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Variable Interest Entities and Noncontrolling Interests (Tables)
 9 Months Ended
Sep. 30, 2019
Noncontrolling Interest [Abstract]  
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 are reported:
 
September 30,
 
December 31,

 
2019
 
2018
Assets
 
 
 
Investments accounted for using the fair value option
$
2,048,295

 
$
2,312,003

Fixed maturities available for sale, at fair value
678,094

 
393,351

Equity securities, at fair value
43,488

 
32,206

Cash
80,390

 
63,529

Accrued investment income
18,277

 
19,461

Premiums receivable
302,265

 
227,301

Reinsurance recoverable on unpaid and paid losses and LAE
144,437

 
86,445

Ceded unearned premiums
129,909

 
61,587

Deferred acquisition costs
67,241

 
80,858

Receivable for securities sold
25,283

 
24,507

Goodwill and intangible assets
7,650

 
7,650

Other assets
66,165

 
63,959

Total assets of consolidated VIE
$
3,611,494

 
$
3,372,857

 
 
 
 
Liabilities
 
 
 
Reserve for losses and loss adjustment expenses
$
1,164,945

 
$
1,032,760

Unearned premiums
454,148

 
390,114

Reinsurance balances payable
79,264

 
21,034

Revolving credit agreement borrowings
490,720

 
455,682

Senior notes
172,350

 
—

Payable for securities purchased
40,586

 
60,142

Other liabilities (1)
196,431

 
302,524

Total liabilities of consolidated VIE
$
2,598,444

 
$
2,262,256

 
 
 
 
Redeemable noncontrolling interests
$
52,281

 
$
220,992


(1)
Includes certain borrowings related to investing activities.
Activity in non-redeemable noncontrolling interests
The following table sets forth activity in the non-redeemable noncontrolling interests:
 
September 30,
 
2019
 
2018
Three Months Ended
 
 
 
Balance, beginning of period
$
855,347

 
$
861,153

Additional paid in capital attributable to noncontrolling interests
205

 
—

Amounts attributable to noncontrolling interests
136

 
16,759

Other comprehensive income (loss) attributable to noncontrolling interests
(764
)
 
(1,158
)
Balance, end of period
$
854,924

 
$
876,754

 
 
 
 
Nine Months Ended
 
 
 
Balance, beginning of year
$
791,560

 
$
843,411

Additional paid in capital attributable to noncontrolling interests
2,279

 
—

Amounts attributable to noncontrolling interests
54,819

 
36,251

Other comprehensive income (loss) attributable to noncontrolling interests
6,266

 
(2,908
)
Balance, end of period
$
854,924

 
$
876,754
Activity in redeemable noncontrolling interests
The following table sets forth activity in the redeemable non-controlling interests:
 
September 30,
 
2019
 
2018
Three Months Ended
 
 
 
Balance, beginning of period
$
206,475

 
$
206,105

Redemption of noncontrolling interests
(157,709
)
 
—

Accretion of preference share issuance costs
23

 
94

Balance, end of period
$
48,789

 
$
206,199

 
 
 
 
Nine Months Ended
 
 
 
Balance, beginning of year
$
206,292

 
$
205,922

Redemption of noncontrolling interests
(157,709
)
 
—

Accretion of preference share issuance costs
206

 
277

Balance, end of period
$
48,789

 
$
206,199
Portion of income or loss attributable to third party investors
The portion of Watford’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:
 
September 30,
 
2019
 
2018
Three Months Ended
 
 
 
Amounts attributable to non-redeemable noncontrolling interests
$
(136
)
 
$
(16,759
)
Dividends attributable to redeemable noncontrolling interests
(6,600
)
 
(4,599
)
Net (income) loss attributable to noncontrolling interests
$
(6,736
)
 
$
(21,358
)
 
 
 
 
Nine Months Ended
 
 
 
Amounts attributable to non-redeemable noncontrolling interests
$
(54,819
)
 
$
(36,251
)
Dividends attributable to redeemable noncontrolling interests
(15,778
)
 
(13,769
)
Net (income) loss attributable to noncontrolling interests
$
(70,597
)
 
$
(50,020
)
Total assets and maximum exposure to loss associated with VIEs
The following table presents the total assets of the Bellemeade entities, as well as the Company’s maximum exposure to loss associated with these VIEs, calculated as the maximum historical observable spread between the one month LIBOR, the basis for the contractual payments to bond holders, and short term invested trust asset yields.
 
 
 
Maximum Exposure to Loss
Bellemeade Entities (Issue Date)
Total VIE Assets
 
On-Balance Sheet (Asset) Liability
 
Off-Balance Sheet
 
Total
Sep 30, 2019
 
 
 
 
 
 
 
Bellemeade 2015-1 Ltd. (Jul-15)
$
6,046

 
$
—

 
$
2

 
$
2

Bellemeade 2017-1 Ltd. (Oct-17)
249,737

 
(345
)
 
3,526

 
3,181

Bellemeade 2018-1 Ltd. (Apr-18)
362,603

 
(1,351
)
 
7,035

 
5,684

Bellemeade 2018-2 Ltd. (Aug-18)
507,534

 
(829
)
 
3,395

 
2,566

Bellemeade 2018-3 Ltd. (Oct-18)
488,430

 
(916
)
 
4,600

 
3,684

Bellemeade 2019-1 Ltd. (Mar-19)
293,595

 
(210
)
 
4,533

 
4,323

Bellemeade 2019-2 Ltd. (Apr-19)
621,022

 
(367
)
 
15,161

 
14,794

Bellemeade 2019-3 Ltd. (July-19)

700,920

 
(468
)
 
11,888

 
11,420

Total
$
3,229,887

 
$
(4,486
)
 
$
50,140

 
$
45,654

Dec 31, 2018
 
 
 
 
 
 
 
Bellemeade 2015-1 Ltd. (Jul-15)
$
43,246

 
$
112

 
$
498

 
$
610

Bellemeade 2017-1 Ltd. (Oct-17)
304,373

 
165

 
1,312

 
1,477

Bellemeade 2018-1 Ltd. (Apr-18)
374,460

 
132

 
3,539

 
3,671

Bellemeade 2018-2 Ltd. (Aug-18)
653,278

 
874

 
4,005

 
4,879

Bellemeade 2018-3 Ltd. (Oct-18)
506,110

 
469

 
1,836

 
2,305

Total
$
1,881,467

 
$
1,752

 
$
11,190

 
$
12,942