Segment Information (Tables)

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Summary of segment results

The following tables provide a summary of the segment results:

Three Months Ended September 30, 2014	U.S. Insurance			International Insurance			Reinsurance			Total
Gross premiums written	$	386,681		$	144,236		$	176,967		$	707,884
Net premiums written	321,713			87,820			159,209			568,742
Net premiums earned	224,764			94,013			222,960			541,737
Net losses and loss expenses	(153,010		)	(55,814		)	(127,266		)	(336,090		)
Acquisition costs	(31,131		)	(1,209		)	(40,063		)	(72,403		)
General and administrative expenses	(41,730		)	(27,993		)	(18,571		)	(88,294		)
Underwriting (loss) income	(1,107		)	8,997			37,060			44,950
Other insurance-related income	1,032			—			—			1,032
Other insurance-related expenses	(1,270		)	(5,305		)	—			(6,575		)
Segment (loss) income	$	(1,345	)	$	3,692		$	37,060		$	39,407
Net investment income										43,412
Net realized investment losses										(35,136		)
Amortization of intangible assets										(633		)
Interest expense										(14,325		)
Foreign exchange loss										(278		)
Income before income taxes										$	32,447
Loss and loss expense ratio	68.1		%	59.4		%	57.1		%	62.0		%
Acquisition cost ratio	13.9		%	1.3		%	18.0		%	13.4		%
General and administrative expense ratio	18.6		%	29.8		%	8.3		%	16.3		%
Expense ratio	32.5		%	31.1		%	26.3		%	29.7		%
Combined ratio	100.6		%	90.5		%	83.4		%	91.7		%

Three Months Ended September 30, 2013	U.S. Insurance			International Insurance			Reinsurance			Total
Gross premiums written	$	308,709		$	132,881		$	139,303		$	580,893
Net premiums written	238,792			75,632			138,653			453,077
Net premiums earned	207,602			87,554			215,617			510,773
Net losses and loss expenses	(141,222		)	(31,094		)	(104,654		)	(276,970		)
Acquisition costs	(28,426		)	282			(36,970		)	(65,114		)
General and administrative expenses	(41,616		)	(26,450		)	(20,487		)	(88,553		)
Underwriting (loss) income	(3,662		)	30,292			53,506			80,136
Other insurance-related income	—			—			—			—
Other insurance-related expenses	—			—			—			—
Segment (loss) income	$	(3,662	)	$	30,292		$	53,506		$	80,136
Net investment income										39,271
Net realized investment gains										27,487
Amortization of intangible assets										(633		)
Interest expense										(14,094		)
Foreign exchange loss										(4,353		)
Income before income taxes										$	127,814
Loss and loss expense ratio	68.0		%	35.5		%	48.5		%	54.2		%
Acquisition cost ratio	13.7		%	(0.3		)%	17.1		%	12.7		%
General and administrative expense ratio	20.0		%	30.2		%	9.5		%	17.3		%
Expense ratio	33.7		%	29.9		%	26.6		%	30.0		%
Combined ratio	101.7		%	65.4		%	75.1		%	84.2		%

Nine Months Ended September 30, 2014	U.S. Insurance			International Insurance			Reinsurance			Total
Gross premiums written	$	998,051		$	483,079		$	888,552		$	2,369,682
Net premiums written	746,403			285,450			862,427			1,894,280
Net premiums earned	651,480			271,557			686,232			1,609,269
Net losses and loss expenses	(440,491		)	(115,299		)	(370,441		)	(926,231		)
Acquisition costs	(88,311		)	(835		)	(125,258		)	(214,404		)
General and administrative expenses	(125,760		)	(82,164		)	(56,898		)	(264,822		)
Underwriting (loss) income	(3,082		)	73,259			133,635			203,812
Other insurance-related income	1,032			—			—			1,032
Other insurance-related expenses	(1,270		)	(5,305		)	—			(6,575		)
Segment (loss) income	$	(3,320	)	$	67,954		$	133,635		$	198,269
Net investment income										127,824
Net realized investment gains										104,286
Amortization of intangible assets										(1,900		)
Interest expense										(43,451		)
Foreign exchange loss										(978		)
Income before income taxes										$	384,050
Loss and loss expense ratio	67.6		%	42.5		%	54.0		%	57.6		%
Acquisition cost ratio	13.6		%	0.3		%	18.3		%	13.3		%
General and administrative expense ratio	19.3		%	30.3		%	8.3		%	16.5		%
Expense ratio	32.9		%	30.6		%	26.6		%	29.8		%
Combined ratio	100.5		%	73.1		%	80.6		%	87.4		%

Nine Months Ended September 30, 2013	U.S. Insurance			International Insurance			Reinsurance			Total
Gross premiums written	$	872,024		$	453,990		$	857,160		$	2,183,174
Net premiums written	652,464			259,771			817,116			1,729,351
Net premiums earned	593,477			258,809			628,986			1,481,272
Net losses and loss expenses	(398,910		)	(90,997		)	(317,369		)	(807,276		)
Acquisition costs	(78,824		)	1,489			(109,081		)	(186,416		)
General and administrative expenses	(119,514		)	(75,374		)	(56,930		)	(251,818		)
Underwriting (loss) income	(3,771		)	93,927			145,606			235,762
Other insurance-related income	—			—			—			—
Other insurance-related expenses	—			—			—			—
Segment (loss) income	$	(3,771	)	$	93,927		$	145,606		$	235,762
Net investment income										110,294
Net realized investment losses										(8,074		)
Amortization of intangible assets										(1,900		)
Interest expense										(42,416		)
Foreign exchange loss										(7,361		)
Income before income taxes										$	286,305
Loss and loss expense ratio	67.2		%	35.2		%	50.5		%	54.5		%
Acquisition cost ratio	13.3		%	(0.6		)%	17.3		%	12.6		%
General and administrative expense ratio	20.1		%	29.1		%	9.1		%	17.0		%
Expense ratio	33.4		%	28.5		%	26.4		%	29.6		%
Combined ratio	100.6		%	63.7		%	76.9		%	84.1		%

Analysis of gross written premium by geographic location

The following table shows an analysis of the Company’s gross premiums written by geographic location of the Company’s subsidiaries and branches. All intercompany premiums have been eliminated.

	Three Months Ended   September 30,				Nine Months Ended   September 30,
	2014		2013		2014		2013
United States	$	483,992	$	377,618	$	1,447,652	$	1,296,212
Bermuda	109,503		111,103		525,005		550,815
Europe	64,947		52,004		245,931		198,747
Asia Pacific	45,070		40,168		142,798		137,400
Canada	4,372		—		8,296		—
Total gross premiums written	$	707,884	$	580,893	$	2,369,682	$	2,183,174