Retirement Plans (Tables)

12 Months Ended

Dec. 31, 2016

Compensation and Retirement Disclosure [Abstract]

Funded status by geographical region

The funded status by geographical region of all the Company’s retirement plans at December 31, 2016 and 2015 is as follows:

Funded Status (U.S. dollars in thousands)	2016			2015
U.S.	$	(14,093	)	$	(16,306	)
U.K.	(2,316		)	(4,650		)
Other European	(26,377		)	(21,807		)
Funded status – end of year	$	(42,786	)	$	(42,763	)

Change in projected benefit obligation

Change in projected benefit obligation (U.S. dollars in thousands)	2016			2015
Projected benefit obligation – beginning of year	$	122,165		$	93,124
Projected benefit obligation assumed due to Catlin Acquisition	—			28,414
Service cost (1)	1,701			1,494
Interest cost	5,126			4,382
Actuarial (gain) / loss	7,948			2,821
Benefits and expenses paid	(5,977		)	(3,747		)
Foreign currency (gains) / losses	(10,248		)	(4,047		)
Settlements	(677		)	(276		)
Projected benefit obligation – end of year	$	120,038		$	122,165

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

Change in plan assets

Change in plan assets (U.S. dollars in thousands)	2016			2015
Fair value of plan assets – beginning of year	$	79,402		$	49,281
Fair value of plan assets acquired due to Catlin Acquisition	—			33,131
Actual return on plan assets	8,499			(119		)
Employer contributions	2,077			1,775
Benefits and expenses paid	(4,577		)	(3,305		)
Foreign currency gains / (losses)	(8,149		)	(1,361		)
Fair value of plan assets – end of year	$	77,252		$	79,402
Funded status – end of year	$	(42,786	)	$	(42,763	)
Accrued pension liability	$	42,786		$	42,763

Components of net benefit cost

The components of the net benefit cost for the years ended December 31, 2016, 2015 and 2014 are as follows:

Components of net benefit cost (U.S. dollars in thousands)	2016			2015			2014
Service cost	$	1,701		$	1,494		$	1,279
Interest cost	5,126			4,382			3,747
Expected return on plan assets	(4,357		)	(3,903		)	(2,859		)
Amortization of net actuarial loss	1,705			1,617			812
Net benefit cost	$	4,175		$	3,590		$	2,979

Weighted average assumptions used

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

	2016						2015
	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	4.25	%	2.74	%	1.33	%	3.91	%	3.70	%	2.42	%
Expected long-term rate of return on plan assets	6.00	%	2.77	%	N/A		6.00	%	3.48	%	N/A
Rate of compensation increase	N/A		3.62	%	2.50	%	N/A		3.96	%	2.50	%
Benefit Obligation – Weighted-average assumptions
Discount rate	4.04	%	2.76	%	1.33	%	4.25	%	3.70	%	2.42	%
Rate of compensation increase	N/A		3.62	%	2.50	%	N/A		3.96	%	2.50	%

Allocation of plan assets - UK pension

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 2016		Fair Value at December 31, 2016		Expected Return on Assets for 2015		Fair Value at December 31, 2015
Equities ad Growth funds	5.7	%	$	9,122	6.2	%	$	7,893
Gilts	2.4	%	15,459		2.4	%	17,856
Corporate Bonds	3.3	%	13,850		3.4	%	16,915
Other (cash)	0.5	%	89		1.8	%	52
Total market fair value of assets			$	38,520			$	42,716

Estimated future benefit payments

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

(U.S. dollars in thousands)	Retirement Plan		Benefits Equalization Plan		Total
2017	$	1,029	$	353	$	1,382
2018	$	1,057	$	353	$	1,410
2019	$	1,226	$	450	$	1,676
2020	$	1,389	$	467	$	1,856
2021	$	1,683	$	502	$	2,185
2022-2026	$	10,753	$	2,823	$	13,576