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Investments (Tables)

12 Months Ended

Dec. 31, 2012

Available For Sale Securities And Held To Maturity Securities [Table Text Block]

				Included in AOCI
						Gross
						Unrealized
						Losses
						Related to
		Cost or		Gross		Changes in				Non-credit
December 31, 2012		Amortized		Unrealized		Estimated				Related
(U.S. dollars in thousands)		Cost		Gains		Fair Value		Fair Value		OTTI (1)
Fixed maturities - AFS
	U.S. Government and Government- Related/Supported (2)	$	1,906,044	$	131,860	$	(3,287)	$	2,034,617	$	-
	Corporate (3) (4) (5)		9,837,962		723,028		(78,990)		10,482,000		(11,453)
	RMBS – Agency		5,054,097		206,931		(5,535)		5,255,493		-
	RMBS – Non-Agency		678,469		46,132		(76,868)		647,733		(93,259)
	CMBS		1,010,794		70,745		(4,288)		1,077,251		(2,962)
	CDO		784,999		11,973		(87,156)		709,816		(4,872)
	Other asset-backed securities (3)		1,426,483		59,663		(15,435)		1,470,711		(6,530)
	U.S. States and political subdivisions of the States		1,767,669		146,294		(2,946)		1,911,017		-
	Non-U.S. Sovereign Government, Provincial, Supranational and Government-Related/Supported (2)		4,078,289		188,186		(8,193)		4,258,282		-
	Total fixed maturities - AFS	$	26,544,806	$	1,584,812	$	(282,698)	$	27,846,920	$	(119,076)
	Total short-term investments (2)	$	322,563	$	192	$	(52)	$	322,703	$	-
	Total equity securities	$	617,486	$	31,935	$	(62)	$	649,359	$	-
Total investments - AFS		$	27,484,855	$	1,616,939	$	(282,812)	$	28,818,982	$	(119,076)
Fixed maturities - HTM
	U.S. Government and Government- Related/Supported (2)	$	10,788	$	1,651	$	-	$	12,439	$	-
	Corporate (3)		1,425,320		190,871		(794)		1,615,397		-
	RMBS – Non-Agency		83,205		10,502		-		93,707		-
	CMBS		12,751		2,048		-		14,799		-
	Other asset-backed securities (3)		222,340		29,287		(167)		251,460		-
	Non-U.S. Sovereign Government, Provincial, Supranational and Government-Related/Supported (2)		1,060,043		216,679		(1,720)		1,275,002		-
Total investments - HTM		$	2,814,447	$	451,038	$	(2,681)	$	3,262,804	$	-

_______________

(1) Represents the non-credit component of OTTI losses, adjusted for subsequent sales of securities. It does not include the change in fair value subsequent to the impairment measurement date.

(2) U.S. Government and Government-Related/Supported, Non-U.S. Sovereign Government, Provincials, Supranationals and Government-Related/Supported and Total short-term investments includes government-related securities with an amortized cost of $1,912.7 million and fair value of $1,988.5 million and U.S. Agencies with an amortized cost of $404.3 million and fair value of $446.7 million.

(3) At December 31, 2012, Covered Bonds within Fixed maturities – AFS with an amortized cost of $605.4 million and a fair value of $647.1 million and Covered Bonds within Fixed maturities – HTM with an amortized cost of $8.4 million and a fair value of $8.6 million have been included within Other asset-backed securities to align the Company's classification to market indices. Covered Bonds were included in Corporate prior to January 1, 2012.

(4) Included within Corporate are certain medium term notes supported primarily by pools of European investment grade credit with varying degrees of leverage. The notes have a fair value of $194.3 million and an amortized cost of $194.8 million. These notes allow the investor to participate in cash flows of the underlying bonds including certain residual values, which could serve to either decrease or increase the ultimate values of these notes.

(5) Included within Corporate are Tier One and Upper Tier Two securities, representing committed term debt and hybrid instruments, which are senior to the common and preferred equities of the financial institutions. These securities have a fair value of $308.5 million and an amortized cost of $327.6 million at December 31, 2012.


