Condensed Consolidated Guarantor Financial Statements (Tables)

12 Months Ended

Dec. 31, 2013

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Schedule of condensed consolidating balance sheet

Condensed Consolidating Balance Sheet:

As of December 31, 2013	Allied World Switzerland (Parent Guarantor)		Allied World Bermuda (Subsidiary Issuer)		Other Allied World Subsidiaries		Consolidating Adjustments			Allied World Switzerland Consolidated
ASSETS:
Investments	$	—	$	—	$	7,712,036	$	—		$	7,712,036
Cash and cash equivalents	10,790		2,775		518,371		—			531,936
Insurance balances receivable	—		—		664,731		—			664,731
Funds held	—		—		632,430		—			632,430
Reinsurance recoverable	—		—		1,234,504		—			1,234,504
Net deferred acquisition costs	—		—		126,661		—			126,661
Goodwill and intangible assets	—		—		317,207		—			317,207
Balances receivable on sale of investments	—		—		76,544		—			76,544
Investments in subsidiaries	3,413,001		4,794,619		—		(8,207,620		)	—
Due from subsidiaries	111,172		122,846		123,479		(357,497		)	—
Other assets	1,757		4,671		643,353		—			649,781
Total assets	$	3,536,720	$	4,924,911	$	12,049,316	$	(8,565,117	)	$	11,945,830
LIABILITIES:
Reserve for losses and loss expenses	$	—	$	—	$	5,766,529	$	—		$	5,766,529
Unearned premiums	—		—		1,396,256		—			1,396,256
Reinsurance balances payable	—		—		173,023		—			173,023
Balances due on purchases of investments	—		—		104,740		—			104,740
Senior notes	—		798,499		—		—			798,499
Due to subsidiaries	12,945		110,534		234,018		(357,497		)	—
Other liabilities	3,949		17,797		165,211		—			186,957
Total liabilities	16,894		926,830		7,839,777		(357,497		)	8,426,004
Total shareholders’ equity	3,519,826		3,998,081		4,209,539		(8,207,620		)	3,519,826
Total liabilities and shareholders’ equity	$	3,536,720	$	4,924,911	$	12,049,316	$	(8,565,117	)	$	11,945,830

As of December 31, 2012	Allied World Switzerland (Parent Guarantor)		Allied World Bermuda (Subsidiary Issuer)		Other Allied World Subsidiaries		Consolidating Adjustments			Allied World Switzerland Consolidated
ASSETS:
Investments	$	—	$	—	$	7,933,937	$	—		$	7,933,937
Cash and cash equivalents	19,997		11,324		650,558		—			681,879
Insurance balances receivable	—		—		510,532		—			510,532
Funds held	—		—		336,368		—			336,368
Reinsurance recoverable	—		—		1,141,110		—			1,141,110
Net deferred acquisition costs	—		—		108,010		—			108,010
Goodwill and intangible assets	—		—		319,741		—			319,741
Balances receivable on sale of investments	—		—		418,879		—			418,879
Investments in subsidiaries	3,337,446		4,768,769		—		(8,106,215		)	—
Due from subsidiaries	239		2,685		33,961		(36,885		)	—
Other assets	1,499		6,081		571,910		—			579,490
Total assets	$	3,359,181	$	4,788,859	$	12,025,006	$	(8,143,100	)	$	12,029,946
LIABILITIES:
Reserve for losses and loss expenses	$	—	$	—	$	5,645,549	$	—		$	5,645,549
Unearned premiums	—		—		1,218,021		—			1,218,021
Reinsurance balances payable	—		—		136,264		—			136,264
Balances due on purchases of investments	—		—		759,934		—			759,934
Senior notes	—		798,215		—		—			798,215
Due to subsidiaries	24,103		9,858		2,924		(36,885		)	—
Other liabilities	8,743		17,727		119,158		—			145,628
Total liabilities	32,846		825,800		7,881,850		(36,885		)	8,703,611
Total shareholders’ equity	3,326,335		3,963,059		4,143,156		(8,106,215		)	3,326,335
Total liabilities and shareholders’ equity	$	3,359,181	$	4,788,859	$	12,025,006	$	(8,143,100	)	$	12,029,946

Schedule of condensed consolidating income statement

Condensed Consolidating Income Statement:

