Investments (Tables)

3 Months Ended

Mar. 31, 2014

Estimated Fair Values of Investments in Fixed Maturity Investments, Short-Term Investments and Equities, Trading Securities

The estimated fair values of the Company’s investments in fixed maturity investments, short-term investments and equities classified as trading securities were as follows:

	March 31,		December 31,
	2014		2013
U.S. government and agency	$	401,584	$	439,946
Non-U.S. government		444,279		476,224
Corporate		2,109,014		2,123,675
Municipal		34,545		41,034
Residential mortgage-backed		233,348		218,457
Commercial mortgage-backed		127,664		114,637
Asset-backed		268,740		248,748
Total fixed maturity and short-term investments		3,619,174		3,662,721
Equities - U.S.		107,341		115,285
Equities - International		51,333		66,748
	$	3,777,848	$	3,844,754

Credit Ratings of Fixed Maturity and Short-Term Investments, Trading

The following tables set forth certain information regarding the credit ratings (provided by major rating agencies) of the Company’s fixed maturity and short-term investments classified as trading:

As at March 31, 2014	Fair Value		% of Total Fair Value
AAA	$	517,665		14.3	%
AA		1,417,658		39.1	%
A		1,156,852		32.0	%
BBB or lower		505,664		14.0	%
Not Rated		21,335		0.6	%
	$	3,619,174		100.0	%

As at December 31, 2013	Fair Value		% of Total Fair Value
AAA	$	502,057		13.7	%
AA		1,430,107		39.1	%
A		1,191,142		32.5	%
BBB or lower		461,614		12.6	%
Not Rated		77,801		2.1	%
	$	3,662,721		100.0	%

Amortized Cost and Estimated Fair Values of Company's Fixed Maturity Securities Classified as Held to Maturity

The amortized cost and estimated fair values of the Company’s fixed maturity securities classified as held-to-maturity were as follows:

					Gross
			Gross		Unrealized
			Unrealized		Holding
	Amortized		Holding		Losses			Fair
	Cost		Gains		Non-OTTI			Value
As at March 31, 2014
U.S. government and agency	$	19,841	$	8	$	(1,227	)	$	18,622
Non-U.S. government		32,253		40		(1,074	)		31,219
Corporate		804,124		1,050		(27,624	)		777,550
	$	856,218	$	1,098	$	(29,925	)	$	827,391

					Gross
			Gross		Unrealized
			Unrealized		Holding
	Amortized		Holding		Losses			Fair
	Cost		Gains		Non-OTTI			Value
As at December 31, 2013
U.S. government and agency	$	19,992	$	6	$	(1,866	)	$	18,132
Non-U.S. government		23,592		19		(1,284	)		22,327
Corporate		815,803		105		(56,808	)		759,100
	$	859,387	$	130	$	(59,958	)	$	799,559

Summary of Amortized Cost and Estimated Fair Value of Fixed Maturities by Contractual Maturity

The contractual maturities of the Company’s fixed maturity securities classified as held-to-maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

As at March 31, 2014	Amortized Cost		Fair Value		% of Total Fair Value
Due in one year or less	$	22,554	$	22,591		2.7	%
Due after one year through five years		82,988		82,574		10.0	%
Due after five years through ten years		131,317		127,759		15.4	%
Due after ten years		619,359		594,467		71.9	%
	$	856,218	$	827,391		100.0	%

As at December 31, 2013	Amortized Cost		Fair Value		% of Total Fair Value
Due in one year or less	$	17,541	$	17,579		2.2	%
Due after one year through five years		87,698		86,611		10.8	%
Due after five years through ten years		133,102		126,541		15.8	%
Due after ten years		621,046		568,828		71.2	%
	$	859,387	$	799,559		100.0	%

Credit Ratings Company's Fixed Maturity Investments Held to Maturity

The following tables set forth certain information regarding the credit ratings (provided by major rating agencies) of the Company’s fixed maturity investments classified as held-to-maturity:

As at March 31, 2014	Amortized Cost		Fair Value		% of Total Fair Value
AAA	$	66,044	$	63,038		7.6	%
AA		191,778		183,635		22.2	%
A		502,994		486,935		58.8	%
BBB or lower		94,975		93,355		11.3	%
Not Rated		427		428		0.1	%
	$	856,218	$	827,391		100.0	%

