XML 39 R28.htm IDEA: XBRL DOCUMENT v3.5.0.2
Condensed Consolidated Guarantor Financial Statements (Tables)
6 Months Ended
Jun. 30, 2016
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Schedule of condensed consolidating balance sheet
Unaudited Condensed Consolidating Balance Sheet:
As of June 30, 2016
Allied World
Switzerland
(Parent
Guarantor)
 
Allied World
Bermuda
(Subsidiary
Issuer)
 
Other Allied
World
Subsidiaries
 
Consolidating
Adjustments
 
Allied World
Switzerland
Consolidated
ASSETS:
 
 
 
 
 
 
 
 
 
Investments
$

 
$

 
$
8,936.3

 
$

 
$
8,936.3

Cash and cash equivalents
22.6

 
1.1

 
560.8

 

 
584.5

Insurance balances receivable

 

 
961.0

 

 
961.0

Funds held

 

 
279.1

 

 
279.1

Reinsurance recoverable

 

 
1,516.7

 

 
1,516.7

Reinsurance recoverable on paid losses

 

 
73.8

 

 
73.8

Net deferred acquisition costs

 

 
168.9

 

 
168.9

Goodwill and intangible assets

 

 
506.1

 

 
506.1

Balances receivable on sale of investments

 

 
114.6

 

 
114.6

Investments in subsidiaries
3,381.1

 
4,190.9

 

 
(7,572.0
)
 

Due from subsidiaries
186.3

 
275.6

 
11.3

 
(473.2
)
 

Other assets
1.5

 
0.8

 
724.0

 

 
726.3

Total assets
$
3,591.5

 
$
4,468.4

 
$
13,852.6

 
$
(8,045.2
)
 
$
13,867.3

LIABILITIES:
 
 
 
 
 
 
 
 
 
Reserve for losses and loss expenses
$

 
$

 
$
6,623.2

 
$

 
$
6,623.2

Unearned premiums

 

 
1,822.1

 

 
1,822.1

Reinsurance balances payable

 

 
227.7

 

 
227.7

Balances due on purchases of investments

 

 
155.0

 

 
155.0

Senior notes

 
1,293.7

 

 

 
1,293.7

Other long-term debt

 

 
23.1

 

 
23.1

Due to subsidiaries
3.6

 
7.7

 
461.9

 
(473.2
)
 

Other liabilities
3.4

 
21.4

 
113.2

 

 
138.0

Total liabilities
7.0

 
1,322.8

 
9,426.2

 
(473.2
)
 
10,282.8

Total shareholders’ equity
3,584.5

 
3,145.6

 
4,426.4

 
(7,572.0
)
 
3,584.5

Total liabilities and shareholders’ equity
$
3,591.5

 
$
4,468.4

 
$
13,852.6

 
$
(8,045.2
)
 
$
13,867.3

 
As of December 31, 2015
Allied World
Switzerland
(Parent
Guarantor)
 
Allied World
Bermuda
(Subsidiary
Issuer)
 
Other Allied
World
Subsidiaries
 
Consolidating
Adjustments
 
Allied World
Switzerland
Consolidated
ASSETS:
 
 
 
 
 
 
 
 
 
Investments

 

 
8,571.2

 

 
$
8,571.2

Cash and cash equivalents
21.8

 
1.0

 
585.2

 

 
608.0

Insurance balances receivable

 

 
745.9

 

 
745.9

Funds held

 

 
640.8

 

 
640.8

Reinsurance recoverable

 

 
1,480.0

 

 
1,480.0

Reinsurance recoverable on paid losses

 

 
96.4

 

 
96.4

Net deferred acquisition costs

 

 
165.2

 

 
165.2

Goodwill and intangible assets

 

 
504.7

 

 
504.7

Balances receivable on sale of investments

 

 
36.9

 

 
36.9

Investments in subsidiaries
3,347.0

 
4,396.3

 

 
(7,743.3
)
 

Due from subsidiaries
173.1

 
36.4

 
16.8

 
(226.3
)
 

Other assets
1.8

 
0.1

 
660.9

 

