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Retirement Plans (Tables)

12 Months Ended

Dec. 31, 2015

The funded status by geographical region of all the Company’s retirement plans at December 31, 2015 and 2014 is as follows:



Funded Status (U.S. dollars in thousands)	2015			2014
U.S.	$	(16,306	)	$	(13,124	)
U.K.	(4,650		)	(7,742		)
Other European	(21,807		)	(22,977		)
Funded status – end of year	$	(42,763	)	$	(43,843	)



Change in projected benefit obligation (U.S. dollars in thousands)	2015			2014
Projected benefit obligation – beginning of year	$	93,124		$	81,976
Projected benefit obligation assumed due to Catlin Acquisition	28,414			—
Service cost (1)	1,494			1,279
Interest cost	4,382			3,747
Actuarial (gain) / loss	2,821			13,402
Benefits and expenses paid	(3,747		)	(2,761		)
Foreign currency (gains) / losses	(4,047		)	(3,817		)
Settlements	(276		)	(702		)
Projected benefit obligation – end of year	$	122,165		$	93,124

(1) Service costs include cost of living adjustments on curtailed plans.



Change in plan assets (U.S. dollars in thousands)	2015			2014
Fair value of plan assets – beginning of year	$	49,281		$	47,158
Fair value of plan assets acquired due to Catlin Acquisition	33,131			—
Actual return on plan assets	(119		)	3,543
Employer contributions	1,775			1,187
Benefits and expenses paid	(3,305		)	(1,932		)
Foreign currency gains / (losses)	(1,361		)	(675		)
Fair value of plan assets – end of year	$	79,402		$	49,281
Funded status – end of year	$	(42,763	)	$	(43,843	)
Accrued pension liability	$	42,763		$	43,843

The components of the net benefit cost for the years ended December 31, 2015, 2014 and 2013 are as follows:



Components of net benefit cost (U.S. dollars in thousands)	2015			2014			2013
Service cost	$	1,494		$	1,279		$	1,491
Interest cost	4,381			3,747			3,589
Expected return on plan assets	(3,903		)	(2,859		)	(3,096		)
Amortization of net actuarial loss	1,617			812			1,440
Net benefit cost	$	3,589		$	2,979		$	3,424

The table below includes disclosure of these rates on a weighted-average basis, for the years ended December 31 as indicated:



	2015						2014
	U.S. Plans		U.K. Plans		Other European Plans		U.S. Plans		U.K. Plans		Other European Plans
Net Benefit Cost – Weighted-average assumptions
Discount rate	3.91	%	3.70	%	2.42	%	4.95	%	4.60	%	3.50	%
Expected long-term rate of return on plan assets	6.00	%	3.48	%	N/A		6.50	%	4.60	%	N/A
Rate of compensation increase	N/A		3.96	%	2.50	%	N/A		5.50	%	2.50	%
Benefit Obligation – Weighted-average assumptions
Discount rate	4.25	%	3.70	%	2.42	%	3.91	%	4.60	%	2.40	%
Rate of compensation increase	N/A		3.96	%	2.50	%	N/A		5.50	%	2.50	%

The assets in the plans and the expected rates of return were as follows:



(U.S. dollars in thousands, except percentages)	Expected Return on Assets for 2015		Fair Value at December 31, 2015		Expected Return on Assets for2014		Fair Value at December 31,2014
Equities	6.2	%	$	7,893	7.4	%	$	7,787
Gilts	2.4	%	17,856		3.6	%	1,579
Corporate Bonds	3.4	%	16,915		4.6	%	1,594
Other (cash)	1.8	%	52		4.0	%	224
Total market fair value of assets			$	42,716			$	11,184

The estimated future benefit payments with respect to the U.S. defined benefit pension plans are as follows: