Condensed Consolidated Guarantor Financial Statements (Tables)

12 Months Ended

Dec. 31, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Schedule of condensed consolidating balance sheet

Condensed Consolidating Balance Sheet:

As of December 31, 2016	Allied World Switzerland (Parent Guarantor)		Allied World Bermuda (Subsidiary Issuer)		Other Allied World Subsidiaries		Consolidating Adjustments			Allied World Switzerland Consolidated
ASSETS:
Investments	$	—	$	—	$	7,942.3	$	—		$	7,942.3
Cash and cash equivalents	13.1		0.8		707.0		—			720.9
Insurance balances receivable	—		—		784.0		—			784.0
Funds held	—		—		466.8		—			466.8
Reinsurance recoverable	—		—		1,625.0		—			1,625.0
Reinsurance recoverable on paid losses	—		—		104.4		—			104.4
Net deferred acquisition costs	—		—		121.1		—			121.1
Goodwill and intangible assets	—		—		494.4		—			494.4
Balances receivable on sale of investments	—		—		114.7		—			114.7
Investments in subsidiaries	3,433.7		4,020.1		—		(7,453.8		)	—
Due from subsidiaries	115.6		—		29.9		(145.5		)	—
Other assets	1.8		0.8		802.8		—			805.4
Total assets	$	3,564.2	$	4,021.7	$	13,192.4	$	(7,599.3	)	$	13,179.0
LIABILITIES:
Reserve for losses and loss expenses	$	—	$	—	$	6,639.2	$	—		$	6,639.2
Unearned premiums	—		—		1,688.1		—			1,688.1
Reinsurance balances payable	—		—		223.3		—			223.3
Balances due on purchases of investments	—		—		79.7		—			79.7
Senior notes	—		794.2		—		—			794.2
Other long-term debt	—		—		22.0		—			22.0
Due to subsidiaries	9.9		20.0		115.6		(145.5		)	—
Other liabilities	2.5		5.7		172.6		—			180.7
Total liabilities	12.4		819.9		8,940.5		(145.5		)	9,627.2
Total shareholders’ equity	3,551.8		3,201.8		4,251.9		(7,453.8		)	3,551.8
Total liabilities and shareholders’ equity	$	3,564.2	$	4,021.7	$	13,192.4	$	(7,599.3	)	$	13,179.0

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	8.5		8.3		209.5		(226.3		)	—
Other liabilities	2.7		22.2		159.7		—			184.5
Total liabilities	11.2		1,323.4		8,871.2		(226.3		)	9,979.4
Total shareholders’ equity	3,532.5		3,110.4		4,632.8		(7,743.3		)	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

Condensed Consolidating Income Statement:

Year Ended December 31, 2016	Allied World Switzerland (Parent Guarantor)			Allied World Bermuda (Subsidiary Issuer)			Other Allied World Subsidiaries			Consolidating Adjustments			Allied World Switzerland Consolidated
Net premiums earned	$	—		$	—		$	2,344.1		$	—		$	2,344.1
Net investment income	0.1			0.1			217.6			—			217.8
Net realized investment losses	—			—			2.1			—			2.1
Other income	—			—			12.4			—			12.4
Net losses and loss expenses	—			—			(1,501.8		)	—			(1,501.8		)
Acquisition costs	—			—			(339.8		)	—			(339.8		)
General and administrative expenses	(18.7		)	0.2			(393.0		)	—			(411.5		)
Other expense	—			—			(6.8		)	—			(6.8		)
Amortization of intangible assets	—			—			(10.7		)	—			(10.7		)
Interest expense	—			(61.6		)	(2.1		)	—			(63.7		)
Foreign exchange gain (loss)	—			—			4.1			—			4.1
Income tax (expense) benefit	(0.1		)	—			9.2			—			9.1
Equity in earnings of consolidated subsidiaries	274.0			341.9			—			(615.9		)	—
NET INCOME (LOSS)	$	255.3		$	280.6		$	335.3		$	(615.9	)	$	255.3
Other comprehensive income (loss)	(2.3		)	—			(2.3		)	2.3			(2.3		)
COMPREHENSIVE INCOME (LOSS)	$	253.0		$	280.6		$	333.0		$	(613.6	)	$	253.0

