Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 09, 2015 | Jun. 30, 2014 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | MARKEL CORP | ||
Entity Central Index Key | 1096343 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 13,962,386 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $8,808,000,000 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
ASSETS | |||
Fixed maturities (amortized cost of $9,929,137 in 2014 and $10,129,141 in 2013) | $10,422,882 | $10,142,536 | |
Equity securities (cost of $1,951,658 in 2014 and $1,566,553 in 2013) | 4,137,576 | 3,251,798 | |
Short-term investments (estimated fair value approximates cost) | 1,594,849 | 1,452,288 | |
Total Investments | 16,155,307 | 14,846,622 | |
Cash and cash equivalents | 1,960,169 | 1,978,526 | |
Restricted cash and cash equivalents | 522,225 | 786,926 | |
Receivables | 1,135,217 | 1,141,773 | |
Reinsurance recoverable on unpaid losses | 1,868,669 | 1,854,414 | |
Reinsurance recoverable on paid losses | 102,206 | 102,002 | |
Deferred policy acquisition costs | 353,410 | 260,967 | |
Prepaid reinsurance premiums | 365,458 | 383,559 | |
Goodwill | 1,049,115 | [1] | 967,717 |
Intangible assets | 702,747 | 565,083 | |
Other assets | 985,834 | 1,067,922 | |
Total Assets | 25,200,357 | 23,955,511 | |
LIABILITIES AND EQUITY | |||
Unpaid losses and loss adjustment expenses | 10,404,152 | 10,262,056 | |
Life and annuity benefits | 1,305,818 | 1,486,574 | |
Unearned premiums | 2,245,690 | 2,127,115 | |
Payables to insurance and reinsurance companies | 276,122 | 295,496 | |
Senior long-term debt and other debt (estimated fair value of $2,493,000 in 2014 and $2,372,000 in 2013) | 2,253,594 | 2,256,227 | |
Other liabilities | 1,051,931 | 777,850 | |
Total Liabilities | 17,537,307 | 17,205,318 | |
Redeemable noncontrolling interests | 61,048 | 72,183 | |
Commitments and contingencies | |||
Shareholders' equity: | |||
Common stock | 3,308,395 | 3,288,863 | |
Retained earnings | 2,581,866 | 2,294,909 | |
Accumulated other comprehensive income | 1,704,557 | 1,089,805 | |
Total Shareholders' Equity | 7,594,818 | 6,673,577 | |
Noncontrolling interests | 7,184 | 4,433 | |
Total Equity | 7,602,002 | 6,678,010 | |
Total Liabilities and Equity | $25,200,357 | $23,955,511 | |
[1] | Goodwill is net of accumulated impairment losses of $13.7 million included in Other. |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Fixed maturities, amortized cost | $9,929,137 | $10,129,141 |
Equity securities, cost | 1,951,658 | 1,566,553 |
Senior long-term debt and other debt, estimated fair value | $2,493,000 | $2,372,000 |
Consolidated_Statements_Of_Inc
Consolidated Statements Of Income And Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
OPERATING REVENUES | |||
Earned premiums | $3,840,912 | $3,231,616 | $2,147,128 |
Net investment income | 363,230 | 317,373 | 282,107 |
Net realized investment gains: | |||
Other-than-temporary impairment losses | -4,784 | -4,706 | -12,078 |
Net realized investment gains, excluding other-than-temporary impairment losses | 50,784 | 67,858 | 43,671 |
Net realized investment gains | 46,000 | 63,152 | 31,593 |
Other revenues | 883,525 | 710,942 | 539,284 |
Total Operating Revenues | 5,133,667 | 4,323,083 | 3,000,112 |
OPERATING EXPENSES | |||
Losses and loss adjustment expenses | 2,202,467 | 1,816,273 | 1,154,068 |
Underwriting, acquisition and insurance expenses | 1,460,882 | 1,312,312 | 929,472 |
Amortization of intangible assets | 57,627 | 55,223 | 33,512 |
Other expenses | 854,871 | 663,528 | 478,248 |
Total Operating Expenses | 4,575,847 | 3,847,336 | 2,595,300 |
Operating Income | 557,820 | 475,747 | 404,812 |
Interest expense | 117,442 | 114,004 | 92,762 |
Income Before Income Taxes | 440,378 | 361,743 | 312,050 |
Income tax expense | 116,690 | 77,898 | 53,802 |
Net Income | 323,688 | 283,845 | 258,248 |
Net income attributable to noncontrolling interests | 2,506 | 2,824 | 4,863 |
Net Income to Shareholders | 321,182 | 281,021 | 253,385 |
OTHER COMPREHENSIVE INCOME | |||
Net holding gains arising during the period | 687,735 | 225,545 | 266,425 |
Change in unrealized other-than-temporary impairment losses on fixed maturities arising during the period | 173 | -141 | -160 |
Reclassification adjustments for net gains included in net income | -26,161 | -40,830 | -24,051 |
Change in net unrealized gains on investments, net of taxes | 661,747 | 184,574 | 242,214 |
Change in foreign currency translation adjustments, net of taxes | -32,241 | -10,143 | 1,534 |
Change in net actuarial pension loss, net of taxes | -14,750 | 4,065 | 6,664 |
Total Other Comprehensive Income | 614,756 | 178,496 | 250,412 |
Comprehensive Income | 938,444 | 462,341 | 508,660 |
Comprehensive income attributable to noncontrolling interests | 2,510 | 2,852 | 4,858 |
Comprehensive Income to Shareholders | $935,934 | $459,489 | $503,802 |
NET INCOME PER SHARE | |||
Basic (dollars per share) | $22.38 | $22.57 | $25.96 |
Diluted (dollars per share) | $22.27 | $22.48 | $25.89 |
Consolidated_Statements_Of_Cha
Consolidated Statements Of Changes In Equity (USD $) | Total | Total Equity [Member] | Total Shareholders' Equity [Member] | Common Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Noncontrolling Interests [Member] | Redeemable Noncontrolling Interests [Member] |
In Thousands | ||||||||
Balance, redeemable noncontrolling interests at Dec. 31, 2011 | $74,231 | |||||||
Balance at Dec. 31, 2011 | 3,388,115 | 3,387,513 | 891,507 | 1,835,086 | 660,920 | 602 | ||
Balance, shares at Dec. 31, 2011 | 9,621 | |||||||
Net income (loss) | 258,248 | 253,123 | 253,385 | 253,385 | 0 | -262 | 5,125 | |
Other comprehensive income (loss) | 250,412 | 250,417 | 250,417 | 0 | 250,417 | 0 | -5 | |
Comprehensive Income | 508,660 | 503,540 | 503,802 | -262 | 5,120 | |||
Issuance of common stock | 9,145 | 9,145 | 9,145 | 0 | 0 | 0 | 0 | |
Issuance of common stock, shares | 47 | |||||||
Repurchase of common stock | -16,873 | -16,873 | 0 | -16,873 | 0 | 0 | 0 | |
Repurchase of common stock, shares | -39 | |||||||
Restricted stock awards expensed | 6,462 | 6,462 | 6,462 | 0 | 0 | 0 | 0 | |
Restricted stock awards expensed, shares | 0 | |||||||
Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 15,055 | |
Acquisitions, shares | 0 | |||||||
Adjustment of redeemable noncontrolling interests | 3,100 | -3,101 | -3,101 | 0 | -3,101 | 0 | 0 | 3,101 |
Adjustment of redeemable noncontrolling interests, shares | 0 | |||||||
Purchase of noncontrolling interest | 1,430 | 1,430 | 1,430 | 0 | 0 | 0 | -3,573 | |
Purchase of noncontrolling interest, shares | 0 | |||||||
Other | 299 | 279 | 436 | -157 | 0 | 20 | -7,709 | |
Other, shares | 0 | |||||||
Balance, redeemable noncontrolling interests at Dec. 31, 2012 | 86,225 | |||||||
Balance at Dec. 31, 2012 | 3,889,017 | 3,888,657 | 908,980 | 2,068,340 | 911,337 | 360 | ||
Balance, shares at Dec. 31, 2012 | 9,629 | |||||||
Net income (loss) | 283,845 | 280,063 | 281,021 | 281,021 | 0 | -958 | 3,782 | |
Other comprehensive income (loss) | 178,496 | 178,468 | 178,468 | 0 | 178,468 | 0 | 28 | |
Comprehensive Income | 462,341 | 458,531 | 459,489 | -958 | 3,810 | |||
