Corporate	5,143,853		—		5,143,699		154
Foreign government	967,150		—		967,150		—
Total fixed maturity securities available for sale	12,294,504		—		12,294,350		154
Equity securities available for sale:
Common stocks	59,191		50,172		—		9,019
Preferred stocks	94,322		—		90,647		3,675
Total equity securities available for sale	153,513		50,172		90,647		12,694
Arbitrage trading account	830,212		387,575		441,580		1,057
Total	$	13,278,229	$	437,747	$	12,826,577	$	13,905
Liabilities:
Securities sold but not yet purchased	$	155,484	$	155,428	$	56	$	—
December 31, 2014
Assets:
Fixed maturity securities available for sale:
U.S. government and government agency	$	803,388	$	—	$	803,388	$	—
State and municipal	4,362,996		—		4,362,996		—
Mortgage-backed securities	1,295,636		—		1,295,636		—
Corporate	5,200,137		—		5,179,372		20,765
Foreign government	941,826		—		941,826		—
Total fixed maturity securities available for sale	12,603,983		—		12,583,218		20,765
Equity securities available for sale:
Common stocks	76,346		65,605		—		10,741
Preferred stocks	94,645		—		90,932		3,713
Total equity securities available for sale	170,991		65,605		90,932		14,454
Arbitrage trading account	450,648		295,047		154,881		720
Total	$	13,225,622	$	360,652	$	12,829,031	$	35,939
Liabilities:
Securities sold but not yet purchased	$	106,079	$	106,074	$	5	$	—

There were no significant transfers between Levels 1 and 2 during the six months ended June 30, 2015 or during the year ended December 31, 2014.

The following tables summarize changes in Level 3 assets and liabilities for the six months ended June 30, 2015 and for the year ended December 31, 2014:

	Gains (Losses) Included in:
(In thousands)	Beginning Balance		Earnings			Other Comprehensive Income			Purchases		(Sales)			Paydowns/ Maturities			Transfers					Ending Balance
																	In		Out
Six months ended June 30, 2015
Assets:
Fixed maturities available for sale:
Corporate	$	20,765	$	15		$	180		$	—	$	—		$	(1,673	)	$	—	$	(19,133	)	$	154
Total	20,765		15			180			—		—			(1,673		)	—		(19,133		)	154
Equity securities available for sale:
Common stocks	10,741		—			(1,722		)	—		—			—			—		—			9,019
Preferred stocks	3,713		(38		)	—			—		—			—			—		—			3,675
Total	14,454		(38		)	(1,722		)	—		—			—			—		—			12,694
Arbitrage trading account	720		(437		)	—			72,640		(71,866		)	—			—		—			1,057
Total	$	35,939	$	(460	)	$	(1,542	)	$	72,640	$	(71,866	)	$	(1,673	)	$	—	$	(19,133	)	$	13,905
Liabilities:
Securities sold but not yet purchased	$	—	$	—		$	—		$	—	$	—		$	—		$	—	$	—		$	—
Year ended December 31, 2014:
Assets:
Fixed maturities available for sale:
Corporate	$	42,864	$	47		$	(3,711	)	$	238	$	(15,244	)	$	(3,429	)	$	—	$	—		$	20,765
Total	42,864		47			(3,711		)	238		(15,244		)	(3,429		)	—		—			20,765
Equity securities available for sale:
Common stocks	1,238		—			(911		)	11,343		(929		)	—			—		—			10,741
Preferred stocks	3,752		(17		)	—			3,430		(3,452		)	—			—		—			3,713
Total	4,990		(17		)	(911		)	14,773		(4,381		)	—			—		—			14,454
Arbitrage trading account	1,780		2,274			—			4,942		(14,073		)	—			9,064		(3,267		)	720
Total	$	49,634	$	2,304		$	(4,622	)	$	19,953	$	(33,698	)	$	(3,429	)	$	9,064	$	(3,267	)	$	35,939
Liabilities:
Securities sold but not yet purchased	$	—	$	(20	)	$	—		$	31	$	(11	)	$	—		$	—	$	—		$	—

During the six months ended June 30, 2015, four securities were transferred out of Level 3 where an observable price was available. During the year ended December 31, 2014, two securities were transferred into Level 3 where the quoted prices were no longer available. One of these securities was sold during the second quarter of 2014.

Fair Value of Financial Instruments

The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments:

	June 30, 2015				December 31, 2014
(In thousands)	Carrying Value		Fair Value		Carrying Value		Fair Value
Assets:
Fixed maturity securities	$	12,395,810	$	12,413,636	$	12,705,160	$	12,725,806
Equity securities available for sale	153,513		153,513		170,991		170,991
Arbitrage trading account	830,212		830,212		450,648		450,648
Loans receivable	259,411		262,341		322,012		325,219
Cash and cash equivalents	756,368		756,368		674,441		674,441
Trading account receivables from brokers and clearing organizations	41,576		41,576		371,034		371,034
Liabilities:
Due to broker	39,795		39,795		23,133		23,133
Trading account securities sold but not yet purchased	155,484		155,484		106,079		106,079
Subordinated debentures	340,190		338,660		340,060		332,640
Senior notes and other debt	1,843,865		2,025,469		2,115,527		2,344,292

The estimated fair values of the Company’s fixed maturity securities, equity securities available for sale and arbitrage trading account securities are based on various valuation techniques that rely on fair value measurements as described in Note 16 above. The fair value of loans receivable are estimated by using current institutional purchaser yield requirements for loans with similar credit characteristics, which is considered a Level 2 input. The fair value of the senior notes and other debt and the subordinated debentures is based on spreads for similar securities, which is considered a Level 2 input.

XML

Real Estate Real Estate

6 Months Ended

Jun. 30, 2015

Real Estate [Abstract]

Real Estate

Real Estate

Investment in real estate represents directly owned property held for investment, as follows:    

	Carrying Value
	June 30,		December 31,
(In thousands)	2015		2014
Properties in operation	$	209,219	$	196,980
Properties under development	611,038		534,632
Total	$	820,257	$	731,612

Properties in operation include a long-term ground lease in Washington, D.C. and an office building in West Palm Beach, Florida. Properties in operation are net of accumulated depreciation and amortization of $5,834,000 and $1,609,000 as of June 30, 2015 and December 31, 2014, respectively. Related depreciation expense was $4,264,000 and $3,219,000 for the six months ended June 30, 2015 and 2014, respectively. Future minimum rental income expected on operating leases relating to properties in operation is $5,741,234 in 2015, $11,456,555 in 2016, $11,499,945 in 2017, $10,832,715 in 2018, $7,839,368 in 2019, $5,867,788 in 2020 and $330,727,579 thereafter.

