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Losses and Loss Adjustment Expenses (Tables)
 6 Months Ended
Jun. 30, 2016
Insurance [Abstract]  
Total Losses and Loss Adjustment Expense Liabilities, and Reconciliation of Beginning and Ending Balances
The table below provides a reconciliation of the beginning and ending liability for losses and LAE 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
Balance as at beginning of period
$
209,919

 
$
202,873

 
$
201,017

 
$
212,611

Less: reinsurance reserves recoverable
26,249

 
26,629

 
25,852

 
28,278

Net balance as at beginning of period
183,670

 
176,244

 
175,165

 
184,333

Net incurred losses and LAE:

 
 
 
 
 
 
  Current period
20,568

 
17,495

 
36,631

 
32,373

  Prior periods
(3,435)

 
(3,738)

 
(3,909)

 
(11,596)

  Total net incurred losses and LAE
17,133

 
13,757

 
32,722

 
20,777

Net paid losses:

 

 
 
 
 
  Current period
(5,255)

 
(4,538)

 
(7,493)

 
(7,408)

  Prior periods
(7,268)

 
(7,583)

 
(12,778)

 
(16,624)

  Total net paid losses
(12,523)

 
(12,121)

 
(20,271)

 
(24,032)

Effect of exchange rate movement
(1,912)

 
1,608

 
(1,248)

 
(1,590)

Net balance as at June 30
186,368

 
179,488

 
186,368

 
179,488

Plus: reinsurance reserves recoverable
26,856

 
26,011

 
26,856

 
26,011

Balance as at June 30
$
213,224

 
$
205,499

 
$
213,224

 
$
205,499

The table below provides a reconciliation of the beginning and ending liability for losses and LAE 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
Balance as at beginning of period
$
972,372

 
$
828,488

 
$
933,678

 
$
861,800

Less: reinsurance reserves recoverable
299,393

 
280,540

 
299,783

 
325,209

Net balance as at beginning of period
672,979

 
547,948

 
633,895

 
536,591

Net incurred losses and LAE:
 
 
 
 
 
 
 
  Current period
105,548

 
81,293

 
198,718

 
158,703

  Prior periods
(1,529)

 
(280
)
 
(3,516
)
 
(1,474
)
  Total net incurred losses and LAE
104,019

 
81,013

 
195,202

 
157,229

Net paid losses:
 
 
 
 
 
 
 
  Current period
(9,709)

 
(7,518
)
 
(10,815
)
 
(11,241
)
  Prior periods
(54,744)

 
(31,896
)
 
(105,314
)
 
(80,322
)
  Total net paid losses
(64,453)

 
(39,414
)
 
(116,129
)
 
(91,563
)
Effect of exchange rate movement
(7,252)

 
(2,761
)
 
(7,675
)
 
(15,471
)
Net balance as at June 30
705,293

 
586,786

 
705,293

 
586,786

Plus: reinsurance reserves recoverable
289,201

 
287,049

 
289,201

 
287,049

Balance as at June 30
$
994,494

 
$
873,835

 
$
994,494

 
$
873,835

The table below provides a reconciliation of the beginning and ending reserves for losses and LAE for the three and six months ended June 30, 2016 and 2015 for the Non-life Run-off segment:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
Balance as at beginning of period
$
5,459,216

 
$
4,693,262

 
$
4,585,454

 
$
3,435,010

Less: reinsurance reserves recoverable
977,096

 
1,210,933

 
1,034,747

 
800,709

Less: deferred charges on retroactive insurance
254,300

 
—

 
255,911

 
—

Net balance as at beginning of period
4,227,820

 
3,482,329

 
3,294,796

 
2,634,301

Net incurred losses and LAE:
 
 
 
 
 
 
 
  Current period
518

 
22,547

 
6,587

 
43,273

  Prior periods
(25,208)

 
(51,417
)
 
(54,831)

 
(85,243
)
  Total net incurred losses and LAE
(24,690)

 
(28,870
)
 
(48,244)

 
(41,970
)
Net paid losses:
 
 
 
 
 
 
 
  Current period
(2,058)

 
(9,434
)
 
(4,048)

 
(14,005
)
  Prior periods
(140,998)

 
(155,006
)
 
(271,321)

 
(215,695
)
  Total net paid losses
(143,056)

 
(164,440
)
 
(275,369)

 
(229,700
)
Effect of exchange rate movement
(18,963)

 
25,876

 
(14,323)

 
(12,362
)
Acquired on purchase of subsidiaries
10,019

 
—

 
10,019

 
774,758

Assumed business
0

 
305,763

 
1,084,251

 
495,631

Net balance as at June 30
4,051,130

 
3,620,658

 
4,051,130

 
3,620,658

Plus: reinsurance reserves recoverable
927,725

 
1,178,053

 
927,725

 
1,178,053

Plus: deferred charge on retroactive reinsurance
247,272

 
265,426

 
247,272

 
265,426

Balance as at June 30
$
5,226,127

 
$
5,064,137

 
$
5,226,127

 
$
5,064,137

The following table summarizes the liability for losses and LAE by segment as at June 30, 2016 and December 31, 2015:
 