Issuance of common stock | 24,518 | 24,518 | 24,518 | 0 | 0 | 0 | 0 | |
Issuance of common stock, shares | 71 | |||||||
Repurchase of common stock | -57,388 | -57,388 | 0 | -57,388 | 0 | 0 | 0 | |
Repurchase of common stock, shares | -109 | |||||||
Restricted stock awards expensed | 25,239 | 25,239 | 25,239 | 0 | 0 | 0 | 0 | |
Restricted stock awards expensed, shares | -3 | |||||||
Acquisitions, shares | 4,398 | |||||||
Acquisition of Alterra | 2,330,199 | 2,330,199 | 2,330,199 | 0 | 0 | 0 | 0 | |
Adjustment of redeemable noncontrolling interests | -2,000 | 1,963 | 1,963 | 0 | 1,963 | 0 | 0 | -1,963 |
Adjustment of redeemable noncontrolling interests, shares | 0 | |||||||
Purchase of noncontrolling interest | -136 | -136 | -136 | 0 | 0 | 0 | -11,716 | |
Purchase of noncontrolling interest, shares | 0 | |||||||
Other | 6,067 | 1,036 | 63 | 973 | 0 | 5,031 | -4,173 | |
Other, shares | 0 | |||||||
Balance, redeemable noncontrolling interests at Dec. 31, 2013 | 72,183 | 72,183 | ||||||
Balance at Dec. 31, 2013 | 6,678,010 | 6,678,010 | 6,673,577 | 3,288,863 | 2,294,909 | 1,089,805 | 4,433 | |
Balance, shares at Dec. 31, 2013 | 13,986 | |||||||
Net income (loss) | 323,688 | 319,201 | 321,182 | 321,182 | 0 | -1,981 | 4,487 | |
Other comprehensive income (loss) | 614,756 | 614,752 | 614,752 | 0 | 614,752 | 0 | 4 | |
Comprehensive Income | 938,444 | 933,953 | 935,934 | -1,981 | 4,491 | |||
Issuance of common stock | 5,691 | 5,691 | 5,691 | 0 | 0 | 0 | 0 | |
Issuance of common stock, shares | 19 | |||||||
Repurchase of common stock | -26,053 | -26,053 | 0 | -26,053 | 0 | 0 | 0 | |
Repurchase of common stock, shares | -43 | |||||||
Restricted stock awards expensed | 22,935 | 22,935 | 22,935 | 0 | 0 | 0 | 0 | |
Restricted stock awards expensed, shares | 0 | |||||||
Adjustment of redeemable noncontrolling interests | 8,200 | -8,186 | -8,186 | 0 | -8,186 | 0 | 0 | 8,186 |
Adjustment of redeemable noncontrolling interests, shares | 0 | |||||||
Purchase of noncontrolling interest | -9,352 | -10,257 | -10,257 | 0 | 0 | 905 | -18,566 | |
Purchase of noncontrolling interest, shares | 0 | |||||||
Other | 5,004 | 1,177 | 1,163 | 14 | 0 | 3,827 | -5,246 | |
Other, shares | 0 | |||||||
Balance, redeemable noncontrolling interests at Dec. 31, 2014 | 61,048 | 61,048 | ||||||
Balance at Dec. 31, 2014 | $7,602,002 | $7,602,002 | $7,594,818 | $3,308,395 | $2,581,866 | $1,704,557 | $7,184 | |
Balance, shares at Dec. 31, 2014 | 13,962 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
OPERATING ACTIVITIES | |||
Net income | $323,688 | $283,845 | $258,248 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Deferred income tax expense | 84,543 | 4,050 | 37,648 |
Depreciation and amortization | 203,580 | 190,066 | 87,326 |
Net realized investment gains | -46,000 | -63,152 | -31,593 |
Decrease (increase) in receivables | 21,148 | 142,065 | -36,590 |
Decrease (increase) in deferred policy acquisition costs | -99,387 | -103,704 | 37,209 |
Increase (decrease) in unpaid losses and loss adjustment expenses, net | 249,873 | 290,130 | -28,052 |
Decrease in life and annuity benefits | -62,883 | -40,235 | 0 |
Increase in unearned premiums, net | 147,840 | 97,249 | 71,073 |
Increase (decrease) in payables to insurance and reinsurance companies | -45,204 | -150,764 | 19,190 |
Increase (decrease) in income taxes payable | -46,576 | 81,995 | -9,909 |
Other | -13,830 | 13,976 | -12,017 |
Net Cash Provided By Operating Activities | 716,792 | 745,521 | 392,533 |
INVESTING ACTIVITIES | |||
Proceeds from sales of fixed maturities and equity securities | 1,286,871 | 879,564 | 336,548 |
Proceeds from maturities, calls and prepayments of fixed maturities | 1,420,817 | 1,475,938 | 510,697 |
Cost of fixed maturities and equity securities purchased | -3,153,055 | -1,651,397 | -426,439 |
Net change in short-term investments | -129,164 | -470,423 | -428,292 |
Proceeds from sales of equity method investments | 107,292 | 313,557 | 0 |
Cost of equity method investments | -16,081 | -38,018 | -40,650 |
Change in restricted cash and cash equivalents | 264,701 | -263,014 | -37,642 |
Additions to property and equipment | -82,132 | -47,725 | -45,519 |
Acquisitions, net of cash acquired | -319,086 | -12,198 | -243,675 |
Other | -2,368 | 1,103 | -2,158 |
Net Cash Provided (Used) By Investing Activities | -622,205 | 187,387 | -377,130 |
FINANCING ACTIVITIES | |||
Additions to senior long-term debt and other debt | 89,480 | 547,214 | 492,792 |
Repayment and retirement of senior long-term debt and other debt | -83,722 | -321,978 | -313,790 |
Repurchases of common stock | -26,053 | -57,388 | -16,873 |
Issuance of common stock | 5,691 | 24,518 | 9,145 |
Purchase of redeemable noncontrolling interests | -25,918 | -11,852 | -2,143 |
Distributions to noncontrolling interests | -5,245 | -5,124 | -7,684 |
Other | -21,357 | -23 | -19,485 |
Net Cash Provided (Used) By Financing Activities | -67,124 | 175,367 | 141,962 |
Effect of foreign currency rate changes on cash and cash equivalents | -45,820 | 6,485 | 3,142 |
Increase (decrease) in cash and cash equivalents | -18,357 | 1,114,760 | 160,507 |
Cash and cash equivalents at beginning of year | 1,978,526 | 863,766 | 703,259 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | $1,960,169 | $1,978,526 | $863,766 |
Summary_Of_Significant_Account
Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | Summary of Significant Accounting Policies |
Markel Corporation is a diverse financial holding company serving a variety of niche markets. Markel Corporation's principal business markets and underwrites specialty insurance products. Through its wholly-owned subsidiary, Markel Ventures, Inc. (Markel Ventures), Markel Corporation also owns interests in various industrial and service businesses that operate outside of the specialty insurance marketplace. | |
On May 1, 2013 (the Acquisition Date), Markel Corporation completed the acquisition of 100% of the issued and outstanding common stock of Alterra Capital Holdings Limited (Alterra). | |
a)Basis of Presentation. The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) and include the accounts of Markel Corporation and its subsidiaries (the Company). All significant intercompany balances and transactions have been eliminated in consolidation. The consolidated financial statements include the results of operations and cash flows of Alterra from the Acquisition Date to December 31, 2014 and not in any prior periods, except with respect to the Supplemental Pro Forma Information included in note 2. The Company consolidates the results of its Markel Ventures subsidiaries on a one-month lag. Certain prior year amounts have been reclassified to conform to the current presentation. | |
