v2.4.0.8
INVESTMENTS (TABLES)
 12 Months Ended
Dec. 31, 2013
Investments, Debt and Equity Securities [Abstract]  
AMORTIZED COST/COST AND FAIR VALUES OF FIXED MATURITIES AND EQUITIES [Table Text Block]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortized
Cost or
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
Non-credit
OTTI
in AOCI(5)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
At December 31, 2013
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities
 
 
 
 
 
 
 
 
 
 
 
U.S. government and agency
$
1,421,245

 
$
1,405

 
$
(33,952
)
 
$
1,388,698

 
$
—

 
 
Non-U.S. government
1,208,384

 
17,990

 
(49,992
)
 
1,176,382

 
—

 
 
Corporate debt
3,533,585

 
84,881

 
(10,228
)
 
3,608,238

 
—

 
 
Agency RMBS(1)
2,485,139

 
21,979

 
(58,291
)
 
2,448,827

 
—

 
 
CMBS(2)
790,095

 
11,285

 
(3,966
)
 
797,414

 
—

 
 
Non-Agency RMBS
65,590

 
2,375

 
(398
)
 
67,567

 
(868
)
 
 
ABS(3)
955,274

 
6,871

 
(8,694
)
 
953,451

 
—

 
 
Municipals(4)
1,527,834

 
32,432

 
(14,516
)
 
1,545,750

 
—

 
 
Total fixed maturities
$
11,987,146

 
$
179,218

 
$
(180,037
)
 
$
11,986,327

 
$
(868
)
 
 
Equity securities
 
 
 
 
 
 
 
 
 
 
 
Common stocks
345,759

 
98,742

 
(6,183
)
 
438,318

 
 
 
 
Exchange-traded funds
106,762

 
32,085

 
—

 
138,847

 
 
 
 
Non-U.S. bond mutual funds
113,698

 
11,124

 
—

 
124,822

 
 
 
 
Total equity securities
$
566,219

 
$
141,951

 
$
(6,183
)
 
$
701,987

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
At December 31, 2012
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities
 
 
 
 
 
 
 
 
 
 
 
U.S. government and agency
$
1,413,520

 
$
9,484

 
$
(119
)
 
$
1,422,885

 
$
—

 
 
Non-U.S. government
1,076,501

 
30,276

 
(2,201
)
 
1,104,576

 
—

 
 
Corporate debt
3,746,616

 
135,658

 
(5,892
)
 
3,876,382

 
—

 
 
Agency RMBS(1)
2,594,180

 
67,398

 
(1,670
)
 
2,659,908

 
—

 
 
CMBS(2)
814,211

 
25,999

 
(126
)
 
840,084

 
—

 
 
Non-Agency RMBS
93,266

 
2,503

 
(570
)
 
95,199

 
(884
)
 
 
ABS(3)
639,614

 
10,774

 
(7,182
)
 
643,206

 
—

 
 
Municipals(4)
1,227,764

 
58,770

 
(725
)
 
1,285,809

 
—

 
 
Total fixed maturities
$
11,605,672

 
$
340,862

 
$
(18,485
)
 
$
11,928,049

 
$
(884
)
 
 
Equity securities
 
 
 
 
 
 
 
 
 
 
 
Common stocks
398,975

 
51,821

 
(7,398
)
 
443,398

 
 
 
 
Exchange-traded funds
109,434

 
9,727

 
—

 
119,161

 
 
 
 
Non-U.S. bond mutual funds
99,897

 
4,092

 
—

 
103,989

 
 
 
 
Total equity securities
$
608,306

 
$
65,640

 
$
(7,398
)
 
$
666,548

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
Residential mortgage-backed securities (RMBS) originated by U.S. agencies.
(2)
Commercial mortgage-backed securities (CMBS).
(3)
Asset-backed securities (ABS) include debt tranched securities collateralized primarily by auto loans, student loans, credit cards, and other asset types. This asset class also includes collateralized loan obligations (CLOs) and collateralized debt obligations (CDOs).
(4)
Municipals include bonds issued by states, municipalities and political subdivisions.
(5)
Represents the non-credit component of the other-than-temporary impairment (OTTI) losses, adjusted for subsequent sales of securities. It does not include the change in fair value subsequent to the impairment measurement date.
CONTRACTUAL MATURITIES OF FIXED MATURITIES [Table Text Block]
 
