Variable Interest Entities and Noncontrolling Interests (Tables)

6 Months Ended

Jun. 30, 2018

Carrying value of assets and liabilities of variable interest entity

The following table provides the carrying amount and balance sheet caption in which the assets and liabilities of Watford Re are reported:



	June 30,		December 31,
	2018		2017
Assets
Investments accounted for using the fair value option	$	2,385,316	$	2,426,066
Fixed maturities available for sale, at fair value	279,177		—
Equity securities, at fair value	63,010		—
Cash	45,644		54,503
Accrued investment income	18,108		18,261
Premiums receivable	232,842		177,492
Reinsurance recoverable on unpaid and paid losses and LAE	54,299		42,777
Ceded unearned premiums	55,853		24,762
Deferred acquisition costs	88,752		85,961
Receivable for securities sold	31,387		36,374
Goodwill and intangible assets	7,650		7,650
Other assets	75,478		140,808
Total assets of consolidated VIE	$	3,337,516	$	3,014,654

Liabilities
Reserves for losses and loss adjustment expenses	$	899,395	$	798,262
Unearned premiums	384,537		330,644
Reinsurance balances payable	41,185		18,424
Revolving credit agreement borrowings	447,289		441,132
Payable for securities purchased	132,164		42,501
Other liabilities	244,320		215,186
Total liabilities of consolidated VIE	$	2,148,890	$	1,846,149

Redeemable noncontrolling interests	$	220,805	$	220,622

Activity in non-redeemable noncontrolling interests

The following table sets forth activity in the non-redeemable noncontrolling interests:



	June 30,
	2018			2017
Three Months Ended
Balance, beginning of period	$	854,112		$	868,186
Amounts attributable to noncontrolling interests	8,116			9,346
Other comprehensive income attributable to noncontrolling interests	(1,075		)	(76		)
Balance, end of period	$	861,153		$	877,456

Six Months Ended
Balance, beginning of year	$	843,411		$	851,854
Amounts attributable to noncontrolling interests	19,492			25,670
Other comprehensive income attributable to noncontrolling interests	(1,750		)	(68		)
Balance, end of period	$	861,153		$	877,456

Activity in redeemable noncontrolling interests

The following table sets forth activity in the redeemable non-controlling interests:



	June 30,
	2018		2017
Three Months Ended
Balance, beginning of period	$	206,013	$	205,644
Accretion of preference share issuance costs	92		92
Balance, end of period	$	206,105	$	205,736

Six Months Ended
Balance, beginning of year	$	205,922	$	205,553
Accretion of preference share issuance costs	183		183
Balance, end of period	$	206,105	$	205,736

Portion of income or loss attributable to third party investors

The portion of Watford Re’s income or loss attributable to third party investors, recorded in the Company’s consolidated statements of income in ‘net (income) loss attributable to noncontrolling interests,’ are summarized in the table below:



	June 30,
	2018			2017
Three Months Ended
Amounts attributable to non-redeemable noncontrolling interests	$	(8,116	)	$	(9,346	)
Dividends attributable to redeemable noncontrolling interests	(4,585		)	(4,586		)
Net (income) loss attributable to noncontrolling interests	$	(12,701	)	$	(13,932	)

Six Months Ended
Amounts attributable to non-redeemable noncontrolling interests	$	(19,492	)	$	(25,670	)
Dividends attributable to redeemable noncontrolling interests	(9,170		)	(9,170		)
Net (income) loss attributable to noncontrolling interests	$	(28,662	)	$	(34,840	)

Total assets and maximum exposure to loss associated with VIEs



			Maximum Exposure to Loss
	Total VIE Assets		On-Balance Sheet		Off-Balance Sheet		Total
June 30, 2018
Bellemeade Re I Ltd.	$	69,079	$	263	$	469	$	732
Bellemeade Re II Ltd.	55,388		14		110		124
Bellemeade 2017-1 Ltd.	329,030		815		1,759		2,574
Bellemeade 2018-1 Ltd.	374,460		1,242		2,050		3,292
Total	$	827,957	$	2,334	$	4,388	$	6,722
December 31, 2017
Bellemeade Re I Ltd.	$	92,390	$	471	$	832	$	1,303
Bellemeade Re II Ltd.	135,201		20		527		547
Bellemeade 2017-1 Ltd.	347,139		391		1,867		2,258
Total	$	574,730	$	882	$	3,226	$	4,108