				Included in AOCI
						Gross
						Unrealized
						Losses
						Related to
		Cost or		Gross		Changes in				Non-credit
December 31, 2011		Amortized		Unrealized		Estimated				Related
(U.S. dollars in thousands)		Cost		Gains		Fair Value		Fair Value		OTTI (1)
Fixed maturities - AFS
	U.S. Government and Government- Related/Supported (2)	$	1,864,354	$	130,874	$	(4,245)	$	1,990,983	$	-
	Corporate (3) (4) (5)		9,866,677		527,192		(285,247)		10,108,622		(51,666)
	RMBS – Agency		5,189,473		193,782		(3,849)		5,379,406		-
	RMBS – Non-Agency		851,557		19,667		(229,409)		641,815		(116,542)
	CMBS		927,684		56,704		(9,553)		974,835		(7,148)
	CDO		843,553		6,624		(191,575)		658,602		(4,997)
	Other asset-backed securities (3)		1,341,309		30,731		(31,791)		1,340,249		(6,305)
	U.S. States and political subdivisions of the States		1,698,573		101,025		(2,220)		1,797,378		-
	Non-U.S. Sovereign Government, Provincial, Supranational and Government-Related/Supported (2)		3,188,535		127,439		(17,839)		3,298,135		-
	Total fixed maturities - AFS	$	25,771,715	$	1,194,038	$	(775,728)	$	26,190,025	$	(186,658)
	Total short-term investments (2)	$	359,378	$	519	$	(834)	$	359,063	$	-
	Total equity securities	$	480,685	$	27,947	$	(40,435)	$	468,197	$	-
Total investments - AFS		$	26,611,778	$	1,222,504	$	(816,997)	$	27,017,285	$	(186,658)
Fixed maturities - HTM
	U.S. Government and Government- Related/Supported (3)	$	10,399	$	1,510	$	-	$	11,909	$	-
	Corporate (3)		1,290,209		91,313		(14,433)		1,367,089		-
	RMBS – Non-Agency		80,955		6,520		(32)		87,443		-
	Other asset-backed securities (3)		288,741		20,875		(320)		309,296		-
	Non-U.S. Sovereign Government, Provincial, Supranational and Government-Related/Supported (2)		998,674		127,227		(5,950)		1,119,951		-
Total investments - HTM		$	2,668,978	$	247,445	$	(20,735)	$	2,895,688	$	-

_______________

(1) Represents the non-credit component of OTTI losses, adjusted for subsequent sales of securities. It does not include the change in fair value subsequent to the impairment measurement date.

(2) U.S. Government and Government-Related/Supported, Non-U.S. Sovereign Government, Provincials, Supranationals and Government-Related/Supported and Total short-term investments includes government-related securities with an amortized cost of $1,878.3 million and fair value of $1,915.6 million and U.S. Agencies with an amortized cost of $494.0 million and fair value of $541.2 million.

(3) Covered Bonds within Fixed maturities – AFS with an amortized cost of $345.4 million and a fair value of $353.9 million and Covered Bonds within Fixed maturities – HTM with an amortized cost of $8.1 million and a fair value of $7.7 million at December 31, 2011 have been reclassified from Corporate to Other asset-backed securities to align the Company's classification to market indices and conform to current period presentation.

(4) Included within Corporate are certain medium term notes supported primarily by pools of European investment grade credit with varying degrees of leverage. The notes have a fair value of $266.0 million and an amortized cost of $297.7 million. These notes allow the investor to participate in cash flows of the underlying bonds including certain residual values, which could serve to either decrease or increase the ultimate values of these notes.

(5) Included within Corporate are Tier One and Upper Tier Two securities, representing committed term debt and hybrid instruments, which are senior to the common and preferred equities of the financial institutions. These securities have a fair value of $386.1 million and an amortized cost of $494.9 million at December 31, 2011.