As at December 31, 2013	Amortized Cost		Fair Value		% of Total Fair Value
AAA	$	47,949	$	44,552		5.6	%
AA		259,163		239,188		29.9	%
A		496,986		463,001		57.9	%
BBB or lower		54,759		52,282		6.5	%
Not Rated		530		536		0.1	%
	$	859,387	$	799,559		100.0	%

Amortized Cost and Estimated Fair Values of Company's Fixed Maturity And Short-term Investments Classified as Available-for-Sale

The amortized cost and estimated fair values of the Company’s fixed maturity and short-term investments classified as available-for-sale were as follows:

					Gross
			Gross		Unrealized
			Unrealized		Holding
	Amortized		Holding		Losses			Fair
As at March 31, 2014	Cost		Gains		Non-OTTI			Value
U.S. government and agency	$	13,993	$	266	$	(32	)	$	14,227
Non-U.S. government		81,906		1,608		(616	)		82,898
Corporate		86,697		1,490		(115	)		88,072
Residential mortgage-backed		4,454		97		(3	)		4,548
Asset-backed		51,567		27		(30	)		51,564
	$	238,617	$	3,488	$	(796	)	$	241,309

					Gross
			Gross		Unrealized
			Unrealized		Holding
	Amortized		Holding		Losses			Fair
As at December 31, 2013	Cost		Gains		Non-OTTI			Value
U.S. government and agency	$	28,050	$	303	$	(10	)	$	28,343
Non-U.S. government		84,443		1,871		(22	)		86,292
Corporate		76,942		1,221		(259	)		77,904
Residential mortgage-backed		17,523		102		(118	)		17,507
Asset-backed		36,344		4		(30	)		36,318
	$	243,302	$	3,501	$	(439	)	$	246,364

Summary of Investments Classified as Available-for-Sale in Unrealized Loss Position as Well as Aggregate Fair Value and Gross Unrealized Loss by Length of Time

The following tables summarize the Company’s fixed maturity and short-term investments classified as available-for-sale in an unrealized loss position as well as the aggregate fair value and gross unrealized loss by length of time the securities have continuously been in an unrealized loss position:

	12 Months or Greater				Less Than 12 Months					Total
	Fair		Unrealized		Fair		Unrealized			Fair		Unrealized
As at March 31, 2014	Value		Losses		Value		Losses			Value		Losses
U.S. government and agency	$	—	$	—	$	7,234	$	(32	)	$	7,234	$	(32	)
Non-U.S. government		—		—		21,758		(616	)		21,758		(616	)
Corporate		—		—		35,416		(115	)		35,416		(115	)
Residential mortgage-backed		—		—		1,516		(3	)		1,516		(3	)
Asset-backed		—		—		23,609		(30	)		23,609		(30	)
	$	—	$	—	$	89,533	$	(796	)	$	89,533	$	(796	)

	12 Months or Greater				Less Than 12 Months					Total
	Fair		Unrealized		Fair		Unrealized			Fair		Unrealized
As at December 31, 2013	Value		Losses		Value		Losses			Value		Losses
U.S. government and agency	$	—	$	—	$	11,416	$	(10	)	$	11,416	$	(10	)
Non-U.S. government		—		—		20,406		(22	)		20,406		(22	)
Corporate		—		—		51,478		(259	)		51,478		(259	)
Residential mortgage-backed		—		—		13,632		(118	)		13,632		(118	)
Asset-backed		—		—		24,898		(30	)		24,898		(30	)
	$	—	$	—	$	121,830	$	(439	)	$	121,830	$	(439	)

Summary of Contractual Maturities of Company's Fixed Maturity and Short-Term Investments Classified as Available-for-Sale

The contractual maturities of the Company’s fixed maturity and short-term investments classified as available-for-sale are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

As at March 31, 2014	Amortized Cost		Fair Value		% of Total Fair Value
Due in one year or less	$	29,022	$	29,325		12.1	%
Due after one year through five years		147,873		149,441		61.9	%
Due after five years through ten years		2,935		2,912		1.2	%
Due after ten years		2,766		3,519		1.5	%
		182,596		185,197		76.7	%
Residential mortgage-backed		4,454		4,548		1.9	%
Asset-backed		51,567		51,564		21.4	%
	$	238,617	$	241,309		100.0	%