b)Use of Estimates. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. Management periodically reviews its estimates and assumptions. Quarterly reviews include evaluating the adequacy of reserves for unpaid losses and loss adjustment expenses, life and annuity reinsurance benefit reserves, litigation contingencies, the reinsurance allowance for doubtful accounts and income tax liabilities, as well as analyzing the recoverability of deferred tax assets, estimating reinsurance premiums written and earned and evaluating the investment portfolio for other-than-temporary declines in estimated fair value. Estimates and assumptions for goodwill and intangible assets are reviewed in conjunction with an acquisition, and goodwill and indefinite-lived intangible assets are reassessed at least annually for impairment. Actual results may differ materially from the estimates and assumptions used in preparing the consolidated financial statements. | |
c)Investments. Available-for-sale investments are recorded at estimated fair value. Unrealized gains and losses on investments, net of deferred income taxes, are included in accumulated other comprehensive income in shareholders' equity. The Company completes a detailed analysis each quarter to assess whether the decline in the fair value of any investment below its cost basis is deemed other-than-temporary. | |
Premiums and discounts are amortized or accreted over the lives of the related fixed maturities as an adjustment to the yield using the effective interest method. Dividend and interest income are recognized when earned. Realized investment gains or losses are included in earnings. Realized gains or losses from sales of investments are derived using the first-in, first-out method. | |
Investments accounted for under the equity method of accounting are recorded at cost within other assets on the consolidated balance sheets and subsequently increased or decreased by the Company's proportionate share of the net income or loss of the investee. The Company records its proportionate share of net income or loss of the investee in net investment income. The Company records its proportionate share of other comprehensive income or loss of the investee as a component of other comprehensive income. Dividends or other equity distributions are recorded as a reduction of the investment. The Company reviews equity method investments for impairment when events or circumstances indicate that a decline in the fair value of the investment below its carrying value is other-than-temporary. | |
d)Cash and Cash Equivalents. The Company considers all investments with original maturities of 90 days or less to be cash equivalents. The carrying value of the Company's cash and cash equivalents and restricted cash and cash equivalents approximates fair value. | |
e)Receivables. Receivables include amounts receivable from agents, brokers and insureds, which represent premiums that are both currently due and amounts not yet due on insurance and reinsurance policies. Premiums for insurance policies are generally due at inception. Premiums for reinsurance policies generally become due over the period of coverage based on the policy terms. The Company monitors the credit risk associated with premiums receivable, taking into consideration the fact that in certain instances credit risk may be reduced by the Company's right to offset loss obligations or unearned premiums against premiums receivable. Amounts deemed uncollectible are charged to net income in the period they are determined. Changes in the estimate of reinsurance premiums written will result in an adjustment to premiums receivable in the period they are determined. | |
f)Reinsurance Recoverables. Amounts recoverable from reinsurers are estimated in a manner consistent with the claim liability associated with the reinsured business. Allowances are established for amounts deemed uncollectible and reinsurance recoverables are recorded net of these allowances. The Company evaluates the financial condition of its reinsurers and monitors concentration risk to minimize its exposure to significant losses from individual reinsurers. | |
g)Deferred Policy Acquisition Costs. Costs directly related to the acquisition of insurance premiums are deferred and amortized over the related policy period, generally one year. Concurrent with the adoption of Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2010-26, Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts, effective January 1, 2012, the Company only defers acquisition costs incurred that are related directly to the successful acquisition of new or renewal insurance contracts, including commissions to agents and brokers and premium taxes. Commissions received related to reinsurance premiums ceded are netted against broker commissions in determining acquisition costs eligible for deferral. To the extent that future policy revenues on existing policies are not adequate to cover related costs and expenses, deferred policy acquisition costs are charged to earnings. The Company does not consider anticipated investment income in determining whether a premium deficiency exists. | |
h)Goodwill and Intangible Assets. Goodwill and intangible assets are recorded as a result of business acquisitions. Goodwill represents the excess of the amount paid to acquire a business over the net fair value of assets acquired and liabilities assumed at the date of acquisition. Indefinite-lived and other intangible assets are recorded at fair value as of the acquisition date. The determination of the fair value of certain assets acquired and liabilities assumed involves significant judgment and the use of valuation models and other estimates, which require assumptions that are inherently subjective. Goodwill and indefinite-lived intangible assets are tested for impairment at least annually. The Company completes an annual test during the fourth quarter of each year based upon the results of operations through September 30. Intangible assets with definite lives are amortized using the straight-line method over their estimated useful lives, generally five to 20 years, and are reviewed for impairment when events or circumstances indicate that their carrying value may not be recoverable. | |
i)Property and Equipment. Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization of property and equipment are calculated using the straight-line method over the estimated useful lives (generally, the life of the lease for leasehold improvements, ten to 40 years for buildings, seven to 40 years for land improvements, three to ten years for furniture and equipment and three to 25 years for other property and equipment). | |
j)Redeemable Noncontrolling Interests. The Company owns controlling interests in various companies through its Markel Ventures operations. In some cases, the Company has the option to acquire the remaining equity interests, and the remaining equity interests have the option to sell their interests to the Company, in the future. The redemption value of the remaining equity interests is generally based on the respective company's earnings in specified periods preceding the redemption date. The redeemable noncontrolling interests generally become redeemable through 2018. | |
The Company recognizes changes in the redemption value that exceed the carrying value of redeemable noncontrolling interests to retained earnings as if the balance sheet date were also the redemption date. Changes in the redemption value also result in an adjustment to net income to shareholders in the calculation of basic and diluted net income per share. The adjustment recorded to retained earnings during 2014, 2013 and 2012 was an increase of $8.2 million, a decrease of $2.0 million, and an increase of $3.1 million, respectively. | |
