Fair Value Of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2015

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, 2015	Carrying Amount		Total Fair Value		Level 1		Level 2		Level 3
Fixed maturity investments:
U.S. government and government agencies	$	1,280,844	$	1,280,844	$	1,222,556	$	58,288	$	—
Non-U.S. government and government agencies	411,550		411,550		—		411,550		—
States, municipalities and political subdivisions	348,823		348,823		—		348,823		—
Corporate debt	2,404,234		2,404,234		—		2,404,234		—
Mortgage-backed	1,263,019		1,263,019		—		1,163,382		99,637
Asset-backed	723,073		723,073		—		639,165		83,908
Total fixed maturity investments	6,431,543		6,431,543		1,222,556		5,025,442		183,545
Equity securities	815,641		815,641		757,834		—		57,807
Other invested assets(1)	769,173		769,173		—		—		769,173
Total investments	$	8,016,357	$	8,016,357	$	1,980,390	$	5,025,442	$	1,010,525
Derivative assets:
Foreign exchange contracts	$	76	$	76	$	—	$	76	$	—
Interest rate swaps	228		228		—		228		—
Senior notes	798,962		$	865,809	$	—	$	865,809	$	—
Other long-term debt	24,472		$	29,927	$	—	$	29,927	$	—

December 31, 2014	Carrying Amount		Total Fair Value		Level 1		Level 2		Level 3
Fixed maturity investments:
U.S. government and government agencies	$	1,610,502	$	1,610,502	$	1,499,347	$	111,155	$	—
Non-U.S. government and government agencies	188,199		188,199		—		188,199		—
States, municipalities and political subdivisions	170,567		170,567		—		170,567		—
Corporate debt	2,165,393		2,165,393		—		2,165,393		—
Mortgage-backed	1,263,517		1,263,517		—		1,081,734		181,783
Asset-backed	670,832		670,832		—		615,419		55,413
Total fixed maturity investments	6,069,010		6,069,010		1,499,347		4,332,467		237,196
Equity securities	844,163		844,163		800,833		—		43,330
Other invested assets(1)	812,543		812,543		—		—		—
Total investments	$	7,725,716	$	7,725,716	$	2,300,180	$	4,332,467	$	280,526
Derivative assets:
Foreign exchange contracts	$	1,274	$	1,274	$	—	$	1,274	$	—
Derivative liabilities:
Foreign exchange contracts	$	991	$	991	$	—	$	991	$	—
Interest rate swaps	$	683	$	683	$	—	$	683	$	—
Senior notes	$	798,802	$	879,317	$	—	$	879,317	$	—
Other long-term debt	$	19,213	$	22,583	$	—	$	22,583	$	—

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(1) In accordance with U.S. GAAP, other invested assets, excluding other private securities, are measured at fair value using the net asset value per share (or its equivalent) practical expedient and have not been classified in the fair value hierarchy.

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, 2015	Mortgage-backed			Asset-backed			Equities
Opening balance	$	132,698		$	92,932		$	48,767
Realized and unrealized (losses) gains included in net income	(2,256		)	(462		)	9,040
Purchases	4,206			2,170			—
Sales	(35,279		)	(7,230		)	—
Transfers into Level 3 from Level 2	268			17,376			—
Transfers out of Level 3 into Level 2 (1)	—			(20,878		)	—
Ending balance	$	99,637		$	83,908		$	57,807
Three Months Ended June 30, 2014
Opening balance	$	134,061		$	81,234		$	34,786
Realized and unrealized gains included in net income	2,721			450			77
Purchases	20,928			9,409			—
Sales	(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	$	146,801		$	71,232		$	34,863

Six Months Ended June 30, 2015	Mortgage-backed			Asset-backed			Equities
Opening balance	$	181,783		$	55,413		$	43,330
Realized and unrealized (losses) gains included in net income	(669		)	(564		)	14,477
Purchases	6,393			23,304			—
Sales	(88,138		)	(9,899		)	—
Transfers into Level 3 from Level 2	268			43,907			—
Transfers out of Level 3 into Level 2 (1)	—			(28,253		)	—
Ending balance	$	99,637		$	83,908		$	57,807
Six Months Ended June 30, 2014
Opening balance	$	147,338		$	93,413		$	73,904
Realized and unrealized gains (losses) included in net income	4,479			(355		)	(9,744		)
Purchases	50,840			16,938			—
Sales	(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	$	146,801		$	71,232		$	34,863

_______________________ 

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