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

Christopher E. Watson, a director of the Company and senior principal of Aquiline Capital, serves as a director of Group Ark Insurance Holdings Ltd. (“Group Ark”). Prior to August, 2016, Aquiline Capital was also a shareholder of Group Ark.

Pursuant to reinsurance agreements with a subsidiary of Group Ark, the Company recognized gross premiums written during the year ended December 31, 2016 of $3,157 (2015: $2,718) with $292 included in premiums receivable at December 31, 2016. The Company also recognized reinsurance premiums ceded during the year ended December 31, 2016 of $40 (2015: $24). The Company recorded $798 of loss reserves recoverable at December 31, 2016 and earned premium adjustments of $3,115 during the year ended December 31, 2016 (2015: $2,833).

Wellington

Aquiline Capital are shareholders of Wellington Insurance Company (“Wellington”) and Christopher E. Watson serves as a director of Wellington.

Pursuant to reinsurance agreements with a subsidiary of Wellington, the Company recognized gross premiums written during the year ended December 31, 2017 of $4,196 (2016: $2,860 and 2015: $nil) with $211 included in premiums receivable at December 31, 2017 (December 31, 2016: $666). The Company also recognized earned premium adjustments during the year ended December 31, 2017 of $4,377 (2016: $2,603 and 2015: $nil).

Aquiline II, Aquiline III, Aquiline Tech and Aquiline Armour

Jeffrey W. Greenberg and Christopher E. Watson, directors of the Company, serve as managing principal and senior principal, respectively, of Aquiline Capital. Additional information related to the Company’s investments in Aquiline II, III, Tech and Armour is disclosed in Note 7(c), “Investments in Investment Affiliates.”

The Company had, as of December 31, 2017 and December 31, 2016, investments in Aquiline II, III, Tech and Armour with a total value of $100,137 and $100,431 and outstanding unfunded commitments of $125,996 and $64,071, respectively. For the year ended December 31, 2017, the Company incurred $2,863 (2016: $2,874 and 2015: $3,333) in partnership fees associated with these investments.

(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.