RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2011

Related Party Transactions Disclosure [Text Block]

25. Related Party Transactions

          At December 31, 2011 and 2010, the Company owned minority stakes in three and four, respectively, independent investment management companies (“Investment Manager Affiliates”) that are actively managing client capital and seeking growth opportunities. The Company sold its stake in Finisterre in the third quarter of 2011. For further information regarding this sale see Note 6(b), “Investment Affiliates – Operating Affiliates.” The Company seeks to develop relationships with specialty investment management organizations, generally acquiring an equity interest in the business. The Company also invests in certain of the funds and limited partnerships and other legal entities managed by these affiliates and through these funds and partnerships pays management and performance fees to the Company’s Investment Manager Affiliates.

          In the normal course of business, the Company enters into certain quota share reinsurance contracts with a subsidiary of one of its other strategic affiliates, ARX Holding Corporation. During the years ended December 31, 2011, 2010 and 2009, these contracts resulted in reported net premiums written, net reported claims and reported acquisition costs as summarized below. Management believes that these transactions are conducted at market rates consistent with negotiated arms-length contracts.

ARX Holding Corporation:
Year Ended December 31
(U.S. dollars in thousands)	2011		2010		2009
Reported net premiums written	$	65,347	$	71,077	$	44,097
Net losses incurred	$	34,597	$	33,098	$	20,056
Reported acquisition costs	$	25,268	$	32,790	$	19,079

          In addition, the Company had entered into a reinsurance contract with another strategic affiliate, ITAU, which as outlined in Note 6, “Investments in Affiliates,” was sold during the second quarter of 2010. During the year ended December 31, 2009, the reinsurance contract resulted in reported net premiums of approximately $3.1 million, loss reserves of $1.2 million, and reported acquisition costs of $1.4 million.