x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the quarterly period ended June 30, 2018 | ||
OR | ||
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
XL GROUP LTD |
(Exact name of registrant as specified in its charter) |
Bermuda | 98-1304974 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Large accelerated filer x | Accelerated filer ¨ | Non-accelerated filer ¨ | Smaller reporting company ¨ | Emerging growth company ¨ |
Page No. | ||
Unaudited Consolidated Balance Sheets at June 30, 2018 and December 31, 2017 | ||
Unaudited Consolidated Statements of Income for the Three and Six Months Ended June 30, 2018 and 2017 | ||
Unaudited Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2018 and 2017 | ||
Unaudited Consolidated Statements of Shareholders' Equity for the Six Months Ended June 30, 2018 and 2017 | ||
Unaudited Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2018 and 2017 | ||
Item 5. | Other Information | |
ITEM 1. | FINANCIAL STATEMENTS |
(U.S. dollars in thousands, except share data) | June 30, 2018 | December 31, 2017 | |||||
ASSETS | |||||||
Investments: | |||||||
Fixed maturities available for sale (''AFS''), at fair value (amortized cost: 2018 - $29,689,322; 2017 - $30,157,581) | $ | 29,793,151 | $ | 30,928,988 | |||
Short-term investments AFS, at fair value (amortized cost: 2018 - $623,158; 2017 - $816,638) | 623,113 | 815,481 | |||||
Fixed maturities trading, at fair value (amortized cost: 2018 - $1,965,372; 2017 - $1,946,501) | 1,990,344 | 2,006,385 | |||||
Short-term investments trading, at fair value (amortized cost: 2018 - $5,777; 2017 - $14,969) | 5,788 | 14,965 | |||||
Equity securities, at fair value (cost: 2018 - $586,220; 2017 - $638,455) | 644,711 | 713,967 | |||||
Investments in affiliates | 1,904,010 | 1,911,996 | |||||
Other investments | 1,151,706 | 1,163,863 | |||||
Total investments | $ | 36,112,823 | $ | 37,555,645 | |||
Cash and cash equivalents | 2,903,070 | 3,435,954 | |||||
Restricted cash | 127,497 | 157,497 | |||||
Accrued investment income | 265,115 | 272,149 | |||||
Deferred acquisition costs and value of business acquired | 1,162,164 | 1,102,474 | |||||
Ceded unearned premiums | 2,807,369 | 2,198,217 | |||||
Premiums receivable | 8,079,074 | 6,934,482 | |||||
Reinsurance balances receivable | 1,293,477 | 930,114 | |||||
Unpaid losses and loss expenses recoverable | 7,209,084 | 7,247,723 | |||||
Receivable from investments sold | 188,781 | 201,515 | |||||
Goodwill and other intangible assets | 2,201,085 | 2,225,751 | |||||
Deferred tax asset | 372,520 | 332,024 | |||||
Other assets | 863,830 | 842,691 | |||||
Total assets | $ | 63,585,889 | $ | 63,436,236 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Liabilities: | |||||||
Unpaid losses and loss expenses | $ | 29,181,147 | $ | 29,696,779 | |||
Deposit liabilities | 940,557 | 1,042,677 | |||||
Future policy benefit reserves | 3,380,442 | 3,610,926 | |||||
Funds withheld on GreyCastle life retrocession arrangements (net of future policy benefit reserves recoverable: 2018 - $2,971,191; 2017 - $3,191,584) | 736,092 | 999,219 | |||||
Unearned premiums | 9,539,454 | 8,307,431 | |||||
Notes payable and debt | 3,217,123 | 3,220,769 | |||||
Reinsurance balances payable | 4,071,505 | 3,706,116 | |||||
Payable for investments purchased | 217,797 | 332,989 | |||||
Deferred tax liability | 57,360 | 57,574 | |||||
Other liabilities | 987,406 | 1,000,436 | |||||
Total liabilities | $ | 52,328,883 | $ | 51,974,916 | |||
Commitments and Contingencies | |||||||
Shareholders' Equity: | |||||||
Authorized shares, 999,990,000, par value $0.01; common shares issued and outstanding (2018 - 258,780,274; 2017 - 256,033,895) | $ | 2,588 | $ | 2,560 | |||
Additional paid in capital | 7,841,304 | 7,757,940 | |||||
Accumulated other comprehensive income | 51,264 | 889,431 | |||||
Retained earnings | 1,764,855 | 1,198,386 | |||||
Shareholders' equity attributable to XL Group Ltd | $ | 9,660,011 | $ | 9,848,317 | |||
Non-controlling interest in equity of consolidated subsidiaries | 1,596,995 | 1,613,003 | |||||
Total shareholders' equity | $ | 11,257,006 | $ | 11,461,320 | |||
Total liabilities and shareholders' equity | $ | 63,585,889 | $ | 63,436,236 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
(U.S. dollars in thousands, except per share data) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Revenues: | |||||||||||||||
Net premiums earned | $ | 2,695,169 | $ | 2,516,917 | $ | 5,295,457 | $ | 5,039,708 | |||||||
Net investment income: | |||||||||||||||
Net investment income - excluding Life Funds Withheld Assets | 201,536 | 177,235 | 389,619 | 344,403 | |||||||||||
Net investment income - Life Funds Withheld Assets | 30,252 | 31,439 | 60,650 | 64,803 | |||||||||||
Total net investment income | $ | 231,788 | $ | 208,674 | $ | 450,269 | $ | 409,206 | |||||||
Realized investment gains (losses): | |||||||||||||||
Net realized gains (losses) on investments AFS - excluding Life Funds Withheld Assets | (14,100 | ) | 50,379 | (45,772 | ) | 61,471 | |||||||||
Net realized and change in net unrealized gains (losses) on equity securities - excluding Life Funds Withheld Assets | 35,194 | — | (820 | ) | — | ||||||||||
Net realized and change in net unrealized gains (losses) on other investments - excluding Life Funds Withheld Assets | 9,302 | — | 17,951 | — | |||||||||||
Other-than-temporary impairments ("OTTI") - excluding Life Funds Withheld Assets | (2,564 | ) | (1,160 | ) | (4,209 | ) | (8,034 | ) | |||||||
OTTI transferred to (from) other comprehensive income - excluding Life Funds Withheld Assets | (436 | ) | (50 | ) | (597 | ) | (50 | ) | |||||||
Net realized gains (losses) on investments and change in net unrealized gains (losses) on investments, trading - Life Funds Withheld Assets | 63,409 | 7,459 | 42,100 | 40,527 | |||||||||||
OTTI - Life Funds Withheld Assets | — | — | (1,203 | ) | — | ||||||||||
Total realized investment gains (losses) | $ | 90,805 | $ | 56,628 | $ | 7,450 | $ | 93,914 | |||||||
Net realized and unrealized gains (losses) on derivative instruments | 16,126 | (906 | ) | 20,347 | (7,975 | ) | |||||||||
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets | (36,120 | ) | (34,596 | ) | (13,199 | ) | (84,697 | ) | |||||||
Income (loss) from investment affiliates | 16,548 | 30,818 | 62,217 | 69,079 | |||||||||||
Fee income and other | 8,304 | 10,225 | 15,021 | 23,886 | |||||||||||
Total revenues | $ | 3,022,620 | $ | 2,787,760 | $ | 5,837,562 | $ | 5,543,121 | |||||||
Expenses: | |||||||||||||||
Net losses and loss expenses incurred | $ | 1,721,309 | $ | 1,529,083 | $ | 3,343,315 | $ | 3,112,539 | |||||||
Claims and policy benefits | 10,117 | 7,595 | 20,424 | 14,886 | |||||||||||
Acquisition costs | 471,491 | 433,584 | 935,318 | 869,453 | |||||||||||
Operating expenses | 470,508 | 472,778 | 943,071 | 940,816 | |||||||||||
Foreign exchange (gains) losses | (12,140 | ) | (5,643 | ) | (2,299 | ) | (8,979 | ) | |||||||
Interest expense | 48,686 | 54,018 | 102,231 | 104,729 | |||||||||||
Total expenses | $ | 2,709,971 | $ | 2,491,415 | $ | 5,342,060 | $ | 5,033,444 | |||||||
Income (loss) before income tax and income (loss) from operating affiliates | $ | 312,649 | $ | 296,345 | $ | 495,502 | $ | 509,677 | |||||||
Income (loss) from operating affiliates | 51,187 | 42,704 | 61,469 | 56,313 | |||||||||||
Provision (benefit) for income tax | 27,036 | 29,006 | 58,938 | 42,098 | |||||||||||
Net income (loss) | $ | 336,800 | $ | 310,043 | $ | 498,033 | $ | 523,892 | |||||||
Non-controlling interests | 17,804 | 8,423 | 26,389 | 69,429 | |||||||||||
Net income (loss) attributable to common shareholders | $ | 318,996 | $ | 301,620 | $ | 471,644 | $ | 454,463 | |||||||
Weighted average common shares and common share equivalents outstanding, in thousands – basic | 258,375 | 260,990 | 257,653 | 263,327 | |||||||||||
Weighted average common shares and common share equivalents outstanding, in thousands – diluted | 263,822 | 264,943 | 262,610 | 267,279 | |||||||||||
Earnings (loss) per common share and common share equivalent – basic | $ | 1.23 | $ | 1.16 | $ | 1.83 | $ | 1.73 | |||||||
Earnings (loss) per common share and common share equivalent – diluted | $ | 1.21 | $ | 1.14 | $ | 1.80 | $ | 1.70 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
(U.S. dollars in thousands) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Net income (loss) attributable to common shareholders | $ | 318,996 | $ | 301,620 | $ | 471,644 | $ | 454,463 | |||||||
Change in net unrealized gains (losses) on investments AFS - excluding Life Funds Withheld Assets, net of tax | (178,467 | ) | 75,855 | (509,195 | ) | 178,477 | |||||||||
Change in adjustments related to future policy benefit reserves, net of tax | 42,314 | 3,437 | 46,478 | 8,569 | |||||||||||
Change in net unrealized gains (losses) on investments AFS - Life Funds Withheld Assets, net of tax | (99,031 | ) | (11,956 | ) | (134,785 | ) | (32,064 | ) | |||||||
Change in net unrealized gains (losses) on affiliate investments, net of tax | 127 | 1,006 | 2,275 | (1,457 | ) | ||||||||||
Change in net unrealized gains (losses) on other investments, net of tax | — | 8,068 | — | 9,338 | |||||||||||
Change in OTTI recognized in other comprehensive income, net of tax | 1,996 | 1,497 | 5,612 | 2,939 | |||||||||||
Change in underfunded pension liability, net of tax | 413 | (576 | ) | 224 | (933 | ) | |||||||||
Change in value of cash flow hedge | (47 | ) | (48 | ) | (95 | ) | (96 | ) | |||||||
Foreign currency translation adjustments, net of tax | (28,296 | ) | (1,092 | ) | (30,728 | ) | 40,846 | ||||||||
Comprehensive income (loss) | $ | 58,005 | $ | 377,811 | $ | (148,570 | ) | $ | 660,082 |
Six Months Ended | |||||||
June 30, | |||||||
(U.S. dollars in thousands) | 2018 | 2017 | |||||
Common Shares: | |||||||
Balance - beginning of year | $ | 2,560 | $ | 2,669 | |||
Issuance of common shares | 7 | 11 | |||||
Buybacks of common shares | — | (111 | ) | ||||
Exercise of stock options | 21 | 17 | |||||
Balance - end of period | $ | 2,588 | $ | 2,586 | |||
Additional Paid in Capital: | |||||||
Balance - beginning of year | $ | 7,757,940 | $ | 8,068,503 | |||
Buybacks of common shares | (1,405 | ) | (333,747 | ) | |||
Exercise of stock options | 62,507 | 42,614 | |||||
Share-based compensation and other | 22,262 | 13,543 | |||||
Balance - end of period | $ | 7,841,304 | $ | 7,790,913 | |||
Accumulated Other Comprehensive Income (Loss): | |||||||
Balance - beginning of year | $ | 889,431 | $ | 715,546 | |||
Reclassification due to the adoption of Accounting Standards Update ("ASU") 2016-01 | (221,856 | ) | — | ||||
Reclassification due to the adoption of ASU 2018-02 | 3,903 | — | |||||
Change in net unrealized gains (losses) on investments AFS - excluding Life Funds Withheld Assets, net of tax | (509,195 | ) | 178,477 | ||||
Change in adjustments related to future policy benefit reserves, net of tax | 46,478 | 8,569 | |||||
Change in net unrealized gains (losses) on investments AFS - Life Funds Withheld Assets, net of tax | (134,785 | ) | (32,064 | ) | |||
Change in net unrealized gains (losses) on affiliate investments, net of tax | 2,275 | (1,457 | ) | ||||
Change in net unrealized gains (losses) on other investments, net of tax | — | 9,338 | |||||
Change in OTTI losses recognized in other comprehensive income, net of tax | 5,612 | 2,939 | |||||
Change in underfunded pension liability, net of tax | 224 | (933 | ) | ||||
Change in value of cash flow hedge | (95 | ) | (96 | ) | |||
Foreign currency translation adjustments, net of tax | (30,728 | ) | 40,846 | ||||
Balance - end of period | $ | 51,264 | $ | 921,165 | |||
Retained Earnings (Deficit): | |||||||
Balance - beginning of year | $ | 1,198,386 | $ | 2,151,794 | |||
Reclassification due to the adoption of ASU 2016-01 | 221,856 | — | |||||
Reclassification due to the adoption of ASU 2018-02 | (3,903 | ) | — | ||||
Net income (loss) attributable to common shareholders | 471,644 | 454,463 | |||||
Dividends on common shares | (115,402 | ) | (117,508 | ) | |||
Buybacks of common shares | (651 | ) | (116,772 | ) | |||
Share-based compensation and other | (7,075 | ) | (6,089 | ) | |||
Balance - end of period | $ | 1,764,855 | $ | 2,365,888 | |||
Non-controlling Interest in Equity of Consolidated Subsidiaries: | |||||||
Balance - beginning of year | $ | 1,613,003 | $ | 2,022,167 | |||
Non-controlling interests - contributions | 1,924 | 25 | |||||
Non-controlling interests - distributions | (12,153 | ) | (6,093 | ) | |||
Non-controlling interests - other | (6,552 | ) | 5,459 | ||||
Non-controlling interest share in change in accumulated other comprehensive income (loss) | 773 | 297 | |||||
Balance - end of period | $ | 1,596,995 | $ | 2,021,855 | |||
Total Shareholders' Equity | $ | 11,257,006 | $ | 13,102,407 |
Six Months Ended | |||||||
June 30, | |||||||
(U.S. dollars in thousands) | 2018 | 2017 | |||||
Cash flows provided by (used in) operating activities: | |||||||
Net income (loss) | $ | 498,033 | $ | 523,892 | |||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||
Total realized investment (gains) losses | (7,450 | ) | (93,914 | ) | |||
Net realized and unrealized (gains) losses on derivative instruments | (20,347 | ) | 7,975 | ||||
Net realized and unrealized (gains) losses on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets | 13,199 | 84,697 | |||||
Amortization of premiums (discounts) on fixed maturities | 60,900 | 83,551 | |||||
(Income) loss from investment and operating affiliates | (96,051 | ) | (94,078 | ) | |||
Share-based compensation | 31,910 | 29,959 | |||||
Depreciation and amortization | 44,916 | 36,567 | |||||
Accretion of deposit liabilities | 16,721 | 20,013 | |||||
Changes in: | |||||||
Unpaid losses and loss expenses | (169,596 | ) | 343,776 | ||||
Future policy benefit reserves | (151,977 | ) | (121,082 | ) | |||
Funds withheld on GreyCastle life retrocession arrangements, net | (200,344 | ) | (219,050 | ) | |||
Unearned premiums | 1,376,976 | 1,381,596 | |||||
Premiums receivable | (1,271,167 | ) | (1,280,244 | ) | |||
Unpaid losses and loss expenses recoverable | (54,083 | ) | (257,264 | ) | |||
Ceded unearned premiums | (651,018 | ) | (830,558 | ) | |||
Reinsurance balances receivable | (385,871 | ) | (164,010 | ) | |||
Deferred acquisition costs and value of business acquired | (76,773 | ) | (174,227 | ) | |||
Reinsurance balances payable | 435,956 | 905,779 | |||||
Deferred tax asset - net | 22,985 | 9,058 | |||||
Derivatives | 44,421 | 21,701 | |||||
Other assets | (21,504 | ) | (118,147 | ) | |||
Other liabilities | (805 | ) | (257,159 | ) | |||
Other | (50,648 | ) | 39,227 | ||||
Total adjustments | $ | (1,109,650 | ) | $ | (645,834 | ) | |
Net cash provided by (used in) operating activities | $ | (611,617 | ) | $ | (121,942 | ) | |
Cash flows provided by (used in) investing activities: | |||||||
Proceeds from sale of fixed maturities and short-term investments | $ | 7,431,308 | $ | 6,387,610 | |||
Proceeds from redemption of fixed maturities and short-term investments | 1,440,191 | 2,084,182 | |||||
Proceeds from sale of equity securities | 84,068 | 228,914 | |||||
Purchases of fixed maturities and short-term investments | (8,781,847 | ) | (8,719,024 | ) | |||
Purchases of equity securities | (44,954 | ) | (277,329 | ) | |||
Proceeds from sale of affiliates | 302,199 | 236,861 | |||||
Purchases of affiliates | (103,222 | ) | (51,891 | ) | |||
Other | (29,985 | ) | 5,127 | ||||
Net cash provided by (used in) investing activities | $ | 297,758 | $ | (105,550 | ) | ||
Cash flows provided by (used in) financing activities: | |||||||
Proceeds from issuance of common shares and exercise of stock options | $ | 60,855 | $ | 42,630 | |||
Buybacks of common shares | (2,057 | ) | (450,629 | ) | |||
Employee withholding on share-based compensation | (16,696 | ) | (23,957 | ) | |||
Dividends paid on common shares | (113,726 | ) | (115,589 | ) | |||
Distributions to non-controlling interests | (45,094 | ) | (73,708 | ) | |||
Contributions from non-controlling interests | 1,924 | 25 | |||||
Proceeds from the issuance of debt | — | 558,311 | |||||
Contingent consideration paid on business combination | (5,000 | ) | (7,304 | ) | |||
Deposit liabilities | (119,113 | ) | (11,150 | ) | |||
Net cash provided by (used in) financing activities | $ | (238,907 | ) | $ | (81,371 | ) | |
Effects of exchange rate changes on foreign currency cash | (10,118 | ) | 43,423 | ||||
Increase (decrease) in cash, cash equivalents and restricted cash | $ | (562,884 | ) | $ | (265,440 | ) | |
Cash, cash equivalents and restricted cash - beginning of year | 3,593,451 | 3,580,492 | |||||
Cash, cash equivalents and restricted cash - end of period | $ | 3,030,567 | $ | 3,315,052 |
Three Months Ended June 30, 2018 (U.S. dollars in thousands) | Insurance | Reinsurance | Total P&C | Corporate and Other (1) | Total | ||||||||||||||
Gross premiums written | $ | 2,881,921 | $ | 1,048,352 | $ | 3,930,273 | $ | 55,093 | $ | 3,985,366 | |||||||||
Net premiums written | 1,929,564 | 889,675 | 2,819,239 | 2,505 | 2,821,744 | ||||||||||||||
Net premiums earned | 1,748,355 | 944,309 | 2,692,664 | 2,505 | 2,695,169 | ||||||||||||||
Less: Net losses and loss expenses (2) | 1,224,756 | 496,553 | 1,721,309 | 10,117 | 1,731,426 | ||||||||||||||
Less: Acquisition costs | 237,694 | 232,538 | 470,232 | 1,259 | 471,491 | ||||||||||||||
Less: Operating expenses (3) | 306,585 | 80,309 | 386,894 | 195 | 387,089 | ||||||||||||||
Underwriting profit (loss) | $ | (20,680 | ) | $ | 134,909 | $ | 114,229 | $ | (9,066 | ) | $ | 105,163 | |||||||
Net investment income - excluding Life Funds Withheld Assets (4) | 182,009 | 7,227 | 189,236 | ||||||||||||||||
Net investment income - Life Funds Withheld Assets | 30,252 | 30,252 | |||||||||||||||||
Net results from structured products (5) | 1,810 | 6,572 | 8,382 | — | 8,382 | ||||||||||||||
Net fee income and other (6) | (4,991 | ) | 1,140 | (3,851 | ) | 45 | (3,806 | ) | |||||||||||
Net realized investment gains (losses) - excluding Life Funds Withheld Assets | 24,902 | 2,494 | 27,396 | ||||||||||||||||
Net realized investment gains (losses) - Life Funds Withheld Assets | — | 63,409 | 63,409 | ||||||||||||||||
Net realized and unrealized gains (losses) on derivative instruments | — | 16,126 | 16,126 | ||||||||||||||||
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets | — | (36,120 | ) | (36,120 | ) | ||||||||||||||
Net income (loss) from investment affiliates and operating affiliates | — | 67,735 | 67,735 | ||||||||||||||||
Less: Foreign exchange (gains) losses | — | (12,140 | ) | (12,140 | ) | ||||||||||||||
Less: Corporate operating expenses | — | 71,308 | 71,308 | ||||||||||||||||
Contribution from P&C and Corporate and Other | 325,671 | 82,934 | 408,605 | ||||||||||||||||
Less: Interest expense (7) | 44,769 | 44,769 | |||||||||||||||||
Less: Income tax expense | 27,036 | 27,036 | |||||||||||||||||
Less: Non-controlling interests | 17,804 | 17,804 | |||||||||||||||||
Net income (loss) attributable to common shareholders | $ | 318,996 | |||||||||||||||||
Ratios – P&C operations: (8) | |||||||||||||||||||
Loss and loss expense ratio | 70.1 | % | 52.6 | % | 63.9 | % | |||||||||||||
Underwriting expense ratio | 31.1 | % | 33.1 | % | 31.9 | % | |||||||||||||
Combined ratio | 101.2 | % | 85.7 | % | 95.8 | % |
(1) | Corporate and Other includes other items of our revenue and expenditures that are not evaluated at the segment level for reporting purposes. The underwriting profit (loss) and its components within this section are predominantly driven from the Company's run-off life operations. |
(2) | The Company has reflected the amortization of certain fair value adjustments recorded in conjunction with the Company's acquisition of Catlin Group Ltd in 2015 ("Catlin Acquisition") within the respective segments. |
(3) | Operating expenses of the segments exclude Corporate operating expenses, shown separately. |
(4) | Net investment income - excluding Life Funds Withheld Assets does not include net investment income related to the net results from structured products. |
(5) | The net results from P&C structured products include net investment income and interest expense of $12.3 million and $3.9 million, respectively. |
(6) | Net fee income and other includes operating expenses of $12.1 million from the Company's loss prevention consulting services business. |
(7) | Interest expense excludes interest expense related to structured products recorded in the Insurance and Reinsurance segments. |
(8) | Ratios are based on net premiums earned from P&C operations. |
Three Months Ended June 30, 2017 (U.S. dollars in thousands) | Insurance | Reinsurance | Total P&C | Corporate and Other (1) | Total | ||||||||||||||
Gross premiums written | $ | 2,576,754 | $ | 977,676 | $ | 3,554,430 | $ | 58,519 | $ | 3,612,949 | |||||||||
Net premiums written | 1,741,201 | 905,240 | 2,646,441 | 2,824 | 2,649,265 | ||||||||||||||
Net premiums earned | 1,652,304 | 861,789 | 2,514,093 | 2,824 | 2,516,917 | ||||||||||||||
Less: Net losses and loss expenses (2) | 1,077,087 | 451,996 | 1,529,083 | 7,595 | 1,536,678 | ||||||||||||||
Less: Acquisition costs (2) | 231,908 | 200,394 | 432,302 | 1,282 | 433,584 | ||||||||||||||
Less: Operating expenses (3) | 288,681 | 69,435 | 358,116 | 278 | 358,394 | ||||||||||||||
Underwriting profit (loss) | $ | 54,628 | $ | 139,964 | $ | 194,592 | $ | (6,331 | ) | $ | 188,261 | ||||||||
Net investment income - excluding Life Funds Withheld Assets (4) | 155,559 | 8,157 | 163,716 | ||||||||||||||||
Net investment income - Life Funds Withheld Assets | 31,439 | 31,439 | |||||||||||||||||
Net results from structured products (5) | 1,981 | 942 | 2,923 | — | 2,923 | ||||||||||||||
Net fee income and other (6) | (2,826 | ) | 694 | (2,132 | ) | 135 | (1,997 | ) | |||||||||||
Net realized investment gains (losses) - excluding Life Funds Withheld Assets | 57,140 | (7,971 | ) | 49,169 | |||||||||||||||
Net realized investment gains (losses) - Life Funds Withheld Assets | — | 7,459 | 7,459 | ||||||||||||||||
Net realized and unrealized gains (losses) on derivative instruments | — | (906 | ) | (906 | ) | ||||||||||||||
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets | — | (34,596 | ) | (34,596 | ) | ||||||||||||||
Net income (loss) from investment affiliates and operating affiliates | — | 73,522 | 73,522 | ||||||||||||||||
Less: Foreign exchange (gains) losses | — | (5,643 | ) | (5,643 | ) | ||||||||||||||
Less: Corporate operating expenses | — | 102,162 | 102,162 | ||||||||||||||||
Contribution from P&C and Corporate and Other | 408,082 | (25,611 | ) | 382,471 | |||||||||||||||
Less: Interest expense (7) | 43,422 | 43,422 | |||||||||||||||||
Less: Income tax expense | 29,006 | 29,006 | |||||||||||||||||
Less: Non-controlling interests | 8,423 | 8,423 | |||||||||||||||||
Net income (loss) attributable to common shareholders | $ | 301,620 | |||||||||||||||||
Ratios – P&C operations: (8) | |||||||||||||||||||
Loss and loss expense ratio | 65.2 | % | 52.4 | % | 60.8 | % | |||||||||||||
Underwriting expense ratio | 31.5 | % | 31.4 | % | 31.5 | % | |||||||||||||
Combined ratio | 96.7 | % | 83.8 | % | 92.3 | % |
(1) | Corporate and Other includes other items of our revenue and expenditures that are not evaluated at the segment level for reporting purposes. The underwriting profit (loss) and its components within this section are predominantly driven from the Company's run-off life operations. |
(2) | The Company has reflected the amortization of certain fair value adjustments recorded in conjunction with the Catlin Acquisition within the respective segments. |
(3) | Operating expenses of the segments exclude Corporate operating expenses, shown separately. |
(4) | Net investment income - excluding Life Funds Withheld Assets does not include net investment income related to the net results from structured products. |
(5) | The net results from P&C structured products include net investment income and interest expense of $13.5 million and $10.6 million, respectively. |
(6) | Net fee income and other includes operating expenses of $12.2 million from the Company's loss prevention consulting services business. |
(7) | Interest expense excludes interest expense related to structured products recorded in the Insurance and Reinsurance segments. |
(8) | Ratios are based on net premiums earned from P&C operations. |
Six Months Ended June 30, 2018 (U.S. dollars in thousands) | Insurance | Reinsurance | Total P&C | Corporate and Other (1) | Total | ||||||||||||||
Gross premiums written | $ | 5,748,460 | $ | 3,108,953 | $ | 8,857,413 | $ | 107,688 | $ | 8,965,101 | |||||||||
Net premiums written | 3,411,431 | 2,560,419 | 5,971,850 | 5,612 | 5,977,462 | ||||||||||||||
Net premiums earned | 3,414,144 | 1,875,701 | 5,289,845 | 5,612 | 5,295,457 | ||||||||||||||
Less: Net losses and loss expenses (2) | 2,289,748 | 1,053,567 | 3,343,315 | 20,424 | 3,363,739 | ||||||||||||||
Less: Acquisition costs | 459,656 | 473,392 | 933,048 | 2,270 | 935,318 | ||||||||||||||
Less: Operating expenses (3) | 622,965 | 153,848 | 776,813 | 336 | 777,149 | ||||||||||||||
Underwriting profit (loss) | $ | 41,775 | $ | 194,894 | $ | 236,669 | $ | (17,418 | ) | $ | 219,251 | ||||||||
Net investment income - excluding Life Funds Withheld Assets (4) | 350,262 | 14,746 | 365,008 | ||||||||||||||||
Net investment income - Life Funds Withheld Assets | 60,650 | 60,650 | |||||||||||||||||
Net results from structured products (5) | 3,913 | 7,880 | 11,793 | — | 11,793 | ||||||||||||||
Net fee income and other (6) | (11,694 | ) | 2,032 | (9,662 | ) | 114 | (9,548 | ) | |||||||||||
Net realized investment gains (losses) - excluding Life Funds Withheld Assets | (36,055 | ) | 2,608 | (33,447 | ) | ||||||||||||||
Net realized investment gains (losses) - Life Funds Withheld Assets | — | 40,897 | 40,897 | ||||||||||||||||
Net realized and unrealized gains (losses) on derivative instruments | — | 20,347 | 20,347 | ||||||||||||||||
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets | — | (13,199 | ) | (13,199 | ) | ||||||||||||||
Net income (loss) from investment affiliates and operating affiliates | — | 123,686 | 123,686 | ||||||||||||||||
Less: Foreign exchange (gains) losses | — | (2,299 | ) | (2,299 | ) | ||||||||||||||
Less: Corporate operating expenses | — | 141,351 | 141,351 | ||||||||||||||||
Contribution from P&C and Corporate and Other | 553,007 | 93,379 | 646,386 | ||||||||||||||||
Less: Interest expense (7) | 89,415 | 89,415 | |||||||||||||||||
Less: Income tax expense | 58,938 | 58,938 | |||||||||||||||||
Less: Non-controlling interests | 26,389 | 26,389 | |||||||||||||||||
Net income (loss) attributable to common shareholders | $ | 471,644 | |||||||||||||||||
Ratios – P&C operations: (8) | |||||||||||||||||||
Loss and loss expense ratio | 67.1 | % | 56.2 | % | 63.2 | % | |||||||||||||
Underwriting expense ratio | 31.7 | % | 33.4 | % | 32.3 | % | |||||||||||||
Combined ratio | 98.8 | % | 89.6 | % | 95.5 | % |
(1) | Corporate and Other includes other items of our revenue and expenditures that are not evaluated at the segment level for reporting purposes. The underwriting profit (loss) and its components within this section are predominantly driven from the Company's run-off life operations. |
(2) | The Company has reflected the amortization of certain fair value adjustments recorded in conjunction with the Catlin Acquisition within the respective segments. |
(3) | Operating expenses of the segments exclude Corporate operating expenses, shown separately. |
(4) | Net investment income - excluding Life Funds Withheld Assets does not include net investment income related to the net results from structured products. |
(5) | The net results from P&C structured products include net investment income and interest expense of $24.6 million and $12.8 million, respectively. |
(6) | Net fee income and other includes operating expenses of $24.6 million from the Company's loss prevention consulting services business. |
(7) | Interest expense excludes interest expense related to structured products recorded in the Insurance and Reinsurance segments. |
(8) | Ratios are based on net premiums earned from P&C operations. |
Six Months Ended June 30, 2017 (U.S. dollars in thousands) | Insurance | Reinsurance | Total P&C | Corporate and Other (1) | Total | ||||||||||||||
Gross premiums written | $ | 5,270,970 | $ | 2,905,066 | $ | 8,176,036 | $ | 115,330 | $ | 8,291,366 | |||||||||
Net premiums written | 3,249,792 | 2,376,409 | 5,626,201 | 6,134 | 5,632,335 | ||||||||||||||
Net premiums earned | 3,287,619 | 1,745,955 | 5,033,574 | 6,134 | 5,039,708 | ||||||||||||||
Less: Net losses and loss expenses (2) | 2,137,450 | 975,089 | 3,112,539 | 14,886 | 3,127,425 | ||||||||||||||
Less: Acquisition costs (2) | 442,391 | 424,473 | 866,864 | 2,589 | 869,453 | ||||||||||||||
Less: Operating expenses (3) | 574,410 | 141,192 | 715,602 | 511 | 716,113 | ||||||||||||||
Underwriting profit (loss) | $ | 133,368 | $ | 205,201 | $ | 338,569 | $ | (11,852 | ) | $ | 326,717 | ||||||||
Net investment income - excluding Life Funds Withheld Assets (4) | 302,125 | 15,384 | 317,509 | ||||||||||||||||
Net investment income - Life Funds Withheld Assets | 64,803 | 64,803 | |||||||||||||||||
Net results from structured products (5) | 4,250 | 1,587 | 5,837 | — | 5,837 | ||||||||||||||
Net fee income and other (6) | (859 | ) | 1,380 | 521 | (303 | ) | 218 | ||||||||||||
Net realized investment gains (losses) - excluding Life Funds Withheld Assets | 61,971 | (8,584 | ) | 53,387 | |||||||||||||||
Net realized investment gains (losses) - Life Funds Withheld Assets | — | 40,527 | 40,527 | ||||||||||||||||
Net realized and unrealized gains (losses) on derivative instruments | — | (7,975 | ) | (7,975 | ) | ||||||||||||||
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets | — | (84,697 | ) | (84,697 | ) | ||||||||||||||
Net income (loss) from investment affiliates and operating affiliates | — | 125,392 | 125,392 | ||||||||||||||||
Less: Foreign exchange (gains) losses | — | (8,979 | ) | (8,979 | ) | ||||||||||||||
Less: Corporate operating expenses | — | 201,035 | 201,035 | ||||||||||||||||
Contribution from P&C and Corporate and Other | 709,023 | (59,361 | ) | 649,662 | |||||||||||||||
Less: Interest expense (7) | 83,672 | 83,672 | |||||||||||||||||
Less: Income tax expense | 42,098 | 42,098 | |||||||||||||||||
Less: Non-controlling interests | 69,429 | 69,429 | |||||||||||||||||
Net income (loss) attributable to common shareholders | $ | 454,463 | |||||||||||||||||
Ratios – P&C operations: (8) | |||||||||||||||||||
Loss and loss expense ratio | 65.0 | % | 55.8 | % | 61.8 | % | |||||||||||||
Underwriting expense ratio | 30.9 | % | 32.4 | % | 31.5 | % | |||||||||||||
Combined ratio | 95.9 | % | 88.2 | % | 93.3 | % |
(1) | Corporate and Other includes other items of our revenue and expenditures that are not evaluated at the segment level for reporting purposes. The underwriting profit (loss) and its components within this section are predominantly driven from the Company's run-off life operations. |
(2) | The Company has reflected the amortization of certain fair value adjustments recorded in conjunction with the Catlin Acquisition within the respective segments. |
(3) | Operating expenses of the segments exclude Corporate operating expenses, shown separately. |
(4) | Net investment income - excluding Life Funds Withheld Assets does not include net investment income related to the net results from structured products. |
(5) | The net results from P&C structured products include net investment income and interest expense of $26.9 million and $21.1 million, respectively. |
(6) | Net fee income and other includes operating expenses of $23.7 million from the Company's loss prevention consulting services business. |
(7) | Interest expense excludes interest expense related to structured products recorded in the Insurance and Reinsurance segments. |
(8) | Ratios are based on net premiums earned from P&C operations. |
Three Months Ended June 30, 2018 (U.S. dollars in thousands) | Insurance | Reinsurance | Corporate and Other | Total | |||||||||||
P&C Operations: | |||||||||||||||
Professional | $ | 335,442 | $ | 63,781 | $ | — | $ | 399,223 | |||||||
Casualty | 512,307 | 155,069 | — | 667,376 | |||||||||||
Property catastrophe | — | 129,727 | — | 129,727 | |||||||||||
Property | 429,472 | 253,796 | — | 683,268 | |||||||||||
Specialty | 470,765 | 47,293 | — | 518,058 | |||||||||||
Other (1) | 369 | 294,643 | — | 295,012 | |||||||||||
Total P&C Operations | $ | 1,748,355 | $ | 944,309 | $ | — | $ | 2,692,664 | |||||||
Corporate and Other: | |||||||||||||||
Run-off Life operations - Other Life | $ | — | $ | — | $ | 2,505 | $ | 2,505 | |||||||
Total Corporate and Other | $ | — | $ | — | $ | 2,505 | $ | 2,505 | |||||||
Total | $ | 1,748,355 | $ | 944,309 | $ | 2,505 | $ | 2,695,169 | |||||||
Three Months Ended June 30, 2017 (U.S. dollars in thousands) | Insurance (2) | Reinsurance | Corporate and Other | Total | |||||||||||
P&C Operations: | |||||||||||||||
Professional | $ | 306,070 | $ | 54,304 | $ | — | $ | 360,374 | |||||||
Casualty | 537,655 | 149,627 | — | 687,282 | |||||||||||
Property catastrophe | — | 164,057 | — | 164,057 | |||||||||||
Property | 406,230 | 286,493 | — | 692,723 | |||||||||||
Specialty | 403,103 | 47,676 | — | 450,779 | |||||||||||
Other (1) | (754 | ) | 159,632 | — | 158,878 | ||||||||||
Total P&C Operations | $ | 1,652,304 | $ | 861,789 | $ | — | $ | 2,514,093 | |||||||
Corporate and Other: | |||||||||||||||
Run-off Life operations - Other Life | $ | — | $ | — | $ | 2,824 | $ | 2,824 | |||||||
Total Corporate and Other | $ | — | $ | — | $ | 2,824 | $ | 2,824 | |||||||
Total | $ | 1,652,304 | $ | 861,789 | $ | 2,824 | $ | 2,516,917 |
(1) | Other within the Insurance segment includes: surety and certain discontinued lines. Other within the Reinsurance segment includes multiline, whole account contracts, credit and surety, accident & health and other lines. |
(2) | Amounts from the prior year have been re-presented to reflect current mapping of underlying lines of business to be consistent with the manner in which they are reflected in the current period. The most significant movements include the following movements out of Other in the Insurance segment: livestock business into Specialty; and credit surety into Casualty. |
Six Months Ended June 30, 2018 (U.S. dollars in thousands) | Insurance | Reinsurance | Corporate and Other | Total | |||||||||||
P&C Operations: | |||||||||||||||
Professional | $ | 656,159 | $ | 128,389 | $ | — | $ | 784,548 | |||||||
Casualty | 993,317 | 305,032 | — | 1,298,349 | |||||||||||
Property catastrophe | — | 266,230 | — | 266,230 | |||||||||||
Property | 836,250 | 511,885 | — | 1,348,135 | |||||||||||
Specialty | 928,415 | 91,554 | — | 1,019,969 | |||||||||||
Other (1) | 3 | 572,611 | — | 572,614 | |||||||||||
Total P&C Operations | $ | 3,414,144 | $ | 1,875,701 | $ | — | $ | 5,289,845 | |||||||
Corporate and Other: | |||||||||||||||
Run-off Life operations - Other Life | $ | — | $ | — | $ | 5,612 | $ | 5,612 | |||||||
Total Corporate and Other | $ | — | $ | — | $ | 5,612 | $ | 5,612 | |||||||
Total | $ | 3,414,144 | $ | 1,875,701 | $ | 5,612 | $ | 5,295,457 | |||||||
Six Months Ended June 30, 2017 (U.S. dollars in thousands) | Insurance (2) | Reinsurance | Corporate and Other | Total | |||||||||||
P&C Operations: | |||||||||||||||
Professional | $ | 611,552 | $ | 107,230 | $ | — | $ | 718,782 | |||||||
Casualty | 1,011,850 | 306,261 | — | 1,318,111 | |||||||||||
Property catastrophe | — | 312,463 | — | 312,463 | |||||||||||
Property | 856,733 | 558,839 | — | 1,415,572 | |||||||||||
Specialty | 805,790 | 84,302 | — | 890,092 | |||||||||||
Other (1) | 1,694 | 376,860 | — | 378,554 | |||||||||||
Total P&C Operations | $ | 3,287,619 | $ | 1,745,955 | $ | — | $ | 5,033,574 | |||||||
Corporate and Other: | |||||||||||||||
Run-off Life operations - Other Life | $ | — | $ | — | $ | 6,134 | $ | 6,134 | |||||||
Total Corporate and Other | $ | — | $ | — | $ | 6,134 | $ | 6,134 | |||||||
Total | $ | 3,287,619 | $ | 1,745,955 | $ | 6,134 | $ | 5,039,708 |
(1) | Other within the Insurance segment includes: surety and certain discontinued lines. Other within the Reinsurance segment includes multiline, whole account contracts, credit and surety, accident & health and other lines. |
(2) | Amounts from the prior year have been re-presented to reflect current mapping of underlying lines of business to be consistent with the manner in which they are reflected in the current period. The most significant movements include the following movements out of Other in the Insurance segment: livestock business into Specialty; and credit surety into Casualty. |
Included in AOCI | |||||||||||||||||||
June 30, 2018 (U.S. dollars in thousands) | Cost or Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Non-credit Related OTTI (1) | ||||||||||||||
Fixed maturities - AFS - Excluding Life Funds Withheld Assets | |||||||||||||||||||
U.S. Government and Government Agencies ("U.S. Government") | $ | 3,984,381 | $ | 23,802 | $ | (47,892 | ) | $ | 3,960,291 | $ | — | ||||||||
U.S. States, municipalities and political subdivisions | 1,810,556 | 51,485 | (3,899 | ) | 1,858,142 | — | |||||||||||||
Non-U.S. Governments | 5,117,027 | 74,297 | (75,464 | ) | 5,115,860 | — | |||||||||||||
Corporate | 10,059,449 | 96,627 | (205,981 | ) | 9,950,095 | (5 | ) | ||||||||||||
Residential mortgage-backed securities ("RMBS") | 4,348,536 | 22,531 | (117,031 | ) | 4,254,036 | (8,158 | ) | ||||||||||||
Commercial mortgage-backed securities ("CMBS") | 1,410,363 | 1,901 | (48,414 | ) | 1,363,850 | (406 | ) | ||||||||||||
Other asset-backed securities | 1,683,029 | 23,438 | (7,324 | ) | 1,699,143 | (29,367 | ) | ||||||||||||
Total fixed maturities - AFS - Excluding Life Funds Withheld Assets | $ | 28,413,341 | $ | 294,081 | $ | (506,005 | ) | $ | 28,201,417 | $ | (37,936 | ) | |||||||
Total short-term investments - Excluding Life Funds Withheld Assets | 623,158 | 652 | (697 | ) | 623,113 | — | |||||||||||||
Total investments - AFS - Excluding Life Funds Withheld Assets | $ | 29,036,499 | $ | 294,733 | $ | (506,702 | ) | $ | 28,824,530 | $ | (37,936 | ) | |||||||
Fixed maturities - AFS - Life Funds Withheld Assets | |||||||||||||||||||
U.S. Government | $ | 8,801 | $ | 2,133 | $ | — | $ | 10,934 | $ | — | |||||||||
Non-U.S. Governments | 347,074 | 120,846 | — | 467,920 | — | ||||||||||||||
Corporate | 719,866 | 149,728 | — | 869,594 | — | ||||||||||||||
RMBS | 412 | 71 | — | 483 | — | ||||||||||||||
CMBS | 97,003 | 22,608 | — | 119,611 | — | ||||||||||||||
Other asset-backed securities | 102,825 | 20,367 | — | 123,192 | — | ||||||||||||||
Total fixed maturities - AFS - Life Funds Withheld Assets | $ | 1,275,981 | $ | 315,753 | $ | — | $ | 1,591,734 | $ | — | |||||||||
Total investments - AFS | $ | 30,312,480 | $ | 610,486 | $ | (506,702 | ) | $ | 30,416,264 | $ | (37,936 | ) |
(1) | Represents the non-credit component of OTTI losses, adjusted for subsequent sales of securities. It does not include the change in fair value subsequent to the impairment measurement date. |
Included in AOCI | |||||||||||||||||||
December 31, 2017 (U.S. dollars in thousands) | Cost or Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Non-credit Related OTTI (1) | ||||||||||||||
Fixed maturities - AFS - Excluding Life Funds Withheld Assets | |||||||||||||||||||
U.S. Government | $ | 4,358,503 | $ | 37,782 | $ | (33,545 | ) | $ | 4,362,740 | $ | — | ||||||||
U.S. States, municipalities and political subdivisions | 1,977,796 | 87,832 | (988 | ) | 2,064,640 | — | |||||||||||||
Non-U.S. Governments | 5,135,526 | 114,918 | (48,863 | ) | 5,201,581 | — | |||||||||||||
Corporate | 9,644,799 | 207,668 | (57,334 | ) | 9,795,133 | (18 | ) | ||||||||||||
RMBS | 4,717,542 | 41,983 | (35,123 | ) | 4,724,402 | (8,795 | ) | ||||||||||||
CMBS | 1,246,406 | 7,468 | (9,857 | ) | 1,244,017 | (817 | ) | ||||||||||||
Other asset-backed securities | 1,488,958 | 26,877 | (6,472 | ) | 1,509,363 | (34,016 | ) | ||||||||||||
Total fixed maturities - AFS - Excluding Life Funds Withheld Assets | $ | 28,569,530 | $ | 524,528 | $ | (192,182 | ) | $ | 28,901,876 | $ | (43,646 | ) | |||||||
Total short-term investments - Excluding Life Funds Withheld Assets | 816,638 | 744 | (1,901 | ) | 815,481 | — | |||||||||||||
Total equity securities - Excluding Life Funds Withheld Assets | 638,455 | 80,679 | (5,167 | ) | 713,967 | — | |||||||||||||
Total investments - AFS - Excluding Life Funds Withheld Assets | $ | 30,024,623 | $ | 605,951 | $ | (199,250 | ) | $ | 30,431,324 | $ | (43,646 | ) | |||||||
Fixed maturities - AFS - Life Funds Withheld Assets | |||||||||||||||||||
U.S. Government | $ | 9,050 | $ | 2,266 | $ | — | $ | 11,316 | $ | — | |||||||||
Non-U.S. Governments | 433,664 | 150,870 | — | 584,534 | — | ||||||||||||||
Corporate | 909,589 | 227,624 | — | 1,137,213 | — | ||||||||||||||
RMBS | 448 | 67 | — | 515 | — | ||||||||||||||
CMBS | 97,356 | 24,916 | — | 122,272 | — | ||||||||||||||
Other asset-backed securities | 137,944 | 33,318 | — | 171,262 | — | ||||||||||||||
Total fixed maturities - AFS - Life Funds Withheld Assets | $ | 1,588,051 | $ | 439,061 | $ | — | $ | 2,027,112 | $ | — | |||||||||
Total investments - AFS | $ | 31,612,674 | $ | 1,045,012 | $ | (199,250 | ) | $ | 32,458,436 | $ | (43,646 | ) |
(1) | Represents the non-credit component of OTTI losses, adjusted for subsequent sales of securities. It does not include the change in fair value subsequent to the impairment measurement date. |
June 30, 2018 (U.S. dollars in thousands) | Amortized Cost | Fair Value | |||||
Fixed maturities trading - Life Funds Withheld Assets | |||||||
U.S. Government | $ | 9,524 | $ | 9,633 | |||
Non-U.S. Governments | 476,698 | 489,276 | |||||
Corporate | 1,428,176 | 1,440,572 | |||||
RMBS | 985 | 919 | |||||
CMBS | 7,227 | 7,411 | |||||
Other asset-backed securities | 42,762 | 42,533 | |||||
Total fixed maturities trading - Life Funds Withheld Assets | $ | 1,965,372 | $ | 1,990,344 | |||
Total short-term investments trading - Life Funds Withheld Assets | $ | 5,777 | $ | 5,788 | |||
Total investments trading - Life Funds Withheld Assets | $ | 1,971,149 | $ | 1,996,132 |
December 31, 2017 (U.S. dollars in thousands) | Amortized Cost | Fair Value | |||||
Fixed maturities trading - Life Funds Withheld Assets | |||||||
U.S. Government | $ | 11,640 | $ | 11,042 | |||
U.S. States, municipalities and political subdivisions | 30 | 31 | |||||
Non-U.S. Governments | 473,849 | 485,171 | |||||
Corporate | 1,412,846 | 1,460,292 | |||||
RMBS | 1,020 | 932 | |||||
CMBS | 7,345 | 7,580 | |||||
Other asset-backed securities | 39,771 | 41,337 | |||||
Total fixed maturities trading - Life Funds Withheld Assets | $ | 1,946,501 | $ | 2,006,385 | |||
Total short-term investments trading - Life Funds Withheld Assets | $ | 14,969 | $ | 14,965 | |||
Total investments trading - Life Funds Withheld Assets | $ | 1,961,470 | $ | 2,021,350 |
June 30, 2018 | December 31, 2017 | ||||||||||||||
(U.S. dollars in thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||
Fixed maturities - AFS - Excluding Life Funds Withheld Assets | |||||||||||||||
Due less than one year | $ | 1,763,966 | $ | 1,764,182 | $ | 1,556,688 | $ | 1,564,360 | |||||||
Due after 1 through 5 years | 12,570,233 | 12,501,952 | 12,243,590 | 12,309,732 | |||||||||||
Due after 5 through 10 years | 5,728,279 | 5,658,654 | 6,268,217 | 6,362,314 | |||||||||||
Due after 10 years | 908,935 | 959,600 | 1,048,129 | 1,187,688 | |||||||||||
$ | 20,971,413 | $ | 20,884,388 | $ | 21,116,624 | $ | 21,424,094 | ||||||||
RMBS | 4,348,536 | 4,254,036 | 4,717,542 | 4,724,402 | |||||||||||
CMBS | 1,410,363 | 1,363,850 | 1,246,406 | 1,244,017 | |||||||||||
Other asset-backed securities | 1,683,029 | 1,699,143 | 1,488,958 | 1,509,363 | |||||||||||
Total mortgage and asset-backed securities | $ | 7,441,928 | $ | 7,317,029 | $ | 7,452,906 | $ | 7,477,782 | |||||||
Total fixed maturities - AFS - Excluding Life Funds Withheld Assets | $ | 28,413,341 | $ | 28,201,417 | $ | 28,569,530 | $ | 28,901,876 | |||||||
Fixed maturities - AFS - Life Funds Withheld Assets | |||||||||||||||
Due less than one year | $ | 47,308 | $ | 48,710 | $ | 47,143 | $ | 49,233 | |||||||
Due after 1 through 5 years | 218,872 | 235,681 | 286,524 | 313,227 | |||||||||||
Due after 5 through 10 years | 146,695 | 174,746 | 168,897 | 205,536 | |||||||||||
Due after 10 years | 662,866 | 889,311 | 849,739 | 1,165,067 | |||||||||||
$ | 1,075,741 | $ | 1,348,448 | $ | 1,352,303 | $ | 1,733,063 | ||||||||
RMBS | 412 | 483 | 448 | 515 | |||||||||||
CMBS | 97,003 | 119,611 | 97,356 | 122,272 | |||||||||||
Other asset-backed securities | 102,825 | 123,192 | 137,944 | 171,262 | |||||||||||
Total mortgage and asset-backed securities | $ | 200,240 | $ | 243,286 | $ | 235,748 | $ | 294,049 | |||||||
Total fixed maturities - AFS - Life Funds Withheld Assets | $ | 1,275,981 | $ | 1,591,734 | $ | 1,588,051 | $ | 2,027,112 | |||||||
Total fixed maturities - AFS | $ | 29,689,322 | $ | 29,793,151 | $ | 30,157,581 | $ | 30,928,988 | |||||||
June 30, 2018 | December 31, 2017 | ||||||||||||||
(U.S. dollars in thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||
Fixed maturities trading - Life Funds Withheld Assets | |||||||||||||||
Due less than one year | $ | 48,626 | $ | 47,686 | $ | 59,962 | $ | 59,605 | |||||||
Due after 1 through 5 years | 519,812 | 522,579 | 486,847 | 492,998 | |||||||||||
Due after 5 through 10 years | 664,273 | 665,029 | 645,573 | 657,093 | |||||||||||
Due after 10 years | 681,687 | 704,187 | 705,983 | 746,840 | |||||||||||
$ | 1,914,398 | $ | 1,939,481 | $ | 1,898,365 | $ | 1,956,536 | ||||||||
RMBS | 985 | 919 | 1,020 | 932 | |||||||||||
CMBS | 7,227 | 7,411 | 7,345 | 7,580 | |||||||||||
Other asset-backed securities | 42,762 | 42,533 | 39,771 | 41,337 | |||||||||||
Total mortgage and asset-backed securities | $ | 50,974 | $ | 50,863 | $ | 48,136 | $ | 49,849 | |||||||
Total fixed maturities trading - Life Funds Withheld Assets | $ | 1,965,372 | $ | 1,990,344 | $ | 1,946,501 | $ | 2,006,385 |
Less than 12 months | Equal to or greater than 12 months | ||||||||||||||
June 30, 2018 (U.S. dollars in thousands) | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||||||||
Fixed maturities and short-term investments - AFS | |||||||||||||||
U.S. Government | $ | 3,206,426 | $ | (35,641 | ) | $ | 597,622 | $ | (12,672 | ) | |||||
U.S. States, municipalities and political subdivisions | 302,220 | (3,496 | ) | 15,479 | (403 | ) | |||||||||
Non-U.S. Governments | 2,050,935 | (30,310 | ) | 693,514 | (45,414 | ) | |||||||||
Corporate | 6,489,744 | (154,483 | ) | 730,166 | (51,514 | ) | |||||||||
RMBS | 2,921,798 | (79,813 | ) | 799,053 | (37,218 | ) | |||||||||
CMBS | 1,081,418 | (38,410 | ) | 128,671 | (10,004 | ) | |||||||||
Other asset-backed securities | 510,637 | (3,572 | ) | 129,668 | (3,752 | ) | |||||||||
Total fixed maturities and short-term investments - AFS | $ | 16,563,178 | $ | (345,725 | ) | $ | 3,094,173 | $ | (160,977 | ) |
Less than 12 months | Equal to or greater than 12 months | ||||||||||||||
December 31, 2017 (U.S. dollars in thousands) | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||||||||
Fixed maturities and short-term investments - AFS | |||||||||||||||
U.S. Government | $ | 2,687,083 | $ | (21,514 | ) | $ | 727,246 | $ | (13,902 | ) | |||||
U.S. States, municipalities and political subdivisions | 88,235 | (622 | ) | 19,583 | (366 | ) | |||||||||
Non-U.S. Governments | 1,527,323 | (14,959 | ) | 560,648 | (33,931 | ) | |||||||||
Corporate | 2,959,416 | (25,757 | ) | 543,973 | (31,577 | ) | |||||||||
RMBS | 2,198,391 | (14,030 | ) | 925,191 | (21,093 | ) | |||||||||
CMBS | 583,656 | (4,117 | ) | 138,065 | (5,740 | ) | |||||||||
Other asset-backed securities | 256,823 | (1,111 | ) | 175,146 | (5,364 | ) | |||||||||
Total fixed maturities and short-term investments - AFS | $ | 10,300,927 | $ | (82,110 | ) | $ | 3,089,852 | $ | (111,973 | ) |
Net Realized Investment Gains (Losses) | Three months ended June 30, | Six months ended June 30, | |||||||||||||
(U.S. dollars in thousands) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Net realized gains (losses) on investments AFS - excluding Life Funds Withheld Assets: (1) | |||||||||||||||
Gross realized gains | $ | 25,288 | $ | 91,771 | $ | 44,618 | $ | 131,168 | |||||||
Gross realized losses | (39,388 | ) | (41,392 | ) | (90,390 | ) | (69,697 | ) | |||||||
OTTI, net of amounts transferred to other comprehensive income | (3,000 | ) | (1,210 | ) | (4,806 | ) | (8,084 | ) | |||||||
Total | $ | (17,100 | ) | $ | 49,169 | $ | (50,578 | ) | $ | 53,387 | |||||
Net realized and change in net unrealized gains (losses) on equity securities - excluding Life Funds Withheld Assets: | |||||||||||||||
Gross realized gains | $ | 4,556 | $ | — | $ | 14,249 | $ | — | |||||||
Gross realized losses | (97 | ) | — | (223 | ) | — | |||||||||
Change in net unrealized gains (losses) on equity securities | 30,735 | — | (14,846 | ) | — | ||||||||||
Total | $ | 35,194 | $ | — | $ | (820 | ) | $ | — | ||||||
Net realized and change in net unrealized gains (losses) on other investments - excluding Life Funds Withheld Assets: | |||||||||||||||
Gross realized gains | $ | 17,208 | $ | — | $ | 20,212 | $ | — | |||||||
Gross realized losses | (1,261 | ) | — | (2,424 | ) | — | |||||||||
Change in net unrealized gains (losses) on other investments | (6,645 | ) | — | 163 | — | ||||||||||
Total | $ | 9,302 | $ | — | $ | 17,951 | $ | — | |||||||
Net realized gains (losses) on investments and change in net unrealized gains (losses) on investments on trading securities - Life Funds Withheld Assets: | |||||||||||||||
Gross realized gains | $ | 67,749 | $ | 30,100 | $ | 80,658 | $ | 65,251 | |||||||
Gross realized losses | (2,444 | ) | (322 | ) | (4,995 | ) | (999 | ) | |||||||
OTTI | — | — | (1,203 | ) | — | ||||||||||
Change in net unrealized gains (losses) on trading securities | $ | (1,896 | ) | $ | (22,319 | ) | $ | (33,563 | ) | $ | (23,725 | ) | |||
Total | $ | 63,409 | $ | 7,459 | $ | 40,897 | $ | 40,527 | |||||||
Total realized investment gains (losses) | $ | 90,805 | $ | 56,628 | $ | 7,450 | $ | 93,914 |
(1) | AFS in the prior year includes net realized gains (losses) on equity securities and other investments. Due to the implementation of ASU 2016-01, as noted in Note 1(b), "Significant Accounting Policies - Recent Accounting Pronouncements," the movements on these investments are now shown separately. |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
(U.S. dollars in thousands) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Fixed maturities: | |||||||||||||||
Credit loss impairments | $ | 748 | $ | 162 | $ | 1,513 | $ | 388 | |||||||
Equities and other investments: | |||||||||||||||
Impaired more than 11 months or more than 50% | — | — | — | 4,975 | |||||||||||
Currency Losses | 2,252 | 1,048 | 3,293 | 2,721 | |||||||||||
OTTI, net of amounts transferred to other comprehensive income | $ | 3,000 | $ | 1,210 | $ | 4,806 | $ | 8,084 |
Credit Loss Impairments | Three months ended June 30, | Six months ended June 30, | |||||||||||||
(U.S. dollars in thousands) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Opening balance at beginning of indicated period | $ | 41,466 | $ | 58,628 | $ | 43,332 | $ | 61,595 | |||||||
Credit loss impairment recognized in the current period on securities not previously impaired | — | — | 590 | 124 | |||||||||||
Credit loss impairments previously recognized on securities that matured or were paid down, prepaid or sold during the period | (436 | ) | (3,071 | ) | (1,592 | ) | (3,907 | ) | |||||||
Additional credit loss impairments recognized in the current period on securities previously impaired | 748 | 162 | 923 | 264 | |||||||||||
Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected | (1,042 | ) | (1,282 | ) | (2,517 | ) | (3,639 | ) | |||||||
Closing balance at end of indicated period | $ | 40,736 | $ | 54,437 | $ | 40,736 | $ | 54,437 |
June 30, 2018 | December 31, 2017 | ||||||||||||||||||||||||||||||
(U.S. dollars in thousands) | Asset Derivative Notional Amount | Asset Derivative Fair Value | Liability Derivative Notional Amount | Liability Derivative Fair Value | Asset Derivative Notional Amount | Asset Derivative Fair Value | Liability Derivative Notional Amount | Liability Derivative Fair Value | |||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||||||
Foreign currency exposure | $ | 953,438 | $ | 60,325 | $ | 166,497 | $ | 4,277 | $ | 580,194 | $ | 5,655 | $ | 339,221 | $ | 3,968 | |||||||||||||||
Total derivatives designated as hedging instruments | $ | 953,438 | $ | 60,325 | $ | 166,497 | $ | 4,277 | $ | 580,194 | $ | 5,655 | $ | 339,221 | $ | 3,968 | |||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||||
Investment Related Derivatives: | |||||||||||||||||||||||||||||||
Interest rate exposure | $ | — | $ | — | $ | 239,109 | $ | 387 | $ | 181,975 | $ | 423 | $ | — | $ | — | |||||||||||||||
Foreign currency exposure | 126,239 | 1,958 | 211,809 | 6,360 | 263,722 | 6,931 | 141,300 | 2,256 | |||||||||||||||||||||||
Credit exposure | 5,000 | 65 | 45,000 | 5,730 | 5,000 | 187 | 45,000 | 6,784 | |||||||||||||||||||||||
Financial market exposure | 34,580 | 2,317 | — | — | 30,001 | 1,271 | 6,998 | 42 |
June 30, 2018 | December 31, 2017 | ||||||||||||||||||||||||||||||
(U.S. dollars in thousands) | Asset Derivative Notional Amount | Asset Derivative Fair Value | Liability Derivative Notional Amount | Liability Derivative Fair Value | Asset Derivative Notional Amount | Asset Derivative Fair Value | Liability Derivative Notional Amount | Liability Derivative Fair Value | |||||||||||||||||||||||
Other Non-Investment Derivatives: | |||||||||||||||||||||||||||||||
Foreign currency exposure | — | — | 24,534 | 468 | — | — | — | — | |||||||||||||||||||||||
Credit exposure | 19,553 | 57 | — | — | — | — | 25,526 | 169 | |||||||||||||||||||||||
Guaranteed minimum income benefit contract | 35,400 | 17,822 | 35,400 | 17,822 | 36,171 | 18,136 | 36,171 | 18,136 | |||||||||||||||||||||||
Modified coinsurance and funds withheld contracts, including life retrocession embedded derivative (1) | 47,351 | — | 4,456,743 | 12,607 | 51,653 | — | 5,014,284 | 31,541 | |||||||||||||||||||||||
Other | — | — | — | — | 16,000 | 191 | — | — | |||||||||||||||||||||||
Total derivatives not designated as hedging instruments | $ | 268,123 | $ | 22,219 | $ | 5,012,595 | $ | 43,374 | $ | 584,522 | $ | 27,139 | $ | 5,269,279 | $ | 58,928 | |||||||||||||||
Total derivatives | $ | 82,544 | $ | 47,651 | $ | 32,794 | $ | 62,896 | |||||||||||||||||||||||
Counterparty netting | (7,627 | ) | (7,627 | ) | (3,579 | ) | (3,579 | ) | |||||||||||||||||||||||
Total derivatives net of counterparty netting | 74,917 | 40,024 | 29,215 | 59,317 | |||||||||||||||||||||||||||
Cash collateral held/paid (2) | (43,420 | ) | (3,089 | ) | (3,920 | ) | (1,312 | ) | |||||||||||||||||||||||
Total derivatives as recorded in the Unaudited Consolidated Balance Sheets | $ | 31,497 | $ | 36,935 | $ | 25,295 | $ | 58,005 |
