Debt and financing arrangements (Tables)

12 Months Ended

Dec. 31, 2016

Debt Disclosure [Abstract]

Schedule outstanding debentures and senior notes payable

The Company’s outstanding debentures and senior notes payable as at December 31, 2016 and 2015 were as follows:

	December 31, 2016			December 31, 2015
Deferrable debentures
2006 Junior Subordinated	$	150,000		$	150,000
2007 Junior Subordinated	139,800			139,800
Flagstone 2006 Junior Subordinated	133,676			134,118
Flagstone 2007 Junior Subordinated	113,750			113,750
Total debentures payable	537,226			537,668
2010 Senior notes payable	250,000			250,000
Less: Unamortized debt issuance costs	(4,638		)	(4,839		)
Total senior notes payable	245,362			245,161
Total debentures and senior notes payable	$	782,588		$	782,829

Summary of outstanding credit and other facilities

The Company’s outstanding credit and other facilities as at December 31, 2016 and 2015 were as follows:

	December 31, 2016				December 31, 2015
	Commitment		Drawn and outstanding		Commitment		Drawn and outstanding
Credit and other facilities
$85,000 syndicated unsecured letter of credit facility	$	85,000	$	—	$	85,000	$	—
$300,000 syndicated secured letter of credit facility	300,000		90,252		300,000		235,540
$24,000 secured bi-lateral letter of credit facility	24,000		4,553		24,000		10,543
$20,000 AlphaCat Re secured letter of credit facility	20,000		20,000		30,000		30,000
$25,000 IPC bi-lateral facility	25,000		5,842		25,000		9,241
$236,000 Flagstone bi-lateral facility	236,000		144,392		236,000		193,764
Total credit and other facilities	$	690,000	$	265,039	$	700,000	$	479,088

Summary of key terms of debt instruments

The following table summarizes the key terms of the Company’s senior notes and junior subordinated deferrable debentures:

Description	Issuance date	Amount		Maturity date	Interest Rate as at						Interest payments due
					Issuance Date			December 31, 2016
2006 Junior Subordinated Deferrable Debentures	June 15, 2006	$	150,000	June 15, 2036	9.069	%	(a)	5.831	%	(e)	Quarterly
Flagstone 2006 Junior Subordinated Deferrable Debentures	August 23, 2006	$	133,676	September 15, 2036	3.540	%	(b)	6.463	%	(e)	Quarterly
2007 Junior Subordinated Deferrable Debentures	June 21, 2007	$	200,000	June 15, 2037	8.480	%	(c)	5.180	%	(e)	Quarterly
Flagstone 2007 Junior Subordinated Deferrable Debentures	June 8, 2007	$	88,750	July 30, 2037	3.000	%	(b)	5.900	%	(e)	Quarterly
Flagstone 2007 Junior Subordinated Deferrable Debentures	September 20, 2007	$	25,000	September 15, 2037	3.100	%	(b)	5.983	%	(e)	Quarterly
2010 Senior Notes due 2040	January 26, 2010	$	250,000	January 26, 2040	8.875	%	(d)	8.875	%	(d)	Semi-annually in arrears

(a) Fixed interest rate for 5 years, floating interest rate of three-month LIBOR plus 3.550% thereafter, reset quarterly.

(b) Floating interest rate of three-month LIBOR plus amount stated, reset quarterly.

(c) Fixed interest rate for 5 years, floating interest rate of three-month LIBOR plus 2.950% thereafter, reset quarterly.

(d) Fixed interest rate.

(e) Fixed interest rate as a result of interest rate swap contracts entered into by the Company.

Investments pledged as collateral under credit facilities

The Company has pledged investments and cash as collateral under the Company’s credit facilities in the total amount of $442,184 (December 31, 2015: $826,535) as detailed in the table below:

	December 31, 2016		December 31, 2015
$300,000 syndicated secured letter of credit facility	$	157,597	$	370,909
$24,000 secured bi-lateral letter of credit facility	48,097		47,607
$20,000 AlphaCat Re secured letter of credit facility	20,032		30,153
$236,000 Flagstone bi-lateral facility	216,458		377,866
Total	$	442,184	$	826,535

Components of finance expenses

Finance expenses consist of interest on the junior subordinated deferrable debentures and senior notes, the amortization of debt offering costs, credit facility fees, bank charges, Talbot Funds at Lloyds (“FAL”) facility costs, AlphaCat financing fees and other charges as follows:

	Years Ended December 31,
	2016		2015		2014
2006 Junior Subordinated Deferrable Debentures	$	8,893	$	8,868	$	8,868
2007 Junior Subordinated Deferrable Debentures	7,362		7,341		7,341
Flagstone 2006 Junior Subordinated Deferrable Debentures	9,028		8,989		9,001
Flagstone 2007 Junior Subordinated Deferrable Debentures	7,100		7,123		7,129
2010 Senior Notes due 2040	22,388		22,388		22,388
Credit facilities	2,060		6,006		5,516
Bank charges, Talbot FAL facility and other charges (a)	504		4,592		4,536
AlphaCat fees (b)	1,185		9,435		3,545
Total finance expenses	$	58,520	$	74,742	$	68,324

(a) On November 30, 2015, the Company terminated its Talbot FAL Facility provided and arranged by Lloyds Bank plc and ING Bank N.V., London Branch.

(b) Includes finance expenses incurred by AlphaCat Managers in relation to fund raising for the AlphaCat sidecars, the AlphaCat ILS funds and AlphaCat direct.