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Reinsurance
 12 Months Ended
Dec. 31, 2013
Disclosure - Reinsurance [Abstract]  
Reinsurance

9. Reinsurance

(a) Reinsurance Recoverable on Paid and Unpaid Losses

The Company uses retrocessional agreements to reduce its exposure to risk of loss on reinsurance assumed. These agreements provide for recovery from retrocessionaires of a portion of losses and loss expenses. The Company remains liable to its cedants to the extent that the retrocessionaires do not meet their obligations under these agreements, and therefore the Company evaluates the financial condition of its reinsurers and monitors concentration of credit risk on an ongoing basis. The Company actively manages its reinsurance exposures by generally selecting retrocessionaires having a credit rating of A- or higher. In certain cases where an otherwise suitable retrocessionaire has a credit rating lower than A-, the Company generally requires the posting of collateral, including escrow funds and letters of credit, as a condition to its entering into a retrocession agreement. The Company regularly reviews its reinsurance recoverable balances to estimate an allowance for uncollectible amounts based on quantitative and qualitative factors. The allowance for uncollectible reinsurance recoverable was $15 million and $13 million at December 31, 2013 and 2012, respectively.

 

(b) Ceded Reinsurance

Net premiums written, net premiums earned and losses and loss expenses and life policy benefits are reported net of reinsurance in the Company's Consolidated Statements of Operations. Assumed, ceded and net amounts for the years ended December 31, 2013, 2012 and 2011 were as follows (in thousands of U.S. dollars):

           Losses and Loss 
   Premiums   Premiums   Expenses and Life 
   Written   Earned   Policy Benefits 
             
2013            
             
Assumed  $5,569,706  $5,373,866  $3,207,860 
Ceded   173,180   175,656   50,052 
             
Net  $5,396,526  $5,198,210  $3,157,808 
             
2012            
             
Assumed  $4,718,235  $4,640,949  $2,838,117 
Ceded   145,375   155,010   33,507 
             
Net  $4,572,860  $4,485,939  $2,804,610 
             
2011            
             
Assumed  $4,633,054  $4,789,293  $4,456,094 
Ceded   146,725   141,539   83,524 
             
Net  $4,486,329  $4,647,754  $4,372,570