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Investments (Tables)
 12 Months Ended
Dec. 31, 2018
Investments, Debt and Equity Securities [Abstract]  
Summary of Investment Income
The following table summarizes investment income for the twelve months ended December 31, 2018, 2017 and 2016:
 
 
For the Twelve Months Ended
 
 
December 31, 2018
 
December 31, 2017
 
December 31, 2016
 
 
($ in millions)
Fixed income securities — Available for sale
 
$
134.1

 
$
133.3

 
$
141.3

Fixed income securities — Trading
 
49.6

 
44.0

 
31.6

Short-term investments — Available for sale
 
1.4

 
0.4

 
0.6

Short-term investments — Trading
 
0.4

 
0.8

 
0.2

Fixed term deposits (included in cash and cash equivalents)
 
14.2

 
6.2

 
3.4

Equity securities — Trading
 
2.1

 
13.6

 
20.4

Catastrophe bonds — Trading
 
2.8

 
1.8

 
1.6

Other investments, at fair value
 
2.5

 
—

 
—

Total
 
207.1

 
200.1

 
199.1

Investment expenses
 
(8.9
)
 
(11.1
)
 
(12.0
)
Net investment income
 
$
198.2

 
$
189.0

 
$
187.1
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, 2018, 2017 and 2016:
 
 
For the Twelve Months Ended
 
 
December 31, 2018
 
December 31, 2017
 
December 31, 2016
 
 
($ in millions)
Available for sale:
 
 
 
 
 
 
Fixed income securities — gross realized gains
 
$
6.4

 
$
10.2

 
$
18.6

Fixed income securities — gross realized (losses)
 
(11.4
)
 
(6.6
)
 
(8.3
)
Short-term investments — gross realized gains
 
—

 
0.1

 
—

Short-term investments — gross realized (losses)
 
—

 
—

 
—

Cash and cash equivalents — gross realized gains
 
0.3

 
0.4

 
0.2

Cash and cash equivalents — gross realized (losses)
 
(0.5
)
 
(0.1
)
 
(0.6
)
Other-than-temporary impairments
 
—

 
(0.7
)
 
—

Trading:
 
 
 
 
 
 
Fixed income securities — gross realized gains
 
4.6

 
9.7

 
12.6

Fixed income securities — gross realized (losses)
 
(25.0
)
 
(4.5
)
 
(7.3
)
Short-term investments — gross realized gains
 
0.1

 
2.7

 
—

Short-term investments — gross realized (losses)
 
(4.2
)
 
—

 
—

Cash and cash equivalents — gross realized gains
 
1.5

 
1.3

 
0.1

Cash and cash equivalents — gross realized (losses)
 
(0.3
)
 
—

 
(0.3
)
Equity securities — gross realized gains
 
94.5

 
59.0

 
54.1

Equity securities — gross realized (losses)
 
(20.1
)
 
(13.7
)
 
(46.3
)
Catastrophe bonds — net unrealized gains (losses)
 
2.2

 
(2.4
)
 
—

Net change in gross unrealized (losses) gains
 
(112.1
)
 
60.3

 
22.5

Other investments, equity method:
 
 
 
 
 
 
Gross realized and unrealized (loss) in MVI
 
(0.2
)
 
(0.1
)
 
(0.3
)
Gross unrealized gain in Chaspark
 
—

 
0.9

 
0.3

Gross realized and unrealized gain in Digital Risk
 
0.4

 
—

 
—

Gross realized and unrealized (loss) in Bene
 
(0.9
)
 
(0.3
)
 
(0.1
)
Gross realized gain on sale of AgriLogic
 
—

 
4.3

 
—

Total net realized and unrealized investment (losses)/gains recorded in the statement of operations
 
$
(64.7
)
 
$
120.5

 
$
45.2

 
 
 
 
 
 
 
Change in available for sale net unrealized (losses):
 
 
 
 
 
 
Fixed income securities
 
(81.3
)
 
(14.8
)
 
(39.0
)
Change in taxes
 
4.8

 
2.0

 
1.3

Total change in net unrealized (losses), net of taxes recorded in other comprehensive income
 
$
(76.5
)
 
$
(12.8
)
 
$
(37.7
)
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, 2018 and December 31, 2017:
 
 
As at December 31, 2018
 
 
Cost or
Amortized Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Market
Value
 
 
($ in millions)
U.S. government
 
$
1,413.5

 
$
6.8

 
$
(16.1
)
 
$
1,404.2

U.S. agency
 
47.7

 
0.1

 
(0.4
)
 
47.4

Municipal
 
46.7

 
1.3

 
(0.8
)
 
47.2

Corporate
 
2,238.9

 
7.8

 
(40.5
)
 
2,206.2

Non-U.S. government-backed corporate
 
93.2

 
0.2

 
(0.2
)
 
93.2

Non-U.S government
 
399.8

 
3.6

 
(0.8
)
 
402.6

Asset-backed
 
17.4

 
—

 
(0.1
)
 
