Condensed Consolidated Guarantor Financial Statements (Tables)

9 Months Ended

Sep. 30, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Schedule of condensed consolidating balance sheet

Unaudited Condensed Consolidating Balance Sheet:

As of September 30, 2016	Allied World Switzerland (Parent Guarantor)		Allied World Bermuda (Subsidiary Issuer)		Other Allied World Subsidiaries		Consolidating Adjustments			Allied World Switzerland Consolidated
ASSETS:
Investments	$	—	$	—	$	8,485.1	$	—		$	8,485.1
Cash and cash equivalents	14.8		0.9		758.1		—			773.8
Insurance balances receivable	—		—		893.3		—			893.3
Funds held	—		—		263.9		—			263.9
Reinsurance recoverable	—		—		1,550.7		—			1,550.7
Reinsurance recoverable on paid losses	—		—		129.1		—			129.1
Net deferred acquisition costs	—		—		157.7		—			157.7
Goodwill and intangible assets	—		—		503.9		—			503.9
Balances receivable on sale of investments	—		—		20.3		—			20.3
Investments in subsidiaries	3,466.4		4,038.4		—		(7,504.8		)	—
Due from subsidiaries	145.0		6.9		17.3		(169.2		)	—
Other assets	2.1		0.8		761.7		—			764.6
Total assets	$	3,628.3	$	4,047.0	$	13,541.1	$	(7,674.0	)	$	13,542.4
LIABILITIES:
Reserve for losses and loss expenses	$	—	$	—	$	6,665.8	$	—		$	6,665.8
Unearned premiums	—		—		1,785.2		—			1,785.2
Reinsurance balances payable	—		—		258.4		—			258.4
Balances due on purchases of investments	—		—		242.4		—			242.4
Senior notes	—		794.0		—		—			794.0
Other long-term debt	—		—		23.3		—			23.3
Due to subsidiaries	9.7		7.7		151.8		(169.2		)	—
Other liabilities	2.7		15.3		139.4		—			157.4
Total liabilities	12.4		817.0		9,266.3		(169.2		)	9,926.5
Total shareholders’ equity	3,615.9		3,230.0		4,274.8		(7,504.8		)	3,615.9
Total liabilities and shareholders’ equity	$	3,628.3	$	4,047.0	$	13,541.1	$	(7,674.0	)	$	13,542.4

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 September 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	$	—		$	—		$	584.0		$	—		$	584.0
Net investment income	—			0.1			50.5			—			50.6
Net realized investment gains (losses)	—			—			10.7			—			10.7
Other income	—			—			1.8			—			1.8
Net losses and loss expenses	—			—			(376.3		)	—			(376.3		)
Acquisition costs	—			—			(82.0		)	—			(82.0		)
General and administrative expenses	(9.5		)	(0.2		)	(94.5		)	—			(104.2		)
Other expense	—			—			(2.2		)	—			(2.2		)
Amortization of intangible assets	—			—			(2.5		)	—			(2.5		)
Interest expense	—			(13.0		)	(0.5		)	—			(13.5		)
Foreign exchange gain (loss)	—			—			(1.0		)	—			(1.0		)
Income tax (expense) benefit	0.5			—			2.7			—			3.2
Equity in earnings of consolidated subsidiaries	77.6			90.7			—			(168.3		)	—
NET INCOME (LOSS)	$	68.6		$	77.6		$	90.7		$	(168.3	)	$	68.6
Other comprehensive income (loss)	0.6			—			0.6			(0.6		)	0.6
COMPREHENSIVE INCOME (LOSS)	$	69.2		$	77.6		$	91.3		$	(168.9	)	$	69.2

Three Months Ended September 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	$	—		$	—		$	650.7		$	—	$	650.7
Net investment income	—			—			45.7			—		45.7
Net realized investment gains (losses)	—			—			(113.6		)	—		(113.6		)
Other income	—			—			0.7			—		0.7
Net losses and loss expenses	—			—			(416.9		)	—		(416.9		)
Acquisition costs	—			—			(100.1		)	—		(100.1		)
General and administrative expenses	(7.4		)	0.6			(99.0		)	—		(105.8		)
Other expense	—			—			(1.3		)	—		(1.3		)
Amortization of intangible assets	—			—			(2.6		)	—		(2.6		)
Interest expense	—			(13.9		)	(0.6		)	—		(14.5		)
Foreign exchange gain (loss)	—			—			0.8			—		0.8
Income tax (expense) benefit	(0.5		)	—			5.8			—		5.3
Equity in earnings of consolidated subsidiaries	(43.7		)	(37.0		)	—			80.7		—
NET INCOME (LOSS)	$	(51.6	)	$	(50.3	)	$	(30.4	)	$	80.7	$	(51.6	)
Other comprehensive income (loss)	(1.0		)	—			(1.0		)	1.0		(1.0		)
COMPREHENSIVE INCOME (LOSS)	$	(52.6	)	$	(50.3	)	$	(31.4	)	$	81.7	$	(52.6	)

