Noncontrolling interests

9 Months Ended

Sep. 30, 2014

Noncontrolling Interest Disclosure [Text Block]

7. Noncontrolling Interests

In March 2013, the Company formed with other third party investors, Lorenz Re Ltd. (Lorenz Re), a Bermuda domiciled special purpose insurer to provide additional capacity to the Company for a diversified portfolio of catastrophe reinsurance treaties over a multi-year period on a fully collateralized reinsurance basis. The original business was written by the Company and was ceded to Lorenz Re effective April 1, 2013.

Lorenz Re’s non-voting redeemable preferred share capital is redeemable at the option of the Company and is expected to be redeemed following the commutation of the portfolio back to the Company on or before June 1, 2016.

At September 30, 2014 and December 31, 2013, the total assets of Lorenz Re were $101.8 million and $99.6 million, respectively, primarily consisting of cash and investments. At September 30, 2014 and December 31, 2013, the total liabilities were $19.4 million and $11.1 million, respectively, primarily consisting of unearned premiums and unpaid losses and loss expenses. The assets of Lorenz Re can only be used to settle the liabilities of Lorenz Re and there is no recourse to the Company for any liabilities of Lorenz Re.

The reconciliation of the beginning and ending balance of the noncontrolling interests in Lorenz Re for the nine months ended September 30, 2014 and 2013 was as follows (in thousands of U.S. dollars):



	For the nine months ended
	September 30, 2014			September 30, 2013
Balance at beginning of period	$	56,627		$	—
Net income attributable to noncontrolling interests	9,914			5,296
Distribution to noncontrolling interests	(14,265		)	—
Sale of shares to noncontrolling interests	—			47,193
Balance at end of period	$	52,276		$	52,489

- Definition

The entire disclosure for noncontrolling interest in consolidated subsidiaries, which could include the name of the subsidiary, the ownership percentage held by the parent, the ownership percentage held by the noncontrolling owners, the amount of the noncontrolling interest, the location of this amount on the balance sheet (when not reported separately), an explanation of the increase or decrease in the amount of the noncontrolling interest, the noncontrolling interest share of the net Income or Loss of the subsidiary, the location of this amount on the income statement (when not reported separately), the nature of the noncontrolling interest such as background information and terms, the amount of the noncontrolling interest represented by preferred stock, a description of the preferred stock, and the dividend requirements of the preferred stock.

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