June 30, 2016
 
December 31, 2015
 
Non-life
Run-off
 
Atrium
 
StarStone
 
Total
 
Non-life
Run-off
 
Atrium
 
StarStone
 
Total
Outstanding losses
$
2,991,786

 
$
69,268

 
$
476,941

 
$
3,537,995

 
$
2,757,774

 
$
68,913

 
$
457,175

 
$
3,283,862

IBNR
2,385,358

 
129,422

 
518,558

 
3,033,338

 
1,991,009

 
115,613

 
477,990

 
2,584,612

Fair value adjustments
(151,017
)
 
14,534

 
(1,005
)
 
(137,488
)
 
(163,329
)
 
16,491

 
(1,487
)
 
(148,325
)
Total
$
5,226,127

 
$
213,224

 
$
994,494

 
$
6,433,845

 
$
4,585,454

 
$
201,017

 
$
933,678

 
$
5,720,149

The table below provides a reconciliation of the beginning and ending liability for losses and LAE 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
Balance as at beginning of period
$
6,641,507

 
$
5,724,623

 
$
5,720,149

 
$
4,509,421

Less: reinsurance reserves recoverable
1,302,738

 
1,518,102

 
1,360,382

 
1,154,196

Less: deferred charges on retroactive reinsurance
254,300

 
—

 
255,911

 
—

Net balance as at beginning of period
5,084,469

 
4,206,521

 
4,103,856

 
3,355,225

Net incurred losses and LAE:
 
 
 
 
 
 


  Current period
126,634

 
121,335

 
241,936

 
234,349

  Prior periods
(30,172
)
 
(55,435)

 
(62,256
)
 
(98,313
)
  Total net incurred losses and LAE
96,462

 
65,900

 
179,680

 
136,036

Net paid losses:
 
 
 
 
 
 


  Current period
(17,022
)
 
(21,490)

 
(22,356
)
 
(32,654
)
  Prior periods
(203,010
)
 
(194,485)

 
(389,413
)
 
(312,641
)
  Total net paid losses
(220,032
)
 
(215,975)

 
(411,769
)
 
(345,295
)
Effect of exchange rate movement
(28,127
)
 
24,723

 
(23,246
)
 
(29,423
)
Acquired on purchase of subsidiaries
10,019

 
—

 
10,019

 
774,758

Assumed business
—

 
305,763

 
1,084,251

 
495,631

Net balance as at June 30
4,942,791

 
4,386,932

 
4,942,791

 
4,386,932

Plus: reinsurance reserves recoverable
1,243,782

 
1,491,113

 
1,243,782

 
1,491,113

Plus: deferred charge on retroactive reinsurance
247,272

 
265,426

 
247,272

 
265,426

Balance as at June 30
$
6,433,845

 
$
6,143,471

 
$
6,433,845

 
$
6,143,471
Schedule of Incurred Losses
The tables below provide the net incurred losses and LAE in the Non-life Run-off, Atrium and StarStone segments for the three and six months ended June 30, 2016 and 2015:  
 
Three Months Ended June 30, 2016
 
Three Months Ended June 30, 2015
 
Non-life Run-off
 
Atrium
 
StarStone
 
Total
 
Non-life
Run-off
 
Atrium
 
StarStone
 
Total
Net losses paid
$
143,056

 
$
12,523

 
$
64,453

 
$
220,032

 
$
164,440

 
$
12,121

 
$
39,414

 
$
215,975

Net change in case and LAE reserves
(74,560
)
 
2,035

 
21,736

 
(50,789
)
 
(104,330
)
 
136

 
46,729

 
(57,465
)
Net change in IBNR reserves
(102,836
)
 
3,538

 
17,285

 
(82,013
)
 
(75,957
)
 
5,186

 
(5,690
)
 
(76,461
)
Increase (reduction) in estimates of net ultimate losses
(34,340
)
 
18,096

 
103,474

 
87,230

 
(15,847
)
 
17,443

 
80,453

 
82,049

Reduction in provisions for bad debt
(5,184
)
 
—

 
—

 
(5,184
)
 
(625
)
 
—

 
—

 
(625
)
Increase (reduction) in provisions for unallocated LAE
(6,571
)
 
50

 
758

 
(5,763
)
 
(7,711
)
 
(8
)
 
1,055

 
(6,664
)
Amortization of fair value adjustments
21,405

 
(1,013
)
 
(213
)
 
20,179

 
(4,687
)
 
(3,678
)
 
(495
)
 
