Fair value measurements (Tables)

3 Months Ended

Mar. 31, 2014

Fair Value Disclosures [Abstract]

Fair value hierarchy - allocation of investments

At March 31, 2014, the Company’s investments were allocated between Levels 1, 2 and 3 as follows:

	Level 1			Level 2		Level 3			Total
U.S. government and government agency	$	—		$	1,120,855	$	—		$	1,120,855
Non-U.S. government and government agency	—			442,329		—			442,329
U.S. states, municipalities and political subdivisions	—			44,464		—			44,464
Agency residential mortgage-backed securities	—			299,561		—			299,561
Non-agency residential mortgage-backed securities	—			16,330		—			16,330
U.S. corporate	—			1,337,410		—			1,337,410
Non-U.S. corporate	—			703,891		—			703,891
Bank loans	—			643,701		—			643,701
Catastrophe bonds	—			25,544		6,703			32,247
Asset-backed securities	—			624,499		—			624,499
Commercial mortgage-backed securities	—			22,313		—			22,313
Total fixed maturities	—			5,280,897		6,703			5,287,600
Total short-term investments	817,937			13,863		—			831,800
Other investments
Fund of hedge funds	—			—		2,194			2,194
Hedge funds (a)	—			—		606,462			606,462
Private equity investments	—			—		13,962			13,962
Investment fund	—			30,499		—			30,499
Mutual funds	—			9,857		—			9,857
Total other investments	—			40,356		622,618			662,974
Total investments including noncontrolling interests	$	817,937		$	5,335,116	$	629,321		$	6,782,374
Noncontrolling interest (a)	$	—		$	—	$	(531,403	)	$	(531,403	)
Redeemable noncontrolling interest (b)	$	(1,976	)	$	—	$	—		$	(1,976	)
Total investments excluding noncontrolling interests	$	815,961		$	5,335,116	$	97,918		$	6,248,995

(a) Included in the hedge funds balance are investments held by PaCRe in which the Company has an equity interest of 10%. The remaining 90% interest is held by third party investors and included in the Consolidated Balance Sheets as noncontrolling interest.

(b) Included in the total investments balance are investments held by one AlphaCat ILS fund which is consolidated by the Company but in which the Company has an equity interest of less than 100%. The remaining interests are held by third party investors and included in the Consolidated Balance Sheets as redeemable noncontrolling interest.

At December 31, 2013, the Company’s investments were allocated between Levels 1, 2 and 3 as follows:

	Level 1			Level 2		Level 3			Total
U.S. government and government agency	$	—		$	1,364,679	$	—		$	1,364,679
Non-U.S. government and government agency	—			459,068		—			459,068
U.S. states, municipalities and political subdivisions	—			43,120		—			43,120
Agency residential mortgage-backed securities	—			311,499		—			311,499
Non-agency residential mortgage-backed securities	—			15,759		—			15,759
U.S. corporate	—			1,332,484		—			1,332,484
Non-U.S. corporate	—			714,325		—			714,325
Bank loans	—			717,116		—			717,116
Catastrophe bonds	—			74,551		—			74,551
Asset-backed securities	—			509,657		—			509,657
Total fixed maturities	—			5,542,258		—			5,542,258
Total short-term investments	747,215			4,563		—			751,778
Other investments
Fund of hedge funds	—			—		2,303			2,303
Hedge funds (a)	—			—		561,083			561,083
Private equity investments	—			—		13,485			13,485
Investment fund	—			31,629		—			31,629
Mutual funds	—			9,816		—			9,816
Total other investments	—			41,445		576,871			618,316
Total investments including noncontrolling interests	$	747,215		$	5,588,266	$	576,871		$	6,912,352
Noncontrolling interest (a)	$	—		$	—	$	(489,402	)	$	(489,402	)
Redeemable noncontrolling interest (b)	$	(18,365	)	$	—	$	—		$	(18,365	)
Total investments excluding noncontrolling interests	$	728,850		$	5,588,266	$	87,469		$	6,404,585

(a) Included in the hedge funds balance are investments held by PaCRe in which the Company has an equity interest of 10%. The remaining 90% interest is held by third party investors and included in the Consolidated Balance Sheets as noncontrolling interest.

(b) Included in the total investments balance are investments held by two AlphaCat ILS funds which are consolidated by the Company but in which the Company has an equity interest of less than 100%. The remaining interests are held by third party investors and included in the Consolidated Balance Sheets as redeemable noncontrolling interest.

Reconciliation of beginning and ending balances for all Level 3 investments measured at fair value on recurring basis

The following table presents a reconciliation of the beginning and ending balances for all investments measured at fair value on a recurring basis using Level 3 inputs during the three months ended March 31, 2014 and 2013:

	Three Months Ended
	March 31, 2014			March 31, 2013
Level 3 investments - Beginning of period	$	576,871		$	556,234
Purchases	—			459
Sales	(3,589		)	(31,334		)
Net realized gains	10			40
Net unrealized gains (losses)	49,326			(1,706		)
Transfers into Level 3	6,703			—
Level 3 investments - End of period	$	629,321		$	523,693
Noncontrolling interest (a)	(531,403		)	(428,087		)
Level 3 investments excluding noncontrolling interest	$	97,918		$	95,606

(a) Includes Level 3 investments held by PaCRe in which the Company has an equity interest of 10%. The remaining 90% interest is held by third party investors and included in the Consolidated Balance Sheets as noncontrolling interest.