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Investments (Tables)
 12 Months Ended
Dec. 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:
 
 
 
 
 
 
 
 
December 31,
2014
 
December 31,
2013
 
 
U.S. treasuries
$
1,671,471

 
$
1,352,413

 
 
Agencies
96,208

 
186,050

 
 
Non-U.S. government (Sovereign debt)
280,651

 
334,580

 
 
Non-U.S. government-backed corporate
146,467

 
237,479

 
 
Corporate
1,610,442

 
1,803,415

 
 
Agency mortgage-backed
312,333

 
336,661

 
 
Non-agency mortgage-backed
241,590

 
243,795

 
 
Commercial mortgage-backed
373,117

 
303,214

 
 
Asset-backed
24,406

 
11,429

 
 
Total fixed maturity investments trading
$
4,756,685

 
$
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
 
 
 
 
 
 
At December 31, 2014
Amortized 
Cost
 
Gross
Unrealized    
Gains
 
Gross
Unrealized    
Losses
 
Fair Value
 
Non-Credit
Other-Than-
Temporary
Impairments 
(1)  
 
 
Agency mortgage-backed
$
3,928

 
$
359

 
$
—

 
$
4,287

 
$
—

 
 
Non-agency mortgage-backed
9,478

 
1,985

 
(3
)
 
11,460

 
656

 
 
Commercial mortgage-backed
7,291

 
643

 
—

 
7,934

 
—

 
 
Asset-backed
3,075

 
129

 
—

 
3,204

 
—

 
 
Total fixed maturity investments available for sale
$
23,772

 
$
3,116

 
$
(3
)
 
$
26,885

 
$
656

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Included in Accumulated
Other Comprehensive Income
 
 
 
 
 
 
At 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 described in the following table. 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
 
 
At December 31, 2014
Amortized 
Cost
 
Fair Value
 
Amortized Cost
 
Fair Value
 
Amortized Cost
 
Fair Value
 
 
Due in less than one year
$
153,250

 
$
151,803

 
$
—

 
$
—

 
$
153,250

 
$
151,803

 
 
Due after one through five years
2,976,602

 
2,969,828

 
—

 
—

 
2,976,602

 
2,969,828

 
 
Due after five through ten years
544,285

 
537,636

 
—

 
—

 
544,285

 
537,636

 
 
Due after ten years
140,294

 
145,972

 
—

 
—

 
140,294

 
145,972

 
 
Mortgage-backed
910,897

 
927,040

 
20,697

 
23,681

 
931,594

 
950,721

 
 
Asset-backed
24,285

 
24,406

 
3,075

 
3,204

 
27,360

 
27,610

 
 
Total
$
4,749,613

 
$
4,756,685

 
$
23,772

 
$
26,885

 
$
4,773,385

 
$
4,783,570

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Schedule of Fair Value of Equity Investments Trading
The following table summarizes the fair value of equity investments trading:
 
 
 
 
 
 
 
 
December 31,
2014
 
December 31,
2013
 
 
 
 
 
 
 
 
Financials
$
222,190

 
$
152,905

 
 
Communications and technology
31,376

 
4,300

 
 
Industrial, utilities and energy
28,859

 
25,350

 
 
Consumer
19,522

 
44,115

 
 
Healthcare
16,582

 
15,340

 
 
Basic materials
3,569

 
12,766

 
 
Total
$
322,098

 
$
254,776

 
 
 
 
 
 
 
Schedule of Net Investment Income
The components of net investment income are as follows:
 
 
 
 
 
 
 
 
 
Year ended December 31,
2014
 
2013
 
2012
 
 
Fixed maturity investments
$
100,855

 
$
95,907

 
$
103,330

 
 
Short term investments
944

 
1,698

 
1,007

 
 
Equity investments
3,450

 
2,295

 
1,086

 
 
Other investments
 
 
 
 
 
 
 
Hedge funds and private equity investments
18,867

 
45,810

 
36,635

 
 
Other
11,144

 
73,692

 
35,196

 
 
Cash and cash equivalents
395

 
191

 
277

 
 
 
135,655

 
219,593

 
177,531

 
 
Investment expenses
(11,339
)
 
(11,565
)
 
(11,806
)
 
 
Net investment income
$
124,316

 
$
208,028

 
$
165,725

 
 
 
 
 
 
 
 
 
Schedule of Net Realized and Unrealized Gains On Investments and Net Other-Than-Temporary Impairments
Net realized and unrealized gains on investments and net other-than-temporary impairments are as follows:
 
 
 
 
 
 
 
 
 
Year ended December 31,
2014
 
2013
 
2012
 
 
Gross realized gains
$
45,568

 
$
72,492

 
$
97,787

 
 
Gross realized losses
(14,868
)
 
(50,206
)
 
(16,705
)
 
 
Net realized gains on fixed maturity investments
30,700

 
22,286

 
81,082

 
 
Net unrealized gains (losses) on fixed maturity investments trading
19,680

 
(87,827
)
 
75,279

 
 
Net realized and unrealized (losses) gains on investments-related derivatives
(30,931
)
 
31,058

 
(866
)
 
 
Net realized gains on equity investments trading
10,908

 
26,650

 
—

 
 
Net unrealized gains on equity investments trading
11,076

 
42,909

 
7,626

 
 
Net realized and unrealized gains on investments
$
41,433

 
$
35,076

 
$
163,121

 
 
Total other-than-temporary impairments
$
—

 
$
—

 
$
(395
)
 
 
Portion recognized in other comprehensive income, before taxes
—

 
—

 
52

 
 
Net other-than-temporary impairments
$
—

 
$
—

 
$
(343
)
 
 
 
 
 
 
 
 
 
Schedule of Reclassification out of Accumulated Other Comprehensive Income
The following table provides an analysis of the components of other comprehensive income and reclassifications out of accumulated other comprehensive income.
 
