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Investments (Tables)
 3 Months Ended
Mar. 31, 2014
Investments [Abstract]  
Schedule of Fair Value of Fixed Maturity Investments Trading
The following table summarizes the fair value of fixed maturity investments trading:
 
 
 
 
 
 
 
 
March 31,
2014
 
December 31,
2013
 
 
U.S. treasuries
$
1,539,995

 
$
1,352,413

 
 
Agencies
134,461

 
186,050

 
 
Non-U.S. government (Sovereign debt)
298,080

 
334,580

 
 
Non-U.S. government-backed corporate
220,727

 
237,479

 
 
Corporate
1,495,481

 
1,803,415

 
 
Agency mortgage-backed
295,666

 
336,661

 
 
Non-agency mortgage-backed
251,909

 
243,795

 
 
Commercial mortgage-backed
336,321

 
303,214

 
 
Asset-backed
14,772

 
11,429

 
 
Total fixed maturity investments trading
$
4,587,412

 
$
4,809,036

 
 
 
 
 
 
 
Schedule of Fair Value of Fixed Maturity Investments Available For Sale
The following table summarizes the amortized cost, fair value and related unrealized gains and losses and non-credit other-than-temporary impairments of fixed maturity investments available for sale:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Included in Accumulated
Other Comprehensive Income
 
 
 
 
 
 
March 31, 2014
Amortized 
Cost
 
Gross
Unrealized    
Gains
 
Gross
Unrealized    
Losses
 
Fair Value
 
Non-Credit
Other-Than-
Temporary
Impairments 
(1)  
 
 
Agency mortgage-backed
$
4,434

 
$
348

 
$
—

 
$
4,782

 
$
—

 
 
Non-agency mortgage-backed
11,049

 
2,418

 
(4
)
 
13,463

 
(720
)
 
 
Commercial mortgage-backed
7,429

 
840

 
—

 
8,269

 
—

 
 
Asset-backed
3,490

 
201

 
—

 
3,691

 
—

 
 
Total fixed maturity investments available for sale
$
26,402

 
$
3,807

 
$
(4
)
 
$
30,205

 
$
(720
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Included in Accumulated
Other Comprehensive Income
 
 
 
 
 
 
December 31, 2013
Amortized Cost
 
Gross
Unrealized    
Gains
 
Gross
Unrealized    
Losses
 
Fair Value
 
Non-Credit
Other-Than-
Temporary
Impairments
 (1)  
 
 
Agency mortgage-backed
$
4,880

 
$
378

 
$
(11
)
 
$
5,247

 
$
—

 
 
Non-agency mortgage-backed
11,735

 
2,414

 
(6
)
 
14,143

 
(742
)
 
 
Commercial mortgage-backed
10,052

 
970

 
—

 
11,022

 
—

 
 
Asset-backed
3,606

 
223

 
—

 
3,829

 
—

 
 
Total fixed maturity investments available for sale
$
30,273

 
$
3,985

 
$
(17
)
 
$
34,241

 
$
(742
)
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
Represents the non-credit component of other-than-temporary impairments recognized in accumulated other comprehensive income adjusted for subsequent sales of securities. It does not include the change in fair value subsequent to the impairment measurement date.
Schedule of Contractual Maturities of Fixed Maturity Investments
Contractual maturities of fixed maturity investments are as follows. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading
 
Available for Sale
 
Total Fixed Maturity Investments
 
 
March 31, 2014
Amortized 
Cost
 
Fair Value
 
Amortized Cost
 
Fair Value
 
Amortized Cost
 
Fair Value
 
 
Due in less than one year
$
119,010

 
$
119,599

 
$
—

 
$
—

 
$
119,010

 
$
119,599

 
 
Due after one through five years
2,951,583

 
2,963,494

 
—

 
—

 
2,951,583

 
2,963,494

 
 
Due after five through ten years
499,093

 
504,919

 
—

 
—

 
499,093

 
504,919

 
 
Due after ten years
81,215

 
100,732

 
—

 
—

 
81,215

 
100,732

 
 
Mortgage-backed
866,984

 
883,896

 
22,912

 
26,514

 
889,896

 
910,410

 
 
Asset-backed
14,496

 
14,772

 
3,490

 
3,691

 
17,986

 
18,463

 
 
Total
$
4,532,381

 
$
4,587,412

 
$
26,402

 
$
30,205

 
$
4,558,783

 
$
4,617,617

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Schedule of Fair Value of Equity Investments Trading
The following table summarizes the fair value of equity investments trading:
 
 
 
 
 
 
 
 
March 31,
2014
 
December 31,
2013
 
 
Financials
$
142,374

 
$
152,905

 
 
Consumer
45,179

 
44,115

 
 
Industrial, utilities and energy
25,239

 
25,350

 
 
Healthcare
15,254

 
15,340

 
 
Basic materials
12,937

 
12,766

 
 
Communications and technology
4,284

 
4,300

 
 
Total
$
245,267

 
$
254,776

 
 
 
 
 
 