Properties under development include an office building in London, a mixed-use project in Washington D.C. and an office complex in New York City.

XML

Investments in Equity Securities

6 Months Ended

Jun. 30, 2015

Equity securities available for sale

Schedule of Available-for-sale Securities [Line Items]

Investments in Equity Securities

Investments in Equity Securities

At June 30, 2015 and December 31, 2014, investments in equity securities were as follows:

(In thousands)	Cost		Gross Unrealized					Fair Value		Carrying Value
			Gains		Losses
June 30, 2015
Common stocks	$	69,860	$	—	$	(10,669	)	$	59,191	$	59,191
Preferred stocks	86,583		12,022		(4,283		)	94,322		94,322
Total	$	156,443	$	12,022	$	(14,952	)	$	153,513	$	153,513
December 31, 2014
Common stocks	$	69,870	$	11,929	$	(5,453	)	$	76,346	$	76,346
Preferred stocks	90,425		8,385		(4,165		)	94,645		94,645
Total	$	160,295	$	20,314	$	(9,618	)	$	170,991	$	170,991

XML

Realized And Unrealized Investment Gains Realized and Unrealized Investment Gains (Loss) (Realized and unrealized investmetns gains(losses)) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Investments, Debt and Equity Securities [Abstract]
Fixed maturity securities, gains	$ 3,612	$ 1,941	$ 7,759	$ 4,003
Fixed maturity securities, losses	(484)	(464)	(1,561)	(2,062)
Equity securities available for sale	(42)	23,124	9,660	29,581
Investment funds	23,684	(1,076)	22,173	44,757
Real Estate Realized Gain (Loss) on Disposal	0	85,643	0	85,643
Other	787	0	8,570	0
Realized Gain (Loss) on Investments, Including Equity Method Investments, Excluding Other than Temporary Impairments and Allowances	27,557	109,168	46,601	161,922
Net investment gains	27,557	109,168	46,601	161,922
Income tax expense	(9,645)	(38,208)	(16,311)	(56,673)
Total after-tax realized investment gains	$ 17,912	$ 70,960	$ 30,290	$ 105,249

XML

Statements of Cash Flow Statements of Cash Flow

6 Months Ended

Jun. 30, 2015

Supplemental Cash Flow Elements [Abstract]

Cash Flow, Supplemental Disclosures

Statements of Cash Flow

Interest payments were $67,786,000 and $59,811,000 and income taxes paid were $54,324,000 and $152,439,000 in the three months ended June 30, 2015 and 2014, respectively.

XML

Investments In Fixed Maturity Securities

6 Months Ended

Jun. 30, 2015

Debt Securities [Member]

Schedule of Marketable Securities [Line Items]

Investments In Fixed Maturity Securities

Investments in Fixed Maturity Securities

At June 30, 2015 and December 31, 2014, investments in fixed maturity securities were as follows:

(In thousands)	Amortized Cost		Gross Unrealized					Fair Value		Carrying Value
			Gains		Losses
June 30, 2015
Held to maturity:
State and municipal	$	75,066	$	15,029	$	—		$	90,095	$	75,066
Residential mortgage-backed	21,241		2,655		—			23,896		21,241
Corporate	4,999		142		—			5,141		4,999
Total held to maturity	101,306		17,826		—			119,132		101,306
Available for sale:
U.S. government and government agency	691,250		27,672		(3,555		)	715,367		715,367
State and municipal:
Special revenue	2,345,401		91,768		(8,386		)	2,428,783		2,428,783
State general obligation	640,845		25,694		(6,113		)	660,426		660,426
Pre-refunded	444,165		28,606		(133		)	472,638		472,638
Corporate backed	419,572		13,850		(998		)	432,424		432,424
Local general obligation	283,988		21,023		(431		)	304,580		304,580
Total state and municipal	4,133,971		180,941		(16,061		)	4,298,851		4,298,851
Mortgage-backed securities:
Residential (1)	1,085,961		24,498		(10,514		)	1,099,945		1,099,945
Commercial	68,378		1,053		(93		)	69,338		69,338
Total mortgage-backed securities	1,154,339		25,551		(10,607		)	1,169,283		1,169,283
Corporate:
Asset-backed	1,644,366		17,816		(10,027		)	1,652,155		1,652,155
Industrial	1,780,193		96,890		(10,238		)	1,866,845		1,866,845
Financial	1,296,370		32,050		(10,412		)	1,318,008		1,318,008
Utilities	182,282		10,412		(2,212		)	190,482		190,482
Other	116,146		756		(539		)	116,363		116,363
Total corporate	5,019,357		157,924		(33,428		)	5,143,853		5,143,853
Foreign	918,738		65,344		(16,932		)	967,150		967,150
Total available for sale	11,917,655		457,432		(80,583		)	12,294,504		12,294,504
Total investments in fixed maturity securities	$	12,018,961	$	475,258	$	(80,583	)	$	12,413,636	$	12,395,810

(In thousands)	Amortized Cost		Gross Unrealized					Fair Value		Carrying Value
			Gains		Losses
December 31, 2014
Held to maturity:
State and municipal	$	72,901	$	17,501	$	—		$	90,402	$	72,901
Residential mortgage-backed	23,278		2,854		—			26,132		23,278
Corporate	4,998		291		—			5,289		4,998
Total held to maturity	101,177		20,646		—			121,823		101,177
Available for sale:
U.S. government and government agency	773,192		33,353		(3,157		)	803,388		803,388
State and municipal:
Special revenue	2,264,210		111,841		(2,084		)	2,373,967		2,373,967
State general obligation	674,022		37,615		(787		)	710,850		710,850
Pre-refunded	504,778		35,619		(289		)	540,108		540,108
Corporate backed	413,234		18,976		(855		)	431,355		431,355
Local general obligation	281,622		25,099		(5		)	306,716		306,716
Total state and municipal	4,137,866		229,150		(4,020		)	4,362,996		4,362,996
Mortgage-backed securities:
Residential (1)	1,201,924		27,124		(9,449		)	1,219,599		1,219,599
Commercial	74,479		1,610		(52		)	76,037		76,037
Total mortgage-backed securities	1,276,403		28,734		(9,501		)	1,295,636		1,295,636
Corporate:
Asset-backed	2,019,032		18,868		(11,974		)	2,025,926		2,025,926
Industrial	1,606,724		117,206		(5,131		)	1,718,799		1,718,799
Financial	1,140,801		38,080		(7,673		)	1,171,208		1,171,208
Utilities	184,107		12,436		(1		)	196,542		196,542
Other	86,294		1,370		(2		)	87,662		87,662
Total corporate	5,036,958		187,960		(24,781		)	5,200,137		5,200,137
Foreign	897,668		62,223		(18,065		)	941,826		941,826
Total available for sale	12,122,087		541,420		(59,524		)	12,603,983		12,603,983
Total investments in fixed maturity securities	$	12,223,264	$	562,066	$	(59,524	)	$	12,725,806	$	12,705,160