 
 
 
 
 
 
 
 
 
Amortized
Cost
 
Fair
Value
 
% of Total
Fair Value
 
 
 
 
 
 
 
 
 
 
At December 31, 2013
 
 
 
 
 
 
 
Maturity
 
 
 
 
 
 
 
Due in one year or less
$
710,079

 
$
717,052

 
5.9
%
 
 
Due after one year through five years
5,030,728

 
5,116,060

 
42.7
%
 
 
Due after five years through ten years
1,852,877

 
1,791,835

 
14.9
%
 
 
Due after ten years
97,364

 
94,121

 
0.8
%
 
 
 
7,691,048

 
7,719,068

 
64.3
%
 
 
Agency RMBS
2,485,139

 
2,448,827

 
20.4
%
 
 
CMBS
790,095

 
797,414

 
6.7
%
 
 
Non-Agency RMBS
65,590

 
67,567

 
0.6
%
 
 
ABS
955,274

 
953,451

 
8.0
%
 
 
Total
$
11,987,146

 
$
11,986,327

 
100.0
%
 
 
 
 
 
 
 
 
 
 
At December 31, 2012
 
 
 
 
 
 
 
Maturity
 
 
 
 
 
 
 
Due in one year or less
$
651,111

 
$
657,045

 
5.5
%
 
 
Due after one year through five years
4,880,039

 
4,989,151

 
41.8
%
 
 
Due after five years through ten years
1,847,295

 
1,951,569

 
16.4
%
 
 
Due after ten years
85,956

 
91,887

 
0.8
%
 
 
 
7,464,401

 
7,689,652

 
64.5
%
 
 
Agency RMBS
2,594,180

 
2,659,908

 
22.3
%
 
 
CMBS
814,211

 
840,084

 
7.0
%
 
 
Non-Agency RMBS
93,266

 
95,199

 
0.8
%
 
 
ABS
639,614

 
643,206

 
5.4
%
 
 
Total
$
11,605,672

 
$
11,928,049

 
100.0
%
 
 
 
 
 
 
 
 
 
FIXED MATURITIES AND EQUITIES IN AN UNREALIZED LOSS POSITION [Table Text Block]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
12 months or greater
 
Less than 12 months
 
Total
 
 
  
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
At December 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government and agency
$
—

 
$
—

 
$
982,307

 
$
(33,952
)
 
$
982,307

 
$
(33,952
)
 
 
Non-U.S. government
35,577

 
(3,430
)
 
420,622

 
(46,562
)
 
456,199

 
(49,992
)
 
 
Corporate debt
27,696

 
(802
)
 
606,592

 
(9,426
)
 
634,288

 
(10,228
)
 
 
Agency RMBS
144,468

 
(5,247
)
 
1,478,527

 
(53,044
)
 
1,622,995

 
(58,291
)
 
 
CMBS
13,319

 
(116
)
 
298,863

 
(3,850
)
 
312,182

 
(3,966
)
 
 
Non-Agency RMBS
4,287

 
(315
)
 
5,319

 
(83
)
 
9,606

 
(398
)
 
 
ABS
37,765

 
(2,941
)
 
553,803

 
(5,753
)
 
591,568

 
(8,694
)
 
 
Municipals
8,408

 
(615
)
 
543,474

 
(13,901
)
 
551,882

 
(14,516
)
 
 
Total fixed maturities
$
271,520

 
$
(13,466
)
 
$
4,889,507

 
$
(166,571
)
 
$
5,161,027

 
$
(180,037
)
 
 
Equity securities
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stocks
$
3,499

 
$
(398
)
 
$
48,828

 
$
(5,785
)
 
$
52,327

 
$
(6,183
)
 
 
Total equity securities
$
3,499

 
$
(398
)
 
$
48,828

 
$
(5,785
)
 
$
52,327

 
$
(6,183
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
At December 31, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government and agency
$
—

 
$
—

 
$
119,730

 
$
(119
)
 
$
119,730

 
$
(119
)
 
 
Non-U.S. government
44,568

 
(1,453
)
 
153,134

 
(748
)
 
197,702

 
(2,201
)
 