Year Ended December 31, 2015	Allied World Switzerland (Parent Guarantor)			Allied World Bermuda (Subsidiary Issuer)			Other Allied World Subsidiaries			Consolidating Adjustments			Allied World Switzerland Consolidated
Net premiums earned	$	—		$	—		$	2,488.4		$	—		$	2,488.4
Net investment income	—			0.1			182.0			—			182.1
Net realized investment gains	—			—			(127.6		)	—			(127.6		)
Other income	—			—			3.5			—			3.5
Net losses and loss expenses	—			—			(1,586.3		)	—			(1,586.3		)
Acquisition costs	—			—			(375.4		)	—			(375.4		)
General and administrative expenses	(36.7		)	(0.5		)	(369.1		)	—			(406.3		)
Other expense	—			—			(6.2		)	—			(6.2		)
Amortization of intangible assets	—			—			(9.8		)	—			(9.8		)
Interest expense	—			(59.2		)	(2.2		)	—			(61.4		)
Foreign exchange gain (loss)	—			—			(11.3		)	—			(11.3		)
Income tax (expense) benefit	(0.1		)	—			(5.7		)	—			(5.8		)
Equity in earnings of consolidated subsidiaries	120.7			157.3			—			(278.0		)	—
NET INCOME (LOSS)	$	83.9		$	97.7		$	180.3		$	(278.0	)	$	83.9
Other comprehensive income (loss)	(9.3		)	—			(9.3		)	9.3			(9.3		)
COMPREHENSIVE INCOME (LOSS)	$	74.6		$	97.7		$	171.0		$	(268.7	)	$	74.6

Year Ended December 31, 2014	Allied World Switzerland (Parent Guarantor)			Allied World Bermuda (Subsidiary Issuer)			Other Allied World Subsidiaries			Consolidating Adjustments			Allied World Switzerland Consolidated
Net premiums earned	$	—		$	—		$	2,182.7		$	—		$	2,182.7
Net investment income	0.1			—			176.8			—			176.9
Net realized investment gains	—			—			89.0			—			89.0
Other income	—			—			2.1			—			2.1
Net losses and loss expenses	—			—			(1,199.2		)	—			(1,199.2		)
Acquisition costs	—			—			(295.1		)	—			(295.1		)
General and administrative expenses	(35.6		)	(3.1		)	(327.1		)	—			(365.7		)
Other expense	—			—			(8.6		)	—			(8.6		)
Amortization of intangible assets	—			—			(2.5		)	—			(2.5		)
Interest expense	—			(55.4		)	(2.3		)	—			(57.8		)
Foreign exchange gain (loss)	—			0.1			(1.1		)	—			(1.0		)
Income tax (expense) benefit	(0.1		)	—			(30.4		)	—			(30.5		)
Equity in earnings of consolidated subsidiaries	525.9			564.6			—			(1,090.5		)	—
NET INCOME (LOSS)	$	490.3		$	506.2		$	584.3		$	(1,090.5	)	$	490.3
Other comprehensive income (loss)	—			—			—			—			—
COMPREHENSIVE INCOME (LOSS)	$	490.3		$	506.2		$	584.3		$	(1,090.5	)	$	490.3

Schedule of condensed consolidating statement of cash flows

Condensed Consolidating Statement of Cash Flows:

