Schedule II - Condensed Financial Information Of The Registrant

12 Months Ended

Dec. 31, 2012

Schedule II - Condensed Financial Information Of The Registrant [Abstract]

Schedule II - Condensed Financial Information Of The Registrant

SCHEDULE II — CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT
CONDENSED BALANCE SHEETS
	December 31,
(Dollars and share amounts in thousands, except par value per share)	2012			2011
ASSETS:
Fixed maturities - available for sale, at market value	$	40,233		$	67,483
(amortized cost:  2012, $38,620; 2011, $66,074)
Short-term investments		131,617			42,370
Cash		864			262
Investment in subsidiaries, at equity in the underlying net assets		6,558,734			5,961,172
Accrued investment income		357			551
Receivable from subsidiaries		728			728
Other assets		2,817			219
TOTAL ASSETS	$	6,735,350		$	6,072,785
LIABILITIES:
Due to subsidiaries	$	1,362		$	878
Other liabilities		521			532
Total liabilities		1,883			1,410
SHAREHOLDERS' EQUITY:
Preferred shares, par value:  $0.01; 50,000 shares authorized;
no shares issued and outstanding		-			-
Common shares, par value:  $0.01; 200,000 shares authorized;
(2012) 67,105 and (2011) 66,455 issued		671			665
Additional paid-in capital		1,946,439			1,892,988
Accumulated other comprehensive income (loss), net of deferred income
tax expense (benefit) of $119,629 at 2012 and $112,969 at 2011		537,049			366,978
Treasury shares, at cost; 15,687 shares (2012) and 12,719 shares (2011)		(1,363,958	)		(1,073,970	)
Retained earnings		5,613,266			4,884,714
Total shareholders' equity		6,733,467			6,071,375
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	6,735,350		$	6,072,785
See notes to consolidated financial statements.

SCHEDULE II — CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT
CONDENSED STATEMENTS OF OPERATIONS
	Years Ended December 31,
	2012			2011			2010
(Dollars in thousands)
REVENUES:
Net investment income	$	1,160		$	1,673		$	1,125
Net realized capital gains (losses)		286			-			7
Other income (expense)		(754	)		(505	)		(385	)
Net income (loss) of subsidiaries		843,022			(71,233	)		618,906
Total revenues		843,714			(70,065	)		619,653
EXPENSES:
Other expenses		14,760			10,421			8,899
Total expenses		14,760			10,421			8,899
INCOME (LOSS) BEFORE TAXES		828,954			(80,486	)		610,754
Income tax expense (benefit)		-			-			-
NET INCOME (LOSS)	$	828,954		$	(80,486	)	$	610,754
Other comprehensive income (loss), net of tax:
Unrealized appreciation (depreciation) ("URA(D)") on securities arising during the period		174,025			91,481			102,532
Less:  reclassification adjustment for realized losses (gains) included in net income (loss)		(19,676	)		(11,340	)		(42,368	)
Total URA(D) on securities arising during the period		154,349			80,141			60,164
Foreign currency translation adjustments		22,698			(15,969	)		1,871
Pension adjustments		(6,976	)		(29,452	)		(1,815	)
Total other comprehensive income (loss), net of tax	$	170,071		$	34,720		$	60,220
COMPREHENSIVE INCOME (LOSS)	$	999,025		$	(45,766	)	$	670,974
See notes to consolidated financial statements.

SCHEDULE II — CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT
CONDENSED STATEMENTS OF CASH FLOWS
	Years Ended December 31,
(Dollars in thousands)	2012			2011			2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	828,954		$	(80,486	)	$	610,754
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in retained (earnings) deficit of subsidiaries		(843,022	)		71,233			(618,906	)
Dividends received from subsidiaries		465,000			190,000			215,000
Change in other assets and liabilities, net		(2,414	)		(718	)		2,849
Increase (decrease) in due to/from affiliates		484			224			(291	)
Amortization of bond premium (accrual of bond discount)		494			875			733
Realized capital losses (gains)		(286	)		-			(7	)
Non-cash compensation expense		1,536			936			813
Net cash provided by (used in) operating activities		450,746			182,064			210,945
CASH FLOWS FROM INVESTING ACTIVITIES:
Additional investment in subsidiaries		(49,673	)		(91,548	)		(28,619	)
Proceeds from fixed maturities matured/called - available for sale, at market value		5,290			9,219			4,211
Proceeds from fixed maturities sold - available for sale, at market value		21,955			-			7
Cost of fixed maturities acquired - available for sale, at market value		-			-			(81,113	)
Net change in short-term investments		(89,247	)		30,180			4,774
Net cash provided by (used in) investing activities		(111,675	)		(52,149	)		(100,740	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Common shares issued during the period, net		51,921			29,025			17,038
Purchase of treasury shares		(289,988	)		(54,879	)		(18,963	)
Dividends paid to shareholders		(100,402	)		(103,848	)		(108,477	)
Net cash provided by (used in) financing activities		(338,469	)		(129,702	)		(110,402	)
EFFECT OF EXCHANGE RATE CHANGES ON CASH		-			-			-
Net increase (decrease) in cash		602			213			(197	)
Cash, beginning of period		262			49			246
Cash, end of period	$	864		$	262		$	49
Non-cash transaction:
Purchase of treasury shares by subsidiary	$	-		$	37,611		$	379,591
See notes to consolidated financial statements.