Segment Information (Tables)

3 Months Ended

Mar. 31, 2018

Segment Reporting [Abstract]

Schedule of segment reporting, by segment

The following tables summarize the segment results for the three months ended March 31, 2018 and 2017:

Three Months Ended March 31, 2018(U.S. dollars in thousands)	Insurance			Reinsurance			Total P&C			Corporate and Other (1)			Total
Gross premiums written	$	2,866,539		$	2,060,601		$	4,927,140		$	52,595		$	4,979,735
Net premiums written	1,481,867			1,670,744			3,152,611			3,107			3,155,718
Net premiums earned	1,665,789			931,392			2,597,181			3,107			2,600,288
Less: Net losses and loss expenses (2)	1,064,992			557,014			1,622,006			10,307			1,632,313
Less: Acquisition costs	221,962			240,854			462,816			1,011			463,827
Less: Operating expenses (3)	316,380			73,539			389,919			141			390,060
Underwriting profit (loss)	$	62,455		$	59,985		$	122,440		$	(8,352	)	$	114,088
Net investment income - excluding Life Funds Withheld Assets (4)							168,253			7,519			175,772
Net investment income - Life Funds Withheld Assets										30,398			30,398
Net results from structured products (5)	2,103			1,308			3,411			—			3,411
Net fee income and other (6)	(6,703		)	892			(5,811		)	69			(5,742		)
Net realized investment gains (losses) - excluding Life Funds Withheld Assets							(60,957		)	114			(60,843		)
Net realized investment gains (losses) - Life Funds Withheld Assets							—			(22,512		)	(22,512		)
Net realized and unrealized gains (losses) on derivative instruments							—			4,221			4,221
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets							—			22,921			22,921
Net income (loss) from investment affiliates and operating affiliates							—			55,951			55,951
Less: Foreign exchange (gains) losses							—			9,841			9,841
Less: Corporate operating expenses							—			70,043			70,043
Contribution from P&C and Corporate and Other							227,336			10,445			237,781
Less: Interest expense (7)										44,646			44,646
Less: Income tax expense										31,902			31,902
Less: Non-controlling interests										8,585			8,585
Net income (loss) attributable to common shareholders													$	152,648
Ratios – P&C operations: (8)
Loss and loss expense ratio	63.9		%	59.8		%	62.5		%
Underwriting expense ratio	32.4		%	33.8		%	32.8		%
Combined ratio	96.3		%	93.6		%	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. 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 Company's acquisition of Catlin Group Ltd in 2015 ("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 $12.3 million and $8.9 million, respectively.

(6) Net fee income and other includes operating expenses of $12.5 million 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 March 31, 2017 (U.S. dollars in thousands)	Insurance			Reinsurance			Total P&C			Corporate and Other (1)			Total
Gross premiums written	$	2,694,216		$	1,927,390		$	4,621,606		$	56,811		$	4,678,417
Net premiums written	1,508,591			1,471,169			2,979,760			3,310			2,983,070
Net premiums earned	1,635,315			884,166			2,519,481			3,310			2,522,791
Less: Net losses and loss expenses (2)	1,060,363			523,093			1,583,456			7,291			1,590,747
Less: Acquisition costs (2)	210,483			224,079			434,562			1,307			435,869
Less: Operating expenses (3)	285,729			71,757			357,486			233			357,719
Underwriting profit (loss)	$	78,740		$	65,237		$	143,977		$	(5,521	)	$	138,456
Net investment income - excluding Life Funds Withheld Assets (4)							146,566			7,227			153,793
Net investment income - Life Funds Withheld Assets										33,364			33,364
Net results from structured products (5)	2,269			645			2,914			—			2,914
Net fee income and other (6)	1,967			686			2,653			(438		)	2,215
Net realized investment gains (losses) - excluding Life Funds Withheld Assets							4,831			(613		)	4,218
Net realized investment gains (losses) - Life Funds Withheld Assets							—			33,068			33,068
Net realized and unrealized gains (losses) on derivative instruments							—			(7,069		)	(7,069		)
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets							—			(50,101		)	(50,101		)
Net income (loss) from investment affiliates and operating affiliates							—			51,870			51,870
Less: Foreign exchange (gains) losses							—			(3,336		)	(3,336		)
Less: Corporate operating expenses							—			98,873			98,873
Contribution from P&C and Corporate and Other							300,941			(33,750		)	267,191
Less: Interest expense (7)										40,250			40,250
Less: Income tax expense										13,092			13,092
Less: Non-controlling interests										61,006			61,006
Net income (loss) attributable to common shareholders													$	152,843
Ratios – P&C operations: (8)
Loss and loss expense ratio	64.8		%	59.2		%	62.8		%
Underwriting expense ratio	30.4		%	33.4		%	31.5		%
Combined ratio	95.2		%	92.6		%	94.3		%

____________

(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 $13.4 million and $10.5 million, respectively.

(6) Net fee income and other includes operating expenses of $11.4 million 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 product type for the three months ended March 31, 2018 and 2017:

Three Months Ended March 31, 2018(U.S. dollars in thousands)	Insurance			Reinsurance		Corporate and Other		Total
P&C Operations:
Professional	$	320,717		$	64,608	$	—	$	385,325
Casualty	481,010			149,963		—		630,973
Property catastrophe	—			136,503		—		136,503
Property	406,778			258,089		—		664,867
Specialty	457,650			44,261		—		501,911
Other (1)	(366		)	277,968		—		277,602
Total P&C Operations	$	1,665,789		$	931,392	$	—	$	2,597,181
Corporate and Other:
Run-off Life operations - Other Life	—			—		3,107		3,107
Total Corporate and Other	$	—		$	—	$	3,107	$	3,107
Total	$	1,665,789		$	931,392	$	3,107	$	2,600,288
Three Months Ended March 31, 2017 (U.S. dollars in thousands)	Insurance (2)			Reinsurance		Corporate and Other		Total
P&C Operations:
Professional	$	305,482		$	52,926	$	—	$	358,408
Casualty	474,195			156,634		—		630,829
Property catastrophe	—			148,406		—		148,406
Property	450,503			272,346		—		722,849
Specialty	402,687			36,626		—		439,313
Other (1)	2,448			217,228		—		219,676
Total P&C Operations	$	1,635,315		$	884,166	$	—	$	2,519,481
Corporate and Other:
Run-off Life operations - Other Life	—			—		3,310		3,310
Total Corporate and Other	$	—		$	—	$	3,310	$	3,310
Total	$	1,635,315		$	884,166	$	3,310	$	2,522,791

____________

(1) Other within the Insurance segment includes: surety and certain discontinued 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 out of Other are in the Insurance segment, and include: livestock business into Specialty; and credit surety into Casualty.