XML 20 R54.htm IDEA: XBRL DOCUMENT v2.4.1.9
Guarantor Financial Information (Tables)
12 Months Ended
Dec. 31, 2014
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Condensed consolidating balance sheet
 
December 31, 2014
Condensed Consolidating Balance Sheet
ACGL (Parent Guarantor)
 
Arch-U.S. (Subsidiary Issuer)
 
Other ACGL Subsidiaries
 
Consolidating Adjustments and Eliminations
 
ACGL Consolidated
Assets
 
 
 
 
 
 
 
 
 
Total investments
$
107

 
$
62,867

 
$
15,268,275

 
$

 
$
15,331,249

Cash
3,218

 
2,787

 
479,697

 

 
485,702

Investments in subsidiaries
6,536,644

 
1,685,185

 

 
(8,221,829
)
 

Due from subsidiaries and affiliates
48

 
7,517

 
370,429

 
(377,994
)
 

Premiums receivable

 

 
1,331,511

 
(382,816
)
 
948,695

Reinsurance recoverable on unpaid and paid losses and loss adjustment expenses

 

 
5,584,973

 
(3,772,128
)
 
1,812,845

Contractholder receivables

 

 
1,309,192

 

 
1,309,192

Prepaid reinsurance premiums

 

 
1,373,008

 
(995,930
)
 
377,078

Deferred acquisition costs, net

 

 
414,525

 

 
414,525

Other assets
7,590

 
49,576

 
1,689,670

 
(416,579
)
 
1,330,257

Total assets
$
6,547,607

 
$
1,807,932

 
$
27,821,280

 
$
(14,167,276
)
 
$
22,009,543

 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
Reserve for losses and loss adjustment expenses
$

 
$

 
$
12,784,030

 
$
(3,747,582
)
 
$
9,036,448

Unearned premiums

 

 
3,227,508

 
(995,930
)
 
2,231,578

Reinsurance balances payable

 

 
589,289

 
(369,977
)
 
219,312

Contractholder payables

 

 
1,309,192

 

 
1,309,192

Deposit accounting liabilities

 

 
587,050

 
(259,666
)
 
327,384

Senior notes
300,000

 
500,000

 

 

 
800,000

Revolving credit agreement borrowings
100,000

 

 

 

 
100,000

Due to subsidiaries and affiliates
417

 
7,505

 
370,072

 
(377,994
)
 

Other liabilities
17,137

 
49,403

 
994,741

 
(194,298
)
 
866,983

Total liabilities
417,554

 
556,908

 
19,861,882

 
(5,945,447
)
 
14,890,897

 
 
 
 
 
 
 
 
 
 
Redeemable noncontrolling interests (1)

 

 
219,512

 

 
219,512

 
 
 
 
 
 
 
 
 
 
Shareholders' Equity
 
 
 
 
 
 
 
 
 
Total shareholders' equity available to Arch
6,130,053

 
1,251,024

 
6,970,805

 
(8,221,829
)
 
6,130,053

Non-redeemable noncontrolling interests (1)

 

 
769,081

 

 
769,081

Total shareholders' equity
6,130,053

 
1,251,024

 
7,739,886

 
(8,221,829
)
 
6,899,134

 
 
 
 
 
 
 
 
 
 
Total liabilities, noncontrolling interests and shareholders' equity
$
6,547,607

 
$
1,807,932

 
$
27,821,280

 
$
(14,167,276
)
 
$
22,009,543

(1) See Note 4.

 
December 31, 2013
Condensed Consolidating Balance Sheet
ACGL (Parent Guarantor)
 
Arch-U.S. (Subsidiary Issuer)
 
Other ACGL Subsidiaries
 
Consolidating Adjustments and Eliminations
 
ACGL Consolidated
Assets
 
 
 
 
 
 
 
 
 
Total investments
$
2,530

 
$
408,957

 
$
13,200,247

 
$

 
$
13,611,734

Cash
3,223

 
509

 
430,325

 

 
434,057

Investments in subsidiaries
6,046,060

 
1,258,889

 

 
(7,304,949
)
 

Due from subsidiaries and affiliates
2,251

 

 
405,110

 
(407,361
)
 

