Fair Value Of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2014

Fair Value Disclosures [Abstract]

Fair value hierarchy and related disclosures

The following table shows the fair value of the Company’s financial instruments and where in the fair value hierarchy the fair value measurements are included as of the dates indicated below:

June 30, 2014	Carrying Amount		Total Fair Value		Level 1		Level 2		Level 3
Fixed maturity investments:
U.S. Government and Government agencies	$	1,274,331	$	1,274,331	$	1,058,607	$	215,724	$	—
Non-U.S. Government and Government agencies	185,071		185,071				185,071		—
States, municipalities and political subdivisions	261,267		261,267		—		261,267		—
Corporate debt	2,435,285		2,435,285		—		2,435,285		—
Mortgage-backed	1,323,763		1,323,763		—		1,176,962		146,801
Asset-backed	677,367		677,367		—		606,135		71,232
Total fixed maturity investments	6,157,084		6,157,084		1,058,607		4,880,444		218,033
Equity securities	938,117		938,117		903,254		—		34,863
Other invested assets	804,505		804,505		—		—		804,505
Total investments	$	7,899,706	$	7,899,706	$	1,961,861	$	4,880,444	$	1,057,401
Derivative assets:
Foreign exchange contracts	$	430	$	430	$	—	$	430	$	—
Interest rate swaps	87		87		—		87		—
Derivative liabilities:
Foreign exchange contracts	$	1,996	$	1,996	$	—	$	1,996	$	—
Interest rate swaps	1,126		1,126		—		1,126		—
Senior notes	$	798,648	$	907,005	$	—	$	907,005	$	—

December 31, 2013	Carrying Amount		Total Fair Value		Level 1		Level 2		Level 3
Fixed maturity investments:
U.S. Government and Government agencies	$	1,676,788	$	1,676,788	$	1,370,088	$	306,700	$	—
Non-U.S. Government and Government agencies	191,776		191,776		—		191,776		—
States, municipalities and political subdivisions	231,555		231,555		—		231,555		—
Corporate debt	2,202,267		2,202,267		—		2,202,267		—
Mortgage-backed	1,292,502		1,292,502		—		1,145,164		147,338
Asset-backed	505,910		505,910		—		412,497		93,413
Total fixed maturity investments	6,100,798		6,100,798		1,370,088		4,489,959		240,751
Equity securities	699,846		699,846		625,942		—		73,904
Other invested assets	764,081		764,081		—		—		764,081
Total investments	$	7,564,725	$	7,564,725	$	1,996,030	$	4,489,959	$	1,078,736
Derivative assets:
Foreign exchange contracts	$	6,254	$	6,254	$	—	$	6,254	$	—
Interest rate swaps	6,829		6,829		—		6,829		—
Derivative liabilities:
Foreign exchange contracts	$	1,176	$	1,176	$	—	$	1,176	$	—
Interest rate swaps	$	4,214	$	4,214	$	—	$	4,214	$	—
Senior notes	$	798,499	$	897,601	$	—	$	897,601	$	—

Fair value measurements using significant unobservable inputs (Level 3)

The following is a reconciliation of the beginning and ending balance of financial instruments using significant unobservable inputs (Level 3):

Three Months Ended June 30, 2014	Other invested assets			Mortgage-backed			Asset-backed			Equities
Opening balance	$	839,986		$	134,061		$	81,234		$	34,786
Realized and unrealized gains (losses) included in net income	22,498			2,721			450			77
Purchases	99,722			20,928			9,409			—
Sales	(157,701		)	(26,734		)	(3,743		)	—
Transfers into Level 3 from Level 2	—			17,437			—			—
Transfers out of Level 3 into Level 2 (1)	—			(1,612		)	(16,118		)	—
Ending balance	$	804,505		$	146,801		$	71,232		$	34,863
Three Months Ended June 30, 2013
Opening balance	$	710,140		$	155,420		$	40,903		$	57,787
Realized and unrealized gains (losses) included in net income	11,709			(6,188		)	(289		)	(4,288		)
Purchases	96,742			72,261			23,527			—
Sales	(104,200		)	(27,887		)	(1,727		)	—
Transfers into Level 3 from Level 2	—			11,197			—			—
Transfers out of Level 3 into Level 2 (1)	—			(6,800		)	(1,129		)	—
Ending balance	$	714,391		$	198,003		$	61,285		$	53,499

Six Months Ended June 30, 2014	Other invested assets			Mortgage-backed			Asset-backed			Equities
Opening balance	$	764,081		$	147,338		$	93,413		$	73,904
Realized and unrealized gains (losses) included in net income	45,124			4,479			(355		)	(9,744		)
Purchases	188,920			50,840			16,938			—
Sales	(193,620		)	(54,419		)	(8,225		)	(29,297		)
Transfers into Level 3 from Level 2	—			103			—			—
Transfers out of Level 3 into Level 2 (1)	—			(1,540		)	(30,539		)	—
Ending balance	$	804,505		$	146,801		$	71,232		$	34,863
Six Months Ended June 30, 2013
Opening balance	$	655,888		$	167,825		$	62,246		$	54,680
Realized and unrealized gains (losses) included in net income	43,962			(7,613		)	(382		)	(1,181		)
Purchases	169,952			71,752			24,782			—
Sales	(155,411		)	(29,864		)	(18,478		)	—
Transfers into Level 3 from Level 2	—			7,109			—			—
Transfers out of Level 3 into Level 2 (1)	—			(11,206		)	(6,883		)	—
Ending balance	$	714,391		$	198,003		$	61,285		$	53,499

_______________________ 

(1) Transfers out of Level 3 are primarily attributable to the availability of market observable information.