 
Corporate debt
95,511

 
(2,947
)
 
451,651

 
(2,945
)
 
547,162

 
(5,892
)
 
 
Agency RMBS
9,557

 
(148
)
 
521,400

 
(1,522
)
 
530,957

 
(1,670
)
 
 
CMBS
1,749

 
(16
)
 
69,615

 
(110
)
 
71,364

 
(126
)
 
 
Non-Agency RMBS
11,026

 
(537
)
 
115

 
(33
)
 
11,141

 
(570
)
 
 
ABS
99,514

 
(7,034
)
 
39,296

 
(148
)
 
138,810

 
(7,182
)
 
 
Municipals
6,386

 
(270
)
 
77,766

 
(455
)
 
84,152

 
(725
)
 
 
Total fixed maturities
$
268,311

 
$
(12,405
)
 
$
1,432,707

 
$
(6,080
)
 
$
1,701,018

 
$
(18,485
)
 
 
Equity securities
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stocks
$
11,554

 
$
(1,793
)
 
$
95,697

 
$
(5,605
)
 
$
107,251

 
$
(7,398
)
 
 
Total equity securities
$
11,554

 
$
(1,793
)
 
$
95,697

 
$
(5,605
)
 
$
107,251

 
$
(7,398
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PORTFOLIO OF OTHER INVESTMENTS [Table Text Block]
 
 
 
 
 
 
 
 
 
 
 
  
Fair Value
 
Redemption Frequency
(if currently eligible)
 
Redemption
Notice Period
 
 
 
 
 
 
 
 
 
 
 
 
At December 31, 2013
 
 
 
 
 
 
 
 
 
Long/short equity funds
$
425,444

 
41
%
 
Monthly, Quarterly, Semi-annually
 
30-60 days
 
 
Multi-strategy funds
285,155

 
27
%
 
Quarterly, Semi-annually
 
60-95 days
 
 
Event-driven funds
190,458

 
18
%
 
Quarterly, Annually
 
45-60 days
 
 
Leveraged bank loan funds
48,753

 
5
%
 
Quarterly
 
65 days
 
 
Direct lending funds
22,134

 
2
%
 
n/a
 
n/a
 
 
CLO - Equities
73,866

 
7
%
 
n/a
 
n/a
 
 
Total other investments
$
1,045,810

 
100
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
At December 31, 2012
 
 
 
 
 
 
 
 
 
Long/short equity funds
$
302,680

 
36
%
 
Monthly, Quarterly, Semi-annually
 
30-60 days
 
 
Multi-strategy funds
244,075

 
29
%
 
Quarterly, Semi-annually
 
60-95 days
 
 
Event-driven funds
171,479

 
20
%
 
Quarterly, Annually
 
45-95 days
 
 
Leveraged bank loan funds
62,768

 
8
%
 
Quarterly
 
65 days
 
 
Direct lending funds
—

 
—
%
 
n/a
 
n/a
 
 
CLO - Equities
62,435

 
7
%
 
n/a
 
n/a
 
 
Total other investments
$
843,437

 
100
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
n/a – not applicable
NET INVESTMENT INCOME [Table Text Block]
 
 
 
 
 
 
 
 
 
Year ended December 31,
2013
 
2012
 
2011
 
 
 
 
 
 
 
 
 
 
Fixed maturities
$
293,609

 
$
304,400

 
$
337,616

 
 
Other investments
128,814

 
87,660

 
31,856

 
 
Equity securities
10,897

 
11,904

 
11,186

 
 
Cash and cash equivalents
6,337

 
4,528

 
5,697

 
 
Short-term investments
1,181

 
596

 
1,592

 
 
Gross investment income
440,838

 
409,088

 
387,947

 
 
Investment expenses
(31,526
)
 
(28,131
)
 
(25,517
)
 
 
Net investment income
$
409,312

 
$
380,957

 
$
362,430

 
 
 
 
 
 
 
 
 
NET REALIZED INVESTMENT GAINS (LOSSES) [Table Text Block]
 
 
 
 
 
 
 
 
 
Year ended December 31,
2013
 
2012
 
2011
 
 
 
 
 
 
 
 
 
 
Gross realized gains
 
 
 
 
 
 
 
