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Premiums Written and Earned
 6 Months Ended
Jun. 30, 2016
Insurance [Abstract]  
PREMIUMS WRITTEN AND EARNED
REINSURANCE BALANCES RECOVERABLE
The following tables provide the total reinsurance balances recoverable as at June 30, 2016 and December 31, 2015:
 
 
June 30, 2016
 
 
Non-life
Run-off
 
Atrium
 
StarStone
 
Life and
Annuities
 
Total
Recoverable from reinsurers on unpaid:
 
 
 
 
 
 
 
 
 
 
Outstanding losses
 
$
502,667

 
$
7,142

 
$
171,289

 
$
20,940

 
$
702,038

IBNR
 
441,240

 
17,798

 
121,997

 
298

 
581,333

Fair value adjustments
 
(16,182
)
 
1,916

 
(4,085
)
 
—

 
(18,351
)
Total reinsurance reserves recoverable
 
927,725

 
26,856

 
289,201

 
21,238

 
1,265,020

Paid losses recoverable
 
62,454

 
762

 
15,885

 
994

 
80,095

 
 
$
990,179

 
$
27,618

 
$
305,086

 
$
22,232

 
$
1,345,115

 
 
December 31, 2015
 
 
Non-life
Run-off
 
Atrium
 
StarStone
 
Life and
Annuities
 
Total
Recoverable from reinsurers on unpaid:
 
 
 
 
 
 
 
 
 
 
Outstanding losses
 
$
587,164

 
$
6,772

 
$
182,076

 
$
22,786

 
$
798,798

IBNR
 
465,211

 
16,581

 
123,732

 
306

 
605,830

Fair value adjustments
 
(17,628
)
 
2,499

 
(6,025
)
 
—

 
(21,154
)
Total reinsurance reserves recoverable
 
1,034,747

 
25,852

 
299,783

 
23,092

 
1,383,474

Paid losses recoverable
 
72,213

 
430

 
16,568

 
1,319

 
90,530

 
 
$
1,106,960

 
$
26,282

 
$
316,351

 
$
24,411

 
$
1,474,004


Our insurance and reinsurance run-off subsidiaries, prior to acquisition, used retrocessional agreements to reduce their exposure to the risk of insurance and reinsurance assumed. On an annual basis, both Atrium and StarStone purchase a tailored outwards reinsurance program designed to manage their risk profiles. The majority of Atrium’s and StarStone's third-party reinsurance cover is with highly rated reinsurers or is collateralized by letters of credit.
The fair value adjustments, determined on acquisition of insurance and reinsurance subsidiaries, are based on the estimated timing of loss and LAE recoveries and an assumed interest rate equivalent to a risk free rate for securities with similar duration to the acquired reinsurance recoverables plus a spread for credit risk, and are amortized over the estimated recovery period, as adjusted for accelerations in timing of payments as a result of commutation settlements.
As of June 30, 2016 and December 31, 2015, we had reinsurance balances recoverable of approximately $1.35 billion and $1.47 billion, respectively. The decrease of $128.9 million in reinsurance balances recoverable was primarily a result of commutations in our Non-life Run-off segment and cash collections made during the six months ended June 30, 2016 in our Non-life Run-off and StarStone segments.
Top Ten Reinsurers
 