As at December 31, 2013	Amortized Cost		Fair Value		% of Total Fair Value
Due in one year or less	$	45,295	$	45,596		18.5	%
Due after one year through five years		141,400		143,445		58.2	%
Due after five years through ten years		69		70		0.1	%
Due after ten years		2,671		3,428		1.4	%
		189,435		192,539		78.2	%
Residential mortgage-backed		17,523		17,507		7.1	%
Asset-backed		36,344		36,318		14.7	%
	$	243,302	$	246,364		100.0	%

Credit Ratings Company's Fixed Maturity and Short-term Investments Available-for-Sale

The following tables set forth certain information regarding the credit ratings (provided by major rating agencies) of the Company’s fixed maturity and short-term investments classified as available-for-sale:

As at March 31, 2014	Amortized Cost		Fair Value		% of Total Fair Value
AAA	$	138,462	$	139,369		57.8	%
AA		53,404		53,980		22.4	%
A		36,834		37,683		15.6	%
BBB or lower		9,917		10,277		4.2	%
	$	238,617	$	241,309		100.0	%

As at December 31, 2013	Amortized Cost		Fair Value		% of Total Fair Value
AAA	$	125,729	$	127,433		51.7	%
AA		74,692		75,181		30.5	%
A		33,834		34,607		14.1	%
BBB or lower		8,957		8,963		3.6	%
Not Rated		90		180		0.1	%
	$	243,302	$	246,364		100.0	%

Other Investments

The estimated fair values of the Company’s other investments were as follows:

	March 31,		December 31,
	2014		2013
Private equity funds	$	191,452	$	161,229
Fixed income funds		222,004		194,375
Fixed income hedge funds		69,547		68,157
Equity funds		128,110		109,355
Real estate debt fund		32,469		32,113
Other		3,183		4,064
	$	646,765	$	569,293

Summary of Fair Value, Unfunded Commitments and Redemption Frequency

The following tables present the fair value, unfunded commitments and redemption frequency for all other investments. These investments are all valued at net asset value as at March 31, 2014 and December 31, 2013:

March 31, 2014	Total Fair Value		Gated/Side Pocket Investments		Investments without Gates or Side Pockets		Unfunded Commitments		Redemption Frequency
Private equity funds	$	191,452	$	—	$	191,452	$	131,295	Not eligible
Fixed income funds		222,004		—		222,004		—	Daily to monthly
Fixed income hedge funds		69,547		2,649		66,898		—	Quarterly after lock-up periods expire
Equity funds		128,110		—		128,110		—	Bi-monthly
Real estate debt fund		32,469		—		32,469		—	Monthly
Other		3,183		—		3,183		655	Not eligible
	$	646,765	$	2,649	$	644,116	$	131,950
December 31, 2013	Total Fair Value		Gated/Side Pocket Investments		Investments without Gates or Side Pockets		Unfunded Commitments		Redemption Frequency
Private equity funds	$	161,229	$	—	$	161,229	$	113,585	Not eligible
Fixed income funds		194,375		—		194,375		—	Daily to monthly
Fixed income hedge funds		68,157		3,150		65,007		—	Quarterly after lock-up periods expire
Equity funds		109,355		—		109,355		—	Bi-monthly
Real estate debt fund		32,113		—		32,113		—	Monthly
Other		4,064		—		4,064		655	Not eligible
	$	569,293	$	3,150	$	566,143	$	114,240

Categorized Investments Recorded at Fair Value Among Levels

In accordance with the provisions of the Fair Value Measurement and Disclosure topic of the FASB Accounting Standards Codification (“ASC”) 820, the Company has categorized its investments that are recorded at fair value among levels as follows:

	March 31, 2014
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
U.S. government and agency	$	—	$	415,811	$	—	$	415,811
Non-U.S. government		—		527,177		—		527,177
Corporate		—		2,196,479		607		2,197,086
Municipal		—		34,545		—		34,545
Residential mortgage-backed		—		237,896		—		237,896
Commercial mortgage-backed		—		127,664		—		127,664
Asset-backed		—		320,304		—		320,304
Equities—U.S.		97,335		5,256		4,750		107,341
Equities—International		24,851		26,482		—		51,333
Other investments		—		350,114		296,651		646,765
Total investments	$	122,186	$	4,241,728	$	302,008	$	4,665,922