____________

(1) Gross unrealized losses for residential mortgage-backed securities include $1,073,002 and $1,095,671 as of June 30, 2015 and December 31, 2014, respectively, related to the non-credit portion of other-than-temporary impairments (“OTTI”) recognized in accumulated other comprehensive income.

The amortized cost and fair value of fixed maturity securities at June 30, 2015, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because certain issuers may have the right to call or prepay obligations.

(In thousands)	Amortized Cost		Fair Value
Due in one year or less	$	818,912	$	825,584
Due after one year through five years	3,934,376		4,091,220
Due after five years through ten years	3,612,449		3,754,639
Due after ten years	2,477,644		2,549,014
Mortgage-backed securities	1,175,580		1,193,179
Total	$	12,018,961	$	12,413,636

At June 30, 2015, there were no investments, other than investments in United States government and government agency securities, which exceeded 10% of common stockholders’ equity.

XML

Arbitrage Trading Account Arbitrage Trading Account

6 Months Ended

Jun. 30, 2015

Investments, Debt and Equity Securities [Abstract]

Arbitrage Trading Account

Arbitrage Trading Account

At June 30, 2015 and December 31, 2014, the carrying value of the arbitrage trading account was $830 million and $451 million, respectively. The primary focus of the trading account is merger arbitrage. Merger arbitrage is the business of investing in the securities of publicly held companies which are the targets in announced tender offers and mergers. Arbitrage investing differs from other types of investing in its focus on transactions and events believed likely to bring about a change in value over a relatively short time period (usually four months or less). The Company believes that this makes merger arbitrage investments less vulnerable to changes in general financial market conditions.

XML

Securities In An Unrealized Loss Position Securities In An Unrealized Loss Position (Narrative) (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Aggregate fair value of securities in a continuous unrealized loss position	$ 3,656,084,000	$ 2,895,204,000
Gross Unrealized Losses	95,535,000	69,142,000
Available For Sale Equity Securities Gross Unrealized Gains	12,022,000	20,314,000
Loans and Leases Receivable, Other, Allowance	$ 2,000,000	3,000,000
Noninvestment Grade Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Number of Securities	8
Preferred stocks
Schedule of Available-for-sale Securities [Line Items]
Aggregate fair value of securities in a continuous unrealized loss position	$ 36,242,000	49,774,000
Gross Unrealized Losses	4,283,000	4,165,000
Available For Sale Equity Securities Gross Unrealized Gains	12,022,000	8,385,000
Common stocks
Schedule of Available-for-sale Securities [Line Items]
Aggregate fair value of securities in a continuous unrealized loss position	47,359,000	15,929,000
Gross Unrealized Losses	10,669,000	5,453,000
Available For Sale Equity Securities Gross Unrealized Gains	0	$ 11,929,000
Common stocks | Noninvestment Grade Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Aggregate fair value of securities in a continuous unrealized loss position	83,600,000
Available For Sale Equity Securities Gross Unrealized Gains	$ 15,000,000

XML

Fair Value Measurements Fair Value Measurements (Summarize Changes in Level 3 Assets) (Details) - Level 3 - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Assets, beginning balance	$ 35,939,000	$ 49,634,000
Assets, earnings	(460,000)	2,304,000
Assets, other comprehensive income	(1,542,000)	(4,622,000)
Assets, purchases	72,640,000	19,953,000
Assets, (sales)	(71,866,000)	(33,698,000)
Assets, maturities	1,673,000	3,429,000
Assets, ending balance	13,905,000	35,939,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3	0	9,064,000
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Liabilities, beginning balance	0	0
Liabilities, earnings	0	(20,000)
Liabilities, other comprehensive income	0	0
Liabilities, purchases	0	31,000
Liabilities, (sales)	0	(11,000)
Liabilities, maturities	0	0
Liabilities, ending balance	0	0
Securities Sold, Not yet Purchased [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3	0	0
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3	0	0
Equity securities available for sale
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Assets, beginning balance	14,454,000	4,990,000
Assets, earnings	(38,000)	(17,000)
Assets, other comprehensive income	(1,722,000)	(911,000)
Assets, purchases	0	14,773,000
Assets, (sales)	0	(4,381,000)
Assets, ending balance	12,694,000	14,454,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3	0	0
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3	0	0
Preferred stocks
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Assets, beginning balance	3,713,000	3,752,000
Assets, earnings	(38,000)	(17,000)
Assets, other comprehensive income	0	0
Assets, purchases	0	3,430,000
Assets, (sales)	0	(3,452,000)
Assets, ending balance	3,675,000	3,713,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3	0	0
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3	0	0
Common stocks
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Assets, beginning balance	10,741,000	1,238,000
Assets, earnings	0	0
Assets, other comprehensive income	(1,722,000)	(911,000)
Assets, purchases	0	11,343,000
Assets, (sales)	0	(929,000)
Assets, ending balance	9,019,000	10,741,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3	0	0
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3	0	0
Debt Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Assets, beginning balance	20,765,000	42,864,000
Assets, earnings	15,000	47,000
Assets, other comprehensive income	180,000	(3,711,000)
Assets, purchases	0	238,000
Assets, (sales)	0	(15,244,000)
Assets, maturities	1,673,000	3,429,000
Assets, ending balance	154,000	20,765,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3	0	0
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3	(19,133,000)	0
Corporate Debt Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Assets, beginning balance	20,765,000	42,864,000
Assets, earnings	15,000	47,000
Assets, other comprehensive income	180,000	(3,711,000)
Assets, purchases	0	238,000
Assets, (sales)	0	(15,244,000)
Assets, maturities	1,673,000	3,429,000
Assets, ending balance	154,000	20,765,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3	0	0
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3	(19,133,000)	0
Trading Assets, Excluding Debt and Equity Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Assets, beginning balance	720,000	1,780,000
Assets, earnings	(437,000)	2,274,000
Assets, other comprehensive income	0	0
Assets, purchases	72,640,000	4,942,000
Assets, (sales)	(71,866,000)	(14,073,000)
Assets, ending balance	1,057,000	720,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3	0	9,064,000
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3	$ (19,133,000)	$ (3,267,000)

