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Investments (Tables)
 12 Months Ended
Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract]  
Summary of Investment Income
The following table summarizes investment income for the twelve months ended December 31, 2017, 2016 and 2015:
 
 
For the Twelve Months Ended
 
 
December 31, 2017
 
December 31, 2016
 
December 31, 2015
 
 
($ in millions)
Fixed income securities — Available for sale
 
$
133.3

 
$
141.3

 
$
143.4

Fixed income securities — Trading
 
44.0

 
31.6

 
27.8

Short-term investments — Available for sale
 
0.4

 
0.6

 
1.1

Short-term investments — Trading
 
0.8

 
0.2

 
—

Fixed term deposits (included in cash and cash equivalents)
 
6.2

 
3.4

 
3.0

Equity securities — Available for sale
 
—

 
—

 
0.1

Equity securities — Trading
 
13.6

 
20.4

 
20.0

Catastrophe bonds — Trading
 
1.8

 
1.6

 
1.9

Total
 
200.1

 
199.1

 
197.3

Investment expenses
 
(11.1
)
 
(12.0
)
 
(11.8
)
Net investment income
 
$
189.0

 
$
187.1

 
$
185.5
Net Realized and Unrealized Investment Gains and Losses and Change in Unrealized Gains and Losses on Investments
The following table summarizes the net realized and unrealized investment gains and losses recorded in the statement of operations and the change in unrealized gains and losses on investments recorded in other comprehensive income for the twelve months ended December 31, 2017, 2016 and 2015:
 
 
For the Twelve Months Ended
 
 
December 31, 2017
 
December 31, 2016
 
December 31, 2015
 
 
($ in millions)
Available for sale:
 
 
 
 
 
 
Fixed income securities — gross realized gains
 
$
10.2

 
$
18.6

 
$
11.7

Fixed income securities — gross realized (losses)
 
(6.6
)
 
(8.3
)
 
(2.7
)
Equity securities — gross realized gains
 
—

 
—

 
31.9

Equity securities — gross realized (losses)
 
—

 
—

 
(3.0
)
Short-term investments — gross realized gains
 
0.1

 
—

 
—

Cash and cash equivalents — gross realized gains
 
0.4

 
0.2

 
—

Cash and cash equivalents — gross realized (losses)
 
(0.1
)
 
(0.6
)
 
—

Other-than-temporary impairments
 
(0.7
)
 
—

 
—

Trading:
 
 
 
 
 
 
Fixed income securities — gross realized gains
 
9.7

 
12.6

 
4.9

Fixed income securities — gross realized (losses)
 
(4.5
)
 
(7.3
)
 
(6.1
)
Short-term investments — gross realized gains
 
2.7

 
—

 
—

Cash and cash equivalents — gross realized gains
 
1.3

 
0.1

 
—

Cash and cash equivalents — gross realized (losses)
 
—

 
(0.3
)
 
—

Equity securities — gross realized gains
 
59.0

 
54.1

 
46.0

Equity securities — gross realized (losses)
 
(13.7
)
 
(46.3
)
 
(31.7
)
Catastrophe bonds — net unrealized (losses)/gains
 
(2.4
)
 
—

 
(0.3
)
Net change in gross unrealized gains (losses)
 
60.3

 
22.5

 
(33.1
)
Other investments, equity method:
 
 
 
 
 
 
Gross realized and unrealized (loss) in MVI
 
(0.1
)
 
(0.3
)
 
—

Gross unrealized gain/(loss) in Chaspark
 
0.9

 
0.3

 
(0.6
)
Gross realized and unrealized (loss) in Bene
 
(0.3
)
 
(0.1
)
 
—

Gross realized gain on sale of AgriLogic
 
4.3

 
—

 
—

Total net realized and unrealized investment gains recorded in the statement of operations
 
$
120.5

 
$
45.2

 
$
17.0

 
 
 
 
 
 
 
Change in available for sale net unrealized gains:
 
 
 
 
 
 
Fixed income securities
 
(14.8
)
 
(39.0
)
 
(82.2
)
Short-term investments
 
—

 
—

 
(0.1
)
Equity securities
 
—

 
—

 
(27.3
)
Total change in pre-tax available for sale unrealized gains
 
(14.8
)
 
(39.0
)
 
(109.6
)
Change in taxes
 
2.0

 
1.3

 
4.4

Total change in net unrealized gains, net of taxes recorded in other comprehensive income
 
$
(12.8
)
 