17.3

Agency mortgage-backed
 
1,025.1

 
6.5

 
(19.0
)
 
1,012.6

Total fixed income securities — Available for sale
 
5,282.3

 
26.3

 
(77.9
)
 
5,230.7

Total short-term investments — Available for sale
 
105.6

 
—

 
—

 
105.6

Total
 
$
5,387.9

 
$
26.3

 
$
(77.9
)
 
$
5,336.3


 
 
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

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
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, 2018 and December 31, 2017:
 
 
As at December 31, 2018
 
 
Cost or
Amortized Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Market
Value
 
 
($ in millions)
U.S. government
 
$
146.6

 
$
1.6

 
$
(0.5
)
 
$
147.7

Municipal
 
2.8

 
—

 
(0.1
)
 
2.7

Corporate
 
734.2

 
2.6

 
(16.6
)
 
720.2

Non-U.S. government
 
268.7

 
1.9

 
(5.2
)
 
265.4

Asset-backed
 
2.4

 
—

 
—

 
2.4

Agency mortgage-backed
 
50.3

 
0.2

 
(1.1
)
 
49.4

Total fixed income securities — Trading
 
1,205.0

 
6.3

 
(23.5
)
 
1,187.8

Total short-term investments — Trading
 
9.5

 
—

 
—

 
9.5

Total catastrophe bonds — Trading
 
37.9

 
0.1

 
(1.8
)
 
36.2

Total
 
$
1,252.4

 
$
6.4

 
$
(25.3
)
 
$
1,233.5

 
 
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
 
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
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, 2018 and 2017:
 
 
MVI
 
Chaspark
 
Bene
 
Digital Re
 
Crop Re
 
Total
 
 
 
 
 
Opening undistributed value of investment as at January 1, 2018
 
$
0.5

 
$
—

 
$
2.9

 
$
0.5

 
$
62.5

 
$
66.4

Investment in the period
 
0.2

 
—

 
1.2

 
—

 
—

 
1.4

Unrealized (loss)/gain for the twelve months to December 31, 2018
 
(0.2
)
 
—

 
(0.9
)
 
0.4

 
—

 
(0.7
)
Closing value of investment as at December 31, 2018
 
$
0.5

 
$
—

 
$
3.2

 
$
0.9

 
$
62.5

 
$
67.1

 
 
 
 
 
 
 
 
 
 
 
 
 
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
Summary of Fixed Maturities
The scheduled maturity distribution of the Company’s available for sale fixed income securities as at December 31, 2018 and December 31, 2017 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, 2018
 
 
Amortized
Cost or Cost
 
Fair Market
Value
 
Average
S&P Ratings by
Maturity
 
 
($ in millions)
Due one year or less
 
$
464.3

 
$
463.5

 
AA-
Due after one year through five years
 
2,605.7

 
2,582.0

 
AA-
Due after five years through ten years
 
1,047.9

 
1,028.3

 
AA-
Due after ten years
 
121.9

 
127.0

 
AA-
Total — Government and corporate
 
4,239.8

 
4,200.8

 
 
Agency mortgage-backed
 
1,025.1

 
1,012.6

 
AA+
Asset-backed
 
17.4

 
17.3

 
AAA
Total fixed income securities — Available for sale
 
$
5,282.3

 
$
5,230.7

 
 

 
 
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

 
 
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, 2018 and December 31, 2017:
 
 
December 31, 2018
 
 
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
 
$
180.2

 
$
(0.7
)
 
$
740.6

 
$
(15.4
)
 
$
920.8

 
$
(16.1
)
 
103
U.S. agency
 
13.5

 
(0.2
)
 
18.4

 
(0.2
)
 
31.9

 
(0.4
)
 
12
Municipal
 
3.1

 
(0.1
)
 
25.0

 
(0.7
)
 
28.1

 
(0.8
)
 
9
Corporate
 
999.1

 
(15.2
)
 
762.2

 
(25.3
)
 
1,761.3

 
(40.5
)
 
667
Non-U.S. government-backed corporate
 
14.5

 
—

 
25.8

 
(0.2
)
 
40.3

 
(0.2
)
 
12
Non-U.S government
 
64.0

 
(0.3
)
 
91.0

 
(0.5
)
 
155.0

 
(0.8
)
 
57
Asset-backed
 
6.3

 
—

 
10.8

 
(0.1
)
 
17.1

 
(0.1
)
 
8
Agency mortgage-backed
 
245.7

 
(2.6
)
 
447.3

 
(16.4
)
 
693.0

 
(19.0
)
 
253
Total fixed income securities — Available for sale
 
1,526.4

 
(19.1
)
 
2,121.1

 
(58.8
)
 
3,647.5

 
(77.9
)
 
1,121
Total short-term investments — Available for sale
 
34.5

 
—

 
—

 
—

 
34.5

 
—

 
12
Total
 
$
1,560.9

 
$
(19.1
)
 
$
2,121.1

 
$
(58.8
)
 
$
3,682.0

 
$
(77.9
)
 
1,133
 
 
 
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