XML

Securities In An Unrealized Loss Position Non-Investment Grade Fixed Maturity Securities (Details)	Jun. 30, 2015 USD ($)	Dec. 31, 2014 USD ($)
Schedule of Available-for-sale Securities [Line Items]
Aggregate fair value of securities in a continuous unrealized loss position	$ 3,656,084,000	$ 2,895,204,000
Available For Sale Equity Securities Gross Unrealized Gains	12,022,000	20,314,000
Available For Sale Securities Continuous Unrealized Loss Position Aggregate Losses Accumulated In AOCI	95,535,000	69,142,000
Preferred stocks
Schedule of Available-for-sale Securities [Line Items]
Aggregate fair value of securities in a continuous unrealized loss position	36,242,000	49,774,000
Available For Sale Equity Securities Gross Unrealized Gains	12,022,000	8,385,000
Available For Sale Securities Continuous Unrealized Loss Position Aggregate Losses Accumulated In AOCI	4,283,000	4,165,000
Common stocks
Schedule of Available-for-sale Securities [Line Items]
Aggregate fair value of securities in a continuous unrealized loss position	47,359,000	15,929,000
Available For Sale Equity Securities Gross Unrealized Gains	0	11,929,000
Available For Sale Securities Continuous Unrealized Loss Position Aggregate Losses Accumulated In AOCI	10,669,000	5,453,000
Mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Aggregate fair value of securities in a continuous unrealized loss position	434,899,000	388,661,000
Available For Sale Securities Continuous Unrealized Loss Position Aggregate Losses Accumulated In AOCI	10,607,000	9,501,000
Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Aggregate fair value of securities in a continuous unrealized loss position	1,829,576,000	1,800,866,000
Available For Sale Securities Continuous Unrealized Loss Position Aggregate Losses Accumulated In AOCI	33,428,000	24,781,000
State and municipal
Schedule of Available-for-sale Securities [Line Items]
Aggregate fair value of securities in a continuous unrealized loss position	982,360,000	308,878,000
Available For Sale Securities Continuous Unrealized Loss Position Aggregate Losses Accumulated In AOCI	16,061,000	4,020,000
Foreign government
Schedule of Available-for-sale Securities [Line Items]
Aggregate fair value of securities in a continuous unrealized loss position	179,755,000	161,496,000
Available For Sale Securities Continuous Unrealized Loss Position Aggregate Losses Accumulated In AOCI	$ 16,932,000	$ 18,065,000
Noninvestment Grade Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Number of Securities	8
Noninvestment Grade Investments at Loss Less than 5 Million [Member]
Schedule of Available-for-sale Securities [Line Items]
Number of Securities	20
Aggregate fair value of securities in a continuous unrealized loss position	$ 114,366,000
Gross Unrealized Loss	$ 4,091,000
Noninvestment Grade Investments at Loss Less than 5 Million [Member] | Mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Number of Securities	7
Aggregate fair value of securities in a continuous unrealized loss position	$ 24,150,000
Gross Unrealized Loss	$ 1,605,000
Noninvestment Grade Investments at Loss Less than 5 Million [Member] | Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Number of Securities	13
Aggregate fair value of securities in a continuous unrealized loss position	$ 90,216,000
Gross Unrealized Loss	2,486,000
Preferred stocks | Noninvestment Grade Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Aggregate fair value of securities in a continuous unrealized loss position	3,600,000
Available For Sale Equity Securities Gross Unrealized Gains	$ 1,200,000

XML

Net Investment Income (Tables)

6 Months Ended

Jun. 30, 2015

Net Investment Income [Abstract]

Schedule of Net Investment Income

Net investment income consists of the following:

	For the Three Months						For the Six Months
	Ended June 30,						Ended June 30,
(In thousands)	2015			2014			2015			2014
Investment income (loss) earned on:
Fixed maturity securities, including cash and cash equivalents and loans receivable	$	105,030		$	107,760		$	213,159		$	214,658
Investment funds	21,851			22,356			27,912			76,155
Arbitrage trading account	(117		)	6,942			8,862			12,461
Equity securities available for sale	1,224			2,103			2,404			4,049
Real estate	2,114			3,063			4,881			6,165
Gross investment income	130,102			142,224			257,218			313,488
Investment expense	(2,519		)	(3,495		)	(5,396		)	(6,048		)
Net investment income	$	127,583		$	138,729		$	251,822		$	307,440