k)Income Taxes. The Company records deferred income taxes to reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their tax bases. Deferred tax assets are reduced by a valuation allowance when management believes it is more likely than not that some, or all, of the deferred tax assets will not be realized. The Company recognizes the tax benefit from an uncertain tax position taken or expected to be taken in income tax returns only if it is more likely than not that the tax position will be sustained upon examination by tax authorities, based on the technical merits of the position. Tax positions that meet the more likely than not threshold are then measured using a probability weighted approach, whereby the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement is recognized. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. | |
l)Unpaid Losses and Loss Adjustment Expenses. Unpaid losses and loss adjustment expenses on our property and casualty insurance business are based on evaluations of reported claims and estimates for losses and loss adjustment expenses incurred but not reported. Estimates for losses and loss adjustment expenses incurred but not reported are based on reserve development studies, among other things. The Company does not discount reserves for losses and loss adjustment expenses to reflect estimated present value, except for reserves assumed in connection with an acquisition, which are recorded at fair value at the acquisition date. Recorded reserves are estimates, and the ultimate liability may be greater or less than the estimates. | |
m)Life and Annuity Benefits. Prior to its acquisition by the Company, Alterra entered into long duration reinsurance contracts for life and annuity benefits which subject the Company to mortality, longevity and morbidity risks. The assumptions used to determine policy benefit reserves were determined at the Acquisition Date and are generally locked-in for the life of the contract unless an unlocking event occurs. To the extent existing policy reserves, together with the present value of future gross premiums and expected investment income earned thereon, are not adequate to cover the present value of future benefits, settlement and maintenance costs, the locked-in assumptions are revised to current best estimate assumptions and a charge to earnings for life and annuity benefits is recognized at that time. Because of the assumptions and estimates used in establishing reserves for life and annuity benefit obligations and the long-term nature of these reinsurance contracts, the ultimate liability may be greater or less than the estimates. | |
Results attributable to the run-off of life and annuity reinsurance business are included in other revenues and other expenses in the Company's consolidated statements of income and comprehensive income and as part of the Company's Other Insurance (Discontinued Lines) segment. | |
n)Revenue Recognition. | |
Property and Casualty Premiums | |
Insurance premiums are generally earned on a pro rata basis over the policy period, typically one year. The cost of reinsurance ceded is initially recorded as prepaid reinsurance premiums and is amortized over the reinsurance contract period in proportion to the amount of insurance protection provided. Premiums ceded are netted against premiums written. | |
Assumed reinsurance premiums are recorded at the inception of each contract based upon contract terms and information received from cedents and brokers and are earned on a pro rata basis over the coverage period, or for multi-year contracts, in proportion with the underlying risk exposure to the extent there is variability in the exposure through the coverage period. Changes in reinsurance premium estimates are expected and may result in significant adjustments in any period. These estimates change over time as additional information regarding changes in underlying exposures is obtained. Any subsequent differences arising on such estimates are recorded as premiums written in the period they are determined. The Company uses the periodic method to account for assumed reinsurance from foreign reinsurers. The Company's foreign reinsurers provide sufficient information to record foreign assumed business in the same manner as the Company records assumed business from United States reinsurers. | |
Certain contracts that the Company writes provide for reinstatement of coverage. Reinstatement premiums are the premiums for the restoration of the insurance or reinsurance limit of a contract to its full amount after a loss occurrence by the insured or reinsured. The Company accrues for reinstatement premiums resulting from losses recorded. Such accruals are based upon contractual terms and management judgment is involved with respect to the amount of losses recorded. Changes in estimates of losses recorded on contracts with reinstatement premium features will result in changes in reinstatement premiums based on contractual terms. Reinstatement premiums are recognized at the time losses are recorded and are earned on a pro-rata basis over the coverage period. | |
Other Revenues | |
Other revenues primarily relate to the Company's Markel Ventures operations and consist of revenues from the sale of manufactured products and service revenues. Revenues from manufactured products are generally recognized at the time title transfers to the customer, which typically occurs at the point of shipment or delivery to the customer, depending on the terms of the sales arrangement. Revenues from services are generally recognized as the services are performed. Services provided pursuant to a contract are recognized either over the contract period or upon completion of the elements specified in the contract, depending on the terms of the contract. | |
o)Stock-based Compensation. Stock-based compensation expense is recognized as part of underwriting, acquisition and insurance expenses over the requisite service period. Stock-based compensation expense, net of taxes, was $18.7 million in 2014, $18.4 million in 2013 and $4.4 million in 2012. See note 12. | |
p)Foreign Currency Translation. The functional currencies of the Company's foreign operations are the currencies in which the majority of their business is transacted. Assets and liabilities of foreign operations are translated into the United States Dollar using the exchange rates in effect at the balance sheet date. Revenues and expenses of foreign operations are translated using the average exchange rate for the period. Gains or losses from translating the financial statements of foreign operations are included, net of taxes, in shareholders' equity as a component of accumulated other comprehensive income. Gains and losses arising from transactions denominated in a foreign currency, other than a functional currency, are included in net income. | |