(8,860
)
Net incurred losses and LAE
$
(24,690
)
 
$
17,133

 
$
104,019

 
$
96,462

 
$
(28,870
)
 
$
13,757

 
$
81,013

 
$
65,900

 
Six Months Ended June 30, 2016
 
Six Months Ended June 30, 2015
 
Non-life Run-off
 
Atrium
 
StarStone
 
Total
 
Non-life
Run-off
 
Atrium
 
StarStone
 
Total
Net losses paid
$
275,369

 
$
20,271

 
$
116,129

 
$
411,769

 
$
229,700

 
$
24,032

 
$
91,563

 
$
345,295

Net change in case and LAE reserves
(183,345
)
 
263

 
34,391

 
(148,691
)
 
(111,330
)
 
(883
)
 
44,943

 
(67,270
)
Net change in IBNR reserves
(139,899
)
 
13,429

 
44,372

 
(82,098
)
 
(113,235
)
 
1,376

 
20,049

 
(91,810
)
Increase (reduction) in estimates of net ultimate losses
(47,875
)
 
33,963

 
194,892

 
180,980

 
5,135

 
24,525

 
156,555

 
186,215

Reduction in provisions for bad debt
(6,630
)
 
—

 
—

 
(6,630
)
 
(20,439
)
 
—

 
—

 
(20,439
)
Increase (reduction) in provisions for unallocated LAE
(14,361
)
 
134

 
1,768

 
(12,459
)
 
(21,686
)
 
(70
)
 
1,711

 
(20,045
)
Amortization of fair value adjustments
20,622

 
(1,375
)
 
(1,458
)
 
17,789

 
(4,980
)
 
(3,678
)
 
(1,037
)
 
(9,695
)
Net incurred losses and LAE
$
(48,244
)
 
$
32,722

 
$
195,202

 
$
179,680

 
$
(41,970
)
 
$
20,777

 
$
157,229

 
$
136,036

Net incurred losses and LAE in the Non-life Run-off segment for the three months ended June 30, 2016 and 2015 were as follows:
 
Three Months Ended June 30,
 
2016
 
2015
 
Prior
Period
 
Current
Period
 
Total
 
Prior
Period
 
Current
Period
 
Total
Net losses paid
$
140,998

 
$
2,058

 
$
143,056

 
$
155,006

 
$
9,434

 
$
164,440

Net change in case and LAE reserves
(74,832
)
 
272

 
(74,560
)
 
(108,819
)
 
4,489

 
(104,330
)
Net change in IBNR reserves
(101,240
)
 
(1,596
)
 
(102,836
)
 
(84,581
)
 
8,624

 
(75,957
)
Increase (reduction) in estimates of net ultimate losses
(35,074
)
 
734

 
(34,340
)
 
(38,394
)
 
22,547

 
(15,847
)
Increase (reduction) in provisions for bad debt
(5,184
)
 
—

 
(5,184
)
 
(625
)
 
—

 
(625
)
Increase (reduction) in provisions for unallocated LAE
(6,355
)
 
(216
)
 
(6,571
)
 
(7,711
)
 
—

 
(7,711
)
Amortization of fair value adjustments
21,405

 
—

 
21,405

 
(4,687
)
 
—

 
(4,687
)
Net incurred losses and LAE
$
(25,208
)
 
$
518

 
$
(24,690
)
 
$
(51,417
)
 
$
22,547

 
$
(28,870
)
Net incurred losses and LAE in the StarStone segment for the three and six months ended June 30, 2016 and 2015 were as follows:
 
Three Months Ended June 30,
 
2016
 
2015
 
Prior Period
 
Current Period
 
Total
 
Prior Period
 
Current Period
 
Total
Net losses paid
$
54,744

 
$
9,709

 
$
64,453

 
$
31,896

 
$
7,518

 
$
39,414

Net change in case and LAE reserves
(26,737
)
 
48,473

 
21,736

 
6,397

 
40,332

 
46,729

Net change in IBNR reserves
(28,321
)
 
45,606

 
17,285

 
(38,584
)
 
32,894

 
(5,690
)
Increase (reduction) in estimates of net ultimate losses
(314
)
 
103,788

 
103,474

 
(291
)
 
80,744

 
80,453

Increase (reduction) in provisions for unallocated LAE
(1,002
)
 
1,760

 
758

 
506

 
549

 
1,055

Amortization of fair value adjustments
(213
)
 
—

 
(213
)
 
(495
)
 
—

 
(495
)
Net incurred losses and LAE
$
(1,529
)
 
$
105,548

 
$
104,019

 
$
(280
)
 
$
81,293

 
$
81,013


 
Six Months Ended June 30,
 
2016
 
2015
 
Prior Period
 
Current Period
 
Total
 
Prior Period
 
Current Period
 
Total
Net losses paid
$
105,314

 
$
10,815

 
$
116,129

 
$
80,322

 
$
11,241

 
$
91,563

Net change in case and LAE reserves
(22,102
)
 