Year Ended December 31, 2013	Allied World Switzerland (Parent Guarantor)			Allied World Bermuda (Subsidiary Issuer)			Other Allied World Subsidiaries			Consolidating Adjustments			Allied World Switzerland Consolidated
Net premiums earned	$	—		$	—		$	2,005,833		$	—		$	2,005,833
Net investment income	13			4			157,547			—			157,564
Net realized investment gains	—			—			59,525			—			59,525
Net losses and loss expenses	—			—			(1,123,242		)	—			(1,123,242		)
Acquisition costs	—			—			(252,673		)	—			(252,673		)
General and administrative expenses	(42,122		)	(1,320		)	(308,843		)	—			(352,285		)
Amortization of intangible assets	—			—			(2,533		)	—			(2,533		)
Interest expense	—			(55,347		)	(1,163		)	—			(56,510		)
Foreign exchange gain (loss)	263			(1,045		)	(7,237		)	—			(8,019		)
Income tax (expense) benefit	98			—			(9,878		)	—			(9,780		)
Equity in earnings of consolidated subsidiaries	459,628			515,156			—			(974,784		)	—
NET INCOME (LOSS)	$	417,880		$	457,448		$	517,336		$	(974,784	)	$	417,880
Other comprehensive income	—			—			—			—			—
COMPREHENSIVE INCOME (LOSS)	$	417,880		$	457,448		$	517,336		$	(974,784	)	$	417,880

Year Ended December 31, 2012	Allied World Switzerland (Parent Guarantor)			Allied World Bermuda (Subsidiary Issuer)			Other Allied World Subsidiaries			Consolidating Adjustments			Allied World Switzerland Consolidated
Net premiums earned	$	—		$	—		$	1,748,898		$	—		$	1,748,898
Net investment income	26			20			167,095			—			167,141
Net realized investment gains	—			—			306,436			—			306,436
Net losses and loss expenses	—			—			(1,139,264		)	—			(1,139,264		)
Acquisition costs	—			—			(205,722		)	—			(205,722		)
General and administrative expenses	(35,258		)	(2,973		)	(269,090		)	—			(307,321		)
Amortization of intangible assets	—			—			(2,533		)	—			(2,533		)
Interest expense	—			(55,405		)	—			—			(55,405		)
Foreign exchange gain (loss)	159			(319		)	(623		)	—			(783		)
Income tax (expense) benefit	358			—			(18,798		)	—			(18,440		)
Equity in earnings of consolidated subsidiaries	527,722			573,256			—			(1,100,978		)	—
NET INCOME (LOSS)	$	493,007		$	514,579		$	586,399		$	(1,100,978	)	$	493,007
Unrealized gains on investments arising during the year net of applicable deferred income tax benefit of $265	(493		)	—			(493		)	493			(493		)
Reclassification adjustment for net realized investment gains included in net income, net of applicable income tax	(13,991		)	—			(13,991		)	13,991			(13,991		)
Other comprehensive loss	(14,484		)	—			(14,484		)	14,484			(14,484		)
COMPREHENSIVE INCOME (LOSS)	$	478,523		$	514,579		$	571,915		$	(1,086,494	)	$	478,523

Year Ended December 31, 2011	Allied World Switzerland (Parent Guarantor)			Allied World Bermuda (Subsidiary Issuer)			Other Allied World Subsidiaries			Consolidating Adjustments			Allied World Switzerland Consolidated
Net premiums earned	$	—		$	—		$	1,456,992		$	—		$	1,456,992
Net investment income	64			26			195,858			—			195,948
Net realized investment gains (loss)	—			(53,620		)	10,077			53,620			10,077
Other income	101,744			—			—			—			101,744
Net losses and loss expenses	—			—			(959,156		)	—			(959,156		)
Acquisition costs	—			—			(167,295		)	—			(167,295		)
General and administrative expenses	(13,354		)	(5,823		)	(252,479		)	—			(271,656		)
Amortization of intangible assets	—			—			(2,978		)	—			(2,978		)
Interest expense	—			(54,989		)	—			—			(54,989		)
Foreign exchange gain (loss)	9			(978		)	(2,190		)	—			(3,159		)
Income tax (expense) benefit	(7,940		)	—			(23,040		)	—			(30,980		)
Equity in earnings of consolidated subsidiaries	194,025			309,920			—			(503,945		)	—
NET INCOME (LOSS)	$	274,548		$	194,536		$	255,789		$	(450,325	)	$	274,548
Unrealized gains on investments arising during the year net of applicable deferred income tax expense of $3,035	5,243			—			5,243			(5,243		)	5,243
Reclassification adjustment for net realized investment gains included in net income, net of applicable income tax	(47,894		)	—			(47,894		)	47,894			(47,894		)
Other comprehensive loss	(42,651		)	—			(42,651		)	42,651			(42,651		)
COMPREHENSIVE INCOME (LOSS)	$	231,897		$	194,536		$	213,138		$	(407,674	)	$	231,897

