Segment Information (Tables)

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Schedule of segment reporting, by segment

The following tables summarize the segment results for the three and six months ended June 30, 2018 and 2017:

Three Months Ended June 30, 2018(U.S. dollars in thousands)	Insurance			Reinsurance			Total P&C			Corporate and Other (1)			Total
Gross premiums written	$	2,881,921		$	1,048,352		$	3,930,273		$	55,093		$	3,985,366
Net premiums written	1,929,564			889,675			2,819,239			2,505			2,821,744
Net premiums earned	1,748,355			944,309			2,692,664			2,505			2,695,169
Less: Net losses and loss expenses (2)	1,224,756			496,553			1,721,309			10,117			1,731,426
Less: Acquisition costs	237,694			232,538			470,232			1,259			471,491
Less: Operating expenses (3)	306,585			80,309			386,894			195			387,089
Underwriting profit (loss)	$	(20,680	)	$	134,909		$	114,229		$	(9,066	)	$	105,163
Net investment income - excluding Life Funds Withheld Assets (4)							182,009			7,227			189,236
Net investment income - Life Funds Withheld Assets										30,252			30,252
Net results from structured products (5)	1,810			6,572			8,382			—			8,382
Net fee income and other (6)	(4,991		)	1,140			(3,851		)	45			(3,806		)
Net realized investment gains (losses) - excluding Life Funds Withheld Assets							24,902			2,494			27,396
Net realized investment gains (losses) - Life Funds Withheld Assets							—			63,409			63,409
Net realized and unrealized gains (losses) on derivative instruments							—			16,126			16,126
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets							—			(36,120		)	(36,120		)
Net income (loss) from investment affiliates and operating affiliates							—			67,735			67,735
Less: Foreign exchange (gains) losses							—			(12,140		)	(12,140		)
Less: Corporate operating expenses							—			71,308			71,308
Contribution from P&C and Corporate and Other							325,671			82,934			408,605
Less: Interest expense (7)										44,769			44,769
Less: Income tax expense										27,036			27,036
Less: Non-controlling interests										17,804			17,804
Net income (loss) attributable to common shareholders													$	318,996
Ratios – P&C operations: (8)
Loss and loss expense ratio	70.1		%	52.6		%	63.9		%
Underwriting expense ratio	31.1		%	33.1		%	31.9		%
Combined ratio	101.2		%	85.7		%	95.8		%

____________

(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 $3.9 million, respectively.

(6) Net fee income and other includes operating expenses of $12.1 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 June 30, 2017 (U.S. dollars in thousands)	Insurance			Reinsurance			Total P&C			Corporate and Other (1)			Total
Gross premiums written	$	2,576,754		$	977,676		$	3,554,430		$	58,519		$	3,612,949
Net premiums written	1,741,201			905,240			2,646,441			2,824			2,649,265
Net premiums earned	1,652,304			861,789			2,514,093			2,824			2,516,917
Less: Net losses and loss expenses (2)	1,077,087			451,996			1,529,083			7,595			1,536,678
Less: Acquisition costs (2)	231,908			200,394			432,302			1,282			433,584
Less: Operating expenses (3)	288,681			69,435			358,116			278			358,394
Underwriting profit (loss)	$	54,628		$	139,964		$	194,592		$	(6,331	)	$	188,261
Net investment income - excluding Life Funds Withheld Assets (4)							155,559			8,157			163,716
Net investment income - Life Funds Withheld Assets										31,439			31,439
Net results from structured products (5)	1,981			942			2,923			—			2,923
Net fee income and other (6)	(2,826		)	694			(2,132		)	135			(1,997		)
Net realized investment gains (losses) - excluding Life Funds Withheld Assets							57,140			(7,971		)	49,169
Net realized investment gains (losses) - Life Funds Withheld Assets							—			7,459			7,459
Net realized and unrealized gains (losses) on derivative instruments							—			(906		)	(906		)
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets							—			(34,596		)	(34,596		)
Net income (loss) from investment affiliates and operating affiliates							—			73,522			73,522
Less: Foreign exchange (gains) losses							—			(5,643		)	(5,643		)
Less: Corporate operating expenses							—			102,162			102,162
Contribution from P&C and Corporate and Other							408,082			(25,611		)	382,471
Less: Interest expense (7)										43,422			43,422
Less: Income tax expense										29,006			29,006
Less: Non-controlling interests										8,423			8,423
Net income (loss) attributable to common shareholders													$	301,620
Ratios – P&C operations: (8)
Loss and loss expense ratio	65.2		%	52.4		%	60.8		%
Underwriting expense ratio	31.5		%	31.4		%	31.5		%
Combined ratio	96.7		%	83.8		%	92.3		%

____________

(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 $13.5 million and $10.6 million, respectively.

