Segment Information (Tables)

9 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Schedule of segment reporting, by segment

The following tables summarize the segment results for the three and nine months ended September 30, 2016 and 2015:

Three Months Ended September 30, 2016 (U.S. dollars in thousands, except ratios)	Insurance			Reinsurance			Total P&C			Corporate and Other (1)			Total
Gross premiums written	$	2,153,379		$	565,541		$	2,718,920		$	64,683		$	2,783,603
Net premiums written	1,615,132			518,166			2,133,298			2,360			2,135,658
Net premiums earned	1,653,461			778,216			2,431,677			2,360			2,434,037
Less: Net losses and loss expenses (2)	1,068,268			423,535			1,491,803			5,875			1,497,678
Less: Acquisition costs (2)	221,137			181,749			402,886			1,002			403,888
Less: Operating expenses (3)	302,373			67,764			370,137			142			370,279
Underwriting profit (loss)	$	61,683		$	105,168		$	166,851		$	(4,659	)	$	162,192
Net investment income - excluding Life Funds Withheld Assets (4)							148,579			8,127			156,706
Net investment income - Life Funds Withheld Assets										38,937			38,937
Net results from structured products (5)	2,353			5,355			7,708			—			7,708
Net fee income and other (6)	(4,486		)	620			(3,866		)	595			(3,271		)
Loss (gain) on sale of subsidiary							—			(3,670		)	(3,670		)
Net realized gains (losses) on investments - excluding Life Funds Withheld Assets							60,401			(2,006		)	58,395
Net realized gains (losses) on investments and net unrealized gains (losses) on investments, Trading - Life Funds Withheld Assets							68			85,213			85,281
Net realized and unrealized gains (losses) on derivative instruments							—			5,490			5,490
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets							—			(225,610		)	(225,610		)
Net income (loss) from investment fund affiliates and operating affiliates							—			24,566			24,566
Less: Exchange (gains) losses							—			(1,695		)	(1,695		)
Less: Corporate operating expenses							—			126,308			126,308
Contribution from P&C and Corporate and Other							379,741			(190,290		)	189,451
Less: Interest expense (7)										43,025			43,025
Less: Non-controlling interests										58,076			58,076
Less: Income tax expense										17,749			17,749
Net income (loss) attributable to common shareholders													$	70,601
Ratios – P&C operations: (8)
Loss and loss expense ratio	64.6		%	54.4		%	61.3		%
Underwriting expense ratio	31.7		%	32.1		%	31.8		%
Combined ratio	96.3		%	86.5		%	93.1		%

____________

(1) Corporate and Other includes other items of our revenue and expenditures that are not evaluated at the segment level for reporting purposes, as well as the Company's run-off life operations.

(2) The Company has reflected the amortization of certain fair value adjustments recorded in conjunction with the Catlin Acquisition within the respective segments.

(3) Operating expenses of the segments exclude Corporate operating expenses, shown separately.

(4) Net investment income - excluding Life Funds Withheld Assets does not include net investment income related to the net results from structured products.

(5) The net results from P&C structured products include net investment income and interest expense of $14.1 million and $6.4 million, respectively.

(6) Net fee income and other includes operating expenses from the Company's loss prevention consulting services business.

(7) Interest expense excludes interest expense related to structured products recorded in the Insurance and Reinsurance segments.

(8) Ratios are based on net premiums earned from P&C operations.