The Company manages its exposure to foreign currency risk primarily by matching assets, other than goodwill and intangible assets, and liabilities denominated in the same currency. To the extent that assets and liabilities in foreign currencies are not matched, the Company is exposed to foreign currency risk. For functional currencies, the related exchange rate fluctuations are reflected in other comprehensive income. The cumulative foreign currency translation adjustment, net of taxes, was a loss of $43.5 million and $11.2 million at December 31, 2014 and 2013, respectively. | |
q)Derivative Financial Instruments. Derivative instruments, including derivative instruments resulting from hedging activities, are measured at fair value and recognized as either assets or liabilities on the consolidated balance sheets. The changes in fair value of derivatives are recognized in earnings unless the derivative is designated as a hedge and qualifies for hedge accounting. | |
The Company's foreign currency forward contracts are generally designated and qualify as hedges of a net investment in a foreign operation. The effective portion of the change in fair value resulting from these hedges is reported in currency translation adjustments as part of other comprehensive income. The ineffective portion of the change in fair value is recognized in earnings. | |
r)Comprehensive Income. Comprehensive income represents all changes in equity that result from recognized transactions and other economic events during the period. Other comprehensive income refers to revenues, expenses, gains and losses that under U.S. GAAP are included in comprehensive income but excluded from net income, such as unrealized gains or losses on investments, foreign currency translation adjustments and changes in net actuarial pension loss. | |
s)Net Income Per Share. Basic net income per share is computed by dividing adjusted net income to shareholders by the weighted average number of common shares outstanding during the year. Diluted net income per share is computed by dividing adjusted net income to shareholders by the weighted average number of common shares and dilutive potential common shares outstanding during the year. See note 12(b). | |
t)Recent Accounting Pronouncements. Effective January 1, 2014, the Company adopted FASB ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. ASU No. 2013-11 requires that a liability related to an unrecognized tax benefit be offset against a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. In that case, the liability associated with the unrecognized tax benefit is presented in the financial statements as a reduction to the related deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward. Otherwise, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The adoption of this guidance did not have an impact on the Company's financial position, results of operations or cash flows. | |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which creates a new comprehensive revenue recognition standard that will serve as a single source of revenue guidance for all companies in all industries. The guidance applies to all companies that either enter into contracts with customers to transfer goods or services or enter into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards, such as insurance contracts. ASU No. 2014-09's core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under the current guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU No. 2014-09 becomes effective for the Company during the first quarter of 2017 and may be applied retrospectively or under a modified retrospective method where the cumulative effect is recognized at the date of initial application. Early application is not permitted. The Company is currently evaluating ASU No. 2014-09 to determine the potential impact that adopting this standard will have on its consolidated financial statements. |
Acquisitions
Acquisitions | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Acquisitions [Abstract] | ||||||||
Acquisitions | Acquisitions | |||||||
Acquisition of Alterra | ||||||||
a)Overview. On May 1, 2013, the Company completed the acquisition of 100% of the the issued and outstanding common stock of Alterra pursuant to an agreement dated December 18, 2012 (the Merger Agreement) which provided for the merger of Alterra with one of the Company's subsidiaries. Alterra was a Bermuda-headquartered global enterprise providing diversified specialty property and casualty insurance and reinsurance products to corporations, public entities and other property and casualty insurers. Results attributable to Alterra's property and casualty insurance and reinsurance business are included in each of the Company's underwriting segments, which were redefined during the first quarter of 2014. Previously, Alterra also offered life and annuity reinsurance products. In 2010, Alterra ceased writing life and annuity reinsurance contracts and placed this business into run-off. Results attributable to the run-off of Alterra's life and annuity reinsurance business are included in the Company's Other Insurance (Discontinued Lines) segment. See note 19 for further discussion of the Company's reportable segments. | ||||||||
Pursuant to the terms of the Merger Agreement, on the Acquisition Date, equity holders of Alterra received, in exchange for each share of Alterra common stock held (other than restricted shares that did not vest in connection with the transaction), (1) 0.04315 shares of the Company's common stock and (2) $10.00 in cash. Equity holders of Alterra received total consideration of $3.3 billion, consisting of cash consideration of $964.3 million and stock consideration of 4.3 million shares of the Company's common stock. | ||||||||
b)Purchase Price. The Company's total purchase price for Alterra as of the Acquisition Date was calculated as follows: | ||||||||
(in thousands, except per share amounts) | ||||||||
Shares of Alterra common stock outstanding as of the Acquisition Date | 96,433 | |||||||
Exchange ratio per the Merger Agreement | 0.04315 | |||||||
Markel share issuance to Alterra shareholders | 4,161 | |||||||
Shares of Alterra restricted stock outstanding as of the Acquisition Date | 2,239 | |||||||
Incentive award ratio per the Merger Agreement | 0.06252 | |||||||
Markel restricted stock issuance to Alterra restricted stock holders | 140 | |||||||
Multiplied by Markel's weighted average stock price on April 30, 2013 (1) | $ | 529.59 | ||||||
Markel share and restricted stock issuance consideration, net of taxes | $ | 2,267,648 | ||||||
Alterra common shares outstanding as of the Acquisition Date that received cash consideration | 96,433 | |||||||
Multiplied by cash price per share component per the Merger Agreement | $ | 10 | ||||||
Markel cash consideration | $ | 964,330 | ||||||
Fair value of Markel warrant issuance to Alterra warrant holders as of the Acquisition Date | $ | 73,685 | ||||||
Fair value of Markel stock option issuance to Alterra stock option holders as of the Acquisition Date, net of taxes | $ | 12,335 | ||||||
Fair value of partially vested Markel restricted stock unit issuance as of the Acquisition Date, net of taxes | $ | 6,867 | ||||||