 
 
 
 
 
 
 
 
 
Year ended December 31, 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
140

 
(855
)
 
(715
)
 
 
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
—

 
—

 
—

 
 
Net current-period other comprehensive income (loss)
140

 
(855
)
 
(715
)
 
 
Ending balance
$
303

 
$
3,113

 
$
3,416

 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
Year ended December 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
(1,462
)
 
(481
)
 
(1,943
)
 
 
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
(1,462
)
 
(8,029
)
 
(9,491
)
 
 
Ending balance
$
163

 
$
3,968

 
$
4,131

 
 
 
 
 
 
 
 
 
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 December 31, 2014
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
 
 
Non-agency mortgage-backed
$
—

 
$
—

 
$
69

 
$
(3
)
 
$
69

 
$
(3
)
 
 
Total
$
—

 
$
—

 
$
69

 
$
(3
)
 
$
69

 
$
(3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Less than 12 Months
 
12 Months or Greater
 
Total
 
 
At 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:
 
 
 
 
 
 
 
 
2014
 
2013
 
 
Balance – January 1
$
561

 
$
838

 
 
Additions:
 
 
 
 
 
Amount related to credit loss for which an other-than-temporary impairment was not previously recognized
—

 
—

 
 
Amount related to credit loss for which an other-than-temporary impairment was previously recognized
—

 
—

 
 
Reductions:
 
 
 
 
 
Securities sold during the period
(63
)
 
(277
)
 
 
Securities for which the amount previously recognized in other comprehensive income was recognized in earnings, because the Company intends to sell the security or is more likely than not the Company will be required to sell the security
—

 
—

 
 
Increases in cash flows expected to be collected that are recognized over the remaining life of the security
—

 
—

 
 
Balance – December 31
$
498

 
$
561

 
 
 
 
 
 
 
Schedule of Other Investments
The table below shows the fair value of the Company’s portfolio of other investments:
 
 
 
 
 
 
 
At December 31,
2014
 
2013
 
 
Private equity partnerships
$
281,932

 
$
322,391

 
 
Catastrophe bonds
200,329

 
229,016

 
 
Senior secured bank loan funds
19,316

 
18,048

 
 
Hedge funds
2,570

 
3,809

 
 
Total other investments
$
504,147

 
$
573,264

 
 
 
 
 
 
 
Schedule of Equity Method Investments
The table below shows the Company’s portfolio of investments in other ventures, under equity method:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2014
 
2013
 
 
At December 31,
Investment
 
Ownership %
 
Carrying  Value
 
Investment
 
Ownership %
 
Carrying  Value
 
 
THIG
$
50,000

 
25.0
%
 
$
20,811

 
$
50,000

 
25.0
%
 
$
25,107

 
 
Tower Hill
10,000

 
30.3
%
 
18,991

 
10,000

 
29.4
%
 
14,506

 
 
Tower Hill Re
4,250

 
25.0
%
 
5,162

 
—

 
—
%
 
—

 
 
Tower Hill Signature
500

 
25.0
%
 
5,692

 
500

 
25.0
%
 
2,515

 
 
Total Tower Hill Companies
64,750

 
 
 
50,656

 
60,500

 
 
 
42,128

 
 
Top Layer Re
65,375

 
50.0
%
 
60,911

 
65,375

 
50.0
%
 
50,500

 
 
Angus
10,507

 
40.4
%
 
8,072

 
10,507

 
42.5
%
 
9,180

 
 
Other
3,000

 
22.0
%
 
1,074

 
3,000

 
22.0
%
 
3,808

 
 
Total investments in other ventures, under equity method
$
143,632

 
 
 
$
120,713

 
$
139,382

 
 
 
$
105,616

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Schedule of Equity In Earnings (Losses) of Equity Method Investments
The table below shows the Company’s equity in earnings of other ventures, under equity method:
 
 
 
 
 
 
 
 
 
Year ended December 31,
2014
 
2013
 
2012
 
 
 
 
 
 
 
 
 
 
Tower Hill Companies
$
18,376

 
$
10,270

 
$
4,965

 
 
Top Layer Re
10,411

 
13,836

 
20,792

 
 
Angus
(1,402
)
 
(858
)
 
(2,519
)
 
 
Other
(1,310
)
 
(54
)
 
—

 
 
Total equity in earnings of other ventures
$
26,075

 
$
23,194

 
$
23,238