$
(37.7
)
 
$
(105.2
)
Cost, Gross Unrealized Gains and Losses, and Estimated Fair Value of Available for Sale Investments in Fixed Income Maturities and Short-Term Investments
The following tables present the cost or amortized cost, gross unrealized gains and losses and estimated fair market value of available for sale investments in fixed income securities and short-term investments as at December 31, 2017 and December 31, 2016:
 
 
As at December 31, 2017
 
 
Cost or
Amortized Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Market
Value
 
 
($ in millions)
U.S. government
 
$
1,166.5

 
$
4.5

 
$
(11.6
)
 
$
1,159.4

U.S. agency
 
51.8

 
0.5

 
(0.2
)
 
52.1

Municipal
 
53.0

 
2.1

 
(0.2
)
 
54.9

Corporate
 
2,391.4

 
36.1

 
(11.8
)
 
2,415.7

Non-U.S. government-backed corporate
 
91.5

 
0.3

 
(0.5
)
 
91.3

Non-U.S government
 
479.7

 
6.4

 
(1.2
)
 
484.9

Asset-backed
 
26.3

 
—

 
(0.1
)
 
26.2

Non-agency commercial mortgage-backed
 
—

 
—

 
—

 
—

Agency mortgage-backed
 
941.0

 
13.7

 
(8.2
)
 
946.5

Total fixed income securities — Available for sale
 
5,201.2

 
63.6

 
(33.8
)
 
5,231.0

Total short-term investments — Available for sale
 
90.0

 
—

 
(0.1
)
 
89.9

Total
 
$
5,291.2

 
$
63.6

 
$
(33.9
)
 
$
5,320.9


 
 
As at December 31, 2016
 
 
Cost or
Amortized Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Market
Value
 
 
($ in millions)
U.S. government
 
$
1,207.9

 
$
9.4

 
$
(11.2
)
 
$
1,206.1

U.S. agency
 
117.7

 
1.9

 
—

 
119.6

Municipal
 
23.2

 
1.6

 
(0.4
)
 
24.4

Corporate
 
2,566.9

 
39.6

 
(20.0
)
 
2,586.5

Non-U.S. government-backed corporate
 
89.2

 
0.7

 
(0.1
)
 
89.8

Non-U.S government
 
477.7

 
11.8

 
(0.8
)
 
488.7

Asset-backed
 
62.6

 
0.4

 
—

 
63.0

Non-agency commercial mortgage-backed
 
12.3

 
0.3

 
—

 
12.6

Agency mortgage-backed
 
1,062.6

 
19.6

 
(8.3
)
 
1,073.9

Total fixed income securities — Available for sale
 
5,620.1

 
85.3

 
(40.8
)
 
5,664.6

Total short-term investments — Available for sale
 
145.3

 
—

 
—

 
145.3

Total
 
$
5,765.4

 
$
85.3

 
$
(40.8
)
 
$
5,809.9
Cost, Gross Unrealized Gains and Losses, and Estimated Fair Value of Trading Investments in Fixed Income Maturities
The following tables present the cost or amortized cost, gross unrealized gains and losses, and estimated fair market value of trading investments in fixed income securities, short-term investments, equity securities and catastrophe bonds as at December 31, 2017 and December 31, 2016:
 
 
As at December 31, 2017
 
 
Cost or
Amortized Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Market
Value
 
 
($ in millions)
U.S. government
 
$
162.3

 
$
0.4

 
$
(0.8
)
 
$
161.9

Municipal
 
32.4

 
—

 
(0.2
)
 
32.2

Corporate
 
1,036.5

 
14.0

 
(4.2
)
 
1,046.3

Non-U.S. government-backed corporate
 
1.0

 
—

 
—

 
1.0

Non-U.S. government
 
196.1

 
6.9

 
(0.5
)
 
202.5

Asset-backed
 
9.9

 
—

 
—

 
9.9

Agency mortgage-backed
 
196.7

 
0.2

 
(1.4
)
 
195.5

Total fixed income securities — Trading
 
1,634.9

 
21.5

 
(7.1
)
 
1,649.3

Total short-term investments — Trading
 
73.0

 
—

 
—

 
73.0

Total equity securities — Trading
 
414.8

 
83.5

 
(7.3
)
 
491.0

Total catastrophe bonds — Trading
 
33.5

 
—

 
(1.1
)
 
32.4

Total
 
$
2,156.2

 
$
105.0

 
$
(15.5
)
 
$
2,245.7

 
 