Unrecognized compensation on unvested restricted stock and restricted stock units | $ | (20,572 | ) | |||||
Total acquisition consideration | $ | 3,304,293 | ||||||
(1) | The fair value of the shares issued by the Company was calculated as the weighted average price of the Company's stock on April 30, 2013, the day preceding the Acquisition Date. | |||||||
As part of the consideration, the Company issued replacement warrants, options and restricted stock awards to holders of Alterra warrants, options and restricted stock awards. The acquisition consideration related to the options, restricted stock and restricted stock units issued was net of income taxes of $1.9 million, $10.1 million and $0.7 million, respectively. See note 12 for additional information about the equity awards issued in connection with the acquisition. | ||||||||
c)Fair Value of Net Assets Acquired and Liabilities Assumed. The purchase price was allocated to the acquired assets and liabilities of Alterra based on estimated fair values at the Acquisition Date. The Company recognized goodwill of $295.7 million, which is primarily attributable to Alterra's assembled workforce and synergies that are expected to result upon integration of Alterra into the Company's insurance operations and investing activities. See note 7 for goodwill recorded by reportable segment. None of the goodwill that was recorded is deductible for income tax purposes. The Company also recognized indefinite lived intangible assets of $37.5 million and other intangible assets of $170.0 million, which will be amortized over a weighted average period of 17 years. | ||||||||
The following table summarizes the fair values of the assets acquired and liabilities assumed at the Acquisition Date. | ||||||||
(dollars in thousands) | ||||||||
ASSETS | ||||||||
Investments | $ | 6,407,841 | ||||||
Cash and cash equivalents | 1,036,274 | |||||||
Restricted cash and cash equivalents | 414,497 | |||||||
Receivables | 866,388 | |||||||
Reinsurance recoverable on unpaid losses | 1,169,084 | |||||||
Reinsurance recoverable on paid losses | 80,672 | |||||||
Prepaid reinsurance premiums | 317,445 | |||||||
Other assets | 859,884 | |||||||
LIABILITIES | ||||||||
Unpaid losses and loss adjustment expenses | 4,719,461 | |||||||
Life and annuity benefits | 1,477,482 | |||||||
Unearned premiums | 1,075,610 | |||||||
Payables to insurance and reinsurance companies | 342,858 | |||||||
Senior long-term debt | 512,463 | |||||||
Other liabilities | 223,108 | |||||||
Net assets | 2,801,103 | |||||||
Goodwill | 295,690 | |||||||
Intangible assets | 207,500 | |||||||
Acquisition date fair value | $ | 3,304,293 | ||||||
An explanation of the significant adjustments for fair value and the related impact on amortization is as follows: | ||||||||
• | Investments - Fixed maturity investments acquired include a net increase of $223.1 million to adjust the historical carrying amount of Alterra's investments to their estimated fair value as of the Acquisition Date. The difference in the historical amortized cost of the fixed maturity investments acquired and their estimated fair value as of the Acquisition Date, $495.5 million, represents incremental premium that will be amortized to net investment income over the term of the underlying securities. The amount of the unamortized incremental premium as of December 31, 2014 and 2013 was $281.1 million and $398.1 million, respectively. The decrease in the unamortized incremental premium is due to amortization expense of $59.3 million and $58.3 million for the years ended December 31, 2014 and 2013, respectively, and sales of securities. | |||||||
• | Intangible assets - Establish the estimated fair value of intangible assets related to Alterra (see below for further detail). | |||||||
• | Unearned Premiums - Unearned premiums acquired include a decrease of $176.3 million to adjust the carrying value of Alterra's historical unearned premiums to fair value as of the Acquisition Date. The adjustment consists of the present value of the expected underwriting profit within the unearned premiums liability less costs to service the related policies and a risk premium. This adjustment was amortized to underwriting, acquisition and insurance expenses over a weighted average period of approximately one year, as the contracts for business in-force as of the Acquisition Date expired. As of December 31, 2014, this adjustment was fully amortized. | |||||||
• | Unpaid losses and loss adjustment expenses - Unpaid losses and loss adjustment expenses acquired include an increase of $120.8 million to adjust the carrying value of Alterra's historical unpaid losses and loss adjustment expenses, net of related reinsurance recoverable, to fair value as of the Acquisition Date. The estimated fair value consists of the present value of the expected net loss and loss adjustment expense payments plus a risk premium. This adjustment, plus the $26.5 million unamortized fair value adjustment included in Alterra's historical unpaid losses and loss adjustment expenses, will be amortized to losses and loss adjustment expenses over a weighted average period of approximately five years, based on the estimated payout pattern of net reserves as of the Acquisition Date. The amount of the unamortized fair value adjustment included in unpaid losses and loss adjustment expenses as of December 31, 2014 and 2013 was $114.6 million and $136.5 million, respectively. | |||||||
• | Life and Annuity Benefits - Life and annuity benefits acquired include an increase of $329.6 million to adjust the carrying value of Alterra's historical life and annuity benefits to fair value as of the Acquisition Date. The estimated fair value consists of the present value of the expected net life and annuity benefit payments plus a risk premium. See note 10 for detail regarding accounting for life and annuity benefits. | |||||||
• | Senior long-term debt - Senior long-term debt acquired includes an increase of $71.9 million to adjust the carrying value of Alterra's senior long-term debt to its estimated fair value based on prevailing interest rates and other factors as of the Acquisition Date. This adjustment will be amortized to interest expense over the term of the notes. See note 11. The amount of the unamortized premium on the acquired senior long-term debt as of December 31, 2014 and 2013 was $56.7 million and $66.1 million, respectively. | |||||||
The following table summarizes the intangible assets recorded in connection with the acquisition. | ||||||||
(dollars in thousands) | Amount | Economic | ||||||
Useful Life | ||||||||
Customer relationships | $ | 132,000 | 18 years | |||||
Broker relationships | 19,000 | 18 years | ||||||
Technology | 18,000 | Ten years | ||||||
Trade names | 1,000 | One year | ||||||
Lloyd's syndicate capacity | 12,000 | Indefinite | ||||||
Insurance licenses | 25,500 | Indefinite | ||||||
Intangible assets as of the Acquisition Date | $ | 207,500 | ||||||
