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Segment Information (Tables)
 12 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
Schedule of segment reporting, by segment
The following tables summarize the segment results for the indicated years ended December 31, 2016, 2015, and 2014:
Year Ended December 31, 2016
(U.S. dollars in thousands, except ratios)
Insurance
 
Reinsurance
 
Total P&C
 
Corporate and Other (1)
 
Total
Gross premiums written
$
9,650,503

 
$
3,975,106

 
$
13,625,609

 
$
265,315

 
$
13,890,924

Net premiums written
6,715,969

 
3,514,667

 
10,230,636

 
12,047

 
10,242,683

Net premiums earned
6,651,495

 
3,114,392

 
9,765,887

 
12,047

 
9,777,934

Less: Net losses and loss expenses (2)
4,320,737

 
1,752,098

 
6,072,835

 
28,244

 
6,101,079

Less: Acquisition costs (2)
897,308

 
717,588

 
1,614,896

 
5,775

 
1,620,671

Less: Operating expenses (3)
1,224,233

 
283,270

 
1,507,503

 
1,356

 
1,508,859

Underwriting profit (loss)
$
209,217

 
$
361,436

 
$
570,653

 
$
(23,328
)
 
$
547,325

Net investment income - excluding Life Funds Withheld Assets (4)
 
 
 
 
586,658

 
31,726

 
618,384

Net investment income - Life Funds Withheld Assets
 
 
 
 
 
 
154,751

 
154,751

Net results from structured products (5)
8,495

 
5,785

 
14,280

 
—

 
14,280

Net fee income and other (6)
(18,506
)
 
3,280

 
(15,226
)
 
1,911

 
(13,315
)
Loss (gain) on sale of subsidiary
 
 
 
 
—

 
(7,088
)
 
(7,088
)
Net realized gains (losses) on investments - excluding Life Funds Withheld Assets
 
 
 
 
127,533

 
(14,844
)
 
112,689

Net realized gains (losses) on investments and net unrealized gains (losses) on investments, Trading - Life Funds Withheld Assets
 
 
 
 
(3
)
 
259,452

 
259,449

Net realized and unrealized gains (losses) on derivative instruments
 
 
 
 
—

 
2,521

 
2,521

Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets
 
 
 
 
—

 
(540,090
)
 
(540,090
)
Net income (loss) from investment fund affiliates and operating affiliates
 
 
 
 
—

 
115,155

 
115,155

Less: Exchange (gains) losses
 
 
 
 
—

 
(9,578
)
 
(9,578
)
Less: Corporate operating expenses
 
 
 
 
—

 
505,483

 
505,483

Contribution from P&C and Corporate and Other
 
 
 
 
1,283,895

 
(501,563
)
 
782,332

Less: Interest expense (7)
 
 
 
 
 
 
170,058

 
170,058

Less: Non-controlling interests
 
 
 
 
 
 
129,177

 
129,177

Less: Income tax expense
 
 
 
 
 
 
42,129

 
42,129

Net income (loss) attributable to common shareholders
 
 
 
 
 
 
 
 
$
440,968

Ratios – P&C operations: (8)
 
 
 
 
 
 
 
 
 
Loss and loss expense ratio
65.0
%
 
56.3
%
 
62.2
%
 
 
 
 
Underwriting expense ratio
31.9
%
 
32.1
%
 
32.0
%
 
 
 
 
Combined ratio
96.9
%
 
88.4
%
 
94.2
%
 
 
 
 
____________
(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 $54.0 million and $39.7 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 deposit liabilities recorded in the Insurance and Reinsurance segments.
(8)
Ratios are based on net premiums earned from P&C operations.


Year Ended December 31, 2015
(U.S. dollars in thousands, except ratios)
Insurance
 
Reinsurance
 
Total P&C
 
Corporate & Other (1)
 
Total
Gross premiums written
$
8,395,846

 
$
2,273,163

 
$
10,669,009

 
$
309,916

 
$
10,978,925

Net premiums written
5,859,934

 
2,028,890

 
7,888,824

 
62,239

 
7,951,063

Net premiums earned
5,648,482

 
2,515,702

 
8,164,184

 
62,241

 
8,226,425

Less: Net losses and loss expenses (2)
3,614,048

 
1,152,152

 
4,766,200

 
115,997

 
4,882,197

Less: Acquisition costs (2)
704,364

 
602,290

 
1,306,654

 
10,794

 
1,317,448

Less: Operating expenses (3)
1,154,760

 
283,379

 
1,438,139

 
1,232

 
1,439,371

Underwriting profit (loss)
$
175,310

 
$
477,881

 
$
653,191

 
$
(65,782
)
 
$
587,409

Net investment income - excluding Life Funds Withheld Assets (4)
 
 
 
 
583,871

 
40,569

 
624,440

Net investment income - Life Funds Withheld Assets
 
 
 
 
 
 
187,489

 
187,489

Net results from structured products (5)
12,185

 
5,806

 
17,991

 
—

 
17,991

Net fee income and other (6)
(16,936
)
 