(1) | The fair value movements in derivative assets and liabilities relating to modified coinsurance and funds withheld contracts are included within the associated asset or liability at each period in the Unaudited Consolidated Balance Sheets. Notional amounts associated with reinsurance agreements under which the Company assumes reinsurance risk are recorded as asset derivative notional amounts. Notional amounts associated with the GreyCastle Life Retro Arrangements and other outward reinsurance contracts under which the Company cedes risk are recorded as liability derivative notional amounts. Included in the liability derivative notional amount at June 30, 2018 is the cumulative net realized and unrealized loss on the life retrocession embedded derivative of $0.9 billion. |
(2) | At June 30, 2018, the Company held cash collateral related to foreign currency derivative positions and certain other derivative positions of $43.4 million for derivatives in an asset position and paid cash collateral of $3.1 million for derivatives in a liability position. At December 31, 2017, the Company held cash collateral related to a foreign currency derivative position and certain other derivative positions of $3.9 million for derivatives in an asset position and paid cash collateral of $1.3 million for derivatives in a liability position. The assets and liabilities related to the net collateral paid or held were recorded as Other assets and Other liabilities within the Unaudited Consolidated Balance Sheets as the collateral and derivative positions are not intended to be settled on a net basis. |
Derivative Instruments Designated as Hedges of a Net Investment in a Foreign Operation - Summary | Three months ended June 30, | Six months ended June 30, | |||||||||||||
(U.S. dollars in thousands) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Weighted average of U.S. dollar equivalent of foreign denominated net assets | $ | 1,119,999 | $ | 1,659,312 | $ | 1,107,105 | $ | 1,668,229 | |||||||
Derivative gains (losses) (1) | 48,099 | (49,370 | ) | $ | 45,776 | $ | (78,767 | ) |
(1) | Derivative gains (losses) from derivative instruments designated as hedges of the net investment in a foreign operation are recorded in the cumulative translation adjustment account within AOCI for each period. |
Net Realized and Unrealized Gains (Losses) on Derivative Instruments | Three months ended June 30, | Six months ended June 30, | |||||||||||||
(U.S. dollars in thousands) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Investment Related Derivatives: | |||||||||||||||
Interest rate exposure | $ | (1,317 | ) | $ | 372 | $ | (320 | ) | $ | 158 | |||||
Foreign currency exposure | 3,378 | (988 | ) | 60 | (1,733 | ) | |||||||||
Credit exposure | (38 | ) | (525 | ) | (79 | ) | (1,379 | ) | |||||||
Financial market exposure | 7,492 | — | 6,144 | 185 | |||||||||||
Other Non-Investment Derivatives: | |||||||||||||||
Foreign currency exposure | — | 34 | — | (1,176 | ) | ||||||||||
Credit exposure | — | 138 | 615 | 770 | |||||||||||
Modified coinsurance and funds withheld contracts, including life retrocession embedded derivative | 6,611 | 238 | 9,103 | (3,687 | ) | ||||||||||
Other | — | (175 | ) | 4,824 | (1,113 | ) | |||||||||
Net realized and unrealized gains (losses) on derivative instruments | $ | 16,126 | $ | (906 | ) | $ | 20,347 | $ | (7,975 | ) | |||||
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets | $ | (36,120 | ) | $ | (34,596 | ) | $ | (13,199 | ) | $ | (84,697 | ) |
Impact of GreyCastle Life Retro Arrangements | Three months ended June 30, | Six months ended June 30, | |||||||||||||
(U.S. dollars in thousands) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Underwriting profit (loss) | $ | — | $ | — | $ | — | $ | — | |||||||
Net investment income - Life Funds Withheld Assets | 30,252 | 31,439 | 60,650 | 64,803 | |||||||||||
Net realized gains (losses) on investments, trading - Life Funds Withheld Assets | 65,305 | 29,778 | 75,663 | 64,252 | |||||||||||
Net unrealized gains (losses) on investments, trading - Life Funds Withheld Assets | (1,896 | ) | (22,319 | ) | (33,563 | ) | (23,725 | ) | |||||||
OTTI - Life Funds Withheld Assets | — | — | (1,203 | ) | — | ||||||||||
Foreign exchange gains (losses) | (14,794 | ) | 14,964 | (4,074 | ) | 18,259 | |||||||||
Other income and expenses | (80 | ) | (19 | ) | (116 | ) | (90 | ) | |||||||
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets | (36,120 | ) | (34,596 | ) | (13,199 | ) | (84,697 | ) | |||||||
Net income (loss) | $ | 42,667 | $ | 19,247 | $ | 84,158 | $ | 38,802 | |||||||
Change in net unrealized gains (losses) on investments AFS - Life Funds Withheld Assets | (99,031 | ) | (11,956 | ) | (134,785 | ) | (32,064 | ) | |||||||
Change in adjustments related to future policy benefit reserves | 42,314 | 3,437 | 46,478 | 8,569 | |||||||||||
Change in cumulative translation adjustment - Life Funds Withheld Assets | 14,050 | (10,728 | ) | 4,149 | (15,307 | ) | |||||||||
Total changes to other comprehensive income as a result of GreyCastle Life Retro Arrangements | $ | (42,667 | ) | $ | (19,247 | ) | $ | (84,158 | ) | $ | (38,802 | ) | |||
Comprehensive income (loss) | $ | — | $ | — | $ | — | $ | — |
Settlement of Fair Value Hedges - Summary | Fair Value Hedges - Structured Indemnity Contracts June 30, | ||||||
(U.S. dollars in thousands, except years) | 2018 | 2017 | |||||
Cumulative reduction to interest expense | $ | 125,935 | $ | 117,818 | |||
Remaining balance | $ | 107,260 | $ | 115,377 | |||
Weighted average years remaining to maturity | 18.0 | 19.4 |
Contingent Credit Features - Summary: (U.S. dollars in thousands) | June 30, 2018 | December 31, 2017 | |||||
Aggregate fair value of derivative agreements with downgrade provisions in a net liability position | $ | — | $ | 7,464 | |||
Collateral posted to counterparty | $ | — | $ | 40 |
June 30, 2018 (U.S. dollars in thousands) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | Counterparty Netting | Balance at June 30, 2018 | ||||||||||||||
Assets | |||||||||||||||||||
Fixed maturities - AFS - Excluding Life Funds Withheld Assets | |||||||||||||||||||
U.S. Government | $ | — | $ | 3,955,271 | $ | 5,020 | $ | — | $ | 3,960,291 | |||||||||
U.S. States, municipalities and political subdivisions | — | 1,858,142 | — | — | 1,858,142 | ||||||||||||||
Non-U.S. Governments | — | 5,115,860 | — | — | 5,115,860 | ||||||||||||||
Corporate | — | 9,948,048 | 2,047 | — | 9,950,095 | ||||||||||||||
RMBS | — | 4,248,089 | 5,947 | — | 4,254,036 | ||||||||||||||
CMBS | — | 1,363,850 | — | — | 1,363,850 | ||||||||||||||
Other asset-backed securities | — | 1,699,143 | — | — | 1,699,143 | ||||||||||||||
Total fixed maturities - AFS - Excluding Funds Withheld Assets, at fair value | $ | — | $ | 28,188,403 | $ | 13,014 | $ | — | $ | 28,201,417 | |||||||||
Short-term investments, at fair value (1) | — | 623,113 | — | — | 623,113 | ||||||||||||||
Total investments AFS - Excluding Funds Withheld Assets | $ | — | $ | 28,811,516 | $ | 13,014 | $ | — | $ | 28,824,530 | |||||||||
Fixed maturities - Life Funds Withheld Assets | |||||||||||||||||||
U.S. Government | $ | — | $ | 10,934 | $ | — | $ | — | $ | 10,934 | |||||||||
Non-U.S. Governments | — | 467,920 | — | — | 467,920 | ||||||||||||||
Corporate | — | 869,594 | — | — | 869,594 | ||||||||||||||
RMBS | — | 483 | — | — | 483 | ||||||||||||||
CMBS | — | 119,611 | — | — | 119,611 | ||||||||||||||
Other asset-backed securities | — | 123,192 | — | — | 123,192 | ||||||||||||||
Total fixed maturities - AFS - Life Funds Withheld Assets, at fair value | $ | — | $ | 1,591,734 | $ | — | $ | — | $ | 1,591,734 | |||||||||
Total investments - AFS, at fair value | $ | — | $ | 30,403,250 | $ | 13,014 | $ | — | $ | 30,416,264 | |||||||||
Fixed maturities trading | |||||||||||||||||||
U.S. Government | $ | — | $ | 9,633 | $ | — | $ | — | $ | 9,633 | |||||||||
Non-U.S. Governments | — | 489,276 | — | — | 489,276 | ||||||||||||||
Corporate | — | 1,440,572 | — | — | 1,440,572 | ||||||||||||||
RMBS | — | 919 | — | — | 919 | ||||||||||||||
CMBS | — | 7,411 | — | — | 7,411 | ||||||||||||||
Other asset-backed securities | — | 42,533 | — | — | 42,533 | ||||||||||||||
Total fixed maturities trading - Life Funds Withheld Assets, at fair value | $ | — | $ | 1,990,344 | $ | — | $ | — | $ | 1,990,344 | |||||||||
Short-term investments trading, at fair value (1) | — | 5,788 | — | — | 5,788 | ||||||||||||||
Total investments trading | $ | — | $ | 1,996,132 | $ | — | $ | — | $ | 1,996,132 |
June 30, 2018 (U.S. dollars in thousands) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | Counterparty Netting | Balance at June 30, 2018 | ||||||||||||||
Cash equivalents (2) | 380,587 | 1,080,353 | — | — | 1,460,940 | ||||||||||||||
Cash equivalents - Life Funds Withheld Assets (2) | — | 64,885 | — | — | 64,885 | ||||||||||||||
Equity securities, at fair value | 492,472 | 152,239 | — | — | 644,711 | ||||||||||||||
Other investments (3) | — | 533,090 | 218,222 | — | 751,312 | ||||||||||||||
Other assets (4) | — | 64,665 | 17,879 | (7,627 | ) | 74,917 | |||||||||||||
Total assets accounted for at fair value | $ | 873,059 | $ | 34,294,614 | $ | 249,115 | $ | (7,627 | ) | $ | 35,409,161 | ||||||||
Liabilities | |||||||||||||||||||
Funds withheld on GreyCastle Life Retro Arrangements (net of future policy benefit reserves recoverable) (5) | $ | — | $ | 889,813 | $ | — | $ | — | $ | 889,813 | |||||||||
Other liabilities (4) | — | 29,829 | 17,822 | (7,627 | ) | 40,024 | |||||||||||||
Total liabilities accounted for at fair value | $ | — | $ | 919,642 | $ | 17,822 | $ | (7,627 | ) | $ | 929,837 |
December 31, 2017 (U.S. dollars in thousands) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | Counterparty Netting | Balance at December 31, 2017 | ||||||||||||||
Assets | |||||||||||||||||||
Fixed maturities - AFS - Excluding Life Funds Withheld Assets | |||||||||||||||||||
U.S. Government | $ | — | $ | 4,344,450 | $ | 18,290 | $ | — | $ | 4,362,740 | |||||||||
U.S. States, municipalities and political subdivisions | — | 2,064,640 | — | — | 2,064,640 | ||||||||||||||
Non-U.S. Governments | — | 5,201,581 | — | — | 5,201,581 | ||||||||||||||
Corporate | — | 9,793,841 | 1,292 | — | 9,795,133 | ||||||||||||||
RMBS | — | 4,724,402 | — | — | 4,724,402 | ||||||||||||||
CMBS | — | 1,244,017 | — | — | 1,244,017 | ||||||||||||||
Other asset-backed securities | — | 1,504,131 | 5,232 | — | 1,509,363 | ||||||||||||||
Total fixed maturities - AFS - Excluding Funds Withheld Assets, at fair value | $ | — | $ | 28,877,062 | $ | 24,814 | $ | — | $ | 28,901,876 | |||||||||
Short-term investments, at fair value (1) | — | 815,481 | — | — | 815,481 | ||||||||||||||
Equity securities, at fair value | 557,510 | 156,457 | — | — | 713,967 | ||||||||||||||
Total investments AFS - Excluding Funds Withheld Assets | $ | 557,510 | $ | 29,849,000 | $ | 24,814 | $ | — | $ | 30,431,324 | |||||||||
Fixed maturities - Life Funds Withheld Assets | |||||||||||||||||||
U.S. Government | $ | — | $ | 11,316 | $ | — | $ | — | $ | 11,316 | |||||||||
Non-U.S. Governments | — | 584,534 | — | — | 584,534 | ||||||||||||||
Corporate | — | 1,137,213 | — | — | 1,137,213 | ||||||||||||||
RMBS | — | 515 | — | — | 515 | ||||||||||||||
CMBS | — | 122,272 | — | — | 122,272 | ||||||||||||||
Other asset-backed securities | — | 171,262 | — | — | 171,262 | ||||||||||||||
Total fixed maturities - AFS - Life Funds Withheld Assets, at fair value | $ | — | $ | 2,027,112 | $ | — | $ | — | $ | 2,027,112 | |||||||||
Total investments - AFS, at fair value | $ | 557,510 | $ | 31,876,112 | $ | 24,814 | $ | — | $ | 32,458,436 |
December 31, 2017 (U.S. dollars in thousands) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | Counterparty Netting | Balance at December 31, 2017 | ||||||||||||||
Fixed maturities trading | |||||||||||||||||||
U.S. Government | $ | — | $ | 11,042 | $ | — | $ | — | $ | 11,042 | |||||||||
U.S. States, municipalities and political subdivisions | — | 31 | — | — | 31 | ||||||||||||||
Non-U.S. Governments | — | 485,171 | — | — | 485,171 | ||||||||||||||
Corporate | — | 1,460,292 | — | — | 1,460,292 | ||||||||||||||
RMBS | — | 932 | — | — | 932 | ||||||||||||||
CMBS | — | 7,580 | — | — | 7,580 | ||||||||||||||
Other asset-backed securities | — | 41,337 | — | — | 41,337 | ||||||||||||||
Total fixed maturities trading - Life Funds Withheld Assets, at fair value | $ | — | $ | 2,006,385 | $ | — | $ | — | $ | 2,006,385 | |||||||||
Short-term investments trading, at fair value (1) | — | 14,965 | — | — | 14,965 | ||||||||||||||
Total investments trading | $ | — | $ | 2,021,350 | $ | — | $ | — | $ | 2,021,350 | |||||||||
Cash equivalents (2) | 279,224 | 1,271,483 | — | — | 1,550,707 | ||||||||||||||
Cash equivalents - Life Funds Withheld Assets (2) | — | 67,982 | — | — | 67,982 | ||||||||||||||
Other investments (3) | — | 570,931 | 221,708 | — | 792,639 | ||||||||||||||
Other assets (4) | — | 14,467 | 18,327 | (3,579 | ) | 29,215 | |||||||||||||
Total assets accounted for at fair value | $ | 836,734 | $ | 35,822,325 | $ | 264,849 | $ | (3,579 | ) | $ | 36,920,329 | ||||||||
Liabilities | |||||||||||||||||||
Funds withheld on GreyCastle Life Retro Arrangements (net of future policy benefit reserves recoverable) (5) | $ | — | $ | 1,112,969 | $ | — | $ | — | $ | 1,112,969 | |||||||||
Other liabilities (4) | — | 44,591 | 18,305 | (3,579 | ) | 59,317 | |||||||||||||
Total liabilities accounted for at fair value | $ | — | $ | 1,157,560 | $ | 18,305 | $ | (3,579 | ) | $ | 1,172,286 |
(1) | Short-term investments consist primarily of U.S. and Non-U.S. Government securities and Corporate securities. |
(2) | Cash equivalents balances subject to fair value measurement include certificates of deposit and money market funds. Operating cash balances are not subject to recurring fair value measurement guidance. |
(3) | Excluded from Other Investments are certain investments that are measured using net asset value as a practical expedient in the amount of $227.2 million and $198.2 million at June 30, 2018 and December 31, 2017, respectively. Under GAAP, these investments are excluded from the fair value hierarchy table. In addition, the Other investments balance excludes loans held at amortized cost, which totaled $173.2 million at June 30, 2018 and $173.0 million at December 31, 2017. For further information, see Item 8, Note 6, "Other Investments," to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. |
(4) | Other assets and other liabilities include derivative instruments. The derivative balances included in each category are reported gross of cash collateral by level with a counterparty netting adjustment presented separately in the Counterparty Netting column. The fair values of the individual derivative contracts are reported gross in their respective levels based on the fair value hierarchy. For further details regarding derivative fair values and associated collateral received or paid, see Note 5, "Derivative Instruments." |
(5) | Funds withheld on GreyCastle Life Retro Arrangements (net of future policy benefit reserves recoverable) include balances related to the life retrocession embedded derivative, under which all investment results associated with the Life Funds Withheld Assets related to the GreyCastle Life Retro Arrangements described in Note 1(a), "Significant Accounting Policies - Basis of Preparation and Consolidation," accrue to the benefit of GCLR. |
Level 3 Assets and Liabilities - Three Months Ended June 30, 2018 | |||||||||||||||||||||||||||||||||||
(U.S. dollars in thousands) | Balance, beginning of period | Realized gains (losses) | Movement in unrealized gains (losses) | Purchases and Issuances | Sales | Settlements | Net transfers into (out of) Level 3 (1) | Balance, end of period | Movement in total gains (losses) relating to investments still held | ||||||||||||||||||||||||||
U.S. Government | $ | 5,034 | $ | — | $ | (14 | ) | $ | — | $ | — | $ | — | $ | — | $ | 5,020 | $ | (14 | ) | |||||||||||||||
Corporate | 2,128 | — | 11 | — | — | (92 | ) | — | 2,047 | 11 | |||||||||||||||||||||||||
RMBS | 6,937 | — | (10 | ) | — | — | — | (980 | ) | 5,947 | (10 | ) | |||||||||||||||||||||||
Other asset-backed securities | 19,737 | — | — | — | — | — | (19,737 | ) | — | — | |||||||||||||||||||||||||
Other investments | 231,368 | 8,046 | (5,116 | ) | 7,343 | — | (12,724 | ) | (10,695 | ) | 218,222 | (4,710 | ) | ||||||||||||||||||||||
Derivative Contracts - Net | 334 | — | (277 | ) | — | — | — | — | 57 | (277 | ) | ||||||||||||||||||||||||
Total | $ | 265,538 | $ | 8,046 | $ | (5,406 | ) | $ | 7,343 | $ | — | $ | (12,816 | ) | $ | (31,412 | ) | $ | 231,293 | $ | (5,000 | ) | |||||||||||||
Level 3 Assets and Liabilities - Three Months Ended June 30, 2017 | |||||||||||||||||||||||||||||||||||
(U.S. dollars in thousands) | Balance, beginning of period | Realized gains (losses) | Movement in unrealized gains (losses) | Purchases and Issuances | Sales | Settlements | Net transfers into (out of) Level 3 (1) | Balance, end of period | Movement in total gains (losses) relating to investments still held | ||||||||||||||||||||||||||
U.S. Government | $ | 19,308 | $ | (19 | ) | $ | 81 | $ | — | $ | — | $ | (311 | ) | $ | — | $ | 19,059 | $ | 96 | |||||||||||||||
Corporate | 9,899 | 27 | (30 | ) | — | (9,730 | ) | — | 1,018 | 1,184 | (31 | ) | |||||||||||||||||||||||
RMBS | 3,381 | — | — | — | — | — | (3,381 | ) | — | — | |||||||||||||||||||||||||
CMBS | 101 | 21 | (20 | ) | — | — | (24 | ) | — | 78 | (20 | ) | |||||||||||||||||||||||
Other asset-backed securities | 3,950 | 56 | 1,010 | 6,890 | (1,446 | ) | (240 | ) | (3,329 | ) | 6,891 | — | |||||||||||||||||||||||
Short-term investments | 11,665 | — | — | — | (11,662 | ) | — | — | 3 | — | |||||||||||||||||||||||||
Other investments | 203,965 | 5,067 | 9,178 | 11,297 | (2,207 | ) | (6,952 | ) | — | 220,348 | 3,858 | ||||||||||||||||||||||||
Derivative Contracts - Net | 163 | — | 377 | — | — | — | — | 540 | 377 | ||||||||||||||||||||||||||
Total | $ | 252,432 | $ | 5,152 | $ | 10,596 | $ | 18,187 | $ | (25,045 | ) | $ | (7,527 | ) | $ | (5,692 | ) | $ | 248,103 | $ | 4,280 |
(1) | Net transfers include both movement in and movement out of Level 3. Corporate for the three months ended June 30, 2017, includes $1.1 million of incoming transfers partially offset by $0.1 million of outgoing transfers. Other asset-backed securities, for the three months ended June 30, 2017, includes $6.7 million of outgoing transfers partially offset by $3.4 million of incoming transfers. |
Level 3 Assets and Liabilities - Six Months Ended June 30, 2018 | |||||||||||||||||||||||||||||||||||
(U.S. dollars in thousands) | Balance, beginning of period | Realized gains (losses) | Movement in unrealized gains (losses) | Purchases and Issuances | Sales | Settlements | Net transfers into (out of) Level 3 (1) | Balance, end of period | Movement in total gains (losses) relating to investments still held | ||||||||||||||||||||||||||
U.S. Government | $ | 18,290 | $ | (354 | ) | $ | 100 | $ | — | $ | (13,016 | ) | $ | — | $ | — | $ | 5,020 | $ | (50 | ) | ||||||||||||||
Corporate | 1,292 | — | 54 | — | — | (193 | ) | 894 | 2,047 | 54 | |||||||||||||||||||||||||
RMBS | — | — | (10 | ) | 980 | — | — | 4,977 | 5,947 | (10 | ) | ||||||||||||||||||||||||
Other asset-backed securities | 5,232 | — | (28 | ) | 15,407 | — | (874 | ) | (19,737 | ) | — | — | |||||||||||||||||||||||
Other investments | 221,708 | 8,893 | 75 | 21,623 | — | (23,382 | ) | (10,695 | ) | 218,222 | 628 | ||||||||||||||||||||||||
Derivative Contracts - Net | 22 | — | 35 | — | — | — | — | 57 | 35 | ||||||||||||||||||||||||||
Total | $ | 246,544 | $ | 8,539 | $ | 226 | $ | 38,010 | $ | (13,016 | ) | $ | (24,449 | ) | $ | (24,561 | ) | $ | 231,293 | $ | 657 | ||||||||||||||
Level 3 Assets and Liabilities - Six Months Ended June 30, 2017 | |||||||||||||||||||||||||||||||||||
(U.S. dollars in thousands) | Balance, beginning of period | Realized gains (losses) | Movement in unrealized gains (losses) | Purchases and Issuances | Sales | Settlements | Net transfers into (out of) Level 3 (1) | Balance, end of period | Movement in total gains (losses) relating to investments still held | ||||||||||||||||||||||||||
U.S. Government | $ | 24,751 | $ | (38 | ) | $ | (274 | ) | $ | — | $ | — | $ | (622 | ) | $ | (4,758 | ) | $ | 19,059 | $ | (278 | ) | ||||||||||||
Corporate | 20,085 | 27 | (19 | ) | — | (20,014 | ) | (31 | ) | 1,136 | 1,184 | (32 | ) | ||||||||||||||||||||||
RMBS | — | 17 | (526 | ) | — | — | (173 | ) | 682 | — | — | ||||||||||||||||||||||||
CMBS | 99 | 21 | (18 | ) | — | — | (24 | ) | — | 78 | (18 | ) | |||||||||||||||||||||||
Other asset-backed securities | 1,131 | 86 | 1,111 | 6,890 | (1,446 | ) | (286 | ) | (595 | ) | 6,891 | — | |||||||||||||||||||||||
Short-term investments | — | — | — | 11,693 | (11,662 | ) | (28 | ) | — | 3 | — | ||||||||||||||||||||||||
Other investments | 205,528 | (474 | ) | 16,280 | 16,279 | (2,207 | ) | (12,349 | ) | (2,709 | ) | 220,348 | 10,201 | ||||||||||||||||||||||
Derivative Contracts - Net | 2 | — | 538 | — | — | — | — | 540 | 538 | ||||||||||||||||||||||||||
Total | $ | 251,596 | $ | (361 | ) | $ | 17,092 | $ | 34,862 | $ | (35,329 | ) | $ | (13,513 | ) | $ | (6,244 | ) | $ | 248,103 | $ | 10,411 |
(1) | Net transfers include both movement in and movement out of Level 3. RMBS for the six months ended June 30, 2018, includes $6.0 million of incoming transfers partially offset by $1.0 million of outgoing transfers. Corporate for the six months ended June 30, 2017, includes $1.2 million of incoming transfers partially offset by $0.1 million of outgoing transfers. RMBS for the six months ended June 30, 2017, includes $4.1 million of incoming transfers partially offset by $3.4 million of outgoing transfers. Other asset-backed securities, for the six months ended June 30, 2017, includes $6.7 million of outgoing transfers partially offset by $6.1 million of incoming transfers. |
June 30, 2018 | December 31, 2017 | ||||||||||||||
(U.S. dollars in thousands) | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||
Financial Assets - Other investments | $ | 173,224 | $ | 181,551 | $ | 172,982 | $ | 182,222 | |||||||
Deposit liabilities | $ | 940,557 | $ | 1,144,027 | $ | 1,042,677 | $ | 1,266,682 | |||||||
Notes payable and debt | 3,217,123 | 3,393,394 | 3,220,769 | 3,507,108 | |||||||||||
Financial Liabilities | $ | 4,157,680 | $ | 4,537,421 | $ | 4,263,446 | $ | 4,773,790 |
(U.S. dollars in thousands) | Goodwill | Intangible assets with an indefinite life | Intangible assets with a definite life | Total | |||||||||||
Balance at December 31, 2017 | $ | 1,234,150 | $ | 699,014 | $ | 292,587 | $ | 2,225,751 | |||||||
Amortization | — | — | (10,091 | ) | (10,091 | ) | |||||||||
Foreign Currency Translation | (6,448 | ) | (5,608 | ) | (2,519 | ) | (14,575 | ) | |||||||
Balance at June 30, 2018 | $ | 1,227,702 | $ | 693,406 | $ | 279,977 | $ | 2,201,085 |
(U.S. dollars in thousands) | 2018 | 2017 | |||||
Unpaid losses and loss expenses at the beginning of the year | $ | 29,696,779 | $ | 25,939,571 | |||
Unpaid losses and loss expenses recoverable at the beginning of the year (1) | 7,239,446 | 5,480,300 | |||||
Net unpaid losses and loss expenses at the beginning of the year | $ | 22,457,333 | $ | 20,459,271 | |||
Increase (decrease) in net losses and loss expenses incurred in respect of losses occurring in: | |||||||
Current year | 3,361,365 | 3,175,267 | |||||
Prior year | (18,050 | ) | (62,728 | ) | |||
Total net incurred losses and loss expenses | $ | 3,343,315 | $ | 3,112,539 | |||
Foreign exchange and other | (107,166 | ) | 292,040 | ||||
Less net losses and loss expenses paid in respect of losses occurring in: | |||||||
Current year | 277,656 | 343,934 | |||||
Prior year | 3,432,843 | 2,547,073 | |||||
Total net paid losses | $ | 3,710,499 | $ | 2,891,007 | |||
Net unpaid losses and loss expenses at June 30 | 21,982,983 | 20,972,843 | |||||
Unpaid losses and loss expenses recoverable at June 30 (1) | 7,198,164 | 5,849,503 | |||||
Unpaid losses and loss expenses at June 30 | $ | 29,181,147 | $ | 26,822,346 |
(1) | P&C business only, net of provision for uncollectible reinsurance. |
Six Months Ended | |||||||
June 30, | |||||||
(U.S. dollars in thousands) | 2018 | 2017 | |||||
Insurance segment | $ | 46,588 | $ | (21,869 | ) | ||
Reinsurance segment | (64,638 | ) | (40,859 | ) | |||
Total | $ | (18,050 | ) | $ | (62,728 | ) |
Six Months Ended | |||||||
June 30, | |||||||
(U.S. dollars in thousands) | 2018 | 2017 | |||||
Professional | $ | (3,016 | ) | $ | (56,390 | ) | |
Casualty | (33,921 | ) | (81,985 | ) | |||
Property | 70,508 | 99,847 | |||||
Specialty | 13,017 | 16,659 | |||||
Total | $ | 46,588 | $ | (21,869 | ) |
• | For casualty lines, net prior year development was $33.9 million favorable. This was driven by better than expected loss experience reported in the 2015 and prior years for international casualty and across all years for global risk management. This was partially offset by deteriorations in the excess and surplus portfolio to recognize changes in the composition of the business in recent years. |
• | For property lines, net prior year development was $70.5 million unfavorable. This was driven by significant large loss experience on the 2017 accident year, deteriorations in both catastrophe and non-catastrophe losses for the London wholesale property book and worse than expected attritional experience reported on the international open market and energy property portfolios. |
• | For specialty lines, net prior year development was $13.0 million unfavorable. This was driven by worse than expected attritional loss experience reported in marine, aerospace, fine art and specie and crisis management portfolios, predominantly on the 2017 accident year. |
Six Months Ended | |||||||
June 30, | |||||||
(U.S. dollars in thousands) | 2018 | 2017 | |||||
Property and other short-tail lines | $ | (62,883 | ) | $ | (110,025 | ) | |
Casualty and other long-tail lines | (1,755 | ) | 69,166 | ||||
Total | $ | (64,638 | ) | $ | (40,859 | ) |
• | Net favorable prior year development for the short-tail lines totaled $62.9 million primarily due to better than expected development on attritional losses on the Property, Marine and Crop books and the release of the general catastrophe reserves held at the end of the prior year, partially offset by strengthening on older catastrophe and large losses. |
• | Net favorable prior year development for the long-tail lines totaled $1.8 million and details of the significant components are as follows: |
• | For casualty lines, net prior year development was $9.8 million unfavorable mainly driven by worse than expected attritional experience on the London professional book and EMEA motor book being partially offset by better than expected attritional experience on the North America book. |
• | For other lines, net prior year development was $11.5 million favorable due to favorable experience on attritional losses primarily related to the credit and surety book. |
(U.S. dollars in thousands) | June 30, 2018 | December 31, 2017 | |||||
Outstanding (1) | Outstanding (1) | ||||||
Debt Issuance: | |||||||
$300 million, 2.30% Senior Notes due December 2018 | $ | 299,692 | $ | 299,357 | |||
$400 million, 5.75% Senior Notes due October 2021 | 398,600 | 398,384 | |||||
$350 million, 6.375% Senior Notes due November 2024 | 349,303 | 349,248 | |||||
$500 million, 4.45% Subordinated Notes due March 2025 | 494,542 | 494,138 | |||||
$325 million, 6.25% Senior Notes due May 2027 | 323,610 | 323,531 | |||||
$300 million, 5.25% Senior Notes due December 2043 | 296,626 | 296,560 | |||||
$500 million, 5.5% Subordinated Notes due March 2045 (2) | 473,024 | 472,832 | |||||
€500 million, 3.25% Subordinated Notes due June 2047 (3) | 568,066 | 586,719 | |||||
Other debt | 13,660 | — | |||||
Total debt carrying value | $ | 3,217,123 | $ | 3,220,769 |
(1) | "Outstanding" data represent June 30, 2018 and December 31, 2017 accreted values. |
(2) | On July 7, 2017, the Company repurchased and canceled $16.7 million of the original debt issuance. See below for further details. |
(3) | This issuance carries a fixed coupon of 3.25% for a period of ten years, then a floating rate of three-month EURIBOR plus 2.90% from (and including) June 29, 2027 through maturity. The outstanding amount is subject to movement due to foreign exchange. |
(U.S. dollars in thousands) | June 30, 2018 | December 31, 2017 | |||||||||||||
Facility Name: | Commitment | In Use/ Outstanding | Commitment | In Use/ Outstanding | |||||||||||
2016 Credit Agricole Facility I | 125,000 | 125,000 | 125,000 | 125,000 | |||||||||||
2016 Credit Agricole Facility II | 125,000 | 125,000 | 125,000 | 125,000 | |||||||||||
2017 Commonwealth Bank Facility | 215,000 | 215,000 | 215,000 | 215,000 | |||||||||||
2017 Credit Suisse Facility | 100,000 | 100,000 | 100,000 | 100,000 | |||||||||||
FAL Facility I | 125,000 | 125,000 | 125,000 | 125,000 | |||||||||||
FAL Facility II | 125,000 | 125,000 | 125,000 | 125,000 | |||||||||||
FAL Facility III | 125,000 | 125,000 | 125,000 | 125,000 | |||||||||||
FAL Facility IV | 125,000 | 125,000 | 125,000 | 125,000 | |||||||||||
Syndicated Unsecured Facility | 750,000 | 76,097 | 750,000 | 2,000 | |||||||||||
2017 Commerzbank Facility | 100,000 | 100,000 | 100,000 | 100,000 | |||||||||||
Total unsecured LOC facilities | $ | 1,915,000 | $ | 1,241,097 | $ | 1,915,000 | $ | 1,167,000 | |||||||
Facilities collateralized by certain investment assets | 1,604,938 | 1,573,413 | 1,477,986 | 1,382,226 | |||||||||||
Total LOC facilities | $ | 3,519,938 | $ | 2,814,510 | $ | 3,392,986 | $ | 2,549,226 | |||||||
Percentage of facilities collateralized by certain investment assets | 55.9 | % | 54.2 | % |
(U.S. dollars in thousands) | Three months ended June 30, | Six months ended June 30, | |||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Reported net premiums | $ | 50,024 | $ | 44,042 | $ | 65,602 | $ | 65,757 | |||||||
Reported net losses | $ | 27,570 | $ | 20,558 | $ | 39,289 | $ | 31,808 | |||||||
Reported net acquisition costs | $ | 21,946 | $ | 18,741 | $ | 27,534 | $ | 27,955 |
(U.S. dollars in thousands) | June 30, 2018 | December 31, 2017 | |||||
Total net assets | $ | 225,220 | $ | 242,605 | |||
Non-controlling interests | 116,485 | 134,139 | |||||
Total net assets attributable to XL | $ | 108,735 | $ | 108,466 |
Dividend yield | 2.00 | % |
Risk free interest rate | 2.71 | % |
Volatility | 27.04 | % |
Expected lives | 6.0 years |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(In thousands, except per share amounts) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Basic earnings per common share & common share equivalents outstanding: | |||||||||||||||
Net income (loss) attributable to common shareholders | $ | 318,996 | $ | 301,620 | $ | 471,644 | $ | 454,463 | |||||||
Weighted average common shares outstanding - basic | 258,375 | 260,990 | 257,653 | 263,327 | |||||||||||
Basic earnings per common share & common share equivalents outstanding | $ | 1.23 | $ | 1.16 | $ | 1.83 | $ | 1.73 | |||||||
Diluted earnings per common share & common share equivalents outstanding: | |||||||||||||||
Weighted average common shares outstanding - basic | 258,375 | 260,990 | 257,653 | 263,327 | |||||||||||
Impact of share-based compensation | 5,447 | 3,953 | 4,957 | 3,952 | |||||||||||
Weighted average common shares outstanding - diluted | 263,822 | 264,943 | 262,610 | 267,279 | |||||||||||
Diluted earnings per common share & common share equivalents outstanding | $ | 1.21 | $ | 1.14 | $ | 1.80 | $ | 1.70 | |||||||
Dividends per common share | $ | 0.22 | $ | 0.22 | $ | 0.44 | $ | 0.44 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
(In millions) | 2018 | 2017 | 2018 | 2017 | |||||||
Common shares available for issuance under share-based compensation plans | — | 1.2 | 0.2 | 1.3 |
Three Months Ended June 30, 2018 (U.S. dollars in thousands) | Unrealized Gains (Losses) on Investments (1) | OTTI Losses Recognized in AOCI | Foreign Currency Translation Adjustments | Underfunded Pension Liability | Cash Flow Hedge | Total | |||||||||||||||||
Balance, beginning of period, net of tax | $ | 294,809 | $ | (39,911 | ) | $ | 80,394 | $ | (24,783 | ) | $ | 1,746 | $ | 312,255 | |||||||||
OCI before reclassifications | (166,281 | ) | — | (37,176 | ) | 466 | — | (202,991 | ) | ||||||||||||||
Amounts reclassified from AOCI | (83,386 | ) | 1,997 | — | — | (47 | ) | (81,436 | ) | ||||||||||||||
Tax benefit (expense) | 14,610 | (1 | ) | 8,880 | (53 | ) | — | 23,436 | |||||||||||||||
Net current period OCI - net of tax | (235,057 | ) | 1,996 | (28,296 | ) | 413 | (47 | ) | (260,991 | ) | |||||||||||||
Balance, end of period, net of tax | $ | 59,752 | $ | (37,915 | ) | $ | 52,098 | $ | (24,370 | ) | $ | 1,699 | $ | 51,264 | |||||||||
Three Months Ended June 30, 2017 (U.S. dollars in thousands) | |||||||||||||||||||||||
Balance, beginning of period, net of tax | $ | 816,882 | $ | (49,510 | ) | $ | 100,908 | $ | (25,244 | ) | $ | 1,938 | $ | 844,974 | |||||||||
OCI before reclassifications | 179,229 | — | 7,028 | (539 | ) | — | 185,718 | ||||||||||||||||
Amounts reclassified from AOCI | (94,591 | ) | 1,511 | — | — | (48 | ) | (93,128 | ) | ||||||||||||||
Tax benefit (expense) | (8,228 | ) | (14 | ) | (8,120 | ) | (37 | ) | — | (16,399 | ) | ||||||||||||
Net current period OCI - net of tax | 76,410 | 1,497 | (1,092 | ) | (576 | ) | (48 | ) | 76,191 | ||||||||||||||
Balance, end of period, net of tax | $ | 893,292 | $ | (48,013 | ) | $ | 99,816 | $ | (25,820 | ) | $ | 1,890 | $ | 921,165 | |||||||||
Six Months Ended June 30, 2018 (U.S. dollars in thousands) | |||||||||||||||||||||||
Balance, beginning of period, net of tax | $ | 870,478 | $ | (43,527 | ) | $ | 83,042 | $ | (22,356 | ) | $ | 1,794 | $ | 889,431 | |||||||||
OCI before reclassifications | (566,073 | ) | — | (40,288 | ) | 243 | — | (606,118 | ) | ||||||||||||||
Amounts reclassified from AOCI | (72,511 | ) | 5,710 | — | — | (95 | ) | (66,896 | ) | ||||||||||||||
Tax benefit (expense) | 43,357 | (98 | ) | 9,560 | (19 | ) | — | 52,800 | |||||||||||||||
Net current period OCI - net of tax | (595,227 | ) | 5,612 | (30,728 | ) | 224 | (95 | ) | (620,214 | ) | |||||||||||||
Reclassification due to the adoption of ASU 2016-01 (2) | $ | (221,856 | ) | $ | — | $ | — | $ | — | $ | — | $ | (221,856 | ) | |||||||||
Reclassification due to the adoption of ASU 2018-02 | $ | 6,357 | $ | — | $ | (216 | ) | $ | (2,238 | ) | $ | — | $ | 3,903 | |||||||||
Balance, end of period, net of tax | $ | 59,752 | $ | (37,915 | ) | $ | 52,098 | $ | (24,370 | ) | $ | 1,699 | $ | 51,264 | |||||||||
Six Months Ended June 30, 2017 (U.S. dollars in thousands) | |||||||||||||||||||||||
Balance, beginning of period, net of tax | $ | 730,429 | $ | (50,952 | ) | $ | 58,970 | $ | (24,887 | ) | $ | 1,986 | $ | 715,546 | |||||||||
OCI before reclassifications | 329,189 | — | 46,232 | (880 | ) | — | 374,541 | ||||||||||||||||
Amounts reclassified from AOCI | (147,146 | ) | 2,966 | — | — | (96 | ) | (144,276 | ) | ||||||||||||||
Tax benefit (expense) | (19,180 | ) | (27 | ) | (5,386 | ) | (53 | ) | — | (24,646 | ) | ||||||||||||
Net current period OCI - net of tax | 162,863 | 2,939 | 40,846 | (933 | ) | (96 | ) | 205,619 | |||||||||||||||
Balance, end of period, net of tax | $ | 893,292 | $ | (48,013 | ) | $ | 99,816 | $ | (25,820 | ) | $ | 1,890 | $ | 921,165 |
(1) | For certain annuity contracts that are subject to the GreyCastle Life Retro Arrangements, future policy benefit reserves were historically increased for the impact of changes in unrealized gains on investments supporting such contracts as if the gains had been realized, with a corresponding entry to other comprehensive income ("Shadow Adjustments"). Upon completion of the GreyCastle Life Retro Arrangements, no further Shadow Adjustments were recorded. At December 31, 2017, the cumulative impact of the Shadow Adjustments was $184.9 million. During the six months ended June 30, 2018, net movements of $(46.5) million were recorded, resulting in a total cumulative net impact of Shadow Adjustments on future policy benefit reserves of $138.5 million at June 30, 2018. |
(2) | The reclassification out of AOCI due to the adoption of ASU 2016-01 includes $233.8 million of net unrealized gains less $11.9 million of deferred tax on net unrealized gains as discussed in Note 1(b), "Significant Accounting Policies - Recent Accounting Pronouncements." |
Gross Amount Reclassified From AOCI | ||||||||||||||||
Details About AOCI Components - Affected Line Items in the Unaudited Consolidated Statements of Income (U.S. dollars in thousands) | Three months ended June 30, 2018 | Three months ended June 30, 2017 | Six months ended June 30, 2018 | Six months ended June 30, 2017 | ||||||||||||
Unrealized gains and losses on investments: | ||||||||||||||||
Net realized gains (losses) on investments AFS | $ | (52,766 | ) | $ | (81,618 | ) | $ | (35,004 | ) | $ | (128,638 | ) | ||||
OTTI | 2,564 | 1,160 | 5,412 | 8,034 | ||||||||||||
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets | (33,184 | ) | (14,133 | ) | (42,919 | ) | (26,542 | ) | ||||||||
Income (loss) from investment affiliates | — | — | — | — | ||||||||||||
Total before tax | $ | (83,386 | ) | $ | (94,591 | ) | $ | (72,511 | ) | $ | (147,146 | ) | ||||
Provision (benefit) for income tax | 69 | 643 | (1,933 | ) | 169 | |||||||||||
Net of tax | $ | (83,317 | ) | $ | (93,948 | ) | $ | (74,444 | ) | $ | (146,977 | ) | ||||
OTTI losses recognized in OCI: | ||||||||||||||||
Net realized gains (losses) on investments AFS | $ | 1,561 | $ | 1,461 | $ | 5,113 | $ | 2,916 | ||||||||
OTTI transferred to (from) OCI | 436 | 50 | 597 | 50 | ||||||||||||
Total before tax | $ | 1,997 | $ | 1,511 | $ | 5,710 | $ | 2,966 | ||||||||
Provision (benefit) for income tax | (1 | ) | (14 | ) | (98 | ) | (27 | ) | ||||||||
Net of tax | $ | 1,996 | $ | 1,497 | $ | 5,612 | $ | 2,939 | ||||||||
Gains and losses on cash flow hedges: | ||||||||||||||||
Interest Expense | $ | (47 | ) | $ | (48 | ) | $ | (95 | ) | $ | (96 | ) | ||||
Provision (benefit) for income tax | — | — | — | — | ||||||||||||
Net of tax | $ | (47 | ) | $ | (48 | ) | $ | (95 | ) | $ | (96 | ) | ||||
Total reclassifications for the period, gross of tax | $ | (81,436 | ) | $ | (93,128 | ) | $ | (66,896 | ) | $ | (144,276 | ) | ||||
Tax benefit (expense) | 68 | 629 | (2,031 | ) | 142 | |||||||||||
Total reclassifications for the period, net of tax | $ | (81,368 | ) | $ | (92,499 | ) | $ | (68,927 | ) | $ | (144,134 | ) |
June 30, 2018 | |||||||||||||||||||
Condensed Consolidating Balance Sheet (U.S. dollars in thousands) | XL-Group (1) | XLIT | Other XL Group Subsidiaries | Consolidating Adjustments and Eliminations | XL Group Consolidated | ||||||||||||||
ASSETS | |||||||||||||||||||
Investments: | |||||||||||||||||||
Fixed maturities AFS | $ | — | $ | 425,321 | $ | 29,367,830 | $ | — | $ | 29,793,151 | |||||||||
Short-term investments AFS | — | — | 623,113 | — | 623,113 | ||||||||||||||
Fixed maturities trading | — | — | 1,990,344 | — | 1,990,344 | ||||||||||||||
Short-term investments trading | — | — | 5,788 | — | 5,788 | ||||||||||||||
Equity securities | — | — | 644,711 | — | 644,711 | ||||||||||||||
Investments in affiliates | — | — | 1,904,010 | — | 1,904,010 | ||||||||||||||
Other investments | — | — | 1,151,706 | — | 1,151,706 | ||||||||||||||
Total investments | $ | — | $ | 425,321 | $ | 35,687,502 | $ | — | $ | 36,112,823 | |||||||||
Cash and cash equivalents | 3,794 | 102,847 | 2,796,429 | — | 2,903,070 | ||||||||||||||
Restricted cash | — | — | 127,497 | — | 127,497 | ||||||||||||||
Investments in subsidiaries | 9,653,493 | 13,050,236 | — | (22,703,729 | ) | — | |||||||||||||
Accrued investment income | 10 | 1,927 | 263,178 | — | 265,115 | ||||||||||||||
Deferred acquisition costs and value of business acquired | — | — | 1,162,164 | — | 1,162,164 | ||||||||||||||
Ceded unearned premiums | — | — | 2,807,369 | — | 2,807,369 | ||||||||||||||
Premiums receivable | — | — | 8,079,074 | — | 8,079,074 | ||||||||||||||
Reinsurance balances receivable | — | — | 1,293,477 | — | 1,293,477 | ||||||||||||||
Unpaid losses and loss expenses recoverable | — | — | 7,209,084 | — | 7,209,084 | ||||||||||||||
Receivable from investments sold | — | — | 188,781 | — | 188,781 | ||||||||||||||
Goodwill and other intangible assets | — | — | 2,201,085 | — | 2,201,085 | ||||||||||||||
Deferred tax asset | — | — | 372,520 | — | 372,520 | ||||||||||||||
Amounts due from subsidiaries/parent | 29,526 | 234,207 | — | (263,733 | ) | — | |||||||||||||
Other assets | 1,468 | 27,164 | 835,198 | — | 863,830 | ||||||||||||||
Total assets | $ | 9,688,291 | $ | 13,841,702 | $ | 63,023,358 | $ | (22,967,462 | ) | $ | 63,585,889 | ||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||
Liabilities: | |||||||||||||||||||
Unpaid losses and loss expenses | $ | — | $ | — | $ | 29,181,147 | $ | — | $ | 29,181,147 | |||||||||
Deposit liabilities | — | — | 940,557 | — | 940,557 | ||||||||||||||
Future policy benefit reserves | — | — | 3,380,442 | — | 3,380,442 | ||||||||||||||
Funds withheld on GreyCastle life retrocession arrangements | — | — | 736,092 | — | 736,092 | ||||||||||||||
Unearned premiums | — | — | 9,539,454 | — | 9,539,454 | ||||||||||||||
Notes payable and debt | — | 3,203,462 | 13,661 | — | 3,217,123 | ||||||||||||||
Reinsurance balances payable | — | — | 4,071,505 | — | 4,071,505 | ||||||||||||||
Payable for investments purchased | — | 1,135 | 216,662 | — | 217,797 | ||||||||||||||
Deferred tax liability | — | — | 57,360 | — | 57,360 | ||||||||||||||
Amounts due to subsidiaries/parent | — | — | 263,733 | (263,733 | ) | — | |||||||||||||
Other liabilities | 28,280 | 26,691 | 932,435 | — | 987,406 | ||||||||||||||
Total liabilities | $ | 28,280 | $ | 3,231,288 | $ | 49,333,048 | $ | (263,733 | ) | $ | 52,328,883 | ||||||||
Shareholders' Equity: | |||||||||||||||||||
Shareholders' equity attributable to XL Group Ltd | $ | 9,660,011 | $ | 9,653,493 | $ | 13,050,236 | $ | (22,703,729 | ) | $ | 9,660,011 | ||||||||
Non-controlling interest in equity of consolidated subsidiaries | — | 956,921 | 640,074 | — | 1,596,995 | ||||||||||||||
Total shareholders' equity | $ | 9,660,011 | $ | 10,610,414 | $ | 13,690,310 | $ | (22,703,729 | ) | $ | 11,257,006 | ||||||||
Total liabilities and shareholders' equity | $ | 9,688,291 | $ | 13,841,702 | $ | 63,023,358 | $ | (22,967,462 | ) | $ | 63,585,889 |
(1) | Includes XL-Ireland, which was the former ultimate parent and is now in liquidation proceedings. The Company expects the net assets of XL-Ireland to be distributed to XL Group upon completion of the liquidation. |
December 31, 2017 | |||||||||||||||||||
Condensed Consolidating Balance Sheet (U.S. dollars in thousands) | XL-Group (1) | XLIT | Other XL Group Subsidiaries | Consolidating Adjustments and Eliminations | XL Group Consolidated | ||||||||||||||
ASSETS | |||||||||||||||||||
Investments: | |||||||||||||||||||
Fixed maturities AFS | $ | — | $ | 528,152 | $ | 30,400,836 | $ | — | $ | 30,928,988 | |||||||||
Short-term investments AFS | — | — | 815,481 | — | 815,481 | ||||||||||||||
Fixed maturities trading | — | — | 2,006,385 | — | 2,006,385 | ||||||||||||||
Short-term investments trading | — | — | 14,965 | — | 14,965 | ||||||||||||||
Equity securities | — | — | 713,967 | — | 713,967 | ||||||||||||||
Investments in affiliates | — | — | 1,911,996 | — | 1,911,996 | ||||||||||||||
Other investments | — | — | 1,163,863 | — | 1,163,863 | ||||||||||||||
Total investments | $ | — | $ | 528,152 | $ | 37,027,493 | $ | — | $ | 37,555,645 | |||||||||
Cash and cash equivalents | 3,950 | 158,688 | 3,273,316 | — | 3,435,954 | ||||||||||||||
Restricted cash | — | — | 157,497 | — | 157,497 | ||||||||||||||
Investments in subsidiaries | 9,817,979 | 13,379,083 | — | (23,197,062 | ) | — | |||||||||||||
Accrued investment income | 11 | 2,436 | 269,702 | — | 272,149 | ||||||||||||||
Deferred acquisition costs and value of business acquired | — | — | 1,102,474 | — | 1,102,474 | ||||||||||||||
Ceded unearned premiums | — | — | 2,198,217 | — | 2,198,217 | ||||||||||||||
Premiums receivable | — | — | 6,934,482 | — | 6,934,482 | ||||||||||||||
Reinsurance balances receivable | — | — | 930,114 | — | 930,114 | ||||||||||||||
Unpaid losses and loss expenses recoverable | — | — | 7,247,723 | — | 7,247,723 | ||||||||||||||
Receivable from investments sold | — | — | 201,515 | — | 201,515 | ||||||||||||||
Goodwill and other intangible assets | — | — | 2,225,751 | — | 2,225,751 | ||||||||||||||
Deferred tax asset | — | — | 332,024 | — | 332,024 | ||||||||||||||
Amounts due from subsidiaries/parent | 32,301 | — | 61,976 | (94,277 | ) | — | |||||||||||||
Other assets | 14,541 | 27,244 | 800,906 | — | 842,691 | ||||||||||||||
Total assets | $ | 9,868,782 | $ | 14,095,603 | $ | 62,763,190 | $ | (23,291,339 | ) | $ | 63,436,236 | ||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||
Liabilities: | |||||||||||||||||||
Unpaid losses and loss expenses | $ | — | $ | — | $ | 29,696,779 | $ | — | $ | 29,696,779 | |||||||||
Deposit liabilities | — | — | 1,042,677 | — | 1,042,677 | ||||||||||||||
Future policy benefit reserves | — | — | 3,610,926 | — | 3,610,926 | ||||||||||||||
Funds withheld on GreyCastle life retrocession arrangements | — | — | 999,219 | — | 999,219 | ||||||||||||||
Unearned premiums | — | — | 8,307,431 | — | 8,307,431 | ||||||||||||||
Notes payable and debt | — | 3,220,769 | — | — | 3,220,769 | ||||||||||||||
Reinsurance balances payable | — | — | 3,706,116 | — | 3,706,116 | ||||||||||||||
Payable for investments purchased | — | 848 | 332,141 | — | 332,989 | ||||||||||||||
Deferred tax liability | — | — | 57,574 | — | 57,574 | ||||||||||||||
Amounts due to subsidiaries/parent | — | 62,111 | 32,166 | (94,277 | ) | — | |||||||||||||
Other liabilities | 20,465 | 36,975 | 942,996 | — | 1,000,436 | ||||||||||||||
Total liabilities | $ | 20,465 | $ | 3,320,703 | $ | 48,728,025 | $ | (94,277 | ) | $ | 51,974,916 | ||||||||
Shareholders' Equity: | |||||||||||||||||||
Shareholders' equity attributable to XL Group Ltd | $ | 9,848,317 | $ | 9,817,979 | $ | 13,379,083 | $ | (23,197,062 | ) | $ | 9,848,317 | ||||||||
Non-controlling interest in equity of consolidated subsidiaries | — | 956,921 | 656,082 | — | 1,613,003 | ||||||||||||||
Total shareholders' equity | $ | 9,848,317 | $ | 10,774,900 | $ | 14,035,165 | $ | (23,197,062 | ) | $ | 11,461,320 | ||||||||
Total liabilities and shareholders' equity | $ | 9,868,782 | $ | 14,095,603 | $ | 62,763,190 | $ | (23,291,339 | ) | $ | 63,436,236 |
(1) | Includes XL-Ireland, which was the former ultimate parent and is now in liquidation proceedings. The Company expects the net assets of XL-Ireland to be distributed to XL Group upon completion of the liquidation. |
Three Months Ended June 30, 2018 | |||||||||||||||||||
Condensed Consolidating Statement of Income and Comprehensive Income (U.S. dollars in thousands) | XL-Group (1) | XLIT | Other XL Group Subsidiaries | Consolidating Adjustments and Eliminations | XL Group Consolidated | ||||||||||||||
Revenues: | |||||||||||||||||||
Net premiums earned | $ | — | $ | — | $ | 2,695,169 | $ | — | $ | 2,695,169 | |||||||||
Total net investment income | 39 | 3,565 | 228,184 | — | 231,788 | ||||||||||||||
Total realized investment gains (losses) | — | (689 | ) | 91,494 | — | 90,805 | |||||||||||||
Net realized and unrealized gains (losses) on derivative instruments | — | — | 16,126 | — | 16,126 | ||||||||||||||
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets | — | — | (36,120 | ) | — | (36,120 | ) | ||||||||||||
Income (loss) from investment affiliates | — | — | 16,548 | — | 16,548 | ||||||||||||||
Fee income and other | — | — | 8,304 | — | 8,304 | ||||||||||||||
Total revenues | $ | 39 | $ | 2,876 | $ | 3,019,705 | $ | — | $ | 3,022,620 | |||||||||
Expenses: | |||||||||||||||||||
Net losses and loss expenses incurred | $ | — | $ | — | $ | 1,721,309 | $ | — | $ | 1,721,309 | |||||||||
Claims and policy benefits | — | — | 10,117 | — | 10,117 | ||||||||||||||
Acquisition costs | — | — | 471,491 | — | 471,491 | ||||||||||||||
Operating expenses | 5,765 | 945 | 463,798 | — | 470,508 | ||||||||||||||
Foreign exchange (gains) losses | (2,183 | ) | (1,114 | ) | (8,843 | ) | — | (12,140 | ) | ||||||||||
Interest expense | — | 40,206 | 8,480 | — | 48,686 | ||||||||||||||
Total expenses | $ | 3,582 | $ | 40,037 | $ | 2,666,352 | $ | — | $ | 2,709,971 | |||||||||
Income (loss) before income tax and income (loss) from operating affiliates | $ | (3,543 | ) | $ | (37,161 | ) | $ | 353,353 | $ | — | $ | 312,649 | |||||||
Income (loss) from operating affiliates | — | — | 51,187 | — | 51,187 | ||||||||||||||
Equity in net earnings (losses) of subsidiaries | 322,628 | 370,262 | — | (692,890 | ) | — | |||||||||||||
Provision (benefit) for income tax | 89 | — | 26,947 | — | 27,036 | ||||||||||||||
Net income (loss) | $ | 318,996 | $ | 333,101 | $ | 377,593 | $ | (692,890 | ) | $ | 336,800 | ||||||||
Non-controlling interests | — | 10,473 | 7,331 | — | 17,804 | ||||||||||||||
Net income (loss) attributable to common shareholders | $ | 318,996 | $ | 322,628 | $ | 370,262 | $ | (692,890 | ) | $ | 318,996 | ||||||||
Comprehensive income (loss) | $ | 58,005 | $ | 61,637 | $ | 109,271 | $ | (170,908 | ) | $ | 58,005 |
(1) | Includes XL-Ireland, which was the former ultimate parent and is now in liquidation proceedings. The Company expects the net assets of XL-Ireland to be distributed to XL Group upon completion of the liquidation. |
Three Months Ended June 30, 2017 | |||||||||||||||||||
Condensed Consolidating Statement of Income and Comprehensive Income (U.S. dollars in thousands) | XL-Group (1) | XLIT | Other XL Group Subsidiaries | Consolidating Adjustments and Eliminations | XL Group Consolidated | ||||||||||||||
Revenues: | |||||||||||||||||||
Net premiums earned | $ | — | $ | — | $ | 2,516,917 | $ | — | $ | 2,516,917 | |||||||||
Total net investment income | 10 | 2,103 | 206,571 | (10 | ) | 208,674 | |||||||||||||
Total realized investment gains (losses) | — | 1,446 | 55,182 | — | 56,628 | ||||||||||||||
Net realized and unrealized gains (losses) on derivative instruments | — | — | (906 | ) | — | (906 | ) | ||||||||||||
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets | — | — | (34,596 | ) | — | (34,596 | ) | ||||||||||||
Income (loss) from investment affiliates | — | — | 30,818 | — | 30,818 | ||||||||||||||
Fee income and other | — | — | 10,225 | — | 10,225 | ||||||||||||||
Total revenues | $ | 10 | $ | 3,549 | $ | 2,784,211 | $ | (10 | ) | $ | 2,787,760 | ||||||||
Expenses: | |||||||||||||||||||
Net losses and loss expenses incurred | $ | — | $ | — | $ | 1,529,083 | $ | — | $ | 1,529,083 | |||||||||
Claims and policy benefits | — | — | 7,595 | — | 7,595 | ||||||||||||||
Acquisition costs | — | — | 433,584 | — | 433,584 | ||||||||||||||
Operating expenses | 27,389 | 1,152 | 444,237 | — | 472,778 | ||||||||||||||
Foreign exchange (gains) losses | 936 | 26 | (6,605 | ) | — | (5,643 | ) | ||||||||||||
Interest expense | — | 35,277 | 18,741 | — | 54,018 | ||||||||||||||
Total expenses | $ | 28,325 | $ | 36,455 | $ | 2,426,635 | $ | — | $ | 2,491,415 | |||||||||
Income (loss) before income tax and income (loss) from operating affiliates | $ | (28,315 | ) | $ | (32,906 | ) | $ | 357,576 | $ | (10 | ) | $ | 296,345 | ||||||
Income (loss) from operating affiliates | — | — | 42,704 | — | 42,704 | ||||||||||||||
Equity in net earnings (losses) of subsidiaries | 329,935 | 362,841 | — | (692,776 | ) | — | |||||||||||||
Provision (benefit) for income tax | — | — | 29,006 | — | 29,006 | ||||||||||||||
Net income (loss) | $ | 301,620 | $ | 329,935 | $ | 371,274 | $ | (692,786 | ) | $ | 310,043 | ||||||||
Non-controlling interests | — | — | 8,433 | (10 | ) | 8,423 | |||||||||||||
Net income (loss) attributable to common shareholders | $ | 301,620 | $ | 329,935 | $ | 362,841 | $ | (692,776 | ) | $ | 301,620 | ||||||||
Comprehensive income (loss) | $ | 377,811 | $ | 406,126 | $ | 439,032 | $ | (845,158 | ) | $ | 377,811 |
(1) | Includes XL-Ireland, which was the former ultimate parent and is now in liquidation proceedings. The Company expects the net assets of XL-Ireland to be distributed to XL Group upon completion of the liquidation. |
Six Months Ended June 30, 2018 | |||||||||||||||||||
Condensed Consolidating Statement of Income and Comprehensive Income (U.S. dollars in thousands) | XL-Group (1) | XLIT | Other XL Group Subsidiaries | Consolidating Adjustments and Eliminations | XL Group Consolidated | ||||||||||||||
Revenues: | |||||||||||||||||||
Net premiums earned | $ | — | $ | — | $ | 5,295,457 | $ | — | $ | 5,295,457 | |||||||||
Total net investment income | 47 | 6,852 | 443,370 | — | 450,269 | ||||||||||||||
Total realized investment gains (losses) | — | (2,275 | ) | 9,725 | — | 7,450 | |||||||||||||
Net realized and unrealized gains (losses) on derivative instruments | — | — | 20,347 | — | 20,347 | ||||||||||||||
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets | — | — | (13,199 | ) | — | (13,199 | ) | ||||||||||||
Income (loss) from investment affiliates | — | — | 62,217 | — | 62,217 | ||||||||||||||
Fee income and other | 4 | — | 15,017 | — | 15,021 | ||||||||||||||
Total revenues | $ | 51 | $ | 4,577 | $ | 5,832,934 | $ | — | $ | 5,837,562 | |||||||||
Expenses: | |||||||||||||||||||
Net losses and loss expenses incurred | $ | — | $ | — | $ | 3,343,315 | $ | — | $ | 3,343,315 | |||||||||
Claims and policy benefits | — | — | 20,424 | — | 20,424 | ||||||||||||||
Acquisition costs | — | — | 935,318 | — | 935,318 | ||||||||||||||
Operating expenses | 36,627 | 1,787 | 904,657 | — | 943,071 | ||||||||||||||
Foreign exchange (gains) losses | (913 | ) | (604 | ) | (782 | ) | — | (2,299 | ) | ||||||||||
Interest expense | — | 80,245 | 21,986 | — | 102,231 | ||||||||||||||
Total expenses | $ | 35,714 | $ | 81,428 | $ | 5,224,918 | $ | — | $ | 5,342,060 | |||||||||
Income (loss) before income tax and income (loss) from operating affiliates | $ | (35,663 | ) | $ | (76,851 | ) | $ | 608,016 | $ | — | $ | 495,502 | |||||||
Income (loss) from operating affiliates | — | — | 61,469 | — | 61,469 | ||||||||||||||
Equity in net earnings (losses) of subsidiaries | 507,396 | 604,540 | — | (1,111,936 | ) | — | |||||||||||||
Provision (benefit) for income tax | 89 | — | 58,849 | — | 58,938 | ||||||||||||||
Net income (loss) | $ | 471,644 | $ | 527,689 | $ | 610,636 | $ | (1,111,936 | ) | $ | 498,033 | ||||||||
Non-controlling interests | — | 20,293 | 6,096 | — | 26,389 | ||||||||||||||
Net income (loss) attributable to common shareholders | $ | 471,644 | $ | 507,396 | $ | 604,540 | $ | (1,111,936 | ) | $ | 471,644 | ||||||||
Comprehensive income (loss) | $ | (148,570 | ) | $ | (112,818 | ) | $ | (15,674 | ) | $ | 128,492 | $ | (148,570 | ) |
(1) | Includes XL-Ireland, which was the former ultimate parent and is now in liquidation proceedings. The Company expects the net assets of XL-Ireland to be distributed to XL Group upon completion of the liquidation. |
