Fair Value (Tables)

6 Months Ended

Jun. 30, 2013

Fair Value Disclosures [Abstract]

Fair value hierarchy

The following table presents the Company’s financial assets and liabilities measured at fair value by level at June 30, 2013:

			Fair Value Measurement Using:
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets measured at fair value:
Available for sale securities:
Fixed maturities and fixed maturities pledged under securities lending agreements (1):
Corporate bonds	$	2,473,130	$	—	$	2,470,770	$	2,360
Mortgage backed securities	1,592,207		—		1,592,207		—
Municipal bonds	1,507,924		—		1,507,924		—
Commercial mortgage backed securities	838,471		—		838,471		—
U.S. government and government agencies	975,345		975,345		—		—
Non-U.S. government securities	1,002,989		—		1,002,989		—
Asset backed securities	1,225,183		—		1,225,183		—
Total	9,615,249		975,345		8,637,544		2,360
Equity securities	438,038		437,278		760		—
Other investments	569,407		—		379,514		189,893
Short-term investments	1,094,129		1,062,472		31,657		—
Fair value option:
Investments accounted for using the fair value option:
Corporate bonds	293,976		—		293,976		—
Non-U.S. government bonds	59,334		—		59,334		—
Other investments	712,374		—		422,185		290,189
Equity securities	—		—		—		—
Total	1,065,684		—		775,495		290,189
Total assets measured at fair value	$	12,782,507	$	2,475,095	$	9,824,970	$	482,442
Liabilities measured at fair value:
Fair value option:
Securities sold but not yet purchased (2)	$	—	$	—	$	—	$	—
Total liabilities measured at fair value	$	—	$	—	$	—	$	—

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(1) In securities lending transactions, the Company receives collateral in excess of the fair value of the fixed maturities and short-term investments pledged. For purposes of this table, the Company has excluded the collateral received and reinvested and included the fixed maturities and short-term investments pledged.

(2) Represents the Company’s obligation to deliver securities that it did not own at the time of sale. Such amounts are included in “other liabilities” on the Company’s consolidated balance sheets.

The following table presents the Company’s financial assets and liabilities measured at fair value by level at December 31, 2012:

			Fair Value Measurement Using:
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets measured at fair value:
Available for sale securities:
Fixed maturities and fixed maturities pledged under securities lending agreements (1):
Corporate bonds	$	2,857,513	$	—	$	2,759,109	$	98,404
Mortgage backed securities	1,532,736		—		1,532,736		—
Municipal bonds	1,463,586		—		1,463,586		—
Commercial mortgage backed securities	824,165		—		824,165		—
U.S. government and government agencies	1,131,688		1,131,688		—		—
Non-U.S. government securities	998,901		—		998,901		—
Asset backed securities	1,073,999		—		1,073,999		—
Total	9,882,588		1,131,688		8,652,496		98,404
Equity securities	312,749		312,666		83		—
Other investments	549,280		—		365,078		184,202
Short-term investments	730,369		678,441		51,928		—
Fair value option:
Investments accounted for using the fair value option:
Corporate bonds	275,132		—		275,132		—
Non-U.S. government bonds	88,409		—		88,409		—
Other investments	527,971		—		332,621		195,350
Equity securities	25,954		25,954		—		—
Total	917,466		25,954		696,162		195,350
Total assets measured at fair value	$	12,392,452	$	2,148,749	$	9,765,747	$	477,956
Liabilities measured at fair value:
Fair value option:
Securities sold but not yet purchased (2)	$	6,924	$	6,924	$	—	$	—
Total liabilities measured at fair value	$	6,924	$	6,924	$	—	$	—

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(1) In securities lending transactions, the Company receives collateral in excess of the fair value of the fixed maturities and short-term investments pledged. For purposes of this table, the Company has excluded the collateral received and reinvested and included the fixed maturities and short-term investments pledged.

(2) Represents the Company’s obligation to deliver securities that it did not own at the time of sale. Such amounts are included in “other liabilities” on the Company’s consolidated balance sheets.

Rollforward of Level 3 investments

The following tables present a reconciliation of the beginning and ending balances for all investments measured at fair value on a recurring basis using Level 3 inputs:

	Fair Value Measurements Using: Significant Unobservable Inputs (Level 3)
s	Available-For-Sale					Fair Value Option
	Corporate Bonds			Other Investments		Other Investments			Total
Three Months Ended June 30, 2013
Balance at beginning of period	$	97,298		$	185,934	$	179,370		$	462,602
Total gains or (losses) (realized/unrealized)
Included in earnings (1)	3,187			—		(2,075		)	1,112
Included in other comprehensive income	(1,363		)	3,959		—			2,596
Purchases, issuances, sales and settlements
Purchases	—			—		118,916			118,916
Issuances	—			—		—			—
Sales	(96,655		)	—		—			(96,655		)
Settlements	(107		)	—		(6,022		)	(6,129		)
Transfers in and/or out of Level 3	—			—		—			—
Balance at end of period	$	2,360		$	189,893	$	290,189		$	482,442
Three Months Ended June 30, 2012
Balance at beginning of period	$	96,655		$	6,215	$	—		$	102,870
Total gains or (losses) (realized/unrealized)
Included in earnings (1)	(548		)	—		—			(548		)
Included in other comprehensive income	(4,032		)	171		—			(3,861		)
Purchases, issuances, sales and settlements
Purchases	—			—		—			—
Issuances	—			—		—			—
Sales	—			—		—			—
Settlements	(39		)	—		—			(39		)
Transfers in and/or out of Level 3	—			—		—			—
Balance at end of period	$	92,036		$	6,386	$	—		$	98,422

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(1) Gains or losses on corporate bonds were included in net realized gains (losses) while gains or losses on other investments were recorded in net realized gains (losses) or net investment income.

	Fair Value Measurements Using: Significant Unobservable Inputs (Level 3)
s	Available-For-Sale						Fair Value Option
	Corporate Bonds			Other Investments			Other Investments			Total
Six Months Ended June 30, 2013
Balance at beginning of period	$	98,404		$	184,202		$	195,350		$	477,956
Total gains or (losses) (realized/unrealized)
Included in earnings (1)	4,679			4,762			(1,702		)	7,739
Included in other comprehensive income	(3,051		)	5,871			—			2,820
Purchases, issuances, sales and settlements
Purchases	—			5,000			160,570			165,570
Issuances	—			—			—			—
Sales	(96,655		)	—			—			(96,655		)
Settlements	(1,017		)	(9,942		)	(64,029		)	(74,988		)
Transfers in and/or out of Level 3	—			—			—			—
Balance at end of period	$	2,360		$	189,893		$	290,189		$	482,442
Six Months Ended June 30, 2012
Balance at beginning of period	$	92,091		$	5,124		$	—		$	97,215
Total gains or (losses) (realized/unrealized)
Included in earnings (1)	1,783			81			—			1,864
Included in other comprehensive income	(1,759		)	1,262			—			(497		)
Purchases, issuances, sales and settlements
Purchases	—			—			—			—
Issuances	—			—			—			—
Sales	—			—			—			—
Settlements	(79		)	(81		)	—			(160		)
Transfers in and/or out of Level 3	—			—			—			—
Balance at end of period	$	92,036		$	6,386		$	—		$	98,422

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(1) Gains or losses on corporate bonds were included in net realized gains (losses) while gains or losses on other investments were recorded in net realized gains (losses) or net investment income.