Noncontrolling interests

12 Months Ended

Dec. 31, 2014

Noncontrolling Interest Disclosure [Text Block]

13. 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. Lorenz Re is a segregated cell company under the laws of Bermuda. The original business was written by the Company and was ceded to Lorenz Re effective April 1, 2013.

Within Lorenz Re, distinct segregated accounts are formed, and capitalized, in order to enter into reinsurance agreements with the Company on a fully collateralized basis. In 2013, Lorenz Re issued non-voting redeemable preferred share capital on behalf of two segregated accounts which are redeemable at the option of the Company and are expected to be redeemed following the commutation of the portfolio back to the Company on or before June 1, 2016.

At December 31, 2014 and 2013, the total assets of Lorenz Re were $100.8 million and $99.6 million, respectively, primarily consisting of cash and investments. At December 31, 2014 and 2013, the total liabilities were $13.1 million and $11.1 million, respectively, primarily consisting of unearned premiums, unpaid losses and loss expenses and other reinsurance balances payable. 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 years ended December 31, 2014 and 2013 was as follows (in thousands of U.S. dollars):



	2014			2013
Balance at January 1	$	56,627		$	—
Net income attributable to noncontrolling interests	13,139			9,434
Distribution to noncontrolling interests	(14,265		)	—
Sale of shares to noncontrolling interests	—			47,193
Balance at December 31	$	55,501		$	56,627

- 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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