 
Schedule of Net Investment Income
The components of net investment income are as follows:
 
 
 
 
 
 
 
 
Three months ended March 31,
 
 
 
2014
 
2013
 
 
Fixed maturity investments
$
23,860

 
$
23,886

 
 
Short term investments
190

 
329

 
 
Equity investments
796

 
—

 
 
Other investments
 
 
 
 
 
Hedge funds and private equity investments
12,317

 
14,880

 
 
Other
4,528

 
6,995

 
 
Cash and cash equivalents
91

 
52

 
 
 
41,782

 
46,142

 
 
Investment expenses
(2,834
)
 
(2,940
)
 
 
Net investment income
$
38,948

 
$
43,202

 
 
 
 
 
 
 
Schedule of Net Realized and Unrealized Gains On Investments and Net Other-Than-Temporary Impairments
The following table provides an analysis of the components of net realized and unrealized gains on investments.
 
 
 
 
 
 
 
 
Three months ended March 31,
 
 
 
2014
 
2013
 
 
Gross realized gains
$
13,467

 
$
34,076

 
 
Gross realized losses
(5,564
)
 
(4,554
)
 
 
Net realized gains on fixed maturity investments
7,903

 
29,522

 
 
Net unrealized gains (losses) on fixed maturity investments trading
27,882

 
(23,063
)
 
 
Net realized and unrealized (losses) gains on investments-related derivatives
(10,899
)
 
421

 
 
Net realized (losses) gains on equity investments trading
(79
)
 
17,561

 
 
Net unrealized losses on equity investments trading
(9,880
)
 
(10,172
)
 
 
Net realized and unrealized gains on investments
$
14,927

 
$
14,269

 
 
 
 
 
 
 
Schedule of Components of Other Comprehensive Income and Reclassification Out of Accumulated Other Comprehensive Income
The following tables provide an analysis of the components of other comprehensive income and reclassifications out of accumulated other comprehensive income.
 
 
 
 
 
 
 
 
 
 
Three months ended March 31, 2014
 
 
 
Investments in other ventures
 
Fixed maturity investments available for sale
 
Total
 
 
Beginning balance
$
163

 
$
3,968

 
$
4,131

 
 
Other comprehensive loss before reclassifications
(3
)
 
(165
)
 
(168
)
 
 
Ending balance
$
160

 
$
3,803

 
$
3,963

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended March 31, 2013
 
 
 
Investments in other ventures
 
Fixed maturity investments available for sale
 
Total
 
 
Beginning balance
$
1,625

 
$
11,997

 
$
13,622

 
 
Other comprehensive loss before reclassifications
(1,505
)
 
(206
)
 
(1,711
)
 
 
Amounts reclassified from accumulated other comprehensive income by statement of operations line item:
 
 
 
 
 
 
 
Realized gains reclassified from accumulated other comprehensive income to net realized and unrealized gains (losses) on investments
—

 
(5,861
)
 
(5,861
)
 
 
Net current-period other comprehensive loss
(1,505
)
 
(6,067
)
 
(7,572
)
 
 
Ending balance
$
120

 
$
5,930

 
$
6,050

 
 
 
 
 
 
 
 
 
Schedule of Fixed Maturity Investments Available For Sale In Continual Unrealized Loss Position
The following tables provide an analysis of the length of time the Company’s fixed maturity investments available for sale in an unrealized loss have been in a continual unrealized loss position.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Less than 12 Months
 
12 Months or Greater
 
Total
 
 
At March 31, 2014
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
 
 
Non-agency mortgage-backed
$
—

 
$
—

 
$
82

 
$
(4
)
 
$
82

 
$
(4
)
 
 
Total
$
—

 
$
—

 
$
82

 
$
(4
)
 
$
82

 
$
(4
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Less than 12 Months
 
12 Months or Greater
 
Total
 
 
December 31, 2013
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
 
 
Agency mortgage-backed
$
726

 
$
(11
)
 
$
—

 
$
—

 
$
726

 
$
(11
)
 
 
Non-agency mortgage-backed
—

 
—

 
89

 
(6
)
 
89

 
(6
)
 
 
Commercial mortgage-backed
39

 
—

 
—

 
—

 
39

 
—

 
 
Total
$
765

 
$
(11
)
 
$
89

 
$
(6
)
 
$
854

 
$
(17
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rollforward of the Amount of Other-Than-Temporary Impairments Related To Credit Losses Recognized in Earnings For Which A Portion Of An Other-Than-Temporary Impairment Was Recognized In Accumulated Other Comprehensive Income
The following table provides a rollforward of the amount of other-than-temporary impairments related to credit losses recognized in earnings for which a portion of an other-than-temporary impairment was recognized in accumulated other comprehensive income:
 
 
 
 
 
 
 
 
Three months ended March 31,
 
 
 
2014
 
2013
 
 
Beginning balance
$
561

 
$
838

 
 
Reductions:
 
 
 
 
 
Securities sold during the period
(16
)
 
(27
)
 
 
Ending balance
$
545

 
$
811