Six Months Ended June 30, 2017 | |||||||||||||||||||
Condensed Consolidating Statement of Income and Comprehensive Income (U.S. dollars in thousands) | XL-Group (1) | XLIT | Other XL Group Subsidiaries | Consolidating Adjustments and Eliminations | XL Group Consolidated | ||||||||||||||
Revenues: | |||||||||||||||||||
Net premiums earned | $ | — | $ | — | $ | 5,039,708 | $ | — | $ | 5,039,708 | |||||||||
Total net investment income | 94 | 4,416 | 404,790 | (94 | ) | 409,206 | |||||||||||||
Total realized investment gains (losses) | — | 669 | 93,245 | — | 93,914 | ||||||||||||||
Net realized and unrealized gains (losses) on derivative instruments | — | — | (7,975 | ) | — | (7,975 | ) | ||||||||||||
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets | — | — | (84,697 | ) | — | (84,697 | ) | ||||||||||||
Income (loss) from investment affiliates | — | — | 69,079 | — | 69,079 | ||||||||||||||
Fee income and other | — | — | 23,886 | — | 23,886 | ||||||||||||||
Total revenues | $ | 94 | $ | 5,085 | $ | 5,538,036 | $ | (94 | ) | $ | 5,543,121 | ||||||||
Expenses: | |||||||||||||||||||
Net losses and loss expenses incurred | $ | — | $ | — | $ | 3,112,539 | $ | — | $ | 3,112,539 | |||||||||
Claims and policy benefits | — | — | 14,886 | — | 14,886 | ||||||||||||||
Acquisition costs | — | — | 869,453 | — | 869,453 | ||||||||||||||
Operating expenses | 43,570 | 1,661 | 895,585 | — | 940,816 | ||||||||||||||
Foreign exchange (gains) losses | 1,112 | 27 | (10,118 | ) | — | (8,979 | ) | ||||||||||||
Interest expense | — | 70,424 | 34,305 | — | 104,729 | ||||||||||||||
Total expenses | $ | 44,682 | $ | 72,112 | $ | 4,916,650 | $ | — | $ | 5,033,444 | |||||||||
Income (loss) before income tax and income (loss) from operating affiliates | $ | (44,588 | ) | $ | (67,027 | ) | $ | 621,386 | $ | (94 | ) | $ | 509,677 | ||||||
Income (loss) from operating affiliates | — | — | 56,313 | — | 56,313 | ||||||||||||||
Equity in net earnings (losses) of subsidiaries | 499,051 | 602,367 | — | (1,101,418 | ) | — | |||||||||||||
Provision (benefit) for income tax | — | — | 42,098 | — | 42,098 | ||||||||||||||
Net income (loss) | $ | 454,463 | $ | 535,340 | $ | 635,601 | $ | (1,101,512 | ) | $ | 523,892 | ||||||||
Non-controlling interests | — | 36,289 | 33,234 | (94 | ) | 69,429 | |||||||||||||
Net income (loss) attributable to common shareholders | $ | 454,463 | $ | 499,051 | $ | 602,367 | $ | (1,101,418 | ) | $ | 454,463 | ||||||||
Comprehensive income (loss) | $ | 660,082 | $ | 704,670 | $ | 807,986 | $ | (1,512,656 | ) | $ | 660,082 |
(1) | Includes XL-Ireland, which was the former ultimate parent and is now in liquidation proceedings. The Company expects the net assets of XL-Ireland to be distributed to XL Group upon completion of the liquidation. |
Six Months Ended June 30, 2018 | |||||||||||||||||||
Condensed Consolidating Statement of Cash Flows (U.S. dollars in thousands) | XL-Group (1) | XLIT | Other XL Group Subsidiaries | Consolidating Adjustments and Eliminations | XL Group Consolidated | ||||||||||||||
Cash flows provided by (used in) operating activities: | |||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 3,103 | $ | (377,105 | ) | $ | (237,615 | ) | $ | — | $ | (611,617 | ) | ||||||
Cash flows provided by (used in) investing activities: | |||||||||||||||||||
Proceeds from sale of fixed maturities and short-term investments | $ | — | $ | 162,290 | $ | 7,269,018 | $ | — | $ | 7,431,308 | |||||||||
Proceeds from redemption of fixed maturities and short-term investments | — | 58,759 | 1,381,432 | — | 1,440,191 | ||||||||||||||
Proceeds from sale of equity securities | — | — | 84,068 | — | 84,068 | ||||||||||||||
Purchases of fixed maturities and short-term investments | — | (127,823 | ) | (8,654,024 | ) | — | (8,781,847 | ) | |||||||||||
Purchases of equity securities | — | — | (44,954 | ) | — | (44,954 | ) | ||||||||||||
Proceeds from sale of affiliates | — | — | 302,199 | — | 302,199 | ||||||||||||||
Purchases of affiliates | — | — | (103,222 | ) | — | (103,222 | ) | ||||||||||||
Returns of capital from subsidiaries | 51,669 | 300,000 | — | (351,669 | ) | — | |||||||||||||
Other, net | — | — | (29,985 | ) | — | (29,985 | ) | ||||||||||||
Net cash provided by (used in) investing activities | $ | 51,669 | $ | 393,226 | $ | 204,532 | $ | (351,669 | ) | $ | 297,758 | ||||||||
Cash flows provided by (used in) financing activities: | |||||||||||||||||||
Proceeds from issuance of common shares and exercise of stock options | $ | 60,855 | $ | — | $ | — | $ | — | $ | 60,855 | |||||||||
Buybacks of common shares | (2,057 | ) | — | — | — | (2,057 | ) | ||||||||||||
Employee withholding on share-based compensation | — | — | (16,696 | ) | — | (16,696 | ) | ||||||||||||
Dividends paid on common shares | (113,726 | ) | — | — | — | (113,726 | ) | ||||||||||||
Return of capital | — | (51,669 | ) | (300,000 | ) | 351,669 | — | ||||||||||||
Distributions to non-controlling interests | — | (20,293 | ) | (24,801 | ) | — | (45,094 | ) | |||||||||||
Contributions from non-controlling interests | — | — | 1,924 | — | 1,924 | ||||||||||||||
Contingent consideration paid on business combination | — | — | (5,000 | ) | — | (5,000 | ) | ||||||||||||
Deposit liabilities | — | — | (119,113 | ) | — | (119,113 | ) | ||||||||||||
Net cash provided by (used in) financing activities | $ | (54,928 | ) | $ | (71,962 | ) | $ | (463,686 | ) | $ | 351,669 | $ | (238,907 | ) | |||||
Effects of exchange rate changes on foreign currency cash | — | — | (10,118 | ) | — | (10,118 | ) | ||||||||||||
Increase (decrease) in cash, cash equivalents and restricted cash | $ | (156 | ) | $ | (55,841 | ) | $ | (506,887 | ) | $ | — | $ | (562,884 | ) | |||||
Cash, cash equivalents and restricted cash - beginning of year | 3,950 | 158,688 | 3,430,813 | — | 3,593,451 | ||||||||||||||
Cash, cash equivalents and restricted cash - end of period | $ | 3,794 | $ | 102,847 | $ | 2,923,926 | $ | — | $ | 3,030,567 |
(1) | Includes XL-Ireland, which was the former ultimate parent and is now in liquidation proceedings. The Company expects the net assets of XL-Ireland to be distributed to XL Group upon completion of the liquidation. |
Six Months Ended June 30, 2017 | |||||||||||||||||||
Condensed Consolidating Statement of Cash Flows (U.S. dollars in thousands) | XL-Group (1) | XLIT | Other XL Group Subsidiaries | Consolidating Adjustments and Eliminations | XL Group Consolidated | ||||||||||||||
Cash flows provided by (used in) operating activities: | |||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 286,697 | $ | 332,788 | $ | (45,440 | ) | $ | (695,987 | ) | $ | (121,942 | ) | ||||||
Cash flows provided by (used in) investing activities: | |||||||||||||||||||
Proceeds from sale of fixed maturities and short-term investments | $ | — | $ | 81,662 | $ | 6,305,948 | $ | — | $ | 6,387,610 | |||||||||
Proceeds from redemption of fixed maturities and short-term investments | — | 82,392 | 2,001,790 | — | 2,084,182 | ||||||||||||||
Proceeds from sale of equity securities | — | 677 | 228,237 | — | 228,914 | ||||||||||||||
Purchases of fixed maturities and short-term investments | — | (143,851 | ) | (8,575,173 | ) | — | (8,719,024 | ) | |||||||||||
Purchases of equity securities | — | — | (277,329 | ) | — | (277,329 | ) | ||||||||||||
Proceeds from sale of affiliates | — | — | 236,861 | — | 236,861 | ||||||||||||||
Purchases of affiliates | — | — | (51,891 | ) | — | (51,891 | ) | ||||||||||||
Returns of capital from subsidiaries | 237,013 | — | — | (237,013 | ) | — | |||||||||||||
Other, net | — | — | 5,127 | — | 5,127 | ||||||||||||||
Net cash provided by (used in) investing activities | $ | 237,013 | $ | 20,880 | $ | (126,430 | ) | $ | (237,013 | ) | $ | (105,550 | ) | ||||||
Cash flows provided by (used in) financing activities: | |||||||||||||||||||
Proceeds from issuance of common shares and exercise of stock options | $ | 42,630 | $ | — | $ | — | $ | — | $ | 42,630 | |||||||||
Buybacks of common shares | (450,629 | ) | — | — | — | (450,629 | ) | ||||||||||||
Employee withholding on share-based compensation | — | — | (23,957 | ) | — | (23,957 | ) | ||||||||||||
Dividends paid on common shares | (115,589 | ) | (295,987 | ) | (400,000 | ) | 695,987 | (115,589 | ) | ||||||||||
Return of capital | — | (237,013 | ) | — | 237,013 | — | |||||||||||||
Distributions to non-controlling interests | — | (39,867 | ) | (33,841 | ) | — | (73,708 | ) | |||||||||||
Contributions from non-controlling interests | — | — | 25 | — | 25 | ||||||||||||||
Proceeds from issuance of debt | — | 558,311 | — | — | 558,311 | ||||||||||||||
Contingent consideration paid on business combination | — | — | (7,304 | ) | — | (7,304 | ) | ||||||||||||
Deposit liabilities | — | — | (11,150 | ) | — | (11,150 | ) | ||||||||||||
Net cash provided by (used in) financing activities | $ | (523,588 | ) | $ | (14,556 | ) | $ | (476,227 | ) | $ | 933,000 | $ | (81,371 | ) | |||||
Effects of exchange rate changes on foreign currency cash | — | — | 43,423 | — | 43,423 | ||||||||||||||
Increase (decrease) in cash, cash equivalents and restricted cash | $ | 122 | $ | 339,112 | $ | (604,674 | ) | $ | — | $ | (265,440 | ) | |||||||
Cash, cash equivalents and restricted cash - beginning of year | 1,022 | 84,286 | 3,495,184 | — | 3,580,492 | ||||||||||||||
Cash, cash equivalents and restricted cash - end of period | $ | 1,144 | $ | 423,398 | $ | 2,890,510 | $ | — | $ | 3,315,052 |
(1) | Includes XL-Ireland, which was the former ultimate parent and is now in liquidation proceedings. The Company expects the net assets of XL-Ireland to be distributed to XL Group upon completion of the liquidation. |
ITEM 2. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
▪ | changes in rates for property and casualty insurance and reinsurance; |
▪ | changes in the size of claims we receive relating to unpredictable natural or man-made catastrophe losses, such as hurricanes, earthquakes, typhoons, floods, nuclear accidents or terrorism, due to the preliminary nature of some reports and estimates of loss and damage to date, given the complexities and nature of these particular events, including the magnitude, proximity and relatively recent occurrence of these events, incomplete claims data received to date, the likelihood of longer development periods associated with the specific characteristics of these events and the geographic and infrastructure limitations related to the areas affected by these events, among other matters; |
▪ | changes in the number of insureds and ceding companies affected or the ultimate number and value of individual claims related to natural catastrophe events due to the preliminary nature of reports and estimates of loss and damage to date; |
▪ | risks and uncertainties relating to the proposed acquisition of XL by AXA SA, including but not limited to (i) that XL may be unable to complete the proposed transaction because, among other reasons, conditions to the closing of the proposed transaction may not be satisfied or waived, including that a governmental entity may prohibit, delay or refuse to grant approval for the consummation of the transaction; (ii) uncertainty as to the timing of completion of the proposed transaction; (iii) the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement between XL and AXA dated March 5, 2018; (iv) risks related to disruption of management’s attention from XL’s ongoing business operations due to the proposed transaction; (v) the effect of the |
▪ | changes in the amount or type of business that we write, whether due to our actions, changes in market conditions or other factors, and the aggregate amount of premiums attributable to those businesses; |
▪ | the availability, cost or quality of ceded reinsurance, and the timely and full recoverability of such reinsurance, or other amounts due to us, or changes to our projections relating to such recoverables; |
▪ | actual loss experience from insured or reinsured events and the timing of claims payments being faster or the receipt of reinsurance recoverables being slower than we anticipated; |
▪ | increased competition on the basis of pricing, capacity, coverage terms or other factors, such as the increased inflow of third-party capital into reinsurance markets, which could harm our ability to maintain or increase our business volumes or profitability; |
▪ | greater frequency or severity of claims and loss activity than our underwriting, reserving or investment practices anticipate based on historical experience or industry data; |
▪ | the impact of changes in the global financial markets, such as the effects of inflation on our business including on pricing and reserving, changes in interest rates, credit spreads and foreign currency exchange rates and future volatility in the world's credit, financial and capital markets that adversely affect the performance and valuation of our investments, future financing activities and access to such markets, our ability to pay claims or our general financial condition; |
▪ | our ability to successfully implement our business strategy; |
▪ | our ability to successfully attract and raise additional third-party capital for existing or new investment vehicles; |
▪ | changes in credit ratings or rating agency policies or practices, which could trigger cancellation provisions in our assumed reinsurance agreements or affect the availability of our credit facilities; |
▪ | the potential for changes to methodologies, estimations and assumptions that underlie the valuation of our financial instruments, that could result in changes to investment valuations; |
▪ | changes to our assessment as to whether it is more likely than not that we will be required to sell, or have the intent to sell, available-for-sale ("AFS") fixed maturity securities before their anticipated recovery; |
▪ | unanticipated constraints on our liquidity, including the availability of borrowings and letters of credit under our credit facilities, which may inhibit our ability to support our operations, including our ability to underwrite policies and pay claims; |
▪ | the ability of our subsidiaries to pay dividends to XL Group, XLIT Ltd. ("XLIT"), and Catlin Insurance Company Ltd ("CICL UK"). |
▪ | changes in regulators or regulations applicable to our brokers or customers or to us, such as changes in regulatory capital balances that our operating subsidiaries must maintain; |
▪ | the effects of business disruption, economic contraction or economic sanctions due to unpredictable global political and social conditions such as war, terrorism or other hostilities, cyber-attacks, or pandemics; |
▪ | the actual amount of new and renewal business and acceptance of our products and services, including new products and services and the materialization of risks related to such products and services; |
▪ | changes in the distribution or placement of risks due to increased consolidation of insurance and reinsurance brokers; |
▪ | bankruptcies or other financial concerns of companies insofar as they affect property and casualty insurance and reinsurance ("P&C") coverages or claims that we may have as a counterparty; |
▪ | the loss of key personnel; |
▪ | the effects of mergers, acquisitions and divestitures, including our ability to modify our internal control over financial reporting, changes to our risk appetite and our ability to realize the strategic value or financial benefits expected, in each case, as a result of such transactions; |
▪ | the economic, political, monetary and operational impacts of the "Brexit" referendum held on June 23, 2016 in which the U.K. electorate voted to withdraw from the European Union ("E.U."), including unanticipated costs or complications associated with our decision to redomesticate XL Insurance Company SE from the U.K. to Ireland, or the possibility that this redomestication or other Brexit-related decisions do not have the results anticipated; |
▪ | changes in general economic, political or monetary conditions, including new or continued sovereign debt concerns in Euro-Zone countries or emerging markets such as Brazil or China, or governmental actions for the purpose of stabilizing financial markets; |
▪ | changes in applicable tax laws, tax treaties or tax regulations or the interpretation or enforcement thereof; |
▪ | judicial decisions and rulings, new theories of liability or emerging claims coverage issues, legal tactics and settlement terms; |
• | the effects of climate change (such as changes to weather patterns, sea levels or temperatures) on our business, which our modeling or risk management practices may not adequately address due to the uncertain nature of climate change; and |
• | the other factors set forth in Item 1A, "Risk Factors," included the Company's Annual Report on Form 10-K for the year ended December 31, 2017, Part II, Item 1A, "Risk Factors," included herein and our other documents on file with the SEC. |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | Change | June 30, | Change | ||||||||||||||||||||
(U.S. dollars in thousands, except per share amounts) | 2018 | 2017 | 2018 vs 2017 | 2018 | 2017 | 2018 vs 2017 | |||||||||||||||||
Net income (loss) attributable to common shareholders | $ | 318,996 | $ | 301,620 | 5.8 | % | $ | 471,644 | $ | 454,463 | 3.8 | % | |||||||||||
Earnings (loss) per common share – basic | $ | 1.23 | $ | 1.16 | 6.0 | % | $ | 1.83 | $ | 1.73 | 5.8 | % | |||||||||||
Earnings (loss) per common share – diluted | $ | 1.21 | $ | 1.14 | 6.1 | % | $ | 1.80 | $ | 1.70 | 5.9 | % | |||||||||||
Weighted average number of common shares and common share equivalents, in thousands – basic | 258,375 | 260,990 | (1.0 | )% | 257,653 | 263,327 | (2.2 | )% | |||||||||||||||
Weighted average number of common shares and common share equivalents, in thousands – diluted | 263,822 | 264,943 | (0.4 | )% | 262,610 | 267,279 | (1.7 | )% | |||||||||||||||
Underwriting profit (loss) - P&C operations | $ | 114,229 | $ | 194,592 | (41.3 | )% | $ | 236,669 | $ | 338,569 | (30.1 | )% | |||||||||||
Combined ratio - P&C operations | 95.8 | % | 92.3 | % | 3.5 | pts | 95.5 | % | 93.3 | % | 2.2 | pts | |||||||||||
Net investment income - P&C operations (1) | $ | 194,309 | $ | 169,078 | 14.9 | % | $ | 374,873 | $ | 329,019 | 13.9 | % | |||||||||||
Operating net income (2) | $ | 220,341 | $ | 255,080 | (13.6 | )% | $ | 434,700 | $ | 391,223 | 11.1 | % | |||||||||||
Operating net income per common share (2) | $ | 0.84 | $ | 0.96 | $ | (0.12 | ) | $ | 1.66 | $ | 1.46 | $ | 0.20 | ||||||||||
Annualized return on average common shareholders' equity | 13.2 | % | 10.9 | % | 2.3 | pts | 9.7 | % | 8.3 | % | 1.4 | pts | |||||||||||
Annualized operating return on average common shareholders' equity (2) | 9.1 | % | 9.3 | % | (0.2 | )pts | 8.9 | % | 7.1 | % | 1.8 | pts | |||||||||||
Annualized operating return on average common shareholders' equity excluding accumulated other comprehensive income (2) | 9.3 | % | 10.1 | % | (0.8 | )pts | 9.4 | % | 7.7 | % | 1.7 | pts | |||||||||||
Annualized operating return on average common shareholders' equity excluding Catlin-related integration costs (2) | 9.1 | % | 10.5 | % | (1.4 | )pts | 8.9 | % | 8.3 | % | 0.6 | pts | |||||||||||
Annualized operating return on average common shareholders' equity excluding Catlin-related integration costs and accumulated other comprehensive income (2) | 9.3 | % | 11.4 | % | (2.1 | )pts | 9.4 | % | 9.0 | % | 0.4 | pts | |||||||||||
(U.S. dollars) | June 30, 2018 | March 31, 2018 | Change (Three Months) | June 30, 2018 | December 31, 2017 | Change (Six Months) | |||||||||||||||||
Book value per common share | $ | 37.33 | $ | 37.30 | $ | 0.03 | $ | 37.33 | $ | 38.46 | $ | (1.13 | ) | ||||||||||
Fully diluted book value per common share | $ | 36.56 | $ | 36.53 | $ | 0.03 | $ | 36.56 | $ | 38.04 | $ | (1.48 | ) | ||||||||||
Fully diluted tangible book value per common share (2) | $ | 28.23 | $ | 28.06 | $ | 0.17 | $ | 28.23 | $ | 29.44 | $ | (1.21 | ) |
(1) | Net investment income - P&C operations includes all net investment income related to the net results from structured products and excludes all net investment income from the assets supporting the Life Funds Withheld Assets, as defined in Item 1, Note 1(a), "Significant Accounting Policies - Basis of Preparation and Consolidation," to the Unaudited Consolidated Financial Statements included herein. |
(2) | Represents a non-GAAP financial measure as discussed further below. See "Reconciliation of Non-GAAP Financial Measures" below. |
▪ | The combined ratio related to the P&C operations is the sum of the loss and loss expense ratio and the underwriting expense ratio. A combined ratio under 100% represents an underwriting profit and over 100% represents an underwriting loss. In the P&C industry, the combined ratio is a widely used measure of underwriting profitability. |
▪ | The loss and loss expense ratio related to the P&C operations is calculated by dividing the net losses and loss expenses incurred by the net premiums earned for the Insurance and Reinsurance segments. |
▪ | The acquisition expense ratio related to the P&C operations is calculated by dividing the acquisition costs incurred by the net premiums earned for the Insurance and Reinsurance segments. |
▪ | The operating expense ratio related to the P&C operations is calculated by dividing the operating expenses incurred by the net premiums earned for the Insurance and Reinsurance segments. |
▪ | The underwriting expense ratio related to the P&C operations is the sum of acquisition costs and operating expenses for the Insurance and Reinsurance segments divided by net premiums earned for the Insurance and Reinsurance segments. |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | Change | June 30, | Change | ||||||||||||
2018 | 2017 | 2018 vs 2017 | 2018 | 2017 | 2018 vs 2017 | ||||||||||
Loss and loss expense ("loss") ratio | 63.9 | % | 60.8 | % | 3.1 | 63.2 | % | 61.8 | % | 1.4 | |||||
Acquisition expense ratio | 17.5 | % | 17.2 | % | 0.3 | 17.6 | % | 17.2 | % | 0.4 | |||||
Operating expense ratio | 14.4 | % | 14.3 | % | 0.1 | 14.7 | % | 14.3 | % | 0.4 | |||||
Underwriting expense ratio | 31.9 | % | 31.5 | % | 0.4 | 32.3 | % | 31.5 | % | 0.8 | |||||
Combined ratio | 95.8 | % | 92.3 | % | 3.5 | 95.5 | % | 93.3 | % | 2.2 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||
June 30, | Change | June 30, | Change | ||||||||||||||||||
(U.S. dollars in thousands, except per share amounts) | 2018 | 2017 | 2018 vs 2017 | 2018 | 2017 | 2018 vs 2017 | |||||||||||||||
Net income (loss) | $ | 318,996 | $ | 301,620 | 5.8 | % | $ | 471,644 | $ | 454,463 | 3.8 | % | |||||||||
EPS - basic | $ | 1.23 | $ | 1.16 | 6.0 | % | $ | 1.83 | $ | 1.73 | 5.8 | % | |||||||||
EPS - diluted | $ | 1.21 | $ | 1.14 | 6.1 | % | $ | 1.80 | $ | 1.70 | 5.9 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | Change | June 30, | Change | ||||||||||||||||||||
(U.S. dollars in thousands, except per share amounts) | 2018 | 2017 | 2018 vs 2017 | 2018 | 2017 | 2018 vs 2017 | |||||||||||||||||
Operating net income | $ | 220,341 | $ | 255,080 | (13.6 | )% | $ | 434,700 | $ | 391,223 | 11.1 | % | |||||||||||
Operating net income per share - diluted | $ | 0.84 | $ | 0.96 | $ | (0.12 | ) | $ | 1.66 | $ | 1.46 | $ | 0.20 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | Change | June 30, | Change | |||||||||||||
2018 | 2017 | 2018 vs 2017 | 2018 | 2017 | 2018 vs 2017 | |||||||||||
ROE | 13.2 | % | 10.9 | % | 2.3 | pts | 9.7 | % | 8.3 | % | 1.4 | |||||
Operating ROE | 9.1 | % | 9.3 | % | (0.2 | )pts | 8.9 | % | 7.1 | % | 1.8 | |||||
Operating ROE ex-AOCI | 9.3 | % | 10.1 | % | (0.8 | )pts | 9.4 | % | 7.7 | % | 1.7 | |||||
Operating ROE ex-Catlin-related integration costs | 9.1 | % | 10.5 | % | (1.4 | )pts | 8.9 | % | 8.3 | % | 0.6 | |||||
Operating ROE ex-Catlin-related integration costs and AOCI | 9.3 | % | 11.4 | % | (2.1 | )pts | 9.4 | % | 9.0 | % | 0.4 |
(U.S. dollars) | June 30, 2018 | March 31, 2018 | Change (Three Months) | June 30, 2018 | December 31, 2017 | Change (Six Months) | |||||||||||||||||
Book value per common share | $ | 37.33 | $ | 37.30 | $ | 0.03 | $ | 37.33 | $ | 38.46 | $ | (1.13 | ) | ||||||||||
Fully diluted book value per common share | $ | 36.56 | $ | 36.53 | $ | 0.03 | $ | 36.56 | $ | 38.04 | $ | (1.48 | ) | ||||||||||
Fully diluted tangible book value per common share | $ | 28.23 | $ | 28.06 | $ | 0.17 | $ | 28.23 | $ | 29.44 | $ | (1.21 | ) |
(U.S. dollars in thousands, except per share amounts) | Three Months Ended | Six Months Ended | |||||||||||||
June 30, | June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income (loss) attributable to common shareholders | $ | 318,996 | $ | 301,620 | $ | 471,644 | $ | 454,463 | |||||||
Net realized and unrealized (gains) losses on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets (1) | 36,120 | 34,596 | 13,199 | 84,697 | |||||||||||
Net realized (gains) losses on investments and change in net unrealized (gains) losses on investments, trading and OTTI - Life Funds Withheld Assets | (63,409 | ) | (7,459 | ) | (40,897 | ) | (40,527 | ) | |||||||
Net investment income - Life Funds Withheld Assets | (30,252 | ) | (31,439 | ) | (60,650 | ) | (64,803 | ) | |||||||
Foreign exchange revaluation (gains) losses on and other income and expense items related to Life Funds Withheld Assets | 14,874 | (14,945 | ) | 4,190 | (18,169 | ) | |||||||||
Net income (loss) attributable to common shareholders excluding Contribution from GreyCastle Life Retro Arrangements | $ | 276,329 | $ | 282,373 | $ | 387,486 | $ | 415,661 | |||||||
Net realized (gains) losses and OTTI on investments - excluding Life Funds Withheld Assets | — | (49,169 | ) | — | (53,387 | ) | |||||||||
Net realized (gains) losses on investments AFS and OTTI - excluding Life Funds Withheld Assets | 17,100 | — | 50,578 | — | |||||||||||
Net realized (gains) losses and change in net unrealized gains (losses) on equity securities - excluding Life Funds Withheld Assets | (35,194 | ) | — | 820 | — | ||||||||||
Net realized and unrealized (gains) losses on derivatives | (16,126 | ) | 906 | (20,347 | ) | 7,975 | |||||||||
Net realized and unrealized (gains) losses on investments and derivatives related to the Company's insurance company affiliates | (12 | ) | 115 | (648 | ) | (1,936 | ) | ||||||||
Foreign exchange (gains) losses excluding Life Funds Withheld Assets | (27,014 | ) | 9,302 | (6,489 | ) | 9,190 | |||||||||
Expenses related to the pending acquisition by AXA SA | 8,264 | — | 30,912 | — | |||||||||||
(Provision) benefit for income tax on items excluded from operating income (2) | (3,006 | ) | 11,553 | (7,612 | ) | 13,720 | |||||||||
Operating net income (loss) | $ | 220,341 | $ | 255,080 | $ | 434,700 | $ | 391,223 | |||||||
Catlin-related integration costs | — | 39,118 | — | 73,067 | |||||||||||
(Provision) benefit for income tax on Catlin-related integration costs | — | (4,147 | ) | — | (7,745 | ) | |||||||||
Operating net income (loss) (excluding Catlin-related integration costs) | $ | 220,341 | $ | 290,051 | $ | 434,700 | $ | 456,545 | |||||||
Per common share results - diluted: | |||||||||||||||
Net income (loss) attributable to common shareholders | $ | 1.21 | $ | 1.14 | $ | 1.80 | $ | 1.70 | |||||||
Operating net income (loss) | $ | 0.84 | $ | 0.96 | $ | 1.66 | $ | 1.46 | |||||||
Weighted average common shares outstanding: | |||||||||||||||
Basic | 258,375,286 | 260,989,627 | 257,652,845 | 263,327,347 | |||||||||||
Diluted (3) | 263,821,785 | 264,942,669 | 262,610,119 | 267,279,097 | |||||||||||
Diluted - For Operating net income per share | 263,821,785 | 264,942,669 | 262,610,119 | 267,279,097 |
(U.S. dollars in thousands, except per share amounts) | Three Months Ended | Six Months Ended | |||||||||||||
June 30, | June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Return on common shareholders' equity: | |||||||||||||||
Opening common shareholders' equity | $ | 9,628,529 | $ | 10,974,884 | $ | 9,848,317 | $ | 10,938,512 | |||||||
Closing common shareholders' equity (at period end) | 9,660,011 | 11,080,552 | 9,660,011 | 11,080,552 | |||||||||||
Average common shareholders' equity for the period | 9,644,270 | 11,027,718 | 9,754,164 | 11,009,532 | |||||||||||
Opening AOCI | 312,255 | 844,974 | 889,431 | 715,546 | |||||||||||
Closing AOCI (at period end) | 51,264 | 921,165 | 51,264 | 921,165 | |||||||||||
Average AOCI for the period | 181,760 | 883,070 | 470,348 | 818,356 | |||||||||||
Average common shareholders' equity for the period excluding average AOCI | 9,462,511 | 10,144,649 | 9,283,817 | 10,191,177 | |||||||||||
Annualized net income (loss) | 1,275,984 | 1,206,480 | 943,288 | 908,926 | |||||||||||
Annualized operating net income (loss) | 881,364 | 1,020,320 | 869,400 | 782,446 | |||||||||||
Annualized operating net income (loss) (excluding Catlin-related integration costs) | 881,364 | 1,160,206 | 869,400 | 913,090 | |||||||||||
Annualized return on average common shareholders' equity | 13.2 | % | 10.9 | % | 9.7 | % | 8.3 | % | |||||||
Annualized operating return on average common shareholders' equity | 9.1 | % | 9.3 | % | 8.9 | % | 7.1 | % | |||||||
Annualized operating return on average common shareholders' equity excluding AOCI | 9.3 | % | 10.1 | % | 9.4 | % | 7.7 | % | |||||||
Annualized operating return on average common shareholders' equity excluding Catlin-related integration costs | 9.1 | % | 10.5 | % | 8.9 | % | 8.3 | % | |||||||
Annualized operating return on average common shareholders' equity excluding Catlin-related integration costs and AOCI | 9.3 | % | 11.4 | % | 9.4 | % | 9.0 | % |
June 30, 2018 | March 31, 2018 | December 31, 2017 | |||||||||
Book value per common share: | |||||||||||
Closing common shares outstanding - basic | 258,780,274 | 258,171,836 | 256,033,895 | ||||||||
Closing common shares outstanding - diluted | 264,188,936 | 263,605,861 | 258,901,212 | ||||||||
Book value per common share | $ | 37.33 | $ | 37.30 | $ | 38.46 | |||||
Fully diluted book value per common share | $ | 36.56 | $ | 36.53 | $ | 38.04 | |||||
Goodwill and other intangible assets | $ | 2,201,085 | $ | 2,230,506 | $ | 2,225,751 | |||||
Tangible book value | $ | 7,458,926 | $ | 7,398,023 | $ | 7,622,566 | |||||
Fully diluted tangible book value per common share | $ | 28.23 | $ | 28.06 | $ | 29.44 |
(1) | Investment results for the Life Funds Withheld Assets - including interest income, unrealized gains and losses, and gains and losses from sales - are passed directly to the reinsurer pursuant to a contractual arrangement which is accounted for as a derivative. Changes in the fair value of the embedded derivative associated with the GreyCastle Life Retrocession Arrangements are reflected within "Net realized and unrealized (gains) losses on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets" in the reconciliation. |
(2) | The tax impact was calculated at the applicable jurisdictional effective tax rate, which could differ from the Company’s effective tax rate. |
(3) | Diluted weighted average number of common shares outstanding is used to calculate per share data except when it is anti-dilutive to earnings per share or when there is a net loss. When it is anti-dilutive or when a net loss occurs, basic weighted average common shares outstanding is utilized in the calculation of net loss per share and net operating loss per share. |
Natural Catastrophe Losses | Natural Catastrophe Loss Ratio Impact | ||||||||||||
Three Months Ended June 30, | Three Months Ended June 30, | ||||||||||||
(U.S. dollars in thousands) | 2018 | 2017 | 2018 | 2017 | |||||||||
Insurance | $ | 78,875 | $ | 79,389 | 4.5 | % | 4.8 | % | |||||
Reinsurance | (2,112 | ) | 12,759 | (0.2 | )% | 1.5 | % | ||||||
Total P&C | $ | 76,763 | $ | 92,148 | 2.9 | % | 3.7 | % | |||||
Six Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
(U.S. dollars in thousands) | 2018 | 2017 | 2018 | 2017 | |||||||||
Insurance | $ | 142,350 | $ | 149,719 | 4.2 | % | 4.6 | % | |||||
Reinsurance | 7,606 | 38,504 | 0.4 | % | 2.2 | % | |||||||
Total P&C | $ | 149,956 | $ | 188,223 | 2.8 | % | 3.8 | % |
Interest Rate Movement for the three months ended June 30, 2018 (1) (‘+’/‘-’ represents increases / decreases in interest rates) | Credit Spread Movement for the three months ended June 30, 2018 (1) (‘+’/‘-’ represents widening / tightening of credit spreads) | Equity Market Price Movement for the three months ended June 30, 2018 (1) (‘+’/‘-’ represents increases / decreases in common equity market benchmarks) | |||
United States | +18 basis points (5 year Treasury) | +2 basis points (US Corporate A rated) | -0.12% (MSCI All Countries World Index) | ||
-1 basis points (US Mortgage Master Index) | +2.93% (S&P500 Index) | ||||
United Kingdom | -9 basis points (5 year Gilt) | +9 basis points (UK Corporate, AA rated) | |||
Euro-zone | -20 basis points (5 year Bund) | +13 basis points (Europe Corporate, A rated) |
(1) | Source: Bloomberg Finance L.P. |
Interest Rate Movement for the six months ended June 30, 2018 (1) ('+'/'-' represents increases / decreases in interest rates) | Credit Spread Movement for the six months ended June 30, 2018 (1) ('+'/'-' represents widening / tightening of credit spreads) | Equity Market Price Movement for the six months ended June 30, 2018 (1) ('+'/'-' represents increases / decreases in common equity market benchmarks) | |||
United States | +53 basis points (5 year Treasury) | +21 basis points (US Corporate A rated) | -1.53% (MSCI All Countries World Index) | ||
+3 basis points (US Mortgage Master Index) | +1.67% (S&P500 Index) | ||||
United Kingdom | +30 basis points (5 year Gilt) | +16 basis points (UK Corporate, AA rated) | |||
Euro-zone | -10 basis points (5 year Bund) | +18 basis points (Europe Corporate, A rated) |
(1) | Source: Bloomberg Finance L.P. |
1-in-100 Event | 1-in-250 Event | ||||||||||
Geographical Zone (U.S. dollars in millions) | Peril | Measurement Date of In-Force Exposures (1) | Probable Maximum Loss (2) | Probable Maximum Loss (2) | |||||||
North Atlantic | Windstorm | April 1, 2018 | $ | 630 | $ | 1,561 | |||||
North America | Earthquake | April 1, 2018 | $ | 614 | $ | 856 | |||||
Europe | Windstorm | April 1, 2018 | $ | 653 | $ | 756 | |||||
Japan | Earthquake | April 1, 2018 | $ | 550 | $ | 656 | |||||
Japan | Windstorm | April 1, 2018 | $ | 429 | $ | 505 |
(1) | Detailed analyses of aggregated in-force exposures and probable maximum loss levels are done periodically. The measurement dates represent the date of the last completed detailed analysis by geographical zone. |
(2) | Probable maximum losses, which include secondary uncertainty that incorporates variability around the expected probable maximum loss for each event, do not represent our maximum potential exposures and are pre-tax. |
Three Months Ended | Percentage | Six Months Ended | Percentage | ||||||||||||||||||
June 30, | Change | June 30, | Change | ||||||||||||||||||
(U.S. dollars in thousands) | 2018 | 2017 | 2018 vs 2017 | 2018 | 2017 | 2018 vs 2017 | |||||||||||||||
Gross premiums written | $ | 2,881,921 | $ | 2,576,754 | 11.8 | % | $ | 5,748,460 | $ | 5,270,970 | 9.1 | % | |||||||||
Net premiums written | 1,929,564 | 1,741,201 | 10.8 | % | 3,411,431 | 3,249,792 | 5.0 | % | |||||||||||||
Net premiums earned | 1,748,355 | 1,652,304 | 5.8 | % | 3,414,144 | 3,287,619 | 3.8 | % | |||||||||||||
Less: Net losses and loss expenses | 1,224,756 | 1,077,087 | 13.7 | % | 2,289,748 | 2,137,450 | 7.1 | % | |||||||||||||
Less: Acquisition costs | 237,694 | 231,908 | 2.5 | % | 459,656 | 442,391 | 3.9 | % | |||||||||||||
Less: Operating expenses | 306,585 | 288,681 | 6.2 | % | 622,965 | 574,410 | 8.5 | % | |||||||||||||
Underwriting profit (loss) | $ | (20,680 | ) | $ | 54,628 | N/M | $ | 41,775 | $ | 133,368 | (68.7 | )% | |||||||||
Net results – structured products | 1,810 | 1,981 | (8.6 | )% | 3,913 | 4,250 | (7.9 | )% | |||||||||||||
Net fee income and other (expense) | (4,991 | ) | (2,826 | ) | 76.6 | % | (11,694 | ) | (859 | ) | N/M |
* | N/M - Not Meaningful |
Three Months Ended | Percentage | Six Months Ended | Percentage | ||||||||||||||||||
June 30, | Change | June 30, | Change | ||||||||||||||||||
(U.S. dollars in thousands) | 2018 | 2017 | 2018 vs 2017 | 2018 | 2017 | 2018 vs 2017 | |||||||||||||||
Global Lines | $ | 1,058,850 | $ | 948,647 | 11.6 | % | $ | 2,031,095 | $ | 1,947,051 | 4.3 | % | |||||||||
International | 615,006 | 519,903 | 18.3 | % | 1,605,753 | 1,359,882 | 18.1 | % | |||||||||||||
North America | 1,208,065 | 1,108,204 | 9.0 | % | 2,111,612 | 1,964,037 | 7.5 | % | |||||||||||||
Total | $ | 2,881,921 | $ | 2,576,754 | 11.8 | % | $ | 5,748,460 | $ | 5,270,970 | 9.1 | % |
▪ | Global Lines - increase of 11.6%, for the three months ended June 30, 2018, is mainly driven by higher new business in political risk & trade credit business lines, higher retention in crisis management and increases on current year and prior year contracts in London wholesale casualty business lines. |
▪ | International - increase of 18.3%, for the three months ended June 30, 2018, is attributable to an improvement in rates in international property and international financial lines. |
▪ | North America - increase of 9.0%, for the three months ended June 30, 2018, is due to higher new business in North America construction lines and expansion on a large captive account in North America property business. |
▪ | Global Lines - increase of 4.3%, for the six months ended June 30, 2018, is mainly driven by higher retention in accident & health and crisis management and increases on current year and prior year contracts in London wholesale casualty business lines. |
▪ | International - increase of 18.1%, for the six months ended June 30, 2018, is attributable to new business in international casualty and favorable pricing in international property and international financial lines. |
▪ | North America - increase of 7.5%, for the six months ended June 30, 2018, due to higher new business in construction, growth in cybertech business lines and expansion on a large captive account in North America property open market business. |
Three Months Ended | Percentage | Six Months Ended | Percentage | |||||||||||||
June 30, | Point Change | June 30, | Point Change | |||||||||||||
2018 | 2017 | 2018 vs 2017 | 2018 | 2017 | 2018 vs 2017 | |||||||||||
Loss and loss expense ratio | 70.1 | % | 65.2 | % | 4.9 | 67.1 | % | 65.0 | % | 2.1 | ||||||
Acquisition expense ratio | 13.6 | % | 14.0 | % | (0.4 | ) | 13.5 | % | 13.5 | % | — | |||||
Operating expense ratio | 17.5 | % | 17.5 | % | — | 18.2 | % | 17.4 | % | 0.8 | ||||||
Underwriting expense ratio | 31.1 | % | 31.5 | % | (0.4 | ) | 31.7 | % | 30.9 | % | 0.8 | |||||
Combined ratio | 101.2 | % | 96.7 | % | 4.5 | 98.8 | % | 95.9 | % | 2.9 |
Three Months Ended | Percentage | Six Months Ended | Percentage | ||||||||||||||
June 30, | Point Change | June 30, | Point Change | ||||||||||||||
2018 | 2017 | 2018 vs 2017 | 2018 | 2017 | 2018 vs 2017 | ||||||||||||
Loss and loss expense ratio | 70.1 | % | 65.2 | % | 4.9 | 67.1 | % | 65.0 | % | 2.1 | |||||||
Prior year development | (3.0 | )% | 1.0 | % | (4.0 | ) | (1.4 | )% | 0.7 | % | (2.1 | ) | |||||
Loss ratio excluding prior year development | 67.1 | % | 66.2 | % | 0.9 | 65.7 | % | 65.7 | % | — | |||||||
Net natural catastrophe losses | (4.5 | )% | (4.8 | )% | 0.3 | (4.2 | )% | (4.6 | )% | 0.4 | |||||||
Loss ratio excluding prior year development and net natural catastrophe losses | 62.6 | % | 61.4 | % | 1.2 | 61.5 | % | 61.1 | % | 0.4 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
(U.S. dollars in thousands) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Professional | $ | (1,186 | ) | $ | (56,385 | ) | $ | (3,016 | ) | $ | (56,390 | ) | |||
Casualty and other | (28,806 | ) | (77,215 | ) | (33,921 | ) | (81,985 | ) | |||||||
Property | 69,251 | 99,766 | 70,508 | 99,847 | |||||||||||
Specialty | 12,624 | 16,607 | 13,017 | 16,659 | |||||||||||
Total | $ | 51,883 | $ | (17,227 | ) | $ | 46,588 | $ | (21,869 | ) |
• | For casualty lines, net prior year development was $28.8 million favorable. This was driven by better than expected loss experience reported in the 2015 and prior years for international casualty and across all years for global risk management. This was partially offset by deteriorations in the excess and surplus portfolio to recognize changes in the composition of the business in recent years. |
• | For property lines, net prior year development was $69.3 million unfavorable. This was driven by significant large loss experience on the 2017 accident year, deteriorations in both catastrophe and non-catastrophe losses for the London wholesale property book and worse than expected attritional experience reported on the international open market and energy property portfolios. |
• | For specialty lines, net prior year development was $12.6 million unfavorable. This was driven by worse than expected attritional loss experience reported in marine, aerospace, fine art and specie and crisis management portfolios, predominantly on the 2017 accident year. |
Three Months Ended | Percentage | Six Months Ended | Percentage | ||||||||||||||||||
June 30, | Change | June 30, | Change | ||||||||||||||||||
2018 | 2017 | 2018 vs 2017 | 2018 | 2017 | 2018 vs 2017 | ||||||||||||||||
Net investment income - structured products | $ | 6,693 | $ | 6,844 | (2.2 | )% | $ | 13,313 | $ | 13,654 | (2.5 | )% | |||||||||
Interest expense - structured products | 4,882 | 4,863 | 0.4 | % | 9,398 | 9,404 | (0.1 | )% | |||||||||||||
Operating expenses - structured products | 1 | — | 100.0 | % | 2 | — | 100.0 | % | |||||||||||||
Net investment results - structured products | $ | 1,810 | $ | 1,981 | (8.6 | )% | $ | 3,913 | $ | 4,250 | (7.9 | )% |
Three Months Ended | Percentage | Six Months Ended | Percentage | ||||||||||||||||||
June 30, | Change | June 30, | Change | ||||||||||||||||||
(U.S. dollars in thousands) | 2018 | 2017 | 2018 vs 2017 | 2018 | 2017 | 2018 vs 2017 | |||||||||||||||
Gross premiums written | $ | 1,048,352 | $ | 977,676 | 7.2 | % | $ | 3,108,953 | $ | 2,905,066 | 7.0 | % | |||||||||
Net premiums written | 889,675 | 905,240 | (1.7 | )% | 2,560,419 | 2,376,409 | 7.7 | % | |||||||||||||
Net premiums earned | 944,309 | 861,789 | 9.6 | % | 1,875,701 | 1,745,955 | 7.4 | % | |||||||||||||
Less: Net losses and loss expenses | 496,553 | 451,996 | 9.9 | % | 1,053,567 | 975,089 | 8.0 | % | |||||||||||||
Less: Acquisition costs | 232,538 | 200,394 | 16.0 | % | 473,392 | 424,473 | 11.5 | % | |||||||||||||
Less: Operating expenses | 80,309 | 69,435 | 15.7 | % | 153,848 | 141,192 | 9.0 | % | |||||||||||||
Underwriting profit (loss) | $ | 134,909 | $ | 139,964 | (3.6 | )% | $ | 194,894 | $ | 205,201 | (5.0 | )% | |||||||||
Net results – structured products | 6,572 | 942 | N/M | 7,880 | 1,587 | N/M | |||||||||||||||
Net fee income and other | 1,140 | 694 | 64.3 | % | 2,032 | 1,380 | 47.2 | % |
* | N/M - Not Meaningful |
Three Months Ended | Percentage | Six Months Ended | Percentage | ||||||||||||||||||
June 30, | Change | June 30, | Change | ||||||||||||||||||
(U.S. dollars in thousands) | 2018 | 2017 | 2018 vs 2017 | 2018 | 2017 | 2018 vs 2017 | |||||||||||||||
Bermuda | $ | 446,836 | $ | 414,352 | 7.8 | % | $ | 964,182 | $ | 868,069 | 11.1 | % | |||||||||
North America | 184,672 | 191,106 | (3.4 | )% | 492,736 | 496,902 | (0.8 | )% | |||||||||||||
London | 209,266 | 184,782 | 13.3 | % | 561,057 | 492,648 | 13.9 | % | |||||||||||||
EMEA | 54,747 | 46,307 | 18.2 | % | 587,292 | 588,239 | (0.2 | )% | |||||||||||||
LAC | 152,831 | 141,129 | 8.3 | % | 503,686 | 459,208 | 9.7 | % | |||||||||||||
Total | $ | 1,048,352 | $ | 977,676 | 7.2 | % | $ | 3,108,953 | $ | 2,905,066 | 7.0 | % |
▪ | Bermuda - increase of 7.8%, for the three months ended June 30, 2018, mainly due to additional business underwritten with a key client in the property treaty line of business. |
▪ | North America - decrease of 3.4%, for the three months ended June 30, 2018, primarily driven by cancellations within the casualty and property treaty lines of business. These cancellations were partially offset by new business written within the accident & health line. |
▪ | London - increase of 13.3%, for the three months ended June 30, 2018, predominantly from new business and renewals at improved rates. |
▪ | EMEA - increase of 18.2%, for the three months ended June 30, 2018, mainly from new business and a reduced rate of cancellations year over year within the casualty line of business. |
▪ | LAC - increase of 8.3%, for the three months ended June 30, 2018, driven by new business within the crop and other lines of business. This increase was partially offset by cancellations across the book. |
▪ | Bermuda - increase of 11.1%, for the six months ended June 30, 2018, primarily due to new business within the property book. In addition, increased premium was achieved in this region as a result of the inclusion of the marine energy proportional book, which was transferred from our EMEA operations. |
▪ | North America - decrease of 0.8%, for the six months ended June 30, 2018, driven by cancellations within the casualty and property treaty line of business due to non-renewals. This was partially offset by new business. |
▪ | London - increase of 13.9%, for the six months ended June 30, 2018, primarily driven by new business and rate improvements in the property book and casualty line of business. |
▪ | EMEA - decrease of 0.2%, for the six months ended June 30, 2018, largely attributable to cancellations, share reductions mainly within the property lines, and the transfer of the marine energy proportional book to Bermuda. The decrease was partially offset by new business, predominantly within the casualty and property lines of business. |
▪ | LAC - increase of 9.7%, for the six months ended June 30, 2018, driven by new business within crop, other and credit lines of business. In addition, during the period, there was favorable foreign exchange gains driven by the Chinese Yuan and the Thai Baht strengthening against the U.S. dollar compared to the same period of 2017. |
Three Months Ended | Percentage | Six Months Ended | Percentage | ||||||||||||
June 30, | Point Change | June 30, | Point Change | ||||||||||||
2018 | 2017 | 2018 vs 2017 | 2018 | 2017 | 2018 vs 2017 | ||||||||||
Loss and loss expense ratio | 52.6 | % | 52.4 | % | 0.2 | 56.2 | % | 55.8 | % | 0.4 | |||||
Acquisition expense ratio | 24.6 | % | 23.3 | % | 1.3 | 25.2 | % | 24.3 | % | 0.9 | |||||
Operating expense ratio | 8.5 | % | 8.1 | % | 0.4 | 8.2 | % | 8.1 | % | 0.1 | |||||
Underwriting expense ratio | 33.1 | % | 31.4 | % | 1.7 | 33.4 | % | 32.4 | % | 1.0 | |||||
Combined ratio | 85.7 | % | 83.8 | % | 1.9 | 89.6 | % | 88.2 | % | 1.4 |
Three Months Ended | Percentage | Six Months Ended | Percentage | |||||||||||||
June 30, | Point Change | June 30, | Point Change | |||||||||||||
2018 | 2017 | 2018 vs 2017 | 2018 | 2017 | 2018 vs 2017 | |||||||||||
Loss and loss expense ratio | 52.6 | % | 52.4 | % | 0.2 | 56.2 | % | 55.8 | % | 0.4 | ||||||
Prior year development | 6.4 | % | 8.1 | % | (1.7 | ) | 3.4 | % | 2.4 | % | 1.0 | |||||
Loss ratio excluding prior year development | 59.0 | % | 60.5 | % | (1.5 | ) | 59.6 | % | 58.2 | % | 1.4 | |||||
Net natural catastrophe losses | 0.2 | % | (1.5 | )% | 1.7 | (0.4 | )% | (2.2 | )% | 1.8 | ||||||
Loss ratio excluding prior year development and net natural catastrophe losses | 59.2 | % | 59.0 | % | 0.2 | 59.2 | % | 56.0 | % | 3.2 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
(U.S. dollars in thousands) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Property and other short-tail lines | $ | (43,889 | ) | $ | (55,109 | ) | $ | (62,883 | ) | $ | (110,025 | ) | |||
Casualty and other long-tail lines | (16,908 | ) | (14,396 | ) | (1,755 | ) | 69,166 | ||||||||
Total | $ | (60,797 | ) | $ | (69,505 | ) | $ | (64,638 | ) | $ | (40,859 | ) |
▪ | Net favorable prior year development for the short-tail lines totaled $43.9 million. This was driven primarily by better than expected development on attritional losses on the Property, Marine and Crop books and release of general catastrophe reserves, partially offset by strengthening on older catastrophes and large losses. |
• | Net favorable prior year development for the long-tail lines totaled $16.9 million. Details of the significant components are as follows: |
• | For casualty lines, net prior year development was $9.1 million favorable mainly due to better than expected development on attritional losses, primarily on the North America book. |
• | For other lines, net prior year development was $7.8 million favorable due to better than expected attritional experience on the Credit & Surety book. |
• | The acquisition expense ratio deteriorations, of 1.3 and 0.9 percentage points for the three and six months ended June 30, 2018, respectively, were predominantly resulting from an increase from a material inception written in Bermuda, as well as increased outwards profit commissions. |
• | The operating expense ratio deteriorations of 0.4 and 0.1 percentage points, for the three and six months ended June 30, 2018, respectively, were driven by increasing compensation costs in Bermuda and EMEA. |
Three Months Ended | Percentage | Six Months Ended | Percentage | ||||||||||||||||||
June 30, | Change | June 30, | Change | ||||||||||||||||||
2018 | 2017 | 2018 vs 2017 | 2018 | 2017 | 2018 vs 2017 | ||||||||||||||||
Net investment income - structured products | $ | 5,607 | $ | 6,675 | (16.0 | )% | $ | 11,298 | $ | 13,240 | (14.7 | )% | |||||||||
Interest expense - structured products | (965 | ) | 5,733 | N/M | 3,418 | 11,653 | (70.7 | )% | |||||||||||||
Net investment results - structured products | $ | 6,572 | $ | 942 | N/M | $ | 7,880 | $ | 1,587 | N/M |
* | N/M - Not Meaningful |
Three Months Ended | Six Months Ended | ||||||||||
June 30, | June 30, | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
Total Return on Investments (1) | 0.4 | % | 1.0 | % | (0.1 | )% | 1.9 | % | |||
Hedge fund portfolio (2) (3) | 1.7 | % | 0.9 | % | 4.4 | % | 3.0 | % | |||
Public equity portfolio (2) | 7.3 | % | 1.0 | % | 2.6 | % | 6.8 | % |
(1) | The performance of investment portfolios is measured on a local currency basis. For the aggregate performance calculation, respective local currency balances are translated to U.S. dollars using quarter end rates to calculate composite portfolio results. |
(2) | Performance on these portfolios is included in the Total Return on Investments above. |
(3) | Performance on the hedge fund portfolio reflects the three and six months ended February 28, 2018 and February 28, 2017, respectively, for both equity and non-equity accounted hedge funds. |
Three Months Ended | Percentage | Six Months Ended | Percentage | ||||||||||||||||||
June 30, | Change | June 30, | Change | ||||||||||||||||||
(U.S. dollars in thousands) | 2018 | 2017 | 2018 vs 2017 | 2018 | 2017 | 2018 vs 2017 | |||||||||||||||
Net investment income - excluding Life Funds Withheld Assets | $ | 201,536 | $ | 177,235 | 13.7 | % | $ | 389,619 | $ | 344,403 | 13.1 | % | |||||||||
Net income (loss) from investment affiliates | 16,548 | 30,818 | (46.3 | )% | 62,217 | 69,079 | (9.9 | )% | |||||||||||||
Net realized investment gains (losses) - excluding Life Funds Withheld Assets | 27,396 | 49,169 | (44.3 | )% | (33,447 | ) | 53,387 | N/M | |||||||||||||
Net realized and unrealized gains (losses) on derivative instruments (1) | 16,126 | (906 | ) | N/M | 20,347 | (7,975 | ) | N/M |
(1) | For a summary of realized and unrealized losses on all derivative instruments, see Item 1, Note 5, "Derivative Instruments," to the Unaudited Consolidated Financial Statements included herein. |
* | N/M - Not Meaningful |
Three Months Ended | Percentage | Six Months Ended | Percentage | ||||||||||||||||||
June 30, | Change | June 30, | Change | ||||||||||||||||||
(U.S. dollars in thousands) | 2018 | 2017 | 2018 vs 2017 | 2018 | 2017 | 2018 vs 2017 | |||||||||||||||
Net income (loss) from operating affiliates | $ | 51,187 | $ | 42,704 | 19.9 | % | $ | 61,469 | $ | 56,313 | 9.2 | % | |||||||||
Foreign exchange (gains) losses | (12,140 | ) | (5,643 | ) | 115.1 | % | (2,299 | ) | (8,979 | ) | (74.4 | )% | |||||||||
Corporate operating expenses | 71,308 | 102,162 | (30.2 | )% | 141,351 | 201,035 | (29.7 | )% | |||||||||||||
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets | (36,120 | ) | (34,596 | ) | 4.4 | % | (13,199 | ) | (84,697 | ) | (84.4 | )% | |||||||||
Interest expense (1) | 44,769 | 43,422 | 3.1 | % | 89,415 | 83,672 | 6.9 | % | |||||||||||||
Income tax expense (benefit) | 27,036 | 29,006 | (6.8 | )% | 58,938 | 42,098 | 40.0 | % | |||||||||||||
Non-controlling interests | 17,804 | 8,423 | 111.4 | % | 26,389 | 69,429 | (62.0 | )% |
(1) | Interest expense includes costs related to our debt and collateral facilities and does not include deposit liability accretion, which is included in Net investment results - structured products. |
Three Months Ended | Percentage | Six Months Ended | Percentage | ||||||||||||||||||
June 30, | Change | June 30, | Change | ||||||||||||||||||
(U.S. dollars in thousands) | 2018 | 2017 | 2018 vs 2017 | 2018 | 2017 | 2018 vs 2017 | |||||||||||||||
Net income (loss) from investment manager affiliates | $ | 1,975 | $ | 36,108 | (94.5 | )% | $ | 12,086 | $ | 39,405 | (69.3 | )% | |||||||||
Net income (loss) from strategic operating affiliates | 49,212 | 6,596 | N/M | 49,383 | 16,908 | 192.1 | % | ||||||||||||||
Net income (loss) from operating affiliates | $ | 51,187 | $ | 42,704 | 19.9 | % | $ | 61,469 | $ | 56,313 | 9.2 | % |
* | N/M - Not Meaningful |
June 30, 2018 | December 31, 2017 | ||||||||||||
(U.S. dollars in thousands) | Carrying Value | Percent of Total | Carrying Value | Percent of Total | |||||||||
Fixed maturities - AFS (1): | |||||||||||||
U.S. Government | $ | 3,960,291 | 11.1 | % | $ | 4,362,740 | 11.8 | % | |||||
U.S. States, municipalities and political subdivisions | 1,858,142 | 5.2 | % | 2,064,640 | 5.6 | % | |||||||
Non-U.S. Governments | 5,115,860 | 14.4 | % | 5,201,581 | 14.0 | % | |||||||
Corporate | 9,950,095 | 27.9 | % | 9,795,133 | 26.4 | % | |||||||
RMBS | 4,254,036 | 11.9 | % | 4,724,402 | 12.7 | % | |||||||
CMBS | 1,363,850 | 3.8 | % | 1,244,017 | 3.4 | % | |||||||
Other asset-backed securities | 1,699,143 | 4.8 | % | 1,509,363 | 4.1 | % | |||||||
Total fixed maturities - AFS | $ | 28,201,417 | 79.1 | % | $ | 28,901,876 | 77.9 | % | |||||
Short-term investments | 623,113 | 1.7 | % | 815,481 | 2.2 | % | |||||||
Equity securities | 644,711 | 1.8 | % | 713,967 | 1.9 | % | |||||||
Investments in affiliates | 1,904,010 | 5.4 | % | 1,911,996 | 5.2 | % | |||||||
Other investments | 1,151,706 | 3.2 | % | 1,163,863 | 3.1 | % | |||||||
Total investments | $ | 32,524,957 | 91.2 | % | $ | 33,507,183 | 90.3 | % | |||||
Cash and cash equivalents | 2,903,070 | 8.2 | % | 3,435,953 | 9.3 | % | |||||||
Restricted cash | 47,158 | 0.1 | % | 74,395 | 0.2 | % | |||||||