Fixed maturities and short-term investments(1)
$
120,932

 
$
242,082

 
$
243,296

 
 
Equities
54,564

 
36,411

 
16,992

 
 
Gross realized gains
175,496

 
278,493

 
260,288

 
 
Gross realized losses
 
 
 
 
 
 
 
Fixed maturities and short-term investments(1)
(87,894
)
 
(101,844
)
 
(108,490
)
 
 
Equities
(10,407
)
 
(23,530
)
 
(14,526
)
 
 
Gross realized losses
(98,301
)
 
(125,374
)
 
(123,016
)
 
 
Net OTTI recognized in earnings
(9,362
)
 
(24,234
)
 
(15,861
)
 
 
Change in fair value of investment derivatives(2)
7,731

 
(9,170
)
 
4,431

 
 
Fair value hedges(2)
—

 
7,754

 
(4,403
)
 
 
Net realized investment gains
$
75,564

 
$
127,469

 
$
121,439

 
 
 
 
 
 
 
 
 
(1)
Includes $37 million of gains in 2012 and $11 million of losses in 2011 relating to previously unrealized foreign exchange currency amounts on the hedged fixed maturity portfolios. The hedged portfolio was sold and all associated foreign exchange contracts were fully settled during 2012 so there is no impact on the 2013 figures.
(2)
Refer to Note 7 – Derivative Instruments
OTTI RECOGNIZED IN EARNINGS BY ASSET CLASS [Table Text Block]
 
 
 
 
 
 
 
 
 
Year ended December 31,
2013
 
2012
 
2011
 
 
 
 
 
 
 
 
 
 
Fixed maturities:
 
 
 
 
 
 
 
Non-U.S. government
$
120

 
$
3,281

 
$
—

 
 
Corporate debt
5,802

 
1,821

 
1,954

 
 
Non-Agency RMBS
57

 
2,016

 
717

 
 
ABS
129

 
795

 
61

 
 
Municipals
639

 
—

 
483

 
 
 
6,747

 
7,913

 
3,215

 
 
Equity Securities
 
 
 
 
 
 
 
Common stocks
2,092

 
7,318

 
12,646

 
 
Exchange-traded funds
523

 
9,003

 
—

 
 
 
2,615

 
16,321

 
12,646

 
 
Total OTTI recognized in earnings
$
9,362

 
$
24,234

 
$
15,861

 
 
 
 
 
 
 
 
 
ROLL FORWARD OF CREDIT LOSSES FOR WHICH A PORTION OF OTTI RECOGNIZED IN AOCI [Table Text Block]
 
 
 
 
 
 
 
Year ended December 31,
2013
 
2012
 
 
 
 
 
 
 
 
Balance at beginning of period
$
1,809

 
$
2,061

 
 
Credit impairments recognized on securities not previously impaired
—

 
—

 
 
Additional credit impairments recognized on securities previously impaired
—

 
—

 
 
Change in timing of future cash flows on securities previously impaired
—

 
—

 
 
Intent to sell of securities previously impaired
—

 
—

 
 
Securities sold/redeemed/matured
(215
)
 
(252
)
 
 
Balance at end of period
$
1,594

 
$
1,809

 
 
 
 
 
 
 
SIGNIFICANT INPUTS TO ESTIMATE CREDIT LOSSES FOR CLO - DEBT [Table Text Block]
 
 
 
 
 
 
 
At December 31,
2013
 
2012
 
 
 
 
 
 
 
 
Default rate
4.0%
 
4.0%
 
 
Loss severity rate
53.5%
 
53.5%
 
 
Collateral spreads
2.7% - 3.5%
 
2.5% - 3.7%
 
 
 
 
 
 
 
RESTRICTED INVESTMENTS [Table Text Block]
 
 
 
 
 
 
 
 
At December 31,
 
2013
 
2012
 
 
 
 
 
 
 
 
 
Collateral in Trust for inter-company agreements
 
$
2,261,081

 
$
2,134,931

 
 
Collateral for secured letter of credit facility
 
777,828

 
470,062

 
 
Collateral in Trust for third party agreements
 
276,839

 
245,539

 
 
Securities on deposit with regulatory authorities
 
58,327

 
59,456

 
 
Total restricted investments
 
$
3,374,075

 
$
2,909,988