Investments (Tables)

12 Months Ended

Dec. 31, 2013

Fixed Maturities, Short-Term Investments and Equities

						Gross		Gross
						Unrealized		Unrealized		Fair
December 31, 2013			Cost ⁽¹⁾		Gains		Losses		Value

Fixed maturities
	U.S. government and government sponsored enterprises		$	1,635,578	$	7,211	$	(18,930)	$	1,623,859
	U.S. states, territories and municipalities			121,697		4,395		(1,505)		124,587
	Non-U.S. sovereign government, supranational and
		government related		2,295,608		67,453		(9,362)		2,353,699
	Corporate			5,866,991		243,522		(61,850)		6,048,663
	Asset-backed securities			1,126,812		15,232		(3,813)		1,138,231
	Residential mortgage-backed securities			2,294,870		31,810		(58,163)		2,268,517
	Other mortgage-backed securities			34,899		1,590		(742)		35,747

Fixed maturities				13,376,455		371,213		(154,365)		13,593,303
Short-term investments				13,543		4		(1)		13,546
Equities				1,009,286		250,288		(38,521)		1,221,053

Total			$	14,399,284	$	621,505	$	(192,887)	$	14,827,902

						Gross		Gross
						Unrealized		Unrealized		Fair
December 31, 2012			Cost ⁽¹⁾		Gains		Losses		Value
Fixed maturities
	U.S. government and government sponsored enterprises		$	1,108,513	$	23,173	$	(762)	$	1,130,924
	U.S. states, territories and municipalities			232,433		11,057		(104)		243,386
	Non-U.S. sovereign government, supranational and
		government related		2,221,272		155,144		(743)		2,375,673
	Corporate			6,197,594		463,221		(4,977)		6,655,838
	Asset-backed securities			701,264		23,972		(1,766)		723,470
	Residential mortgage-backed securities			3,128,618		118,988		(47,682)		3,199,924
	Other mortgage-backed securities			63,921		2,850		(671)		66,100

Fixed maturities				13,653,615		798,405		(56,705)		14,395,315
Short-term investments				150,634		9		(91)		150,552
Equities				1,000,326		115,351		(21,675)		1,094,002

Total			$	14,804,575	$	913,765	$	(78,471)	$	15,639,869
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(1) Cost is amortized cost for fixed maturities and short-term investments and cost for equity securities.

Maturity Distribution of Fixed Maturities and Short-Term Investments

(b) Maturity Distribution of Fixed Maturities and Short-Term Investments

The distribution of fixed maturities and short-term investments at December 31, 2013, by contractual maturity date, is shown below (in thousands of U.S. dollars). Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations with or without call or prepayment penalties.

		Cost		Fair Value

One year or less	$	373,899	$	377,568
More than one year through five years		4,915,255		5,056,690
More than five years through ten years		3,920,421		3,961,736
More than ten years		723,842		768,360

Subtotal		9,933,417		10,164,354
Mortgage/asset-backed securities		3,456,581		3,442,495

Total	$	13,389,998	$	13,606,849

Net Realized and Unrealized Investment (Losses) Gains

c) Net Realized and Unrealized Investment (Losses) Gains

The components of the net realized and unrealized investment (losses) gains for the years ended December 31, 2013, 2012 and 2011 were as follows (in thousands of U.S. dollars):

		2013		2012		2011

Net realized investment gains on fixed maturities and short-term investments	$	118,575	$	172,987	$	157,207
Net realized investment gains on equities		75,217		72,155		90,866
Net realized gains (losses) on other invested assets		20,497		(16,691)		(176,295)
Change in net unrealized gains (losses) on other invested assets		56,652		(9,568)		(46,278)
Change in net unrealized investment (losses) gains on fixed maturities and short-term investments		(525,787)		186,063		128,224
Change in net unrealized investment gains (losses) on equities		118,010		66,253		(101,860)
Net other realized and unrealized investment (losses) gains		(2,107)		5,843		3,617
Net realized and unrealized investment (losses) gains on funds held – directly managed		(21,792)		16,367		11,211

Total net realized and unrealized investment (losses) gains	$	(160,735)	$	493,409	$	66,692

Net investment income Note 4

		2013		2012		2011

Fixed maturities	$	446,299	$	512,833	$	561,576
Short-term investments, cash and cash equivalents		1,886		2,905		3,843
Equities		32,989		26,207		19,815
Funds held and other		34,215		44,109		49,502
Funds held – directly managed		20,502		29,031		37,919
Investment expenses		(51,524)		(43,747)		(43,507)

Net investment income	$	484,367	$	571,338	$	629,148

Net Receivable (Payable) for Securities Sold/Purchased

		2013		2012

Receivable for securities sold	$	150,816	$	22,133
Payable for securities purchased		(60,153)		(32,944)

Net receivable (payable) for securities sold/purchased	$	90,663	$	(10,811)

- Definition

Tabular disclosure of the realized and unrealized gains and losses reported in the statement of income which have resulted from the sale and holding of marketable securities, respectively, as well as the sale or disposal of cost method investments. Such amounts would include realized gains and losses on the sale or disposal of trading, available-for-sale, and held-to-maturity securities, unrealized gains and losses on trading securities, unrealized gains and losses on available-for-sale and held-to-maturity securities transferred to the trading securities category, realized gains and losses on the sale or disposal of cost method investments, and losses recognized for other than temporary impairments (OTTI) of such investments.

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- Definition

Tabular disclosure of investment income, including, but not limited to, interest and dividend income and amortization of discount (premium) derived from debt and equity securities. Excludes realized and unrealized gain (loss) on investments.

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- Definition

Tabular disclosure of investments in trading securities.

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