Three Months Ended September 30, 2015 (U.S. dollars in thousands, except ratios)	Insurance			Reinsurance			Total P&C			Corporate and Other (1)			Total
Gross premiums written	$	2,200,196		$	458,946		$	2,659,142		$	80,208		$	2,739,350
Net premiums written	1,664,562			408,654			2,073,216			17,812			2,091,028
Net premiums earned	1,632,988			772,752			2,405,740			17,812			2,423,552
Less: Net losses and loss expenses (2)	1,037,727			426,558			1,464,285			22,579			1,486,864
Less: Acquisition costs (2)	214,773			189,671			404,444			4,729			409,173
Less: Operating expenses (3)	334,211			88,682			422,893			(26		)	422,867
Underwriting profit (loss)	$	46,277		$	67,841		$	114,118		$	(9,470	)	$	104,648
Net investment income - excluding Life Funds Withheld Assets (4)							152,738			10,254			162,992
Net investment income - Life Funds Withheld Assets										46,586			46,586
Net results from structured products (5)	3,328			1,109			4,437			—			4,437
Net fee income and other (6)	(5,207		)	533			(4,674		)	254			(4,420		)
Net realized gains (losses) on investments - excluding Life Funds Withheld Assets							(197		)	(4		)	(201		)
Net realized gains (losses) on investments and net unrealized gains (losses) on investments, Trading - Life Funds Withheld Assets							—			51,608			51,608
Net realized and unrealized gains (losses) on derivative instruments							—			(7,903		)	(7,903		)
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets							—			(126,140		)	(126,140		)
Net income (loss) from investment fund affiliates and operating affiliates							—			4,481			4,481
Less: Exchange (gains) losses							—			11,661			11,661
Less: Corporate operating expenses							—			135,500			135,500
Contribution from P&C and Corporate and Other							266,422			(177,495		)	88,927
Less: Interest expense (7)										40,798			40,798
Less: Non-controlling interests										57,889			57,889
Less: Income tax expense										(37,042		)	(37,042		)
Net income (loss) attributable to common shareholders													$	27,282
Ratios – P&C operations: (8)
Loss and loss expense ratio	63.5		%	55.2		%	60.9		%
Underwriting expense ratio	33.7		%	36.0		%	34.4		%
Combined ratio	97.2		%	91.2		%	95.3		%

____________

(1) Corporate and Other includes other items of our revenue and expenditures that are not evaluated at the segment level for reporting purposes, as well as the Company's run-off life operations.

(2) The Company has reflected the amortization of certain fair value adjustments recorded in conjunction with the Catlin Acquisition within the respective segments.

(3) Operating expenses of the segments exclude Corporate operating expenses, shown separately.

(4) Net investment income - excluding Life Funds Withheld Assets does not include net investment income related to the net results from structured products.

(5) The net results from P&C structured products include net investment income and interest expense of $15.6 million and $11.1 million, respectively.

(6) Net fee income and other includes operating expenses from the Company's loss prevention consulting services business.

(7) Interest expense excludes interest expense related to structured products recorded in the Insurance and Reinsurance segments.

(8) Ratios are based on net premiums earned from P&C operations.

Nine Months Ended September 30, 2016(U.S. dollars in thousands, except ratios)	Insurance			Reinsurance			Total P&C			Corporate and Other (1)			Total
Gross premiums written	$	7,169,363		$	3,439,650		$	10,609,013		$	202,139		$	10,811,152
Net premiums written	4,899,258			3,018,246			7,917,504			9,032			7,926,536
Net premiums earned	4,944,055			2,367,772			7,311,827			9,032			7,320,859
Less: Net losses and loss expenses (2)	3,163,599			1,343,075			4,506,674			16,294			4,522,968
Less: Acquisition costs (2)	679,009			544,380			1,223,389			4,286			1,227,675
Less: Operating expenses (3)	922,273			215,258			1,137,531			765			1,138,296
Underwriting profit (loss)	$	179,174		$	265,059		$	444,233		$	(12,313	)	$	431,920
Net investment income - excluding Life Funds Withheld Assets (4)							446,352			24,185			470,537
Net investment income - Life Funds Withheld Assets										119,643			119,643
Net results from structured products (5)	6,340			5,397			11,737			—			11,737
Net fee income and other (6)	(12,097		)	2,705			(9,392		)	1,068			(8,324		)
Loss (gain) on sale of subsidiary							—			(3,670		)	(3,670		)
Net realized gains (losses) on investments - excluding Life Funds Withheld Assets							77,189			(7,742		)	69,447
Net realized gains (losses) on investments and net unrealized gains (losses) on investments, Trading - Life Funds Withheld Assets							(3		)	271,599			271,596
Net realized and unrealized gains (losses) on derivative instruments							—			2,774			2,774
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets							—			(691,432		)	(691,432		)
Net income (loss) from investment fund affiliates and operating affiliates							—			67,234			67,234
Less: Exchange (gains) losses							—			(54,614		)	(54,614		)
Less: Corporate operating expenses							—			372,003			372,003
Contribution from P&C and Corporate and Other							970,116			(538,703		)	431,413
Less: Interest expense (7)										128,371			128,371
Less: Non-controlling interests										124,263			124,263
Less: Income tax expense										42,511			42,511
Net income (loss) attributable to common shareholders													$	136,268
Ratios – P&C operations: (8)
Loss and loss expense ratio	64.0		%	56.7		%	61.6		%
Underwriting expense ratio	32.4		%	32.1		%	32.3		%
Combined ratio	96.4		%	88.8		%	93.9		%

____________

(1) Corporate and Other includes other items of our revenue and expenditures that are not evaluated at the segment level for reporting purposes, as well as the Company's run-off life operations.

