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Variable Interest Entities and Noncontrolling Interests (Tables)
 3 Months Ended
Mar. 31, 2020
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:
 
March 31,
 
December 31,

 
2020
 
2019
Assets
 
 
 
Investments accounted for using the fair value option
$
1,732,086

 
$
1,898,091

Fixed maturities available for sale, at fair value
717,552

 
745,708

Equity securities, at fair value
63,169

 
65,338

Cash
96,580

 
102,437

Accrued investment income
16,344

 
14,025

Premiums receivable
281,541

 
273,657

Reinsurance recoverable on unpaid and paid losses and LAE
197,458

 
170,973

Ceded unearned premiums
128,570

 
132,577

Deferred acquisition costs
71,402

 
64,044

Receivable for securities sold
26,789

 
16,287

Goodwill and intangible assets
7,650

 
7,650

Other assets
67,493

 
60,070

Total assets of consolidated VIE
$
3,406,634

 
$
3,550,857

 
 
 
 
Liabilities
 
 
 
Reserve for losses and loss adjustment expenses
$
1,300,249

 
$
1,263,628

Unearned premiums
478,663

 
438,907

Reinsurance balances payable
71,204

 
77,066

Revolving credit agreement borrowings
500,587

 
484,287

Senior notes
172,486

 
172,418

Payable for securities purchased
63,829

 
18,180

Other liabilities (1)
203,234

 
171,714

Total liabilities of consolidated VIE
$
2,790,252

 
$
2,626,200

 
 
 
 
Redeemable noncontrolling interests
$
52,328

 
$
52,305


(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:
 
March 31,
 
2020
 
2019
Three Months Ended
 
 
 
Balance, beginning of year
$
762,777

 
$
791,560

Additional paid in capital attributable to noncontrolling interests
(123
)
 
—

Repurchases attributable to non-redeemable noncontrolling interests (1)
(2,867
)
 
—

Amounts attributable to noncontrolling interests
(233,944
)
 
42,382

Other comprehensive income (loss) attributable to noncontrolling interests
(33,058
)
 
4,139

Balance, end of period
$
492,785

 
$
838,081


(1) During 2020, Watford’s board of directors authorized the investment in Watford’s common shares through a share repurchase program.
Activity in redeemable noncontrolling interests
The following table sets forth activity in the redeemable non-controlling interests:
 
March 31,
 
2020
 
2019
Three Months Ended
 
 
 
Balance, beginning of year
$
55,404

 
$
206,292

Accretion of preference share issuance costs
23

 
91

Other
(51
)
 
—

Balance, end of period
$
55,376

 
$
206,383
Portion of income or loss attributable to third party investors
The portion of 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:
 
March 31,
 
2020
 
2019
Three Months Ended
 
 
 
Amounts attributable to non-redeemable noncontrolling interests
$
233,944

 
$
(42,382
)
Amounts attributable to redeemable noncontrolling interests
(1,153
)
 
(4,588
)
Net (income) loss attributable to noncontrolling interests
$
232,791

 
$
(46,970
)
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
Mar 31, 2020
 
 
 
 
 
 
 
Bellemeade 2017-1 Ltd. (Oct-17)
$
190,324

 
$
204

 
$
1,491

 
$
1,695

Bellemeade 2018-1 Ltd. (Apr-18)
299,909

 
(132
)
 
3,790

 
3,658

Bellemeade 2018-2 Ltd. (Aug-18)
380,986

 
83

 
2,787

 
2,870

Bellemeade 2018-3 Ltd. (Oct-18)
383,268

 
(116
)
 
4,272

 
4,156

Bellemeade 2019-1 Ltd. (Mar-19)
228,940

 
396

 
3,072

 
3,468

Bellemeade 2019-2 Ltd. (Apr-19)
462,057

 
814

 
4,373

 
5,187

Bellemeade 2019-3 Ltd. (Jul-19)
603,465

 
1,033

 
8,449

 
9,482

Bellemeade 2019-4 Ltd. (Oct-19)

563,160

 
1,420

 
10,320

 
11,740

Total
$
3,112,109

 
$
3,702

 
$
38,554

 
$
42,256

Dec 31, 2019
 
 
 
 
 
 
 
Bellemeade 2017-1 Ltd. (Oct-17)
$
216,429

 
$
(442
)
 
$
2,794

 
$
2,352

Bellemeade 2018-1 Ltd. (Apr-18)
328,482

 
(1,574
)
 
5,757

 
4,183

Bellemeade 2018-2 Ltd. (Aug-18)
437,009

 
(877
)
 
2,524

 
1,647

Bellemeade 2018-3 Ltd. (Oct-18)
426,806

 
(1,113
)
 
3,937

 
2,824

Bellemeade 2019-1 Ltd. (Mar-19)
257,358

 
(226
)
 
3,027

 
2,801

Bellemeade 2019-2 Ltd. (Apr-19)
525,959

 
(78
)
 
2,579

 
2,501

Bellemeade 2019-3 Ltd. (Jul-19)
656,523

 
(585
)
 
9,273

 
8,688

Bellemeade 2019-4 Ltd. (Oct-19)
577,267

 
(302
)
 
12,193

 
11,891

Total
$
3,425,833

 
$
(5,197
)
 
$
42,084

 
$
36,887