(6) Net fee income and other includes operating expenses of $12.2 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.

Six Months Ended June 30, 2018(U.S. dollars in thousands)	Insurance			Reinsurance			Total P&C			Corporate and Other (1)			Total
Gross premiums written	$	5,748,460		$	3,108,953		$	8,857,413		$	107,688		$	8,965,101
Net premiums written	3,411,431			2,560,419			5,971,850			5,612			5,977,462
Net premiums earned	3,414,144			1,875,701			5,289,845			5,612			5,295,457
Less: Net losses and loss expenses (2)	2,289,748			1,053,567			3,343,315			20,424			3,363,739
Less: Acquisition costs	459,656			473,392			933,048			2,270			935,318
Less: Operating expenses (3)	622,965			153,848			776,813			336			777,149
Underwriting profit (loss)	$	41,775		$	194,894		$	236,669		$	(17,418	)	$	219,251
Net investment income - excluding Life Funds Withheld Assets (4)							350,262			14,746			365,008
Net investment income - Life Funds Withheld Assets										60,650			60,650
Net results from structured products (5)	3,913			7,880			11,793			—			11,793
Net fee income and other (6)	(11,694		)	2,032			(9,662		)	114			(9,548		)
Net realized investment gains (losses) - excluding Life Funds Withheld Assets							(36,055		)	2,608			(33,447		)
Net realized investment gains (losses) - Life Funds Withheld Assets							—			40,897			40,897
Net realized and unrealized gains (losses) on derivative instruments							—			20,347			20,347
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets							—			(13,199		)	(13,199		)
Net income (loss) from investment affiliates and operating affiliates							—			123,686			123,686
Less: Foreign exchange (gains) losses							—			(2,299		)	(2,299		)
Less: Corporate operating expenses							—			141,351			141,351
Contribution from P&C and Corporate and Other							553,007			93,379			646,386
Less: Interest expense (7)										89,415			89,415
Less: Income tax expense										58,938			58,938
Less: Non-controlling interests										26,389			26,389
Net income (loss) attributable to common shareholders													$	471,644
Ratios – P&C operations: (8)
Loss and loss expense ratio	67.1		%	56.2		%	63.2		%
Underwriting expense ratio	31.7		%	33.4		%	32.3		%
Combined ratio	98.8		%	89.6		%	95.5		%

____________

(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 $24.6 million and $12.8 million, respectively.

(6) Net fee income and other includes operating expenses of $24.6 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.

Six Months Ended June 30, 2017 (U.S. dollars in thousands)	Insurance			Reinsurance			Total P&C			Corporate and Other (1)			Total
Gross premiums written	$	5,270,970		$	2,905,066		$	8,176,036		$	115,330		$	8,291,366
Net premiums written	3,249,792			2,376,409			5,626,201			6,134			5,632,335
Net premiums earned	3,287,619			1,745,955			5,033,574			6,134			5,039,708
Less: Net losses and loss expenses (2)	2,137,450			975,089			3,112,539			14,886			3,127,425
Less: Acquisition costs (2)	442,391			424,473			866,864			2,589			869,453
Less: Operating expenses (3)	574,410			141,192			715,602			511			716,113
Underwriting profit (loss)	$	133,368		$	205,201		$	338,569		$	(11,852	)	$	326,717
Net investment income - excluding Life Funds Withheld Assets (4)							302,125			15,384			317,509
Net investment income - Life Funds Withheld Assets										64,803			64,803
Net results from structured products (5)	4,250			1,587			5,837			—			5,837
Net fee income and other (6)	(859		)	1,380			521			(303		)	218
Net realized investment gains (losses) - excluding Life Funds Withheld Assets							61,971			(8,584		)	53,387
Net realized investment gains (losses) - Life Funds Withheld Assets							—			40,527			40,527
Net realized and unrealized gains (losses) on derivative instruments							—			(7,975		)	(7,975		)
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets							—			(84,697		)	(84,697		)
Net income (loss) from investment affiliates and operating affiliates							—			125,392			125,392
Less: Foreign exchange (gains) losses							—			(8,979		)	(8,979		)
Less: Corporate operating expenses							—			201,035			201,035
Contribution from P&C and Corporate and Other							709,023			(59,361		)	649,662
Less: Interest expense (7)										83,672			83,672
Less: Income tax expense										42,098			42,098
Less: Non-controlling interests										69,429			69,429
Net income (loss) attributable to common shareholders													$	454,463
Ratios – P&C operations: (8)
Loss and loss expense ratio	65.0		%	55.8		%	61.8		%
Underwriting expense ratio	30.9		%	32.4		%	31.5		%
Combined ratio	95.9		%	88.2		%	93.3		%

