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Related Party Transactions and Major Customers
12 Months Ended
Dec. 31, 2014
Related Party Transactions [Abstract]  
Related Party Transactions and Major Customers
RELATED PARTY TRANSACTIONS AND MAJOR CUSTOMERS
The Company has equity interests in the Tower Hill Companies as described in “Note 5. Investments”. The Company has entered into reinsurance agreements with certain subsidiaries and affiliates of Tower Hill and has also entered into reinsurance agreements with respect to business produced by the Tower Hill Companies. For the year ended December 31, 2014, the Company recorded $40.0 million (2013 - $46.7 million, 2012 - $41.1 million) of gross premium written assumed from Tower Hill and its subsidiaries and affiliates. Gross premiums earned totaled $41.9 million (2013 - $44.9 million, 2012 - $36.1 million) and expenses incurred were $4.7 million (2013 - $5.3 million, 2012 - $3.9 million) for the year ended December 31, 2014. The Company had a net related outstanding receivable balance of $18.3 million as of December 31, 2014 (2013 - $20.2 million). During 2014, the Company assumed net claims and claims expenses of $3.6 million (2013 - $4.1 million, 2012 - $4.0 million) and, as of December 31, 2014, had a net reserve for claims and claim expenses of $40.3 million (2013 - $37.1 million). In addition, the Company received distributions of $10.0 million from THIG during 2014 (2013 - $9.8 million).
As a result of the transactions described in “Note 10. Noncontrolling Interests”, the Company has cumulatively invested $10.5 million in Angus, representing a 40.4% equity interest, which is accounted for under the equity method of accounting. Angus primarily provides commodity related risk management products to third party customers. For the year ended December 31, 2014, the Company generated other income of $Nil (2013 - $5.0 million, 2012 - $7.9 million) associated with Angus related transactions which is reflected in the Company’s discontinued operations with respect to REAL.
During 2014, the Company received distributions from Top Layer Re of $Nil (2013 - $Nil, 2012 - $Nil), and a management fee of $2.8 million (2013 - $3.8 million, 2012 - $4.1 million). The management fee reimburses the Company for services it provides to Top Layer Re.
During 2014, the Company received 89.2% of its aggregate Catastrophe Reinsurance and Specialty Reinsurance segments’ gross premiums written (2013 - 88.2%, 2012 - 84.6%) from three brokers. Subsidiaries and affiliates of AON Benfield, Marsh Inc., and the Willis Group accounted for approximately 56.1%, 21.2% and 11.9%, respectively, of gross premiums written for the aggregate of the Catastrophe Reinsurance and Specialty Reinsurance segments in 2014 (2013 - 48.6%, 22.7% and 16.9%, respectively, 2012 - 51.5%, 21.4% and 11.7%, respectively).