Customer relationships represent policyholder relationships and the network of insurance companies through which Alterra conducted its operations. The fair value of customer relationships and broker relationships was estimated using the income approach. Critical inputs into the valuation model for customer relationships and broker relationships include estimates of expected premium and attrition rates, and discounting at a weighted average cost of capital. Technology represents the intangible asset related to Alterra's internally developed software and was valued using the income approach. | ||||||||
The fair value of Lloyd's syndicate capacity and insurance licenses was estimated using the market approach. Lloyd's syndicate capacity represents Alterra's authorized premium income limit to write insurance business in the Lloyd's of London (Lloyd's) insurance market. The Lloyd's capacity is renewed annually at no cost to the Company or may be freely purchased or sold, subject to Lloyd's approval. The ability to write insurance business within the syndicate capacity is indefinite with the premium income limit being set annually by the Company, subject to Lloyd's approval. | ||||||||
d)Income Taxes. As a result of the acquisition, Alterra and its non-U.S. subsidiaries became controlled foreign corporations subject to U.S. income tax at a statutory rate of 35%. The acquisition was taxable to U.S. shareholders of Alterra, and Markel has elected to treat it as an asset acquisition under section 338(g) of the U.S. Internal Revenue Code of 1986 (IRC), as amended. | ||||||||
Effective May 1, 2013, the Company made an IRC section 953(d) election with respect to Markel Bermuda Limited (Markel Bermuda, formerly known as Alterra Bermuda Limited), a wholly-owned subsidiary of Alterra. As a result of the 953(d) election, Markel Bermuda is treated as a domestic corporation for U.S. tax purposes and, accordingly, is required to record deferred taxes at the 35% statutory U.S. rate. | ||||||||
As part of the allocation of the purchase price, the Company recorded net deferred tax assets of $310.1 million. Of this amount, $343.9 million represents deferred tax assets related to accrued losses and loss adjustment expenses and life and annuity benefits, which were partially offset by deferred tax liabilities of $64.6 million related to the estimated fair value of the intangible assets recorded. Other net deferred tax assets recorded primarily relate to differences between financial reporting and tax bases of the acquired assets and liabilities as of the Acquisition Date. As of the Acquisition Date, earnings of Alterra's foreign subsidiaries are considered reinvested indefinitely, consistent with the Company's other foreign subsidiaries, and no provision for deferred U.S. income tax was recorded. | ||||||||
e)Transaction and Acquisition-Related Costs. The following table summarizes transaction and acquisition-related costs incurred by the Company in connection with the acquisition, all of which were included in underwriting, acquisition and insurance expenses in the consolidated statements of income and comprehensive income. | ||||||||
(dollars in thousands) | Year Ended | |||||||
31-Dec-13 | ||||||||
Transaction costs | $ | 15,981 | ||||||
Acquisition-related costs: | ||||||||
Severance costs | 31,734 | |||||||
Stay bonuses | 14,804 | |||||||
Acceleration of Alterra long-term incentive compensation awards and restricted stock awards | 12,621 | |||||||
Total transaction and acquisition-related costs | $ | 75,140 | ||||||
Transaction costs primarily consist of due diligence, legal and investment banking costs. Per the terms of the Merger Agreement, transaction costs attributable to Alterra were recorded and paid by Alterra prior to the Acquisition Date ($23.0 million) and are not included within the Company's consolidated statements of income and comprehensive income. | ||||||||
In connection with the acquisition, Alterra instituted a retention plan for certain employees under which Alterra committed to the payment of stay bonuses to such employees one year from the Acquisition Date, provided they remain employed with the Company through that date. Payments may have been accelerated for certain qualifying employment terminations. | ||||||||
Prior to its acquisition by the Company, Alterra granted long term incentive awards to certain employees to be paid in the form of cash on March 1, 2016, provided they remain employed with the Company on that date. Payments may be accelerated prior to March 1, 2016 for certain qualifying employment terminations. Additionally, as part of the purchase consideration, the Company issued replacement restricted stock awards to holders of Alterra restricted stock awards. As a result of separations made in connection with the acquisition, the Company recognized expense totaling $12.6 million related to the acceleration of certain of these awards during the year ended December 31, 2013. | ||||||||
f)Financial Results. The following table summarizes the results of Alterra from the Acquisition Date through December 31, 2013 that have been included within the Company's consolidated statements of income and comprehensive income. | ||||||||
(dollars in thousands) | Year Ended | |||||||
December 31, 2013 | ||||||||
Operating revenues | $ | 912,387 | ||||||
Net loss to shareholders | $ | (93,074 | ) | |||||
g)Supplemental Pro Forma Information (unaudited). Alterra's results have been included in the Company's Consolidated Financial Statements from the Acquisition Date to December 31, 2014. The following table presents unaudited pro forma consolidated information for the years ended December 31, 2013 and 2012 and assumes the Company's acquisition of Alterra occurred on January 1, 2012. The pro forma financial information is presented for informational purposes only and does not necessarily reflect the results that would have occurred had the acquisition taken place on January 1, 2012, nor is it necessarily indicative of future results. Significant adjustments used to determine pro forma results include amortization of intangible assets and amortization of fair value adjustments discussed in c) above, and the corresponding income tax effects. The Company also excluded certain charges from the pro forma results, including transaction costs incurred by the Company ($16.0 million) and Alterra ($23.0 million) totaling $39.0 million for the year ended December 31, 2013, severance costs attributable to the acquisition totaling $31.7 million for the year ended December 31, 2013, and stay bonuses of $14.8 million for the year ended December 31, 2013. The acceleration of compensation expense during the year ended December 31, 2013 related to Alterra's long-term incentive compensation awards and restricted stock awards was attributable to the acquisition; however, the incremental expense recognized during the period only represents a timing difference in the recognition of expense. Therefore, it was not excluded from the pro forma underwriting results. | ||||||||
Unaudited | ||||||||
Consolidated Pro Forma | ||||||||
Years Ended December 31, | ||||||||
(in thousands, except per share amounts) | 2013 | 2012 | ||||||
Earned premiums | $ | 3,680,220 | $ | 3,509,834 | ||||