June 30, 2016
 
December 31, 2015
 
Non-life
Run-off
 
Atrium
 
StarStone
 
Life and
Annuities
 
Total
 
% of
Total
 
Non-life
Run-off
 
Atrium
 
StarStone
 
Life and
Annuities
 
Total
 
% of
Total
Top ten reinsurers
$
661,380

 
$
22,369

 
$
146,115

 
$
12,211

 
$
842,075

 
62.6
%
 
$
713,743

 
$
21,394

 
$
155,171

 
$
13,254

 
$
903,562

 
61.3
%
Other reinsurers > $1 million
317,169

 
4,508

 
156,576

 
8,298

 
486,551

 
36.2
%
 
383,898

 
4,253

 
158,417

 
8,363

 
554,931

 
37.6
%
Other reinsurers < $1 million
11,630

 
741

 
2,395

 
1,723

 
16,489

 
1.2
%
 
9,319

 
635

 
2,763

 
2,794

 
15,511

 
1.1
%
Total
$
990,179

 
$
27,618

 
$
305,086

 
$
22,232

 
$
1,345,115

 
100.0
%
 
$
1,106,960

 
$
26,282

 
$
316,351

 
$
24,411

 
$
1,474,004

 
100.0
%

Seven of the top ten external reinsurers, as at June 30, 2016 and December 31, 2015, were rated A- or better, with the remaining three being non-rated reinsurers from which $297.0 million was recoverable (December 31, 2015: $337.6 million recoverable from three reinsurers). For the three non-rated reinsurers, we hold security in the form of pledged assets in trust or letters of credit issued to us in the full amount of the recoverable. As at June 30, 2016, reinsurance balances recoverable of $158.4 million (December 31, 2015: $165.6 million) related to Lloyd’s syndicates and represented 10% or more of total reinsurance balances recoverable. Lloyd’s is rated A+ by Standard & Poor’s and A by A.M. Best.
 Provisions for Uncollectible Reinsurance Recoverables
We remain liable to the extent that retrocessionaires do not meet their obligations under these agreements, and therefore, we evaluate and monitor concentration of credit risk among our reinsurers. Provisions are made for amounts considered potentially uncollectible.
The following table shows our reinsurance balances recoverable by rating of reinsurer and our provisions for uncollectible reinsurance balances recoverable ("provisions for bad debt") as at June 30, 2016 and December 31, 2015. The provisions for bad debt all relate to the Non-life Run-off segment.
 
June 30, 2016
 
December 31, 2015
 
Gross
 
Provisions for Bad Debt
 
Net
 
Provisions as a
% of Gross
 
Gross
 
Provisions for Bad Debt
 
Net
 
Provisions as a
% of Gross
Reinsurers rated A- or above
$
983,600

 
$
39,264

 
$
944,336

 
4.0
%
 
$
1,051,927

 
$
46,969

 
$
1,004,958

 
4.5
%
Reinsurers rated below A-, secured
338,795

 
—

 
338,795

 
—
%
 
388,399

 
—

 
388,399

 
—
%
Reinsurers rated below A-, unsecured
219,445

 
157,461

 
61,984

 
71.8
%
 
244,005

 
163,358

 
80,647

 
66.9
%
Total
$
1,541,840

 
$
196,725

 
$
1,345,115

 
12.8
%
 
$
1,684,331

 
$
210,327

 
$
1,474,004

 
12.5
%
PREMIUMS WRITTEN AND EARNED
The following table provides a summary of net premiums written and earned in our Non-life Run-off, Atrium, StarStone and Life and Annuities segments for the three and six months ended June 30, 2016 and 2015:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
 
Premiums
Written
 
Premiums
Earned
 
Premiums
Written
 
Premiums
Earned
 
Premiums
Written
 
Premiums
Earned
 
Premiums
Written
 
Premiums
Earned
Non-life Run-off
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross
$
7,066

 
$
9,216

 
$
14,797

 
$
53,184

 
$
13,763

 
$
17,163

 
$
24,914

 
$
78,157

Ceded
(4,290
)
 
(4,740
)
 
(39,590
)
 
(35,886
)
 
(5,716
)
 
(7,252
)
 
(39,867
)
 
(42,367
)
Net
$
2,776

 
$
4,476

 
$
(24,793
)
 
$
17,298

 
$
8,047

 
$
9,911

 
$
(14,953
)
 
$
35,790

Atrium
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross
$
37,781

 
$
35,908

 
$
35,786

 
$
37,913

 
$
79,299

 
$
71,342

 
$
84,699

 
$
76,067

Ceded
(4,619
)
 
(4,150
)
 
(3,966
)
 
(3,956
)
 
(7,957
)
 
(7,673
)
 
(8,521
)
 
(8,238
)
Net
$
33,162

 
$
31,758

 
$
31,820

 
$
33,957

 
$
71,342

 
$
63,669

 
$
76,178

 
$
67,829

StarStone
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross
$
223,368

 
$
208,548

 
$
241,057

 
$
195,963

 
$
440,412

 
$
402,664

 
$
431,754

 
$
364,495

Ceded
(41,023
)
 
(37,513
)
 
(59,692
)
 
(58,267
)
 
(107,930
)
 
(77,547
)
 
(125,566
)
 
(103,177
)
Net
$
182,345

 
$
171,035

 
$
181,365

 
$
137,696

 
$
332,482

 
$
325,117

 
$
306,188

 
$
261,318

Life and Annuities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Life
$
20,533

 
$
19,659

 
$
22,922

 
$
23,072

 
$
38,459

 
$
37,640

 
$
45,655

 
$
45,992

Total
$
238,816

 
$
226,928

 
$
211,314

 
$
212,023

 
$
450,330

 
$
436,337

 
$
413,068

 
$
410,929