XML 116 R18.htm IDEA: XBRL DOCUMENT

Deposit Liabilities	12 Months Ended
Dec. 31, 2012
Deposit Contract Liabilities [Abstract]
Deposit liabilities	11. Deposit Liabilities The Company has entered into certain insurance and reinsurance policies that transfer insufficient risk under GAAP to be accounted for as insurance or reinsurance transactions and are recognized as deposits. These structured property and casualty agreements have been recorded as deposit liabilities and are initially matched by an equivalent amount of investments. The Company has investment risk related to its ability to generate sufficient investment income to enable the total invested assets to cover the payment of the ultimate liability. See Note 5, “Investments,” for further information relating to the Company's net investment income as well as realized and unrealized investment (losses) gains. Each deposit liability accrues at a rate equal to the internal rate of return of the payment receipts and obligations due during the life of the agreement. Where the timing and/or amount of future payments are uncertain, cash flows reflecting the Company's actuarially determined best estimates are utilized. Deposit liabilities are initially recorded at an amount equal to the assets received. Total deposit liabilities were $1.6 billion for the years ended December 31, 2012 and 2011. Interest expense of $66.3 million, $51.3 million and $54.4 million was recorded related to the accretion of deposit liabilities for the years ended December 31, 2012, 2011 and 2010, respectively.

Deposit Liabilities

12 Months Ended

Dec. 31, 2012

Deposit Contract Liabilities [Abstract]

11. Deposit Liabilities

The Company has entered into certain insurance and reinsurance policies that transfer insufficient risk under GAAP to be accounted for as insurance or reinsurance transactions and are recognized as deposits. These structured property and casualty agreements have been recorded as deposit liabilities and are initially matched by an equivalent amount of investments. The Company has investment risk related to its ability to generate sufficient investment income to enable the total invested assets to cover the payment of the ultimate liability. See Note 5, “Investments,” for further information relating to the Company's net investment income as well as realized and unrealized investment (losses) gains. Each deposit liability accrues at a rate equal to the internal rate of return of the payment receipts and obligations due during the life of the agreement. Where the timing and/or amount of future payments are uncertain, cash flows reflecting the Company's actuarially determined best estimates are utilized. Deposit liabilities are initially recorded at an amount equal to the assets received.

Total deposit liabilities were $1.6 billion for the years ended December 31, 2012 and 2011. Interest expense of $66.3 million, $51.3 million and $54.4 million was recorded related to the accretion of deposit liabilities for the years ended December 31, 2012, 2011 and 2010, respectively.

- Definition

The entire disclosure for insurance products considered to be short-duration contracts because the contract provides insurance protection for a fixed period of short duration and enables the insurer to cancel the contract or to adjust the provisions of the contract at the end of any contract period, such as adjusting the amount of premiums charged or coverage provided, and on contracts on which amounts are paid but insurance risk is not transferred.

+ References+ Details