Net receivable (payable) for investments sold (purchased) | (29,016 | ) | (0.1 | )% | (131,474 | ) | (0.4 | )% | |||||
Accrued investment income | 220,001 | 0.6 | % | 220,299 | 0.6 | % | |||||||
Total investments and cash and cash equivalents - excluding Life Funds Withheld Assets | $ | 35,666,170 | 100.0 | % | $ | 37,106,356 | 100.0 | % |
(1) | Carrying value represents the fair value of AFS fixed maturities. |
June 30, 2018 | December 31, 2017 | ||||||||||||
Investments by Credit Rating (1) (U.S. dollars in millions) | Carrying Value | Percent of Total | Carrying Value | Percent of Total | |||||||||
AAA | $ | 13,665 | 47.4 | % | $ | 14,511 | 48.8 | % | |||||
AA | 4,611 | 16.0 | % | 4,826 | 16.2 | % | |||||||
A | 6,208 | 21.5 | % | 6,077 | 20.5 | % | |||||||
BBB | 3,348 | 11.6 | % | 3,322 | 11.2 | % | |||||||
BB and below/not rated | 992 | 3.5 | % | 981 | 3.3 | % | |||||||
Total | $ | 28,824 | 100.0 | % | $ | 29,717 | 100.0 | % |
(1) | The credit rating for each asset reflected above was principally determined based on the weighted average rating of the individual securities from Standard & Poor's, Moody's Investors Service and Fitch Ratings (when available). U.S. Agency debt and related mortgage-backed securities, whether with implicit or explicit government support, reflect the credit quality rating of the U.S. government for the purpose of these calculations. For U.S. Government and government agencies, the average rating remains AAA as only one of the three major rating agencies downgraded the U.S. from AAA to AA+ in 2011. |
• | Gross unrealized losses of $127.9 million related to Government holdings. Securities in a gross unrealized loss position had a fair value of $6.9 billion at June 30, 2018. |
• | Gross unrealized losses of $206.0 million related to Corporate holdings. Securities in a gross unrealized loss position had a fair value of $7.2 billion at June 30, 2018. |
• | Gross unrealized losses of $117.0 million related to RMBS securities. Securities in an unrealized loss position had a fair value of $3.7 billion at June 30, 2018. |
June 30, 2018 | |||||||
Security Type and Length of Time in a Continual Unrealized Loss Position (U.S. dollars in thousands) | Amount of Unrealized Loss | Fair Value of Securities in an Unrealized Loss Position | |||||
Fixed Maturities and Short-Term Investments | |||||||
Less than 6 months | $ | (74,301 | ) | $ | 6,478,415 | ||
At least 6 months but less than 12 months | (271,424 | ) | 10,084,763 | ||||
At least 12 months but less than 2 years | (85,677 | ) | 2,454,654 | ||||
2 years and over | (75,300 | ) | 639,519 | ||||
Total | $ | (506,702 | ) | $ | 19,657,351 |
June 30, 2018 | |||||||
Maturity profile in years of AFS fixed income securities in a gross unrealized loss position (U.S. dollars in thousands) | Amount of Unrealized Loss | Fair Value of Securities in an Unrealized Loss Position | |||||
Less than 1 year remaining | $ | (13,332 | ) | $ | 1,491,490 | ||
At least 1 year but less than 5 years remaining | (178,613 | ) | 8,498,026 | ||||
At least 5 years but less than 10 years remaining | (120,668 | ) | 3,709,772 | ||||
At least 10 years but less than 20 years remaining | (7,846 | ) | 173,937 | ||||
At least 20 years or more remaining | (13,474 | ) | 212,881 | ||||
RMBS | (117,031 | ) | 3,720,851 | ||||
CMBS | (48,414 | ) | 1,210,089 | ||||
Other asset-backed securities | (7,324 | ) | 640,305 | ||||
Total | $ | (506,702 | ) | $ | 19,657,351 |
(U.S. dollars in thousands) | Total Assets and Liabilities Carried at Fair Value at June 30, 2018 | Fair Value of Level 3 Assets and Liabilities | Level 3 Assets and Liabilities as a Percentage of Total Assets and Liabilities Carried at Fair Value, by Class | |||||||
Assets | ||||||||||
Fixed maturities, at fair value | ||||||||||
U.S. Government | $ | 3,960,291 | $ | 5,020 | 0.1 | % | ||||
U.S. States, municipalities and political subdivisions | 1,858,142 | — | — | % | ||||||
Non-U.S. Governments | 5,115,860 | — | — | % | ||||||
Corporate | 9,950,095 | 2,047 | — | % | ||||||
RMBS | 4,254,036 | 5,947 | 0.1 | % | ||||||
CMBS | 1,363,850 | — | — | % | ||||||
Other asset-backed securities | 1,699,143 | — | — | % | ||||||
Total Fixed maturities, at fair value | $ | 28,201,417 | $ | 13,014 | — | % | ||||
Short-term investments, at fair value | 623,113 | — | — | % | ||||||
Total investments AFS | $ | 28,824,530 | $ | 13,014 | — | % | ||||
Cash equivalents (1) | 1,460,940 | — | — | % | ||||||
Equity securities, at fair value | 644,711 | — | — | % | ||||||
Other investments (2) | 751,312 | 218,222 | 29.0 | % | ||||||
Other assets (3) | 74,917 | 17,879 | 23.9 | % | ||||||
Total assets carried at fair value | $ | 31,756,410 | $ | 249,115 | 0.8 | % | ||||
Liabilities | ||||||||||
Other liabilities (4) | 40,024 | 17,822 | 44.5 | % | ||||||
Total liabilities carried at fair value | $ | 40,024 | $ | 17,822 | 44.5 | % |
(1) | Cash equivalents balances subject to fair value measurements include certificates of deposit and money market funds. |
(2) | Excluded from Other investments balances are $227.2 million at June 30, 2018 measured using Net Asset Value. Under current GAAP, these investments are excluded from the fair value hierarchy table. In addition, the Other investments balance excludes payment obligations that are carried at amortized cost, which totaled $173.2 million at June 30, 2018. For further information, see Item 8, Note 6, "Other Investments," to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017 |
(3) | Other assets include derivative instruments, reported on a gross basis. |
(4) | Other liabilities include derivative instruments, reported on a gross basis. |
(U.S. dollars in thousands) | June 30, 2018 | December 31, 2017 | |||||
Reinsurance balances receivable | $ | 1,318,428 | $ | 952,847 | |||
Reinsurance recoverable on future policy benefits (excluding balances related to the GreyCastle Life Retro Arrangements) | 10,920 | 8,277 | |||||
Reinsurance recoverable on unpaid losses and loss expenses | 7,234,200 | 7,280,549 | |||||
Bad debt reserve on unpaid losses and loss expenses recoverable and reinsurance balances receivable | (60,987 | ) | (63,836 | ) | |||
Net paid and unpaid losses and loss expenses recoverable and reinsurance balances receivable | $ | 8,502,561 | $ | 8,177,837 |
(U.S. dollars in thousands) | June 30, 2018 | June 30, 2017 | |||||
Operating activities | $ | (611,617 | ) | $ | (121,942 | ) | |
Investing activities | $ | 297,758 | $ | (105,550 | ) | ||
Financing activities | $ | (238,907 | ) | $ | (81,371 | ) | |
Effects of exchange rate changes on foreign currency cash | $ | (10,118 | ) | $ | 43,423 |
• | debt; |
• | letter of credit facilities and other sources of collateral; and |
• | revolving credit facilities. |
▪ | sufficient capital to maintain our financial strength and credit ratings, as issued by several rating agencies, at levels considered necessary by management to enable our key operating subsidiaries to compete; |
▪ | sufficient capital to enable our regulated subsidiaries to meet the regulatory capital levels required in the U.S., the U.K., Bermuda, Ireland, Switzerland, the Society of Lloyd's and other key markets; |
▪ | letters of credit and other forms of collateral that are required to be posted or deposited, as the case may be, by our operating subsidiaries that are "non-admitted" under U.S. state insurance regulations in order for the U.S. cedant to receive statutory credit for reinsurance. We also use letters of credit to support our operations at Lloyd's; and |
▪ | revolving credit facilities as a back-up for potential short-term liquidity needs. |
▪ | the credit available from banks may be reduced due to market conditions, resulting in our need to pledge our investment portfolio to customers, which could result in a lower investment yield; |
▪ | we may be downgraded by one or more rating agencies, which could trigger an event of default under certain credit facilities and could materially and negatively impact our business, financial condition, results of operations and/or liquidity; and |
▪ | the volume of business that our subsidiaries that are non-admitted in the U.S. are able to transact could be reduced if we are unable to obtain letter of credit facilities at an appropriate amount. |
(U.S. dollars in thousands) | June 30, 2018 | December 31, 2017 | |||||
Non-controlling interests - Series D preference ordinary shares of XLIT | $ | 287,143 | $ | 287,143 | |||
Non-controlling interests - Series E preference ordinary shares of XLIT | 669,778 | 669,778 | |||||
Non-controlling interests - Non-cumulative perpetual preference shares of Catlin-Bermuda | 518,582 | 518,582 | |||||
Non-controlling interests - Other | 121,492 | 137,500 | |||||
Common share capital | 9,660,011 | 9,848,317 | |||||
Total common shares and non-controlling interests | $ | 11,257,006 | $ | 11,461,320 | |||
Notes payable and debt | 3,217,123 | 3,220,769 | |||||
Total | $ | 14,474,129 | $ | 14,682,089 |
(U.S. dollars in thousands) | June 30, 2018 | December 31, 2017 | |||||
Common shareholders' equity - beginning of period | $ | 9,848,317 | $ | 10,938,512 | |||
Net income (loss) attributable to common shareholders | 471,644 | (560,398 | ) | ||||
Share buybacks | (2,056 | ) | (571,615 | ) | |||
Share issuances | 62,535 | 50,662 | |||||
Common share dividends | (115,402 | ) | (232,002 | ) | |||
Net current period OCI, net of tax | (620,214 | ) | 173,885 | ||||
Share-based compensation and other | 15,187 | 49,273 | |||||
Common shareholders' equity - end of period | $ | 9,660,011 | $ | 9,848,317 |
(U.S. dollars in thousands) | Payments Due by Period (2) | ||||||||||||||||||||
Debt Issuance: | Outstanding (1) | Year of Expiry | Less than 1 Year | 1 to 3 Years | 3 to 5 Years | After 5 Years | |||||||||||||||
$300 million, 2.30% Senior Notes due December 2018 | $ | 299,692 | 2018 | $ | 300,000 | $ | — | $ | — | $ | — | ||||||||||
Other debt | 13,660 | 2021 | — | — | 14,267 | — | |||||||||||||||
$400 million, 5.75% Senior Notes due October 2021 | 398,600 | 2021 | — | — | 400,000 | — | |||||||||||||||
$350 million, 6.375% Senior Notes due November 2024 | 349,303 | 2024 | — | — | — | 350,000 | |||||||||||||||
$500 million, 4.45% Subordinated Notes due March 2025 | 494,542 | 2025 | — | — | — | 500,000 | |||||||||||||||
$325 million, 6.25% Senior Notes due May 2027 | 323,610 | 2027 | — | — | — | 325,000 | |||||||||||||||
$300 million, 5.25% Senior Notes due December 2043 | 296,626 | 2043 | — | — | — | 300,000 | |||||||||||||||
$500 million, 5.5% Subordinated Notes due March 2045 | 473,024 | 2045 | — | — | — | 483,305 | |||||||||||||||
€500 million, 3.25% Subordinated Notes due June 2047 | 568,066 | 2047 | — | — | — | 577,600 | |||||||||||||||
Total debt carrying value | $ | 3,217,123 | $ | 300,000 | $ | — | $ | 414,267 | $ | 2,535,905 |
(1) | "Outstanding" data represent June 30, 2018 accreted values. |
(2) | "Payments Due by Period" data represents ultimate redemption values. |
(U.S. dollars in thousands) | Amount of Commitment Expiration by Period (1) | ||||||||||||||||||||||||
Facility Name: | Commitment | In Use/ Outstanding | Year of Expiry | Less than 1 Year | 1 to 3 Years | 3 to 5 Years | After 5 Years | ||||||||||||||||||
2016 Credit Agricole Facility I | $ | 125,000 | $ | 125,000 | 2019 | $ | — | $ | 125,000 | $ | — | $ | — | ||||||||||||
2016 Credit Agricole Facility II | 125,000 | 125,000 | 2019 | — | 125,000 | — | — | ||||||||||||||||||
2017 Commonwealth Bank Facility | 215,000 | 215,000 | 2020 | — | 215,000 | — | — | ||||||||||||||||||
2017 Credit Suisse Facility | 100,000 | 100,000 | 2020 | — | 100,000 | — | — | ||||||||||||||||||
FAL Facility I | 125,000 | 125,000 | 2020 | — | — | 125,000 | — | ||||||||||||||||||
FAL Facility II | 125,000 | 125,000 | 2020 | — | — | 125,000 | — | ||||||||||||||||||
FAL Facility III | 125,000 | 125,000 | 2020 | — | — | 125,000 | — | ||||||||||||||||||
FAL Facility IV | 125,000 | 125,000 | 2020 | — | — | 125,000 | — | ||||||||||||||||||
Syndicated Unsecured Facility (2) | 750,000 | 76,097 | 2021 | — | — | 750,000 | — | ||||||||||||||||||
2017 Commerzbank Facility | 100,000 | 100,000 | 2022 | — | — | 100,000 | — | ||||||||||||||||||
Total unsecured LOC facilities | $ | 1,915,000 | $ | 1,241,097 | $ | — | $ | 565,000 | $ | 1,350,000 | $ | — | |||||||||||||
Facilities collateralized by certain investment assets | 1,604,938 | 1,573,413 | — | — | 750,000 | 854,938 | |||||||||||||||||||
Total LOC facilities (3) | $ | 3,519,938 | $ | 2,814,510 | $ | — | $ | 565,000 | $ | 2,100,000 | $ | 854,938 |
(1) | See Item 8, Note 14(b), "Notes Payable and Debt and Financing Arrangements - Letter of Credit Facilities ("LOC") and Other Sources of Collateral," to the Consolidated Financial Statements included the Company's Annual Report on Form 10-K for the year ended December 31, 2017 for definition of terms used in this table. |
(2) | We have the option to increase the size of the Syndicated Facilities by an additional of $500 million across both such facilities. |
(3) | As of June 30, 2018, the portion of the total LOC facilities allowable to be utilized for revolving loans was $750.0 million. However, $76.1 million of this allowable portion was utilized to issue LOCs, leaving $673.9 million available either to issue additional LOCs or to support other operating or financing needs under these particular facilities. |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
(Foreign currency in U.S. dollars, in millions) | June 30, 2018 | December 31, 2017 | |||||
Canadian dollar (CAD) | $ | 350.3 | $ | 365.3 | |||
British pound sterling (GBP) | 275.7 | 115.9 | |||||
Euro (EUR) | 220.6 | (54.9 | ) | ||||
Australian dollar (AUD) | 106.4 | 185.8 | |||||
Yuan Renminbi (CNY) | (145.4 | ) | (112.9 | ) | |||
Other | (91.9 | ) | 43.2 | ||||
Total | $ | 715.7 | $ | 542.4 | |||
As a percentage of total net assets | 6.4 | % | 4.7 | % | |||
Absolute value of pre-tax impact of 10% movement of the U.S. dollar Shareholders' Equity | $ | 71.6 | $ | 54.2 | |||
Absolute value of pre-tax impact of 10% movement of the U.S. dollar Book Value per Share | 0.7 | % | 0.6 | % |
Top 10 Corporate holdings (1)(2) (U.S. dollars in millions) | Carrying Value | % of Corporate | Percentage of Aggregate Fixed Income Portfolio | |||||||
Bank Of America Corporation | $ | 185 | 1.9 | % | 0.6 | % | ||||
Wells Fargo & Company | 180 | 1.8 | % | 0.6 | % | |||||
JPMorgan Chase & Co. | 171 | 1.7 | % | 0.6 | % | |||||
Morgan Stanley | 169 | 1.7 | % | 0.6 | % | |||||
The Goldman Sachs Group, Inc. | 160 | 1.6 | % | 0.6 | % | |||||
HSBC Holdings plc | 157 | 1.6 | % | 0.5 | % | |||||
Citigroup Inc. | 149 | 1.5 | % | 0.5 | % | |||||
Anheuser-Busch InBev SA/NV | 133 | 1.3 | % | 0.5 | % | |||||
Credit Suisse Group AG | 105 | 1.1 | % | 0.4 | % | |||||
BP plc | 105 | 1.0 | % | 0.4 | % | |||||
Total | $ | 1,514 | 15.2 | % | 5.3 | % |
(1) | Government-guaranteed securities and Covered Bonds have been excluded from the above figures. |
(2) | Excludes short-term investments and accrued investment income. |
(U.S. dollars in millions) | Carrying Value (2) | Percentage of Structured Portfolio | ||||
RMBS | $ | 4,254.0 | 58.1 | % | ||
CMBS | 1,363.9 | 18.6 | % | |||
Other ABS (1) | 1,699.1 | 23.3 | % | |||
Total | $ | 7,317.0 | 100.0 | % |
(1) | Includes Covered Bonds. |
(2) | Excludes short-term investments and accrued investment income. |
(U.S. dollars in millions) | Interest Rate Risk (1) | Equity Risk (2) | Absolute Spread Risk (3) | Relative Spread Risk (4) | VaR (5) (6) | ||||||||||||||
Total Investment Portfolio (7) | $ | (1,174.6 | ) | $ | (290.9 | ) | $ | (1,056.5 | ) | $ | (81.8 | ) | $ | 725.6 | |||||
(I) Fixed Income Portfolio | (1,171.6 | ) | — | (1,052.8 | ) | (81.4 | ) | 798.3 | |||||||||||
(a) Cash & Short-term Investments | (6.4 | ) | — | (5.4 | ) | (0.3 | ) | 10.7 | |||||||||||
(b) Total Government Related | (404.2 | ) | — | (193.6 | ) | (4.1 | ) | 242.9 | |||||||||||
(c) Total Corporate Credit | (410.0 | ) | — | (443.6 | ) | (47.9 | ) | 283.8 | |||||||||||
(d) Total Structured Credit | (351.0 | ) | — | (410.2 | ) | (29.1 | ) | 291.3 | |||||||||||
(II) Non-Fixed Income Portfolio | — | (201.2 | ) | — | — | 242.9 | |||||||||||||
(e) Equity Portfolio | — | (50.4 | ) | — | — | 83.2 | |||||||||||||
(f) Hedge Fund Portfolio | — | (61.3 | ) | — | — | 94.9 | |||||||||||||
(g) Private Investments | — | (89.5 | ) | — | — | 94.6 | |||||||||||||
(III) Insurance and Other Strategic Investments | (3.0 | ) | (89.7 | ) | (3.7 | ) | (0.4 | ) | 112.1 |
(1) | The estimated impact on the fair value of our fixed income portfolio of an immediate hypothetical +100 bps adverse parallel shift in global bond curves. |
(2) | The estimated impact on the fair value of our investment portfolio of an immediate hypothetical -10% change in the value of equity exposures in our equity portfolio, certain equity-sensitive hedge fund investments and private equity investments. This includes our estimate of equity risk embedded in the hedge fund and private investments portfolios with such estimates utilizing market exposures provided to us by certain individual fund investments, internal statistical analyses, and/or various assumptions regarding illiquidity and concentrations. |
(3) | The estimated impact on the fair value of our fixed income portfolio of an immediate hypothetical +100 basis point increase in all global government related, corporate and structured security spreads to which our fixed income portfolio is exposed. This excludes exposure to credit spreads in our hedge fund, private investment and counterparty exposure. |
(4) | The estimated impact on the fair value of our fixed income portfolio of an immediate hypothetical +10% increase in all global government related, corporate and structured security spreads to which our fixed income portfolio is exposed. This excludes exposure to credit spreads in our hedge fund, private investment and counterparty exposure. |
(5) | The VaR results are based on a 95% confidence interval, with a one-year holding period, excluding foreign exchange rate risk. Our investment portfolio VaR at June 30, 2018 is not necessarily indicative of future VaR levels as these are based on statistical estimates of possible price changes and, therefore, exclude other sources of investment return such as coupon and dividend income. |
(6) | The VaR results are the standalone VaRs, based on the prescribed methodology, for each component of our total investment portfolio. The standalone VaRs of the individual components are non-additive, with the difference between the summation of the individual component VaRs and their respective aggregations being due to diversification benefits across the individual components. In the case of the VaR results for our Total Investment Portfolio, the results also include the impact associated with our insurance and other strategic investments. |
(7) | Our Total Investment Portfolio also includes our insurance and other strategic investments that do not form part of our Fixed Income Portfolio or Non-Fixed Income Portfolio. The individual results reported in the above table for our Total Investment Portfolio therefore represent the aggregate impact on our Fixed Income Portfolio, Non-Fixed Income Portfolio and the majority of our insurance and other strategic investments. |
ITEM 4. | CONTROLS AND PROCEDURES |
ITEM 1. | LEGAL PROCEEDINGS |
ITEM 1A. | RISK FACTORS |
• | Our current stock price reflects a market assumption that the merger will occur. In addition, as a result of the announcement of the merger agreement, trading in our common shares has increased substantially. If the merger is not consummated, the investment goals of our shareholders may be materially different than those of our shareholders on a pre-merger announcement basis; |
• | Under certain circumstances, we may be required to pay a termination fee of $499.0 million or an “alternate fee” of $249.5 million; |
• | We may be required to pay significant costs relating to the merger, such as legal, accounting, financial advisory and printing fees, whether or not the merger is completed; |
• | Time and resources committed by our management to matters relating to the merger could otherwise have been devoted to our existing business or to pursuing other beneficial opportunities; |
• | The merger may not be completed as a result of the occurrence of an event, change or other circumstances that have a material adverse effect on our business; |
• | The manner in which brokers, insurers, cedants and other third parties perceive XL Group may be negatively impacted, which in turn could affect our ability to compete for or write new business or obtain renewals in the marketplace; |
• | Current and prospective employees may experience uncertainty about their future roles with us, which might adversely affect our ability to attract and retain employees who generate and service our business; |
• | Our ratings may be adversely affected, which could have an adverse effect on our business, financial condition and operating results; and |
• | We could be subject to litigation related to any failure to complete the merger or related to any enforcement proceeding commenced against XL Group to perform its obligations under the merger agreement. |
ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
Total Number of Shares Purchased(1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (1) (2) | ||||||||||
April 1, 2018 to April 30, 2018 | — | $ | — | — | $ | 529.1 | million | ||||||
May 1, 2018 to May 31, 2018 | 7,072 | 55.65 | — | 529.1 | million | ||||||||
June 1, 2018 to June 30, 2018 | — | — | — | 529.1 | million | ||||||||
Total | 7,072 | $ | 55.65 | — | $ | 529.1 | million |
(1) | Shares purchased in connection with the vesting of restricted shares granted under our restricted stock plan do not represent shares purchased as part of publicly announced plans or programs. Any such purchases would be made in connection with satisfying tax withholding obligations of those employees. |
(2) | For information regarding our share buyback activity see Part I, Item 1, Note 13, "Share Capital," to the Unaudited Consolidated Financial Statements included herein. |
ITEM 5. | OTHER INFORMATION |
ITEM 6. | EXHIBITS | |
See Exhibit Index below, which is incorporated by reference herein. | ||
EXHIBIT INDEX | ||
12* | ||
31* | ||
32* | ||
101.INS* | XBRL Instance Document | |
101.SCH* | XBRL Taxonomy Extension Schema Document | |
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.LAB* | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document | |
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document |
* | Filed herewith. |
Date: | August 3, 2018 | |
XL Group Ltd | ||
(Registrant) | ||
/s/ MICHAEL S. MCGAVICK | ||
Name: Michael S. McGavick | ||
Title: Chief Executive Officer and Director | ||
XL Group Ltd | ||
Date: | August 3, 2018 | |
/s/ STEPHEN ROBB | ||
Name: Stephen Robb | ||
Title: Executive Vice President and Chief Financial Officer | ||
XL Group Ltd |
Six Months Ended | |||||||
(U.S. dollars in thousands, except ratios) | 2018 | 2017 | |||||
Earnings: | |||||||
Pre-tax income (loss) from continuing operations | $ | 433,285 | $ | 440,598 | |||
Fixed charges and preference dividends | 144,374 | 178,353 | |||||
Distributed income of equity investees | 111,898 | 88,305 | |||||
Subtotal | $ | 689,557 | $ | 707,256 | |||
Less: Non-controlling interests | (6,552 | ) | 5,459 | ||||
Less: Preference share dividends | 32,941 | 63,970 | |||||
Total earnings (loss) | $ | 663,168 | $ | 637,827 | |||
Fixed charges: | |||||||
Interest costs | $ | 89,415 | $ | 83,672 | |||
Accretion of deposit liabilities | 12,816 | 21,057 | |||||
Rental expense at 30% (1) | 9,202 | 9,654 | |||||
Total fixed charges | $ | 111,433 | $ | 114,383 | |||
Preference share dividends | 32,941 | 63,970 | |||||
Total fixed charges and preference dividends | $ | 144,374 | $ | 178,353 | |||
Ratio of earnings to fixed charges | 6.0 | 5.6 | |||||
Ratio of earnings to combined fixed charges and preference dividends | 4.6 | 3.6 | |||||
Deficiency - fixed charges only | N/A | N/A | |||||
Deficiency - fixed charges and preference dividends | N/A | N/A |
(1) | 30% represents a reasonable approximation of the interest factor. |
1. | I have reviewed this Quarterly Report on Form 10-Q of XL Group Ltd; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Dated: | August 3, 2018 | |
/s/ MICHAEL S. MCGAVICK | ||
Michael S. McGavick | ||
Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of XL Group Ltd; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Dated: | August 3, 2018 | |
/s/ STEPHEN ROBB | ||
Stephen Robb | ||
Executive Vice President and | ||
Chief Financial Officer |
Dated: | August 3, 2018 | |
/s/ MICHAEL S. MCGAVICK | ||
Michael S. McGavick | ||
Chief Executive Officer | ||
XL Group Ltd | ||
Dated: | August 3, 2018 | |
/s/ STEPHEN ROBB | ||
Stephen Robb | ||
Executive Vice President and | ||
Chief Financial Officer | ||
XL Group Ltd |
Document And Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Aug. 01, 2018 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | XL GROUP LTD | |
Entity Central Index Key | 0000875159 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 258,794,274 |
UNAUDITED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Amortized cost of fixed maturities | $ 29,689,322 | $ 30,157,581 |
Amortized cost of short-term investments, available for sale | 623,158 | 816,638 |
Amortized cost of fixed maturities, trading | 1,965,372 | 1,946,501 |
Amortized cost of short-term investments, trading | 5,777 | 14,969 |
Equity securities, cost | 586,220 | 638,455 |
Future policy benefit reserves recoverable | $ 2,971,191 | $ 3,191,584 |
Ordinary shares, shares authorized (in shares) | 999,990,000 | 999,990,000 |
Common shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Ordinary shares, shares issued (in shares) | 258,780,274 | 256,033,895 |
Ordinary shares, shares outstanding (in shares) | 258,780,274 | 256,033,895 |
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Document Fiscal Year Focus | 2018 | |||
Net income (loss) attributable to common shareholders | $ 318,996 | $ 301,620 | $ 471,644 | $ 454,463 |
Change in adjustments related to future policy benefit reserves, net of tax | 42,314 | 3,437 | 46,478 | 8,569 |
Change in net unrealized gains (losses) on affiliate investments, net of tax | 127 | 1,006 | 2,275 | (1,457) |
Change in net unrealized gains (losses) on other investments, net of tax | 0 | 8,068 | 0 | 9,338 |
Change in OTTI losses recognized in other comprehensive income, net of tax | 1,996 | 1,497 | 5,612 | 2,939 |
Change in underfunded pension liability, net of tax | 413 | (576) | 224 | (933) |
Change in value of cash flow hedge | (47) | (48) | (95) | (96) |
Foreign currency translation adjustments, net of tax | (28,296) | (1,092) | (30,728) | 40,846 |
Comprehensive income (loss) | 58,005 | 377,811 | (148,570) | 660,082 |
Excluding Life Funds Withheld Assets | ||||
Change in net unrealized gains (losses) on investments AFS, net of tax | (178,467) | 75,855 | (509,195) | 178,477 |
Life Funds Withheld Assets | ||||
Change in net unrealized gains (losses) on investments AFS, net of tax | $ (99,031) | $ (11,956) | $ (134,785) | $ (32,064) |
UNAUDITED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands |
Total |
Excluding Life Funds Withheld Assets |
Life Funds Withheld Assets |
Common Shares |
Additional Paid in Capital |
AOCI Attributable to Parent [Member] |
AOCI Attributable to Parent [Member]
Excluding Life Funds Withheld Assets
|
AOCI Attributable to Parent [Member]
Life Funds Withheld Assets
|
Retained Earnings (Deficit) |
Non-controlling Interest in Equity of Consolidated Subsidiaries |
|||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Balance, beginning of year at Dec. 31, 2016 | $ 2,669 | $ 8,068,503 | $ 715,546 | $ 2,151,794 | $ 2,022,167 | ||||||||
Issuance of common shares | 11 | ||||||||||||
Buybacks of common shares | (111) | (333,747) | (116,772) | ||||||||||
Exercise of stock options | 17 | ||||||||||||
Exercise of stock options | 42,614 | ||||||||||||
Share-based compensation | 13,543 | (6,089) | |||||||||||
Change in net unrealized gains (losses) on investments AFS, net of tax | $ 178,477 | $ (32,064) | $ 178,477 | $ (32,064) | |||||||||
Change in adjustments related to future policy benefit reserves, net of tax | $ 8,569 | 8,569 | |||||||||||
Change in net unrealized gains (losses) on affiliate investments, net of tax | (1,457) | (1,457) | |||||||||||
Change in net unrealized gains (losses) on other investments, net of tax | 9,338 | 9,338 | |||||||||||
Change in OTTI losses recognized in other comprehensive income, net of tax | 2,939 | 2,939 | |||||||||||
Change in underfunded pension liability, net of tax | (933) | (933) | |||||||||||
Change in value of cash flow hedge | (96) | (96) | |||||||||||
Foreign currency translation adjustments, net of tax | 40,846 | 40,846 | |||||||||||
Net income (loss) attributable to common shareholders | 454,463 | 454,463 | |||||||||||
Dividends on common shares | (117,508) | ||||||||||||
Non-controlling interests - contributions | 25 | ||||||||||||
Non-controlling interests - distributions | (6,093) | ||||||||||||
Non-controlling interests | 5,459 | ||||||||||||
Non-controlling interest share in change in accumulated other comprehensive income (loss) | 297 | ||||||||||||
Balance, end of year at Jun. 30, 2017 | 13,102,407 | 2,586 | 7,790,913 | 921,165 | 2,365,888 | 2,021,855 | |||||||
Balance, beginning of year at Dec. 31, 2017 | 11,461,320 | 2,560 | 7,757,940 | 889,431 | 1,198,386 | 1,613,003 | |||||||
Issuance of common shares | 7 | ||||||||||||
Buybacks of common shares | 0 | (1,405) | (651) | ||||||||||
Exercise of stock options | 21 | ||||||||||||
Exercise of stock options | 62,507 | ||||||||||||
Share-based compensation | 22,262 | (7,075) | |||||||||||
Reclassification due to adoption of new accounting pronouncement | Accounting Standards Update 2016-01 | (221,856) | [1] | (221,856) | 221,856 | |||||||||
Reclassification due to adoption of new accounting pronouncement | Accounting Standards Update 2018-02 | 3,903 | 3,903 | (3,903) | ||||||||||
Change in net unrealized gains (losses) on investments AFS, net of tax | $ (509,195) | $ (134,785) | $ (509,195) | $ (134,785) | |||||||||
Change in adjustments related to future policy benefit reserves, net of tax | 46,478 | 46,478 | |||||||||||
Change in net unrealized gains (losses) on affiliate investments, net of tax | 2,275 | 2,275 | |||||||||||
Change in net unrealized gains (losses) on other investments, net of tax | 0 | 0 | |||||||||||
Change in OTTI losses recognized in other comprehensive income, net of tax | 5,612 | 5,612 | |||||||||||
Change in underfunded pension liability, net of tax | 224 | 224 | |||||||||||
Change in value of cash flow hedge | (95) | (95) | |||||||||||
Foreign currency translation adjustments, net of tax | (30,728) | (30,728) | |||||||||||
Net income (loss) attributable to common shareholders | 471,644 | 471,644 | |||||||||||
Dividends on common shares | (115,402) | ||||||||||||
Non-controlling interests - contributions | 1,924 | ||||||||||||
Non-controlling interests - distributions | (12,153) | ||||||||||||
Non-controlling interests | (6,552) | ||||||||||||
Non-controlling interest share in change in accumulated other comprehensive income (loss) | 773 | ||||||||||||
Balance, end of year at Jun. 30, 2018 | $ 11,257,006 | $ 2,588 | $ 7,841,304 | $ 51,264 | $ 1,764,855 | $ 1,596,995 | |||||||
|
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Cash flows provided by (used in) operating activities: | ||
Net income (loss) | $ 498,033 | $ 523,892 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Total realized investment (gains) losses | (7,450) | (93,914) |
Net realized and unrealized (gains) losses on derivative instruments | (20,347) | 7,975 |
Amortization of premiums (discounts) on fixed maturities | 60,900 | 83,551 |
(Income) loss from investment and operating affiliates | (96,051) | (94,078) |
Share-based compensation | 31,910 | 29,959 |
Depreciation and amortization | 44,916 | 36,567 |
Accretion of deposit liabilities | 16,721 | 20,013 |
Changes in: | ||
Unpaid losses and loss expenses | (169,596) | 343,776 |
Future policy benefit reserves | (151,977) | (121,082) |
Funds withheld on GreyCastle life retrocession arrangements, net | (200,344) | (219,050) |
Unearned premiums | 1,376,976 | 1,381,596 |
Premiums receivable | (1,271,167) | (1,280,244) |
Unpaid losses and loss expenses recoverable | (54,083) | (257,264) |
Ceded unearned premiums | (651,018) | (830,558) |
Reinsurance balances receivable | (385,871) | (164,010) |
Deferred acquisition costs and value of business acquired | (76,773) | (174,227) |
Reinsurance balances payable | 435,956 | 905,779 |
Deferred tax asset - net | 22,985 | 9,058 |
Derivatives | 44,421 | 21,701 |
Other assets | (21,504) | (118,147) |
Other liabilities | (805) | (257,159) |
Other | (50,648) | 39,227 |
Total adjustments | (1,109,650) | (645,834) |
Net cash provided by (used in) operating activities | (611,617) | (121,942) |
Cash flows provided by (used in) investing activities: | ||
Proceeds from sale of fixed maturities and short-term investments | 7,431,308 | 6,387,610 |
Proceeds from redemption of fixed maturities and short-term investments | 1,440,191 | 2,084,182 |
Proceeds from sale of equity securities | 84,068 | 228,914 |
Purchases of fixed maturities and short term investments | (8,781,847) | (8,719,024) |
Purchases of equity securities | (44,954) | (277,329) |
Proceeds from sale of affiliates | 302,199 | 236,861 |
Purchases of affiliates | (103,222) | (51,891) |
Other, net | (29,985) | 5,127 |
Net cash provided by (used in) investing activities | 297,758 | (105,550) |
Cash flows provided by (used in) financing activities: | ||
Proceeds from issuance of ordinary shares and exercise of stock options | 60,855 | 42,630 |
Buybacks of common shares | (2,057) | (450,629) |
Employee withholding on share-based compensation | (16,696) | (23,957) |
Dividends paid on common shares | (113,726) | (115,589) |
Distributions to non-controlling interests | (45,094) | (73,708) |
Contributions from non-controlling interests | 1,924 | 25 |
Proceeds from the issuance of debt | 0 | 558,311 |
Contingent consideration paid on business combination | (5,000) | (7,304) |
Deposit liabilities | (119,113) | (11,150) |
Net cash provided by (used in) financing activities | (238,907) | (81,371) |
Effects of exchange rate changes on foreign currency cash | (10,118) | 43,423 |
Increase (decrease) in cash, cash equivalents and restricted cash | (562,884) | (265,440) |
Cash, cash equivalents and restricted cash - beginning of year | 3,593,451 | 3,580,492 |
Cash, cash equivalents and restricted cash - end of period | 3,030,567 | 3,315,052 |
Life Funds Withheld Assets | ||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Net realized and unrealized (gains) losses on derivative instruments | $ 13,199 | $ 84,697 |
Significant Accounting Policies |
6 Months Ended |
---|---|
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies (a) Basis of Preparation and Consolidation Unless the context otherwise indicates, references herein to the "Company" include the accounts of XL Group Ltd, a Bermuda exempted company ("XL Group"), together with its consolidated subsidiaries. These Unaudited Consolidated Financial Statements include the accounts of the Company and have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by GAAP for complete financial statements. In addition, the year-end balance sheet data was derived from audited financial statements but do not include all disclosures required by GAAP. In the opinion of management, these unaudited financial statements reflect all adjustments considered necessary for a fair statement of financial position and results of operations at the end of and for the periods presented. The results of operations for any interim period are not necessarily indicative of the results for a full year. All inter-company accounts and transactions have been eliminated. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure about contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from these estimates. For further information, see Item 8, Note 1(a), "Significant Accounting Policies - Basis of Preparation and Consolidation," to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. In May 2014, the Company ceded the majority of its life reinsurance business to GreyCastle Life Reinsurance ("GCLR") via 100% quota share reinsurance (the "GreyCastle Life Retro Arrangements"). Under the terms of the transaction, the Company continues to own, on a funds withheld basis, assets supporting the GreyCastle Life Retro Arrangements consisting of cash, fixed maturity securities and accrued interest (the "Life Funds Withheld Assets"). The Life Funds Withheld Assets are managed pursuant to agreed investment guidelines that meet the contractual commitments of the XL ceding companies and applicable laws and regulations. All of the investment results associated with the Life Funds Withheld Assets ultimately accrue to GCLR. Because the Company no longer shares in the risks and rewards of the underlying performance of the supporting invested assets, disclosures within the financial statement notes included herein separate the Life Funds Withheld Assets from the rest of the Company's investments. For further information, see Item 8, Note 1(a), "Significant Accounting Policies - Basis of Preparation and Consolidation," to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. To facilitate period-to-period comparisons, certain reclassifications have been made to prior period consolidated financial statement amounts to conform to current period presentation. (b) Recent Accounting Pronouncements Recently Issued Accounting Standards Adopted in 2018 ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the Financial Accounting Standards Board ("FASB") issued an accounting standards update concerning the accounting for financial instruments. The guidance retains the basic existing framework for accounting for financial instruments under GAAP, while achieving limited convergence with IFRS in this area. The guidance: (1) requires equity investments (except consolidated entities and those accounted for under the equity method of accounting) to be measured at fair value with changes in fair value recognized in net income; (2) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (3) eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost for non-public business entities; (4) eliminates the requirement to disclose the method(s) and significant assumptions used to estimate the fair value of financial instruments measured at amortized cost on the balance sheet; (5) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (6) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial statements; (7) requires separate presentation of financial assets and financial liabilities by measurement category and form of asset in the financial statements; and (8) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to AFS securities in combination with the entity's other deferred tax assets. The guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Adoption is required to be applied by means of a cumulative effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption, except the amendments related to impairment of equity securities without readily determinable fair values. The Company adopted this guidance as of January 1, 2018. As of that date, accumulated unrealized gains and losses relating to investments in equity securities and certain of our other investments, net of tax, which were included in accumulated other comprehensive income, were reclassified to retained earnings. At January 1, 2018 the amount of the reclassification was a net unrealized gain of $233.8 million, less deferred tax of $11.9 million. Adoption of this update has an effect on results of operations going forward, as mark-to-market movements on equity securities now impact net income; however, it does not have a material impact on the Company's cash flows. ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued an accounting standards update concerning the presentation and classification of certain cash receipts and cash payments in the statement of cash flows. The amendments in this update are intended to address areas where GAAP is unclear and diversity in practice exists. The following areas are covered in this update: (1) debt prepayment or debt extinguishment costs; (2) settlement of zero-coupon debt instruments; (3) contingent consideration payments following a business combination; (4) proceeds from settlement of insurance claims; (5) proceeds from settlement of corporate-owned life insurance policies; (6) distributions received from equity method investees; (7) beneficial interests in securitization transactions; and (8) separation of cash flows. The guidance is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company adopted this guidance as of January 1, 2018 using the retrospective transition method required by these amendments. As required in adopting this standard, the Company made a formal accounting policy election regarding classification of distributions received from equity method investees, choosing to use the Nature of Distribution approach. This approach is consistent with historical practice utilized by the Company in classifying these distributions. Overall, adoption of the guidance did not have a material impact on the Company's cash flows, and had no impact on the Company's financial position or results of operations. ASU 2016-16, Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory In October 2016, the FASB issued an accounting standards update concerning the tax effects of intra-entity asset transfers within a group. The guidance requires an entity to reflect the income tax consequences of an intra-entity transfer of an asset other than inventory when that transfer occurs. This is a departure from previous GAAP, which prohibited recognition of tax on such transfers until the asset had been sold to an external party or otherwise realized. The amendments are effective for annual reporting periods beginning after December 15, 2017, and interim periods within those fiscal years. The amendments are required to be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company adopted this guidance as of January 1, 2018. This guidance did not have a material impact on the Company's financial condition, results of operations, or cash flows. ASU 2016-18, Statement of Cash Flows: Restricted Cash In November 2016, the FASB issued an accounting standards update concerning the presentation of restricted cash within the statement of cash flows. Previous GAAP did not provide guidance on the presentation or classification of movements in restricted cash. The update requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included as a component of cash and cash equivalents when reconciling beginning-of-period and end-of-period totals within the statement of cash flows. The guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The guidance is required to be applied retrospectively to all periods presented in the statements of cash flows. The Company adopted this guidance as of January 1, 2018. As result, the net amount of the change in the restricted cash balances during each reporting period is no longer being presented as a discrete line item "Change in restricted cash" within investing cash flows for each applicable period, as was previously reported in the Company's Unaudited Consolidated Statements of Cash Flows for the six months ended June 30, 2017. This guidance did not have an impact on the Company's financial position or results of operations. ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost In March 2017, the FASB issued an accounting standards update concerning the presentation of costs related to defined benefit pension plans and similar plans. The amendments in this ASU principally require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by relevant employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. If a separate line item or items are used to present the other components of net benefit cost, that line item or items must be appropriately described. If a separate line item or items are not used, the line item or items used in the income statement to present the other components of net benefit cost must be disclosed. The amendments in the update are effective for public business entities for annual periods beginning after December 15, 2017, including interim periods within those annual periods. The amendments relating to presentation in the income statement are required to be applied retrospectively. Disclosures of the nature of and reason for the change in accounting principle are required in the first interim and annual periods of adoption. The Company adopted this guidance as of January 1, 2018. The impact of this guidance on the Company is disclosure-related only, and it does not have an impact on the Company's financial position, results of operations or cash flows. As the impact of adopting this standard is not material, updated disclosure on the Company's defined benefit pension plans has not been provided for either the current or the prior quarterly period. For the Company’s most recent disclosures, see Item 8, Note 17, "Retirement Plans" to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB issued an accounting standards update concerning the stranded tax effects resulting from tax rate changes legislated by the U.S. Tax Cuts and Jobs Act. Under GAAP, the effects of all changes in tax rates on deferred tax balances are reflected in income, even if the tax balances relate to items of accumulated other comprehensive income. This update permits companies to make an election to reclassify from accumulated other comprehensive income to retained earnings such stranded tax effects resulting from the U.S. Tax Cuts and Jobs Act. Certain disclosures are also required by the update. The amendments are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those financial years. For public business entities, early adoption is permitted, including adoption in any interim period for reporting periods for which financial statements have not yet been issued. The amendments should be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. Tax Cuts and Jobs Act is recognized. The Company early-adopted this guidance by making the permitted election in the first quarter of 2018, recognizing a reclassification of $3.9 million from accumulated other comprehensive income to retained earnings in the period of adoption. In general, in accounting for the release of income tax effects from accumulated other comprehensive income, the Company applies the individual item approach with respect to available-for-sale debt securities, and the portfolio approach with respect to pension, postretirement benefit plan obligations and currency translation matters. ASU 2018-05, Income Taxes: Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 In March 2018, the FASB issued an accounting standards update concerning the income tax accounting implications of the U.S. Tax Cuts and Jobs Act. The update codifies SEC-related material within the Accounting Standards Codification pursuant to the issuance of SEC Staff Accounting Bulletin No. 118 (‘SAB 118’). SAB 118 provided clarifying guidance for how a public business entity should address the situation in which the accounting for certain income tax effects of the U.S. Tax Cuts and Jobs Act was not completed by the time financial statements were issued for the reporting period in which the legislation was enacted. In such circumstances, the incomplete effects are reported when a reasonable estimate can be determined, based on that estimate. Provisional amounts can be updated during a measurement period not exceeding one year. Disclosures concerning any incomplete effects and adjustments are required. The Company complied with the requirements of SAB 118 in its Form 10-K for the year ended December 31, 2017 and no further changes were required to comply with this update when adopted in the three months ended March 31, 2018. During the six months ended June 30, 2018, there were no changes to any outstanding items as reported in Item 8, Note 23, "Taxation" to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. Recently Issued Accounting Standard Not Yet Adopted ASU 2018-11, Leases: Targeted Improvements In July 2018, the FASB issued an accounting standards update that aims to reduce costs and ease implementation of the leases standard (ASU 2016-02) for financial statement preparers. The amendments in this update add a new transition option for the provisions of ASU 2016-02, and also provide a practical expedient that permits lessors to avoid separating lease and nonlease components. As originally published, ASU 2016-02 required transition at the beginning of the earliest comparative period presented in the financial statements. This new additional transition option allows entities to adopt the provisions of ASU 2016-02 by means of a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. In this situation any comparative periods prior to adoption would continue to be presented in accordance with existing US GAAP Topic 840, including associated disclosure requirements. The practical expedient allows lessors to not separate nonlease components from the associated lease component, similar to the expedient provided for lessees, subject to certain restrictions. The transition option is effective as part of the adoption of ASU 2016-02, which for public business entities is mandatory for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. For entities which have not already adopted ASU 2016-02, the practical expedient for lessor separation of nonlease components is effective at the same time as that standard. The Company is currently evaluating the impact of this guidance. |
Acquisition and Disposals |
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Business Combinations [Abstract] | |
Acquisitions and disposals | Acquisitions and Disposals (a) Merger with AXA SA ("AXA") The Company has entered into a definitive agreement and plan of merger (the “Merger Agreement”) with AXA dated March 5, 2018, under which AXA, subject to the satisfaction or waiver of certain conditions set forth therein, will acquire 100% of the Company’s common shares in exchange for cash proceeds of $57.60 per common share of XL Group or approximately $15.3 billion in the aggregate (the “AXA Transaction”). The Merger Agreement provides that the Company will merge with an existing AXA subsidiary in accordance with the Companies Act 1981 of Bermuda (the “Merger”), with the Company surviving the Merger as a wholly owned subsidiary of AXA. All preferred shares issued by subsidiaries of the Company will remain issued and outstanding upon completion of the Merger. The Merger is expected to close during the second half of 2018. XL received the necessary shareholder approval on June 6, 2018; however, the Merger remains subject to other customary closing conditions, including the receipt of required regulatory approvals. The Merger Agreement, among other stipulations, permits: (i) the Company to pay out regular quarterly cash dividends not to exceed $0.22 per common share per quarter, (ii) subsidiaries of the Company to pay periodic cash dividends on preferred shares not to exceed amounts contemplated by the applicable bye-laws or resolutions approving such preferred shares, and (iii) subsidiaries of the Company to pay dividends to XL Group and XLIT Ltd. ("XLIT"), the Company’s holding companies, or any of its subsidiaries. |
Segment Information |
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Segment Information | Segment Information The Company's Property and Casualty ("P&C") operations are organized into two operating segments: Insurance and Reinsurance. The Company's general investment and financing operations are reflected in Corporate and Other. Subsequent to the transaction described in Note 1(a), "Significant Accounting Policies - Basis of Preparation and Consolidation," GCLR reinsures the majority of the Company's life reinsurance business through the GreyCastle Life Retro Arrangements. The results of the run-off life operations not subject to the GreyCastle Life Retro Arrangements are also reported within Corporate and Other. The Company evaluates the performance of both the Insurance and Reinsurance segments based on underwriting profit. Other items of revenues and expenditures of the Company are not evaluated at the segment level. In addition, the Company does not allocate investment assets used to support its P&C operations to the individual segments, except as noted below. Investment assets related to the Company's run-off life operations are held in a separately identified portfolio. Net investment income from these assets is included in the contribution from Corporate and Other. Certain structured products included in the Insurance and Reinsurance segments are also held in separately identified portfolios. As such, net investment income from these assets is included in the contribution from the applicable segment. The following tables summarize the segment results for the three and six months ended June 30, 2018 and 2017:
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The following tables summarize the Company's net premiums earned by product type for the three and six months ended June 30, 2018 and 2017:
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Investments |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Investments (a) Fixed Maturities, Short-Term Investments and Equity Securities Amortized Cost and Fair Value Summary The cost (amortized cost for fixed maturities and short-term investments), fair value, gross unrealized gains and gross unrealized (losses), including non-credit related OTTI recorded in accumulated other comprehensive income ("AOCI"), of the Company's investments AFS at June 30, 2018 and December 31, 2017 were as follows:
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The amortized cost and fair value of trading investments at June 30, 2018 and December 31, 2017 were as follows:
At June 30, 2018 and December 31, 2017, approximately 3.5% and 3.3%, respectively, of the Company's fixed income investment portfolio at fair value, excluding cash and Life Funds Withheld Assets, was invested in securities that were below investment grade or not rated. Approximately 3.9% and 4.2% of the gross unrealized losses in the Company's fixed income investment portfolio, excluding cash and Life Funds Withheld Assets, at June 30, 2018 and December 31, 2017, respectively, related to securities that were below investment grade or not rated. Contractual Maturities Summary The contractual maturities of AFS fixed maturity securities at June 30, 2018 and December 31, 2017 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.