Nine Months Ended September 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	$	—		$	—		$	1,767.1		$	—		$	1,767.1
Net investment income	—			0.1			159.6			—			159.7
Net realized investment gains (losses)	—			—			104.0			—			104.0
Other income	—			—			7.6			—			7.6
Net losses and loss expenses	—			—			(1,114.1		)	—			(1,114.1		)
Acquisition costs	—			—			(257.7		)	—			(257.7		)
General and administrative expenses	(7.0		)	0.3			(298.6		)	—			(305.3		)
Other expense	—			—			(5.0		)	—			(5.0		)
Amortization of intangible assets	—			—			(7.5		)	—			(7.5		)
Interest expense	—			(51.8		)	(1.5		)	—			(53.3		)
Foreign exchange gain (loss)	(0.1		)	—			5.0			—			4.9
Income tax (expense) benefit	(0.8		)	—			(3.5		)	—			(4.3		)
Equity in earnings of consolidated subsidiaries	304.0			357.2			—			(661.2		)	—
NET INCOME (LOSS)	$	296.1		$	305.8		$	355.4		$	(661.2	)	$	296.1
Other comprehensive income (loss)	3.9			—			3.9			(3.9		)	3.9
COMPREHENSIVE INCOME (LOSS)	$	300.0		$	305.8		$	359.3		$	(665.1	)	$	300.0

Nine Months Ended September 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	$	—		$	—		$	1,865.6		$	—		$	1,865.6
Net investment income	—			—			133.0			—			133.0
Net realized investment gains (losses)	—			—			(88.8		)	—			(88.8		)
Other income	—			—			2.5			—			2.5
Net losses and loss expenses	—			—			(1,173.6		)	—			(1,173.6		)
Acquisition costs	—			—			(279.4		)	—			(279.4		)
General and administrative expenses	(27.1		)	0.4			(284.6		)	—			(311.3		)
Other expense	—			—			(4.3		)	—			(4.3		)
Amortization of intangible assets	—			—			(6.1		)	—			(6.1		)
Interest expense	—			(41.6		)	(1.6		)	—			(43.2		)
Foreign exchange gain (loss)	—			—			(10.4		)	—			(10.4		)
Income tax (expense) benefit	(0.6		)	—			(1.2		)	—			(1.8		)
Equity in earnings of consolidated subsidiaries	109.9			138.6			—			(248.5		)	—
NET INCOME (LOSS)	$	82.2		$	97.4		$	151.1		$	(248.5	)	$	82.2
Other comprehensive income	(4.3		)	—			(4.3		)	4.3			(4.3		)
COMPREHENSIVE INCOME (LOSS)	$	77.9		$	97.4		$	146.8		$	(244.2	)	$	77.9

Schedule of condensed consolidating statement of cash flows

Unaudited Condensed Consolidating Statement of Cash Flows:

Nine Months Ended September 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	$	219.8		$	477.5		$	688.0		$	(763.9	)	$	621.4
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES:
Purchases of trading securities	—			—			(4,322.6		)	—			(4,322.6		)
Purchases of other invested assets	—			—			(58.5		)	—			(58.5		)
Sales of trading securities	—			—			4,595.8			—			4,595.8
Sales of other invested assets	—			—			99.2			—			99.2
Net cash paid for acquisitions	—			—			(1.2		)	—			(1.2		)
Return of investment in subsidiary	—			250.0			—			(250.0		)	—
Other	—			—			(41.3		)	—			(41.3		)
Net cash provided by (used in) investing activities	—			250.0			271.4			(250.0		)	271.4
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES:
Dividends paid	(68.8		)	—			—			—			(68.8		)
Intercompany dividends paid	—			(227.6		)	(536.3		)	763.9			—
Proceeds to parent	—			—			(250.0		)	250.0			—
Proceeds from the exercise of stock options	7.7			—			—			—			7.7
Share repurchases	(165.7		)	—			—			—			(165.7		)
Repayment of senior notes	—			(500.0		)	—			—			(500.0		)
Proceeds from other long-term debt	—			—			—			—			—
Repayment of other long-term debt	—			—			(0.2		)	—			(0.2		)
Net cash provided by (used in) financing activities	(226.8		)	(727.6		)	(786.5		)	1,013.9			(727.0		)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(7.0		)	(0.1		)	172.9			—			165.8
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	21.8			1.0			585.2			—			608.0
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	14.8		$	0.9		$	758.1		$	—		$	773.8

Nine Months Ended September 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:	$	302.0		$	333.1		$	661.1		$	(712.8	)	$	583.4
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES:
Purchases of trading securities	—			—			(3,962.3		)	—			(3,962.3		)
Purchases of other invested assets	—			—			(110.9		)	—			(110.9		)
Sales of trading securities	—			—			3,888.4			—			3,888.4
Sales of other invested assets	—			—			160.3			—			160.3
Net cash paid for acquisitions	—			—			(141.5		)	—			(141.5		)
Other	—			—			(102.7		)	—			(102.7		)
Net cash provided by (used in) investing activities	—			—			(268.7		)	—			(268.7		)
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES:
Dividends paid	(66.8		)	—			—			—			(66.8		)
Intercompany dividends paid	—			(333.4		)	(379.4		)	712.8			—
Proceeds from the exercise of stock options	9.2			—			—			—			9.2
Share repurchases	(246.4		)	—			—			—			(246.4		)
Proceeds from other long-term debt	—			—			4.0			—			4.0
Repayment of other long-term debt	—			—			(0.2		)	—			(0.2		)
Net cash provided by (used in) financing activities	(304.0		)	(333.4		)	(375.6		)	712.8			(300.2		)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(2.0		)	(0.3		)	16.8			—			14.5
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	32.6			1.7			555.0			—			589.3
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	30.6		$	1.4		$	571.8		$	—		$	603.8