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Variable Interest Entity and Noncontrolling Interests (Tables)
 12 Months Ended
Dec. 31, 2020
Variable Interest Entity and Noncontrolling Interest Disclosure [Abstract]  
Carrying amount of assets and liabilities of consolidated VIE
The following table provides the carrying amount and balance sheet caption in which the assets and liabilities of Watford are reported:
December 31,
20202019
Assets
Investments accounted for using the fair value option (1)$1,790,385 $1,898,091 
Fixed maturities available for sale, at fair value655,249 745,708 
Equity securities, at fair value52,410 65,338 
Cash211,451 102,437 
Accrued investment income14,679 14,025 
Premiums receivable224,377 273,657 
Reinsurance recoverable on unpaid and paid losses and LAE286,590 170,973 
Ceded unearned premiums122,339 132,577 
Deferred acquisition costs, net53,705 64,044 
Receivable for securities sold37,423 16,287 
Goodwill and intangible assets7,650 7,650 
Other assets75,801 60,070 
Total assets of consolidated VIE$3,532,059 $3,550,857 
Liabilities
Reserves for losses and loss adjustment expenses$1,519,583 $1,263,628 
Unearned premiums407,714 438,907 
Reinsurance balances payable63,269 77,066 
Revolving credit agreement borrowings155,687 484,287 
Senior notes172,689 172,418 
Payable for securities purchased25,881 18,180 
Other liabilities193,494 171,714 
Total liabilities of consolidated VIE$2,538,317 $2,626,200 
Redeemable noncontrolling interests$52,398 $52,305 
(1) Included in “other investments” on the Company’s balance sheet.
Summary of VIE cash flows
The following table summarizes Watford’s cash flow from operating, investing and financing activities.
Year Ended December 31,
202020192018
Total cash provided by (used for):
Operating activities181,736 239,284 229,315 
Investing activities258,589 (140,620)(285,281)
Financing activities(335,776)(61,433)(2,406)
Activity in non-redeemable noncontrolling interests
The following table sets forth activity in the non-redeemable noncontrolling interests:
December 31,
 2020

2019
Balance, beginning of year$762,777 $791,560 
Additional paid in capital attributable to noncontrolling interests 1,334 (2,929)
Repurchases attributable to non-redeemable noncontrolling interests (1)
(2,867)(75,056)
Amounts attributable to noncontrolling interests53,076 40,072 
Other amounts attributable to noncontrolling interests(375)— 
Other comprehensive (income) loss attributable to noncontrolling interests9,062 9,130 
Balance, end of year$823,007 $762,777 
(1) During 2020 and 2019, Watford’s board of directors authorized the investment in Watford’s common shares through a share repurchase program.
Activity in redeemable noncontrolling interest
The following table sets forth activity in the redeemable noncontrolling interests:
December 31,
 2020

20192018
Balance, beginning of year$55,404 $206,292 $205,922 
Redemption of noncontrolling interests— (157,709)— 
Accretion of preference share issuance costs93 244 370 
Other3,051 6,577 — 
Balance, end of year$58,548 $55,404 $206,292 
Portion of income or loss attributable to noncontrolling interests
The portion of income or loss attributable to third party investors is recorded in the consolidated statements of income in ‘net (income) loss attributable to noncontrolling interests’ as summarized in the table below:
December 31,
 202020192018
Amounts attributable to non-redeemable noncontrolling interests$(53,076)$(40,072)$48,507 
Amounts attributable to redeemable noncontrolling interests(7,114)(16,909)(18,357)
Net (income) loss attributable to noncontrolling interests$(60,190)$(56,981)$30,150 
Total assets and maximum loss exposure of VIE 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 AssetsOn-Balance Sheet (Asset) LiabilityOff-Balance SheetTotal
Dec 31, 2020
Bellemeade 2017-1 Ltd. (Oct-17)$145,573 $(245)$844 $599 
Bellemeade 2018-1 Ltd. (Apr-18)250,095 (903)2,245 1,342 
Bellemeade 2018-2 Ltd. (Aug-18)108,395 (138)280 142 
Bellemeade 2018-3 Ltd. (Oct-18)302,563 (1,320)3,262 1,942 
Bellemeade 2019-1 Ltd. (Mar-19)219,256 (1,361)8,461 7,100 
Bellemeade 2019-2 Ltd. (Apr-19)398,316 (730)5,201 4,471 
Bellemeade 2019-3 Ltd. (Jul-19)528,084 (861)5,079 4,218 
Bellemeade 2019-4 Ltd. (Oct-19)468,737 (890)6,676 5,786 
Bellemeade 2020-1 Ltd. (Jun-20) (1)275,068 (178)1,012 834 
Bellemeade 2020-2 Ltd. (Sep-20) (2)423,420 (556)6,839 6,283 
Bellemeade 2020-3 Ltd. (Nov-20) (3)418,158 (631)9,605 8,974 
Bellemeade 2020-4 Ltd. (Dec-20) (4)321,393 (156)6,816 6,660 
Total$3,859,058 $(7,969)$56,320 $48,351 
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 

(1)  An additional $79 million capacity was provided directly to Arch MI U.S. by a separate panel of reinsurers and is not reflected in this table.
(2)  An additional $26 million capacity was provided directly to Arch MI U.S. by a separate panel of reinsurers and is not reflected in this table.
(3) An additional $34 million capacity was provided directly to Arch MI U.S. by a separate panel of reinsurers and is not reflected in this table.
(4) An additional $16 million capacity was provided directly to Arch MI U.S. by a separate panel of reinsurers and is not reflected in this table.