XML 92 R15.htm IDEA: XBRL DOCUMENT v2.4.1.9
Funds Held
12 Months Ended
Dec. 31, 2014
Other Insurance Industry Disclosures [Abstract]  
Funds held
FUNDS HELD

The Company has a minority interest in Aeolus Capital Management Ltd. ("ACM"), an affiliate of Aeolus Re, Ltd., a Bermuda-based property catastrophe reinsurer ("Aeolus Re"), which it accounts for under the equity method. ACM manages capital on behalf of investors seeking to invest in the property catastrophe reinsurance market.

The Company has also entered into a collateralized property catastrophe quota share reinsurance contract with Aeolus Re, whereby the Company assumes property catastrophe business underwritten by Aeolus Re. As part of the agreement to purchase the minority interest in ACM, the Company provided a multi-year capital commitment to support the business being underwritten by Aeolus Re. To the extent that capital is not utilized to support the business being underwritten by Aeolus Re, as all obligations have been settled, the capital is returned to the Company. To the extent the losses are in excess of the premiums written, the capital is utilized to pay the claims. The capital commitment is recorded in "funds held" on the consolidated balance sheets. The funds held balance as of December 31, 2014 and 2013 was $708,047 and $621,567, respectively. For the years ended December 31, 2014, 2013 and 2012, the premiums written assumed by the Company through the collateralized property catastrophe quota share reinsurance contract with Aeolus Re were $87,275, $83,300 and $34,597, respectively.