XML

Investments In Fixed Maturity Securities Investments in Fixed Maturity Securities (Investments in fixed maturity securities) (Details) - USD ($)		Jun. 30, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Total held to maturity, Amortized Cost		$ 101,306,000	$ 101,177,000
Held to Maturity Securities Accumulated Unrecognized Holding Gain		17,826,000	20,646,000
Held to Maturity Securities Accumulated Unrecognized Holding Loss		0	0
Total held to maturity, Fair Value		119,132,000	121,823,000
Total held to maturity, Carrying Value		101,306,000	101,177,000
Total available for sale, Amortized Cost		11,917,655,000	12,122,087,000
Total available for sale, Gross Unrealized Gains		457,432,000	541,420,000
Total available for sale, Gross Unrealized Losses		(80,583,000)	(59,524,000)
Total available for sale, Fair Value		12,294,504,000	12,603,983,000
Total available for sale, Carrying Value		12,294,504,000	12,603,983,000
Total investments in fixed maturity securities, Amortized Value		12,018,961,000	12,223,264,000
Total investments in fixed maturity securities, Gross Unrealized Gains		475,258,000	562,066,000
Total investments in fixed maturity securities, Gross Unrealized Losses		(80,583,000)	(59,524,000)
Total investments in fixed maturity securities, Fair Value		12,413,636,000	12,725,806,000
Total investments in fixed maturity securities, Carrying Value		$ 12,395,810,000	12,705,160,000
Minimum ownership of Common stockholders equity		10.00%
Foreign government
Schedule of Available-for-sale Securities [Line Items]
Total available for sale, Amortized Cost		$ 918,738,000	897,668,000
Total available for sale, Gross Unrealized Gains		65,344,000	62,223,000
Total available for sale, Gross Unrealized Losses		(16,932,000)	(18,065,000)
Total available for sale, Fair Value		967,150,000	941,826,000
Total available for sale, Carrying Value		967,150,000	941,826,000
Commercial Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Total available for sale, Amortized Cost		68,378,000	74,479,000
Total available for sale, Gross Unrealized Gains		1,053,000	1,610,000
Total available for sale, Gross Unrealized Losses		(93,000)	(52,000)
Total available for sale, Fair Value		69,338,000	76,037,000
Total available for sale, Carrying Value		69,338,000	76,037,000
U.S. government and government agency
Schedule of Available-for-sale Securities [Line Items]
Total available for sale, Amortized Cost		691,250,000	773,192,000
Total available for sale, Gross Unrealized Gains		27,672,000	33,353,000
Total available for sale, Gross Unrealized Losses		(3,555,000)	(3,157,000)
Total available for sale, Fair Value		715,367,000	803,388,000
Total available for sale, Carrying Value		715,367,000	803,388,000
Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Total available for sale, Amortized Cost		2,345,401,000	2,264,210,000
Total available for sale, Gross Unrealized Gains		91,768,000	111,841,000
Total available for sale, Gross Unrealized Losses		(8,386,000)	(2,084,000)
Total available for sale, Fair Value		2,428,783,000	2,373,967,000
Total available for sale, Carrying Value		2,428,783,000	2,373,967,000
Corporation [Member]
Schedule of Available-for-sale Securities [Line Items]
Total available for sale, Amortized Cost		419,572,000	413,234,000
Total available for sale, Gross Unrealized Gains		13,850,000	18,976,000
Total available for sale, Gross Unrealized Losses		(998,000)	(855,000)
Total available for sale, Fair Value		432,424,000	431,355,000
Total available for sale, Carrying Value		432,424,000	431,355,000
Debt, State Government [Member]
Schedule of Available-for-sale Securities [Line Items]
Total available for sale, Amortized Cost		640,845,000	674,022,000
Total available for sale, Gross Unrealized Gains		25,694,000	37,615,000
Total available for sale, Gross Unrealized Losses		(6,113,000)	(787,000)
Total available for sale, Fair Value		660,426,000	710,850,000
Total available for sale, Carrying Value		660,426,000	710,850,000
Revenue Subject to Refund [Member]
Schedule of Available-for-sale Securities [Line Items]
Total available for sale, Amortized Cost		444,165,000	504,778,000
Total available for sale, Gross Unrealized Gains		28,606,000	35,619,000
Total available for sale, Gross Unrealized Losses		(133,000)	(289,000)
Total available for sale, Fair Value		472,638,000	540,108,000
Total available for sale, Carrying Value		472,638,000	540,108,000
Residential Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Total available for sale, Amortized Cost	[1]	1,085,961,000	1,201,924,000
Total available for sale, Gross Unrealized Gains	[1]	24,498,000	27,124,000
Total available for sale, Gross Unrealized Losses	[1]	(10,514,000)	(9,449,000)
Total available for sale, Fair Value	[1]	1,099,945,000	1,219,599,000
Total available for sale, Carrying Value	[1]	1,099,945,000	1,219,599,000
Non-credit portion of other-than-temporary impairments (OTTI)		1,073,002	1,095,671
Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Total available for sale, Amortized Cost		5,019,357,000	5,036,958,000
Total available for sale, Gross Unrealized Gains		157,924,000	187,960,000
Total available for sale, Gross Unrealized Losses		(33,428,000)	(24,781,000)
Total available for sale, Fair Value		5,143,853,000	5,200,137,000
Total available for sale, Carrying Value		5,143,853,000	5,200,137,000
State and municipal
Schedule of Available-for-sale Securities [Line Items]
Total available for sale, Amortized Cost		4,133,971,000	4,137,866,000
Total available for sale, Gross Unrealized Gains		180,941,000	229,150,000
Total available for sale, Gross Unrealized Losses		(16,061,000)	(4,020,000)
Total available for sale, Fair Value		4,298,851,000	4,362,996,000
Total available for sale, Carrying Value		4,298,851,000	4,362,996,000
Debt, Local Government [Member]
Schedule of Available-for-sale Securities [Line Items]
Total available for sale, Amortized Cost		283,988,000	281,622,000
Total available for sale, Gross Unrealized Gains		21,023,000	25,099,000
Total available for sale, Gross Unrealized Losses		(431,000)	(5,000)
Total available for sale, Fair Value		304,580,000	306,716,000
Total available for sale, Carrying Value		304,580,000	306,716,000
Mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Total available for sale, Amortized Cost		1,154,339,000	1,276,403,000
Total available for sale, Gross Unrealized Gains		25,551,000	28,734,000
Total available for sale, Gross Unrealized Losses		(10,607,000)	(9,501,000)
Total available for sale, Fair Value		1,169,283,000	1,295,636,000
Total available for sale, Carrying Value		1,169,283,000	1,295,636,000
Asset-backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Total available for sale, Amortized Cost		1,644,366,000	2,019,032,000
Total available for sale, Gross Unrealized Gains		17,816,000	18,868,000
Total available for sale, Gross Unrealized Losses		(10,027,000)	(11,974,000)
Total available for sale, Fair Value		1,652,155,000	2,025,926,000
Total available for sale, Carrying Value		1,652,155,000	2,025,926,000
Industrial Property [Member]
Schedule of Available-for-sale Securities [Line Items]
Total available for sale, Amortized Cost		1,780,193,000	1,606,724,000
Total available for sale, Gross Unrealized Gains		96,890,000	117,206,000
Total available for sale, Gross Unrealized Losses		(10,238,000)	(5,131,000)
Total available for sale, Fair Value		1,866,845,000	1,718,799,000
Total available for sale, Carrying Value		1,866,845,000	1,718,799,000
Domestic Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Total available for sale, Amortized Cost		1,296,370,000	1,140,801,000
Total available for sale, Gross Unrealized Gains		32,050,000	38,080,000
Total available for sale, Gross Unrealized Losses		(10,412,000)	(7,673,000)
Total available for sale, Fair Value		1,318,008,000	1,171,208,000
Total available for sale, Carrying Value		1,318,008,000	1,171,208,000
Public Utility, Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Total available for sale, Amortized Cost		182,282,000	184,107,000
Total available for sale, Gross Unrealized Gains		10,412,000	12,436,000
Total available for sale, Gross Unrealized Losses		(2,212,000)	(1,000)
Total available for sale, Fair Value		190,482,000	196,542,000
Total available for sale, Carrying Value		190,482,000	196,542,000
Other Security Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Total available for sale, Amortized Cost		116,146,000	86,294,000
Total available for sale, Gross Unrealized Gains		756,000	1,370,000
Total available for sale, Gross Unrealized Losses		(539,000)	(2,000)
Total available for sale, Fair Value		116,363,000	87,662,000
Total available for sale, Carrying Value		116,363,000	87,662,000
State and municipal
Schedule of Available-for-sale Securities [Line Items]
Total held to maturity, Amortized Cost		75,066,000	72,901,000
Held to Maturity Securities Accumulated Unrecognized Holding Gain		15,029,000	17,501,000
Held to Maturity Securities Accumulated Unrecognized Holding Loss		0	0
Total held to maturity, Fair Value		90,095,000	90,402,000
Total held to maturity, Carrying Value		75,066,000	72,901,000
Residential Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Total held to maturity, Amortized Cost		21,241,000	23,278,000
Held to Maturity Securities Accumulated Unrecognized Holding Gain		2,655,000	2,854,000
Held to Maturity Securities Accumulated Unrecognized Holding Loss		0	0
Total held to maturity, Fair Value		23,896,000	26,132,000
Total held to maturity, Carrying Value		21,241,000	23,278,000
Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Total held to maturity, Amortized Cost		4,999,000	4,998,000
Held to Maturity Securities Accumulated Unrecognized Holding Gain		142,000	291,000
Held to Maturity Securities Accumulated Unrecognized Holding Loss		0	0
Total held to maturity, Fair Value		5,141,000	5,289,000
Total held to maturity, Carrying Value		$ 4,999,000	$ 4,998,000

