2.2.0.7 false Basis of Presentation 1010 - Disclosure - Basis of Presentation true false false false 1 USD false false USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 USDPerShare Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 $ 2 Basis of Presentation 0 trh_BasisOfPresentationDisclosureAbstract trh false na duration No definition available. false false false false false true false false false false false false 1 false false false false 0 0 false false false xbrli:stringItemType string No definition available. false 3 Basis of Presentation 1 trh_BasisOfPresentationDisclosureTextBlock trh false na duration This item contains a description of the principles of consolidation, the basis of presentation of financial statements and... false false false false false false false false false false false terselabel false 1 false false false false 0 0 <table style="font-size:10pt; font-family:'Times New Roman',times,serif;"> <tr> <td> 1. Basis of Presentation   These unaudited condensed consolidated financial statements do not include all disclosures required by generally accepted accounting principles in the U.S. (GAAP) for complete financial statements and should be read in conjunction with the audited consolidated financial statements and the related notes included in the Annual Report on Form 10-K of Transatlantic Holdings, Inc. (the Company, and collectively with its subsidiaries, TRH) for the year ended December 31, 2009.   In the opinion of management, these condensed consolidated financial statements contain the normal recurring adjustments necessary for a fair statement of the results presented herein.  All material intercompany accounts and transactions have been eliminated.   The preparation of financial statements in conformity with GAAP requires the use of estimates and assumptions that affect the reported amounts and related disclosures.   TRH relies on historical experience and on various other assumptions that it believes to be reasonable, under the circumstances, to make judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.  Actual results may differ materially from these estimates.   TRH believes its most critical accounting estimates are those with respect to loss reserves, fair value measurements of certain financial assets, other-than-temporary impairments (OTTI) of investments, premium revenues and deferred policy acquisition costs, as they require managements most significant exercise of judgment on both a quantitative and qualitative basis in the preparation of TRHs condensed consolidated financial statements and footnotes.  The accounting estimates that result require the use of assumptions about certain matters that are highly uncertain at the time of estimation.  To the extent actual experience differs from the assumptions used, TRHs results of operations and financial condition would be affected, possibly materially.   Subsequent events through the time of filing of this Form 10-Q were evaluated for potential recognition or disclosure in the financial statements.   Certain reclassifications and format changes have been made to prior period amounts to conform to the current period presentation.   Corrections of Amounts Included in Previously Issued Reports   The below errors and related corrections did not, either individually or in the aggregate, have a material effect on the current or any prior period and thus, prior period financial statements have not been restated.   (a) Correction of Amortized Cost or Cost of Certain Fixed Maturities and Equities Denominated in Functional Currencies   In the first quarter of 2010, it was determined that as of September 30, 2009 and December 31, 2009 the amortized cost of fixed maturities and cost of equities available for sale that were denominated in functional currencies were incorrectly translated into the reporting currency (i.e., U.S. dollars) using historical, rather than period-end, foreign currency exchange rates.  This practice, which began in the third quarter of 2009, resulted in an understatement of amortized cost or cost of such investments of $153.7 million ($133.9 million relating to fixed maturities and $19.8 million relating to equities) as of September 30, 2009 and of $98.1 million ($80.1 million relating to fixed maturities and $18.0 million relating to equities) as of December 31, 2009.  Thus, net unrealized appreciation of investments, net of tax, (a component of accumulated other comprehensive income (AOCI) on the Balance Sheet) was overstated by $99.9 million as of September 30, 2009 and $63.7 million as of December 31, 2009 with an equal and offsetting overstatement of net unrealized currency translation loss, net of tax (also a component of AOCI).  The related components of other comprehensive income were similarly affected, with no net effect on other comprehensive income. The errors discussed above had no net effect on AOCI, stockholders equity, net income, comprehensive income or cash flows for the full-year 2009 or any of its quarters.   For all quarters-ended in 2010, the amortized cost of fixed maturities and cost of equities available for sale that are denominated in functional currencies were properly translated into the reporting currency using period-end foreign currency exchange rates. However, as the correction of the treatment discussed earlier occurred in the first quarter of 2010, the increase in net unrealized appreciation of investments, net of tax, for the first nine months of 2010 was reduced by $63.7 million (the amount of the correction of the December 31, 2009 amount recorded in first quarter 2010) in the Statement of Comprehensive Income and net unrealized currency translation gain, net of tax, was increased by such amount, with no net effect on other comprehensive income (loss) (OCI). There was no impact on the three months ended September 30, 2010. In addition, this correction had no net impact on AOCI and stockholders equity as of September 30, 2010 nor did it have any net impact on net income, comprehensive income or cash flows for the three or nine months ended September 30, 2010.   (b) Correction of Cumulative Effect Adjustment (CEA) Related to the Adoption of Accounting Guidance Related to OTTI of Fixed Maturities   In the second quarter of 2009, TRH recorded a CEA of $139.8 million, or $90.9 million, net of tax, in connection with the adoption of new accounting guidance related to OTTI on fixed maturities that was effective April 1, 2009.  See further discussion in Note 2.  In the third quarter of 2009, an error was discovered relating to the discount rate that was applied to the future cash flows used in the CEA calculation.  The correct CEA was $110.1 million, or $71.6 million, net of tax, a reduction of $29.7 million, or $19.3 million, net of tax, from the amounts recorded in the second quarter of 2009.  This correction, which was made in the third quarter of 2009, had no net effect on net income, comprehensive income, stockholders equity or cash flows, and affected only the changes in AOCI and retained earnings in equal but offsetting amounts for the three months ended September 30, 2009.  Had this correction been made in the second quarter of 2009, retained earnings reported in that quarter would have been reduced by $19.3 million and accumulated other comprehensive loss would have been reduced by the same amount, with no net effect on stockholders equity.   (c) Correction of Amortized Cost of Certain Fixed Maturities   In connection with the transitioning to a new provider of investment recordkeeping and valuation services in the third quarter of 2009, it was determined that amortized cost on certain fixed maturities available for sale as of June 30, 2009 was understated by $82.9 million. This understatement of amortized cost resulted in an understatement of net unrealized depreciation of investments, net of tax, as of June 30, 2009, of $53.9 million, with an equal and offsetting overstatement of net unrealized currency translation loss, net of tax, with no net effect on AOCI on the balance sheet.  In addition, this understatement had no net effect on net income, stockholders equity or cash flows.   The corrections made in the third quarter of 2009 are reflected in the Statements of Comprehensive Income for the third quarter and first nine months of 2009.  As a result of those corrections, the increase in net unrealized appreciation of investments, net of tax, was reduced by $53.9 million and the increase in net unrealized currency translation gain, net of tax, was increased by such amount, with no net effect on OCI for each of the quarter and nine months ended September 30, 2009, or on AOCI as of September 30, 2009.  In addition, this correction had no net impact on stockholders equity as of September 30, 2009.  </td></tr></table> 1. Basis of Presentation   These unaudited condensed consolidated financial statements do not include all disclosures required by generally accepted false false false us-types:textBlockItemType textblock This item contains a description of the principles of consolidation, the basis of presentation of financial statements and related disclosures and identification of the most critical accounting estimates. Also includes disclosure of non-material corrections made related to information reported in earlier periods. No authoritative reference available. false 1 2 false UnKnown UnKnown UnKnown false true