Pledged Assets Certain of the Company's invested assets are pledged in support of insurance and reinsurance liabilities as well as to collateralize other obligations, such as credit facilities. Such pledges are largely required by the Company's operating subsidiaries that are "non-admitted" under U.S. state insurance regulations, in order for the U.S. cedant to receive statutory credit for reinsurance. Also included in pledged assets are Life Funds Withheld Assets, as noted in Note 1(a), "Significant Accounting Policies - Basis of Preparation and Consolidation." Additionally, certain deposit liabilities and annuity contracts require the use of pledged assets. At June 30, 2018 and December 31, 2017, the Company had $17.0 billion and $18.8 billion in pledged assets, respectively. (b) Gross Unrealized Losses The following table sets forth the fair value, gross unrealized loss and length of time AFS securities had been in a continual unrealized loss position at June 30, 2018 and December 31, 2017:
The Company had gross unrealized losses totaling $506.7 million on 4,673 securities out of a total of 7,847 held at June 30, 2018 in its AFS - Excluding Life Funds Withheld Assets portfolio, which either it considers to be temporarily impaired or reflects non-credit losses on other-than-temporarily impaired assets. Individual security positions comprising this balance have been evaluated by management, in conjunction with our investment managers, to determine the severity of these impairments and whether they should be considered other-than-temporary. Management believes it is more likely than not that the issuer will be able to fund sufficient principal and interest payments to support the current amortized cost. (c) Net Realized and Unrealized Gains (Losses) The following table sets forth the gross and net realized gains (losses) on investments and unrealized gains (losses) on mark to market investments for the periods presented:
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The components of OTTI charges for the three and six months ended June 30, 2018 and 2017, as defined in Note 1(g), "Significant Accounting Policies - Other-Than-Temporary Impairments of Available for Sale," to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017, for investments excluding Life Funds Withheld Assets were:
The following table sets forth the amount of credit loss impairments on fixed income securities, for which a portion of the OTTI loss was recognized in Other Comprehensive Income ("OCI"), held by the Company at the dates or for the periods indicated and the corresponding changes in such amounts:
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Derivative Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | Derivative Instruments The Company enters into derivative instruments for both risk management and investment purposes. The Company is exposed to potential loss from various market risks, and manages its market risks based on a comprehensive framework of investment decision authorities ("Authorities Framework") adopted by the Risk and Finance Committee of XL Group's Board of Directors ("RFC"). The Authorities Framework is intended to align the risk profile of our investment portfolio to be consistent with the Company's risk tolerance and other guidelines established by the RFC. The following table summarizes information on the notional amounts and gross amounts of derivative fair values contained in the Unaudited Consolidated Balance Sheets at June 30, 2018 and December 31, 2017:
Derivative instruments in an asset or liability position are included within "Other assets" or "Other liabilities," respectively, at fair value in the Unaudited Consolidated Balance Sheets on a net basis where the Company has both a legal right of offset and the intention to settle the contracts on a net basis. Certain embedded derivatives within reinsurance contracts are included in "Reinsurance balances payable." The Company often enters into different types of derivative contracts with a single counterparty and these contracts are covered under netting agreements. Changes in the fair values of derivatives are shown in the Unaudited Consolidated Statements of Income as "Net realized and unrealized gains (losses) on derivative instruments," unless the derivatives are designated as hedging instruments. The accounting for derivatives that are designated as hedging instruments is described in Item 8, Note 1(h), "Significant Accounting Policies - Derivative Instruments," to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. (a) Derivative Instruments Designated as Hedges of a Net Investment in a Foreign Operation The Company utilizes foreign currency contracts to hedge the fair value of certain net investments in foreign operations. During the three and six months ended June 30, 2018 and 2017, the Company entered into foreign currency contracts that were formally designated as hedges of investments in foreign subsidiaries, the majority of which have functional currencies of Canadian dollar, British pound, Euro or Swiss Francs. There was no ineffectiveness in these transactions. The following table provides the weighted average U.S. dollar equivalent of foreign denominated net assets that were hedged and the resulting derivative gain (loss) that was recorded in the foreign currency translation adjustment, net of tax, account within AOCI for the three and six months ended June 30, 2018 and 2017:
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As described in Note 9, "Notes Payable and Debt and Financing Arrangements," the Company has issued debt denominated in Euros that is designated and qualifies as a non-derivative hedging instrument against an equal amount of the Company's currency exposure to the Euro resulting from net investments in foreign operations. Accordingly, the foreign currency revaluation of this debt is recorded in AOCI, offsetting the foreign currency translation adjustment of the related net investments that is also recorded in AOCI. (b) Derivative Instruments Not Formally Designated As Hedging Instruments The following table provides the total impact on earnings relating to derivative instruments not formally designated as hedging instruments. The impacts are all recorded through "Net realized and unrealized gains (losses) on derivative instruments" in the Unaudited Consolidated Statements of Income for the three and six months ended June 30, 2018 and 2017:
The Company's objectives in using these derivatives are explained below. Investment Related Derivatives The Company, either directly or through third-party investment managers, may use derivative instruments within its investment portfolio, including interest rate swaps and options on interest rate swaps, total return swaps, credit derivatives (including single name and index credit default swaps and options on credit default swaps), equity options, forward contracts and futures (including foreign exchange, bond and stock index, interest rate and commodity futures), primarily as a means of reducing investment risk by economically hedging exposures to interest rate, credit spread, equity price changes and foreign currency risk or, in limited instances, for efficient portfolio management. When using exchange-traded or cleared over-the-counter derivatives, the Company is exposed to the credit risk of the applicable clearing house and of the Company's futures commission merchant. When using uncleared over-the-counter derivatives, the Company is exposed to credit risk in the event of non-performance by the counterparties to such derivative contracts. To manage this risk, the Company requires appropriate legal documentation with counterparties that has been reviewed and negotiated by legal counsel on behalf of the Company and complies with the Company's documentation standards, investment guidelines and policies. Investment Related Derivatives – Interest Rate Exposure The Company utilizes risk management and overlay strategies that incorporate the use of derivative financial instruments, primarily to manage its fixed income portfolio duration and net economic exposure to interest rate risks. The Company may also use interest rate swaps to convert certain liabilities from a fixed rate to a variable rate of interest or use them to convert a variable rate of interest from one basis to another. Investment Related Derivatives – Foreign Currency Exposure The Company has exposure to foreign currency exchange rate fluctuations through its operations and in its investment portfolio. The Company uses foreign currency contracts to manage its exposure to the effects of fluctuating foreign currencies on the value of certain of its foreign currency fixed maturities and equities. These contracts are not designated as specific hedges for financial reporting purposes and, therefore, realized and unrealized gains and losses on these contracts are recorded in income in the period in which they occur. These contracts generally have maturities of twelve months or less. In addition, certain of the Company's investment managers may, subject to investment guidelines, enter into forward contracts. Investment Related Derivatives – Credit Exposure Credit derivatives may be purchased within the Company's investment portfolio in the form of single name and basket credit default swaps and swaptions, which are used to mitigate credit exposure through a reduction in credit spread duration (i.e., macro credit strategies rather than single-name credit hedging) or exposure to securities of selected issuers. Credit derivatives may also be used to efficiently gain exposure to credit markets, subject to guidelines that prohibit the introduction of effective leverage. Investment Related Derivatives – Financial Market Exposure Stock index futures may be purchased within the Company's investment portfolio to create synthetic equity exposure and to add value to the portfolio with overlay strategies where market inefficiencies are believed to exist. Stock index futures may be sold to facilitate the timely and efficient reduction of equity exposure. Equity option strategies, including both purchases and sales of options, may be used to add value or reduce exposure with overlay or other strategies. From time to time, the Company may enter into other financial market exposure derivative contracts on various indices and other underlying financial instruments including, but not limited to, equity options, total return swaps, and commodity contracts. Other Non-Investment Derivatives Credit Exposure During the year ended December 31, 2017, the Company entered into a non-investment related credit derivative relating to a number of reference pool mortgage tranches associated with actual mortgage loans that were securitized into agency mortgage-backed securities and sold as Structured Agency Credit Risk Notes. At June 30, 2018, there was no reported event of default on this obligation. The credit derivative is recorded at fair value based upon models developed by the Company. Significant unobservable inputs considered in the valuation include the impact of changes in interest rates, future defaults, delinquency and prepayment rates, credit spreads, changes in credit quality, and other market factors. Guaranteed Minimum Income Benefit Contract The Company has derivatives embedded in certain reinsurance contracts. For a certain life reinsurance contract, the Company pays the ceding company a fixed amount equal to the estimated present value of the excess of the guaranteed benefit over the account balance upon the policyholder's election to take the income benefit. The fair value of this derivative is determined based on the present value of expected cash flows. Modified Coinsurance and Funds Withheld Contracts, including Life Retrocession Embedded Derivative The Company has modified coinsurance and funds withheld reinsurance agreements that provide for a return to be paid based on a portfolio of fixed income securities. As such, the agreements contain an embedded derivative. The embedded derivative is bifurcated from the funds withheld balance and recorded at fair value, with changes in fair value recognized in earnings through "Net realized and unrealized gains (losses) on derivative instruments." In addition, the Company entered into the GreyCastle Life Retro Arrangements, as described in Note 1(a), "Significant Accounting Policies - Basis of Preparation and Consolidation." The embedded derivative related to the GreyCastle Life Retro Arrangements is recorded at fair value with changes in fair value recognized in earnings through "Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets." The impact of the GreyCastle Life Retro Arrangements on the Company's results was as follows:
As shown in the table above, although the Company's net income (loss) is subject to variability related to the GreyCastle Life Retro Arrangements, there is no net impact on the Company's comprehensive income in any period. The life retrocession embedded derivative value includes the interest income, unrealized gains and losses, and realized gains and losses from sale of the Life Funds Withheld Assets. Other The Company has entered into short-term weather derivative swap agreements as the fixed rate payer which provide for a return to be paid to the Company based on the occurrence of certain industry weather events. The derivatives are recorded at fair value with changes in fair value recognized in earnings through "Net realized and unrealized gains (losses) on derivative instruments." (c) Derivative Instruments Designated as Fair Value Hedges The Company may designate certain of its derivative instruments as fair value hedges or cash flow hedges, in which case it formally and contemporaneously documents all relationships between the hedging instruments and hedged items and links the hedging derivatives to specific assets and liabilities. The Company assesses the effectiveness of the hedge both at inception and on an on-going basis, and determines whether the hedge is highly effective in offsetting changes in fair value or cash flows of the linked hedged item. Settlement of Fair Value Hedges During the fourth quarter of 2010 and the third quarter of 2012, the Company settled five interest rate contracts designated as fair value hedges of certain of the Company's structured indemnity contracts. The gain on settlement of these contracts, which represented the effective portion of the hedging relationship, was recorded as an increase in the carrying value of the deposit liabilities and is being amortized through interest expense over the remaining term of the structured indemnity contracts. A summary of the fair value hedges that have been settled and their impact on results up to the indicated periods, as well as the remaining balance of the fair value hedges and average years remaining to maturity at June 30, 2018 and 2017, are shown below:
(d) Contingent Credit Features Certain derivative agreements entered into by the Company or its subsidiaries contain credit rating downgrade provisions that permit early termination of the agreements by the counterparty if collateral is not posted following failure to maintain certain credit ratings from one or more of the principal credit rating agencies. If the Company were required to terminate such agreements early due to a credit rating downgrade, it could potentially be in a net liability position at the time of settlement of such agreements. The aggregate fair value of all derivative agreements containing such rating downgrade provisions that were in a liability position and any collateral posted under these agreements at June 30, 2018 and December 31, 2017 were as follows:
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Fair value is defined as the amount that would be received for the sale of an asset or paid to transfer a liability (an exit price), in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Applicable accounting guidance provides an established hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions about the factors that market participants would use in valuing the asset or liability. Assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurements. The Company reviews the fair value hierarchy classification on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. The fair values for AFS investments are generally sourced from third parties. The fair value of fixed income securities is based upon quoted market values where available, "evaluated bid" prices provided by third-party pricing services ("pricing services") where quoted market values are not available, or by reference to broker quotes where pricing services do not provide coverage for a particular security. While the Company receives values for the majority of the investment securities it holds from pricing services, it is ultimately management's responsibility to determine whether the values received and recorded in the financial statements are representative of appropriate fair value measurements. The Company performs regular reviews of the prices received from its third-party valuation sources to assess whether the prices represent a reasonable estimate of the fair value. The approaches taken by the Company include, but are not limited to, annual reviews of the controls of the external parties responsible for sourcing valuations that are subjected to automated tolerance checks, quarterly reviews of the valuation sources and dates, comparisons of executed sales prices to prior valuations, regular comprehensive analyses on a sample of securities across our major asset classes and monthly reconciliations between the valuations provided by external parties and valuations provided by third-party investment managers at a portfolio level. In addition, the Company assesses the effectiveness of valuation controls performed by external parties responsible for sourcing appropriate valuations from third parties on its behalf. The approaches taken by these external parties to gain comfort include, but are not limited to, comparing valuations between external sources, completing recurring reviews of third-party pricing services' methodologies and reviewing controls of the third-party pricing service providers to support the completeness and accuracy of the prices received. Where broker quotes are the primary source of the valuations, sufficient information regarding the specific inputs utilized by the brokers is generally not available to support a Level 2 classification. The Company obtains the majority of broker quoted values from third-party investment managers who perform independent verifications of these valuations using pricing matrices based upon information gathered by market traders. In addition, for the majority of these securities, the Company compares the broker quotes to independent valuations obtained from pricing services, which may also consist of broker quotes, to assess if the prices received represent reasonable estimates of the fair value. For further information about the Company's fair value measurements, see Item 8, Note 1(b), "Significant Accounting Policies - Fair Value Measurements," and Item 8, Note 8, "Fair Value Measurements," to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. (a) Fair Value Summary The following tables set forth the Company's assets and liabilities that were accounted for at fair value at June 30, 2018 and December 31, 2017 by level within the fair value hierarchy:
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(b) Level 2 Asset Valuations U.S. Government, Corporate and Non-U.S. Governments Transaction activity inputs utilized in the valuation of fair value hierarchy Level 2 securities within these sub-categories include actual trades, dealer posts, results of bids-wanted, institutional secondary offerings, primary market offerings and Trade Reporting and Compliance Engine trade feeds. As part of the evaluation process, transaction activity is compared to prior evaluations and necessary adjustments are made accordingly. Market-color inputs include actively quoted benchmark issues, buy-side/evaluator dialogue, sell-side/evaluator dialogue and credit derivative indices. U.S. States, municipalities and political subdivisions Transaction activity inputs utilized in the valuation of fair value hierarchy Level 2 securities within this sub-category include actual trades, dealer posts, results of bids-wanted, institutional secondary offerings, primary market offerings, and Municipal Securities Rulemaking trade feeds. As part of the evaluation process, transaction activity is compared to prior evaluations and necessary adjustments are made accordingly. Market-color inputs include bids, offerings, two-sided markets, buy-side/evaluator dialogue and sell-side/evaluator dialogue. Credit information inputs include issuer financial statements, default and material event notices, developer reports and liquidation and restructuring analyses. RMBS, CMBS and Other asset-backed securities As part of the fair valuation process, Level 2 securities in these sub-categories are analyzed by collateral type, deal structure, deal performance and vintage. Market inputs into the valuation process for each sub-category include reported or observed trades, results of bids-wanted, buy-side/evaluator dialogue, sell-side/evaluator dialogue, dealer offerings and market research reports. Cash flow inputs into the evaluation process include conditional prepayment rates, conditional decay rates, delinquency rates and loss severity rates. This assumptive data is reviewed and updated using third-party reported information to reflect current market convention. Equity securities and other investments Equity securities and other investment securities generally include investments in thinly traded equity funds and fixed income funds (including overseas deposits). Fair value is determined based upon prices received from pricing services as well as from net asset values ("NAV") received from the fund administrators. Other assets and other liabilities Other assets and other liabilities primarily include over-the-counter ("OTC") derivatives, which are valued using market transactions and other market evidence whenever possible, including market-based inputs to models, model calibration to market clearing transactions, broker or dealer quotations or alternative independent pricing sources where an understanding of the inputs utilized in arriving at the valuations is obtained. Where models are used, the selection of a particular model to value an OTC derivative depends upon the contractual terms and specific risks inherent in the instrument as well as the availability of pricing information in the market. The Company generally uses similar models to value similar instruments. Valuation models require a variety of inputs, including contractual terms, market prices, yield curves, credit curves, measures of volatility, prepayment rates and correlations of such inputs. For OTC derivatives that trade in liquid markets, such as generic forwards, interest rate swaps and options, model inputs can generally be verified against observable inputs and model selection does not involve significant management judgment. Funds withheld on GreyCastle Life Retro Arrangements (net of future policy benefit reserves recoverable) The calculation of the change in fair value of the embedded derivative associated with the GreyCastle Life Retro Arrangements includes the interest income, realized and unrealized gains and losses on Life Funds Withheld Assets and certain expenses related to the Life Funds Withheld Assets. The fair value of the embedded derivative is included in "Funds withheld on GreyCastle life retrocession arrangements, net of future policy benefit reserves recoverable" on the Unaudited Consolidated Balance Sheets. The fair value of the embedded derivative is considered a Level 2 valuation. There were no significant transfers between Level 1 and Level 2 during each of the three and six months ended June 30, 2018 and 2017. (c) Level 3 Assets and Liabilities The tables below present additional information about assets and liabilities measured at fair value on a recurring basis and for which Level 3 inputs were utilized to determine fair value. The tables present a reconciliation of the beginning and ending balances for the three and six months ended June 30, 2018 and 2017 for all financial assets and liabilities measured at fair value using significant unobservable inputs (Level 3) at June 30, 2018 and 2017, respectively. The tables do not include gains or losses that were reported in Level 3 in prior periods for assets that were transferred out of Level 3 prior to June 30, 2018 and 2017, respectively. Gains and losses for assets and liabilities classified within Level 3 in the table below may include changes in fair value that are attributable to both observable inputs (Levels 1 and 2) and unobservable inputs (Level 3). Further, the tables below do not take into consideration the effect of offsetting Level 1 and 2 financial instruments entered into by the Company that are either economically hedged by certain exposures to the Level 3 positions or that hedge the exposures in Level 3 positions. In general, Level 3 assets include securities for which values were obtained from brokers where either significant inputs were utilized in determining the values that were difficult to corroborate with observable market data, or sufficient information regarding the specific inputs utilized by the broker was not available to support a Level 2 classification. Transfers into or out of Level 3 primarily arise as a result of the valuations utilized by the Company changing between either those provided by independent pricing services that do not contain significant unobservable inputs and other valuations sourced from brokers that are considered Level 3. Fixed maturities and short-term investments The Company's Level 3 assets consist primarily of U.S. Government securities, Corporates and Other asset-backed securities, for which non-binding broker quotes are the primary source of the valuations. Sufficient information regarding the specific inputs utilized by the brokers was not available to support a Level 2 classification. The Company obtains the majority of broker quotes for these securities from third-party investment managers who perform independent verifications of these valuations using pricing matrices based upon information gathered by market traders. In addition, for the majority of these securities, the Company compares the broker quotes to independent valuations obtained from pricing services, which may also consist of broker quotes, to assess if the prices received represent a reasonable estimate of the fair value. Although the Company does not have access to the specific unobservable inputs that may have been used in the fair value measurements of these securities provided by brokers, we would expect that the significant inputs considered are prepayment rates, probability of default, loss severity in the event of default, recovery rates, liquidity premiums and reinvestment rates. Significant increases (decreases) in any of those inputs in isolation could result in a significantly different fair value measurement. Generally, a change in the assumption used for the probability of default is accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumption used for prepayment rates. The remainder of the Level 3 assets relate primarily to private investments (including funds), hedge funds and certain derivative positions as described below. Other investments Included within the other investments component of the Company's Level 3 valuations are private investments (including funds) and hedge funds where the Company is not deemed to have significant influence over the investee. The fair value of these investments is based upon net asset values received from the investment manager or general partner of the respective entity. The underlying investments held by the investee that form the basis of the net asset value include assets such as private business ventures that require significant Level 3 inputs in the determination of the individual underlying holding values. Accordingly, the fair value of the Company's investment in each entity is classified within Level 3. Management reviews the values and incorporates factors such as the most recent financial information received, annual audited financial statements and the values at which capital transactions with the investee take place when applying judgment regarding whether any adjustments should be made to the net asset value received in recording the fair value of each position. Investments in hedge funds included in other investments utilize strategies including arbitrage, directional, event driven and multi-style. The funds potentially have lockup and gate provisions that may limit redemption liquidity. For further details regarding the nature of other investments and related features, see Item 8, Note 6, "Other Investments," to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. Derivative instruments Derivative instruments recorded within other liabilities and classified within Level 3 include: credit derivatives sold providing protection on senior tranches of structured finance transactions where the value is obtained directly from the investment bank counterparty and sufficient information regarding the inputs utilized in such valuation was not obtained to support a Level 2 classification, and guaranteed minimum income benefits embedded within one reinsurance contract. The majority of inputs utilized in the valuations of these types of derivative contracts are considered Level 1 or Level 2; however, each valuation includes at least one Level 3 input that was significant to the valuation and, accordingly, the values are disclosed within Level 3.
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(d) Financial Instruments Not Carried at Fair Value Authoritative guidance over disclosures about the fair value of financial instruments requires additional disclosure of fair value information for financial instruments not carried at fair value in both interim and annual reporting periods. Certain financial instruments, particularly insurance contracts, are excluded from these fair value disclosure requirements. The carrying values of cash and cash equivalents, accrued investment income, net receivable from investments sold, other assets, net payable for investments purchased, other liabilities and other financial instruments not included below approximated their fair values. The following table includes financial instruments for which the carrying value differs from the estimated fair values at June 30, 2018 and December 31, 2017. All of these fair value estimates are considered Level 2 fair value measurements.
The Company historically participated in structured transactions, the remaining of which are largely comprised of an investment in a payment obligation with an insurance company. This transaction is carried at amortized cost. The fair value of this investment held by the Company is determined through use of an internal model utilizing benchmark yields, issuer spreads and reference data. Deposit liabilities include obligations under structured insurance and reinsurance transactions. For purposes of fair value disclosures, the Company determined the estimated fair value of the deposit liabilities by assuming a discount rate equal to the appropriate U.S. Treasury rate plus 23.3 basis points and 45.5 basis points at June 30, 2018 and December 31, 2017, respectively. The discount rate incorporates the Company's own credit risk into the determination of estimated fair value. The fair values of the Company's notes payable and debt outstanding were determined based on quoted market prices. There are no significant concentrations of credit risk within the Company's financial instruments not carried at fair value as defined in the authoritative guidance over necessary disclosures, which excludes certain financial instruments, particularly insurance contracts. |
Goodwill and Other Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and other Intangible Assets | Goodwill and Other Intangible Assets The Company had goodwill and other intangible assets of $2.2 billion at June 30, 2018 and December 31, 2017. The following table presents an analysis of goodwill, intangible assets with an indefinite life and intangible assets with a definite life for the six months ended June 30, 2018:
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Losses and Loss Expenses |
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Liability for Claims and Claims Adjustment Expense [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Losses and loss expenses | Losses and Loss Expenses The following table represents a reconciliation of the beginning and ending balances of unpaid losses and loss expenses, including an analysis of the Company's paid and unpaid losses and loss expenses incurred for the years indicated:
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The following table presents the net (favorable) adverse prior year loss development of the Company's loss and loss expense reserves for its P&C operations by operating segment for each of the years indicated:
The significant developments in prior year loss reserve estimates for each of the years indicated within the Company's Insurance and Reinsurance segments are discussed below. Insurance Segment The following table summarizes the net (favorable) adverse prior year reserve development by product type relating to the Insurance segment for the six months ended June 30, 2018 and 2017
Net unfavorable prior year reserve development was $46.6 million for the six months ended June 30, 2018 for the Insurance segment, driven by the following:
Net favorable prior year reserve development totaled $21.9 million for the six months ended June 30, 2017. This was driven by favorable net prior year development of $56.4 million in Professional and $82.0 million in Casualty due to releases driven by better than expected loss experience. These releases were partially offset by strengthening of $99.8 million and $16.7 million in Property and Specialty lines, respectively, due to deterioration in our view of the London wholesale property book, significant adverse large loss experience on the energy property book, and worse than expected large losses experience in more recent years in the crisis management and political risk & trade credit portfolios. Reinsurance Segment The following table summarizes the net (favorable) adverse prior year reserve development by line of business relating to the Reinsurance segment for the six months ended June 30, 2018 and 2017:
Net favorable prior year reserve development was $64.6 million for the six months ended June 30, 2018 for the Reinsurance segment, mainly attributable to the following:
Net favorable prior year reserve development totaled $40.9 million for the six months ended June 30, 2017. The net favorable prior year development was primarily due to better than expected experience on attritional losses in in property catastrophe, property treaty and specialty lines. This favorable development was partially offset by net adverse prior year development in long-term lines due to the impact of the decrease to the discount rate used to calculate lump sum awards in U.K. bodily injury cases. There is no assurance that conditions and trends that have affected the development of liabilities in the past will continue. Accordingly, it may not be appropriate to extrapolate future redundancies or deficiencies based on the Company's historical results. |
Notes Payable and Debt and Financing Arrangements |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Payable and Debt and Financing Arrangements | Notes Payable and Debt and Financing Arrangements (a) Notes Payable and Debt The following table presents the Company's outstanding notes payable and debt at June 30, 2018 and December 31, 2017:
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All senior and subordinated notes of the Company at June 30, 2018 and December 31, 2017, which are identified in the table above, were issued by XLIT, a 100% owned subsidiary of XL Group. XLIT's outstanding debt, other than the Senior Notes due 2024 and due 2027, are listed on the NYSE and are fully and unconditionally guaranteed by XL Group. See Note 16, "Guarantor Financial Information," for condensed comparative financial information of XL Group and XLIT for the periods ended June 30, 2018 and December 31, 2017. The ability of XLIT, like that of the Company, to obtain funds from its subsidiaries to satisfy any of its obligations, including under guarantees, is subject to certain contractual restrictions, applicable laws and statutory requirements of the various countries in which the subsidiaries operate, including, among others, Bermuda, the United States, Ireland, Switzerland and the United Kingdom. For details of the required statutory capital and surplus for the principal operating subsidiaries of the Company, see Item 8, Note 24, "Statutory Financial Data," to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. On June 1, 2018, a subsidiary of the Company entered into a $14.3 million loan agreement due June 2021 with a floating interest rate of LIBOR plus 3.50% due June 2021 to support a leveraged investment opportunity. The agreement includes a provision allowing for an additional $6.0 million to be borrowed. On June 29, 2017, XLIT issued €500 million ($568.8 million) of fixed to floating rate subordinated notes due June 2047, with a fixed coupon of 3.25% for a period of ten years, then a floating rate of three-month EURIBOR plus 2.90% thereafter. The notes were issued at 99.054% of the face amount and net proceeds were $558.3 million. Related expenses of the offering amounted to approximately $10.5 million. These costs were deferred and are being amortized over the expected life of the subordinated notes. XLIT and the Company were in compliance with all covenants at June 30, 2018, and XLIT and the Company currently remain in compliance with all covenants. For details regarding the rest of the Company's facilities, see Item 8, Note 14(a), "Notes Payable and Debt and Financing Arrangements - Notes Payable and Debt," to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. (b) Letter of Credit ("LOC") Facilities and Other Sources of Collateral The Company has several credit facilities provided on both syndicated and bilateral bases from commercial banks. The Company may utilize these credit facilities to issue LOCs in support of non-admitted insurance and reinsurance operations in the U.S. and to meet capital requirements at Lloyd’s of London ("Lloyd's"). Alternatively, under certain of the credit facilities, the Company instead may elect to utilize a stated portion of such facilities' capacity for revolving loans to support other operating or financing needs, which would reduce the amount available for LOCs. XL Group and several of its wholly-owned subsidiaries provide guarantees, on a joint and several basis, for obligations of the Company under certain of these facilities. The following table presents the Company's ten LOC facilities and revolving credit facilities at June 30, 2018 and December 31, 2017:
Certain credit facilities permit the Company to utilize up to $750.0 million as of June 30, 2018 and December 31, 2017, respectively, for revolving loans to support general operating and financing needs. At June 30, 2018 and December 31, 2017, $76.1 million and $2.0 million, respectively, were utilized under these facilities to issue letters of credit, leaving $673.9 million and $748.0 million, respectively, available to support other operating and financing needs. For details regarding the Company's facilities, see Item 8, Note 14(b), "Notes Payable and Debt and Financing Arrangements - Letter of Credit Facilities ("LOC") and Other Sources of Collateral," to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. |
Related Party Transactions |
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Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions | Related Party Transactions (a) Investment Manager Affiliates At June 30, 2018 and 2017, the Company owned minority stakes in two and three independent investment management companies ("Investment Manager Affiliates"), respectively, that are actively managing client capital and seeking growth opportunities. The Company also invests in certain of the funds and limited partnerships and other legal entities managed by these affiliates, and, through these funds and partnerships, pays management fees and, in some instances, performance fees to the Company's Investment Manager Affiliates. In addition, at June 30, 2018 and June 30, 2017, the Company owned a minority stake in an independent firm that provides technology and other services to alternative asset managers and allocators. The Company's interest in this enterprise is reported as an Investment Manager Affiliate, and the Company pays fees to this Investment Manager Affiliate in exchange for it providing its services to the Company. Investment Manager Affiliate results are reported in the Unaudited Consolidated Statements of Income as "Income (loss) from operating affiliates." See Item 8, Note 5, "Investments in Affiliates," to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. (b) Assumed Reinsurance Contracts In the normal course of business, the Company enters into assumed reinsurance contracts with certain of its insurance affiliates, or their subsidiaries. During the three and six months ended June 30, 2018 and 2017, these contracts resulted in reported net premiums, reported net losses, and reported net acquisition costs as summarized below:
(c) New Ocean Capital Management Limited ("New Ocean") Commencing in 2014, several of the Company's wholly-owned subsidiaries retroceded assumed reinsurance business to special purpose reinsurers that receive capital from funds managed by the Company's subsidiary, New Ocean, as discussed in Note 11, "Variable Interest Entities ("VIEs")." Underwriting administration services are provided to the special purpose reinsurers by other subsidiaries of the Company under service fee agreements, while investment advisory services are provided by New Ocean. During the three and six months ended June 30, 2018, ceded premiums earned, ceded losses and loss expenses incurred, ceding commission income, and other fee income related to these retrocessional contracts were not material to the Company. (d) XL Innovate In April 2015, the Company announced the creation and sponsorship of the XL Innovate Fund, LP ("XL Innovate"), a venture capital initiative with a strategic focus on developing new capabilities in the insurance sector. The majority of XL Innovate's initial capital was financed by the Company. XL Innovate primarily seeks investments in equity positions of entities that provide new market opportunities for the Company throughout the world, striving to create partnerships outside of the traditional underwriting space to find ways to underwrite currently uninsured risks. The family trust of an employee of the Company owns a 5.21% non-controlling equity interest in XL Innovate. The employee serves as a member of the board of directors of XL Innovate, and maintains responsibility over the business generated by it. The underlying investments held by XL Innovate are reflected in the Company's Unaudited Consolidated Financial Statements in accordance with the accounting policies provided in Item 8, Note 1, "Significant Accounting Policies" to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017, based on the Company's level of investment in, and control over, such entities. Aside from investments made where the employee's family trust maintains non-controlling interest, there were no other material transactions between the Company and this employee or the employee's family trust for the three and six months ended June 30, 2018. |
Variable Interest Entities |
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities | Variable Interest Entities ("VIEs") At times, the Company has utilized VIEs both indirectly and directly in the ordinary course of the Company's business. Within its investment portfolio, the Company has holdings in hedge funds, private equity entities and other investment vehicles. A number of these vehicles are considered VIEs based on their legal form and the generally passive role of their investors. As the Company lacks the ability to control the activities that most significantly impact the economic performance of these VIEs, the Company is not considered the primary beneficiary and does not consolidate these entities. The activities of the entities are generally limited to holding investments. The exposure to loss from these investments is limited to the carrying value of the investments at the balance sheet date. In 2013, the Company, along with other investors, formed New Ocean to act as an investment manager focused on providing third-party investors access to insurance-linked securities, such as catastrophe bonds, and other insurance and reinsurance capital markets products. The Company holds a majority voting interest in New Ocean through its ownership of common shares and, accordingly, the financial statements of New Ocean have been included in the Unaudited Consolidated Financial Statements of the Company. None of the assets, liabilities, revenues or net income of New Ocean were material to the Company as of or for the three and six months ended June 30, 2018. The equity interest attributable to third-party investors in New Ocean recorded in the Company's Unaudited Consolidated Balance Sheets as "Non-controlling interest in equity of consolidated subsidiaries" was $0.7 million and $0.5 million at June 30, 2018 and December 31, 2017, respectively. After the establishment of New Ocean in 2013, the Company, along with other investors, formed a new Bermuda-based investment company, New Ocean Focus Cat Fund Ltd. ("New Ocean FCFL"), which is considered a VIE under GAAP. During the second quarter of 2014, the Company formed another new Bermuda-based investment company, New Ocean Market Value Cat Fund, Ltd. ("New Ocean MVCFL"), which is also considered a VIE under GAAP. New Ocean FCFL and New Ocean MVCFL are both managed by New Ocean. In 2014, New Ocean FCFL invested in a special purpose Bermuda reinsurer, Vector Reinsurance Ltd ("Vector Re"), which was formed for the purpose of underwriting collateralized excess-of-loss reinsurance with a focus on global property catastrophe risks. In the first quarter of 2015, New Ocean MVCFL also invested in Vector Re. Most of Vector Re's current underwriting activity relates to reinsurance business assumed from the Company's subsidiaries. Underwriting administration and claims services are provided to Vector Re by the Company under service fee contracts, while investment advisory services are provided by New Ocean. The Company currently holds a controlling financial interest in Vector Re by way of its controlling financial interests in New Ocean FCFL and New Ocean MVCFL. The total net assets of New Ocean FCFL and New Ocean MVCFL are included in the Unaudited Consolidated Financial Statements of the Company as quantified in the table below. The Company's shares of revenue and net income in its New Ocean-related VIEs were not material to the Company for the three and six months ended June 30, 2018. All appropriate inter-company transactions between the Company's consolidated entities have been eliminated.
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Commitments and Contingencies |
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Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies (a) Financial Guarantee Exposures In February 2017, the Company negotiated the termination of its final outstanding financial guarantee contracts. These contracts provided credit support for a variety of collateral types, including some issued by European financial institutions. The Company did not recognize any financial costs or any security valuation losses as a result of the terminations. (b) Litigation The Company and its subsidiaries are subject to litigation and arbitration in the normal course of business. These lawsuits and arbitrations principally involve claims on policies of insurance and contracts of reinsurance and are typical for the Company and for the property and casualty insurance and reinsurance industry in general. Such claims proceedings are considered in connection with the Company's loss and loss expense reserves. Reserves in varying amounts may or may not be established in respect of particular claims proceedings based on many factors, including the legal merits thereof. In addition to litigation relating to insurance and reinsurance claims, the Company and its subsidiaries are subject to lawsuits and regulatory actions in the normal course of business that do not arise from or directly relate to claims on insurance or reinsurance policies. This category of business litigation typically involves, among other things, allegations of underwriting errors or misconduct, employment claims, regulatory activity, shareholder disputes or disputes arising from business ventures. The status of these legal actions is actively monitored by management. Legal actions are subject to inherent uncertainties, and future events could change management's assessment of the probability or estimated amount of potential losses from pending or threatened legal actions. Based on available information, it is the opinion of management that the ultimate resolution of pending or threatened legal actions other than claims proceedings, both individually and in the aggregate, will not result in losses having a material adverse effect on the Company's financial position or liquidity at June 30, 2018. If management believes that, based on available information, it is at least reasonably possible that a material loss (or additional material loss in excess of any accrual) will be incurred in connection with any legal actions other than claims proceedings, the Company discloses an estimate of the possible loss or range of loss, either individually or in the aggregate, as appropriate, if such an estimate can be made, or discloses that an estimate cannot be made. Based on the Company's assessment at June 30, 2018, no such disclosures were considered necessary. |
Share Capital |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||
Share Capital | Share Capital (a) Authorized and Issued Buybacks of Common Shares On February 17, 2017, XL Group announced that its Board of Directors approved a new share buyback program, authorizing the purchase of up to $1.0 billion of XL Group shares (the "February 2017 Program"). The Company did not repurchase any shares under the February 2017 Program for the three and six months ended June 30, 2018. At June 30, 2018, $529.1 million remained available for purchase under the February 2017 Program. Other share buybacks, for the purpose of settling employee withholding taxes incurred in connection with the vesting of share-based compensation awards, amounted to $0.4 million and $2.1 million for the three and six months ended June 30, 2018, respectively. (b) Stock Plans The Company's performance incentive programs provide for grants of stock options, restricted stock, equity-classed restricted stock units, liability-classed restricted stock units, liability-classed cash units, performance units and stock appreciation rights. Share-based compensation granted by the Company generally provides for a vesting period of three or four years and certain awards also provide for performance conditions. The Company records compensation expense related to each award over its vesting period, incorporating the best estimate of the expected outcome of performance conditions where applicable. Compensation expense is generally recorded on a straight line basis over the vesting period of an award. See Item 8, Note 19, "Share Capital," to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017 for further information on the Company's performance incentive programs and associated accounting. During the six months ended June 30, 2018, the Company granted approximately 0.4 million stock options with a weighted-average grant date fair value of $10.34 per option. The fair value of the options issued was estimated on the date of grant using the Black-Scholes option pricing model incorporating the following weighted average assumptions:
During the six months ended June 30, 2018, the Company granted 30,911 restricted stock awards to certain employees and directors of the Company and its subsidiaries with an aggregate grant date fair value of approximately $1.7 million. The restricted stock award recipients have the rights and privileges of a shareholder, including the right to receive dividends that are declared and paid and the right to vote such restricted stock. The recipients are not entitled to receive delivery of a stock certificate prior to vesting nor may any restricted stock be sold, transferred, pledged, or otherwise disposed of prior to the satisfaction of all vesting requirements. During the six months ended June 30, 2018, the Company granted approximately 1.2 million equity-classed restricted stock units to certain employees with an aggregate grant date fair value of approximately $51.3 million. Each equity-classed restricted stock unit represents the Company's obligation to deliver to the holder one common share, and grants may vest in three or four equal installments upon the first, second, third and, if applicable, fourth anniversaries of the date of grant. Equity-classed restricted stock units are granted at the closing market price on the day of grant and entitle the holder to receive dividends that are declared and paid in the form of additional common shares contingent upon vesting. During the six months ended June 30, 2018, the Company granted approximately 0.3 million performance units (representing a potential maximum share payout of approximately 0.6 million common shares) to certain employees with an aggregate grant date fair value of approximately $13.5 million. Each grant of performance units has a target number of shares, with final payouts ranging from 0% to 200% of the grant amount depending upon the achievement of stated relative and absolute financial performance metrics and stated market metrics, along with each employee's continued service through the vesting date. Performance units granted in the current year are granted at the closing market price on the day of grant and entitle the holder to receive dividends that are declared and paid in the form of additional common shares contingent upon vesting. |
Computation of Earnings Per Common Share and Common Share Equivalent |
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Computation of Earnings Per Common Share and Common Share Equivalent | Computation of Earnings Per Common Share and Common Share Equivalents The following table sets forth the computation of basic and diluted earnings per common share for the three and six months ended June 30, 2018 and 2017:
For the three and six months ended June 30, 2018 and 2017, common shares available for issuance under share-based compensation plans noted in the table below were not included in the calculation of diluted earnings per common share because the assumed exercise or issuance of such shares would be anti-dilutive.
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Accumulated Other Comprehensive Income (Loss) |
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Comprehensive Income Loss Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The changes in AOCI, net of tax, by component for the three and six months ended June 30, 2018 and 2017 are as follows:
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The reclassifications out of AOCI along with the associated Unaudited Consolidated Statements of Income line items affected by component, and the total related tax (expense) benefit for the three and six months ended June 30, 2018 and 2017 are as follows:
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Guarantor Financial Information |
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Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantor Financial Information | Guarantor Financial Information The following tables present condensed consolidating balance sheets at June 30, 2018 and December 31, 2017, condensed consolidating statements of income and comprehensive income for the three and six months ended June 30, 2018 and 2017 and condensed consolidating statements of cash flows for the six months ended June 30, 2018 and 2017 for XL Group, XLIT, a 100% owned subsidiary of XL Group, and XL Group's other subsidiaries (excluding XL Group plc ("XL-Ireland")), which are all 100% directly or indirectly owned subsidiaries of XLIT. For purposes of this disclosure, the results of XL-Ireland, which is currently in liquidation proceedings and whose assets are otherwise immaterial, at June 30, 2018 and December 31, 2017 and for the three and six months ended June 30, 2018 and 2017 have been included within the results of XL Group.