Year Ended December 31, 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	$	238.8		$	506.4		$	493.6		$	(841.0	)	$	397.8
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES:
Purchases trading securities	—			—			(5,423.7		)	—			(5,423.7		)
Purchases of other invested assets	—			—			(119.0		)	—			(119.0		)
Sales of trading securities	—			—			5,929.9			—			5,929.9
Sales of other invested assets	—			—			96.3			—			96.3
Net cash paid for acquisitions	—			—			(1.2		)	—			(1.2		)
Return of investment in subsidiary	—			250.0			—			(250.0		)	—
Other	—			—			(19.4		)	—			(19.4		)
Net cash provided by (used in) investing activities	—			250.0			462.9			(250.0		)	462.9
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES:
Dividends paid	(91.5		)	—			—			—			(91.5		)
Intercompany dividends paid	—			(256.6		)	(584.4		)	841.0			—
Proceeds to parent	—			—			(250.0		)	250.0			—
Proceeds from the exercise of stock options	10.3			—			—			—			10.3
Share repurchases	(166.3		)	—			—			—			(166.3		)
Repayment of senior notes	—			(500.0		)	—			—			(500.0		)
Repayment of other long-term debt	—			—			(0.3		)	—			(0.3		)
Net cash provided by (used in) financing activities	(247.5		)	(756.6		)	(834.7		)	1,091.0			(747.8		)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(8.7		)	(0.2		)	121.8			—			112.9
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR	21.8			1.0			585.2			—			608.0
CASH AND CASH EQUIVALENTS, END OF YEAR	$	13.1		$	0.8		$	707.0		$	—		$	720.9

Year Ended December 31, 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	$	339.6		$	377.7		$	598.1		$	(811.1	)	$	504.3
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES:
Purchases of trading securities	—			—			(5,863.2		)	—			(5,863.2		)
Purchases of other invested assets	—			—			(126.7		)	—			(126.7		)
Sales of trading securities	—			—			5,328.8			—			5,328.8
Sales of other invested assets	—			—			161.3			—			161.3
Net cash paid for acquisitions	—			—			(124.4		)	—			(124.4		)
Capital contributions	—			(496.7		)	496.7			—			—
Other	—			—			(11.5		)	—			(11.5		)
Net cash provided by (used in) investing activities	—			(496.7		)	(139.0		)	—			(635.7		)
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES:
Dividends paid	(114.1		)	—			—			—			(114.1		)
Intercompany dividends paid	—			(378.4		)	(432.7		)	811.1			—
Proceeds from the exercise of stock options	10.1			—			—			—			10.1
Share repurchases	(246.4		)	—			—			—			(246.4		)
Proceeds from senior notes	—			496.7			—			—			496.7
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	(350.4		)	118.3			(428.9		)	811.1			150.1
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(10.8		)	(0.7		)	30.2			—			18.7
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR	32.6			1.7			555.0			—			589.3
CASH AND CASH EQUIVALENTS, END OF YEAR	$	21.8		$	1.0		$	585.2		$	—		$	608.0

Year Ended December 31, 2014	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:	$	264.4		$	292.9		$	493.8		$	(643.3	)	$	407.8
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES:
Purchases of trading securities	—			—			(7,630.0		)	—			(7,630.0		)
Purchases of other invested assets	—			—			(307.9		)	—			(307.9		)
Sales of trading securities	—			—			7,536.9			—			7,536.9
Sales of other invested assets	—			—			267.9			—			267.9
Net cash paid for acquisitions	—			—			(2.6		)	—			(2.6		)
Other	—			—			8.7			—			8.7
Net cash provided by (used in) investing activities	—			—			(127.0		)	—			(127.0		)
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES:
Dividends paid	(76.7		)	—			—			—			(76.7		)
Intercompany dividends paid	—			(294.0		)	(349.3		)	643.3			—
Proceeds from the exercise of stock options	10.0			—			—			—			10.0
Share repurchases	(175.9		)	—			—			—			(175.9		)
Proceeds from other long-term debt	—			—			19.2			—			19.2
Net cash provided by (used in) financing activities	(242.6		)	(294.0		)	(330.1		)	643.3			(223.4		)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	21.8			(1.1		)	36.7			—			57.4
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR	10.8			2.8			518.3			—			531.9
CASH AND CASH EQUIVALENTS, END OF YEAR	$	32.6		$	1.7		$	555.0		$	—		$	589.3