Investments (Tables)

9 Months Ended

Sep. 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:

	September 30, 2014				December 31, 2013
	Fair Value		Amortized Cost		Fair Value		Amortized Cost
U.S. Government and Government agencies	$	1,184,115	$	1,186,185	$	1,676,788	$	1,684,832
Non-U.S. Government and Government agencies	219,287		229,792		191,776		197,082
States, municipalities and political subdivisions	260,690		251,628		231,555		234,406
Corporate debt:
Financial institutions	1,194,949		1,185,637		958,794		943,518
Industrials	1,202,906		1,201,341		1,174,047		1,165,448
Utilities	125,513		125,202		69,426		69,658
Mortgage-backed	1,240,362		1,196,683		1,292,502		1,267,863
Asset-backed	700,415		698,284		505,910		502,543
Total fixed maturity investments	$	6,128,237	$	6,074,752	$	6,100,798	$	6,065,350

	September 30, 2014				December 31, 2013
	Fair Value		Original Cost		Fair Value		Original Cost
Equity securities	$	945,076	$	901,300	$	699,846	$	647,301
Other invested assets	806,124		701,794		764,081		658,683
	$	1,751,200	$	1,603,094	$	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 September 30, 2014 and December 31, 2013 were as follows:

Investment Type	Carrying Value as of September 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	$	179,196	$	179,196	2 - 9 Years	$	—			$	223,030
Mezzanine debt	114,399		114,399		5 - 9 Years	—				251,486
Distressed	9,516		9,516		4 Years	—				5,119
Total private equity	303,111		303,111			—				479,635
Distressed	173,111		173,111		1 Year	—				—
Equity long/short	111,627		86,721		1 Year	24,906		Quarterly	30 -60 Days	—
Multi-strategy	81,576		—			81,576		Quarterly	45 -90 Days	—
Relative value credit	105,155		—			105,155		Quarterly	60 Days	—
Total hedge funds	471,469		259,832			211,637				—
High yield loan fund	31,544		—			31,544		Monthly	30 days	—
Total other invested assets at fair value	806,124		562,943			243,181				479,635
Other private securities	123,077		—			123,077				—
Total other invested assets	$	929,201	$	562,943		$	366,258			$	479,635

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   September 30,						Nine Months Ended   September 30,
	2014			2013			2014			2013
Fixed maturity investments	$	38,762		$	31,179		$	110,998		$	96,366
Equity securities	3,711			6,110			12,876			13,718
Other invested assets: hedge funds and private equity	2,249			3,812			8,767			6,001
Other invested assets: other private securities	3,292			1,997			7,291			5,115
Cash and cash equivalents	552			302			1,562			1,319
Expenses	(5,154		)	(4,129		)	(13,670		)	(12,225		)
Net investment income	$	43,412		$	39,271		$	127,824		$	110,294

Components of realized gains and losses

	Three Months Ended   September 30,						Nine Months Ended   September 30,
	2014			2013			2014			2013
Gross realized gains on sale of invested assets	$	28,773		$	51,915		$	146,780		$	154,387
Gross realized losses on sale of invested assets	(9,955		)	(40,770		)	(26,228		)	(82,812		)
Net realized and unrealized gains (losses) on derivatives	2,171			(4,169		)	(24,469		)	3,392
Mark-to-market (losses) gains:
Fixed maturity investments, trading	(40,843		)	30,383			18,039			(101,205		)
Equity securities, trading	(8,479		)	(17,198		)	(8,768		)	(18,555		)
Other invested assets, trading	(6,803		)	7,326			(1,068		)	36,719
Net realized investment (losses) gains	$	(35,136	)	$	27,487		$	104,286		$	(8,074	)