Premiums receivable

 

 
1,085,369

 
(331,445
)
 
753,924

Reinsurance recoverable on unpaid and paid losses and loss adjustment expenses

 

 
5,645,156

 
(3,840,826
)
 
1,804,330

Contractholder receivables

 

 
1,064,246

 

 
1,064,246

Prepaid reinsurance premiums

 

 
1,109,312

 
(780,969
)
 
328,343

Deferred acquisition costs, net

 

 
342,314

 

 
342,314

Other assets
6,598

 
60,342

 
1,714,651

 
(554,445
)
 
1,227,146

Total assets
$
6,060,662

 
$
1,728,697

 
$
24,996,730

 
$
(13,219,995
)
 
$
19,566,094

 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
Reserve for losses and loss adjustment expenses
$

 
$

 
$
12,625,766

 
$
(3,801,070
)
 
$
8,824,696

Unearned premiums

 

 
2,677,334

 
(780,969
)
 
1,896,365

Reinsurance balances payable

 

 
662,394

 
(466,227
)
 
196,167

Contractholder payables

 

 
1,064,246

 

 
1,064,246

Deposit accounting liabilities

 

 
758,490

 
(337,193
)
 
421,297

Senior notes
300,000

 
500,000

 

 

 
800,000

Revolving credit agreement borrowings
100,000

 

 

 

 
100,000

Due to subsidiaries and affiliates
18

 
10,250

 
397,093

 
(407,361
)
 

Other liabilities
13,148

 
33,206

 
691,699

 
(122,226
)
 
615,827

Total liabilities
413,166

 
543,456

 
18,877,022

 
(5,915,046
)
 
13,918,598

 
 
 
 
 
 
 
 
 
 
Redeemable noncontrolling interests

 

 

 

 

 
 
 
 
 
 
 
 
 
 
Shareholders' Equity
 
 
 
 
 
 
 
 
 
Total shareholders' equity available to Arch
5,647,496

 
1,185,241

 
6,119,708

 
(7,304,949
)
 
5,647,496

Non-redeemable noncontrolling interests

 

 

 

 

Total shareholders' equity
5,647,496

 
1,185,241

 
6,119,708

 
(7,304,949
)
 
5,647,496

 
 
 
 
 
 
 
 
 
 
Total liabilities, noncontrolling interests and shareholders' equity
$
6,060,662

 
$
1,728,697

 
$
24,996,730

 
$
(13,219,995
)
 
$
19,566,094

Condensed consolidating statement of income and comprehensive income
 
Year Ended December 31, 2014
Condensed Consolidating Statement of Income and Comprehensive Income
ACGL (Parent Guarantor)
 
Arch-U.S. (Subsidiary Issuer)
 
Other ACGL Subsidiaries
 
Consolidating Adjustments and Eliminations
 
ACGL Consolidated
Revenues
 
 
 
 
 
 
 
 
 
Net premiums earned
$

 
$

 
$
3,593,748

 
$

 
$
3,593,748

Net investment income

 

 
326,831

 
(24,246
)
 
302,585

Net realized gains

 
5

 
102,912

 

 
102,917

Net impairment losses recognized in earnings

 

 
(30,150
)
 

 
(30,150
)
Other underwriting income

 

 
10,142

 

 
10,142

Equity in net income of investment funds accounted for using the equity method

 

 
19,883

 

 
19,883

Other income (loss)

 

 
(10,252
)
 

 
(10,252
)
Total revenues

 
5

 
4,013,114

 
(24,246
)
 
3,988,873

 
 
 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
 
 
Losses and loss adjustment expenses

 

 
1,919,250

 

 
1,919,250

Acquisition expenses

 

 
657,262

 

 
657,262

Other operating expenses
46,074

 
3,387

 
556,763

 

 
606,224

Interest expense
23,423

 
25,817

 
20,640

 
(24,246
)
 
45,634

Net foreign exchange gains

 

 
(53,222
)
 
(30,522
)
 
(83,744
)
Total expenses
69,497

 
29,204

 
3,100,693

 
(54,768
)
 
3,144,626

 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
(69,497
)
 
(29,199
)
 
912,421

 
30,522

 
844,247

Income tax benefit (expense)