As at December 31, 2016
 
 
Cost or
Amortized Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Market
Value
 
 
($ in millions)
U.S. government
 
$
82.8

 
$
0.4

 
$
(0.8
)
 
$
82.4

Municipal
 
15.7

 
—

 
(0.2
)
 
15.5

Corporate
 
817.8

 
9.9

 
(7.1
)
 
820.6

Non-U.S government
 
203.4

 
3.5

 
(4.1
)
 
202.8

Asset-backed
 
14.5

 
—

 
—

 
14.5

Agency mortgage-backed

 
130.6

 
0.2

 
(0.9
)
 
129.9

Total fixed income securities — Trading
 
1,264.8

 
14.0

 
(13.1
)
 
1,265.7

Total short-term investments — Trading
 
185.4

 
—

 
—

 
185.4

Total equity securities — Trading
 
554.3

 
55.4

 
(25.0
)
 
584.7

Total catastrophe bonds — Trading
 
42.5

 
—

 
—

 
42.5

Total
 
$
2,047.0

 
$
69.4

 
$
(38.1
)
 
$
2,078.3
Other Investments
The table below shows the Company’s investments in MVI, Chaspark, Bene, Digital Re and Crop Re for the twelve months ended December 31, 2017 and 2016:
 
 
MVI
 
Chaspark
 
Bene
 
Digital Re
 
Crop Re
 
Total
 
 
 
 
 
Opening undistributed value of investment as at January 1, 2017
 
$
0.5

 
$
8.4

 
$
3.2

 
$
—

 
$
—

 
$
12.1

Investment in the period
 
0.1

 
—

 
—

 
2.3

 
62.5

 
64.9

Goodwill
 
—

 
—

 
—

 
(1.8
)
 
—

 
(1.8
)
Distribution received
 
—

 
(9.3
)
 
—

 
—

 
—

 
(9.3
)
Unrealized (loss)/gain for the twelve months to December 31, 2017
 
(0.1
)
 
0.9

 
(0.3
)
 
—

 
—

 
0.5

Closing value of investment as at December 31, 2017
 
$
0.5

 
$
—

 
$
2.9

 
$
0.5

 
$
62.5

 
$
66.4

 
 
 
 
 
 
 
 
 
 
 
 
 
Opening undistributed value of investment as at January 1, 2016
 
$
0.8

 
$
8.1

 
$
—

 
$
—

 
$
—

 
$
8.9

Investment in the period
 
—

 
—

 
3.3

 
—

 
—

 
3.3

Unrealized (loss)/gain for the twelve months to December 31, 2016
 
(0.3
)
 
0.3

 
(0.1
)
 
—

 
—

 
(0.1
)
Closing value of investment as at December 31, 2016
 
$
0.5

 
$
8.4

 
$
3.2

 
$
—

 
$
—

 
$
12.1
Summary of Fixed Maturities
The scheduled maturity distribution of the Company’s available for sale fixed income securities as at December 31, 2017 and December 31, 2016 is set forth below. Actual maturities may differ from contractual maturities because issuers of securities may have the right to call or prepay obligations with or without call or prepayment penalties.
 
 
As at December 31, 2017
 
 
Amortized
Cost or Cost
 
Fair Market
Value
 
Average
S&P Ratings by
Maturity
 
 
($ in millions)
Due one year or less
 
$
561.7

 
$
562.4

 
AA
Due after one year through five years
 
2,486.7

 
2,492.2

 
AA-
Due after five years through ten years
 
1,092.2

 
1,097.4

 
A+
Due after ten years
 
93.3

 
106.3

 
A
Total — Government and corporate
 
4,233.9

 
4,258.3

 
 
Agency mortgage-backed
 
941.0

 
946.5

 
AA+
Asset-backed
 
26.3

 
26.2

 
AAA
Total fixed income securities — Available for sale
 
$
5,201.2

 
$
5,231.0

 
 

 
 
At December 31, 2016
 
 
Amortized
Cost or Cost
 
Fair Market
Value
 
Average
S&P Ratings by
Maturity
 
 
($ in millions)
Due one year or less
 
$
567.2

 
$
570.0

 
AA
Due after one year through five years
 
2,643.7

 
2,671.9

 
AA-
Due after five years through ten years
 
1,172.3

 
1,168.1

 
A+
Due after ten years
 
99.4

 
105.1

 
A+
Total — Government and corporate
 
4,482.6

 
4,515.1

 
 
