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Investments (Tables)
 9 Months Ended
Sep. 30, 2014
Investments [Abstract]  
Schedule of Fair Value of Fixed Maturity Investments Trading
The following table summarizes the fair value of fixed maturity investments trading:
 
 
 
 
 
 
 
 
September 30,
2014
 
December 31,
2013
 
 
U.S. treasuries
$
1,636,326

 
$
1,352,413

 
 
Agencies
120,025

 
186,050

 
 
Non-U.S. government (Sovereign debt)
282,326

 
334,580

 
 
Non-U.S. government-backed corporate
141,159

 
237,479

 
 
Corporate
1,572,168

 
1,803,415

 
 
Agency mortgage-backed
320,584

 
336,661

 
 
Non-agency mortgage-backed
252,241

 
243,795

 
 
Commercial mortgage-backed
397,685

 
303,214

 
 
Asset-backed
28,252

 
11,429

 
 
Total fixed maturity investments trading
$
4,750,766

 
$
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
 
 
 
 
 
 
September 30, 2014
Amortized 
Cost
 
Gross
Unrealized Gains
 
Gross
Unrealized Losses
 
Fair Value
 
Non-Credit
Other-Than-
Temporary
Impairments 
(1)  
 
 
Agency mortgage-backed
$
4,174

 
$
380

 
$
—

 
$
4,554

 
$
—

 
 
Non-agency mortgage-backed
9,999

 
2,218

 
(3
)
 
12,214

 
(677
)
 
 
Commercial mortgage-backed
7,294

 
656

 
—

 
7,950

 
—

 
 
Asset-backed
3,197

 
154

 
—

 
3,351

 
—

 
 
Total fixed maturity investments available for sale
$
24,664

 
$
3,408

 
$
(3
)
 
$
28,069

 
$
(677
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
 
September 30, 2014
Amortized 
Cost
 
Fair Value
 
Amortized Cost
 
Fair Value
 
Amortized Cost
 
Fair Value
 
 
Due in less than one year
$
97,830

 
$
97,868

 
$
—

 
$
—

 
$
97,830

 
$
97,868

 
 
Due after one through five years
2,951,631

 
2,949,329

 
—

 
—

 
2,951,631

 
2,949,329

 
 
Due after five through ten years
595,874

 
593,633

 
—

 
—

 
595,874

 
593,633

 
 
Due after ten years
108,080

 
111,174

 
—

 
—

 
108,080

 
111,174

 
 
Mortgage-backed
953,480

 
970,510

 
21,467

 
24,718

 
974,947

 
995,228

 
 
Asset-backed
28,166

 
28,252

 
3,197

 
3,351

 
31,363

 
31,603

 
 
Total
$
4,735,061

 
$
4,750,766

 
$
24,664

 
$
28,069

 
$
4,759,725

 
$
4,778,835

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Schedule of Fair Value of Equity Investments Trading
The following table summarizes the fair value of equity investments trading:
 
 
 
 
 
 
 
 
September 30,
2014
 
December 31,
2013
 
 
Financials
$
199,798

 
$
152,905

 
 
Communications and technology
32,377

 
4,300

 
 
Industrial, utilities and energy
30,347

 
25,350

 
 
Consumer
18,796

 
44,115

 
 
Healthcare
16,396

 
15,340

 
 
Basic materials
4,000

 
12,766

 
 
Total
$
301,714

 
$
254,776

 
 
 
 
 
 
 
Schedule of Net Investment Income
The components of net investment income are as follows:
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended
 
Nine months ended
 
 
 
September 30,
2014
 
September 30,
2013
 
September 30,
2014
 
September 30,
2013
 
 
Fixed maturity investments
$
24,519

 
$
24,423

 
$
74,751

 
$
71,148

 
 
Short term investments
251

 
563

 
727

 
1,318

 
 
Equity investments
736

 
706

 
2,311

 
1,050

 
 
Other investments
 
 
 
 
 
 
 
 
 
Hedge funds and private equity investments
(3,320
)
 
14,179

 
17,337

 
31,296

 
 
