Investments (Tables)

6 Months Ended

Jun. 30, 2014

Investments [Abstract]

Schedule of trading securities

Securities accounted for at fair value with changes in fair value recognized in the unaudited condensed consolidated statements of operations and comprehensive income (“consolidated income statements”) by category are as follows:

	June 30, 2014				December 31, 2013
	Fair Value		Amortized Cost		Fair Value		Amortized Cost
U.S. Government and Government agencies	$	1,274,331	$	1,273,469	$	1,676,788	$	1,684,832
Non-U.S. Government and Government agencies	185,071		186,142		191,776		197,082
States, municipalities and political subdivisions	261,267		256,698		231,555		234,406
Corporate debt:
Financial institutions	1,168,937		1,149,005		958,794		943,518
Industrials	1,167,470		1,152,858		1,174,047		1,165,448
Utilities	98,878		97,457		69,426		69,658
Mortgage-backed	1,323,763		1,272,824		1,292,502		1,267,863
Asset-backed	677,367		674,305		505,910		502,543
Total fixed maturity investments	$	6,157,084	$	6,062,758	$	6,100,798	$	6,065,350

	June 30, 2014				December 31, 2013
	Fair Value		Original Cost		Fair Value		Original Cost
Equity securities	$	938,117	$	885,861	$	699,846	$	647,301
Other invested assets	804,505		693,370		764,081		658,683
	$	1,742,622	$	1,579,231	$	1,463,927	$	1,305,984

Schedule of other invested assets

Details regarding the carrying value, redemption characteristics and unfunded investment commitments of the other invested assets portfolio as of June 30, 2014 and December 31, 2013 were as follows:

Investment Type	Carrying Value as of June 30, 2014		Investments with Redemption Restrictions		Estimated Remaining Restriction Period	Investments without Redemption Restrictions		Redemption Frequency(1)	Redemption Notice Period(1)	Unfunded Commitments
Private equity	$	161,667	$	161,667	2 - 9 Years	$	—			$	239,697
Mezzanine debt	95,162		95,162		5 - 9 Years	—				206,856
Distressed	10,008		10,008		4 Years	—				4,941
Total private equity	266,837		266,837			—				451,494
Distressed	165,253		165,253		1 Year	—				—
Equity long/short	134,036		58,568		1 Year	75,468		Quarterly	30 -60 Days	—
Multi-strategy	100,263		—			100,263		Quarterly	45 -90 Days	—
Relative value credit	105,624		—			105,624		Quarterly	60 Days	—
Total hedge funds	505,176		223,821			281,355				—
High yield loan fund	32,492		—			32,492		Monthly	30 days	—
Total other invested assets at fair value	804,505		490,658			313,847				451,494
Other private securities	128,134		—			128,134				—
Total other invested assets	$	932,639	$	490,658		$	441,981			$	451,494

Investment Type	Carrying Value as of December 31, 2013		Investments with Redemption Restrictions		Estimated Remaining Restriction Period	Investments without Redemption Restrictions		Redemption Frequency(1)	Redemption Notice Period(1)	Unfunded Commitments
Private equity	$	144,422	$	144,422	2 - 9 Years	$	—			$	263,519
Mezzanine debt	64,627		64,627		8 - 9 Years	—				198,756
Distressed	7,776		7,776		4 Years	—				5,249
Total private equity	216,825		216,825			—				467,524
Distressed	151,227		151,227		1 - 2 Years	—				—
Equity long/short	99,365		—			99,365		Quarterly	30 -60 Days	—
Multi-strategy	136,958		—			136,958		Quarterly	45 -90 Days	—
Event driven	14,018		—			14,018		Annual	60 Days	—
Relative value credit	113,730		—			113,730		Quarterly	60 Days	—
Total hedge funds	515,298		151,227			364,071				—
High yield loan fund	31,958		—			31,958		Monthly	30 days	—
Total other invested assets at fair value	764,081		368,052			396,029				467,524
Other private securities	147,311		—			147,311				—
Total other invested assets	$	911,392	$	368,052		$	543,340			$	467,524

_______________________

(1) The redemption frequency and notice periods only apply to the investments without redemption restrictions. Some or all of these investments may be subject to a gate as described below.

Schedule of net investment income

	Three Months Ended   June 30,						Six Months Ended   June 30,
	2014			2013			2014			2013
Fixed maturity investments	$	35,936		$	32,662		$	72,235		$	65,187
Equity securities	5,912			4,409			9,165			7,608
Other invested assets	(890		)	3,843			10,518			5,307
Cash and cash equivalents	571			529			1,010			1,017
Expenses	(4,736		)	(3,808		)	(8,516		)	(8,096		)
Net investment income	$	36,793		$	37,635		$	84,412		$	71,023

Components of realized gains and losses

	Three Months Ended   June 30,						Six Months Ended   June 30,
	2014			2013			2014			2013
Gross realized gains on sale of invested assets	$	55,714		$	58,223		$	118,006		$	102,472
Gross realized losses on sale of invested assets	(4,025		)	(35,077		)	(16,273		)	(42,042		)
Net realized and unrealized (losses) gains on derivatives	(13,720		)	8,538			(26,640		)	7,561
Mark-to-market gains (losses):
Fixed maturity investments, trading	36,426			(115,113		)	58,882			(131,588		)
Equity securities, trading	21,316			(34,330		)	(289		)	(1,357		)
Other invested assets, trading	(10,494		)	2,561			5,736			29,393
Net realized investment gains (losses)	$	85,217		$	(115,198	)	$	139,422		$	(35,561	)