 
662.8

Total assets
$
3,543.7

 
$
4,433.8

 
$
13,504.0

 
$
(7,969.6
)
 
$
13,511.9

LIABILITIES:
 
 
 
 
 
 
 
 
 
Reserve for losses and loss expenses

 

 
6,456.2

 

 
$
6,456.2

Unearned premiums

 

 
1,683.3

 

 
1,683.3

Reinsurance balances payable

 

 
214.4

 

 
214.4

Balances due on purchases of investments

 

 
125.1

 

 
125.1

Senior notes

 
1,292.9

 

 

 
1,292.9

Other long-term debt

 

 
23.0

 

 
23.0

Due to subsidiaries
8.6

 
8.3

 
209.5

 
(226.4
)
 

Other liabilities
2.6

 
22.2

 
159.7

 

 
184.5

Total liabilities
11.2

 
1,323.4

 
8,871.2

 
(226.4
)
 
9,979.4

Total shareholders’ equity
3,532.5

 
3,110.4

 
4,632.8

 
(7,743.2
)
 
3,532.5

Total liabilities and shareholders’ equity
$
3,543.7

 
$
4,433.8

 
$
13,504.0

 
$
(7,969.6
)
 
$
13,511.9

Schedule of condensed consolidating income statement
Unaudited Condensed Consolidating Statement of Operations and Comprehensive Income:
 
Three Months Ended June 30, 2016
Allied World
Switzerland
(Parent
Guarantor)
 
Allied World
Bermuda
(Subsidiary
Issuer)
 
Other Allied
World
Subsidiaries
 
Consolidating
Adjustments
 
Allied World
Switzerland
Consolidated
Net premiums earned
$

 
$

 
$
602.9

 
$

 
$
602.9

Net investment income

 

 
55.8

 

 
55.8

Net realized investment gains (losses)

 

 
74.5

 

 
74.5

Other income

 

 
5.2

 

 
5.2

Net losses and loss expenses

 

 
(365.4
)
 

 
(365.4
)
Acquisition costs

 

 
(87.4
)
 

 
(87.4
)
General and administrative expenses
2.0

 
(0.1
)
 
(106.6
)
 

 
(104.7
)
Other expense

 

 
(1.7
)
 

 
(1.7
)
Amortization of intangible assets

 

 
(2.5
)
 

 
(2.5
)
Interest expense

 
(19.4
)
 
(0.5
)
 

 
(19.9
)
Foreign exchange gain (loss)
(0.1
)
 

 
3.0

 

 
2.9

Income tax (expense) benefit
(1.0
)
 

 
(5.3
)
 

 
(6.3
)
Equity in earnings of consolidated subsidiaries
152.5

 
170.6

 

 
(323.1
)
 

NET INCOME (LOSS)
$
153.4

 
$
151.1

 
$
172.0

 
$
(323.1
)
 
$
153.4

Other comprehensive loss
0.1

 

 
0.1

 
(0.1
)
 
0.1

COMPREHENSIVE INCOME (LOSS)
$
153.5

 
$
151.1

 
$
172.1

 
$
(323.2
)
 
$
153.5

Three Months Ended June 30, 2015
Allied World
Switzerland
(Parent
Guarantor)
 
Allied World
Bermuda
(Subsidiary
Issuer)
 
Other Allied
World
Subsidiaries
 
Consolidating
Adjustments
 
Allied World
Switzerland
Consolidated
Net premiums earned
$

 
$

 
$
646.4

 
$

 
$
646.4

Net investment income

 

 
42.8

 

 
42.8

Net realized investment gains (losses)

 

 
(20.2
)
 

 
(20.2
)
Other income

 

 
0.9

 

 
0.9

Net losses and loss expenses

 

 
(431.5
)
 

 
(431.5
)
Acquisition costs

 

 
(100.6
)
 

 
(100.6
)
General and administrative expenses
(10.2
)
 
(0.4
)
 
(97.8
)
 

 
(108.4
)
Other expense

 

 
(1.2
)
 

 
(1.2
)
Amortization of intangible assets

 

 
(2.8
)
 