2,958

 
(13,978
)
 
622

 
(13,356
)
Net realized gains (losses) on investments
 
 
 
 
14,586

 
5,411

 
19,997

Net realized gains (losses) on investments - Life Funds Withheld Assets
 
 
 
 
—

 
182,181

 
182,181

Net realized and unrealized gains (losses) on derivative instruments
 
 
 
 
—

 
53,123

 
53,123

Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets
 
 
 
 
—

 
(151,691
)
 
(151,691
)
Net income (loss) from investment fund affiliates and operating affiliates
 
 
 
 
—

 
118,060

 
118,060

Gain on sale of operating affiliate
 
 
 
 

 
340,407

 
340,407

Less: Extinguishment of debt
 
 
 
 
—

 
5,592

 
5,592

Less: Exchange (gains) losses
 
 
 
 
—

 
22,504

 
22,504

Less: Corporate operating expenses
 
 
 
 
—

 
480,755

 
480,755

Contribution from P&C and Corporate and Other
 
 
 
 
1,255,661

 
201,538

 
1,457,199

Less: Interest expense (7)
 
 
 
 
 
 
163,021

 
163,021

Less: Non-controlling interests
 
 
 
 
 
 
106,187

 
106,187

Less: Income tax expense
 
 
 
 
 
 
(19,161
)
 
(19,161
)
Net income (loss) attributable to common shareholders
 
 
 
 
 
 
 
 
$
1,207,152

Ratios – P&C operations: (8)
 
 
 
 
 
 
 
 
 
Loss and loss expense ratio
64.0
%
 
45.8
%
 
58.4
%
 
 
 
 
Underwriting expense ratio
32.9
%
 
35.2
%
 
33.6
%
 
 
 
 
Combined ratio
96.9
%
 
81.0
%
 
92.0
%
 
 
 
 
____________
(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 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 $60.4 million and $42.2 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 deposit liabilities recorded in the Insurance and Reinsurance segments.
(8)
Ratios are based on net premiums earned from P&C operations.


Year Ended December 31, 2014
(U.S. dollars in thousands, except ratios)
Insurance
 
Reinsurance
 
Total P&C
 
Corporate and Other (1)
 
Total
Gross premiums written
$
5,976,011

 
$
1,785,479

 
$
7,761,490

 
$
333,436

 
$
8,094,926

Net premiums written
4,134,151

 
1,633,058

 
5,767,209

 
177,632

 
5,944,841

Net premiums earned
4,026,713

 
1,690,725

 
5,717,438

 
177,632

 
5,895,070

Less: Net losses and loss expenses
2,543,108

 
715,285

 
3,258,393

 
242,963

 
3,501,356

Less: Acquisition costs
393,319

 
330,684

 
724,003

 
14,115

 
738,118

Less: Operating expenses (2)
865,592

 
193,404

 
1,058,996

 
10,693

 
1,069,689

Underwriting profit (loss)
$
224,694

 
$
451,352

 
$
676,046

 
$
(90,139
)
 
$
585,907

Net investment income (3)
 
 
 
 
574,458

 
146,558

 
721,016

Net investment income - Life Funds Withheld Assets
 
 
 
 
 
 
129,575

 
129,575

Net results from structured products (4)
43,710

 
10,499

 
54,209

 
—

 
54,209

Net fee income and other (5)
(10,051
)
 
2,800

 
(7,251
)
 
360

 
(6,891
)
Loss (gain) on sale of subsidiary
 
 
 
 
—

 
666,423

 
666,423

Net realized gains (losses) on investments
 
 
 
 
119,366

 
3,625

 
122,991

Net realized gains (losses) on investments - Life Funds Withheld Assets
 
 
 
 
—

 
(15,529
)
 
(15,529
)
Net realized and unrealized gains (losses) on derivative instruments
 
 
 
 
—

 
29,886

 
29,886

Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets
 
 
 
 
—

 
(488,222
)
 
(488,222
)
Net income (loss) from investment fund affiliates and operating affiliates
 
 
 
 
—

 
203,034

 
203,034

Less: Exchange (gains) losses
 
 
 
 
—

 
(37,568
)
 
(37,568
)
Less: Corporate operating expenses
 
 
 
 
—

 
220,165

 
220,165

Contribution from P&C and Corporate and Other
 
 
 
 
1,416,828

 
(929,872
)
 
486,956

Less: Interest expense (6)
 
 
 
 
 
 
121,221

 
121,221

Less: Non-controlling interests
 
 
 
 
 
 
80,498

 
80,498

Less: Income tax expense
 
 
 
 
 
 
96,897

 
96,897

Net income (loss) attributable to common shareholders
 
 
 
 
 
 
 
 
$
188,340

Ratios – P&C operations: (7)
 
 
 
 
 
 
 
 
 
Loss and loss expense ratio
63.2
%
 
42.3
%
 
57.0
%
 
 
 