 
10,125

 
(33,112
)
 

 
(22,987
)
Income (loss) before equity in net income of subsidiaries
(69,497
)
 
(19,074
)
 
879,309

 
30,522

 
821,260

Equity in net income of subsidiaries
903,852

 
53,584

 

 
(957,436
)
 

Net income
834,355

 
34,510

 
879,309

 
(926,914
)
 
821,260

Amounts attributable to noncontrolling interests (1)

 

 
13,095

 

 
13,095

Net income available to Arch
834,355

 
34,510

 
892,404

 
(926,914
)
 
834,355

Preferred dividends
(21,938
)
 

 

 

 
(21,938
)
Net income available to Arch common shareholders
$
812,417

 
$
34,510

 
$
892,404

 
$
(926,914
)
 
$
812,417

 
 
 
 
 
 
 
 
 
 
Comprehensive income available to Arch
$
888,247

 
$
33,671

 
$
976,821

 
$
(1,010,492
)
 
$
888,247

(1) See Note 4.
 
Year Ended December 31, 2013
Condensed Consolidating Statement of Income and Comprehensive Income
ACGL (Parent Guarantor)
 
Arch-U.S. (Subsidiary Issuer)
 
Other ACGL Subsidiaries
 
Consolidating Adjustments and Eliminations
 
ACGL Consolidated
Revenues
 
 
 
 
 
 
 
 
 
Net premiums earned
$

 
$

 
$
3,145,952

 
$

 
$
3,145,952

Net investment income

 
31

 
307,449

 
(40,261
)
 
267,219

Net realized gains

 

 
74,018

 

 
74,018

Net impairment losses recognized in earnings

 

 
(3,786
)
 

 
(3,786
)
Other underwriting income

 

 
7,639

 

 
7,639

Equity in net income of investment funds accounted for using the equity method

 

 
35,701

 

 
35,701

Other income (loss)

 

 
(586
)
 

 
(586
)
Total revenues

 
31

 
3,566,387

 
(40,261
)
 
3,526,157

 
 
 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
 
 
Losses and loss adjustment expenses

 

 
1,679,424

 

 
1,679,424

Acquisition expenses

 

 
564,103

 

 
564,103

Other operating expenses
38,702

 
2,691

 
459,337

 

 
500,730

Interest expense
23,272

 
1,316

 
42,733

 
(40,261
)
 
27,060

Net foreign exchange losses

 

 
2,145

 
10,190

 
12,335

Total expenses
61,974

 
4,007

 
2,747,742

 
(30,071
)
 
2,783,652

 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
(61,974
)
 
(3,976
)
 
818,645

 
(10,190
)
 
742,505

Income tax benefit (expense)

 
1,383

 
(34,157
)
 

 
(32,774
)
Income (loss) before equity in net income of subsidiaries
(61,974
)
 
(2,593
)
 
784,488

 
(10,190
)
 
709,731

Equity in net income of subsidiaries
771,705

 
25,644

 

 
(797,349
)
 

Net income
709,731

 
23,051

 
784,488

 
(807,539
)
 
709,731

Amounts attributable to noncontrolling interests

 

 

 

 

Net income available to Arch
709,731

 
23,051

 
784,488

 
(807,539
)
 
709,731

Preferred dividends
(21,938
)
 

 

 

 
(21,938
)
Net income available to Arch common shareholders
$
687,793

 
$
23,051

 
$
784,488

 
$
(807,539
)
 
$
687,793

 
 
 
 
 
 
 
 
 
 
Comprehensive income (loss) available to Arch
$
497,678

 
$
(28,330
)
 
$
562,245

 
$
(533,915
)
 
$
497,678

 
Year Ended December 31, 2012
Condensed Consolidating Statement of Income and Comprehensive Income
ACGL (Parent Guarantor)
 
Arch-U.S. (Subsidiary Issuer)
 
Other ACGL Subsidiaries
 
Consolidating Adjustments and Eliminations
 
ACGL Consolidated
Revenues
 
 
 
 
 
 
 
 
 
Net premiums earned
$

 
$

 
$
2,935,140

 
$

 
$
2,935,140

Net investment income
4

 
8

 
321,805

 
(26,922
)
 