(2) The Company has reflected the amortization of certain fair value adjustments recorded in conjunction with the Catlin Acquisition within the respective segments.

(3) Operating expenses of the segments exclude Corporate operating expenses, shown separately.

(4) Net investment income - excluding Life Funds Withheld Assets does not include net investment income related to the net results from structured products.

(5) The net results from P&C structured products include net investment income and interest expense of $40.9 million and $29.1 million, respectively.

(6) Net fee income and other includes operating expenses from the Company's loss prevention consulting services business.

(7) Interest expense excludes interest expense related to structured products recorded in the Insurance and Reinsurance segments.

(8) Ratios are based on net premiums earned from P&C operations.

Nine Months Ended September 30, 2015 (U.S. dollars in thousands, except ratios)	Insurance			Reinsurance			Total P&C			Corporate and Other (1)			Total
Gross premiums written	$	6,074,387		$	2,066,856		$	8,141,243		$	234,602		$	8,375,845
Net premiums written	4,155,442			1,854,590			6,010,032			50,576			6,060,608
Net premiums earned	4,008,200			1,780,829			5,789,029			50,576			5,839,605
Less: Net losses and loss expenses (2)	2,551,044			834,263			3,385,307			64,047			3,449,354
Less: Acquisition costs (2)	476,876			419,380			896,256			8,230			904,486
Less: Operating expenses (3)	834,829			202,904			1,037,733			846			1,038,579
Underwriting profit (loss)	$	145,451		$	324,282		$	469,733		$	(22,547	)	$	447,186
Net investment income - excluding Life Funds Withheld Assets (4)							435,007			31,295			466,302
Net investment income - Life Funds Withheld Assets										143,869			143,869
Net results from structured products (5)	9,634			5,085			14,719			—			14,719
Net fee income and other (6)	(14,705		)	1,981			(12,724		)	432			(12,292		)
Net realized gains (losses) on investments - excluding Life Funds Withheld Assets							9,833			(1,081		)	8,752
Net realized gains (losses) on investments and net unrealized gains (losses) on investments, Trading - Life Funds Withheld Assets							—			145,513			145,513
Net realized and unrealized gains (losses) on derivative instruments							—			57,127			57,127
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets							—			(116,333		)	(116,333		)
Net income (loss) from investment fund affiliates and operating affiliates							—			103,317			103,317
Gain on sale of operating affiliate										340,407			340,407
Less: Exchange (gains) losses							—			49,425			49,425
Less: Corporate operating expenses							—			328,930			328,930
Contribution from P&C and Corporate and Other							916,568			303,644			1,220,212
Less: Interest expense (7)										121,317			121,317
Less: Non-controlling interests										100,158			100,158
Less: Income tax expense										20,135			20,135
Net income (loss) attributable to common shareholders													$	978,602
Ratios – P&C operations: (8)
Loss and loss expense ratio	63.6		%	46.8		%	58.5		%
Underwriting expense ratio	32.8		%	35.0		%	33.4		%
Combined ratio	96.4		%	81.8		%	91.9		%

____________

(1) Corporate and Other includes other items of our revenue and expenditures that are not evaluated at the segment level for reporting purposes, as well as the Company's run-off life operations.

(2) The Company has reflected the amortization of certain fair value adjustments recorded in conjunction with the Catlin Acquisition within the respective segments.

(3) Operating expenses of the segments exclude Corporate operating expenses, shown separately.

(4) Net investment income - excluding Life Funds Withheld Assets does not include net investment income related to the net results from structured products.

(5) The net results from P&C structured products include net investment income and interest expense of $46.7 million and $31.7 million, respectively.

(6) Net fee income and other includes operating expenses from the Company's loss prevention consulting services business.

(7) Interest expense excludes interest expense related to structured products recorded in the Insurance and Reinsurance segments.

(8) Ratios are based on net premiums earned from P&C operations.