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Significant Accounting Policies (Policies) |
6 Months Ended |
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Accounting Policies [Abstract] | |
Basis of accounting | Basis of Preparation and Consolidation Unless the context otherwise indicates, references herein to the "Company" include the accounts of XL Group Ltd, a Bermuda exempted company ("XL Group"), together with its consolidated subsidiaries. These Unaudited Consolidated Financial Statements include the accounts of the Company and have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by GAAP for complete financial statements. In addition, the year-end balance sheet data was derived from audited financial statements but do not include all disclosures required by GAAP. In the opinion of management, these unaudited financial statements reflect all adjustments considered necessary for a fair statement of financial position and results of operations at the end of and for the periods presented. The results of operations for any interim period are not necessarily indicative of the results for a full year. All inter-company accounts and transactions have been eliminated. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure about contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from these estimates. For further information, see Item 8, Note 1(a), "Significant Accounting Policies - Basis of Preparation and Consolidation," to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. In May 2014, the Company ceded the majority of its life reinsurance business to GreyCastle Life Reinsurance ("GCLR") via 100% quota share reinsurance (the "GreyCastle Life Retro Arrangements"). Under the terms of the transaction, the Company continues to own, on a funds withheld basis, assets supporting the GreyCastle Life Retro Arrangements consisting of cash, fixed maturity securities and accrued interest (the "Life Funds Withheld Assets"). The Life Funds Withheld Assets are managed pursuant to agreed investment guidelines that meet the contractual commitments of the XL ceding companies and applicable laws and regulations. All of the investment results associated with the Life Funds Withheld Assets ultimately accrue to GCLR. Because the Company no longer shares in the risks and rewards of the underlying performance of the supporting invested assets, disclosures within the financial statement notes included herein separate the Life Funds Withheld Assets from the rest of the Company's investments. For further information, see Item 8, Note 1(a), "Significant Accounting Policies - Basis of Preparation and Consolidation," to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. To facilitate period-to-period comparisons, certain reclassifications have been made to prior period consolidated financial statement amounts to conform to current period presentation. |
Recent accounting pronouncements | Recent Accounting Pronouncements Recently Issued Accounting Standards Adopted in 2018 ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the Financial Accounting Standards Board ("FASB") issued an accounting standards update concerning the accounting for financial instruments. The guidance retains the basic existing framework for accounting for financial instruments under GAAP, while achieving limited convergence with IFRS in this area. The guidance: (1) requires equity investments (except consolidated entities and those accounted for under the equity method of accounting) to be measured at fair value with changes in fair value recognized in net income; (2) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (3) eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost for non-public business entities; (4) eliminates the requirement to disclose the method(s) and significant assumptions used to estimate the fair value of financial instruments measured at amortized cost on the balance sheet; (5) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (6) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial statements; (7) requires separate presentation of financial assets and financial liabilities by measurement category and form of asset in the financial statements; and (8) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to AFS securities in combination with the entity's other deferred tax assets. The guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Adoption is required to be applied by means of a cumulative effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption, except the amendments related to impairment of equity securities without readily determinable fair values. The Company adopted this guidance as of January 1, 2018. As of that date, accumulated unrealized gains and losses relating to investments in equity securities and certain of our other investments, net of tax, which were included in accumulated other comprehensive income, were reclassified to retained earnings. At January 1, 2018 the amount of the reclassification was a net unrealized gain of $233.8 million, less deferred tax of $11.9 million. Adoption of this update has an effect on results of operations going forward, as mark-to-market movements on equity securities now impact net income; however, it does not have a material impact on the Company's cash flows. ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued an accounting standards update concerning the presentation and classification of certain cash receipts and cash payments in the statement of cash flows. The amendments in this update are intended to address areas where GAAP is unclear and diversity in practice exists. The following areas are covered in this update: (1) debt prepayment or debt extinguishment costs; (2) settlement of zero-coupon debt instruments; (3) contingent consideration payments following a business combination; (4) proceeds from settlement of insurance claims; (5) proceeds from settlement of corporate-owned life insurance policies; (6) distributions received from equity method investees; (7) beneficial interests in securitization transactions; and (8) separation of cash flows. The guidance is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company adopted this guidance as of January 1, 2018 using the retrospective transition method required by these amendments. As required in adopting this standard, the Company made a formal accounting policy election regarding classification of distributions received from equity method investees, choosing to use the Nature of Distribution approach. This approach is consistent with historical practice utilized by the Company in classifying these distributions. Overall, adoption of the guidance did not have a material impact on the Company's cash flows, and had no impact on the Company's financial position or results of operations. ASU 2016-16, Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory In October 2016, the FASB issued an accounting standards update concerning the tax effects of intra-entity asset transfers within a group. The guidance requires an entity to reflect the income tax consequences of an intra-entity transfer of an asset other than inventory when that transfer occurs. This is a departure from previous GAAP, which prohibited recognition of tax on such transfers until the asset had been sold to an external party or otherwise realized. The amendments are effective for annual reporting periods beginning after December 15, 2017, and interim periods within those fiscal years. The amendments are required to be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company adopted this guidance as of January 1, 2018. This guidance did not have a material impact on the Company's financial condition, results of operations, or cash flows. ASU 2016-18, Statement of Cash Flows: Restricted Cash In November 2016, the FASB issued an accounting standards update concerning the presentation of restricted cash within the statement of cash flows. Previous GAAP did not provide guidance on the presentation or classification of movements in restricted cash. The update requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included as a component of cash and cash equivalents when reconciling beginning-of-period and end-of-period totals within the statement of cash flows. The guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The guidance is required to be applied retrospectively to all periods presented in the statements of cash flows. The Company adopted this guidance as of January 1, 2018. As result, the net amount of the change in the restricted cash balances during each reporting period is no longer being presented as a discrete line item "Change in restricted cash" within investing cash flows for each applicable period, as was previously reported in the Company's Unaudited Consolidated Statements of Cash Flows for the six months ended June 30, 2017. This guidance did not have an impact on the Company's financial position or results of operations. ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost In March 2017, the FASB issued an accounting standards update concerning the presentation of costs related to defined benefit pension plans and similar plans. The amendments in this ASU principally require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by relevant employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. If a separate line item or items are used to present the other components of net benefit cost, that line item or items must be appropriately described. If a separate line item or items are not used, the line item or items used in the income statement to present the other components of net benefit cost must be disclosed. The amendments in the update are effective for public business entities for annual periods beginning after December 15, 2017, including interim periods within those annual periods. The amendments relating to presentation in the income statement are required to be applied retrospectively. Disclosures of the nature of and reason for the change in accounting principle are required in the first interim and annual periods of adoption. The Company adopted this guidance as of January 1, 2018. The impact of this guidance on the Company is disclosure-related only, and it does not have an impact on the Company's financial position, results of operations or cash flows. As the impact of adopting this standard is not material, updated disclosure on the Company's defined benefit pension plans has not been provided for either the current or the prior quarterly period. For the Company’s most recent disclosures, see Item 8, Note 17, "Retirement Plans" to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB issued an accounting standards update concerning the stranded tax effects resulting from tax rate changes legislated by the U.S. Tax Cuts and Jobs Act. Under GAAP, the effects of all changes in tax rates on deferred tax balances are reflected in income, even if the tax balances relate to items of accumulated other comprehensive income. This update permits companies to make an election to reclassify from accumulated other comprehensive income to retained earnings such stranded tax effects resulting from the U.S. Tax Cuts and Jobs Act. Certain disclosures are also required by the update. The amendments are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those financial years. For public business entities, early adoption is permitted, including adoption in any interim period for reporting periods for which financial statements have not yet been issued. The amendments should be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. Tax Cuts and Jobs Act is recognized. The Company early-adopted this guidance by making the permitted election in the first quarter of 2018, recognizing a reclassification of $3.9 million from accumulated other comprehensive income to retained earnings in the period of adoption. In general, in accounting for the release of income tax effects from accumulated other comprehensive income, the Company applies the individual item approach with respect to available-for-sale debt securities, and the portfolio approach with respect to pension, postretirement benefit plan obligations and currency translation matters. ASU 2018-05, Income Taxes: Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 In March 2018, the FASB issued an accounting standards update concerning the income tax accounting implications of the U.S. Tax Cuts and Jobs Act. The update codifies SEC-related material within the Accounting Standards Codification pursuant to the issuance of SEC Staff Accounting Bulletin No. 118 (‘SAB 118’). SAB 118 provided clarifying guidance for how a public business entity should address the situation in which the accounting for certain income tax effects of the U.S. Tax Cuts and Jobs Act was not completed by the time financial statements were issued for the reporting period in which the legislation was enacted. In such circumstances, the incomplete effects are reported when a reasonable estimate can be determined, based on that estimate. Provisional amounts can be updated during a measurement period not exceeding one year. Disclosures concerning any incomplete effects and adjustments are required. The Company complied with the requirements of SAB 118 in its Form 10-K for the year ended December 31, 2017 and no further changes were required to comply with this update when adopted in the three months ended March 31, 2018. During the six months ended June 30, 2018, there were no changes to any outstanding items as reported in Item 8, Note 23, "Taxation" to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. Recently Issued Accounting Standard Not Yet Adopted ASU 2018-11, Leases: Targeted Improvements In July 2018, the FASB issued an accounting standards update that aims to reduce costs and ease implementation of the leases standard (ASU 2016-02) for financial statement preparers. The amendments in this update add a new transition option for the provisions of ASU 2016-02, and also provide a practical expedient that permits lessors to avoid separating lease and nonlease components. As originally published, ASU 2016-02 required transition at the beginning of the earliest comparative period presented in the financial statements. This new additional transition option allows entities to adopt the provisions of ASU 2016-02 by means of a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. In this situation any comparative periods prior to adoption would continue to be presented in accordance with existing US GAAP Topic 840, including associated disclosure requirements. The practical expedient allows lessors to not separate nonlease components from the associated lease component, similar to the expedient provided for lessees, subject to certain restrictions. The transition option is effective as part of the adoption of ASU 2016-02, which for public business entities is mandatory for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. For entities which have not already adopted ASU 2016-02, the practical expedient for lessor separation of nonlease components is effective at the same time as that standard. The Company is currently evaluating the impact of this guidance. |
Segment Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of segment reporting, by segment | The following tables summarize the segment results for the three and six months ended June 30, 2018 and 2017:
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Schedule of net premiums earned by line of business | The following tables summarize the Company's net premiums earned by product type for the three and six months ended June 30, 2018 and 2017:
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Investments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized cost and fair value summary | The cost (amortized cost for fixed maturities and short-term investments), fair value, gross unrealized gains and gross unrealized (losses), including non-credit related OTTI recorded in accumulated other comprehensive income ("AOCI"), of the Company's investments AFS at June 30, 2018 and December 31, 2017 were as follows:
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The amortized cost and fair value of trading investments at June 30, 2018 and December 31, 2017 were as follows:
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Contractual maturities summary | The contractual maturities of AFS fixed maturity securities at June 30, 2018 and December 31, 2017 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.
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Summary of unrealized losses | The following table sets forth the fair value, gross unrealized loss and length of time AFS securities had been in a continual unrealized loss position at June 30, 2018 and December 31, 2017:
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Analysis of net realized gains (losses) on investments | The following table sets forth the gross and net realized gains (losses) on investments and unrealized gains (losses) on mark to market investments for the periods presented:
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Schedule of other than temporary impairments | The components of OTTI charges for the three and six months ended June 30, 2018 and 2017, as defined in Note 1(g), "Significant Accounting Policies - Other-Than-Temporary Impairments of Available for Sale," to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017, for investments excluding Life Funds Withheld Assets were:
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Credit loss impairments on fixed inmcome securities rollforward | The following table sets forth the amount of credit loss impairments on fixed income securities, for which a portion of the OTTI loss was recognized in Other Comprehensive Income ("OCI"), held by the Company at the dates or for the periods indicated and the corresponding changes in such amounts:
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Derivative Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of location and gross amounts of derivative fair values | The following table summarizes information on the notional amounts and gross amounts of derivative fair values contained in the Unaudited Consolidated Balance Sheets at June 30, 2018 and December 31, 2017:
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Summary of hedges of net investment in foreign operation | The following table provides the weighted average U.S. dollar equivalent of foreign denominated net assets that were hedged and the resulting derivative gain (loss) that was recorded in the foreign currency translation adjustment, net of tax, account within AOCI for the three and six months ended June 30, 2018 and 2017:
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Summary of net realized and unrealized gains (losses) on derivative instruments | The following table provides the total impact on earnings relating to derivative instruments not formally designated as hedging instruments. The impacts are all recorded through "Net realized and unrealized gains (losses) on derivative instruments" in the Unaudited Consolidated Statements of Income for the three and six months ended June 30, 2018 and 2017:
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Summary of impact of Life Retro Arrangements | The impact of the GreyCastle Life Retro Arrangements on the Company's results was as follows:
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Summary of fair value hedges that have been settled and their impact on results | A summary of the fair value hedges that have been settled and their impact on results up to the indicated periods, as well as the remaining balance of the fair value hedges and average years remaining to maturity at June 30, 2018 and 2017, are shown below:
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Summary of contingent credit features | The aggregate fair value of all derivative agreements containing such rating downgrade provisions that were in a liability position and any collateral posted under these agreements at June 30, 2018 and December 31, 2017 were as follows:
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Fair Value Measurements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Hierarchy | The following tables set forth the Company's assets and liabilities that were accounted for at fair value at June 30, 2018 and December 31, 2017 by level within the fair value hierarchy:
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Level 3 Roll Forward |
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Financial Instruments Not Carried at Fair Value | The following table includes financial instruments for which the carrying value differs from the estimated fair values at June 30, 2018 and December 31, 2017. All of these fair value estimates are considered Level 2 fair value measurements.
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Goodwill and Other Intangible Assets (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Analysis of goodwill and intangible assets | The following table presents an analysis of goodwill, intangible assets with an indefinite life and intangible assets with a definite life for the six months ended June 30, 2018:
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Losses and Loss Expenses (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liability for Claims and Claims Adjustment Expense [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of the beginning and ending balances of unpaid losses and loss expenses | The following table represents a reconciliation of the beginning and ending balances of unpaid losses and loss expenses, including an analysis of the Company's paid and unpaid losses and loss expenses incurred for the years indicated:
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Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (favorable) adverse prior year loss development | The following table presents the net (favorable) adverse prior year loss development of the Company's loss and loss expense reserves for its P&C operations by operating segment for each of the years indicated:
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Insurance Segment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (favorable) adverse prior year loss development | The following table summarizes the net (favorable) adverse prior year reserve development by product type relating to the Insurance segment for the six months ended June 30, 2018 and 2017
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Reinsurance Segment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (favorable) adverse prior year loss development | The following table summarizes the net (favorable) adverse prior year reserve development by line of business relating to the Reinsurance segment for the six months ended June 30, 2018 and 2017:
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Notes Payable and Debt and Financing Arrangements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of financing structure | The following table presents the Company's outstanding notes payable and debt at June 30, 2018 and December 31, 2017:
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Letter of Credit Summary | The following table presents the Company's ten LOC facilities and revolving credit facilities at June 30, 2018 and December 31, 2017:
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Related Party Transactions (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of related party transactions | During the three and six months ended June 30, 2018 and 2017, these contracts resulted in reported net premiums, reported net losses, and reported net acquisition costs as summarized below:
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Variable Interest Entities - (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of variable interest entities | The Company currently holds a controlling financial interest in Vector Re by way of its controlling financial interests in New Ocean FCFL and New Ocean MVCFL. The total net assets of New Ocean FCFL and New Ocean MVCFL are included in the Unaudited Consolidated Financial Statements of the Company as quantified in the table below. The Company's shares of revenue and net income in its New Ocean-related VIEs were not material to the Company for the three and six months ended June 30, 2018. All appropriate inter-company transactions between the Company's consolidated entities have been eliminated.
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Share Capital (Tables) |
6 Months Ended | ||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||
Schedule of Valuation Assumptions - Stock Options | The fair value of the options issued was estimated on the date of grant using the Black-Scholes option pricing model incorporating the following weighted average assumptions:
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Computation of Earnings Per Common Share and Common Share Equivalent (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Calculation of earnings per share | The following table sets forth the computation of basic and diluted earnings per common share for the three and six months ended June 30, 2018 and 2017:
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Antidilutive securities excluded from the computation of earnings per share | For the three and six months ended June 30, 2018 and 2017, common shares available for issuance under share-based compensation plans noted in the table below were not included in the calculation of diluted earnings per common share because the assumed exercise or issuance of such shares would be anti-dilutive.
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Accumulated Other Comprehensive Income (Loss) (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income Loss Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The changes in AOCI, net of tax, by component for the three and six months ended June 30, 2018 and 2017 are as follows:
____________
|
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Reclassification out of Accumulated Other Comprehensive Income | The reclassifications out of AOCI along with the associated Unaudited Consolidated Statements of Income line items affected by component, and the total related tax (expense) benefit for the three and six months ended June 30, 2018 and 2017 are as follows:
|
Guarantor Financial Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantor balance sheet |
____________
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Guarantor income statement |
____________
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Guarantor cash flow |
____________
____________
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Significant Accounting Policies (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2018 |
May 30, 2014 |
|
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Cumulative Effect on Retained Earnings, before Tax | $ 233,800 | ||
Cumulative Effect on Retained Earnings, Tax | (11,900) | ||
Grey Castle Life Reinsurance SAC Ltd | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Quota share reinsurance agreement, percentage | 100.00% | ||
Accounting Standards Update 2018-02 | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Reclassification due to adoption of new accounting pronouncement | (3,903) | ||
Accounting Standards Update 2018-02 | AOCI Attributable to Parent [Member] | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Reclassification due to adoption of new accounting pronouncement | $ 0 | $ (3,903) |
Acquisition and Disposals - Merger with AXA (Details) - AXA SA [Member] $ / shares in Units, $ in Billions |
Mar. 05, 2018
USD ($)
$ / shares
|
---|---|
Business Acquisition [Line Items] | |
Percentage acquired | 100.00% |
Share price, per common share | $ 57.60 |
Estimated aggregate consideration | $ | $ 15.3 |
Maximum dividend permitted per share | $ 0.22 |
Segment Information - Statement of earnings by segment (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
||||||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||||
Gross premiums written | $ 3,985,366 | $ 3,612,949 | $ 8,965,101 | $ 8,291,366 | |||||||||||||||||||||||||||||||||
Net premiums written | 2,821,744 | 2,649,265 | 5,977,462 | 5,632,335 | |||||||||||||||||||||||||||||||||
Net premiums earned | 2,695,169 | 2,516,917 | 5,295,457 | 5,039,708 | |||||||||||||||||||||||||||||||||
Net losses and loss expenses | [1] | 1,731,426 | 1,536,678 | 3,363,739 | 3,127,425 | ||||||||||||||||||||||||||||||||
Acquisition costs | 471,491 | 433,584 | 935,318 | 869,453 | [1] | ||||||||||||||||||||||||||||||||
Operating expenses | [2] | 387,089 | 358,394 | 777,149 | 716,113 | ||||||||||||||||||||||||||||||||
Underwriting profit (loss) | 105,163 | 188,261 | 219,251 | 326,717 | |||||||||||||||||||||||||||||||||
Net results from structured products | 8,382 | [3] | 2,923 | [4] | 11,793 | [5] | 5,837 | [6] | |||||||||||||||||||||||||||||
Net fee income and other | (3,806) | [7] | (1,997) | [8] | (9,548) | [9] | 218 | [10] | |||||||||||||||||||||||||||||
Net realized and unrealized gains (losses) on derivative instruments | 16,126 | (906) | 20,347 | (7,975) | |||||||||||||||||||||||||||||||||
Net income (loss) from investment fund affiliates and operating affiliates | 67,735 | 73,522 | 123,686 | 125,392 | |||||||||||||||||||||||||||||||||
Foreign exchange (gains) losses | (12,140) | (5,643) | (2,299) | (8,979) | |||||||||||||||||||||||||||||||||
Corporate operating expenses | 71,308 | 102,162 | 141,351 | 201,035 | |||||||||||||||||||||||||||||||||
Contribution from P&C and Corporate and Other | 408,605 | 382,471 | 646,386 | 649,662 | |||||||||||||||||||||||||||||||||
Interest expense | [11] | 44,769 | 43,422 | 89,415 | 83,672 | ||||||||||||||||||||||||||||||||
Income tax | 27,036 | 29,006 | 58,938 | 42,098 | |||||||||||||||||||||||||||||||||
Non-controlling interests | 17,804 | 8,423 | 26,389 | 69,429 | |||||||||||||||||||||||||||||||||
Net income (loss) attributable to common shareholders | 318,996 | 301,620 | 471,644 | 454,463 | |||||||||||||||||||||||||||||||||
Excluding Life Funds Withheld Assets | |||||||||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||||
Net investment income | [12] | 189,236 | 163,716 | 365,008 | 317,509 | ||||||||||||||||||||||||||||||||
Net realized investment gains (losses) | 27,396 | 49,169 | (33,447) | 53,387 | |||||||||||||||||||||||||||||||||
Life Funds Withheld Assets | |||||||||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||||
Net investment income | 30,252 | 31,439 | 60,650 | 64,803 | |||||||||||||||||||||||||||||||||
Net realized investment gains (losses) | 63,409 | 7,459 | 40,897 | 40,527 | |||||||||||||||||||||||||||||||||
Net realized and unrealized gains (losses) on derivative instruments | (36,120) | (34,596) | (13,199) | (84,697) | |||||||||||||||||||||||||||||||||
Corporate and Other | |||||||||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||||
Gross premiums written | [13] | 55,093 | 58,519 | 107,688 | 115,330 | ||||||||||||||||||||||||||||||||
Net premiums written | [13] | 2,505 | 2,824 | 5,612 | 6,134 | ||||||||||||||||||||||||||||||||
Net premiums earned | [13] | 2,505 | 2,824 | 5,612 | 6,134 | ||||||||||||||||||||||||||||||||
Net losses and loss expenses | [1],[13] | 10,117 | 7,595 | 20,424 | 14,886 | ||||||||||||||||||||||||||||||||
Acquisition costs | [13] | 1,259 | 1,282 | 2,270 | 2,589 | [1] | |||||||||||||||||||||||||||||||
Operating expenses | [2],[13] | 195 | 278 | 336 | 511 | ||||||||||||||||||||||||||||||||
Underwriting profit (loss) | [13] | (9,066) | (6,331) | (17,418) | (11,852) | ||||||||||||||||||||||||||||||||
Net results from structured products | [13] | 0 | [3] | 0 | [4] | 0 | [5] | 0 | [6] | ||||||||||||||||||||||||||||
Net fee income and other | [13] | 45 | [7] | 135 | [8] | 114 | [9] | (303) | [10] | ||||||||||||||||||||||||||||
Net realized and unrealized gains (losses) on derivative instruments | [13] | 16,126 | (906) | 20,347 | (7,975) | ||||||||||||||||||||||||||||||||
Net income (loss) from investment fund affiliates and operating affiliates | [13] | 67,735 | 73,522 | 123,686 | 125,392 | ||||||||||||||||||||||||||||||||
Foreign exchange (gains) losses | [13] | (12,140) | (5,643) | (2,299) | (8,979) | ||||||||||||||||||||||||||||||||
Corporate operating expenses | [13] | 71,308 | 102,162 | 141,351 | 201,035 | ||||||||||||||||||||||||||||||||
Contribution from P&C and Corporate and Other | [13] | 82,934 | (25,611) | 93,379 | (59,361) | ||||||||||||||||||||||||||||||||
Interest expense | [11],[13] | 44,769 | 43,422 | 89,415 | 83,672 | ||||||||||||||||||||||||||||||||
Income tax | [13] | 27,036 | 29,006 | 58,938 | 42,098 | ||||||||||||||||||||||||||||||||
Non-controlling interests | [13] | 17,804 | 8,423 | 26,389 | 69,429 | ||||||||||||||||||||||||||||||||
Corporate and Other | Excluding Life Funds Withheld Assets | |||||||||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||||
Net investment income | [12],[13] | 7,227 | 8,157 | 14,746 | 15,384 | ||||||||||||||||||||||||||||||||
Net realized investment gains (losses) | [13] | 2,494 | (7,971) | 2,608 | (8,584) | ||||||||||||||||||||||||||||||||
Corporate and Other | Life Funds Withheld Assets | |||||||||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||||
Net investment income | [13] | 30,252 | 31,439 | 60,650 | 64,803 | ||||||||||||||||||||||||||||||||
Net realized investment gains (losses) | 63,409 | 7,459 | 40,897 | 40,527 | |||||||||||||||||||||||||||||||||
Net realized and unrealized gains (losses) on derivative instruments | [13] | (36,120) | (34,596) | (13,199) | (84,697) | ||||||||||||||||||||||||||||||||
Operating segments | Total P&C | |||||||||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||||
Gross premiums written | 3,930,273 | 3,554,430 | 8,857,413 | 8,176,036 | |||||||||||||||||||||||||||||||||
Net premiums written | 2,819,239 | 2,646,441 | 5,971,850 | 5,626,201 | |||||||||||||||||||||||||||||||||
Net premiums earned | 2,692,664 | 2,514,093 | 5,289,845 | 5,033,574 | |||||||||||||||||||||||||||||||||
Net losses and loss expenses | [1] | 1,721,309 | 1,529,083 | 3,343,315 | 3,112,539 | ||||||||||||||||||||||||||||||||
Acquisition costs | 470,232 | 432,302 | 933,048 | 866,864 | [1] | ||||||||||||||||||||||||||||||||
Operating expenses | [2] | 386,894 | 358,116 | 776,813 | 715,602 | ||||||||||||||||||||||||||||||||
Underwriting profit (loss) | 114,229 | 194,592 | 236,669 | 338,569 | |||||||||||||||||||||||||||||||||
Net results from structured products | 8,382 | [3] | 2,923 | [4] | 11,793 | [5] | 5,837 | [6] | |||||||||||||||||||||||||||||
Net fee income and other | (3,851) | [7] | (2,132) | [8] | (9,662) | [9] | 521 | [10] | |||||||||||||||||||||||||||||
Net realized and unrealized gains (losses) on derivative instruments | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||
Contribution from P&C and Corporate and Other | $ 325,671 | $ 408,082 | $ 553,007 | $ 709,023 | |||||||||||||||||||||||||||||||||
Ratios - P&C operations | |||||||||||||||||||||||||||||||||||||
Loss and loss expense ratio | [14] | 63.90% | 60.80% | 63.20% | 61.80% | ||||||||||||||||||||||||||||||||
Underwriting expense ratio | [14] | 31.90% | 31.50% | 32.30% | 31.50% | ||||||||||||||||||||||||||||||||
Combined ratio | [14] | 95.80% | 92.30% | 95.50% | 93.30% | ||||||||||||||||||||||||||||||||
Operating segments | Total P&C | Excluding Life Funds Withheld Assets | |||||||||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||||
Net investment income | [12] | $ 182,009 | $ 155,559 | $ 350,262 | $ 302,125 | ||||||||||||||||||||||||||||||||
Net realized investment gains (losses) | 24,902 | 57,140 | (36,055) | 61,971 | |||||||||||||||||||||||||||||||||
Operating segments | Total P&C | Life Funds Withheld Assets | |||||||||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||||
Net realized investment gains (losses) | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
Operating segments | Insurance Segment | |||||||||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||||
Gross premiums written | 2,881,921 | 2,576,754 | 5,748,460 | 5,270,970 | |||||||||||||||||||||||||||||||||
Net premiums written | 1,929,564 | 1,741,201 | 3,411,431 | 3,249,792 | |||||||||||||||||||||||||||||||||
Net premiums earned | 1,748,355 | 1,652,304 | 3,414,144 | 3,287,619 | |||||||||||||||||||||||||||||||||
Net losses and loss expenses | [1] | 1,224,756 | 1,077,087 | 2,289,748 | 2,137,450 | ||||||||||||||||||||||||||||||||
Acquisition costs | 237,694 | 231,908 | 459,656 | 442,391 | [1] | ||||||||||||||||||||||||||||||||
Operating expenses | [2] | 306,585 | 288,681 | 622,965 | 574,410 | ||||||||||||||||||||||||||||||||
Underwriting profit (loss) | (20,680) | 54,628 | 41,775 | 133,368 | |||||||||||||||||||||||||||||||||
Net results from structured products | 1,810 | [3] | 1,981 | [4] | 3,913 | [5] | 4,250 | [6] | |||||||||||||||||||||||||||||
Net fee income and other | $ (4,991) | [7] | $ (2,826) | [8] | $ (11,694) | [9] | $ (859) | [10] | |||||||||||||||||||||||||||||
Ratios - P&C operations | |||||||||||||||||||||||||||||||||||||
Loss and loss expense ratio | [14] | 70.10% | 65.20% | 67.10% | 65.00% | ||||||||||||||||||||||||||||||||
Underwriting expense ratio | [14] | 31.10% | 31.50% | 31.70% | 30.90% | ||||||||||||||||||||||||||||||||
Combined ratio | [14] | 101.20% | 96.70% | 98.80% | 95.90% | ||||||||||||||||||||||||||||||||
Operating segments | Reinsurance Segment | |||||||||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||||
Gross premiums written | $ 1,048,352 | $ 977,676 | $ 3,108,953 | $ 2,905,066 | |||||||||||||||||||||||||||||||||
Net premiums written | 889,675 | 905,240 | 2,560,419 | 2,376,409 | |||||||||||||||||||||||||||||||||
Net premiums earned | 944,309 | 861,789 | 1,875,701 | 1,745,955 | |||||||||||||||||||||||||||||||||
Net losses and loss expenses | [1] | 496,553 | 451,996 | 1,053,567 | 975,089 | ||||||||||||||||||||||||||||||||
Acquisition costs | 232,538 | 200,394 | 473,392 | 424,473 | [1] | ||||||||||||||||||||||||||||||||
Operating expenses | [2] | 80,309 | 69,435 | 153,848 | 141,192 | ||||||||||||||||||||||||||||||||
Underwriting profit (loss) | 134,909 | 139,964 | 194,894 | 205,201 | |||||||||||||||||||||||||||||||||
Net results from structured products | 6,572 | [3] | 942 | [4] | 7,880 | [5] | 1,587 | [6] | |||||||||||||||||||||||||||||
Net fee income and other | $ 1,140 | [7] | $ 694 | [8] | $ 2,032 | [9] | $ 1,380 | [10] | |||||||||||||||||||||||||||||
Ratios - P&C operations | |||||||||||||||||||||||||||||||||||||
Loss and loss expense ratio | [14] | 52.60% | 52.40% | 56.20% | 55.80% | ||||||||||||||||||||||||||||||||
Underwriting expense ratio | [14] | 33.10% | 31.40% | 33.40% | 32.40% | ||||||||||||||||||||||||||||||||
Combined ratio | [14] | 85.70% | 83.80% | 89.60% | 88.20% | ||||||||||||||||||||||||||||||||
|
Segment Information - Net Premiums Earned by Line of Business (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
||||||||||||
Net premiums earned by line of business: | |||||||||||||||
P&C Operations | $ 2,692,664 | $ 2,514,093 | $ 5,289,845 | $ 5,033,574 | |||||||||||
Life Operations | 2,505 | 2,824 | 5,612 | 6,134 | |||||||||||
Total | 2,695,169 | 2,516,917 | 5,295,457 | 5,039,708 | |||||||||||
Other life | |||||||||||||||
Net premiums earned by line of business: | |||||||||||||||
Life Operations | 2,505 | 2,824 | 5,612 | 6,134 | |||||||||||
Total P&C | Professional | |||||||||||||||
Net premiums earned by line of business: | |||||||||||||||
P&C Operations | 399,223 | 360,374 | 784,548 | 718,782 | |||||||||||
Total P&C | Casualty | |||||||||||||||
Net premiums earned by line of business: | |||||||||||||||
P&C Operations | 667,376 | 687,282 | 1,298,349 | 1,318,111 | |||||||||||
Total P&C | Property catastrophe | |||||||||||||||
Net premiums earned by line of business: | |||||||||||||||
P&C Operations | 129,727 | 164,057 | 266,230 | 312,463 | |||||||||||
Total P&C | Property | |||||||||||||||
Net premiums earned by line of business: | |||||||||||||||
P&C Operations | 683,268 | 692,723 | 1,348,135 | 1,415,572 | |||||||||||
Total P&C | Specialty | |||||||||||||||
Net premiums earned by line of business: | |||||||||||||||
P&C Operations | 518,058 | 450,779 | 1,019,969 | 890,092 | |||||||||||
Total P&C | Other | |||||||||||||||
Net premiums earned by line of business: | |||||||||||||||
P&C Operations | [1] | 295,012 | 158,878 | 572,614 | 378,554 | ||||||||||
Corporate and Other | |||||||||||||||
Net premiums earned by line of business: | |||||||||||||||
Life Operations | 2,505 | 2,824 | 5,612 | 6,134 | |||||||||||
Total | [2] | 2,505 | 2,824 | 5,612 | 6,134 | ||||||||||
Corporate and Other | Other life | |||||||||||||||
Net premiums earned by line of business: | |||||||||||||||
Life Operations | 2,505 | 2,824 | 5,612 | 6,134 | |||||||||||
Operating segments | Total P&C | |||||||||||||||
Net premiums earned by line of business: | |||||||||||||||
Total | 2,692,664 | 2,514,093 | 5,289,845 | 5,033,574 | |||||||||||
Operating segments | Insurance Segment | |||||||||||||||
Net premiums earned by line of business: | |||||||||||||||
P&C Operations | 1,748,355 | 1,652,304 | 3,414,144 | 3,287,619 | [3] | ||||||||||
Total | 1,748,355 | 1,652,304 | 3,414,144 | 3,287,619 | |||||||||||
Operating segments | Insurance Segment | Professional | |||||||||||||||
Net premiums earned by line of business: | |||||||||||||||
P&C Operations | 335,442 | 306,070 | [3] | 656,159 | 611,552 | [3] | |||||||||
Operating segments | Insurance Segment | Casualty | |||||||||||||||
Net premiums earned by line of business: | |||||||||||||||
P&C Operations | 512,307 | 537,655 | [3] | 993,317 | 1,011,850 | [3] | |||||||||
Operating segments | Insurance Segment | Property catastrophe | |||||||||||||||
Net premiums earned by line of business: | |||||||||||||||
P&C Operations | 0 | 0 | [3] | 0 | 0 | [3] | |||||||||
Operating segments | Insurance Segment | Property | |||||||||||||||
Net premiums earned by line of business: | |||||||||||||||
P&C Operations | 429,472 | 406,230 | [3] | 836,250 | 856,733 | [3] | |||||||||
Operating segments | Insurance Segment | Specialty | |||||||||||||||
Net premiums earned by line of business: | |||||||||||||||
P&C Operations | 470,765 | 403,103 | [3] | 928,415 | 805,790 | [3] | |||||||||
Operating segments | Insurance Segment | Other | |||||||||||||||
Net premiums earned by line of business: | |||||||||||||||
P&C Operations | 369 | [1] | (754) | [3] | 3 | [1] | 1,694 | [1],[3] | |||||||
Operating segments | Reinsurance Segment | |||||||||||||||
Net premiums earned by line of business: | |||||||||||||||
P&C Operations | 944,309 | 861,789 | 1,875,701 | 1,745,955 | |||||||||||
Total | 944,309 | 861,789 | 1,875,701 | 1,745,955 | |||||||||||
Operating segments | Reinsurance Segment | Professional | |||||||||||||||
Net premiums earned by line of business: | |||||||||||||||
P&C Operations | 63,781 | 54,304 | 128,389 | 107,230 | |||||||||||
Operating segments | Reinsurance Segment | Casualty | |||||||||||||||
Net premiums earned by line of business: | |||||||||||||||
P&C Operations | 155,069 | 149,627 | 305,032 | 306,261 | |||||||||||
Operating segments | Reinsurance Segment | Property catastrophe | |||||||||||||||
Net premiums earned by line of business: | |||||||||||||||
P&C Operations | 129,727 | 164,057 | 266,230 | 312,463 | |||||||||||
Operating segments | Reinsurance Segment | Property | |||||||||||||||
Net premiums earned by line of business: | |||||||||||||||
P&C Operations | 253,796 | 286,493 | 511,885 | 558,839 | |||||||||||
Operating segments | Reinsurance Segment | Specialty | |||||||||||||||
Net premiums earned by line of business: | |||||||||||||||
P&C Operations | 47,293 | 47,676 | 91,554 | 84,302 | |||||||||||
Operating segments | Reinsurance Segment | Other | |||||||||||||||
Net premiums earned by line of business: | |||||||||||||||
P&C Operations | [1] | $ 294,643 | $ 159,632 | $ 572,611 | $ 376,860 | ||||||||||
|
Segment Information - Narrative (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018
USD ($)
|
Jun. 30, 2017
USD ($)
|
Jun. 30, 2018
USD ($)
segments
|
Jun. 30, 2017
USD ($)
|
|||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||
Number of segments | segments | 2 | |||||||||||||||||||||||
Net results from structured products | $ 8,382 | [1] | $ 2,923 | [2] | $ 11,793 | [3] | $ 5,837 | [4] | ||||||||||||||||
Net fee income and other | (3,806) | [5] | (1,997) | [6] | (9,548) | [7] | 218 | [8] | ||||||||||||||||
Other operating expense | ||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||
Net fee income and other | (12,100) | (12,200) | (24,600) | (23,700) | ||||||||||||||||||||
Total P&C | Net investment income | ||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||
Net results from structured products | 12,300 | 13,500 | 24,600 | 26,900 | ||||||||||||||||||||
Total P&C | Interest expense | ||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||
Net results from structured products | $ (3,900) | $ (10,600) | $ (12,800) | $ (21,100) | ||||||||||||||||||||
|
Investments - Cost (amortized cost for fixed maturities and short-term investments), fair value, gross unrealized gains, gross unrealized (losses), and OTTI recorded in AOCI (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
|||
---|---|---|---|---|---|
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized cost of fixed maturities | $ 29,689,322 | $ 30,157,581 | |||
Fixed maturities AFS | 29,793,151 | 30,928,988 | |||
Non-credit Related OTTI | [1] | (37,936) | (43,646) | ||
Amortized cost of short-term investments, available for sale | 623,158 | 816,638 | |||
Short-term investments, at fair value | 623,113 | 815,481 | |||
Available-for-sale Securities, Amortized Cost Basis | 30,312,480 | 31,612,674 | |||
Available for sale securities, Gross unrealized gains | 610,486 | 1,045,012 | |||
Available for sale securities, Gross unrealized losses | (506,702) | (199,250) | |||
Total investments available for sale | 30,416,264 | 32,458,436 | |||
Excluding Life Funds Withheld Assets | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized cost of fixed maturities | 28,413,341 | 28,569,530 | |||
Gross unrealized gains on Fixed maturities | 294,081 | 524,528 | |||
Gross unrealized losses on Fixed maturities | (506,005) | (192,182) | |||
Fixed maturities AFS | 28,201,417 | 28,901,876 | |||
Non-credit Related OTTI | [1] | (37,936) | (43,646) | ||
Amortized cost of short-term investments, available for sale | 623,158 | 816,638 | |||
Short term investments, gross unrealized gains | 652 | 744 | |||
Short term investments, gross unrealized losses | (697) | (1,901) | |||
Short-term investments, at fair value | 623,113 | 815,481 | |||
Cost of equity securities | 638,455 | ||||
Equity securities, gross unrealized gains | 80,679 | ||||
Equity securities, gross unrealized losses | (5,167) | ||||
Equity securities, at fair value | 713,967 | ||||
Available-for-sale Securities, Amortized Cost Basis | 29,036,499 | 30,024,623 | |||
Available for sale securities, Gross unrealized gains | 294,733 | 605,951 | |||
Available for sale securities, Gross unrealized losses | (506,702) | (199,250) | |||
Total investments available for sale | 28,824,530 | 30,431,324 | |||
Excluding Life Funds Withheld Assets | U.S. Government and Government Agencies | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized cost of fixed maturities | 3,984,381 | 4,358,503 | |||
Gross unrealized gains on Fixed maturities | 23,802 | 37,782 | |||
Gross unrealized losses on Fixed maturities | (47,892) | (33,545) | |||
Fixed maturities AFS | 3,960,291 | 4,362,740 | |||
Non-credit Related OTTI | [1] | 0 | 0 | ||
Excluding Life Funds Withheld Assets | US States, municipalities and political subdivisions of the States | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized cost of fixed maturities | 1,810,556 | 1,977,796 | |||
Gross unrealized gains on Fixed maturities | 51,485 | 87,832 | |||
Gross unrealized losses on Fixed maturities | (3,899) | (988) | |||
Fixed maturities AFS | 1,858,142 | 2,064,640 | |||
Non-credit Related OTTI | [1] | 0 | 0 | ||
Excluding Life Funds Withheld Assets | Non-U.S. Governments | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized cost of fixed maturities | 5,117,027 | 5,135,526 | |||
Gross unrealized gains on Fixed maturities | 74,297 | 114,918 | |||
Gross unrealized losses on Fixed maturities | (75,464) | (48,863) | |||
Fixed maturities AFS | 5,115,860 | 5,201,581 | |||
Non-credit Related OTTI | [1] | 0 | 0 | ||
Excluding Life Funds Withheld Assets | Corporate | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized cost of fixed maturities | 10,059,449 | 9,644,799 | |||
Gross unrealized gains on Fixed maturities | 96,627 | 207,668 | |||
Gross unrealized losses on Fixed maturities | (205,981) | (57,334) | |||
Fixed maturities AFS | 9,950,095 | 9,795,133 | |||
Non-credit Related OTTI | [1] | (5) | (18) | ||
Excluding Life Funds Withheld Assets | Residential mortgage-backed securities | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized cost of fixed maturities | 4,348,536 | 4,717,542 | |||
Gross unrealized gains on Fixed maturities | 22,531 | 41,983 | |||
Gross unrealized losses on Fixed maturities | (117,031) | (35,123) | |||
Fixed maturities AFS | 4,254,036 | 4,724,402 | |||
Non-credit Related OTTI | [1] | (8,158) | (8,795) | ||
Excluding Life Funds Withheld Assets | Commercial mortgage-backed securities | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized cost of fixed maturities | 1,410,363 | 1,246,406 | |||
Gross unrealized gains on Fixed maturities | 1,901 | 7,468 | |||
Gross unrealized losses on Fixed maturities | (48,414) | (9,857) | |||
Fixed maturities AFS | 1,363,850 | 1,244,017 | |||
Non-credit Related OTTI | [1] | (406) | (817) | ||
Excluding Life Funds Withheld Assets | Other asset-backed securities | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized cost of fixed maturities | 1,683,029 | 1,488,958 | |||
Gross unrealized gains on Fixed maturities | 23,438 | 26,877 | |||
Gross unrealized losses on Fixed maturities | (7,324) | (6,472) | |||
Fixed maturities AFS | 1,699,143 | 1,509,363 | |||
Non-credit Related OTTI | [1] | (29,367) | (34,016) | ||
Life Funds Withheld Assets | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized cost of fixed maturities | 1,275,981 | 1,588,051 | |||
Gross unrealized gains on Fixed maturities | 315,753 | 439,061 | |||
Gross unrealized losses on Fixed maturities | 0 | 0 | |||
Fixed maturities AFS | 1,591,734 | 2,027,112 | |||
Non-credit Related OTTI | [1] | 0 | 0 | ||
Life Funds Withheld Assets | U.S. Government and Government Agencies | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized cost of fixed maturities | 8,801 | 9,050 | |||
Gross unrealized gains on Fixed maturities | 2,133 | 2,266 | |||
Gross unrealized losses on Fixed maturities | 0 | 0 | |||
Fixed maturities AFS | 10,934 | 11,316 | |||
Non-credit Related OTTI | [1] | 0 | 0 | ||
Life Funds Withheld Assets | Non-U.S. Governments | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized cost of fixed maturities | 347,074 | 433,664 | |||
Gross unrealized gains on Fixed maturities | 120,846 | 150,870 | |||
Gross unrealized losses on Fixed maturities | 0 | 0 | |||
Fixed maturities AFS | 467,920 | 584,534 | |||
Non-credit Related OTTI | [1] | 0 | 0 | ||
Life Funds Withheld Assets | Corporate | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized cost of fixed maturities | 719,866 | 909,589 | |||
Gross unrealized gains on Fixed maturities | 149,728 | 227,624 | |||
Gross unrealized losses on Fixed maturities | 0 | 0 | |||
Fixed maturities AFS | 869,594 | 1,137,213 | |||
Non-credit Related OTTI | [1] | 0 | 0 | ||
Life Funds Withheld Assets | Residential mortgage-backed securities | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized cost of fixed maturities | 412 | 448 | |||
Gross unrealized gains on Fixed maturities | 71 | 67 | |||
Gross unrealized losses on Fixed maturities | 0 | 0 | |||
Fixed maturities AFS | 483 | 515 | |||
Non-credit Related OTTI | [1] | 0 | 0 | ||
Life Funds Withheld Assets | Commercial mortgage-backed securities | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized cost of fixed maturities | 97,003 | 97,356 | |||
Gross unrealized gains on Fixed maturities | 22,608 | 24,916 | |||
Gross unrealized losses on Fixed maturities | 0 | 0 | |||
Fixed maturities AFS | 119,611 | 122,272 | |||
Non-credit Related OTTI | [1] | 0 | 0 | ||
Life Funds Withheld Assets | Other asset-backed securities | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized cost of fixed maturities | 102,825 | 137,944 | |||
Gross unrealized gains on Fixed maturities | 20,367 | 33,318 | |||
Gross unrealized losses on Fixed maturities | 0 | 0 | |||
Fixed maturities AFS | 123,192 | 171,262 | |||
Non-credit Related OTTI | [1] | $ 0 | $ 0 | ||
|
Investments - Amortized cost and fair value of trading securities (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost of fixed maturities, trading | $ 1,965,372 | $ 1,946,501 |
Fixed maturities, trading at fair value | 1,990,344 | 2,006,385 |
Amortized cost of short-term investments, trading | 5,777 | 14,969 |
Short-term investments, trading at fair value | 5,788 | 14,965 |
Life Funds Withheld Assets | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost of fixed maturities, trading | 1,965,372 | 1,946,501 |
Fixed maturities, trading at fair value | 1,990,344 | 2,006,385 |
Amortized cost of short-term investments, trading | 5,777 | 14,969 |
Short-term investments, trading at fair value | 5,788 | 14,965 |
Trading securities, cost | 1,971,149 | 1,961,470 |
Total investments trading | 1,996,132 | 2,021,350 |
Life Funds Withheld Assets | U.S. Government and Government Agencies | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost of fixed maturities, trading | 9,524 | 11,640 |
Fixed maturities, trading at fair value | 9,633 | 11,042 |
Life Funds Withheld Assets | US States, municipalities and political subdivisions of the States | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost of fixed maturities, trading | 30 | |
Fixed maturities, trading at fair value | 31 | |
Life Funds Withheld Assets | Non-U.S. Governments | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost of fixed maturities, trading | 476,698 | 473,849 |
Fixed maturities, trading at fair value | 489,276 | 485,171 |
Life Funds Withheld Assets | Corporate | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost of fixed maturities, trading | 1,428,176 | 1,412,846 |
Fixed maturities, trading at fair value | 1,440,572 | 1,460,292 |
Life Funds Withheld Assets | Residential mortgage-backed securities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost of fixed maturities, trading | 985 | 1,020 |
Fixed maturities, trading at fair value | 919 | 932 |
Life Funds Withheld Assets | Commercial mortgage-backed securities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost of fixed maturities, trading | 7,227 | 7,345 |
Fixed maturities, trading at fair value | 7,411 | 7,580 |
Life Funds Withheld Assets | Other asset-backed securities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost of fixed maturities, trading | 42,762 | 39,771 |
Fixed maturities, trading at fair value | $ 42,533 | $ 41,337 |
Investments - Contractual maturities of available for sale securities (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Fixed Maturities - AFS | ||
Amortized cost of fixed maturities | $ 29,689,322 | $ 30,157,581 |
Fixed maturities, at fair value | 29,793,151 | 30,928,988 |
Trading Securities [Abstract] | ||
Amortized cost of fixed maturities, trading | 1,965,372 | 1,946,501 |
Fixed maturities, trading at fair value | 1,990,344 | 2,006,385 |
Excluding Life Funds Withheld Assets | ||
Fixed Maturities - AFS | ||
Due less than one year, amortized cost | 1,763,966 | 1,556,688 |
Due less than one year, fair value | 1,764,182 | 1,564,360 |
Due after 1 through 5 years, amortized cost | 12,570,233 | 12,243,590 |
Due after 1 through 5 years, fair value | 12,501,952 | 12,309,732 |
Due after 5 through 10 years, amortized cost | 5,728,279 | 6,268,217 |
Due after 5 through 10 years, fair value | 5,658,654 | 6,362,314 |
Due after 10 years, amortized cost | 908,935 | 1,048,129 |
Due after 10 years, fair value | 959,600 | 1,187,688 |
Subtotal - amortized cost | 20,971,413 | 21,116,624 |
Subtotal - fair value | 20,884,388 | 21,424,094 |
Mortgage and asset backed securities - amortized cost | 7,441,928 | 7,452,906 |
Mortgage and asset backed securities - fair value | 7,317,029 | 7,477,782 |
Amortized cost of fixed maturities | 28,413,341 | 28,569,530 |
Fixed maturities, at fair value | 28,201,417 | 28,901,876 |
Excluding Life Funds Withheld Assets | Residential mortgage-backed securities | ||
Fixed Maturities - AFS | ||
Mortgage and asset backed securities - amortized cost | 4,348,536 | 4,717,542 |
Mortgage and asset backed securities - fair value | 4,254,036 | 4,724,402 |
Amortized cost of fixed maturities | 4,348,536 | 4,717,542 |
Fixed maturities, at fair value | 4,254,036 | 4,724,402 |
Excluding Life Funds Withheld Assets | Commercial mortgage-backed securities | ||
Fixed Maturities - AFS | ||
Mortgage and asset backed securities - amortized cost | 1,410,363 | 1,246,406 |
Mortgage and asset backed securities - fair value | 1,363,850 | 1,244,017 |
Amortized cost of fixed maturities | 1,410,363 | 1,246,406 |
Fixed maturities, at fair value | 1,363,850 | 1,244,017 |
Excluding Life Funds Withheld Assets | Other asset-backed securities | ||
Fixed Maturities - AFS | ||
Mortgage and asset backed securities - amortized cost | 1,683,029 | 1,488,958 |
Mortgage and asset backed securities - fair value | 1,699,143 | 1,509,363 |
Amortized cost of fixed maturities | 1,683,029 | 1,488,958 |
Fixed maturities, at fair value | 1,699,143 | 1,509,363 |
Life Funds Withheld Assets | ||
Fixed Maturities - AFS | ||
Due less than one year, amortized cost | 47,308 | 47,143 |
Due less than one year, fair value | 48,710 | 49,233 |
Due after 1 through 5 years, amortized cost | 218,872 | 286,524 |
Due after 1 through 5 years, fair value | 235,681 | 313,227 |
Due after 5 through 10 years, amortized cost | 146,695 | 168,897 |
Due after 5 through 10 years, fair value | 174,746 | 205,536 |
Due after 10 years, amortized cost | 662,866 | 849,739 |
Due after 10 years, fair value | 889,311 | 1,165,067 |
Subtotal - amortized cost | 1,075,741 | 1,352,303 |
Subtotal - fair value | 1,348,448 | 1,733,063 |
Mortgage and asset backed securities - amortized cost | 200,240 | 235,748 |
Mortgage and asset backed securities - fair value | 243,286 | 294,049 |
Amortized cost of fixed maturities | 1,275,981 | 1,588,051 |
Fixed maturities, at fair value | 1,591,734 | 2,027,112 |
Trading Securities [Abstract] | ||
Amortized cost of fixed maturities, trading | 1,965,372 | 1,946,501 |
Fixed maturities, trading at fair value | 1,990,344 | 2,006,385 |
Life Funds Withheld Assets | Residential mortgage-backed securities | ||
Fixed Maturities - AFS | ||
Mortgage and asset backed securities - amortized cost | 412 | 448 |
Mortgage and asset backed securities - fair value | 483 | 515 |
Amortized cost of fixed maturities | 412 | 448 |
Fixed maturities, at fair value | 483 | 515 |
Trading Securities [Abstract] | ||
Amortized cost of fixed maturities, trading | 985 | 1,020 |
Fixed maturities, trading at fair value | 919 | 932 |
Life Funds Withheld Assets | Commercial mortgage-backed securities | ||
Fixed Maturities - AFS | ||
Mortgage and asset backed securities - amortized cost | 97,003 | 97,356 |
Mortgage and asset backed securities - fair value | 119,611 | 122,272 |
Amortized cost of fixed maturities | 97,003 | 97,356 |
Fixed maturities, at fair value | 119,611 | 122,272 |
Trading Securities [Abstract] | ||
Amortized cost of fixed maturities, trading | 7,227 | 7,345 |
Fixed maturities, trading at fair value | 7,411 | 7,580 |
Life Funds Withheld Assets | Other asset-backed securities | ||
Fixed Maturities - AFS | ||
Mortgage and asset backed securities - amortized cost | 102,825 | 137,944 |
Mortgage and asset backed securities - fair value | 123,192 | 171,262 |
Amortized cost of fixed maturities | 102,825 | 137,944 |
Fixed maturities, at fair value | 123,192 | 171,262 |
Trading Securities [Abstract] | ||
Amortized cost of fixed maturities, trading | 42,762 | 39,771 |
Fixed maturities, trading at fair value | 42,533 | 41,337 |
Life Funds Withheld Assets | Cost | ||
Trading Securities [Abstract] | ||
Due less than one year | 48,626 | 59,962 |
Due after 1 through 5 years | 519,812 | 486,847 |
Due after 5 through 10 years | 664,273 | 645,573 |
Due after 10 years | 681,687 | 705,983 |
Subtotal | 1,914,398 | 1,898,365 |
Mortgage and asset-backed securities | 50,974 | 48,136 |
Amortized cost of fixed maturities, trading | 1,965,372 | 1,946,501 |
Life Funds Withheld Assets | Cost | Residential mortgage-backed securities | ||
Trading Securities [Abstract] | ||
Mortgage and asset-backed securities | 985 | 1,020 |
Life Funds Withheld Assets | Cost | Commercial mortgage-backed securities | ||
Trading Securities [Abstract] | ||
Mortgage and asset-backed securities | 7,227 | 7,345 |
Life Funds Withheld Assets | Cost | Other asset-backed securities | ||
Trading Securities [Abstract] | ||
Mortgage and asset-backed securities | 42,762 | 39,771 |
Life Funds Withheld Assets | Fair value | ||
Trading Securities [Abstract] | ||
Due less than one year | 47,686 | 59,605 |
Due after 1 through 5 years | 522,579 | 492,998 |
Due after 5 through 10 years | 665,029 | 657,093 |
Due after 10 years | 704,187 | 746,840 |
Subtotal | 1,939,481 | 1,956,536 |
Mortgage and asset-backed securities | 50,863 | 49,849 |
Fixed maturities, trading at fair value | 1,990,344 | 2,006,385 |
Life Funds Withheld Assets | Fair value | Residential mortgage-backed securities | ||
Trading Securities [Abstract] | ||
Mortgage and asset-backed securities | 919 | 932 |
Life Funds Withheld Assets | Fair value | Commercial mortgage-backed securities | ||
Trading Securities [Abstract] | ||
Mortgage and asset-backed securities | 7,411 | 7,580 |
Life Funds Withheld Assets | Fair value | Other asset-backed securities | ||
Trading Securities [Abstract] | ||
Mortgage and asset-backed securities | $ 42,533 | $ 41,337 |
Investments - Analysis of continual unrealized loss position (Details) - Excluding Life Funds Withheld Assets - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Total fixed maturities and short-term investments AFS | ||
Fixed maturities and short-term investments - AFS: | ||
Less than 12 months Fair Value | $ 16,563,178 | $ 10,300,927 |
Less than 12 months Gross Unrealized Losses | (345,725) | (82,110) |
Equal to or greater than 12 months Fair Value | 3,094,173 | 3,089,852 |
Equal to greater than 12 months Gross Unrealized Losses | (160,977) | (111,973) |
U.S. Government and Government Agencies | ||
Fixed maturities and short-term investments - AFS: | ||
Less than 12 months Fair Value | 3,206,426 | 2,687,083 |
Less than 12 months Gross Unrealized Losses | (35,641) | (21,514) |
Equal to or greater than 12 months Fair Value | 597,622 | 727,246 |
Equal to greater than 12 months Gross Unrealized Losses | (12,672) | (13,902) |
US States, municipalities and political subdivisions of the States | ||
Fixed maturities and short-term investments - AFS: | ||
Less than 12 months Fair Value | 302,220 | 88,235 |
Less than 12 months Gross Unrealized Losses | (3,496) | (622) |
Equal to or greater than 12 months Fair Value | 15,479 | 19,583 |
Equal to greater than 12 months Gross Unrealized Losses | (403) | (366) |
Non-U.S. Governments | ||
Fixed maturities and short-term investments - AFS: | ||
Less than 12 months Fair Value | 2,050,935 | 1,527,323 |
Less than 12 months Gross Unrealized Losses | (30,310) | (14,959) |
Equal to or greater than 12 months Fair Value | 693,514 | 560,648 |
Equal to greater than 12 months Gross Unrealized Losses | (45,414) | (33,931) |
Corporate | ||
Fixed maturities and short-term investments - AFS: | ||
Less than 12 months Fair Value | 6,489,744 | 2,959,416 |
Less than 12 months Gross Unrealized Losses | (154,483) | (25,757) |
Equal to or greater than 12 months Fair Value | 730,166 | 543,973 |
Equal to greater than 12 months Gross Unrealized Losses | (51,514) | (31,577) |
Residential mortgage-backed securities | ||
Fixed maturities and short-term investments - AFS: | ||
Less than 12 months Fair Value | 2,921,798 | 2,198,391 |
Less than 12 months Gross Unrealized Losses | (79,813) | (14,030) |
Equal to or greater than 12 months Fair Value | 799,053 | 925,191 |
Equal to greater than 12 months Gross Unrealized Losses | (37,218) | (21,093) |
Commercial mortgage-backed securities | ||
Fixed maturities and short-term investments - AFS: | ||
Less than 12 months Fair Value | 1,081,418 | 583,656 |
Less than 12 months Gross Unrealized Losses | (38,410) | (4,117) |
Equal to or greater than 12 months Fair Value | 128,671 | 138,065 |
Equal to greater than 12 months Gross Unrealized Losses | (10,004) | (5,740) |
Other asset-backed securities | ||
Fixed maturities and short-term investments - AFS: | ||
Less than 12 months Fair Value | 510,637 | 256,823 |
Less than 12 months Gross Unrealized Losses | (3,572) | (1,111) |
Equal to or greater than 12 months Fair Value | 129,668 | 175,146 |
Equal to greater than 12 months Gross Unrealized Losses | $ (3,752) | $ (5,364) |
Investments - Analysis of net realized gains (losses) and the change in unrealized (losses) gains on investments (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||||
---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
||||
Realized investment gains (losses): | |||||||
OTTI on investments, net of amounts transferred to other comprehensive income | $ (3,000) | $ (1,210) | $ (4,806) | $ (8,084) | |||
Total realized investment gains (losses) | 90,805 | 56,628 | 7,450 | 93,914 | |||
Excluding Life Funds Withheld Assets | |||||||
Realized investment gains (losses): | |||||||
Gross realized gains | 25,288 | 91,771 | 44,618 | 131,168 | [1] | ||
Gross realized losses | (39,388) | (41,392) | (90,390) | (69,697) | [1] | ||
OTTI on investments, net of amounts transferred to other comprehensive income | (3,000) | (1,210) | (4,806) | (8,084) | [1] | ||
Total realized investment gains (losses) | (17,100) | 49,169 | (50,578) | 53,387 | [1] | ||
Equity Securities, FV-NI, Realized Gain | 4,556 | 0 | 14,249 | 0 | |||
Equity Securities, FV-NI, Realized Loss | (97) | 0 | (223) | 0 | |||
Equity Securities, FV-NI, Unrealized Gain (Loss) | 30,735 | 0 | (14,846) | 0 | |||
Net realized and change in net unrealized gains (losses) on equity securities | 35,194 | 0 | (820) | 0 | |||
Other Investments, FV-NI, Realized Gain | 17,208 | 0 | 20,212 | 0 | |||
Other Investments, FV-NI, Realized Loss | (1,261) | 0 | (2,424) | 0 | |||
Other Investments, FV-NI, Unrealized Gain (Loss) | (6,645) | 0 | 163 | 0 | |||
Net realized and change in net unrealized gains (losses) on other investments | 9,302 | 0 | 17,951 | 0 | |||
Life Funds Withheld Assets | |||||||
Realized investment gains (losses): | |||||||
Gross realized gains | 67,749 | 30,100 | 80,658 | 65,251 | |||
Gross realized losses | (2,444) | (322) | (4,995) | (999) | |||
OTTI on investments, net of amounts transferred to other comprehensive income | 0 | 0 | (1,203) | 0 | |||
Change in net unrealized gains (losses) on trading securities | (1,896) | (22,319) | (33,563) | (23,725) | |||
Total realized investment gains (losses) | $ 63,409 | $ 7,459 | $ 40,897 | $ 40,527 | |||
|
Investments - Schedule of other than temporary impairments (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||||
---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
||||
Schedule of Available-for-sale Securities [Line Items] | |||||||
OTTI on investments, net of amounts transferred to other comprehensive income | $ 3,000 | $ 1,210 | $ 4,806 | $ 8,084 | |||
Credit loss impairments | Fixed maturities | |||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||
OTTI on investments, net of amounts transferred to other comprehensive income | 748 | 162 | 1,513 | 388 | |||
Impaired more than 11 months or more than 50% | Equities and other investments | |||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||
OTTI on investments, net of amounts transferred to other comprehensive income | 0 | 0 | 0 | 4,975 | |||
Excluding Life Funds Withheld Assets | |||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||
OTTI on investments, net of amounts transferred to other comprehensive income | 3,000 | 1,210 | 4,806 | 8,084 | [1] | ||
Excluding Life Funds Withheld Assets | Currency losses | |||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||
OTTI on investments, net of amounts transferred to other comprehensive income | $ 2,252 | $ 1,048 | $ 3,293 | $ 2,721 | |||
|
Investments - Credit loss impairments on fixed income securities (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Investments, Debt and Equity Securities [Abstract] | ||||
Balance, beginning of period | $ 41,466 | $ 58,628 | $ 43,332 | $ 61,595 |
Credit loss impairment recognized in the current period on securities not previously impaired | 0 | 0 | 590 | 124 |
Credit loss impairments previously recognized on securities which matured, paid down, prepaid or were sold during the period | (436) | (3,071) | (1,592) | (3,907) |
Additional credit loss impairments recognized in the current period on securities previously impaired | 748 | 162 | 923 | 264 |
Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected | (1,042) | (1,282) | (2,517) | (3,639) |
Balance, end of period | $ 40,736 | $ 54,437 | $ 40,736 | $ 54,437 |
Investments - Narrative (Details) $ in Thousands |
Jun. 30, 2018
USD ($)
positions
|
Dec. 31, 2017
USD ($)
|
---|---|---|
Schedule of Available-for-sale Securities [Line Items] | ||
Percentage of Fixed Income Investment portfolio invested in below investment grade or not rated | 3.50% | 3.30% |
Percentage of Gross Unrealized losses in Fixed income securities portfolio related to securities below investment grade or not rated | 3.90% | 4.20% |
Pledged Assets Separately Reported, Other Debt Securities Available-for-sale or Held-for-investment | $ 17,000,000 | $ 18,800,000 |
Available for sale securities, Gross unrealized losses | 506,702 | 199,250 |
Excluding Life Funds Withheld Assets | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Gross unrealized losses | $ 506,702 | $ 199,250 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | positions | 4,673 | |
Available-for-sale Securities, Qualitative Disclosure, Number of Positions | positions | 7,847 |
Derivative Instruments - Gross amounts of derivative fair values contained in the consolidated balance sheet (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
|||||
---|---|---|---|---|---|---|---|
Derivatives, Fair Value [Line Items] | |||||||
Gross amounts recognized in balance sheet | $ 82,544 | $ 32,794 | |||||
Gross amounts recognized in balance sheet | 47,651 | 62,896 | |||||
Counterparty netting, assets | (7,627) | (3,579) | |||||
Counterparty netting, liabilities | (7,627) | (3,579) | |||||
Asset derivative fair value | 74,917 | 29,215 | |||||
Liability derivative fair value | 40,024 | 59,317 | |||||
Gross amounts not offset in the balance sheet - cash collateral | [1] | (43,420) | (3,920) | ||||
Derivative, Collateral, Right to Reclaim Cash | [1] | (3,089) | (1,312) | ||||
Derivative Asset | 31,497 | 25,295 | |||||
Derivative Liability | 36,935 | 58,005 | |||||
Derivatives designated as hedging instruments | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Asset derivative notional amount | 953,438 | 580,194 | |||||
Gross amounts recognized in balance sheet | 60,325 | 5,655 | |||||
Liability derivative notional amount | 166,497 | 339,221 | |||||
Gross amounts recognized in balance sheet | 4,277 | 3,968 | |||||
Derivatives designated as hedging instruments | Foreign currency exposure | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Asset derivative notional amount | 953,438 | 580,194 | |||||
Gross amounts recognized in balance sheet | 60,325 | 5,655 | |||||
Liability derivative notional amount | 166,497 | 339,221 | |||||
Gross amounts recognized in balance sheet | 4,277 | 3,968 | |||||
Derivatives not designated as hedging instruments | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Asset derivative notional amount | 268,123 | 584,522 | |||||
Gross amounts recognized in balance sheet | 22,219 | 27,139 | |||||
Liability derivative notional amount | 5,012,595 | 5,269,279 | |||||
Gross amounts recognized in balance sheet | 43,374 | 58,928 | |||||
Derivatives not designated as hedging instruments | Investment related derivatives | Interest rate exposure | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Asset derivative notional amount | 0 | 181,975 | |||||
Gross amounts recognized in balance sheet | 0 | 423 | |||||
Liability derivative notional amount | 239,109 | 0 | |||||
Gross amounts recognized in balance sheet | 387 | 0 | |||||
Derivatives not designated as hedging instruments | Investment related derivatives | Foreign currency exposure | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Asset derivative notional amount | 126,239 | 263,722 | |||||
Gross amounts recognized in balance sheet | 1,958 | 6,931 | |||||
Liability derivative notional amount | 211,809 | 141,300 | |||||
Gross amounts recognized in balance sheet | 6,360 | 2,256 | |||||
Derivatives not designated as hedging instruments | Investment related derivatives | Credit exposure | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Asset derivative notional amount | 5,000 | 5,000 | |||||
Gross amounts recognized in balance sheet | 65 | 187 | |||||
Liability derivative notional amount | 45,000 | 45,000 | |||||
Gross amounts recognized in balance sheet | 5,730 | 6,784 | |||||
Derivatives not designated as hedging instruments | Investment related derivatives | Financial market exposure | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Asset derivative notional amount | 34,580 | 30,001 | |||||
Gross amounts recognized in balance sheet | 2,317 | 1,271 | |||||
Liability derivative notional amount | 0 | 6,998 | |||||
Gross amounts recognized in balance sheet | 0 | 42 | |||||
Derivatives not designated as hedging instruments | Other non-investment derivatives | Foreign currency exposure | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Asset derivative notional amount | 0 | 0 | |||||
Gross amounts recognized in balance sheet | 0 | 0 | |||||
Liability derivative notional amount | 24,534 | 0 | |||||
Gross amounts recognized in balance sheet | 468 | 0 | |||||
Derivatives not designated as hedging instruments | Other non-investment derivatives | Credit exposure | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Asset derivative notional amount | 19,553 | 0 | |||||
Gross amounts recognized in balance sheet | 57 | 0 | |||||
Liability derivative notional amount | 0 | 25,526 | |||||
Gross amounts recognized in balance sheet | 0 | 169 | |||||
Derivatives not designated as hedging instruments | Other non-investment derivatives | Guaranteed minimum income benefit contract | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Asset derivative notional amount | 35,400 | 36,171 | |||||
Gross amounts recognized in balance sheet | 17,822 | 18,136 | |||||
Liability derivative notional amount | 35,400 | 36,171 | |||||
Gross amounts recognized in balance sheet | 17,822 | 18,136 | |||||
Derivatives not designated as hedging instruments | Other non-investment derivatives | Modified coinsurance and funds withheld contracts | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Asset derivative notional amount | [2] | 47,351 | 51,653 | ||||
Gross amounts recognized in balance sheet | [2] | 0 | 0 | ||||
Liability derivative notional amount | [2] | 4,456,743 | 5,014,284 | ||||
Gross amounts recognized in balance sheet | [2] | 12,607 | 31,541 | ||||
Derivatives not designated as hedging instruments | Other non-investment derivatives | Other | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Asset derivative notional amount | 0 | 16,000 | |||||
Gross amounts recognized in balance sheet | 0 | 191 | |||||
Liability derivative notional amount | 0 | 0 | |||||
Gross amounts recognized in balance sheet | $ 0 | $ 0 | |||||
|
Derivative Instruments - Derivative instruments designated as hedges of the net investment in a foreign operation - Summary (Details) - Derivatives designated as hedging instruments - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|||
Derivative [Line Items] | ||||||
Weighted average of U.S. dollar equivalent of foreign denominated net assets | $ 1,119,999 | $ 1,659,312 | $ 1,107,105 | $ 1,668,229 | ||
Derivative gains (losses) | [1] | $ 48,099 | $ (49,370) | $ 45,776 | $ (78,767) | |
|
Derivative Instruments - Net Realized and unrealized gains (losses) on derivative instruments (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Derivative [Line Items] | ||||
Net realized and unrealized gains (losses) on derivative instruments | $ 16,126 | $ (906) | $ 20,347 | $ (7,975) |
Derivatives not designated as hedging instruments | Investment related derivatives | ||||
Derivative [Line Items] | ||||
Interest rate exposure | (1,317) | 372 | (320) | 158 |
Foreign currency exposure | 3,378 | (988) | 60 | (1,733) |
Credit exposure | (38) | (525) | (79) | (1,379) |
Financial market exposure | 7,492 | 0 | 6,144 | 185 |
Derivatives not designated as hedging instruments | Other non-investment derivatives | ||||
Derivative [Line Items] | ||||
Foreign currency exposure | 0 | 34 | 0 | (1,176) |
Credit exposure | 0 | 138 | 615 | 770 |
Modified coinsurance and funds withheld contracts, including life retrocession embedded derivative | 6,611 | 238 | 9,103 | (3,687) |
Other | 0 | (175) | 4,824 | (1,113) |
Life Funds Withheld Assets | ||||
Derivative [Line Items] | ||||
Net realized and unrealized gains (losses) on derivative instruments | $ (36,120) | $ (34,596) | $ (13,199) | $ (84,697) |
Derivative Instruments - Impact of life retro arrangements (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|||||||||||||
Derivative [Line Items] | ||||||||||||||||
Underwriting profit (loss) | $ 105,163 | $ 188,261 | $ 219,251 | $ 326,717 | ||||||||||||
Net investment income | 231,788 | 208,674 | 450,269 | 409,206 | ||||||||||||
Foreign exchange gains (losses) | 12,140 | 5,643 | 2,299 | 8,979 | ||||||||||||
Other income and expenses | (3,806) | [1] | (1,997) | [2] | (9,548) | [3] | 218 | [4] | ||||||||
Net realized and unrealized gains (losses) on life retrocession embedded derivative | 16,126 | (906) | 20,347 | (7,975) | ||||||||||||
Net income (loss) | 336,800 | 310,043 | 498,033 | 523,892 | ||||||||||||
Change in adjustments related to future policy benefit reserves, net of tax | 42,314 | 3,437 | 46,478 | 8,569 | ||||||||||||
Foreign currency translation adjustments, net of tax | (28,296) | (1,092) | (30,728) | 40,846 | ||||||||||||
Comprehensive income (loss) | (260,991) | 76,191 | (620,214) | 205,619 | ||||||||||||
Life Funds Withheld Assets | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Net investment income | 30,252 | 31,439 | 60,650 | 64,803 | ||||||||||||
Net unrealized gains (losses) on investments, trading | (1,896) | (22,319) | (33,563) | (23,725) | ||||||||||||
Other-than-temporary impairments | 0 | 0 | (1,203) | 0 | ||||||||||||
Net realized and unrealized gains (losses) on life retrocession embedded derivative | (36,120) | (34,596) | (13,199) | (84,697) | ||||||||||||
Change in net unrealized gains (losses) on investments AFS, net of tax | (99,031) | (11,956) | (134,785) | (32,064) | ||||||||||||
Grey Castle Life Reinsurance SAC Ltd | Life Funds Withheld Assets | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Underwriting profit (loss) | 0 | 0 | 0 | 0 | ||||||||||||
Net investment income | 30,252 | 31,439 | 60,650 | 64,803 | ||||||||||||
Net realized gains (losses) on investments AFS | 65,305 | 29,778 | 75,663 | 64,252 | ||||||||||||
Net unrealized gains (losses) on investments, trading | (1,896) | (22,319) | (33,563) | (23,725) | ||||||||||||
Other-than-temporary impairments | 0 | 0 | (1,203) | 0 | ||||||||||||
Foreign exchange gains (losses) | (14,794) | 14,964 | (4,074) | 18,259 | ||||||||||||
Other income and expenses | (80) | (19) | (116) | (90) | ||||||||||||
Net realized and unrealized gains (losses) on life retrocession embedded derivative | (36,120) | (34,596) | (13,199) | (84,697) | ||||||||||||
Net income (loss) | 42,667 | 19,247 | 84,158 | 38,802 | ||||||||||||
Change in net unrealized gains (losses) on investments AFS, net of tax | (99,031) | (11,956) | (134,785) | (32,064) | ||||||||||||
Change in adjustments related to future policy benefit reserves, net of tax | 42,314 | 3,437 | 46,478 | 8,569 | ||||||||||||
Foreign currency translation adjustments, net of tax | 14,050 | (10,728) | 4,149 | (15,307) | ||||||||||||
Total changes to other comprehensive income as a result of GreyCastle Life Retro Arrangements | (42,667) | (19,247) | (84,158) | (38,802) | ||||||||||||
Comprehensive income (loss) | $ 0 | $ 0 | $ 0 | $ 0 | ||||||||||||
|
Derivative Instruments - Schedule of settlement of fair value hedges (Details) - Fair value hedging - Deposit liabilities - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Derivative [Line Items] | ||
Cumulative reduction to interest expense | $ 125,935 | $ 117,818 |
Remaining balance | $ 107,260 | $ 115,377 |
Weighted average years remaining to maturity | 18 years | 19 years 4 months 24 days |
Derivative Instruments - Summary of contingent credit features (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
||
---|---|---|---|---|
Derivative [Line Items] | ||||
Collateral posted to counterparty | [1] | $ 3,089 | $ 1,312 | |
Contracts with downgrade provisions [Member] | ||||
Derivative [Line Items] | ||||
Aggregate fair value of derivative agreements with downgrade provisions in a net liability position | 0 | 7,464 | ||
Collateral posted to counterparty | $ 0 | $ 40 | ||
|
Derivative Instruments - Narrative (Details) $ in Thousands |
Jun. 30, 2018
USD ($)
|
Dec. 31, 2017
USD ($)
|
Sep. 30, 2012
Contracts
|
|||
---|---|---|---|---|---|---|
Derivative [Line Items] | ||||||
Gross amounts not offset in the balance sheet - cash collateral | [1] | $ 43,420 | $ 3,920 | |||
Derivative, Collateral, Right to Reclaim Cash | [1] | 3,089 | $ 1,312 | |||
Number of Derivative Contracts Settled | Contracts | 5 | |||||
Life Funds Withheld Assets | ||||||
Derivative [Line Items] | ||||||
Cumulative net realized and unrealized loss on life retrocession embedded derivative | $ (900,000) | |||||
|
Fair Value Measurements - Schedule of assets and liabilities that were accounted for at fair value (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
|||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Assets | |||||||||||||
Fixed maturities AFS | $ 29,793,151 | $ 30,928,988 | |||||||||||
Short-term investments, at fair value | 623,113 | 815,481 | |||||||||||
Total investments available for sale | 30,416,264 | 32,458,436 | |||||||||||
Fixed maturities, trading at fair value | 1,990,344 | 2,006,385 | |||||||||||
Short-term investments, trading at fair value | 5,788 | 14,965 | |||||||||||
Equity securities, at fair value | 644,711 | 713,967 | |||||||||||
Counterparty netting, assets | (7,627) | (3,579) | |||||||||||
Liabilities | |||||||||||||
Funds withheld on GreyCastle life retrocession arrangements | 736,092 | 999,219 | |||||||||||
Counterparty netting, liabilities | (7,627) | (3,579) | |||||||||||
Excluding Life Funds Withheld Assets | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 28,201,417 | 28,901,876 | |||||||||||
Short-term investments, at fair value | 623,113 | 815,481 | |||||||||||
Equity securities, at fair value | 713,967 | ||||||||||||
Total investments available for sale | 28,824,530 | 30,431,324 | |||||||||||
Excluding Life Funds Withheld Assets | U.S. Government and Government Agencies | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 3,960,291 | 4,362,740 | |||||||||||
Excluding Life Funds Withheld Assets | US States, municipalities and political subdivisions of the States | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 1,858,142 | 2,064,640 | |||||||||||
Excluding Life Funds Withheld Assets | Non-U.S. Governments | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 5,115,860 | 5,201,581 | |||||||||||
Excluding Life Funds Withheld Assets | Corporate | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 9,950,095 | 9,795,133 | |||||||||||
Excluding Life Funds Withheld Assets | Residential mortgage-backed securities | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 4,254,036 | 4,724,402 | |||||||||||
Excluding Life Funds Withheld Assets | Commercial mortgage-backed securities | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 1,363,850 | 1,244,017 | |||||||||||
Excluding Life Funds Withheld Assets | Other asset-backed securities | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 1,699,143 | 1,509,363 | |||||||||||
Life Funds Withheld Assets | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 1,591,734 | 2,027,112 | |||||||||||
Fixed maturities, trading at fair value | 1,990,344 | 2,006,385 | |||||||||||
Short-term investments, trading at fair value | 5,788 | 14,965 | |||||||||||
Total investments trading | 1,996,132 | 2,021,350 | |||||||||||
Life Funds Withheld Assets | U.S. Government and Government Agencies | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 10,934 | 11,316 | |||||||||||
Fixed maturities, trading at fair value | 9,633 | 11,042 | |||||||||||
Life Funds Withheld Assets | US States, municipalities and political subdivisions of the States | |||||||||||||
Assets | |||||||||||||
Fixed maturities, trading at fair value | 31 | ||||||||||||
Life Funds Withheld Assets | Non-U.S. Governments | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 467,920 | 584,534 | |||||||||||
Fixed maturities, trading at fair value | 489,276 | 485,171 | |||||||||||
Life Funds Withheld Assets | Corporate | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 869,594 | 1,137,213 | |||||||||||
Fixed maturities, trading at fair value | 1,440,572 | 1,460,292 | |||||||||||
Life Funds Withheld Assets | Residential mortgage-backed securities | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 483 | 515 | |||||||||||
Fixed maturities, trading at fair value | 919 | 932 | |||||||||||
Life Funds Withheld Assets | Commercial mortgage-backed securities | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 119,611 | 122,272 | |||||||||||
Fixed maturities, trading at fair value | 7,411 | 7,580 | |||||||||||
Life Funds Withheld Assets | Other asset-backed securities | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 123,192 | 171,262 | |||||||||||
Fixed maturities, trading at fair value | 42,533 | 41,337 | |||||||||||
Recurring | |||||||||||||
Assets | |||||||||||||
Total investments available for sale | 30,416,264 | 32,458,436 | |||||||||||
Cash equivalents | [1] | 1,460,940 | 1,550,707 | ||||||||||
Other investments | [2] | 751,312 | 792,639 | ||||||||||
Other assets | [3] | 74,917 | 29,215 | ||||||||||
Total assets accounted for at fair value | 35,409,161 | 36,920,329 | |||||||||||
Counterparty netting, assets | [3] | (7,627) | (3,579) | ||||||||||
Liabilities | |||||||||||||
Funds withheld on GreyCastle life retrocession arrangements | [4] | 889,813 | 1,112,969 | ||||||||||
Other liabilities | [3] | 40,024 | 59,317 | ||||||||||
Total liabilities accounted for at fair value | 929,837 | 1,172,286 | |||||||||||
Counterparty netting, liabilities | [3] | (7,627) | (3,579) | ||||||||||
Recurring | Quoted prices in active markets for identical assets (Level 1) | |||||||||||||
Assets | |||||||||||||
Total investments available for sale | 0 | 557,510 | |||||||||||
Cash equivalents | [1] | 380,587 | 279,224 | ||||||||||
Other investments | [2] | 0 | 0 | ||||||||||
Other assets | [3] | 0 | 0 | ||||||||||
Total assets accounted for at fair value | 873,059 | 836,734 | |||||||||||
Liabilities | |||||||||||||
Funds withheld on GreyCastle life retrocession arrangements | [4] | 0 | 0 | ||||||||||
Other liabilities | [3] | 0 | 0 | ||||||||||
Total liabilities accounted for at fair value | 0 | 0 | |||||||||||
Recurring | Significant other observable inputs (Level 2) | |||||||||||||
Assets | |||||||||||||
Total investments available for sale | 30,403,250 | 31,876,112 | |||||||||||
Cash equivalents | [1] | 1,080,353 | 1,271,483 | ||||||||||
Other investments | [2] | 533,090 | 570,931 | ||||||||||
Other assets | [3] | 64,665 | 14,467 | ||||||||||
Total assets accounted for at fair value | 34,294,614 | 35,822,325 | |||||||||||
Liabilities | |||||||||||||
Funds withheld on GreyCastle life retrocession arrangements | [4] | 889,813 | 1,112,969 | ||||||||||
Other liabilities | [3] | 29,829 | 44,591 | ||||||||||
Total liabilities accounted for at fair value | 919,642 | 1,157,560 | |||||||||||
Recurring | Significant other unobservable inputs (Level 3) | |||||||||||||
Assets | |||||||||||||
Total investments available for sale | 13,014 | 24,814 | |||||||||||
Cash equivalents | [1] | 0 | 0 | ||||||||||
Other investments | [2] | 218,222 | 221,708 | ||||||||||
Other assets | [3] | 17,879 | 18,327 | ||||||||||
Total assets accounted for at fair value | 249,115 | 264,849 | |||||||||||
Liabilities | |||||||||||||
Funds withheld on GreyCastle life retrocession arrangements | [4] | 0 | 0 | ||||||||||
Other liabilities | [3] | 17,822 | 18,305 | ||||||||||
Total liabilities accounted for at fair value | 17,822 | 18,305 | |||||||||||
Recurring | Excluding Life Funds Withheld Assets | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 28,201,417 | 28,901,876 | |||||||||||
Short-term investments, at fair value | [5] | 623,113 | 815,481 | ||||||||||
Equity securities, at fair value | 713,967 | ||||||||||||
Total investments available for sale | 28,824,530 | 30,431,324 | |||||||||||
Equity securities, at fair value | 644,711 | ||||||||||||
Recurring | Excluding Life Funds Withheld Assets | U.S. Government and Government Agencies | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 3,960,291 | 4,362,740 | |||||||||||
Recurring | Excluding Life Funds Withheld Assets | US States, municipalities and political subdivisions of the States | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 1,858,142 | 2,064,640 | |||||||||||
Recurring | Excluding Life Funds Withheld Assets | Non-U.S. Governments | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 5,115,860 | 5,201,581 | |||||||||||
Recurring | Excluding Life Funds Withheld Assets | Corporate | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 9,950,095 | 9,795,133 | |||||||||||
Recurring | Excluding Life Funds Withheld Assets | Residential mortgage-backed securities | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 4,254,036 | 4,724,402 | |||||||||||
Recurring | Excluding Life Funds Withheld Assets | Commercial mortgage-backed securities | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 1,363,850 | 1,244,017 | |||||||||||
Recurring | Excluding Life Funds Withheld Assets | Other asset-backed securities | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 1,699,143 | 1,509,363 | |||||||||||
Recurring | Excluding Life Funds Withheld Assets | Quoted prices in active markets for identical assets (Level 1) | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 0 | 0 | |||||||||||
Short-term investments, at fair value | [5] | 0 | 0 | ||||||||||
Equity securities, at fair value | 557,510 | ||||||||||||
Total investments available for sale | 0 | 557,510 | |||||||||||
Equity securities, at fair value | 492,472 | ||||||||||||
Recurring | Excluding Life Funds Withheld Assets | Quoted prices in active markets for identical assets (Level 1) | U.S. Government and Government Agencies | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 0 | 0 | |||||||||||
Recurring | Excluding Life Funds Withheld Assets | Quoted prices in active markets for identical assets (Level 1) | US States, municipalities and political subdivisions of the States | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 0 | 0 | |||||||||||
Recurring | Excluding Life Funds Withheld Assets | Quoted prices in active markets for identical assets (Level 1) | Non-U.S. Governments | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 0 | 0 | |||||||||||
Recurring | Excluding Life Funds Withheld Assets | Quoted prices in active markets for identical assets (Level 1) | Corporate | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 0 | 0 | |||||||||||
Recurring | Excluding Life Funds Withheld Assets | Quoted prices in active markets for identical assets (Level 1) | Residential mortgage-backed securities | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 0 | 0 | |||||||||||
Recurring | Excluding Life Funds Withheld Assets | Quoted prices in active markets for identical assets (Level 1) | Commercial mortgage-backed securities | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 0 | 0 | |||||||||||
Recurring | Excluding Life Funds Withheld Assets | Quoted prices in active markets for identical assets (Level 1) | Other asset-backed securities | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 0 | 0 | |||||||||||
Recurring | Excluding Life Funds Withheld Assets | Significant other observable inputs (Level 2) | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 28,188,403 | 28,877,062 | |||||||||||
Short-term investments, at fair value | [5] | 623,113 | 815,481 | ||||||||||
Equity securities, at fair value | 156,457 | ||||||||||||
Total investments available for sale | 28,811,516 | 29,849,000 | |||||||||||
Equity securities, at fair value | 152,239 | ||||||||||||
Recurring | Excluding Life Funds Withheld Assets | Significant other observable inputs (Level 2) | U.S. Government and Government Agencies | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 3,955,271 | 4,344,450 | |||||||||||
Recurring | Excluding Life Funds Withheld Assets | Significant other observable inputs (Level 2) | US States, municipalities and political subdivisions of the States | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 1,858,142 | 2,064,640 | |||||||||||
Recurring | Excluding Life Funds Withheld Assets | Significant other observable inputs (Level 2) | Non-U.S. Governments | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 5,115,860 | 5,201,581 | |||||||||||
Recurring | Excluding Life Funds Withheld Assets | Significant other observable inputs (Level 2) | Corporate | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 9,948,048 | 9,793,841 | |||||||||||
Recurring | Excluding Life Funds Withheld Assets | Significant other observable inputs (Level 2) | Residential mortgage-backed securities | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 4,248,089 | 4,724,402 | |||||||||||
Recurring | Excluding Life Funds Withheld Assets | Significant other observable inputs (Level 2) | Commercial mortgage-backed securities | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 1,363,850 | 1,244,017 | |||||||||||
Recurring | Excluding Life Funds Withheld Assets | Significant other observable inputs (Level 2) | Other asset-backed securities | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 1,699,143 | 1,504,131 | |||||||||||
Recurring | Excluding Life Funds Withheld Assets | Significant other unobservable inputs (Level 3) | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 13,014 | 24,814 | |||||||||||
Short-term investments, at fair value | [5] | 0 | 0 | ||||||||||
Equity securities, at fair value | 0 | ||||||||||||
Total investments available for sale | 13,014 | 24,814 | |||||||||||
Equity securities, at fair value | 0 | ||||||||||||
Recurring | Excluding Life Funds Withheld Assets | Significant other unobservable inputs (Level 3) | U.S. Government and Government Agencies | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 5,020 | 18,290 | |||||||||||
Recurring | Excluding Life Funds Withheld Assets | Significant other unobservable inputs (Level 3) | US States, municipalities and political subdivisions of the States | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 0 | 0 | |||||||||||
Recurring | Excluding Life Funds Withheld Assets | Significant other unobservable inputs (Level 3) | Non-U.S. Governments | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 0 | 0 | |||||||||||
Recurring | Excluding Life Funds Withheld Assets | Significant other unobservable inputs (Level 3) | Corporate | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 2,047 | 1,292 | |||||||||||
Recurring | Excluding Life Funds Withheld Assets | Significant other unobservable inputs (Level 3) | Residential mortgage-backed securities | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 5,947 | 0 | |||||||||||
Recurring | Excluding Life Funds Withheld Assets | Significant other unobservable inputs (Level 3) | Commercial mortgage-backed securities | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 0 | 0 | |||||||||||
Recurring | Excluding Life Funds Withheld Assets | Significant other unobservable inputs (Level 3) | Other asset-backed securities | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 0 | 5,232 | |||||||||||
Recurring | Life Funds Withheld Assets | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 1,591,734 | 2,027,112 | |||||||||||
Fixed maturities, trading at fair value | 1,990,344 | 2,006,385 | |||||||||||
Short-term investments, trading at fair value | [5] | 5,788 | 14,965 | ||||||||||
Total investments trading | 1,996,132 | 2,021,350 | |||||||||||
Cash equivalents | [1] | 64,885 | 67,982 | ||||||||||
Recurring | Life Funds Withheld Assets | U.S. Government and Government Agencies | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 10,934 | 11,316 | |||||||||||
Fixed maturities, trading at fair value | 9,633 | 11,042 | |||||||||||
Recurring | Life Funds Withheld Assets | US States, municipalities and political subdivisions of the States | |||||||||||||
Assets | |||||||||||||
Fixed maturities, trading at fair value | 31 | ||||||||||||
Recurring | Life Funds Withheld Assets | Non-U.S. Governments | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 467,920 | 584,534 | |||||||||||
Fixed maturities, trading at fair value | 489,276 | 485,171 | |||||||||||
Recurring | Life Funds Withheld Assets | Corporate | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 869,594 | 1,137,213 | |||||||||||
Fixed maturities, trading at fair value | 1,440,572 | 1,460,292 | |||||||||||
Recurring | Life Funds Withheld Assets | Residential mortgage-backed securities | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 483 | 515 | |||||||||||
Fixed maturities, trading at fair value | 919 | 932 | |||||||||||
Recurring | Life Funds Withheld Assets | Commercial mortgage-backed securities | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 119,611 | 122,272 | |||||||||||
Fixed maturities, trading at fair value | 7,411 | 7,580 | |||||||||||
Recurring | Life Funds Withheld Assets | Other asset-backed securities | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 123,192 | 171,262 | |||||||||||
Fixed maturities, trading at fair value | 42,533 | 41,337 | |||||||||||
Recurring | Life Funds Withheld Assets | Quoted prices in active markets for identical assets (Level 1) | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 0 | 0 | |||||||||||
Fixed maturities, trading at fair value | 0 | 0 | |||||||||||
Short-term investments, trading at fair value | [5] | 0 | 0 | ||||||||||
Total investments trading | 0 | 0 | |||||||||||
Cash equivalents | [1] | 0 | 0 | ||||||||||
Recurring | Life Funds Withheld Assets | Quoted prices in active markets for identical assets (Level 1) | U.S. Government and Government Agencies | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 0 | 0 | |||||||||||
Fixed maturities, trading at fair value | 0 | 0 | |||||||||||
Recurring | Life Funds Withheld Assets | Quoted prices in active markets for identical assets (Level 1) | US States, municipalities and political subdivisions of the States | |||||||||||||
Assets | |||||||||||||
Fixed maturities, trading at fair value | 0 | ||||||||||||
Recurring | Life Funds Withheld Assets | Quoted prices in active markets for identical assets (Level 1) | Non-U.S. Governments | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 0 | 0 | |||||||||||
Fixed maturities, trading at fair value | 0 | 0 | |||||||||||
Recurring | Life Funds Withheld Assets | Quoted prices in active markets for identical assets (Level 1) | Corporate | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 0 | 0 | |||||||||||
Fixed maturities, trading at fair value | 0 | 0 | |||||||||||
Recurring | Life Funds Withheld Assets | Quoted prices in active markets for identical assets (Level 1) | Residential mortgage-backed securities | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 0 | 0 | |||||||||||
Fixed maturities, trading at fair value | 0 | 0 | |||||||||||
Recurring | Life Funds Withheld Assets | Quoted prices in active markets for identical assets (Level 1) | Commercial mortgage-backed securities | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 0 | 0 | |||||||||||
Fixed maturities, trading at fair value | 0 | 0 | |||||||||||
Recurring | Life Funds Withheld Assets | Quoted prices in active markets for identical assets (Level 1) | Other asset-backed securities | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 0 | 0 | |||||||||||
Fixed maturities, trading at fair value | 0 | 0 | |||||||||||
Recurring | Life Funds Withheld Assets | Significant other observable inputs (Level 2) | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 1,591,734 | 2,027,112 | |||||||||||
Fixed maturities, trading at fair value | 1,990,344 | 2,006,385 | |||||||||||
Short-term investments, trading at fair value | [5] | 5,788 | 14,965 | ||||||||||
Total investments trading | 1,996,132 | 2,021,350 | |||||||||||
Cash equivalents | [1] | 64,885 | 67,982 | ||||||||||
Recurring | Life Funds Withheld Assets | Significant other observable inputs (Level 2) | U.S. Government and Government Agencies | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 10,934 | 11,316 | |||||||||||
Fixed maturities, trading at fair value | 9,633 | 11,042 | |||||||||||
Recurring | Life Funds Withheld Assets | Significant other observable inputs (Level 2) | US States, municipalities and political subdivisions of the States | |||||||||||||
Assets | |||||||||||||
Fixed maturities, trading at fair value | 31 | ||||||||||||
Recurring | Life Funds Withheld Assets | Significant other observable inputs (Level 2) | Non-U.S. Governments | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 467,920 | 584,534 | |||||||||||
Fixed maturities, trading at fair value | 489,276 | 485,171 | |||||||||||
Recurring | Life Funds Withheld Assets | Significant other observable inputs (Level 2) | Corporate | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 869,594 | 1,137,213 | |||||||||||
Fixed maturities, trading at fair value | 1,440,572 | 1,460,292 | |||||||||||
Recurring | Life Funds Withheld Assets | Significant other observable inputs (Level 2) | Residential mortgage-backed securities | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 483 | 515 | |||||||||||
Fixed maturities, trading at fair value | 919 | 932 | |||||||||||
Recurring | Life Funds Withheld Assets | Significant other observable inputs (Level 2) | Commercial mortgage-backed securities | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 119,611 | 122,272 | |||||||||||
Fixed maturities, trading at fair value | 7,411 | 7,580 | |||||||||||
Recurring | Life Funds Withheld Assets | Significant other observable inputs (Level 2) | Other asset-backed securities | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 123,192 | 171,262 | |||||||||||
Fixed maturities, trading at fair value | 42,533 | 41,337 | |||||||||||
Recurring | Life Funds Withheld Assets | Significant other unobservable inputs (Level 3) | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 0 | 0 | |||||||||||
Fixed maturities, trading at fair value | 0 | 0 | |||||||||||
Short-term investments, trading at fair value | [5] | 0 | 0 | ||||||||||
Total investments trading | 0 | 0 | |||||||||||
Cash equivalents | [1] | 0 | 0 | ||||||||||
Recurring | Life Funds Withheld Assets | Significant other unobservable inputs (Level 3) | U.S. Government and Government Agencies | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 0 | 0 | |||||||||||
Fixed maturities, trading at fair value | 0 | 0 | |||||||||||
Recurring | Life Funds Withheld Assets | Significant other unobservable inputs (Level 3) | US States, municipalities and political subdivisions of the States | |||||||||||||
Assets | |||||||||||||
Fixed maturities, trading at fair value | 0 | ||||||||||||
Recurring | Life Funds Withheld Assets | Significant other unobservable inputs (Level 3) | Non-U.S. Governments | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 0 | 0 | |||||||||||
Fixed maturities, trading at fair value | 0 | 0 | |||||||||||
Recurring | Life Funds Withheld Assets | Significant other unobservable inputs (Level 3) | Corporate | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 0 | 0 | |||||||||||
Fixed maturities, trading at fair value | 0 | 0 | |||||||||||
Recurring | Life Funds Withheld Assets | Significant other unobservable inputs (Level 3) | Residential mortgage-backed securities | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 0 | 0 | |||||||||||
Fixed maturities, trading at fair value | 0 | 0 | |||||||||||
Recurring | Life Funds Withheld Assets | Significant other unobservable inputs (Level 3) | Commercial mortgage-backed securities | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 0 | 0 | |||||||||||
Fixed maturities, trading at fair value | 0 | 0 | |||||||||||
Recurring | Life Funds Withheld Assets | Significant other unobservable inputs (Level 3) | Other asset-backed securities | |||||||||||||
Assets | |||||||||||||
Fixed maturities AFS | 0 | 0 | |||||||||||
Fixed maturities, trading at fair value | $ 0 | $ 0 | |||||||||||
|
Fair Value Measurements - Additional information about assets and liabilities measured at fair value on a recurring basis (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|||||||||
Level 3 assets | ||||||||||||
Balance, beginning of period | $ 265,538 | $ 252,432 | $ 246,544 | $ 251,596 | ||||||||
Realized gains (losses) | 8,046 | 5,152 | 8,539 | (361) | ||||||||
Movement in unrealized gains (losses) | (5,406) | 10,596 | 226 | 17,092 | ||||||||
Purchases and issuances | 7,343 | 18,187 | 38,010 | 34,862 | ||||||||
Sales | 0 | (25,045) | (13,016) | (35,329) | ||||||||
Settlements | (12,816) | (7,527) | (24,449) | (13,513) | ||||||||
Net transfers into (out of) Level 3 | (31,412) | (5,692) | (24,561) | (6,244) | ||||||||
Balance, end of period | 231,293 | 248,103 | 231,293 | 248,103 | ||||||||
Movement in total gains (losses) above relating to instruments still held at the reporting date | (5,000) | 4,280 | 657 | 10,411 | ||||||||
Derivative contracts - net | ||||||||||||
Balance, beginning of period | 334 | 163 | 22 | 2 | ||||||||
Realized gains (losses) | 0 | 0 | 0 | 0 | ||||||||
Movement in unrealized gains (losses) | (277) | 377 | 35 | 538 | ||||||||
Purchases and issuances | 0 | 0 | 0 | 0 | ||||||||
Sales | 0 | 0 | 0 | 0 | ||||||||
Settlements | 0 | 0 | 0 | 0 | ||||||||
Net transfers into (ouf ot) Level 3 | 0 | [1] | 0 | [1] | 0 | [2] | 0 | [2] | ||||
Balance, end of period | 57 | 540 | 57 | 540 | ||||||||
Movement in total gains (losses) above relating to instruments still held at the reporting date | (277) | 377 | 35 | 538 | ||||||||
U.S. Government and Government Agencies | ||||||||||||
Level 3 assets | ||||||||||||
Balance, beginning of period | 5,034 | 19,308 | 18,290 | 24,751 | ||||||||
Realized gains (losses) | 0 | (19) | (354) | (38) | ||||||||
Movement in unrealized gains (losses) | (14) | 81 | 100 | (274) | ||||||||
Purchases and issuances | 0 | 0 | 0 | 0 | ||||||||
Sales | 0 | 0 | (13,016) | 0 | ||||||||
Settlements | 0 | (311) | 0 | (622) | ||||||||
Net transfers into (out of) Level 3 | 0 | [1] | 0 | [1] | 0 | [2] | (4,758) | [2] | ||||
Balance, end of period | 5,020 | 19,059 | 5,020 | 19,059 | ||||||||
Movement in total gains (losses) above relating to instruments still held at the reporting date | (14) | 96 | (50) | (278) | ||||||||
Corporate | ||||||||||||
Level 3 assets | ||||||||||||
Balance, beginning of period | 2,128 | 9,899 | 1,292 | 20,085 | ||||||||
Realized gains (losses) | 0 | 27 | 0 | 27 | ||||||||
Movement in unrealized gains (losses) | 11 | (30) | 54 | (19) | ||||||||
Purchases and issuances | 0 | 0 | 0 | 0 | ||||||||
Sales | 0 | (9,730) | 0 | (20,014) | ||||||||
Settlements | (92) | 0 | (193) | (31) | ||||||||
Net transfers into (out of) Level 3 | 0 | [1] | 1,018 | [1] | 894 | [2] | 1,136 | [2] | ||||
Balance, end of period | 2,047 | 1,184 | 2,047 | 1,184 | ||||||||
Movement in total gains (losses) above relating to instruments still held at the reporting date | 11 | (31) | 54 | (32) | ||||||||
Derivative contracts - net | ||||||||||||
Transfers out of Level 3 | (100) | [2] | (100) | |||||||||
Transfers Into Level 3 | 1,100 | [2] | 1,200 | |||||||||
Residential mortgage-backed securities | ||||||||||||
Level 3 assets | ||||||||||||
Balance, beginning of period | 6,937 | 3,381 | 0 | 0 | ||||||||
Realized gains (losses) | 0 | 0 | 0 | 17 | ||||||||
Movement in unrealized gains (losses) | (10) | 0 | (10) | (526) | ||||||||
Purchases and issuances | 0 | 0 | 980 | 0 | ||||||||
Sales | 0 | 0 | 0 | 0 | ||||||||
Settlements | 0 | 0 | 0 | (173) | ||||||||
Net transfers into (out of) Level 3 | (980) | [1] | (3,381) | [1] | 4,977 | [2] | 682 | [2] | ||||
Balance, end of period | 5,947 | 0 | 5,947 | 0 | ||||||||
Movement in total gains (losses) above relating to instruments still held at the reporting date | (10) | 0 | (10) | 0 | ||||||||
Derivative contracts - net | ||||||||||||
Transfers out of Level 3 | (1,000) | (3,400) | [2] | |||||||||
Transfers Into Level 3 | 6,000 | 4,100 | [2] | |||||||||
Commercial mortgage-backed securities | ||||||||||||
Level 3 assets | ||||||||||||
Balance, beginning of period | 101 | 99 | ||||||||||
Realized gains (losses) | 21 | 21 | ||||||||||
Movement in unrealized gains (losses) | (20) | (18) | ||||||||||
Purchases and issuances | 0 | 0 | ||||||||||
Sales | 0 | 0 | ||||||||||
Settlements | (24) | (24) | ||||||||||
Net transfers into (out of) Level 3 | 0 | [1] | 0 | [2] | ||||||||
Balance, end of period | 78 | 78 | ||||||||||
Movement in total gains (losses) above relating to instruments still held at the reporting date | (20) | (18) | ||||||||||
Other asset-backed securities | ||||||||||||
Level 3 assets | ||||||||||||
Balance, beginning of period | 19,737 | 3,950 | 5,232 | 1,131 | ||||||||
Realized gains (losses) | 0 | 56 | 0 | 86 | ||||||||
Movement in unrealized gains (losses) | 0 | 1,010 | (28) | 1,111 | ||||||||
Purchases and issuances | 0 | 6,890 | 15,407 | 6,890 | ||||||||
Sales | 0 | (1,446) | 0 | (1,446) | ||||||||
Settlements | 0 | (240) | (874) | (286) | ||||||||
Net transfers into (out of) Level 3 | (19,737) | [1] | (3,329) | [1] | (19,737) | [2] | (595) | [2] | ||||
Balance, end of period | 0 | 6,891 | 0 | 6,891 | ||||||||
Movement in total gains (losses) above relating to instruments still held at the reporting date | 0 | 0 | 0 | 0 | ||||||||
Derivative contracts - net | ||||||||||||
Transfers out of Level 3 | [2] | (6,700) | (6,700) | |||||||||
Transfers Into Level 3 | 3,400 | [2] | 6,100 | |||||||||
Short-term investments | ||||||||||||
Level 3 assets | ||||||||||||
Balance, beginning of period | 11,665 | 0 | ||||||||||
Realized gains (losses) | 0 | 0 | ||||||||||
Movement in unrealized gains (losses) | 0 | 0 | ||||||||||
Purchases and issuances | 0 | 11,693 | ||||||||||
Sales | (11,662) | (11,662) | ||||||||||
Settlements | 0 | (28) | ||||||||||
Net transfers into (out of) Level 3 | 0 | [1] | 0 | [2] | ||||||||
Balance, end of period | 3 | 3 | ||||||||||
Movement in total gains (losses) above relating to instruments still held at the reporting date | 0 | 0 | ||||||||||
Other investments | ||||||||||||
Level 3 assets | ||||||||||||
Balance, beginning of period | 231,368 | 203,965 | 221,708 | 205,528 | ||||||||
Realized gains (losses) | 8,046 | 5,067 | 8,893 | (474) | ||||||||
Movement in unrealized gains (losses) | (5,116) | 9,178 | 75 | 16,280 | ||||||||
Purchases and issuances | 7,343 | 11,297 | 21,623 | 16,279 | ||||||||
Sales | 0 | (2,207) | 0 | (2,207) | ||||||||
Settlements | (12,724) | (6,952) | (23,382) | (12,349) | ||||||||
Net transfers into (out of) Level 3 | (10,695) | [1] | 0 | [1] | (10,695) | [2] | (2,709) | [2] | ||||
Balance, end of period | 218,222 | 220,348 | 218,222 | 220,348 | ||||||||
Movement in total gains (losses) above relating to instruments still held at the reporting date | $ (4,710) | $ 3,858 | $ 628 | $ 10,201 | ||||||||
|
Fair Value Measurements - Financial instruments not carried at fair value (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other investments | $ 173,200 | $ 173,000 |
Deposit liabilities | 940,557 | 1,042,677 |
Notes payable and debt | 3,217,123 | 3,220,769 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other investments | 173,224 | 172,982 |
Deposit liabilities | 940,557 | 1,042,677 |
Notes payable and debt | 3,217,123 | 3,220,769 |
Financial Liabilities | 4,157,680 | 4,263,446 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other investments | 181,551 | 182,222 |
Deposit liabilities | 1,144,027 | 1,266,682 |
Notes payable and debt | 3,393,394 | 3,507,108 |
Financial Liabilities | $ 4,537,421 | $ 4,773,790 |
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Fair Value Disclosures [Abstract] | ||
Investments Net Asset Value | $ 227.2 | $ 198.2 |
Other investments | $ 173.2 | $ 173.0 |
Spread on U.S. treasury for discounting deposit liabilities | 0.233% | 0.455% |
Goodwill and Other Intangible Assets - Goodwill and other intangible assets rollforward (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2018
USD ($)
| |
Goodwill | |
Goodwill, beginning of period | $ 1,234,150 |
Goodwill, foreign currency translation | (6,448) |
Goodwill, end of period | 1,227,702 |
Intangible assets with an indefinite life | |
Intangible assets with an indefinite life, beginning of period | 699,014 |
Indefinite-lived intangible assets, foreign currency translation | (5,608) |
Intangible assets with an indefinite life, end of period | 693,406 |
Intangible assets with a definite life | |
Intangible assets with a definite life, beginning of period | 292,587 |
Amortization | (10,091) |
Identified definite life intangible assets, foreign currency translation | (2,519) |
Intangible assets with a definite life, end of period | 279,977 |
Total | |
Goodwill and other intangible assets, beginning of period | 2,225,751 |
Amortization | (10,091) |
Foreign currency translation | (14,575) |
Goodwill and other intangible assets, end of period | $ 2,201,085 |
Losses and Loss Expenses - Reconciliation of the beginning and ending balances of unpaid losses and losee expenses (Details) - USD ($) $ in Thousands |
6 Months Ended | ||||
---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Unpaid losses and loss expenses, beginning of period | $ 29,696,779 | $ 25,939,571 | |||
Unpaid losses and loss expenses recoverable, beginning of period | 7,247,723 | ||||
Net unpaid losses and loss expenses, beginning of period | 22,457,333 | 20,459,271 | |||
Increase (decrease) in net losses and loss expenses incurred in respect of losses occurring in: | |||||
Current year | 3,361,365 | 3,175,267 | |||
Prior year | (18,050) | (62,728) | |||
