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Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2011

Goodwill And Intangible Assets [Abstract]

8. Goodwill and Intangible Assets

The following tables show the Company's goodwill and intangible assets at December 31, 2011 and 2010 (in thousands of U.S. dollars):

				Definite-		Indefinite-
				lived intangible		lived intangible
2011		Goodwill		assets		asset		Total
Balance at January 1, 2011	$	455,533	$	171,365	$	7,350	$	634,248
Intangible assets amortization		—		(44,848)		—		(44,848)

Balance at December 31, 2011	$	455,533	$	126,517	$	7,350	$	589,400

				Definite-		Indefinite-
				lived intangible		lived intangible
2010		Goodwill		assets		asset		Total
Balance at January 1, 2010	$	455,533	$	239,919	$	7,350	$	702,802
Intangible assets amortization		—		(68,554)		—		(68,554)

Balance at December 31, 2010	$	455,533	$	171,365	$	7,350	$	634,248

Intangible asset amortization during the years ended December 31, 2011, 2010 and 2009 totaled $44.8 million, $68.6 million and $40.3 million, respectively, of which $8.4 million, $37.1 million and $46.4 million, respectively, is recorded within acquisition costs and $36.4 million, $31.5 million and $(6.1) million, respectively, is recorded within amortization of intangible assets in the Consolidated Statements of Operations. The amounts recorded within acquisition costs in the Consolidated Statements of Operations approximates the amount of Paris Re's deferred acquisition costs that would have been recorded as acquisition costs had they not been fair valued under purchase accounting.

The gross carrying value and accumulated amortization of intangible assets by type at December 31, 2011 and 2010 is as follows (in thousands of U.S. dollars):

		2011				2010
			Gross carrying		Accumulated		Gross carrying		Accumulated
			value		amortization		value		amortization
Definite-lived intangible assets:
	Unpaid losses and loss expenses	$	191,196	$	72,854	$	191,196	$	44,076
	Unearned premiums		56,300		56,300		56,300		51,130
	Renewal rights		32,700		24,525		32,700		13,625

Total definite-lived intangible assets		$	280,196	$	153,679	$	280,196	$	108,831

Indefinite-lived intangible asset:
	U.S. insurance licenses		7,350		—		7,350		—

Total intangible assets		$	287,546	$	153,679	$	287,546	$	108,831

At December 31, 2011 and 2010, the allocation of the goodwill among the Company's segments and sub-segments was as follows (in thousands of U.S. dollars):

			Amount
			Amount
Non-life segment:
	North America	$	82,026
	Global (Non-U.S.) P&C		149,895
	Global (Non-U.S.) Specialty		179,641
	Catastrophe		26,014
Life segment			17,957

Total goodwill		$	455,533

The estimated amortization expense for each of the five succeeding fiscal years related to the Company's definite-lived intangible assets is as follows (in thousands of U.S. dollars):

Period		Amount
2012	$	31,799
2013		19,479
2014		15,950
2015		13,900
2016		12,034

Total	$	93,162

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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