Schedule of net premiums earned by line of business

The following tables summarize the Company’s net premiums earned by line of business for the three and nine months ended September 30, 2016 and 2015:

Three Months Ended September 30, 2016 (U.S. dollars in thousands)	Insurance			Reinsurance		Corporate and Other		Total
P&C Operations:
Professional	$	317,973		$	39,029	$	—	$	357,002
Casualty	485,846			163,845		—		649,691
Property catastrophe	—			183,381		—		183,381
Property	451,007			263,324		—		714,331
Specialty	408,177			43,712		—		451,889
Other (1)	(9,542		)	84,925		—		75,383
Total P&C Operations	$	1,653,461		$	778,216	$	—	$	2,431,677
Corporate and Other:
Run-off Life operations - Annuity	$	—		$	—	$	—	$	—
Run-off Life operations - Other Life	—			—		2,360		2,360
Total Corporate and Other	$	—		$	—	$	2,360	$	2,360
Total	$	1,653,461		$	778,216	$	2,360	$	2,434,037
Three Months Ended September 30, 2015(U.S. dollars in thousands)	Insurance (2)			Reinsurance		Corporate and Other		Total
P&C Operations:
Professional	$	300,775		$	46,877	$	—	$	347,652
Casualty	503,190			141,135		—		644,325
Property catastrophe	—			205,337		—		205,337
Property	369,007			271,297		—		640,304
Specialty	447,642			36,345		—		483,987
Other (1)	12,374			71,761		—		84,135
Total P&C Operations	$	1,632,988		$	772,752	$	—	$	2,405,740
Corporate and Other:
Run-off Life operations - Annuity	$	—		$	—	$	—	$	—
Run-off Life operations - Other Life	—			—		17,812		17,812
Total Corporate and Other	$	—		$	—	$	17,812	$	17,812
Total	$	1,632,988		$	772,752	$	17,812	$	2,423,552

____________

(1) Other within the Insurance segment includes: surety, structured indemnity and certain discontinued lines. Other within the Reinsurance segment includes: whole account contracts, structured indemnity and other lines.

(2) Amounts from the prior year have been represented to reflect current mapping of underlying lines of business to be consistent with the manner in which they are reflected in the current period. The most significant movements include the following: Energy business previously shown under Specialty is now reflected in Property; Programs business formerly in Other is now reflected in Property or Casualty, depending upon the predominant line for each program; and Excess and Surplus is now reflected primarily in Casualty.

Nine Months Ended September 30, 2016 (U.S. dollars in thousands)	Insurance		Reinsurance		Corporate and Other		Total
P&C Operations:
Professional	$	970,271	$	121,982	$	—	$	1,092,253
Casualty	1,465,869		510,031		—		1,975,900
Property catastrophe	—		602,995		—		602,995
Property	1,216,264		777,993		—		1,994,257
Specialty	1,286,738		125,717		—		1,412,455
Other (1)	4,913		229,054		—		233,967
Total P&C Operations	$	4,944,055	$	2,367,772	$	—	$	7,311,827
Corporate and Other:
Run-off Life operations - Annuity	$	—	$	—	$	—	$	—
Run-off Life operations - Other Life	—		—		9,032		9,032
Total Corporate and Other	$	—	$	—	$	9,032	$	9,032
Total	$	4,944,055	$	2,367,772	$	9,032	$	7,320,859
Nine Months Ended September 30, 2015(U.S. dollars in thousands)	Insurance (2)		Reinsurance		Corporate and Other		Total
P&C Operations:
Professional	$	853,547	$	125,110	$	—	$	978,657
Casualty	1,298,033		325,130		—		1,623,163
Property catastrophe	—		462,862		—		462,862
Property	847,454		634,419		—		1,481,873
Specialty	974,195		86,969		—		1,061,164
Other (1)	34,971		146,339		—		181,310
Total P&C Operations	$	4,008,200	$	1,780,829	$	—	$	5,789,029
Corporate and Other:
Run-off Life operations - Annuity	$	—	$	—	$	—	$	—
Run-off Life operations - Other Life	—		—		50,576		50,576
Total Corporate and Other	$	—	$	—	$	50,576	$	50,576
Total	$	4,008,200	$	1,780,829	$	50,576	$	5,839,605

____________

(1) Other within the Insurance segment includes: surety, structured indemnity and certain discontinued lines. Other within the Reinsurance segment includes: whole account contracts, structured indemnity and other lines.

(2) Amounts from the prior year have been represented to reflect current mapping of underlying lines of business to be consistent with the manner in which they are reflected in the current period. The most significant movements include the following: Energy business previously shown under Specialty is now reflected in Property; Programs business formerly in Other is now reflected in Property or Casualty, depending upon the predominant line for each program; and Excess and Surplus is now reflected primarily in Casualty.