Contractual Maturities Of Available For Sale Securities And Held To Maturity Income Securities [Table Text Block]

		December 31,2012 (1)				December 31,2011 (1)
		Amortized		Fair		Amortized		Fair
(U.S. dollars in thousands)		Cost		Value		Cost		Value
Fixed maturities - AFS
Due less than one year		$	1,939,803	$	1,952,250	$	2,004,395	$	2,020,361
Due after 1 through 5 years			8,521,090		8,877,512		7,736,717		7,909,354
Due after 5 through 10 years			4,701,391		5,065,158		3,619,141		3,777,073
Due after 10 years			2,427,680		2,790,996		3,257,886		3,488,330
		$	17,589,964	$	18,685,916	$	16,618,139	$	17,195,118
RMBS – Agency			5,054,097		5,255,493		5,189,473		5,379,406
RMBS – Non-Agency			678,469		647,733		851,557		641,815
CMBS			1,010,794		1,077,251		927,684		974,835
CDO			784,999		709,816		843,553		658,602
Other asset-backed securities			1,426,483		1,470,711		1,341,309		1,340,249
Total mortgage and asset-backed securities		$	8,954,842	$	9,161,004	$	9,153,576	$	8,994,907
	Total fixed maturities - AFS	$	26,544,806	$	27,846,920	$	25,771,715	$	26,190,025
Fixed maturities - HTM
Due less than one year		$	36,515	$	37,580	$	11,796	$	11,768
Due after 1 through 5 years			195,121		205,562		122,091		123,871
Due after 5 through 10 years			377,541		420,008		393,865		402,424
Due after 10 years			1,886,974		2,239,688		1,771,530		1,960,886
		$	2,496,151	$	2,902,838	$	2,299,282	$	2,498,949
RMBS – Non-Agency			83,205		93,707		80,955		87,443
CMBS			12,751		14,799		-		-
Other asset-backed securities			222,340		251,460		288,741		309,296
Total mortgage and asset-backed securities		$	318,296	$	359,966	$	369,696	$	396,739
	Total fixed maturities - HTM	$	2,814,447	$	3,262,804	$	2,668,978	$	2,895,688

_______________

(1) Included in the table above are Tier One and Upper Tier Two securities, representing committed term debt and hybrid instruments, which are senior to the common and preferred equities of the financial institutions, at their fair value of $308.5 million and $386.1 million at December 31, 2012 and December 31, 2011, respectively. These securities are reflected in the table based on their call date and have net unrealized losses of $19.1 million and $108.8 million at December 31, 2012 and December 31, 2011, respectively.

Schedule of Unrealized Loss on Investments [Table Text Block]

						Equal to or greater
		Less than 12 months				than 12 months
				Gross				Gross
December 31, 2012		Fair		Unrealized		Fair		Unrealized
(U.S. dollars in thousands)		Value		Losses		Value		Losses
Fixed maturities and short-term investments - AFS
	U.S. Government and Government-Related/Supported	$	307,879	$	(2,847)	$	9,951	$	(471)
	Corporate (1) (2) (3)		476,454		(10,603)		607,796		(68,387)
	RMBS – Agency		578,823		(4,541)		11,135		(994)
	RMBS – Non-Agency		6,674		(450)		448,555		(76,418)
	CMBS		92,899		(666)		23,580		(3,622)
	CDO		243		(1)		694,351		(87,155)
	Other asset-backed securities (3)		111,431		(531)		93,388		(14,904)
	U.S. States and political subdivisions of the States		77,273		(1,407)		12,851		(1,539)
	Non-U.S. Sovereign Government, Provincial, Supranational and Government-Related/Supported		355,409		(1,378)		131,884		(6,836)
Total fixed maturities and short-term investments - AFS		$	2,007,085	$	(22,424)	$	2,033,491	$	(260,326)
Total equity securities (4)		$	615	$	(62)	$	-	$	-
Fixed maturities -HTM
	Corporate (3)	$	4,568	$	(31)	$	23,005	$	(763)
	Other asset-backed securities (3)		1,239		(167)		-		-
	Non-U.S. Sovereign Government, Provincial, Supranational and Government-Related/Supported		-		-		10,518		(1,720)
Total fixed maturities - HTM		$	5,807	$	(198)	$	33,523	$	(2,483)

_______________

(1) Included within Corporate are certain medium term notes supported primarily by pools of European investment grade credit with varying degrees of leverage. The notes, which are in a gross unrealized loss position, have a fair value of $194.3 million and an amortized cost of $194.8 million. These notes allow the investor to participate in cash flows of the underlying bonds including certain residual values, which could serve to either decrease or increase the ultimate values of these notes.