[1] Gross unrealized losses for residential mortgage-backed securities include $1,073,002 and $1,095,671 as of June 30, 2015 and December 31, 2014, respectively, related to the non-credit portion of other-than-temporary impairments (“OTTI”) recognized in accumulated other comprehensive income.

XML

Realized And Unrealized Investment Gains (Losses)

6 Months Ended

Jun. 30, 2015

Realized and Unrealized Investment Gains (Losses) [Abstract]

Realized and Unrealized Investment Gains (Losses)

Realized and Unrealized Investment Gains (Losses)

Realized and unrealized investment gains (losses) are as follows:

	For the Three Months Ended June 30,						For the Six Months Ended June 30:
(In thousands)	2015			2014			2015			2014
Realized investment gains (losses):
Fixed maturity securities:
Gains	$	3,612		$	1,941		$	7,759		$	4,003
Losses	(484		)	(464		)	(1,561		)	(2,062		)
Equity securities available for sale	(42		)	23,124			9,660			29,581
Investment funds	23,684			(1,076		)	22,173			44,757
Real estate	—			85,643			—			85,643
Other	787			—			8,570			—
Total	27,557			109,168			46,601			161,922
Income tax expense	(9,645		)	(38,208		)	(16,311		)	(56,673		)
Total after-tax realized investment gains	$	17,912		$	70,960		$	30,290		$	105,249

Change in unrealized investment gains (losses):
Fixed maturity securities	$	(147,792	)	$	87,882		$	(105,312	)	$	179,520
Previously impaired fixed maturity securities	15			194			23			753
Equity securities available for sale	(6,779		)	(17,870		)	(13,624		)	8,333
Investment funds	2,566			6,184			(8,541		)	74
Total change in unrealized investment gains (losses)	(151,990		)	76,390			(127,454		)	188,680
Income tax benefit (expense)	52,370			(28,190		)	44,125			(67,536		)
Noncontrolling interests	(10		)	(19		)	12			(37		)
Total after-tax unrealized gains (losses)	$	(99,630	)	$	48,181		$	(83,317	)	$	121,107

XML

Restricted Stock Units Restricted Stock Units (Notes)

6 Months Ended

Jun. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Restricted Stock Units

Restricted Stock Units

Pursuant to its stock incentive plan, the Company may issue restricted stock units (RSUs) to employees of the Company and its subsidiaries. The RSUs generally vest three to five years from the award date and are subject to other vesting and forfeiture provisions contained in the award agreement. RSUs are expensed pro-ratably over the vesting period. RSU expenses were $15 million and $12 million for the six months ended June 30, 2015 and 2014, respectively. A summary of RSUs issued in the six months ended June 30, 2015 and 2014 follows:

($ in thousands)	Units	Fair Value
Six months ended June 30,
2015	22,011	$	1,102
2014	25,950	$	1,079