Schedule of condensed consolidating statement of cash flows

Condensed Consolidating Statement of Cash Flows:

Year Ended December 31, 2013	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	$	198,702		$	(8,549	)	$	(84,044	)	$	—	$	106,109
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES:
Purchases trading securities	—			—			(7,527,670		)	—		(7,527,670		)
Purchases of other invested assets	—			—			(276,926		)	—		(276,926		)
Sales of trading securities	—			—			7,540,194			—		7,540,194
Sales of other invested assets	—			—			187,477			—		187,477
Other	—			—			28,782			—		28,782
Net cash provided by (used in) investing activities	—			—			(48,143		)	—		(48,143		)
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES:
Partial par value reduction	(12,981		)	—			—			—		(12,981		)
Dividends paid	(34,059		)	—			—			—		(34,059		)
Proceeds from the exercise of stock options	12,137			—			—			—		12,137
Share repurchases	(173,006		)	—			—			—		(173,006		)
Net cash provided by (used in) financing activities	(207,909		)	—			—			—		(207,909		)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(9,207		)	(8,549		)	(132,187		)	—		(149,943		)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR	19,997			11,324			650,558			—		681,879
CASH AND CASH EQUIVALENTS, END OF YEAR	$	10,790		$	2,775		$	518,371		$	—	$	531,936

Year Ended December 31, 2012	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	$	338,565		$	2,438	$	287,853		$	—		$	628,856
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES:
Purchases trading securities	—			—		(8,006,237		)	—			(8,006,237		)
Purchases of other invested assets	—			—		(333,031		)	—			(333,031		)
Sales of available for sale securities	—			—		236,978			—			236,978
Sales of trading securities	—			—		7,892,907			—			7,892,907
Sales of other invested assets	—			—		53,741			—			53,741
Capital contribution to subsidiary	(110,000		)	—		—			110,000			—
Other	—			—		(104,091		)	—			(104,091		)
Net cash provided by (used in) investing activities	(110,000		)	—		(259,733		)	110,000			(259,733		)
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES:
Partial par value reduction	(67,825		)	—		—			—			(67,825		)
Proceeds from the exercise of stock options	10,527			—		—			—			10,527
Share repurchases	(263,942		)	—		—			—			(263,942		)
Capital contribution from parent	—			—		110,000			(110,000		)	—
Net cash provided by (used in) financing activities	(321,240		)	—		110,000			(110,000		)	(321,240		)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(92,675		)	2,438		138,120			—			47,883
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR	112,672			8,886		512,438			—			633,996
CASH AND CASH EQUIVALENTS, END OF YEAR	$	19,997		$	11,324	$	650,558		$	—		$	681,879

Year Ended December 31, 2011	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:	$	87,592		$	(62,404	)	$	523,020		$	—	$	548,208
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES:
Purchases of available for sale securities	—			—			(727		)	—		(727		)
Purchases of trading securities	—			—			(7,854,053		)	—		(7,854,053		)
Purchases of other invested assets	—			—			(281,957		)	—		(281,957		)
Sales of available for sale securities	—			—			609,833			—		609,833
Sales of trading securities	—			—			6,942,291			—		6,942,291
Sales of other invested assets	—			—			71,543			—		71,543
Other	(4,496		)	—			8,442			—		3,946
Net cash provided by (used in) investing activities	(4,496		)	—			(504,628		)	—		(509,124		)
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES:
Partial par value reduction	(28,600		)	—			—			—		(28,600		)
Proceeds from the exercise of stock options	6,837			—			—			—		6,837
Share repurchases	(86,700		)	—			—			—		(86,700		)
Repurchase of founder warrants	—			(53,620		)	—			—		(53,620		)
Other	(449		)	(753		)	1,202			—		—
Net cash provided by (used in) financing activities	(108,912		)	(54,373		)	1,202			—		(162,083		)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(25,816		)	(116,777		)	19,594			—		(122,999		)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR	138,488			125,663			492,844			—		756,995
CASH AND CASH EQUIVALENTS, END OF YEAR	$	112,672		$	8,886		$	512,438		$	—	$	633,996