Commitments And Contingencies

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

a) Concentrations of Credit Risk

Credit risk arises out of the failure of a counterparty to perform according to the terms of the contract.

The Company’s investment portfolio is managed pursuant to guidelines that follow prudent standards of diversification. The guidelines limit the allowable holdings of a single issue and issuers. The Company believes that there are no significant concentrations of credit risk associated with its investment portfolio. As of December 31, 2016 and 2015, substantially all of the Company’s cash and investments were held with one custodian.

Insurance balances receivable primarily consist of net premiums due from insureds and reinsureds. The Company believes that the counterparties to these receivables are able to meet, and will meet, all of their obligations. The Company’s credit risk is further reduced by the contractual right to offset loss obligations or unearned premiums against premiums receivable. The insurance balances receivable that are outstanding greater than 90 days was $20.0 million as of December 31, 2016, which represented 2.5% of the total receivable balance. Given the trend of writing more retail business, the Company has recorded an allowance for doubtful accounts against insurance balances receivable of $3.0 million as of December 31, 2016.

b) Operating Leases

The Company leases office space under operating leases expiring in various years through 2031. The following are future minimum rental payments as of December 31, 2016:



	Amount
2017	$	21.6
2018	20.7
2019	19.6
2020	17.8
2021	16.9
2021 and thereafter	116.2
	$	212.8

Total rent expense for the years ended December 31, 2016, 2015 and 2014 was $26.5 million, $25.9 million and $19.0 million, respectively. The rent expense for the years ended December 31, 2016, 2015 and 2014 are net of sublease income of $1.8 million, $0.7 million and $0.1 million, respectively.

c) Producers

The three largest individual producers as a percentage of gross premiums written are as follows:



	Year Ended December 31,
	2016		2015		2014
Marsh & McLennan Companies, Inc.	21	%	24	%	25	%
Aon Corporation	14	%	16	%	17	%
Willis Group Holdings	9	%	11	%	10	%

d) Legal Proceedings

The Company, in common with the insurance industry in general, is subject to litigation and arbitration in the normal course of its business. These legal proceedings generally relate to claims asserted by or against the Company in the ordinary course of insurance or reinsurance operations. Estimated amounts payable under these proceedings are included in the reserve for losses and loss expenses in the Company’s consolidated balance sheets. As of December 31, 2016, the Company was not a party to any material legal proceedings arising outside the ordinary course of business that management believes will have a material adverse effect on the Company’s results of operations, financial position or cash flow.