(2) Included within Corporate are Tier One and Upper Tier Two securities, representing committed term debt and hybrid instruments, which are senior to the common and preferred equities of the financial institutions. These securities, which are in a gross unrealized loss position, have a fair value of $308.5 million and an amortized cost of $327.6 million at December 31, 2012.

(3) Covered Bonds within Fixed maturities and short-term investments – AFS with a fair value of $647.1 million and Covered Bonds within Fixed Maturities – HTM with a fair value of $8.6 million have been included within Other asset-backed securities to align the Company's classification to market indices. Covered Bonds were included in Corporate prior to January 1, 2012.

(4) Included within equity securities are investments in fixed income funds with a fair value of $101.9 million and an amortized cost of $100.0 million at December 31, 2012.

						Equal to or greater
		Less than 12 months				than 12 months
				Gross				Gross
December 31, 2011		Fair		Unrealized		Fair		Unrealized
(U.S. dollars in thousands)		Value		Losses		Value		Losses
Fixed maturities and short-term investments - AFS
	U.S. Government and Government-Related/Supported	$	289,260	$	(332)	$	43,622	$	(3,984)
	Corporate (1) (2) (3)		1,078,664		(42,151)		1,185,535		(243,683)
	RMBS – Agency		310,318		(849)		36,960		(3,000)
	RMBS – Non-Agency		106,294		(31,714)		449,138		(197,695)
	CMBS		69,109		(2,716)		39,444		(6,837)
	CDO		3,357		(2,261)		636,362		(189,456)
	Other asset-backed securities (3)		227,098		(3,324)		161,312		(28,467)
	U.S. States and political subdivisions of the States		25,309		(199)		27,646		(2,021)
	Non-U.S. Sovereign Government, Provincial, Supranational and Government-Related/Supported		265,766		(4,707)		202,890		(13,166)
Total fixed maturities and short-term investments - AFS		$	2,375,175	$	(88,253)	$	2,782,909	$	(688,309)
Total equity securities (4)		$	361,585	$	(40,435)	$	-	$	-
Fixed maturities -HTM
	Corporate (3)	$	147,836	$	(7,770)	$	62,343	$	(6,663)
	RMBS – Non-Agency		9,372		(32)		-		-
	Other asset-backed securities (3)		7,743		(314)		1,106		(6)
	Non-U.S. Sovereign Government, Provincial, Supranational and Government-Related/Supported		79,242		(1,206)		18,330		(4,744)
Total fixed maturities - HTM		$	244,193	$	(9,322)	$	81,779	$	(11,413)

_______________

(1) Included within Corporate are certain medium term notes supported primarily by pools of European investment grade credit with varying degrees of leverage. The notes, which are in a gross unrealized loss position, have a fair value of $266.0 million and an amortized cost of $297.7 million. These notes allow the investor to participate in cash flows of the underlying bonds including certain residual values, which could serve to either decrease or increase the ultimate values of these notes.

(2) Included within Corporate are Tier One and Upper Tier Two securities, representing committed term debt and hybrid instruments, which are senior to the common and preferred equities of the financial institutions. These securities, which are in a gross unrealized loss position, have a fair value of $386.1 million and an amortized cost of $494.9 million at December 31, 2011.

(3) Covered Bonds within Fixed maturities and short-term investments – AFS with a fair value of $353.9 million and Covered Bonds within Fixed Maturities – HTM with a fair value of $7.7 million have been included within Other asset-backed securities to align the Company's classification to market indices and to conform to current period presentation. Covered Bonds were included in Corporate prior to January 1, 2012.

(4) Included within equity securities are investments in fixed income funds with a fair value of $91.6 million and an amortized cost of $100.0 million at December 31, 2011.