56,493

 
34,391

 
(3,934
)
 
48,877

 
44,943

Net change in IBNR reserves
(83,234
)
 
127,606

 
44,372

 
(76,262
)
 
96,311

 
20,049

Increase (reduction) in estimates of net ultimate losses
(22
)
 
194,914

 
194,892

 
126

 
156,429

 
156,555

Increase (reduction) in provisions for unallocated LAE
(2,036
)
 
3,804

 
1,768

 
(563
)
 
2,274

 
1,711

Amortization of fair value adjustments
(1,458
)
 
—

 
(1,458
)
 
(1,037
)
 
—

 
(1,037
)
Net incurred losses and LAE
$
(3,516
)
 
$
198,718

 
$
195,202

 
$
(1,474
)
 
$
158,703

 
$
157,229

Net incurred losses and LAE in the Atrium segment for the three and six months ended June 30, 2016 and 2015 were as follows:
 
Three Months Ended June 30,
 
2016
 
2015
 
Prior
Period
 
Current
Period
 
Total
 
Prior
Period
 
Current
Period
 
Total
Net losses paid
$
7,268

 
$
5,255

 
$
12,523

 
$
7,583

 
$
4,538

 
$
12,121

Net change in case and LAE reserves
(3,391
)
 
5,426

 
2,035

 
(3,946
)
 
4,082

 
136

Net change in IBNR reserves
(6,181
)
 
9,719

 
3,538

 
(3,560
)
 
8,746

 
5,186

Increase (reduction) in estimates of net ultimate losses
(2,304
)
 
20,400

 
18,096

 
77

 
17,366

 
17,443

Increase (reduction) in provisions for unallocated LAE
(118
)
 
168

 
50

 
(137
)
 
129

 
(8
)
Amortization of fair value adjustments
(1,013
)
 
—

 
(1,013
)
 
(3,678
)
 
—

 
(3,678
)
Net incurred losses and LAE
$
(3,435
)
 
$
20,568

 
$
17,133

 
$
(3,738
)
 
$
17,495

 
$
13,757


 
Six Months Ended June 30,
 
2016
 
2015
 
Prior Period
 
Current Period
 
Total
 
Prior Period
 
Current Period
 
Total
Net losses paid
$
12,778

 
$
7,493

 
$
20,271

 
$
16,624

 
$
7,408

 
$
24,032

Net change in case and LAE reserves
(7,351)

 
7,614

 
263

 
(7,657)

 
6,774

 
(883)

Net change in IBNR reserves
(7,772)

 
21,201

 
13,429

 
(16,553)

 
17,929

 
1,376

Increase (reduction) in estimates of net ultimate losses
(2,345)

 
36,308

 
33,963

 
(7,586)

 
32,111

 
24,525

Increase (reduction) in provisions for unallocated LAE
(189)

 
323

 
134

 
(332)

 
262

 
(70)

Amortization of fair value adjustments
(1,375)

 
—

 
(1,375)

 
(3,678)

 
—

 
(3,678)

Net incurred losses and LAE
$
(3,909
)
 
$
36,631

 
$
32,722

 
$
(11,596
)
 
$
32,373

 
$
20,777

Net incurred losses and LAE in the Non-life Run-off segment for the six months ended June 30, 2016 and 2015 were as follows:
 
Six Months Ended June 30,
 
2016
 
2015
 
Prior
Period
 
Current
Period
 
Total
 
Prior
Period
 
Current
Period
 
Total
Net losses paid
$
271,321

 
$
4,048

 
$
275,369

 
$
215,695

 
$
14,005

 
$
229,700

Net change in case and LAE reserves
(183,801
)
 
456

 
(183,345
)
 
(118,813
)
 
7,483

 
(111,330
)
Net change in IBNR reserves
(141,753
)
 
1,854

 
(139,899
)
 
(135,020
)
 
21,785

 
(113,235
)
Increase (reduction) in estimates of net ultimate losses
(54,233
)
 
6,358

 
(47,875
)
 
(38,138
)
 
43,273

 
5,135

Increase (reduction) in provisions for bad debt
(6,630
)
 
—

 
(6,630
)
 
(20,439
)
 
—

 
(20,439
)
Increase (reduction) in provisions for unallocated LAE
(14,590
)
 
229

 
(14,361
)
 
(21,686
)
 
—

 
(21,686
)
Amortization of fair value adjustments
20,622

 
—

 
20,622

 
(4,980
)
 
—

 
(4,980
)
Net incurred losses and LAE
$
(54,831
)
 
$
6,587

 
$
(48,244
)
 
$
(85,243
)
 
$
43,273

 
$
(41,970
)