XML

Statements of Comprehensive Income (Loss) Statements of Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Accumulated Other Comprehensive Income (Loss), Beginning of Period				$ 183,550
Other comprehensive income (loss)		$ (65,993)	$ 75,035	(97,507)	$ 144,545
Accumulated Other Comprehensive Income (Loss), End of Period		86,055		86,055
Net realized investment gains		27,557	109,168	46,601	161,922
Income before income taxes		178,187	263,454	346,904	511,039
Income before taxes		573,582	534,150	1,124,628	1,049,316
Tax effect		55,138	83,277	105,411	161,178
After-tax amounts reclassified		123,049	180,177	241,493	349,861
Unrealized investment gains, pre-tax		(151,991)	76,390	(127,455)	188,680
Unrealized investment gains, tax effect		52,371	(28,190)	44,126	(67,536)
Unrealized investment gains, after-tax amounts		(99,620)	48,200	(83,329)	121,144
Currency translation adjustment, pre-tax		33,627	24,815	(14,178)	20,790
Currency translation adjustment, tax effect		0	0	0	0
Change in unrealized currency translation adjustments		33,627	24,815	(14,178)	20,790
Net pension asset, pre-tax		0	3,108	0	4,017
Net pension asset, tax effect		0	(1,088)	0	(1,406)
Net pension asset, after-tax amounts		0	2,020	0	2,611
Other comprehensive income (loss), pre-tax		(118,364)	104,313	(141,633)	213,487
Other comprehensive income (loss), tax effect		52,371	(29,278)	44,126	(68,942)
Accumulated Net Unrealized Investment Gain (Loss) [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Accumulated Other Comprehensive Income (Loss), Beginning of Period		322,512	329,492	306,199	256,566
Other comprehensive income (loss) before reclassifications		(97,613)	62,846	(73,021)	140,289
Amounts reclassified from AOCI		(2,007)	(14,646)	(10,308)	(19,145)
Other comprehensive income (loss)		(99,620)	48,200	(83,329)	121,144
Unrealized investment gain related to non-controlling interest		(10)	(19)	12	(37)
Accumulated Other Comprehensive Income (Loss), End of Period		222,882	377,673	222,882	377,673
Currency Translation Adjustments [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Accumulated Other Comprehensive Income (Loss), Beginning of Period		(170,454)	(64,549)	(122,649)	(60,524)
Other comprehensive income (loss) before reclassifications		33,627	24,815	(14,178)	20,790
Amounts reclassified from AOCI		0	0	0	0
Other comprehensive income (loss)		33,627	24,815	(14,178)	20,790
Unrealized investment gain related to non-controlling interest		0	0	0	0
Accumulated Other Comprehensive Income (Loss), End of Period		(136,827)	(39,734)	(136,827)	(39,734)
Change in unrealized currency translation adjustments				(14,178)	20,790
Net Pension Asset [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Accumulated Other Comprehensive Income (Loss), Beginning of Period		0	(6,060)	0	(6,651)
Other comprehensive income (loss) before reclassifications		0	0	0	0
Amounts reclassified from AOCI		0	2,020	0	2,611
Other comprehensive income (loss)		0	2,020	0	2,611
Unrealized investment gain related to non-controlling interest		0	0	0	0
Accumulated Other Comprehensive Income (Loss), End of Period		0	(4,040)	0	(4,040)
Accumulated Other Comprehensive Income (Loss) [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Accumulated Other Comprehensive Income (Loss), Beginning of Period		152,058	258,883	183,550	189,391
Other comprehensive income (loss) before reclassifications		(63,986)	87,661	(87,199)	161,079
Amounts reclassified from AOCI		(2,007)	(12,626)	(10,308)	(16,534)
Other comprehensive income (loss)		(65,993)	75,035	(97,507)	144,545
Unrealized investment gain related to non-controlling interest		(10)	(19)	12	(37)
Accumulated Other Comprehensive Income (Loss), End of Period		86,055	333,899	86,055	333,899
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Net realized investment gains	[1]	(3,087)	(22,532)	(15,858)	(29,454)
Tax effect	[2]	1,080	7,886	5,550	10,309
After-tax amounts reclassified		(2,007)	(14,646)	(10,308)	(19,145)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Currency Translation Adjustments [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Income before income taxes		0	0	0	0
Tax effect	[2]	0	0	0	0
After-tax amounts reclassified		0	0	0	0
Reclassification out of Accumulated Other Comprehensive Income [Member] | Net Pension Asset [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Income before taxes	[3]	0	3,108	0	4,017
Tax effect	[2]	0	(1,088)	0	(1,406)
After-tax amounts reclassified		0	2,020	0	2,611
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Other Comprehensive Income (Loss) [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Income before income taxes		(3,087)	(19,424)	(15,858)	(25,437)
Tax effect	[2]	(1,080)	(6,798)	(5,550)	(8,903)
After-tax amounts reclassified		$ (2,007)	$ (12,626)	$ (10,308)	$ (16,534)

[1] Net investment gains in the consolidated statements of

[2] {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjVkNjI3ODY0OTJhYTRhM2E5OWQzOTVmN2U0NjYxMjRlfFRleHRTZWxlY3Rpb246MTNDMjEwQTBFMjFBNTg0ODU4NUU3QzE1MTg0QjAxQTAM}

[3] {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjVkNjI3ODY0OTJhYTRhM2E5OWQzOTVmN2U0NjYxMjRlfFRleHRTZWxlY3Rpb246OTQyMEU5NzlCQTg0QjNCMTNCNDc3QzE1MTg0QkQ4ODYM}

XML

Reinsurance (Tables)

6 Months Ended

Jun. 30, 2015

Reinsurance Disclosures [Abstract]

Reinsurance Financial Information

The following is a summary of reinsurance financial information:

	For the Three Months						For the Six Months
	Ended June 30,						Ended June 30,
(In thousands)	2015			2014			2015			2014
Written premiums:
Direct	$	1,603,899		$	1,580,639		$	3,251,240		$	3,145,827
Assumed	207,499			191,762			411,963			431,841
Ceded	(267,473		)	(282,625		)	(543,876		)	(562,012		)
Total net premiums written	$	1,543,925		$	1,489,776		$	3,119,327		$	3,015,656
Earned premiums:
Direct	$	1,545,983		$	1,449,152		$	3,070,719		$	2,830,724
Assumed	211,352			224,916			414,694			450,678
Ceded	(264,294		)	(256,423		)	(520,359		)	(500,145		)
Total net premiums earned	$	1,493,041		$	1,417,645		$	2,965,054		$	2,781,257
Ceded losses incurred	$	131,928		$	89,569		$	250,319		$	190,253
Ceded commissions earned	$	40,169		$	38,055		$	83,820		$	75,226

XML

Consolidated Statements of Comprehensive Income Statement - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Net income before noncontrolling interests	$ 123,049	$ 180,177	$ 241,493	$ 349,861
Other comprehensive income (loss):
Change in unrealized currency translation adjustments	33,627	24,815	(14,178)	20,790
Change in unrealized investment gains (loss), net of taxes	(99,620)	48,200	(83,329)	121,144
Change in net pension asset, net of taxes	0	2,020	0	2,611
Other comprehensive income (loss)	(65,993)	75,035	(97,507)	144,545
Comprehensive income	57,056	255,212	143,986	494,406
Comprehensive (income) to the noncontrolling interest	(24)	(235)	(139)	(264)
Comprehensive income to common stockholders	$ 57,032	$ 254,977	$ 143,847	$ 494,142

XML

Recent Accounting Pronouncements Recent Accounting Pronouncements

6 Months Ended

Jun. 30, 2015

Accounting Policies [Abstract]

Recent Accounting Pronouncements

Recent Accounting Pronouncements

All recently issued but not yet effective accounting and reporting standards are either not applicable to the Company or are not expected to have a material impact on the Company.