Total net incurred losses and loss expenses | 3,343,315 | 3,112,539 | |||
Foreign exchange and other | (107,166) | 292,040 | |||
Less net losses and loss expenses paid in respect of losses occurring in: | |||||
Current year | 277,656 | 343,934 | |||
Prior year | 3,432,843 | 2,547,073 | |||
Total net paid losses | 3,710,499 | 2,891,007 | |||
Net unpaid losses and loss expenses, end of period | 21,982,983 | 20,972,843 | |||
Unpaid losses and loss expenses recoverable, end of period | 7,209,084 | ||||
Unpaid losses and loss expenses, end of period | 29,181,147 | 26,822,346 | |||
Total P&C | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Unpaid losses and loss expenses recoverable, beginning of period | [1] | 7,239,446 | 5,480,300 | ||
Less net losses and loss expenses paid in respect of losses occurring in: | |||||
Unpaid losses and loss expenses recoverable, end of period | [1] | $ 7,198,164 | $ 5,849,503 | ||
|
Losses and Loss Expenses - Net (favorable) adverse prior year loss development of loss and loss expense reserves by operating segment (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Prior year | $ (18,050) | $ (62,728) |
Insurance Segment | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Prior year | 46,588 | (21,869) |
Insurance Segment | Professional | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Prior year | (3,016) | (56,390) |
Insurance Segment | Casualty | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Prior year | (33,921) | (81,985) |
Insurance Segment | Property | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Prior year | 70,508 | 99,847 |
Insurance Segment | Specialty | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Prior year | 13,017 | 16,659 |
Reinsurance Segment | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Prior year | (64,638) | (40,859) |
Reinsurance Segment | Casualty | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Prior year | 9,800 | |
Reinsurance Segment | Property and other short-tail lines | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Prior year | (62,883) | (110,025) |
Reinsurance Segment | Casualty and other long-tail lines | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Prior year | (1,755) | $ 69,166 |
Reinsurance Segment | Other | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Prior year | $ (11,500) |
Losses and Loss Expenses - Narrative (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Prior year | $ (18,050) | $ (62,728) |
Insurance Segment | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Prior year | 46,588 | (21,869) |
Reinsurance Segment | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Prior year | (64,638) | (40,859) |
Reinsurance Segment | Property and other short-tail lines | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Prior year | (62,883) | (110,025) |
Reinsurance Segment | Casualty and other long-tail lines | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Prior year | $ (1,755) | $ 69,166 |
Notes Payable and Debt and Financing Arrangements - Notes payable and debt (Details) € in Thousands, $ in Thousands |
6 Months Ended | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 01, 2018
USD ($)
|
Jun. 29, 2017
USD ($)
|
Jun. 30, 2018
USD ($)
|
Jun. 30, 2017
USD ($)
|
Dec. 31, 2017
USD ($)
|
Jul. 07, 2017
USD ($)
|
Jun. 30, 2017
EUR (€)
|
Jun. 29, 2017
EUR (€)
|
Mar. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
Dec. 31, 2012
USD ($)
|
Dec. 31, 2007
USD ($)
|
Jun. 30, 2007
USD ($)
|
||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Percentage ownership of subsidiaries | 100.00% | |||||||||||||||||||
Notes payable and debt | $ 3,217,123 | $ 3,220,769 | ||||||||||||||||||
Proceeds from the issuance of debt | 0 | $ 558,311 | ||||||||||||||||||
Senior notes | 2.3% Senior Notes due 2018 | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Commitment, debt | $ 300,000 | |||||||||||||||||||
Notes payable and debt | [1] | $ 299,692 | 299,357 | |||||||||||||||||
Debt interest rate (percent) | 2.30% | |||||||||||||||||||
Senior notes | 5.75% Senior Notes due 2021 | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Commitment, debt | $ 400,000 | |||||||||||||||||||
Notes payable and debt | [1] | $ 398,600 | 398,384 | |||||||||||||||||
Debt interest rate (percent) | 5.75% | |||||||||||||||||||
Senior notes | 6.375% Senior Notes due 2024 | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Commitment, debt | $ 350,000 | |||||||||||||||||||
Notes payable and debt | [1] | $ 349,303 | 349,248 | |||||||||||||||||
Debt interest rate (percent) | 6.375% | |||||||||||||||||||
Senior notes | 6.25% Senior Notes due 2027 | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Commitment, debt | $ 325,000 | |||||||||||||||||||
Notes payable and debt | [1] | $ 323,610 | 323,531 | |||||||||||||||||
Debt interest rate (percent) | 6.25% | |||||||||||||||||||
Senior notes | 5.25% Senior Notes due 2043 | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Commitment, debt | $ 300,000 | |||||||||||||||||||
Notes payable and debt | [1] | $ 296,626 | 296,560 | |||||||||||||||||
Debt interest rate (percent) | 5.25% | |||||||||||||||||||
Subordinated notes | 4.45% Subordinated Notes due 2025 | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Commitment, debt | $ 500,000 | |||||||||||||||||||
Notes payable and debt | [1] | $ 494,542 | 494,138 | |||||||||||||||||
Debt interest rate (percent) | 4.45% | |||||||||||||||||||
Subordinated notes | 5.5% Subordinated Notes due 2045 | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Commitment, debt | $ 500,000 | |||||||||||||||||||
Notes payable and debt | [1],[2] | $ 473,024 | 472,832 | |||||||||||||||||
Debt interest rate (percent) | 5.50% | |||||||||||||||||||
Debt Instrument, Repurchased Face Amount | $ 16,700 | |||||||||||||||||||
Subordinated notes | 3.25% Subordinated Notes due 2047 | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Commitment, debt | $ 568,800 | € 500,000 | € 500,000 | |||||||||||||||||
Notes payable and debt | [1],[3] | $ 568,066 | 586,719 | |||||||||||||||||
Debt interest rate (percent) | 3.25% | 3.25% | 3.25% | |||||||||||||||||
Interest rate term | 10 years | |||||||||||||||||||
Debt Issuance Percentage of Face Value | 99.054% | 99.054% | ||||||||||||||||||
Proceeds from the issuance of debt | $ 558,300 | |||||||||||||||||||
Unamortized Debt Issuance Expense | $ 10,500 | |||||||||||||||||||
Subordinated notes | 3.25% Subordinated Notes due 2047 | 3 month Euribor | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Spread on variable rate | 2.90% | |||||||||||||||||||
Loans Payable [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Commitment, debt | $ 14,300 | |||||||||||||||||||
Other debt | [1] | $ 13,660 | $ 0 | |||||||||||||||||
Debt Instrument, Unused Borrowing Capacity, Amount | $ 6,000 | |||||||||||||||||||
Loans Payable [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Spread on variable rate | 3.50% | |||||||||||||||||||
|
Notes Payable and Debt and Financing Arrangements - Letter of credit facilities and other sources of collateral (Details) $ in Thousands |
Jun. 30, 2018
USD ($)
Credit_Facilities
|
Dec. 31, 2017
USD ($)
Credit_Facilities
|
---|---|---|
Line of Credit Facility [Line Items] | ||
Number of letter of credit facilities available | Credit_Facilities | 10 | 10 |
Letter of credit | ||
Line of Credit Facility [Line Items] | ||
Available letter of credit facilities - commitments | $ 3,519,938 | $ 3,392,986 |
Available letter of credit facilities - in use | $ 2,814,510 | $ 2,549,226 |
Collateralized by certain assets of the Company’s investment portfolio | 55.90% | 54.20% |
Revolving credit facility | ||
Line of Credit Facility [Line Items] | ||
Available credit facilities - remaining borrowing capacity | $ 673,900 | $ 748,000 |
Available letter of credit facilities - commitments | 750,000 | |
Available letter of credit facilities - in use | 76,100 | 2,000 |
Credit Agricole Facility I [Member] | Letter of credit | ||
Line of Credit Facility [Line Items] | ||
Available letter of credit facilities - commitments | 125,000 | 125,000 |
Available letter of credit facilities - in use | 125,000 | 125,000 |
Credit Agricole Facility II [Member] | Letter of credit | ||
Line of Credit Facility [Line Items] | ||
Available letter of credit facilities - commitments | 125,000 | 125,000 |
Available letter of credit facilities - in use | 125,000 | 125,000 |
Commonwealth Bank Facility [Member] | Letter of credit | ||
Line of Credit Facility [Line Items] | ||
Available letter of credit facilities - commitments | 215,000 | 215,000 |
Available letter of credit facilities - in use | 215,000 | 215,000 |
Credit Suisse Facility [Member] | Letter of credit | ||
Line of Credit Facility [Line Items] | ||
Available letter of credit facilities - commitments | 100,000 | 100,000 |
Available letter of credit facilities - in use | 100,000 | 100,000 |
Funds at Lloyds Bilateral Facility I [Member] | Letter of credit | ||
Line of Credit Facility [Line Items] | ||
Available letter of credit facilities - commitments | 125,000 | 125,000 |
Available letter of credit facilities - in use | 125,000 | 125,000 |
Funds at Lloyds Bilateral Facility II [Member] | Letter of credit | ||
Line of Credit Facility [Line Items] | ||
Available letter of credit facilities - commitments | 125,000 | 125,000 |
Available letter of credit facilities - in use | 125,000 | 125,000 |
Funds at Lloyds Bilateral Facility III [Member] | Letter of credit | ||
Line of Credit Facility [Line Items] | ||
Available letter of credit facilities - commitments | 125,000 | 125,000 |
Available letter of credit facilities - in use | 125,000 | 125,000 |
Funds at Lloyds Bilateral Facility IV [Member] | Letter of credit | ||
Line of Credit Facility [Line Items] | ||
Available letter of credit facilities - commitments | 125,000 | 125,000 |
Available letter of credit facilities - in use | 125,000 | 125,000 |
Syndicated Lenders [Member] | Unsecured Debt [Member] | ||
Line of Credit Facility [Line Items] | ||
Available letter of credit facilities - commitments | 750,000 | 750,000 |
Available letter of credit facilities - in use | 76,097 | 2,000 |
Commerzbank Facility [Member] | Letter of credit | ||
Line of Credit Facility [Line Items] | ||
Available letter of credit facilities - commitments | 100,000 | 100,000 |
Available letter of credit facilities - in use | 100,000 | 100,000 |
Unsecured Credit Facilities [Member] | Letter of credit | ||
Line of Credit Facility [Line Items] | ||
Available letter of credit facilities - commitments | 1,915,000 | 1,915,000 |
Available letter of credit facilities - in use | 1,241,097 | 1,167,000 |
Secured Credit Facilities [Member] | Letter of credit | ||
Line of Credit Facility [Line Items] | ||
Available letter of credit facilities - commitments | 1,604,938 | 1,477,986 |
Available letter of credit facilities - in use | $ 1,573,413 | $ 1,382,226 |
Related Party Transactions - Schedule of related party transactions activity (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | |||||
---|---|---|---|---|---|---|---|
Jun. 30, 2018
USD ($)
management_company
|
Jun. 30, 2017
USD ($)
management_company
|
Jun. 30, 2018
USD ($)
management_company
|
Jun. 30, 2017
USD ($)
management_company
|
||||
Related Party Transaction [Line Items] | |||||||
Document Fiscal Year Focus | 2018 | ||||||
Number of investment management companies | management_company | 2 | 3 | 2 | 3 | |||
Number of investment technology service firms | management_company | 1 | 1 | 1 | 1 | |||
Reported net premiums written | $ 2,821,744 | $ 2,649,265 | $ 5,977,462 | $ 5,632,335 | |||
Net losses and loss expenses incurred | 1,721,309 | 1,529,083 | 3,343,315 | 3,112,539 | |||
Reported net acquisition costs | $ 471,491 | 433,584 | $ 935,318 | 869,453 | [1] | ||
XL Innovate Fund [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Ownership percentage held by noncontrolling interest | 5.21% | 5.21% | |||||
Investment manager affiliates | |||||||
Related Party Transaction [Line Items] | |||||||
Reported net premiums written | $ 50,024 | 44,042 | $ 65,602 | 65,757 | |||
Net losses and loss expenses incurred | 27,570 | 20,558 | 39,289 | 31,808 | |||
Reported net acquisition costs | $ 21,946 | $ 18,741 | $ 27,534 | $ 27,955 | |||
|
Variable Interest Entities (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Variable Interest Entity [Line Items] | ||
Total net assets attributable to XL | $ 108,735 | $ 108,466 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Total net assets | 225,220 | 242,605 |
Non-controlling interest in equity of consolidated subsidiaries | 116,485 | 134,139 |
New Ocean Capital Management Ltd [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Non-controlling interest in equity of consolidated subsidiaries | $ 700 | $ 500 |
Share Capital - Options valuation assumptions (Details) |
6 Months Ended |
---|---|
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Dividend yield | 2.00% |
Risk free interest rate | 2.71% |
Volatility | 27.04% |
Expected lives | 6 years |
Share Capital - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2018 |
Feb. 17, 2017 |
|
Minimum | |||
Stock plans | |||
Award vesting period | 3 years | ||
Maximum | |||
Stock plans | |||
Award vesting period | 4 years | ||
Stock options | |||
Stock plans | |||
Options granted (in shares) | 400,000 | ||
Options, weighted average grant date fair value, per share | $ 10.34 | ||
Restricted Stock [Member] | |||
Stock plans | |||
Other awards granted during the period (in shares) | 30,911 | ||
Aggregate grant date fair value | $ 1.7 | ||
Restricted stock units | |||
Stock plans | |||
Other awards granted during the period (in shares) | 1,200,000 | ||
Aggregate grant date fair value | $ 51.3 | ||
Restricted stock units | Three Year Option | |||
Stock plans | |||
Award vesting period | 3 years | ||
Restricted stock units | Four Year Option | |||
Stock plans | |||
Award vesting period | 4 years | ||
Performance Shares | |||
Stock plans | |||
Other awards granted during the period (in shares) | 300,000 | ||
Aggregate grant date fair value | $ 13.5 | ||
Maximum number of performance shares | 600,000 | ||
Performance Shares | Minimum | |||
Stock plans | |||
Pinal payout percentage | 0.00% | ||
Performance Shares | Maximum | |||
Stock plans | |||
Pinal payout percentage | 200.00% | ||
February 2017 Program | |||
Shareholders Equity Disclosure [Line Items] | |||
Share repurchase program, authorized amount | $ 1,000.0 | ||
Share repurchase program, remaining authorization | $ 529.1 | $ 529.1 | |
Settling of employee withholding taxes | |||
Shareholders Equity Disclosure [Line Items] | |||
Share repurchase program, value of shares repurchased and retired during the period | $ 0.4 | $ 2.1 |
Computation of Earnings Per Common Share and Common Share Equivalent - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Basic earnings per common share & common share equivalents outstanding: | ||||
Net income (loss) attributable to common shareholders | $ 318,996 | $ 301,620 | $ 471,644 | $ 454,463 |
Weighted average common shares outstanding - basic (in thousands of shares) | 258,375 | 260,990 | 257,653 | 263,327 |
Basic earnings per common share & common share equivalents outstanding | $ 1.23 | $ 1.16 | $ 1.83 | $ 1.73 |
Diluted earnings per common share & common share equivalents outstanding: | ||||
Weighted average common shares outstanding - basic (in thousands of shares) | 258,375 | 260,990 | 257,653 | 263,327 |
Impact of share-based compensation | 5,447 | 3,953 | 4,957 | 3,952 |
Weighted average common shares outstanding - diluted (in thousands of shares) | 263,822 | 264,943 | 262,610 | 267,279 |
Diluted earnings per common share & common share equivalents outstanding | $ 1.21 | $ 1.14 | $ 1.80 | $ 1.70 |
Dividends per ordinary share | $ 0.22 | $ 0.22 | $ 0.44 | $ 0.44 |
Computation of Earnings Per Common Share and Common Share Equivalent - Antidilutive shares (Details) - shares shares in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Share-based compensation plans | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Common shares available for issuance under share-based compensation plans | 0.0 | 1.2 | 0.2 | 1.3 |
Accumulated Other Comprehensive Income (Loss) - Changes in AOCI, net of tax (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Dec. 31, 2017 |
||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Beginning balance, net of tax | $ 312,255 | $ 844,974 | $ 889,431 | $ 715,546 | ||||||
OCI before reclassifications | (202,991) | 185,718 | (606,118) | 374,541 | ||||||
Amounts reclassified from AOCI | (81,436) | (93,128) | (66,896) | (144,276) | ||||||
Tax benefit (expense) | 23,436 | (16,399) | 52,800 | (24,646) | ||||||
Comprehensive income (loss) | (260,991) | 76,191 | (620,214) | 205,619 | ||||||
Ending balance, net of tax | 51,264 | 921,165 | 51,264 | 921,165 | ||||||
Change in adjustments related to future policy benefit reserves, net of tax | (42,314) | (3,437) | (46,478) | (8,569) | ||||||
Cumulative Effect on Retained Earnings, before Tax | 233,800 | |||||||||
Cumulative Effect on Retained Earnings, Tax | (11,900) | |||||||||
Unrealized gains (losses) on investments | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Beginning balance, net of tax | [1] | 294,809 | 816,882 | 870,478 | 730,429 | |||||
OCI before reclassifications | [1] | (166,281) | 179,229 | (566,073) | 329,189 | |||||
Amounts reclassified from AOCI | [1] | (83,386) | (94,591) | (72,511) | (147,146) | |||||
Tax benefit (expense) | [1] | 14,610 | (8,228) | 43,357 | (19,180) | |||||
Comprehensive income (loss) | [1] | (235,057) | 76,410 | (595,227) | 162,863 | |||||
Ending balance, net of tax | [1] | 59,752 | 893,292 | 59,752 | 893,292 | |||||
Cumulative impact of net unrealized gains losses on future policy benefit reserve | 138,500 | 138,500 | $ 184,900 | |||||||
Change in adjustments related to future policy benefit reserves, net of tax | (46,500) | |||||||||
OTTI losses recognized in AOCI | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Beginning balance, net of tax | (39,911) | (49,510) | (43,527) | (50,952) | ||||||
OCI before reclassifications | 0 | 0 | 0 | 0 | ||||||
Amounts reclassified from AOCI | 1,997 | 1,511 | 5,710 | 2,966 | ||||||
Tax benefit (expense) | (1) | (14) | (98) | (27) | ||||||
Comprehensive income (loss) | 1,996 | 1,497 | 5,612 | 2,939 | ||||||
Ending balance, net of tax | (37,915) | (48,013) | (37,915) | (48,013) | ||||||
Foreign currency translation adjustments | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Beginning balance, net of tax | 80,394 | 100,908 | 83,042 | 58,970 | ||||||
OCI before reclassifications | (37,176) | 7,028 | (40,288) | 46,232 | ||||||
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 | ||||||
Tax benefit (expense) | 8,880 | (8,120) | 9,560 | (5,386) | ||||||
Comprehensive income (loss) | (28,296) | (1,092) | (30,728) | 40,846 | ||||||
Ending balance, net of tax | 52,098 | 99,816 | 52,098 | 99,816 | ||||||
Underfunded pension liability | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Beginning balance, net of tax | (24,783) | (25,244) | (22,356) | (24,887) | ||||||
OCI before reclassifications | 466 | (539) | 243 | (880) | ||||||
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 | ||||||
Tax benefit (expense) | (53) | (37) | (19) | (53) | ||||||
Comprehensive income (loss) | 413 | (576) | 224 | (933) | ||||||
Ending balance, net of tax | (24,370) | (25,820) | (24,370) | (25,820) | ||||||
Cash flow hedge | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Beginning balance, net of tax | 1,746 | 1,938 | 1,794 | 1,986 | ||||||
OCI before reclassifications | 0 | 0 | 0 | 0 | ||||||
Amounts reclassified from AOCI | (47) | (48) | (95) | (96) | ||||||
Tax benefit (expense) | 0 | 0 | 0 | 0 | ||||||
Comprehensive income (loss) | (47) | (48) | (95) | (96) | ||||||
Ending balance, net of tax | $ 1,699 | $ 1,890 | 1,699 | $ 1,890 | ||||||
Accounting Standards Update 2016-01 | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Reclassification due to adoption of new accounting pronouncement | [2] | (221,856) | ||||||||
Accounting Standards Update 2016-01 | Unrealized gains (losses) on investments | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Reclassification due to adoption of new accounting pronouncement | [1],[2] | (221,856) | ||||||||
Accounting Standards Update 2016-01 | OTTI losses recognized in AOCI | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Reclassification due to adoption of new accounting pronouncement | [2] | 0 | ||||||||
Accounting Standards Update 2016-01 | Foreign currency translation adjustments | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Reclassification due to adoption of new accounting pronouncement | [2] | 0 | ||||||||
Accounting Standards Update 2016-01 | Underfunded pension liability | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Reclassification due to adoption of new accounting pronouncement | [2] | 0 | ||||||||
Accounting Standards Update 2016-01 | Cash flow hedge | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Reclassification due to adoption of new accounting pronouncement | [2] | 0 | ||||||||
Accounting Standards Update 2018-02 | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Reclassification due to adoption of new accounting pronouncement | 3,903 | |||||||||
Accounting Standards Update 2018-02 | Unrealized gains (losses) on investments | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Reclassification due to adoption of new accounting pronouncement | [1] | 6,357 | ||||||||
Accounting Standards Update 2018-02 | OTTI losses recognized in AOCI | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Reclassification due to adoption of new accounting pronouncement | 0 | |||||||||
Accounting Standards Update 2018-02 | Foreign currency translation adjustments | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Reclassification due to adoption of new accounting pronouncement | (216) | |||||||||
Accounting Standards Update 2018-02 | Underfunded pension liability | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Reclassification due to adoption of new accounting pronouncement | (2,238) | |||||||||
Accounting Standards Update 2018-02 | Cash flow hedge | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Reclassification due to adoption of new accounting pronouncement | $ 0 | |||||||||
|
Accumulated Other Comprehensive Income (Loss) - Details About AOCI Components (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Total before tax | $ (81,436) | $ (93,128) | $ (66,896) | $ (144,276) | ||
Provision (benefit) for income tax | (27,036) | (29,006) | (58,938) | (42,098) | ||
Unrealized gains (losses) on investments | ||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Total before tax | [1] | (83,386) | (94,591) | (72,511) | (147,146) | |
OTTI losses recognized in AOCI | ||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Total before tax | 1,997 | 1,511 | 5,710 | 2,966 | ||
Cash flow hedge | ||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Total before tax | (47) | (48) | (95) | (96) | ||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Total before tax | 0 | 0 | 0 | 0 | ||
Underfunded pension liability | ||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Total before tax | 0 | 0 | 0 | 0 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Total before tax | (81,436) | (93,128) | (66,896) | (144,276) | ||
Provision (benefit) for income tax | 68 | 629 | (2,031) | 142 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (81,368) | (92,499) | (68,927) | (144,134) | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized gains (losses) on investments | ||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Net realized gains (losses) on investments AFS | (52,766) | (81,618) | (35,004) | (128,638) | ||
OTTI on investments transferred to (from) OCI | 2,564 | 1,160 | 5,412 | 8,034 | ||
Reclassification adjustment for investments transferred to equity method | 0 | 0 | 0 | 0 | ||
Total before tax | (83,386) | (94,591) | (72,511) | (147,146) | ||
Provision (benefit) for income tax | 69 | 643 | (1,933) | 169 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (83,317) | (93,948) | (74,444) | (146,977) | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | OTTI losses recognized in AOCI | ||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Net realized gains (losses) on investments AFS | 1,561 | 1,461 | 5,113 | 2,916 | ||
OTTI on investments transferred to (from) OCI | 436 | 50 | 597 | 50 | ||
Total before tax | 1,997 | 1,511 | 5,710 | 2,966 | ||
Provision (benefit) for income tax | (1) | (14) | (98) | (27) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 1,996 | 1,497 | 5,612 | 2,939 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Cash flow hedge | ||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Total before tax | (47) | (48) | (95) | (96) | ||
Provision (benefit) for income tax | 0 | 0 | 0 | 0 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (47) | (48) | (95) | (96) | ||
Life Funds Withheld Assets | ||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||||
OTTI on investments transferred to (from) OCI | 0 | 0 | (1,203) | 0 | ||
Life Funds Withheld Assets | Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized gains (losses) on investments | ||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Change in adjustments related to future policy benefit reserves, net of tax | $ (33,184) | $ (14,133) | $ (42,919) | $ (26,542) | ||
|
Guarantor Financial Information Balance Sheet (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
Jun. 30, 2017 |
Dec. 31, 2016 |
|||
---|---|---|---|---|---|---|---|
ASSETS | |||||||
Fixed maturities AFS | $ 29,793,151 | $ 30,928,988 | |||||
Short-term investments, at fair value | 623,113 | 815,481 | |||||
Fixed maturities, trading at fair value | 1,990,344 | 2,006,385 | |||||
Short-term investments, trading at fair value | 5,788 | 14,965 | |||||
Equity securities, at fair value | 644,711 | 713,967 | |||||
Investments in affiliates | 1,904,010 | 1,911,996 | |||||
Other investments | 1,151,706 | 1,163,863 | |||||
Investments | 36,112,823 | 37,555,645 | |||||
Cash and cash equivalents | 2,903,070 | 3,435,954 | |||||
Restricted cash | 127,497 | 157,497 | |||||
Investments in subsidiaries | 0 | 0 | |||||
Accrued investment income | 265,115 | 272,149 | |||||
Deferred acquisition costs and value of business acquired | 1,162,164 | 1,102,474 | |||||
Ceded unearned premiums | 2,807,369 | 2,198,217 | |||||
Premiums receivable | 8,079,074 | 6,934,482 | |||||
Reinsurance balances receivable | 1,293,477 | 930,114 | |||||
Unpaid losses and loss expenses recoverable | 7,209,084 | 7,247,723 | |||||
Receivable from investments sold | 188,781 | 201,515 | |||||
Goodwill and other intangible assets | 2,201,085 | 2,225,751 | |||||
Deferred tax asset | 372,520 | 332,024 | |||||
Amounts due from subsidiaries/parent | 0 | 0 | |||||
Other assets | 863,830 | 842,691 | |||||
Total assets | 63,585,889 | 63,436,236 | |||||
Liabilities: | |||||||
Unpaid losses and loss expenses | 29,181,147 | 29,696,779 | $ 26,822,346 | $ 25,939,571 | |||
Deposit liabilities | 940,557 | 1,042,677 | |||||
Future policy benefit reserves | 3,380,442 | 3,610,926 | |||||
Funds withheld on GreyCastle life retrocession arrangements | 736,092 | 999,219 | |||||
Unearned premiums | 9,539,454 | 8,307,431 | |||||
Notes payable and debt | 3,217,123 | 3,220,769 | |||||
Reinsurance balances payable | 4,071,505 | 3,706,116 | |||||
Payable for investments purchased | 217,797 | 332,989 | |||||
Deferred tax liability | 57,360 | 57,574 | |||||
Amounts due to subsidiaries/parent | 0 | 0 | |||||
Other liabilities | 987,406 | 1,000,436 | |||||
Total liabilities | 52,328,883 | 51,974,916 | |||||
Shareholders' Equity: | |||||||
Shareholders' equity attributable to XL Group Ltd | 9,660,011 | 9,848,317 | |||||
Non-controlling interest in equity of consolidated subsidiaries | 1,596,995 | 1,613,003 | |||||
Total shareholders' equity | 11,257,006 | 11,461,320 | $ 13,102,407 | ||||
Total liabilities and shareholders' equity | 63,585,889 | 63,436,236 | |||||
Consolidating Adjustments and Eliminations | |||||||
ASSETS | |||||||
Fixed maturities AFS | 0 | 0 | |||||
Short-term investments, at fair value | 0 | 0 | |||||
Fixed maturities, trading at fair value | 0 | 0 | |||||
Short-term investments, trading at fair value | 0 | 0 | |||||
Equity securities, at fair value | 0 | 0 | |||||
Investments in affiliates | 0 | 0 | |||||
Other investments | 0 | 0 | |||||
Investments | 0 | 0 | |||||
Cash and cash equivalents | 0 | 0 | |||||
Restricted cash | 0 | 0 | |||||
Investments in subsidiaries | (22,703,729) | (23,197,062) | |||||
Accrued investment income | 0 | 0 | |||||
Deferred acquisition costs and value of business acquired | 0 | 0 | |||||
Ceded unearned premiums | 0 | 0 | |||||
Premiums receivable | 0 | 0 | |||||
Reinsurance balances receivable | 0 | 0 | |||||
Unpaid losses and loss expenses recoverable | 0 | 0 | |||||
Receivable from investments sold | 0 | 0 | |||||
Goodwill and other intangible assets | 0 | 0 | |||||
Deferred tax asset | 0 | 0 | |||||
Amounts due from subsidiaries/parent | (263,733) | (94,277) | |||||
Other assets | 0 | 0 | |||||
Total assets | (22,967,462) | (23,291,339) | |||||
Liabilities: | |||||||
Unpaid losses and loss expenses | 0 | 0 | |||||
Deposit liabilities | 0 | 0 | |||||
Future policy benefit reserves | 0 | 0 | |||||
Funds withheld on GreyCastle life retrocession arrangements | 0 | 0 | |||||
Unearned premiums | 0 | 0 | |||||
Notes payable and debt | 0 | 0 | |||||
Reinsurance balances payable | 0 | 0 | |||||
Payable for investments purchased | 0 | 0 | |||||
Deferred tax liability | 0 | 0 | |||||
Amounts due to subsidiaries/parent | (263,733) | (94,277) | |||||
Other liabilities | 0 | 0 | |||||
Total liabilities | (263,733) | (94,277) | |||||
Shareholders' Equity: | |||||||
Shareholders' equity attributable to XL Group Ltd | (22,703,729) | (23,197,062) | |||||
Non-controlling interest in equity of consolidated subsidiaries | 0 | 0 | |||||
Total shareholders' equity | (22,703,729) | (23,197,062) | |||||
Total liabilities and shareholders' equity | (22,967,462) | (23,291,339) | |||||
XL-Group/XL-Ireland | |||||||
ASSETS | |||||||
Fixed maturities AFS | [1] | 0 | 0 | ||||
Short-term investments, at fair value | [1] | 0 | 0 | ||||
Fixed maturities, trading at fair value | [1] | 0 | 0 | ||||
Short-term investments, trading at fair value | [1] | 0 | 0 | ||||
Equity securities, at fair value | [1] | 0 | 0 | ||||
Investments in affiliates | [1] | 0 | 0 | ||||
Other investments | [1] | 0 | 0 | ||||
Investments | [1] | 0 | 0 | ||||
Cash and cash equivalents | [1] | 3,794 | 3,950 | ||||
Restricted cash | [1] | 0 | 0 | ||||
Investments in subsidiaries | [1] | 9,653,493 | 9,817,979 | ||||
Accrued investment income | [1] | 10 | 11 | ||||
Deferred acquisition costs and value of business acquired | [1] | 0 | 0 | ||||
Ceded unearned premiums | [1] | 0 | 0 | ||||
Premiums receivable | [1] | 0 | 0 | ||||
Reinsurance balances receivable | [1] | 0 | 0 | ||||
Unpaid losses and loss expenses recoverable | [1] | 0 | 0 | ||||
Receivable from investments sold | [1] | 0 | 0 | ||||
Goodwill and other intangible assets | [1] | 0 | 0 | ||||
Deferred tax asset | [1] | 0 | 0 | ||||
Amounts due from subsidiaries/parent | [1] | 29,526 | 32,301 | ||||
Other assets | [1] | 1,468 | 14,541 | ||||
Total assets | [1] | 9,688,291 | 9,868,782 | ||||
Liabilities: | |||||||
Unpaid losses and loss expenses | [1] | 0 | 0 | ||||
Deposit liabilities | [1] | 0 | 0 | ||||
Future policy benefit reserves | [1] | 0 | 0 | ||||
Funds withheld on GreyCastle life retrocession arrangements | [1] | 0 | 0 | ||||
Unearned premiums | [1] | 0 | 0 | ||||
Notes payable and debt | [1] | 0 | 0 | ||||
Reinsurance balances payable | [1] | 0 | 0 | ||||
Payable for investments purchased | [1] | 0 | 0 | ||||
Deferred tax liability | [1] | 0 | 0 | ||||
Amounts due to subsidiaries/parent | [1] | 0 | 0 | ||||
Other liabilities | [1] | 28,280 | 20,465 | ||||
Total liabilities | [1] | 28,280 | 20,465 | ||||
Shareholders' Equity: | |||||||
Shareholders' equity attributable to XL Group Ltd | [1] | 9,660,011 | 9,848,317 | ||||
Non-controlling interest in equity of consolidated subsidiaries | [1] | 0 | 0 | ||||
Total shareholders' equity | [1] | 9,660,011 | 9,848,317 | ||||
Total liabilities and shareholders' equity | [1] | 9,688,291 | 9,868,782 | ||||
XLIT | |||||||
ASSETS | |||||||
Fixed maturities AFS | 425,321 | 528,152 | |||||
Short-term investments, at fair value | 0 | 0 | |||||
Fixed maturities, trading at fair value | 0 | 0 | |||||
Short-term investments, trading at fair value | 0 | 0 | |||||
Equity securities, at fair value | 0 | 0 | |||||
Investments in affiliates | 0 | 0 | |||||
Other investments | 0 | 0 | |||||
Investments | 425,321 | 528,152 | |||||
Cash and cash equivalents | 102,847 | 158,688 | |||||
Restricted cash | 0 | 0 | |||||
Investments in subsidiaries | 13,050,236 | 13,379,083 | |||||
Accrued investment income | 1,927 | 2,436 | |||||
Deferred acquisition costs and value of business acquired | 0 | 0 | |||||
Ceded unearned premiums | 0 | 0 | |||||
Premiums receivable | 0 | 0 | |||||
Reinsurance balances receivable | 0 | 0 | |||||
Unpaid losses and loss expenses recoverable | 0 | 0 | |||||
Receivable from investments sold | 0 | 0 | |||||
Goodwill and other intangible assets | 0 | 0 | |||||
Deferred tax asset | 0 | 0 | |||||
Amounts due from subsidiaries/parent | 234,207 | 0 | |||||
Other assets | 27,164 | 27,244 | |||||
Total assets | 13,841,702 | 14,095,603 | |||||
Liabilities: | |||||||
Unpaid losses and loss expenses | 0 | 0 | |||||
Deposit liabilities | 0 | 0 | |||||
Future policy benefit reserves | 0 | 0 | |||||
Funds withheld on GreyCastle life retrocession arrangements | 0 | 0 | |||||
Unearned premiums | 0 | 0 | |||||
Notes payable and debt | 3,203,462 | 3,220,769 | |||||
Reinsurance balances payable | 0 | 0 | |||||
Payable for investments purchased | 1,135 | 848 | |||||
Deferred tax liability | 0 | 0 | |||||
Amounts due to subsidiaries/parent | 0 | 62,111 | |||||
Other liabilities | 26,691 | 36,975 | |||||
Total liabilities | 3,231,288 | 3,320,703 | |||||
Shareholders' Equity: | |||||||
Shareholders' equity attributable to XL Group Ltd | 9,653,493 | 9,817,979 | |||||
Non-controlling interest in equity of consolidated subsidiaries | 956,921 | 956,921 | |||||
Total shareholders' equity | 10,610,414 | 10,774,900 | |||||
Total liabilities and shareholders' equity | 13,841,702 | 14,095,603 | |||||
Other XL Subsidiaries | |||||||
ASSETS | |||||||
Fixed maturities AFS | 29,367,830 | 30,400,836 | |||||
Short-term investments, at fair value | 623,113 | 815,481 | |||||
Fixed maturities, trading at fair value | 1,990,344 | 2,006,385 | |||||
Short-term investments, trading at fair value | 5,788 | 14,965 | |||||
Equity securities, at fair value | 644,711 | 713,967 | |||||
Investments in affiliates | 1,904,010 | 1,911,996 | |||||
Other investments | 1,151,706 | 1,163,863 | |||||
Investments | 35,687,502 | 37,027,493 | |||||
Cash and cash equivalents | 2,796,429 | 3,273,316 | |||||
Restricted cash | 127,497 | 157,497 | |||||
Investments in subsidiaries | 0 | 0 | |||||
Accrued investment income | 263,178 | 269,702 | |||||
Deferred acquisition costs and value of business acquired | 1,162,164 | 1,102,474 | |||||
Ceded unearned premiums | 2,807,369 | 2,198,217 | |||||
Premiums receivable | 8,079,074 | 6,934,482 | |||||
Reinsurance balances receivable | 1,293,477 | 930,114 | |||||
Unpaid losses and loss expenses recoverable | 7,209,084 | 7,247,723 | |||||
Receivable from investments sold | 188,781 | 201,515 | |||||
Goodwill and other intangible assets | 2,201,085 | 2,225,751 | |||||
Deferred tax asset | 372,520 | 332,024 | |||||
Amounts due from subsidiaries/parent | 0 | 61,976 | |||||
Other assets | 835,198 | 800,906 | |||||
Total assets | 63,023,358 | 62,763,190 | |||||
Liabilities: | |||||||
Unpaid losses and loss expenses | 29,181,147 | 29,696,779 | |||||
Deposit liabilities | 940,557 | 1,042,677 | |||||
Future policy benefit reserves | 3,380,442 | 3,610,926 | |||||
Funds withheld on GreyCastle life retrocession arrangements | 736,092 | 999,219 | |||||
Unearned premiums | 9,539,454 | 8,307,431 | |||||
Notes payable and debt | 13,661 | 0 | |||||
Reinsurance balances payable | 4,071,505 | 3,706,116 | |||||
Payable for investments purchased | 216,662 | 332,141 | |||||
Deferred tax liability | 57,360 | 57,574 | |||||
Amounts due to subsidiaries/parent | 263,733 | 32,166 | |||||
Other liabilities | 932,435 | 942,996 | |||||
Total liabilities | 49,333,048 | 48,728,025 | |||||
Shareholders' Equity: | |||||||
Shareholders' equity attributable to XL Group Ltd | 13,050,236 | 13,379,083 | |||||
Non-controlling interest in equity of consolidated subsidiaries | 640,074 | 656,082 | |||||
Total shareholders' equity | 13,690,310 | 14,035,165 | |||||
Total liabilities and shareholders' equity | $ 63,023,358 | $ 62,763,190 | |||||
|
Guarantor Financial Information Income Statement (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|||||||
Revenues: | ||||||||||
Net premiums earned | $ 2,695,169 | $ 2,516,917 | $ 5,295,457 | $ 5,039,708 | ||||||
Net investment income | 231,788 | 208,674 | 450,269 | 409,206 | ||||||
Total realized investment gains (losses) | 90,805 | 56,628 | 7,450 | 93,914 | ||||||
Net realized and unrealized gains (losses) on derivative instruments | 16,126 | (906) | 20,347 | (7,975) | ||||||
Income (loss) from investment affiliates | 16,548 | 30,818 | 62,217 | 69,079 | ||||||
Fee income and other | 8,304 | 10,225 | 15,021 | 23,886 | ||||||
Total revenues | 3,022,620 | 2,787,760 | 5,837,562 | 5,543,121 | ||||||
Expenses: | ||||||||||
Net losses and loss expenses incurred | 1,721,309 | 1,529,083 | 3,343,315 | 3,112,539 | ||||||
Claims and policy benefits | 10,117 | 7,595 | 20,424 | 14,886 | ||||||
Acquisition costs | 471,491 | 433,584 | 935,318 | 869,453 | [1] | |||||
Operating expenses | 470,508 | 472,778 | 943,071 | 940,816 | ||||||
Foreign exchange (gains) losses | (12,140) | (5,643) | (2,299) | (8,979) | ||||||
Interest expense | 48,686 | 54,018 | 102,231 | 104,729 | ||||||
Total expenses | 2,709,971 | 2,491,415 | 5,342,060 | 5,033,444 | ||||||
Income (loss) before income tax expense and income (loss) from operating affiliate | 312,649 | 296,345 | 495,502 | 509,677 | ||||||
Income (loss) from operating affiliates | 51,187 | 42,704 | 61,469 | 56,313 | ||||||
Equity in net earnings (losses) of subsidiaries | 0 | 0 | 0 | 0 | ||||||
Provision (benefit) for income tax | 27,036 | 29,006 | 58,938 | 42,098 | ||||||
Net income (loss) | 336,800 | 310,043 | 498,033 | 523,892 | ||||||
Non-controlling interests | 17,804 | 8,423 | 26,389 | 69,429 | ||||||
Net income (loss) attributable to common shareholders | 318,996 | 301,620 | 471,644 | 454,463 | ||||||
Comprehensive income (loss) | 58,005 | 377,811 | (148,570) | 660,082 | ||||||
Life Funds Withheld Assets | ||||||||||
Revenues: | ||||||||||
Net investment income | 30,252 | 31,439 | 60,650 | 64,803 | ||||||
Net realized and unrealized gains (losses) on derivative instruments | (36,120) | (34,596) | (13,199) | (84,697) | ||||||
Consolidating Adjustments and Eliminations | ||||||||||
Revenues: | ||||||||||
Net premiums earned | 0 | 0 | 0 | 0 | ||||||
Net investment income | 0 | (10) | 0 | (94) | ||||||
Total realized investment gains (losses) | 0 | 0 | 0 | 0 | ||||||
Net realized and unrealized gains (losses) on derivative instruments | 0 | 0 | 0 | 0 | ||||||
Income (loss) from investment affiliates | 0 | 0 | 0 | 0 | ||||||
Fee income and other | 0 | 0 | 0 | 0 | ||||||
Total revenues | 0 | (10) | 0 | (94) | ||||||
Expenses: | ||||||||||
Net losses and loss expenses incurred | 0 | 0 | 0 | 0 | ||||||
Claims and policy benefits | 0 | 0 | 0 | 0 | ||||||
Acquisition costs | 0 | 0 | 0 | 0 | ||||||
Operating expenses | 0 | 0 | 0 | 0 | ||||||
Foreign exchange (gains) losses | 0 | 0 | 0 | 0 | ||||||
Interest expense | 0 | 0 | 0 | 0 | ||||||
Total expenses | 0 | 0 | 0 | 0 | ||||||
Income (loss) before income tax expense and income (loss) from operating affiliate | 0 | (10) | 0 | (94) | ||||||
Income (loss) from operating affiliates | 0 | 0 | 0 | 0 | ||||||
Equity in net earnings (losses) of subsidiaries | (692,890) | (692,776) | (1,111,936) | (1,101,418) | ||||||
Provision (benefit) for income tax | 0 | 0 | 0 | 0 | ||||||
Net income (loss) | (692,890) | (692,786) | (1,111,936) | (1,101,512) | ||||||
Non-controlling interests | 0 | (10) | 0 | (94) | ||||||
Net income (loss) attributable to common shareholders | (692,890) | (692,776) | (1,111,936) | (1,101,418) | ||||||
Comprehensive income (loss) | (170,908) | (845,158) | 128,492 | (1,512,656) | ||||||
Consolidating Adjustments and Eliminations | Life Funds Withheld Assets | ||||||||||
Revenues: | ||||||||||
Net realized and unrealized gains (losses) on derivative instruments | 0 | 0 | 0 | 0 | ||||||
XL-Group/XL-Ireland | ||||||||||
Revenues: | ||||||||||
Net premiums earned | [2] | 0 | 0 | 0 | 0 | |||||
Net investment income | [2] | 39 | 10 | 47 | 94 | |||||
Total realized investment gains (losses) | [2] | 0 | 0 | 0 | 0 | |||||
Net realized and unrealized gains (losses) on derivative instruments | [2] | 0 | 0 | 0 | 0 | |||||
Income (loss) from investment affiliates | [2] | 0 | 0 | 0 | 0 | |||||
Fee income and other | [2] | 0 | 0 | 4 | 0 | |||||
Total revenues | [2] | 39 | 10 | 51 | 94 | |||||
Expenses: | ||||||||||
Net losses and loss expenses incurred | [2] | 0 | 0 | 0 | 0 | |||||
Claims and policy benefits | [2] | 0 | 0 | 0 | 0 | |||||
Acquisition costs | [2] | 0 | 0 | 0 | 0 | |||||
Operating expenses | [2] | 5,765 | 27,389 | 36,627 | 43,570 | |||||
Foreign exchange (gains) losses | [2] | (2,183) | 936 | (913) | 1,112 | |||||
Interest expense | [2] | 0 | 0 | 0 | 0 | |||||
Total expenses | [2] | 3,582 | 28,325 | 35,714 | 44,682 | |||||
Income (loss) before income tax expense and income (loss) from operating affiliate | [2] | (3,543) | (28,315) | (35,663) | (44,588) | |||||
Income (loss) from operating affiliates | [2] | 0 | 0 | 0 | 0 | |||||
Equity in net earnings (losses) of subsidiaries | [2] | 322,628 | 329,935 | 507,396 | 499,051 | |||||
Provision (benefit) for income tax | [2] | 89 | 0 | 89 | 0 | |||||
Net income (loss) | [2] | 318,996 | 301,620 | 471,644 | 454,463 | |||||
Non-controlling interests | [2] | 0 | 0 | 0 | 0 | |||||
Net income (loss) attributable to common shareholders | [2] | 318,996 | 301,620 | 471,644 | 454,463 | |||||
Comprehensive income (loss) | [2] | 58,005 | 377,811 | (148,570) | 660,082 | |||||
XL-Group/XL-Ireland | Life Funds Withheld Assets | ||||||||||
Revenues: | ||||||||||
Net realized and unrealized gains (losses) on derivative instruments | [2] | 0 | 0 | 0 | 0 | |||||
XLIT | ||||||||||
Revenues: | ||||||||||
Net premiums earned | 0 | 0 | 0 | 0 | ||||||
Net investment income | 3,565 | 2,103 | 6,852 | 4,416 | ||||||
Total realized investment gains (losses) | (689) | 1,446 | (2,275) | 669 | ||||||
Net realized and unrealized gains (losses) on derivative instruments | 0 | 0 | 0 | 0 | ||||||
Income (loss) from investment affiliates | 0 | 0 | 0 | 0 | ||||||
Fee income and other | 0 | 0 | 0 | 0 | ||||||
Total revenues | 2,876 | 3,549 | 4,577 | 5,085 | ||||||
Expenses: | ||||||||||
Net losses and loss expenses incurred | 0 | 0 | 0 | 0 | ||||||
Claims and policy benefits | 0 | 0 | 0 | 0 | ||||||
Acquisition costs | 0 | 0 | 0 | 0 | ||||||
Operating expenses | 945 | 1,152 | 1,787 | 1,661 | ||||||
Foreign exchange (gains) losses | (1,114) | 26 | (604) | 27 | ||||||
Interest expense | 40,206 | 35,277 | 80,245 | 70,424 | ||||||
Total expenses | 40,037 | 36,455 | 81,428 | 72,112 | ||||||
Income (loss) before income tax expense and income (loss) from operating affiliate | (37,161) | (32,906) | (76,851) | (67,027) | ||||||
Income (loss) from operating affiliates | 0 | 0 | 0 | 0 | ||||||
Equity in net earnings (losses) of subsidiaries | 370,262 | 362,841 | 604,540 | 602,367 | ||||||
Provision (benefit) for income tax | 0 | 0 | 0 | 0 | ||||||
Net income (loss) | 333,101 | 329,935 | 527,689 | 535,340 | ||||||
Non-controlling interests | 10,473 | 0 | 20,293 | 36,289 | ||||||
Net income (loss) attributable to common shareholders | 322,628 | 329,935 | 507,396 | 499,051 | ||||||
Comprehensive income (loss) | 61,637 | 406,126 | (112,818) | 704,670 | ||||||
XLIT | Life Funds Withheld Assets | ||||||||||
Revenues: | ||||||||||
Net realized and unrealized gains (losses) on derivative instruments | 0 | 0 | 0 | 0 | ||||||
Other XL Subsidiaries | ||||||||||
Revenues: | ||||||||||
Net premiums earned | 2,695,169 | 2,516,917 | 5,295,457 | 5,039,708 | ||||||
Net investment income | 228,184 | 206,571 | 443,370 | 404,790 | ||||||
Total realized investment gains (losses) | 91,494 | 55,182 | 9,725 | 93,245 | ||||||
Net realized and unrealized gains (losses) on derivative instruments | 16,126 | (906) | 20,347 | (7,975) | ||||||
Income (loss) from investment affiliates | 16,548 | 30,818 | 62,217 | 69,079 | ||||||
Fee income and other | 8,304 | 10,225 | 15,017 | 23,886 | ||||||
Total revenues | 3,019,705 | 2,784,211 | 5,832,934 | 5,538,036 | ||||||
Expenses: | ||||||||||
Net losses and loss expenses incurred | 1,721,309 | 1,529,083 | 3,343,315 | 3,112,539 | ||||||
Claims and policy benefits | 10,117 | 7,595 | 20,424 | 14,886 | ||||||
Acquisition costs | 471,491 | 433,584 | 935,318 | 869,453 | ||||||
Operating expenses | 463,798 | 444,237 | 904,657 | 895,585 | ||||||
Foreign exchange (gains) losses | (8,843) | (6,605) | (782) | (10,118) | ||||||
Interest expense | 8,480 | 18,741 | 21,986 | 34,305 | ||||||
Total expenses | 2,666,352 | 2,426,635 | 5,224,918 | 4,916,650 | ||||||
Income (loss) before income tax expense and income (loss) from operating affiliate | 353,353 | 357,576 | 608,016 | 621,386 | ||||||
Income (loss) from operating affiliates | 51,187 | 42,704 | 61,469 | 56,313 | ||||||
Equity in net earnings (losses) of subsidiaries | 0 | 0 | 0 | 0 | ||||||
Provision (benefit) for income tax | 26,947 | 29,006 | 58,849 | 42,098 | ||||||
Net income (loss) | 377,593 | 371,274 | 610,636 | 635,601 | ||||||
Non-controlling interests | 7,331 | 8,433 | 6,096 | 33,234 | ||||||
Net income (loss) attributable to common shareholders | 370,262 | 362,841 | 604,540 | 602,367 | ||||||
Comprehensive income (loss) | 109,271 | 439,032 | (15,674) | 807,986 | ||||||
Other XL Subsidiaries | Life Funds Withheld Assets | ||||||||||
Revenues: | ||||||||||
Net realized and unrealized gains (losses) on derivative instruments | $ (36,120) | $ (34,596) | $ (13,199) | $ (84,697) | ||||||
|
Guarantor Financial Information Cash Flows (Details) - USD ($) $ in Thousands |
6 Months Ended | ||||
---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
||||
Cash flows provided by (used in) operating activities: | |||||
Net cash provided by (used in) operating activities | $ (611,617) | $ (121,942) | |||
Cash flows provided by (used in) investing activities: | |||||
Proceeds from sale of fixed maturities and short-term investments | 7,431,308 | 6,387,610 | |||
Proceeds from redemption of fixed maturities and short-term investments | 1,440,191 | 2,084,182 | |||
Proceeds from sale of equity securities | 84,068 | 228,914 | |||
Purchases of fixed maturities and short term investments | (8,781,847) | (8,719,024) | |||
Purchases of equity securities | (44,954) | (277,329) | |||
Proceeds from sale of affiliates | 302,199 | 236,861 | |||
Purchases of affiliates | (103,222) | (51,891) | |||
Returns of capital from subsidiaries | 0 | 0 | |||
Other, net | (29,985) | 5,127 | |||
Net cash provided by (used in) investing activities | 297,758 | (105,550) | |||
Cash flows provided by (used in) financing activities: | |||||
Proceeds from issuance of ordinary shares and exercise of stock options | 60,855 | 42,630 | |||
Buybacks of common shares | (2,057) | (450,629) | |||
Employee withholding on share-based compensation | (16,696) | (23,957) | |||
Dividends paid on common shares | (113,726) | (115,589) | |||
Return of capital | 0 | 0 | |||
Distributions to non-controlling interests | (45,094) | (73,708) | |||
Contributions from non-controlling interests | 1,924 | 25 | |||
Proceeds from the issuance of debt | 0 | 558,311 | |||
Contingent consideration paid on business combination | (5,000) | (7,304) | |||
Deposit liabilities | (119,113) | (11,150) | |||
Net cash provided by (used in) financing activities | (238,907) | (81,371) | |||
Effects of exchange rate changes on foreign currency cash | (10,118) | 43,423 | |||
Increase (decrease) in cash, cash equivalents and restricted cash | (562,884) | (265,440) | |||
Cash, cash equivalents and restricted cash - beginning of year | 3,593,451 | 3,580,492 | |||
Cash, cash equivalents and restricted cash - end of period | 3,030,567 | 3,315,052 | |||
Consolidating Adjustments and Eliminations | |||||
Cash flows provided by (used in) operating activities: | |||||
Net cash provided by (used in) operating activities | 0 | (695,987) | |||
Cash flows provided by (used in) investing activities: | |||||
Proceeds from sale of fixed maturities and short-term investments | 0 | 0 | |||
Proceeds from redemption of fixed maturities and short-term investments | 0 | 0 | |||
Proceeds from sale of equity securities | 0 | 0 | |||
Purchases of fixed maturities and short term investments | 0 | 0 | |||
Purchases of equity securities | 0 | 0 | |||
Proceeds from sale of affiliates | 0 | 0 | |||
Purchases of affiliates | 0 | 0 | |||
Returns of capital from subsidiaries | (351,669) | (237,013) | |||
Other, net | 0 | 0 | |||
Net cash provided by (used in) investing activities | (351,669) | (237,013) | |||
Cash flows provided by (used in) financing activities: | |||||
Proceeds from issuance of ordinary shares and exercise of stock options | 0 | 0 | |||
Buybacks of common shares | 0 | 0 | |||
Employee withholding on share-based compensation | 0 | 0 | |||
Dividends paid on common shares | 0 | 695,987 | |||
Return of capital | 351,669 | 237,013 | |||
Distributions to non-controlling interests | 0 | 0 | |||
Contributions from non-controlling interests | 0 | 0 | |||
Proceeds from the issuance of debt | 0 | ||||
Contingent consideration paid on business combination | 0 | 0 | |||
Deposit liabilities | 0 | 0 | |||
Net cash provided by (used in) financing activities | 351,669 | 933,000 | |||
Effects of exchange rate changes on foreign currency cash | 0 | 0 | |||
Increase (decrease) in cash, cash equivalents and restricted cash | 0 | 0 | |||
Cash, cash equivalents and restricted cash - beginning of year | 0 | 0 | |||
Cash, cash equivalents and restricted cash - end of period | 0 | 0 | |||
XL-Group/XL-Ireland | |||||
Cash flows provided by (used in) operating activities: | |||||
Net cash provided by (used in) operating activities | [1] | 3,103 | 286,697 | ||
Cash flows provided by (used in) investing activities: | |||||
Proceeds from sale of fixed maturities and short-term investments | [1] | 0 | 0 | ||
Proceeds from redemption of fixed maturities and short-term investments | [1] | 0 | 0 | ||
Proceeds from sale of equity securities | [1] | 0 | 0 | ||
Purchases of fixed maturities and short term investments | [1] | 0 | 0 | ||
Purchases of equity securities | [1] | 0 | 0 | ||
Proceeds from sale of affiliates | [1] | 0 | 0 | ||
Purchases of affiliates | [1] | 0 | 0 | ||
Returns of capital from subsidiaries | [1] | 51,669 | 237,013 | ||
Other, net | [1] | 0 | 0 | ||
Net cash provided by (used in) investing activities | [1] | 51,669 | 237,013 | ||
Cash flows provided by (used in) financing activities: | |||||
Proceeds from issuance of ordinary shares and exercise of stock options | [1] | 60,855 | 42,630 | ||
Buybacks of common shares | [1] | (2,057) | (450,629) | ||
Employee withholding on share-based compensation | [1] | 0 | 0 | ||
Dividends paid on common shares | [1] | (113,726) | (115,589) | ||
Return of capital | [1] | 0 | 0 | ||
Distributions to non-controlling interests | [1] | 0 | 0 | ||
Contributions from non-controlling interests | [1] | 0 | 0 | ||
Proceeds from the issuance of debt | [1] | 0 | |||
Contingent consideration paid on business combination | 0 | 0 | |||
Deposit liabilities | [1] | 0 | 0 | ||
Net cash provided by (used in) financing activities | [1] | (54,928) | (523,588) | ||
Effects of exchange rate changes on foreign currency cash | [1] | 0 | 0 | ||
Increase (decrease) in cash, cash equivalents and restricted cash | [1] | (156) | 122 | ||
Cash, cash equivalents and restricted cash - beginning of year | [1] | 3,950 | 1,022 | ||
Cash, cash equivalents and restricted cash - end of period | [1] | 3,794 | 1,144 | ||
XLIT | |||||
Cash flows provided by (used in) operating activities: | |||||
Net cash provided by (used in) operating activities | (377,105) | 332,788 | |||
Cash flows provided by (used in) investing activities: | |||||
Proceeds from sale of fixed maturities and short-term investments | 162,290 | 81,662 | |||
Proceeds from redemption of fixed maturities and short-term investments | 58,759 | 82,392 | |||
Proceeds from sale of equity securities | 0 | 677 | |||
Purchases of fixed maturities and short term investments | (127,823) | (143,851) | |||
Purchases of equity securities | 0 | 0 | |||
Proceeds from sale of affiliates | 0 | 0 | |||
Purchases of affiliates | 0 | 0 | |||
Returns of capital from subsidiaries | 300,000 | 0 | |||
Other, net | 0 | 0 | |||
Net cash provided by (used in) investing activities | 393,226 | 20,880 | |||
Cash flows provided by (used in) financing activities: | |||||
Proceeds from issuance of ordinary shares and exercise of stock options | 0 | 0 | |||
Buybacks of common shares | 0 | 0 | |||
Employee withholding on share-based compensation | 0 | 0 | |||
Dividends paid on common shares | 0 | (295,987) | |||
Return of capital | (51,669) | (237,013) | |||
Distributions to non-controlling interests | (20,293) | (39,867) | |||
Contributions from non-controlling interests | 0 | 0 | |||
Proceeds from the issuance of debt | 558,311 | ||||
Contingent consideration paid on business combination | 0 | 0 | |||
Deposit liabilities | 0 | 0 | |||
Net cash provided by (used in) financing activities | (71,962) | (14,556) | |||
Effects of exchange rate changes on foreign currency cash | 0 | 0 | |||
Increase (decrease) in cash, cash equivalents and restricted cash | (55,841) | 339,112 | |||
Cash, cash equivalents and restricted cash - beginning of year | 158,688 | 84,286 | |||
Cash, cash equivalents and restricted cash - end of period | 102,847 | 423,398 | |||
Other XL Subsidiaries | |||||
Cash flows provided by (used in) operating activities: | |||||
Net cash provided by (used in) operating activities | (237,615) | (45,440) | |||
Cash flows provided by (used in) investing activities: | |||||
Proceeds from sale of fixed maturities and short-term investments | 7,269,018 | 6,305,948 | |||
Proceeds from redemption of fixed maturities and short-term investments | 1,381,432 | 2,001,790 | |||
Proceeds from sale of equity securities | 84,068 | 228,237 | |||
Purchases of fixed maturities and short term investments | (8,654,024) | (8,575,173) | |||
Purchases of equity securities | (44,954) | (277,329) | |||
Proceeds from sale of affiliates | 302,199 | 236,861 | |||
Purchases of affiliates | (103,222) | (51,891) | |||
Returns of capital from subsidiaries | 0 | 0 | |||
Other, net | (29,985) | 5,127 | |||
Net cash provided by (used in) investing activities | 204,532 | (126,430) | |||
Cash flows provided by (used in) financing activities: | |||||
Proceeds from issuance of ordinary shares and exercise of stock options | 0 | 0 | |||
Buybacks of common shares | 0 | 0 | |||
Employee withholding on share-based compensation | (16,696) | (23,957) | |||
Dividends paid on common shares | 0 | (400,000) | |||
Return of capital | (300,000) | 0 | |||
Distributions to non-controlling interests | (24,801) | (33,841) | |||
Contributions from non-controlling interests | 1,924 | 25 | |||
Proceeds from the issuance of debt | 0 | ||||
Contingent consideration paid on business combination | (5,000) | (7,304) | |||
Deposit liabilities | (119,113) | (11,150) | |||
Net cash provided by (used in) financing activities | (463,686) | (476,227) | |||
Effects of exchange rate changes on foreign currency cash | (10,118) | 43,423 | |||
Increase (decrease) in cash, cash equivalents and restricted cash | (506,887) | (604,674) | |||
Cash, cash equivalents and restricted cash - beginning of year | 3,430,813 | 3,495,184 | |||
Cash, cash equivalents and restricted cash - end of period | $ 2,923,926 | $ 2,890,510 | |||
|
Guarantor Financial Information Narrative (Details) |
6 Months Ended |
---|---|
Jun. 30, 2018 | |
Condensed Financial Statements, Captions [Line Items] | |
Percentage ownership of subsidiaries | 100.00% |
XL Group Ltd [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Percentage ownership of subsidiaries | 100.00% |
XL Cayman [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Percentage ownership of subsidiaries | 100.00% |
Label | Element | Value |
---|---|---|
Accounting Standards Update 2016-01 [Member] | AOCI Attributable to Parent [Member] | ||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Reclassification Out of AOCI | xlgroup_NewAccountingPronouncementorChangeinAccountingPrincipleEffectofAdoptionReclassificationOutofAOCI | $ 0 |
Accounting Standards Update 2016-01 [Member] | Retained Earnings [Member] | ||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Reclassification Out of AOCI | xlgroup_NewAccountingPronouncementorChangeinAccountingPrincipleEffectofAdoptionReclassificationOutofAOCI | 0 |
Accounting Standards Update 2018-02 [Member] | Retained Earnings [Member] | ||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Reclassification Out of AOCI | xlgroup_NewAccountingPronouncementorChangeinAccountingPrincipleEffectofAdoptionReclassificationOutofAOCI | $ 0 |
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