 
Underwriting expense ratio
31.2
%
 
31.0
%
 
31.2
%
 
 
 
 
Combined ratio
94.4
%
 
73.3
%
 
88.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
____________
(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)
Operating expenses exclude Corporate operating expenses, shown separately.
(3)
Net investment income does not include net investment income related to the net results from structured products.
(4)
The net results from P&C structured products include net investment income and interest expense of $68.0 million and $12.9 million, respectively.
(5)
Net fee income and other includes operating expenses from the Company's loss prevention consulting services business.
(6)
Interest expense excludes interest expense related to deposit liabilities recorded in the Insurance and Reinsurance segments.
(7)
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:
Year Ended December 31, 2016
(U.S. dollars in thousands)
Insurance (2)
 
Reinsurance
 
Corporate and Other
 
Total
P&C Operations:
 
 
 
 
 
 
 
Professional
$
1,330,909

 
$
163,157

 
$
—

 
$
1,494,066

Casualty
1,973,672

 
657,590

 
—

 
2,631,262

Property catastrophe
—

 
792,445

 
—

 
792,445

Property
1,625,133

 
1,021,626

 
—

 
2,646,759

Specialty
1,711,344

 
174,477

 
—

 
1,885,821

Other (1)
10,437

 
305,097

 
—

 
315,534

Total P&C Operations
$
6,651,495

 
$
3,114,392

 
$
—

 
$
9,765,887

Corporate and Other:
 
 
 
 
 
 
 
Run-off life operations - Annuity
—

 
—

 
1

 
1

Run-off life operations - Other life
—

 
—

 
12,046

 
12,046

Total Corporate and Other
$
—

 
$
—

 
$
12,047

 
$
12,047

Total
$
6,651,495

 
$
3,114,392

 
$
12,047

 
$
9,777,934

Year Ended December 31, 2015
 
 
 
 
 
 
 
P&C Operations:
 
 
 
 
 
 
 
Professional
$
1,164,446

 
$
168,367

 
$
—

 
$
1,332,813

Casualty
1,805,563

 
468,286

 
—

 
2,273,849

Property catastrophe
—

 
663,958

 
—

 
663,958

Property
1,257,383

 
869,286

 
—

 
2,126,669

Specialty
1,421,124

 
127,797

 
—

 
1,548,921

Other (1)
(34
)
 
218,008

 
—

 
217,974

Total P&C Operations
$
5,648,482

 
$
2,515,702

 
$
—

 
$
8,164,184

Corporate and Other:
 
 
 
 
 
 
 
Run-off life operations - Annuity
$
—

 
$
—

 
$
1

 
$
1

Run-off life operations - Other life
—

 
—

 
62,240

 
62,240

Total Corporate and Other
$
—

 
$
—

 
$
62,241

 
$
62,241

Total
$
5,648,482

 
$
2,515,702

 
$
62,241

 
$
8,226,425

Year Ended December 31, 2014
 
 
 
 
 
 
 
P&C Operations:
 
 
 
 
 
 
 
Professional
$
1,075,420

 
$
181,223

 
$
—

 
$
1,256,643

Casualty
1,669,097

 
300,223

 
—

 
1,969,320

Property catastrophe
—

 
433,602

 
—

 
433,602

Property
544,856

 
555,583

 
—

 
1,100,439

Specialty
737,281

 
95,745

 
—

 
833,026

Other (1)
59

 
124,349

 
—

 
124,408

Total P&C Operations
$
4,026,713

 
$
1,690,725

 
$
—

 
$
5,717,438

Corporate and Other:
 
 
 
 
 
 
 
Run-off life operations - Annuity
$
—

 
$
—

 
$
53,363

 
$
53,363

Run-off life operations - Other life
—

 
—

 
124,269

 
124,269

Total Corporate and Other
$
—

 
$
—

 
$
177,632

 
$
177,632

Total
$
4,026,713

 
$
1,690,725

 
$
177,632

 
$
5,895,070

____________
(1)
Other within the Insurance segment includes surety, structured indemnity and certain other exited lines. Other within the Reinsurance segment includes: whole account contracts, accident and health 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.
Schedule of net premiums written by geographic location
The following table shows an analysis of the Company’s net premiums written by geographical location of the subsidiary where the premium is written for the years ended December 31:
(U.S. dollars in thousands)
2016
 
2015
 
2014
P&C Operations:
 
 
 
 
 
Bermuda
$
1,267,613

 
$
781,618

 
$
636,109

United States
3,575,969

 
3,045,031

 
2,528,196

Europe
4,778,299

 
3,628,258

 
2,124,117

Other
608,755

 
433,917

 
478,787

Total P&C Operations
$
10,230,636

 
$
7,888,824

 
$
5,767,209

Corporate and Other:
  
 
  
 
 
Bermuda
$
12,194

 
$
62,276

 
$
91,979

Europe
(147
)
 
(37
)
 
85,653

Total Corporate and Other
$
12,047

 
$
62,239

 
$
177,632