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Segment Information (Tables)
 12 Months Ended
Dec. 31, 2017
Segment Reporting [Abstract]  
Schedule of segment reporting, by segment
The following tables summarize the segment results for the indicated years ended December 31, 2017, 2016 and 2015:
Year Ended December 31, 2017
(U.S. dollars in thousands)
Insurance
 
Reinsurance
 
Total P&C
 
Corporate and Other (1)
 
Total
Gross premiums written
$
10,070,463

 
$
4,682,110

 
$
14,752,573

 
$
234,278

 
$
14,986,851

Net premiums written
6,704,548

 
3,963,876

 
10,668,424

 
12,334

 
10,680,758

Net premiums earned
6,721,812

 
3,602,466

 
10,324,278

 
12,334

 
10,336,612

Less: Net losses and loss expenses (2)
5,125,033

 
2,876,887

 
8,001,920

 
39,189

 
8,041,109

Less: Acquisition costs
922,109

 
861,104

 
1,783,213

 
4,927

 
1,788,140

Less: Operating expenses (3)
1,128,925

 
272,287

 
1,401,212

 
975

 
1,402,187

Underwriting profit (loss)
$
(454,255
)
 
$
(407,812
)
 
$
(862,067
)
 
$
(32,757
)
 
$
(894,824
)
Net investment income - excluding Life Funds Withheld Assets (4)
 
 
 
 
620,591

 
30,359

 
650,950

Net investment income - Life Funds Withheld Assets
 
 
 
 
 
 
127,047

 
127,047

Net results from structured products (5)
8,320

 
18,108

 
26,428

 
—

 
26,428

Net fee income and other (6)
(4,529
)
 
3,926

 
(603
)
 
(1,473
)
 
(2,076
)
Net realized gains (losses) on investments - excluding Life Funds Withheld Assets
 
 
 
 
133,827

 
(11,623
)
 
122,204

Net realized gains (losses) on investments and net unrealized gains (losses) on investments, Trading
 
 
 
 
—

 
99,672

 
99,672

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

 
(41,732
)
 
(41,732
)
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets
 
 
 
 
—

 
(206,015
)
 
(206,015
)
Net income (loss) from investment affiliates and operating affiliates
 
 
 
 
—

 
202,691

 
202,691

Less: (Gain) loss from the early extinguishment of debt
 
 
 
 
—

 
1,582

 
1,582

Less: Foreign Exchange (gains) losses
 
 
 
 
—

 
44,620

 
44,620

Less: Corporate operating expenses
 
 
 
 
—

 
304,149

 
304,149

Contribution from P&C and Corporate and Other
 
 
 
 
(81,824
)
 
(184,182
)
 
(266,006
)
Less: Interest expense (7)
 
 
 
 
 
 
165,061

 
165,061

Less: Non-controlling interests
 
 
 
 
 
 
70,261

 
70,261

Less: Income tax expense
 
 
 
 
 
 
59,070

 
59,070

Net income (loss) attributable to common shareholders
 
 
 
 
 
 
 
 
$
(560,398
)
Ratios – P&C operations: (8)
 
 
 
 
 
 
 
 
 
Loss and loss expense ratio
76.2
%
 
79.9
%
 
77.5
%
 
 
 
 
Underwriting expense ratio
30.6
%
 
31.4
%
 
30.8
%
 
 
 
 
Combined ratio
106.8
%
 
111.3
%
 
108.3
%
 
 
 
 
____________
(1)
Corporate and Other includes other items of our revenue and expenditures that are not evaluated at the segment level for reporting purposes. The underwriting profit (loss) and its components within this section are predominantly driven from 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 $51.7 million and $25.3 million, respectively.
(6)
Net fee income and other includes operating expenses of $50.7 million 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, 2016
(U.S. dollars in thousands)
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 - Life Funds Withheld Assets, Trading
 
 
 
 
(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 affiliates and operating affiliates
 
 
 
 
—

 
115,155

 
115,155

Less: Foreign 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. The underwriting profit (loss) and its components within this section are predominantly driven from 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 $54.0 million and $39.7 million, respectively.
(6)
Net fee income and other includes operating expenses of $49.0 million 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)
Insurance
 
Reinsurance
 
Total P&C
 
Corporate and 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 affiliates and operating affiliates
 
 
 
 
—

 
118,060

 
118,060

Gain on sale of operating affiliate
 
 
 
 
 
 
340,407

 
340,407

Less: (Gain) loss from the early extinguishment of debt
 
 
 
 
—

 
5,592

 
5,592

Less: Foreign 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. The underwriting profit (loss) and its components within this section are predominantly driven from 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 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 of $46.6 million 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.
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, 2017
(U.S. dollars in thousands)
Insurance (2)
 
Reinsurance
 
Corporate and Other
 
Total
P&C Operations:
 
 
 
 
 
 
 
Professional
$
1,296,020

 
$
257,309

 
$
—

 
$
1,553,329

Casualty
2,126,883

 
576,822

 
—

 
2,703,705

Property catastrophe
—

 
733,143

 
—

 
733,143

Property
1,610,302

 
1,121,276

 
—

 
2,731,578

Specialty
1,684,320

 
176,315

 
—

 
1,860,635

Other (1)
4,287

 
737,601

 
—

 
741,888

Total P&C Operations
$
6,721,812

 
$
3,602,466

 
$
—

 
$
10,324,278

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

 
—

 
12,334

 
12,334

Total Corporate and Other
$
—

 
$
—

 
$
12,334

 
$
12,334

Total
$
6,721,812

 
$
3,602,466

 
$
12,334

 
$
10,336,612

Year Ended December 31, 2016
 
 
 
 
 
 
 
P&C Operations:
 
 
 
 
 
 
 
Professional
$
1,209,237

 
$
163,157

 
$
—

 
$
1,372,394

Casualty
2,208,949

 
657,590

 
—

 
2,866,539

Property catastrophe
—

 
792,445

 
—

 
792,445

Property
1,523,024

 
1,021,626

 
—

 
2,544,650

Specialty
1,712,361

 
174,477

 
—

 
1,886,838

Other (1)
(2,076
)
 
305,097

 
—

 
303,021

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

____________
(1)
Other within the Insurance segment includes surety, structured indemnity and certain other exited lines. Other within the Reinsurance segment includes multiline, whole account contracts, credit and surety, accident and health and other lines.
(2)
Amounts from the prior year have been re-presented 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 movements of certain items out of Other as follows: Programs business is now reflected in Property or Casualty, depending upon the predominant line for each program; Surplus lines is now reflected primarily in Casualty and Property; and Accident & Health is now reflected in Specialty.
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, 2017, 2016 and 2015:
(U.S. dollars in thousands)
2017
 
2016
 
2015
P&C Operations:
 
 
 
 
 
Bermuda
$
1,708,516

 
$
1,267,613

 
$
781,618

United States
3,402,417

 
3,575,969

 
3,045,031

Europe
4,805,988

 
4,778,299

 
3,628,258

Other
751,503

 
608,755

 
433,917

Total P&C Operations
$
10,668,424

 
$
10,230,636

 
$
7,888,824

Corporate and Other:

 

 
 
Bermuda
$
11,801

 
$
12,194

 
$
62,276

Europe
533

 
(147
)
 
(37
)
Total Corporate and Other
$
12,334

 
$
12,047

 
$
62,239