 
(2.8
)
Interest expense

 
(13.9
)
 
(0.6
)
 

 
(14.5
)
Foreign exchange gain (loss)

 

 
(1.3
)
 

 
(1.3
)
Income tax (expense) benefit
0.6

 

 
(0.7
)
 

 
(0.1
)
Equity in earnings of consolidated subsidiaries
19.1

 
31.9

 

 
(51.0
)
 

NET INCOME (LOSS)
$
9.5

 
$
17.6

 
$
33.4

 
$
(51.0
)
 
$
9.5

Other comprehensive loss
(3.3
)
 

 
(3.3
)
 
3.3

 
(3.3
)
COMPREHENSIVE INCOME (LOSS)
$
6.2

 
$
17.6

 
$
30.1

 
$
(47.7
)
 
$
6.2


Six Months Ended June 30, 2016
Allied World
Switzerland
(Parent
Guarantor)
 
Allied World
Bermuda
(Subsidiary
Issuer)
 
Other Allied
World
Subsidiaries
 
Consolidating
Adjustments
 
Allied World
Switzerland
Consolidated
Net premiums earned
$

 
$

 
$
1,183.0

 
$

 
$
1,183.0

Net investment income

 

 
109.1

 

 
109.1

Net realized investment gains (losses)

 

 
93.4

 

 
93.4

Other income

 

 
5.7

 

 
5.7

Net losses and loss expenses

 

 
(737.8
)
 

 
(737.8
)
Acquisition costs

 

 
(175.7
)
 

 
(175.7
)
General and administrative expenses
2.6

 
0.4

 
(204.1
)
 

 
(201.1
)
Other expense

 

 
(2.8
)
 

 
(2.8
)
Amortization of intangible assets

 

 
(5.0
)
 

 
(5.0
)
Interest expense

 
(38.8
)
 
(1.0
)
 

 
(39.8
)
Foreign exchange gain (loss)
(0.1
)
 

 
6.0

 

 
5.9

Income tax (expense) benefit
(1.3
)
 

 
(6.1
)
 

 
(7.4
)
Equity in earnings of consolidated subsidiaries
226.3

 
266.5

 

 
(492.8
)
 

NET INCOME (LOSS)
$
227.5

 
$
228.1

 
$
264.7

 
$
(492.8
)
 
$
227.5

Other comprehensive loss
3.3

 

 
3.3

 
(3.3
)
 
3.3

COMPREHENSIVE INCOME (LOSS)
$
230.8

 
$
228.1

 
$
268.0

 
$
(496.1
)
 
$
230.8


Six Months Ended June 30, 2015
Allied World
Switzerland
(Parent
Guarantor)
 
Allied World
Bermuda
(Subsidiary
Issuer)
 
Other Allied
World
Subsidiaries
 
Consolidating
Adjustments
 
Allied World
Switzerland
Consolidated
Net premiums earned
$

 
$

 
$
1,214.9

 
$

 
$
1,214.9

Net investment income

 

 
87.3

 

 
87.3

Net realized investment gains (losses)

 

 
24.8

 

 
24.8

Other income

 

 
1.9

 

 
1.9

Net losses and loss expenses

 

 
(756.7
)
 

 
(756.7
)
Acquisition costs

 

 
(179.3
)
 

 
(179.3
)
General and administrative expenses
(19.6
)
 
(0.2
)
 
(185.7
)
 

 
(205.5
)
Other expense

 

 
(3.1
)
 

 
(3.1
)
Amortization of intangible assets

 

 
(3.4
)
 

 
(3.4
)
Interest expense

 
(27.7
)
 
(1.1
)
 

 
(28.8
)
Foreign exchange gain (loss)

 

 
(11.2
)
 

 
(11.2
)
Income tax (expense) benefit
(0.1
)
 

 
(7.0
)
 

 
(7.1
)
Equity in earnings of consolidated subsidiaries
153.5

 
175.6

 

 
(329.1
)
 

NET INCOME (LOSS)
$
133.8

 
$
147.7

 
$
181.4

 
$
(329.1
)
 