294,895

Net realized gains

 

 
194,228

 

 
194,228

Net impairment losses recognized in earnings

 

 
(11,388
)
 

 
(11,388
)
Other underwriting income

 

 
8,090

 

 
8,090

Equity in net income of investment funds accounted for using the equity method

 

 
73,510

 

 
73,510

Other income (loss)

 

 
(12,094
)
 

 
(12,094
)
Total revenues
4

 
8

 
3,509,291

 
(26,922
)
 
3,482,381

 
 
 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
 
 
Losses and loss adjustment expenses

 

 
1,861,277

 

 
1,861,277

Acquisition expenses

 

 
508,884

 

 
508,884

Other operating expenses
35,570

 
1,218

 
428,565

 

 
465,353

Interest expense
23,496

 

 
31,951

 
(26,922
)
 
28,525

Net foreign exchange losses

 

 
21,787

 
7,168

 
28,955

Total expenses
59,066

 
1,218

 
2,852,464

 
(19,754
)
 
2,892,994

 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
(59,062
)
 
(1,210
)
 
656,827

 
(7,168
)
 
589,387

Income tax benefit

 
424

 
3,586

 

 
4,010

Income (loss) before equity in net income of subsidiaries
(59,062
)
 
(786
)
 
660,413

 
(7,168
)
 
593,397

Equity in net income of subsidiaries
652,459

 
9,738

 

 
(662,197
)
 

Net income
593,397

 
8,952

 
660,413

 
(669,365
)
 
593,397

Amounts attributable to noncontrolling interests

 

 

 

 

Net income available to Arch
593,397

 
8,952

 
660,413

 
(669,365
)
 
593,397

Preferred dividends
(25,079
)
 

 

 

 
(25,079
)
Loss on repurchase of preferred shares
(10,612
)
 

 

 

 
(10,612
)
Net income available to Arch common shareholders
$
557,706

 
$
8,952

 
$
660,413

 
$
(669,365
)
 
$
557,706

 
 
 
 
 
 
 
 
 
 
Comprehensive income available to Arch
$
726,491

 
$
2,796

 
$
786,338

 
$
(789,134
)
 
$
726,491

Condensed consolidating statement of cash flows
 
Year Ended December 31, 2014
Condensed Consolidating Statement
of Cash Flows
ACGL (Parent Guarantor)
 
Arch-U.S. (Subsidiary Issuer)
 
Other ACGL Subsidiaries
 
Consolidating Adjustments and Eliminations
 
ACGL Consolidated
Operating Activities
 
 
 
 
 
 
 
 
 
Net Cash Provided By (Used For)
Operating Activities
$
467,091

 
$
8,142

 
$
1,077,597

 
$
(515,700
)
 
$
1,037,130

Investing Activities
 
 
 
 
 
 
 
 
 
Purchases of fixed maturity investments

 
(78,509
)
 
(28,666,770
)
 

 
(28,745,279
)
Purchases of equity securities

 

 
(520,817
)
 

 
(520,817
)
Purchases of other investments

 

 
(2,257,481
)
 

 
(2,257,481
)
Proceeds from the sales of fixed maturity investments

 
16,011

 
26,807,181

 

 
26,823,192

Proceeds from the sales of equity securities

 

 
411,362

 

 
411,362

Proceeds from the sales of other investments

 

 
1,643,000

 

 
1,643,000

Proceeds from redemptions and maturities of fixed maturity investments

 

 
762,995

 

 
762,995

Net (purchases) sales of short-term investments
2,423

 
408,591

 
166,112

 

 
577,126

Change in investment of securities lending collateral

 

 
57,470

 

 
57,470

Contributions to subsidiaries

 
(341,707
)
 
(128,825
)
 
470,532

 

Issuance of intercompany loans

 
(7,500
)
 
(7,500
)
 
15,000

 

Repayments of intercompany loans

 

 
38,964

 
(38,964
)
 

Purchase of business, net of cash acquired

 

 
(237,106
)
 

 
(237,106
)
Purchases of furniture, equipment and other assets
(271
)
 

 
(19,612
)
 

