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Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2013

Goodwill And Intangible Assets [Abstract]

7. Goodwill and Intangible Assets

The Company's goodwill and intangible assets at December 31, 2013 and 2012 were as follows (in thousands of U.S. dollars):

				Definite-		Indefinite-
				lived intangible		lived intangible		Total
2013		Goodwill		assets		asset	intangible assets
Balance at January 1	$	456,380	$	206,920	$	7,350	$	214,270
Intangible assets amortization		0		(27,180)		0		(27,180)

Balance at December 31	$	456,380	$	179,740	$	7,350	$	187,090

				Definite-		Indefinite-
				lived intangible		lived intangible		Total
2012		Goodwill		assets		asset	intangible assets
Balance at January 1	$	455,533	$	126,517	$	7,350	$	133,867
Acquired during the year		847		112,202		0		112,202
Intangible assets amortization		0		(31,799)		0		(31,799)

Balance at December 31	$	456,380	$	206,920	$	7,350	$	214,270

On December 31, 2012, the Company acquired 100% of the outstanding common shares of PartnerRe Health for $72 million plus tangible book value, consistent with the Company's diversified strategy.

Intangible asset amortization during the years ended December 31, 2013, 2012 and 2011 totaled $27.2 million, $31.8 million and $44.8 million, respectively, of which $nil, $nil and $8.4 million, respectively, is recorded within acquisition costs and $27.2 million, $31.8 million and $36.4 million, respectively, is recorded within amortization of intangible assets in the Consolidated Statements of Operations. The amount recorded within acquisition costs in the Consolidated Statements of Operations approximates the amount of Paris Re's deferred acquisition costs that would have been recorded as acquisition costs had they not been fair valued under purchase accounting.

The gross carrying value and accumulated amortization of intangible assets by type at December 31, 2013 and 2012 is as follows (in thousands of U.S. dollars):

		2013				2012
			Gross carrying		Accumulated		Gross carrying		Accumulated
			value		amortization		value		amortization
Definite-lived intangible assets:
	Unpaid losses and loss expenses	$	191,196	$	115,958	$	191,196	$	96,478
	Renewal rights		80,863		38,132		80,863		32,700
	Customer relationships		63,408		1,637		63,408		0
	Fronting arrangements		631		631		631		0

Total definite-lived intangible assets		$	336,098	$	156,358	$	336,098	$	129,178

Indefinite-lived intangible asset:
	U.S. insurance licenses		7,350		n/a		7,350		n/a

Total intangible assets		$	343,448	$	156,358	$	343,448	$	129,178

_______________

n/a: not applicable

At December 31, 2013 and 2012, the allocation of the goodwill to the Company's segments and sub-segments was as follows (in thousands of U.S. dollars):

			Amount
Non-life segment:
	North America	$	82,026
	Global (Non-U.S.) P&C		149,895
	Global Specialty		179,641
	Catastrophe		26,014
Life and Health segment			18,804

Total goodwill		$	456,380

The estimated amortization expense for each of the five succeeding fiscal years related to the Company's definite-lived intangible assets is as follows (in thousands of U.S. dollars):

Year		Amount
2014	$	27,486
2015		26,593
2016		25,919
2017		22,818
2018		21,247

Total	$	124,063

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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