	December 31, 2013
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
U.S. government and agency	$	—	$	468,289	$	—	$	468,289
Non-U.S. government		—		562,516		—		562,516
Corporate		—		2,200,970		609		2,201,579
Municipal		—		41,034		—		41,034
Residential mortgage-backed		—		235,964		—		235,964
Commercial mortgage-backed		—		114,637		—		114,637
Asset-backed		—		285,066		—		285,066
Equities—U.S.		97,470		13,090		4,725		115,285
Equities—International		35,677		31,071		—		66,748
Other investments		—		303,724		265,569		569,293
Total investments	$	133,147	$	4,256,361	$	270,903	$	4,660,411

Reconciliation of Beginning and Ending Balances for All 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:

	Fixed Maturity Investments			Other Investments			Equity Securities		Total
Level 3 investments as of January 1, 2014	$	609		$	265,569		$	4,725	$	270,903
Purchases		—			23,292			—		23,292
Sales		—			(2,983	)		—		(2,983	)
Total realized and unrealized (losses) gains through earnings		(2	)		10,773			25		10,796
Net transfers into and/or (out of) Level 3		—			—			—		—
Level 3 investments as of March 31, 2014	$	607		$	296,651		$	4,750	$	302,008

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, 2013.

	Fixed Maturity Investments		Other Investments			Equity Securities		Total
Level 3 investments as of January 1, 2013	$	540	$	202,730		$	3,401	$	206,671
Purchases		—		8,991			—		8,991
Sales		—		(9,284	)		—		(9,284	)
Total realized and unrealized gains through earnings		15		12,250			599		12,864
Net transfers into and/or (out of) Level 3		—		—			—		—
Level 3 investments as of March 31, 2013	$	555	$	214,687		$	4,000	$	219,242

Components of Net Realized and Unrealized Gains (Losses)

Components of net realized and unrealized gains (losses) for the three months ended March 31, 2014 and 2013 are as follows:

	Three Months Ended March 31,
	2014			2013
Gross realized gains on available-for-sale securities	$	26		$	65
Gross realized losses on available-for-sale securities		(145	)		(17	)
Net realized gains on trading securities		5,917			6,009
Net unrealized gains on trading securities		11,778			5,132
Net realized and unrealized gains on other investments		16,997			18,931
Net realized and unrealized gains	$	34,573		$	30,120
Proceeds from sales and maturities of available-for-sale securities	$	59,238		$	59,631

Major Categories of Net Investment Income

Major categories of net investment income for the three months ended March 31, 2014 and 2013 are summarized as follows:

	Three Months Ended March 31,
	2014			2013
Interest from fixed maturity investments	$	34,206		$	20,625
Interest from cash and cash equivalents and short-term investments		1,625			3,081
Net amortization of bond premiums and discounts		(12,462	)		(8,513	)
Dividends from equities		1,404			1,091
Other investments		92			61
Interest on other receivables		226			618
Other income		22			1,397
Interest on deposits held with clients		730			1,194
Policy loan interest		311			0
Investment expenses		(1,806	)		(1,591	)
	$	24,348		$	17,963

Schedule of Carrying Value of Restricted Investments

The carrying value of the Company’s restricted assets, including restricted cash of $607.2 and $397.7 million, as of March 31, 2014 and December 31, 2013 was as follows:

	March 31,		December 31,
	2014		2013
Collateral in trust for third party agreements	$	2,230,318	$	2,002,374
Assets on deposit with regulatory authorities		598,698		608,940
Collateral for secured letter of credit facility		302,622		310,938
	$	3,131,638	$	2,922,252

Held-to-maturity Securities [Member]

Categorized Investments Recorded at Fair Value Among Levels

The following tables present the Company’s fair value hierarchy for those assets classified as held-to-maturity in the consolidated balance sheet but for which disclosure of the fair value is required as of March 31, 2014 and December 31, 2013:

	March 31, 2014
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
U.S. government and agency	$	—	$	18,622	$	—	$	18,622
Non-U.S. government		—		31,219		—		31,219
Corporate		—		777,550		—		777,550
Total investments	$	—	$	827,391	$	—	$	827,391

	December 31, 2013
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
U.S. government and agency	$	—	$	18,132	$	—	$	18,132
Non-U.S. government		—		22,327		—		22,327
Corporate		—		759,100		—		759,100
Total investments	$	—	$	799,559	$	—	$	799,559