Other
5,547

 
22,735

 
11,558

 
32,874

 
 
Cash and cash equivalents
116

 
47

 
300

 
108

 
 
 
27,849

 
62,653

 
106,984

 
137,794

 
 
Investment expenses
(2,908
)
 
(2,722
)
 
(8,554
)
 
(8,498
)
 
 
Net investment income
$
24,941

 
$
59,931

 
$
98,430

 
$
129,296

 
 
 
 
 
 
 
 
 
 
 
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
 
Nine months ended
 
 
 
September 30,
2014
 
September 30,
2013
 
September 30,
2014
 
September 30,
2013
 
 
Gross realized gains
$
7,962

 
$
8,813

 
$
33,595

 
$
60,437

 
 
Gross realized losses
(2,720
)
 
(22,241
)
 
(10,871
)
 
(41,396
)
 
 
Net realized gains on fixed maturity investments
5,242

 
(13,428
)
 
22,724

 
19,041

 
 
Net unrealized (losses) gains on fixed maturity investments trading
(36,600
)
 
33,405

 
21,200

 
(85,338
)
 
 
Net realized and unrealized (losses) gains on investments-related derivatives
(1,868
)
 
3,557

 
(19,651
)
 
24,488

 
 
Net realized gains on equity investments trading
3,523

 
560

 
8,578

 
18,195

 
 
Net unrealized (losses) gains on equity investments trading
(1,394
)
 
4,378

 
(21,893
)
 
(3,174
)
 
 
Net realized and unrealized (losses) gains on investments
$
(31,097
)
 
$
28,472

 
$
10,958

 
$
(26,788
)
 
 
 
 
 
 
 
 
 
 
 
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 September 30, 2014
 
 
 
Investments in other ventures
 
Fixed maturity investments available for sale
 
Total
 
 
Beginning balance
$
211

 
$
3,707

 
$
3,918

 
 
Other comprehensive income (loss) before reclassifications
213

 
(302
)
 
(89
)
 
 
Ending balance
$
424

 
$
3,405

 
$
3,829

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended September 30, 2014
 
 
 
Investments in other ventures
 
Fixed maturity investments available for sale
 
Total
 
 
Beginning balance
$
163

 
$
3,968

 
$
4,131

 
 
Other comprehensive income (loss) before reclassifications
261

 
(563
)
 
(302
)
 
 
Ending balance
$
424

 
$
3,405

 
$
3,829

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended September 30, 2013
 
 
 
Investments in other ventures
 
Fixed maturity investments available for sale
 
Total
 
 
Beginning balance
$
218

 
$
4,691

 
$
4,909

 
 
Other comprehensive (loss) income before reclassifications
(91
)
 
116

 
25

 
 
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
—

 
(368
)
 
(368
)
 
 
Net current-period other comprehensive loss
(91
)
 
(252
)
 
(343
)
 
 
Ending balance
$
127

 
$
4,439

 
$
4,566

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended September 30, 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
(1,498
)
 
(10
)
 
(1,508
)
 
 
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
—

 
(7,548
)
 
(7,548
)
 
 
Net current-period other comprehensive loss
(1,498
)
 
(7,558
)
 
(9,056
)
 
 
Ending balance
$
127

 
$
4,439

 
$
4,566

 
 
 
 
 
 
 
 
 
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 September 30, 2014
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
 
 
Non-agency mortgage-backed
$
—

 
$
—

 
$
73

 
$
(3
)
 
$
73

 
$
(3
)
 
 
Total
$
—

 
$
—

 
$
73

 
$
(3
)
 
$
73

 
$
(3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
Nine months ended
 
 
 
September 30,
2014
 
September 30,
2013
 
September 30,
2014
 
September 30,
2013
 
 
Beginning balance
$
529

 
$
791

 
$
561

 
$
838

 
 
Reductions:
 
 
 
 
 
 
 
 
 
Securities sold during the period
(15
)
 
(38
)
 
(47
)
 
(85
)
 
 
Ending balance
$
514

 
$
753

 
$
514

 
$
753