$
133.8

Other comprehensive loss
(3.3
)
 

 
(3.3
)
 
3.3

 
(3.3
)
COMPREHENSIVE INCOME (LOSS)
$
130.5

 
$
147.7

 
$
178.1

 
$
(325.8
)
 
$
130.5

Schedule of condensed consolidating statement of cash flows
Unaudited Condensed Consolidating Statement of Cash Flows:
Six Months Ended June 30, 2016
Allied World
Switzerland
(Parent
Guarantor)
 
Allied World
Bermuda
(Subsidiary
Issuer)
 
Other Allied
World
Subsidiaries
 
Consolidating
Adjustments
 
Allied World
Switzerland
Consolidated
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES
$
183.4

 
$
194.7

 
$
552.5

 
$
(429.1
)
 
$
501.5

CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Purchases of trading securities

 

 
(3,257.8
)
 

 
(3,257.8
)
Purchases of other invested assets

 

 
(33.2
)
 

 
(33.2
)
Sales of trading securities

 

 
2,932.2

 

 
2,932.2

Sales of other invested assets

 

 
37.3

 

 
37.3

Net cash paid for acquisitions

 

 
(1.2
)
 

 
(1.2
)
Other

 

 
(19.5
)
 

 
(19.5
)
Net cash provided by (used in) investing activities

 

 
(342.2
)
 

 
(342.2
)
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES:
 
 
 
 
 
 
 
 


Dividends paid
(46.2
)
 

 

 

 
(46.2
)
Intercompany dividend paid

 
(194.6
)
 
(234.5
)
 
429.1

 

Proceeds from the exercise of stock options
3.1

 

 

 

 
3.1

Share repurchases
(139.5
)
 

 

 

 
(139.5
)
Repayment of other long-term debt

 

 
(0.2
)
 

 
(0.2
)
Net cash provided by (used in) financing activities
(182.6
)
 
(194.6
)
 
(234.7
)
 
429.1

 
(182.8
)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
0.8

 
0.1

 
(24.4
)
 

 
(23.5
)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
21.8

 
1.0

 
585.2

 

 
608.0

CASH AND CASH EQUIVALENTS, END OF PERIOD
$
22.6

 
$
1.1

 
$
560.8

 
$

 
$
584.5

Six Months Ended June 30, 2015
Allied World
Switzerland
(Parent
Guarantor)
 
Allied World
Bermuda
(Subsidiary
Issuer)
 
Other Allied
World
Subsidiaries
 
Consolidating
Adjustments
 
Allied World
Switzerland
Consolidated
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES:
$
278.8

 
$
298.6

 
$
471.9

 
$
(624.1
)
 
$
425.2

CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Purchases of trading securities

 

 
(2,854.8
)
 

 
(2,854.8
)
Purchases of other invested assets

 

 
(73.1
)
 

 
(73.1
)
Sales of trading securities

 

 
2,953.6

 

 
2,953.6

Sales of other invested assets

 

 
85.5

 

 
85.5

Net cash paid for acquisitions

 

 
(141.5
)
 

 
(141.5
)
Other

 

 
(44.1
)
 

 
(44.1
)
Net cash provided by (used in) investing activities

 

 
(74.4
)
 

 
(74.4
)
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES:
 
 
 
 
 
 
 
 


Dividends paid
(43.2
)
 

 

 

 
(43.2
)
Intercompany dividends paid

 
(298.4
)
 
(325.7
)
 
624.1

 

Proceeds from the exercise of stock options
7.4

 

 

 

 
7.4

Proceeds from other long-term debt

 

 
3.9

 

 
3.9

Share repurchases
(246.4
)
 

 

 

 
(246.4
)
Net cash provided by (used in) financing activities
(282.2
)
 
(298.4
)
 
(321.8
)
 
624.1

 
(278.3
)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
(3.4
)
 
0.2

 
75.7

 

 
72.5

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
32.6

 
1.7

 
555.0

 

 
589.3

CASH AND CASH EQUIVALENTS, END OF PERIOD
$
29.2

 
$
1.9

 
$
630.7

 
$

 
$
661.8