 
(19,883
)
Net Cash Provided By (Used For)
Investing Activities
2,152

 
(3,114
)
 
(1,951,027
)
 
446,568

 
(1,505,421
)
Financing Activities
 
 
 
 
 
 
 
 
 
Purchases of common shares under share repurchase program
(454,137
)
 

 

 

 
(454,137
)
Proceeds from common shares issued, net
6,827

 

 
470,532

 
(470,532
)
 
6,827

Proceeds from intercompany loans

 
7,500

 
7,500

 
(15,000
)
 

Repayments of intercompany loans

 
(10,250
)
 
(28,714
)
 
38,964

 

Change in securities lending collateral

 

 
(57,470
)
 

 
(57,470
)
Third party investment in non-redeemable noncontrolling interests (1)

 

 
796,903

 

 
796,903

Third party investment in redeemable noncontrolling interests (1)

 

 
219,233

 

 
219,233

Dividends paid to redeemable noncontrolling interests (1)

 

 
(14,448
)
 

 
(14,448
)
Dividends paid to parent (2)

 

 
(515,700
)
 
515,700

 

Other

 

 
64,973

 

 
64,973

Preferred dividends paid
(21,938
)
 

 

 

 
(21,938
)
Net Cash Provided By (Used For)
Financing Activities
(469,248
)
 
(2,750
)
 
942,809

 
69,132

 
539,943

Effects of exchange rates changes on foreign currency cash

 

 
(20,007
)
 

 
(20,007
)
Increase (decrease) in cash
(5
)
 
2,278

 
49,372

 

 
51,645

Cash beginning of year
3,223

 
509

 
430,325

 

 
434,057

Cash end of year
$
3,218

 
$
2,787

 
$
479,697

 
$

 
$
485,702

(1) See Note 4.
(2) Included in net cash provided by (used for) operating activities in the ACGL (Parent Guarantor) column.
 
Year Ended December 31, 2013
Condensed Consolidating Statement
of Cash Flows
ACGL (Parent Guarantor)
 
Arch-U.S. (Subsidiary Issuer)
 
Other ACGL Subsidiaries
 
Consolidating Adjustments and Eliminations
 
ACGL Consolidated
Operating Activities
 
 
 
 
 
 
 
 
 
Net Cash Provided By (Used For)
Operating Activities
$
68,562

 
$
(6,569
)
 
$
908,375

 
$
(119,500
)
 
$
850,868

Investing Activities
 
 
 
 
 
 
 
 
 
Purchases of fixed maturity investments

 

 
(18,174,988
)
 

 
(18,174,988
)
Purchases of equity securities

 

 
(535,857
)
 

 
(535,857
)
Purchases of other investments

 

 
(1,326,729
)
 

 
(1,326,729
)
Proceeds from the sales of fixed maturity investments

 

 
17,196,614

 

 
17,196,614

Proceeds from the sales of equity securities

 

 
462,787

 

 
462,787

Proceeds from the sales of other investments

 

 
1,162,707

 

 
1,162,707

Proceeds from redemptions and maturities of fixed maturity investments

 

 
731,708

 

 
731,708

Net (purchases) sales of short-term investments
5,799

 
(400,162
)
 
(356,250
)
 

 
(750,613
)
Change in investment of securities lending collateral

 

 
(55,643
)
 

 
(55,643
)
Contributions to subsidiaries
(160
)
 
(97,850
)
 
(20,250
)
 
118,260

 

Issuance of intercompany loans

 

 
(10,250
)
 
10,250

 

Purchases of furniture, equipment and other assets
(712
)
 

 
(16,787
)
 

 
(17,499
)
Net Cash Provided By (Used For)
Investing Activities
4,927

 
(498,012
)
 
(942,938
)
 
128,510

 
(1,307,513
)
Financing Activities
 
 
 
 
 
 
 
 
 
Purchases of common shares under share repurchase program
(57,796
)
 

 

 

 
(57,796
)
Proceeds from common shares issued, net
3,051

 

 
118,260

 
(118,260
)
 
3,051

Proceeds from intercompany loans

 
10,250

 

 
(10,250
)
 

Proceeds from borrowings

 
494,228

 

 

 
494,228

Change in securities lending collateral

 

 
55,643

 

