Related party transactions

The transactions listed below are classified as related party transactions as principals and/or directors of each counterparty are members of the Company’s board of directors.


(a)	Aquiline Capital Partners LLC (“Aquiline Capital”)

Group Ark Insurance

Pursuant to reinsurance agreements with a subsidiary of Group Ark Insurance Holdings Ltd. (“Group Ark”), the Company recognized gross premiums written during the year ended December 31, 2016 of $3,157 (2015: $2,718; 2014: $2,073) with $292 included in premiums receivable at December 31, 2016 (December 31, 2015: $82). The Company also recognized reinsurance premiums ceded during the year ended December 31, 2016 of $40 (2015: $24; 2014: $126) and had reinsurance balances payable of $nil at December 31, 2016 (December 31, 2015: $4). The Company recorded $798 of loss reserves recoverable at December 31, 2016 (December 31, 2015: $790) and earned premium adjustments of $3,115 were recorded during the year ended December 31, 2016 (2015: $2,833; 2014: $1,982).

Until July 2016, Aquiline Capital were shareholders of Group Ark. Christopher E. Watson, a director of the Company and senior principal of Aquiline Capital, serves as a director of Group Ark.

Wellington

Pursuant to reinsurance agreements with a subsidiary of Wellington Insurance Company (“Wellington”), the Company recognized gross premiums written during the year ended December 31, 2016 of $2,860 (2015 and 2014: $nil) with $666 included in premiums receivable at December 31, 2016 (December 31, 2015: $nil). The Company also recognized earned premium adjustments during the year ended December 31, 2016 of $2,603 (2015 and 2014: $nil). Aquiline Capital are shareholders of Wellington and Christopher E. Watson, a director of the Company and senior principal of Aquiline Capital, serves as a director of Wellington.

Conning

On November 24, 2009, the Company entered into an Investment Management Agreement with Conning, Inc. (“Conning”) to manage a portion of the Company’s investment portfolio. Aquiline Capital acquired Conning on June 16, 2009. Jeffrey W. Greenberg, a director of the Company, serves as a director of Conning Holdings Corp., the parent company of Conning. During the third quarter of 2015, Aquiline Capital disposed of its investment in Conning resulting in it no longer being a related party with effect from September 30, 2015. Investment management fees earned by Conning for the years ended December 31, 2015 and 2014 were $841 and $1,125, respectively.

Aquiline II

On December 20, 2011, the Company entered into an Agreement with Aquiline Capital and Aquiline II General Partner pursuant to which the Company has assumed 100% of Aquiline Capital’s interest in the Aquiline II Partnership representing a total capital commitment of $50,000 (the “Aquiline II Commitment”), as a limited partner in the Partnership (the “Transferred Interest”). On October 2, 2014, the Company assumed an additional investment in the Aquiline II Partnership as part of the Western World acquisition representing a total capital commitment of $10,000. Messrs. Greenberg and Watson, directors of the Company, serve as managing principal and senior principal, respectively, of Aquiline Capital.

For the year ended December 31, 2016, the Company incurred partnership fees of $843 (2015: $1,519; 2014: $410) and, for the years ended December 31, 2016, 2015 and 2014, had net capital (distributions) contributions of ($9,032), $6,093 and $12,468, respectively.

Aquiline III

On November 7, 2014, the Company entered into a Subscription Agreement with the Aquiline III General Partner pursuant to which the Company committed and agreed to purchase limited partnership or other comparable limited liability equity interests (the “Limited Partnership Interests”) in the “Aquiline III Partnership, and/or one or more Alternative Investment Vehicles and Intermediate Entities (together with the Aquiline III Partnership, the “Fund” or the “Entities”) with a capital commitment (the “Aquiline III Commitment”) in an amount equal to $100,000, as a limited partner in the Aquiline III Partnership.

For the year ended December 31, 2016, the Company incurred partnership fees of $2,031 (2015: $1,814; 2014: $nil) and, for the years ended December 31, 2016, 2015 and 2014, made net capital contributions of $23,873 and $13,793 and $nil, respectively.

(b) Other

Certain shareholders of the Company and their affiliates, as well as employees of entities associated with directors and officers may have purchased insurance and/or reinsurance from the Company in the ordinary course of business. The Company does not believe these transactions to be material.