Investment Income [Table Text Block]

(U.S. dollars in thousands)	2012		2011		2010
Fixed maturities, short term investments and cash equivalents	$	1,046,255	$	1,178,038	$	1,245,185
Equity securities and other investments		29,807		17,804		20,693
Funds withheld		12,090		12,240		12,738
Total gross investment income		1,088,152		1,208,082		1,278,616
Investment expenses		(75,804)		(70,313)		(80,578)
Net investment income	$	1,012,348	$	1,137,769	$	1,198,038

Realized Gain (Loss) on Investments [Table Text Block]

(U.S. dollars in thousands)		2012		2011		2010
Net realized gains (losses):
Fixed maturities, short term investments, cash and cash equivalents:
	Gross realized gains	$	163,328	$	185,530	$	133,521
	Gross realized losses on investments sold		(107,033)		(225,360)		(193,396)
	OTTI on investments, net of amounts transferred to other comprehensive income		(74,245)		(159,435)		(197,377)
	Net realized gains (losses)		(17,950)		(199,265)		(257,252)
Equity securities:
	Gross realized gains		42,009		2,194		11,605
	Gross realized losses on investments sold		(7,121)		(4,264)		(11,195)
	OTTI on investments, net of amounts transferred to other comprehensive income		(3,746)		-		-
	Net realized gains (losses)		31,142		(2,070)		410
Other investments:
	Gross realized gains		11,610		18,505		4,889
	Gross realized losses on investments sold		(7,983)		(4,792)		(11,094)
	OTTI on investments, net of amounts transferred to other comprehensive income		(2,721)		(737)		(7,756)
	Net realized gains (losses)		906		12,976		(13,961)
Net realized gains (losses) on investments			14,098		(188,359)		(270,803)
Net realized and unrealized gains (losses) on investment related derivative instruments			(1,228)		(22,981)		(16,321)
Net realized gains (losses) on investments and net realized and unrealized gains (losses) on investment related derivative instruments			12,870		(211,340)		(287,124)
Change in unrealized gains (losses):
Fixed maturities - AFS			884,259		598,542		1,095,762
Fixed maturities - HTM			221,647		212,419		30,039
Equity securities			44,361		(40,518)		22,595
Affiliates and other investments			46,163		25,269		44,314
Net change in unrealized gains (losses) on investments			1,196,430		795,712		1,192,710
Total net realized gains (losses) on investments, net realized and unrealized gains (losses) on investment related derivative instruments, and net change in unrealized gains (losses) on investments		$	1,209,300	$	584,372	$	905,586

Other than Temporary Impairment, Credit Losses Recognized in Earnings [Table Text Block]


Credit Loss Impairments
(U.S. dollars in thousands)	2012		2011
Balance at January 1,	$	333,379	$	426,372
Credit loss impairment recognized in the current period on securities not previously impaired		13,000		28,910
Credit loss impairments previously recognized on securities which matured, paid down, prepaid or were sold during the period		(114,056)		(209,187)
Credit loss impairments previously recognized on securities impaired to fair value during the period		(271)		-
Additional credit loss impairments recognized in the current period on securities previously impaired		52,869		88,016
Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected		(16,213)		(732)
Balance at December 31,	$	268,708	$	333,379

- Definition

Tabular disclosure of investment income derived from investments in debt and equity securities consisting of interest income earned from investments in debt securities and on cash and cash equivalents, dividend income from investments in equity securities, and income or expense derived from the amortization of investment related discounts or premiums, respectively. This item does not include realized or unrealized gains or losses on the sale or holding of investments in debt and equity securities required to be included in earnings for the period or for other than temporary losses related to investments in debt and equity securities which are included in realized losses in the period recognized.

+ References+ Details

- Definition

Tabular disclosure of marketable securities. This may consist of investments in certain debt and equity securities, short-term investments and other assets.

+ References+ Details

- Definition

Tabular disclosure of the amount of other than temporary impairment (OTTI) related to credit losses recognized in earnings including: (a) the beginning balance of the amount related to credit losses on debt securities held by the investor at the beginning of the period for which a portion of an OTTI was recognized in other comprehensive income; (b) additions for the amount related to the credit loss for which an OTTI was not previously recognized; (c) reductions for securities sold during the period (realized); (d) reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the investor intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis; (e) additional increases to the amount related to the credit loss for which an OTTI was previously recognized when the investor does not intend to sell the security and it is not more likely than not that the investor will be required to sell the security before recovery of its amortized cost basis; (f) reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security; and (g) the ending balance of the amount related to credit losses on debt securities held by the entity at the end of the period for which a portion of an OTTI was recognized in other comprehensive income.

+ References+ Details