Non-agency commercial mortgage-backed
 
12.3

 
12.6

 
AAA
Agency mortgage-backed
 
1,062.6

 
1,073.9

 
AA+
Asset-backed
 
62.6

 
63.0

 
AAA
Total fixed income securities — Available for sale
 
$
5,620.1

 
$
5,664.6

 
 
Aggregate Fair Value and Gross Unrealized Loss by Type of Security
The following tables summarize, by type of security, the aggregate fair value and gross unrealized loss by length of time the security has been in an unrealized loss position for the Company’s available for sale portfolio as at December 31, 2017 and December 31, 2016:
 
 
December 31, 2017
 
 
0-12 months
 
Over 12 months
 
Total
 
 
Fair
Market
Value
 
Gross
Unrealized
Losses
 
Fair
Market
Value
 
Gross
Unrealized
Losses
 
Fair
Market
Value
 
Gross
Unrealized
Losses
 
Number of
Securities
 
 
($ in millions)
U.S. government
 
$
652.1

 
$
(5.1
)
 
$
259.8

 
$
(6.5
)
 
$
911.9

 
$
(11.6
)
 
101
U.S. agency
 
20.1

 
(0.2
)
 
6.1

 
—

 
26.2

 
(0.2
)
 
10
Municipal
 
28.5

 
(0.2
)
 
—

 
—

 
28.5

 
(0.2
)
 
9
Corporate
 
699.3

 
(3.4
)
 
360.7

 
(8.4
)
 
1,060.0

 
(11.8
)
 
412
Non-U.S. government-backed corporate
 
43.5

 
(0.3
)
 
13.3

 
(0.2
)
 
56.8

 
(0.5
)
 
15
Non-U.S government
 
206.2

 
(0.8
)
 
32.0

 
(0.4
)
 
238.2

 
(1.2
)
 
47
Asset-backed
 
11.1

 
—

 
10.5

 
(0.1
)
 
21.6

 
(0.1
)
 
11
Agency mortgage-backed
 
257.6

 
(1.9
)
 
301.9

 
(6.3
)
 
559.5

 
(8.2
)
 
156
Total fixed income securities — Available for sale
 
1,918.4

 
(11.9
)
 
984.3

 
(21.9
)
 
2,902.7

 
(33.8
)
 
761
Total short-term investments — Available for sale
 
46.9

 
(0.1
)
 
—

 
—

 
46.9

 
(0.1
)
 
8
Total
 
$
1,965.3

 
$
(12.0
)
 
$
984.3

 
$
(21.9
)
 
$
2,949.6

 
$
(33.9
)
 
769
 
 
 
December 31, 2016
 
 
0-12 months
 
Over 12 months
 
Total
 
 
Fair
Market
Value
 
Gross
Unrealized
Losses
 
Fair
Market
Value
 
Gross
Unrealized
Losses
 
Fair
Market
Value
 
Gross
Unrealized
Losses
 
Number of
Securities
 
 
($ in millions)
U.S. government
 
$
724.4

 
$
(11.2
)
 
$
—

 
$
—

 
$
724.4

 
$
(11.2
)
 
78
U.S. agency
 
14.1

 
—

 
—

 
—

 
14.1

 
—

 
4
Municipal
 
7.7

 
(0.2
)
 
0.8

 
(0.2
)
 
8.5

 
(0.4
)
 
6
Corporate
 
1,044.4

 
(19.4
)
 
6.6

 
(0.6
)
 
1,051.0

 
(20.0
)
 
386
Non-U.S. government-backed corporate
 
29.6

 
(0.1
)
 
—

 
—

 
29.6

 
(0.1
)
 
11
Non-U.S government
 
143.5

 
(0.8
)
 
1.0

 
—

 
144.5

 
(0.8
)
 
29
Asset-backed
 
25.8

 
—

 
1.4

 
—

 
27.2

 
—

 
15
Agency mortgage-backed
 
527.6

 
(7.6
)
 
27.2

 
(0.7
)
 
554.8

 
(8.3
)
 
148
Total fixed income securities — Available for sale
 
2,517.1

 
(39.3
)
 
37.0

 
(1.5
)
 
2,554.1

 
(40.8
)
 
677
Total short-term investments — Available for sale
 
1.1

 
—

 
—

 
—

 
1.1

 
—

 
2
Total
 
$
2,518.2

 
$
(39.3
)
 
$
37.0

 
$
(1.5
)
 
$
2,555.2

 
$
(40.8
)
 
679