XML 65 R48.htm IDEA: XBRL DOCUMENT v3.22.0.1
Variable Interest Entity and Noncontrolling Interests (Tables)
 12 Months Ended
Dec. 31, 2021
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 Somers were reported:
December 31,
2020
Assets
Investments accounted for using the fair value option (1)$1,790,385 
Fixed maturities available for sale, at fair value655,249 
Equity securities, at fair value52,410 
Cash211,451 
Accrued investment income14,679 
Premiums receivable224,377 
Reinsurance recoverable on unpaid and paid losses and LAE286,590 
Ceded unearned premiums122,339 
Deferred acquisition costs, net53,705 
Receivable for securities sold37,423 
Goodwill and intangible assets7,650 
Other assets75,801 
Total assets of consolidated VIE$3,532,059 
Liabilities
Reserves for losses and loss adjustment expenses$1,519,583 
Unearned premiums407,714 
Reinsurance balances payable63,269 
Revolving credit agreement borrowings155,687 
Senior notes172,689 
Payable for securities purchased25,881 
Other liabilities193,494 
Total liabilities of consolidated VIE$2,538,317 
Redeemable noncontrolling interests$52,398 
(1) Included in “other investments” on the Company’s balance sheet.
Summary of VIE cash flows
The following table summarizes Somers’ cash flow from operating, investing and financing activities.
Year Ended December 31,
202120202019
Total cash provided by (used for):
Operating activities46,991 181,736 239,284 
Investing activities96,325 258,589 (140,620)
Financing activities(2,042)(335,776)(61,433)
Activity in non-redeemable noncontrolling interests
The following table sets forth activity in the non-redeemable noncontrolling interests:
December 31,
 2021

2020
Balance, beginning of year$823,007 $762,777 
Impact of deconsolidation of Somers(918,874)— 
Additional paid in capital attributable to noncontrolling interests 22,113 1,334 
Repurchases attributable to non-redeemable noncontrolling interests— (2,867)
Amounts attributable to noncontrolling interests78,314 53,076 
Other amounts attributable to noncontrolling interests— (375)
Other comprehensive (income) loss attributable to noncontrolling interests(4,560)9,062 
Balance, end of year$— $823,007 
Activity in redeemable noncontrolling interest
The following table sets forth activity in the redeemable noncontrolling interests:
December 31,
 2021

20202019
Balance, beginning of year$58,548 $55,404 $206,292 
Impact of deconsolidation of Somers(48,919)— — 
Redemption of noncontrolling interests— — (157,709)
Accretion of preference share issuance costs— 93 244 
Other(396)3,051 6,577 
Balance, end of year$9,233 $58,548 $55,404 
Portion of income or loss attributable to noncontrolling interests
The portion of income or loss attributable to third party investors is recorded in the consolidated statements of income in ‘net (income) loss attributable to noncontrolling interests’ as summarized in the table below:
December 31,
 202120202019
Amounts attributable to non-redeemable noncontrolling interests$(78,314)$(53,076)$(40,072)
Amounts attributable to redeemable noncontrolling interests(4,299)(7,114)(16,909)
Net (income) loss attributable to noncontrolling interests$(82,613)$(60,190)$(56,981)
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 benchmark index for each respective transaction and short term invested trust asset yields. The benchmark index for agreements effective prior to 2021 is based on one-month LIBOR, while the 2021 agreements benchmark index is based on the Secured Overnight Financing Rate (“SOFR”). SOFR is a measure of the cost of borrowing cash overnight, collateralized by U.S. Treasury securities, and is based on directly observable U.S. Treasury-backed repurchase transactions.
Dec 31, 2021Dec 31, 2020
Maximum Exposure to LossMaximum Exposure to Loss
Bellemeade Entities (Issue Date)Total VIE AssetsOn-Balance Sheet (Asset) LiabilityOff-Balance SheetTotalTotal VIE AssetsOn-Balance Sheet (Asset) LiabilityOff-Balance SheetTotal
Bellemeade 2017-1 Ltd. (Oct-17)$108,368 $(159)$424 $265 $145,573 $(245)$844 $599 
Bellemeade 2018-1 Ltd. (Apr-18)181,136 (528)1,268 740 250,095 (903)2,245 1,342 
Bellemeade 2018-2 Ltd. (Aug-18)— — — — 108,395 (138)280 142 
Bellemeade 2018-3 Ltd. (Oct-18)302,563 (1,018)2,496 1,478 302,563 (1,320)3,262 1,942 
Bellemeade 2019-1 Ltd. (Mar-19)181,324 (380)5,807 5,427 219,256 (1,361)8,461 7,100 
Bellemeade 2019-2 Ltd. (Apr-19)398,316 (515)3,998 3,483 398,316 (730)5,201 4,471 
Bellemeade 2019-3 Ltd. (Jul-19)409,859 (584)3,190 2,606 528,084 (861)5,079 4,218 
Bellemeade 2019-4 Ltd. (Oct-19)411,954 (462)4,759 4,297 468,737 (890)6,676 5,786 
Bellemeade 2020-1 Ltd. (Jun-20)— — — — 275,068 (178)1,012 834 
Bellemeade 2020-2 Ltd. (Sep-20) (1)217,766 (177)1,984 1,807 423,420 (556)6,839 6,283 
Bellemeade 2020-3 Ltd. (Nov-20) (2)348,818 (128)5,793 5,665 418,158 (631)9,605 8,974 
Bellemeade 2020-4 Ltd. (Dec-20) (3)176,826 (50)1,630 1,580 321,393 (156)6,816 6,660 
Bellemeade 2021-1 Ltd. (Mar-21) (4)568,986 (303)3,283 2,980 — — — — 
Bellemeade 2021-2 Ltd. (Jun-21) (5)522,807 281 4,124 4,405 — — — — 
Bellemeade 2021-3 Ltd. (Sep-21) (6)507,873 (411)3,446 3,035 — — — — 
Total$4,336,596 $(4,434)$42,202 $37,768 $3,859,058 $(7,969)$56,320 $48,351 
(1)  At December 31, 2021, $1 million of coverage from a separate panel of reinsurers is remaining (not reflected in this table).
(2)  At December 31, 2021, $16 million of coverage from a separate panel of reinsurers is remaining (not reflected in this table).
(3)  At December 31, 2021, $9 million of coverage from a separate panel of reinsurers is remaining (not reflected in this table).
(4)  At December 31, 2021, $61 million of coverage from a separate panel of reinsurers is remaining (not reflected in this table).
(5)  At December 31, 2021, $93 million of coverage from a separate panel of reinsurers is remaining (not reflected in this table).
(6)  At December 31, 2021, $131 million of coverage from a separate panel of reinsurers is remaining (not reflected in this table).