____________

(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 $26.9 million and $21.1 million, respectively.

(6) Net fee income and other includes operating expenses of $23.7 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 and six months ended June 30, 2018 and 2017:

Three Months Ended June 30, 2018(U.S. dollars in thousands)	Insurance			Reinsurance		Corporate and Other		Total
P&C Operations:
Professional	$	335,442		$	63,781	$	—	$	399,223
Casualty	512,307			155,069		—		667,376
Property catastrophe	—			129,727		—		129,727
Property	429,472			253,796		—		683,268
Specialty	470,765			47,293		—		518,058
Other (1)	369			294,643		—		295,012
Total P&C Operations	$	1,748,355		$	944,309	$	—	$	2,692,664
Corporate and Other:
Run-off Life operations - Other Life	$	—		$	—	$	2,505	$	2,505
Total Corporate and Other	$	—		$	—	$	2,505	$	2,505
Total	$	1,748,355		$	944,309	$	2,505	$	2,695,169
Three Months Ended June 30, 2017 (U.S. dollars in thousands)	Insurance (2)			Reinsurance		Corporate and Other		Total
P&C Operations:
Professional	$	306,070		$	54,304	$	—	$	360,374
Casualty	537,655			149,627		—		687,282
Property catastrophe	—			164,057		—		164,057
Property	406,230			286,493		—		692,723
Specialty	403,103			47,676		—		450,779
Other (1)	(754		)	159,632		—		158,878
Total P&C Operations	$	1,652,304		$	861,789	$	—	$	2,514,093
Corporate and Other:
Run-off Life operations - Other Life	$	—		$	—	$	2,824	$	2,824
Total Corporate and Other	$	—		$	—	$	2,824	$	2,824
Total	$	1,652,304		$	861,789	$	2,824	$	2,516,917

____________

(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 & 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 the following movements out of Other in the Insurance segment: livestock business into Specialty; and credit surety into Casualty.

Six Months Ended June 30, 2018(U.S. dollars in thousands)	Insurance		Reinsurance		Corporate and Other		Total
P&C Operations:
Professional	$	656,159	$	128,389	$	—	$	784,548
Casualty	993,317		305,032		—		1,298,349
Property catastrophe	—		266,230		—		266,230
Property	836,250		511,885		—		1,348,135
Specialty	928,415		91,554		—		1,019,969
Other (1)	3		572,611		—		572,614
Total P&C Operations	$	3,414,144	$	1,875,701	$	—	$	5,289,845
Corporate and Other:
Run-off Life operations - Other Life	$	—	$	—	$	5,612	$	5,612
Total Corporate and Other	$	—	$	—	$	5,612	$	5,612
Total	$	3,414,144	$	1,875,701	$	5,612	$	5,295,457
Six Months Ended June 30, 2017 (U.S. dollars in thousands)	Insurance (2)		Reinsurance		Corporate and Other		Total
P&C Operations:
Professional	$	611,552	$	107,230	$	—	$	718,782
Casualty	1,011,850		306,261		—		1,318,111
Property catastrophe	—		312,463		—		312,463
Property	856,733		558,839		—		1,415,572
Specialty	805,790		84,302		—		890,092
Other (1)	1,694		376,860		—		378,554
Total P&C Operations	$	3,287,619	$	1,745,955	$	—	$	5,033,574
Corporate and Other:
Run-off Life operations - Other Life	$	—	$	—	$	6,134	$	6,134
Total Corporate and Other	$	—	$	—	$	6,134	$	6,134
Total	$	3,287,619	$	1,745,955	$	6,134	$	5,039,708

____________

(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 & 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 the following movements out of Other in the Insurance segment: livestock business into Specialty; and credit surety into Casualty.