XML

Real Estate Real Estate (Details 1) - USD ($)	3 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Real Estate [Abstract]
Accumulated depreciation and amortization on properties	$ 5,834,000		$ 1,609,000
Real estate depreciation expense	4,264,000	$ 3,219,000
Lease future minimum payments Current	5,741,234
Lease future minimum payments 2016	11,456,555
Lease future minimum payments 2017	11,499,945
Future Minimum Payments 2018	10,832,715
Lease future minimum payments 2019	7,839,368
Lease future minimum payments there after	$ 330,727,579

XML

Restricted Stock Units (Summary of Restricted Stock Units Issued) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Share-Based Compensation Arrangement by Share-based Payment Award [Line Item]
Share based compensation expense	$ 15,000	$ 12,000
Restricted Stock [Member]
Share-Based Compensation Arrangement by Share-based Payment Award [Line Item]
Restricted Stock Units	22,011	25,950
Restricted Stock Units, Fair Value	$ 1,102	$ 1,079
Minimum [Member] | Restricted Stock [Member]
Share-Based Compensation Arrangement by Share-based Payment Award [Line Item]
Award vesting period	3 years
Maximum [Member] | Restricted Stock [Member]
Share-Based Compensation Arrangement by Share-based Payment Award [Line Item]
Award vesting period	5 years

XML

Litigation and Contingent Liabilities Litigation and Contingent Liabilities

6 Months Ended

Jun. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

Litigation and Contingent Liabilities

In the ordinary course of business, the Company is subject to disputes, litigation and arbitration arising from its insurance and reinsurance businesses. These matters are generally related to insurance and reinsurance claims and are considered in the establishment of loss and loss expense reserves. In addition, the Company may also become involved in legal actions which seek extra-contractual damages, punitive damages or penalties, including claims alleging bad faith in handling of insurance claims. The Company expects its ultimate liability with respect to such matters will not be material to its financial condition. However, adverse outcomes on such matters are possible, from time to time, and could be material to the Company’s results of operations in any particular financial reporting period.

XML

Realized And Unrealized Investment Gains (Losses) (Tables)

6 Months Ended

Jun. 30, 2015

Realized and Unrealized Investment Gains (Losses) [Abstract]

Realized and Unrealized Investment Gains (Losses)

Realized and unrealized investment gains (losses) are as follows:

	For the Three Months Ended June 30,						For the Six Months Ended June 30:
(In thousands)	2015			2014			2015			2014
Realized investment gains (losses):
Fixed maturity securities:
Gains	$	3,612		$	1,941		$	7,759		$	4,003
Losses	(484		)	(464		)	(1,561		)	(2,062		)
Equity securities available for sale	(42		)	23,124			9,660			29,581
Investment funds	23,684			(1,076		)	22,173			44,757
Real estate	—			85,643			—			85,643
Other	787			—			8,570			—
Total	27,557			109,168			46,601			161,922
Income tax expense	(9,645		)	(38,208		)	(16,311		)	(56,673		)
Total after-tax realized investment gains	$	17,912		$	70,960		$	30,290		$	105,249

Unrealized Gain (Loss) on Investments

Change in unrealized investment gains (losses):
Fixed maturity securities	$	(147,792	)	$	87,882		$	(105,312	)	$	179,520
Previously impaired fixed maturity securities	15			194			23			753
Equity securities available for sale	(6,779		)	(17,870		)	(13,624		)	8,333
Investment funds	2,566			6,184			(8,541		)	74
Total change in unrealized investment gains (losses)	(151,990		)	76,390			(127,454		)	188,680
Income tax benefit (expense)	52,370			(28,190		)	44,125			(67,536		)
Noncontrolling interests	(10		)	(19		)	12			(37		)
Total after-tax unrealized gains (losses)	$	(99,630	)	$	48,181		$	(83,317	)	$	121,107

XML

Loans Receivable Loans Receivable

6 Months Ended

Jun. 30, 2015

Receivables [Abstract]

Loans Receivable

Loans Receivable

Loans receivable are as follows:

(In thousands)	June 30, 2015			December 31, 2014
Amortized cost:
Real estate loans	$	174,719		$	243,407
Commercial loans	84,692			78,605
Total	$	259,411		$	322,012
Fair value:
Real estate loans	$	177,648		$	245,112
Commercial loans	84,693			80,107
Total	$	262,341		$	325,219
Valuation allowance:
Specific	$	75		$	115
General	2,311			2,371
Total	$	2,386		$	2,486
	For the Three Months Ended June 30,
	2015			2014
Increase (decrease) in valuation allowance	$	(53	)	$	16
Loans receivable charged off	—			—
	For the Six Months  Ended June 30,
	2015			2014
Increase (decrease) in valuation allowance	$	(100	)	$	479
Loans receivable charged off	—			—

Loans receivable in non-accrual status were $9.5 million and $14.2 million as of June 30, 2015 and December 31, 2014, respectively.

The Company monitors the performance of its loans receivable and assesses the ability of the borrower to pay principal and interest based upon loan structure, underlying property values, cash flow and related financial and operating performance of the property and market conditions. Loans receivable with a potential for default are further assessed using discounted cash flow analysis and comparable cost and sales methodologies, if appropriate.

The real estate loans are secured by commercial real estate primarily located in Arizona, Maryland, New York and Texas. These loans generally earn interest at floating LIBOR-based interest rates and have maturities (inclusive of extension options) through August 2025. The commercial loans are with small business owners who have secured the related financing with the assets of the business. Commercial loans generally earn interest on a fixed basis and have varying maturities not exceeding 10 years.

The Company utilizes a risk rating system to assign a risk to each of its real estate loans. The loan rating system takes into consideration credit quality indicators including loan to value ratios, which compare the outstanding loan amount to the estimated value of the property, the borrower’s financial condition and performance with respect to loan terms, the Company’s position in the capital structure, and the overall leverage in the capital structure. Based on this rating system, none of the real estate loans were considered to be impaired at June 30, 2015, and accordingly, the Company determined that a specific valuation allowance was not required.