 
55,643

Dividends paid to parent (1)

 

 
(119,500
)
 
119,500

 

Other

 

 
50,830

 

 
50,830

Preferred dividends paid
(21,938
)
 

 

 

 
(21,938
)
Net Cash Provided By (Used For)
Financing Activities
(76,683
)
 
504,478

 
105,233

 
(9,010
)
 
524,018

Effects of exchange rates changes on foreign currency cash

 

 
(4,357
)
 

 
(4,357
)
Increase (decrease) in cash
(3,194
)
 
(103
)
 
66,313

 

 
63,016

Cash beginning of year
6,417

 
612

 
364,012

 

 
371,041

Cash end of year
$
3,223

 
$
509

 
$
430,325

 
$

 
$
434,057

(1) Included in net cash provided by (used for) operating activities in the ACGL (Parent Guarantor) column.
 
Year Ended December 31, 2012
Condensed Consolidating Statement
of Cash Flows
ACGL (Parent Guarantor)
 
Arch-U.S. (Subsidiary Issuer)
 
Other ACGL Subsidiaries
 
Consolidating Adjustments and Eliminations
 
ACGL Consolidated
Operating Activities
 
 
 
 
 
 
 
 
 
Net Cash Provided By (Used For)
Operating Activities
$
209,500

 
$
(8,086
)
 
$
978,679

 
$
(258,490
)
 
$
921,603

Investing Activities
 
 
 
 
 
 
 
 
 
Purchases of fixed maturity investments

 

 
(17,568,592
)
 

 
(17,568,592
)
Purchases of equity securities

 

 
(268,999
)
 

 
(268,999
)
Purchases of other investments

 

 
(1,000,049
)
 

 
(1,000,049
)
Proceeds from the sales of fixed maturity investments

 

 
16,366,306

 

 
16,366,306

Proceeds from the sales of equity securities

 

 
313,617

 

 
313,617

Proceeds from the sales of other investments

 

 
443,630

 

 
443,630

Proceeds from redemptions and maturities of fixed maturity investments

 

 
1,115,594

 

 
1,115,594

Net (purchases) sales of short-term investments
(5,094
)
 
1,986

 
189,027

 

 
185,919

Change in investment of securities lending collateral

 

 
6,190

 

 
6,190

Contributions to subsidiaries

 

 
(38,576
)
 
38,576

 

Purchase of business, net of cash acquired

 

 
28,948

 

 
28,948

Purchases of furniture, equipment and other assets
(65
)
 

 
(18,467
)
 

 
(18,532
)
Net Cash Provided By (Used For)
Investing Activities
(5,159
)
 
1,986

 
(431,371
)
 
38,576

 
(395,968
)
Financing Activities
 
 
 
 
 
 
 
 
 
Proceeds from issuance of Series C preferred shares issued, net
315,763

 

 

 

 
315,763

Repurchase of Series A and B preferred shares
(325,000
)
 

 

 

 
(325,000
)
Purchases of common shares under share repurchase program
(172,056
)
 

 

 

 
(172,056
)
Proceeds from common shares issued, net
7,033

 

 
38,576

 
(38,576
)
 
7,033

Repayments of borrowings

 

 
(310,868
)
 

 
(310,868
)
Change in securities lending collateral

 

 
(6,190
)
 

 
(6,190
)
Dividends paid to parent (1)

 

 
(258,490
)
 
258,490

 

Other

 

 
6,664

 

 
6,664

Preferred dividends paid
(28,381
)
 

 

 

 
(28,381
)
Net Cash Provided By (Used For)
Financing Activities
(202,641
)
 

 
(530,308
)
 
219,914

 
(513,035
)
Effects of exchange rates changes on foreign currency cash

 

 
6,742

 

 
6,742

 
 
 
 
 
 
 
 
 
 
Increase (decrease) in cash
1,700

 
(6,100
)
 
23,742

 

 
19,342

Cash beginning of year
4,717

 
6,712

 
340,270

 

 
351,699

Cash end of year
$
6,417

 
$
612

 
$
364,012

 
$

 
$
371,041


(1) Included in net cash provided by (used for) operating activities in the ACGL (Parent Guarantor) column.