Operating revenues | 4,899,628 | 4,561,107 | ||||||
Net income to shareholders | 422,829 | 308,496 | ||||||
U.S. GAAP combined ratio (1) | 95 | % | 99 | % | ||||
Basic net income per share | $ | 30.33 | $ | 21.79 | ||||
Diluted net income per share | $ | 30.19 | $ | 21.71 | ||||
Weighted average common shares outstanding: | ||||||||
Basic | 14,007 | 14,014 | ||||||
Diluted | 14,069 | 14,065 | ||||||
(1) | The U.S. GAAP combined ratio is a measure of underwriting performance and represents the relationship of incurred losses, loss adjustment expenses and underwriting, acquisition and insurance expenses to earned premiums. | |||||||
Acquisition of Abbey Protection | ||||||||
On January 17, 2014, the Company completed its acquisition of 100% of the share capital of Abbey Protection plc (Abbey), an integrated specialty insurance and consultancy group headquartered in London. Abbey's business is focused on the underwriting and sale of insurance products to small and medium-sized enterprises and affinity groups in the United Kingdom providing protection against legal expenses and professional fees incurred as a result of legal actions or investigations by tax authorities, as well as providing a range of complementary legal and professional consulting services. Results attributable to Abbey's insurance operations are included in the International Insurance segment. Results attributable to Abbey's consultancy operations are reported with the Company's non-insurance operations, which are not included in a reportable segment. | ||||||||
Total consideration for this acquisition was $190.7 million, all of which was cash consideration. The purchase price was allocated to the acquired assets and liabilities based on estimated fair values on January 17, 2014. The Company recognized goodwill of $65.8 million, of which $43.0 million was allocated to the International Insurance segment and $22.8 million was allocated to the Company's non-insurance operations. None of the goodwill recognized is expected to be deductible for income tax purposes. The goodwill is primarily attributable to Abbey's assembled workforce and synergies that are expected to result upon integration of Abbey into the Company's insurance operations. The Company also recognized other intangible assets of $113.4 million, including $103.5 million of customer relationships and $9.9 million of trade names. These intangible assets are expected to be amortized over 20 years and 14 years, respectively. | ||||||||
Acquisition of Essentia | ||||||||
Effective January 1, 2013, the Company completed its acquisition of 100% of the outstanding shares of Essentia Insurance Company, a company that underwrites insurance exclusively for Hagerty Insurance Agency and Hagerty Classic Marine Insurance Agency (collectively, Hagerty) throughout the United States. Hagerty offers insurance for classic cars, vintage boats, motorcycles and related automotive collectibles. The Company recognized intangible assets of $35.4 million associated with this acquisition, which includes $25.0 million of customer relationships to be amortized over a weighted average period of six years. Results attributable to this acquisition are included in the U.S. Insurance segment. | ||||||||
Effective January 1, 2014, Hagerty exercised its option to purchase 9.9% of the outstanding shares of Essentia, which reduced the Company's ownership interest in Essentia to 90.1%. | ||||||||
Markel Ventures Acquisitions | ||||||||
In July 2014, the Company acquired 100% of the outstanding shares of Cottrell, Inc. (Cottrell), a privately held company headquartered in Gainesville, Georgia. Cottrell is a leading manufacturer of over-the-road car hauler equipment and related car hauler parts. In June and August 2014, ParkLand Ventures also completed the acquisition of several manufactured housing communities. Total consideration for these non-insurance acquisitions was $187.0 million, which primarily consisted of cash consideration. Total consideration includes the estimated fair value of contingent consideration we expect to pay based on Cottrell's earnings, as defined in the stock purchase agreement, in 2014 and 2015. The Company recognized goodwill of $38.7 million related to these acquisitions, the majority of which we expect to amortize for income tax purposes. The Company also recognized other intangible assets of $78.7 million, including $53.7 million of customer relationships and $13.0 million of trade names, which are expected to be amortized over a weighted average period of 17 years and 10 years, respectively. Results attributable to these acquisitions are included with the Company's non-insurance operations, which are not included in a reportable segment. |
Investments
Investments | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||
Investments | Investments | |||||||||||||||||||||||
a)The following tables summarize the Company's available-for-sale investments. | ||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||
(dollars in thousands) | Amortized | Gross | Gross | Unrealized Other- | Estimated | |||||||||||||||||||
Cost | Unrealized | Unrealized | Than-Temporary | Fair | ||||||||||||||||||||
Holding | Holding | Impairment Losses | Value | |||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government agencies | $ | 662,462 | $ | 12,963 | $ | (2,163 | ) | $ | — | $ | 673,262 | |||||||||||||
Obligations of states, municipalities and political subdivisions | 4,075,748 | 245,158 | (3,359 | ) | — | 4,317,547 | ||||||||||||||||||
Foreign governments | 1,458,255 | 154,707 | (1,041 | ) | — | 1,611,921 | ||||||||||||||||||
Commercial mortgage-backed securities | 427,904 | 5,325 | (2,602 | ) | — | 430,627 | ||||||||||||||||||
Residential mortgage-backed securities | 954,263 | 34,324 | (3,482 | ) | (2,258 | ) | 982,847 | |||||||||||||||||
Asset-backed securities | 100,073 | 99 | (682 | ) | — | 99,490 | ||||||||||||||||||
Corporate bonds | 2,250,432 | 69,016 | (10,441 | ) | (1,819 | ) | 2,307,188 | |||||||||||||||||
Total fixed maturities | 9,929,137 | 521,592 | (23,770 | ) | (4,077 | ) | 10,422,882 | |||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
Insurance, banks and other financial institutions | 523,739 | 789,717 | (1,531 | ) | — | 1,311,925 | ||||||||||||||||||
Industrial, consumer and all other | 1,427,919 | 1,403,566 | (5,834 | ) | — | 2,825,651 | ||||||||||||||||||
Total equity securities | 1,951,658 | 2,193,283 | (7,365 | ) | — | 4,137,576 | ||||||||||||||||||
Short-term investments | 1,594,819 | 36 | (6 | ) | — | 1,594,849 | ||||||||||||||||||
Investments, available-for-sale | $ | 13,475,614 | $ | 2,714,911 | $ | (31,141 | ) | $ | (4,077 | ) | $ | 16,155,307 | ||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
(dollars in thousands) | Amortized | Gross | Gross | Unrealized Other- | Estimated | |||||||||||||||||||
Cost | Unrealized | Unrealized | Than-Temporary | Fair | ||||||||||||||||||||
Holding | Holding | Impairment Losses | Value | |||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government agencies | $ | 1,215,522 | $ | 9,051 | $ | (30,342 | ) | $ | — | $ | 1,194,231 | |||||||||||||
Obligations of states, municipalities and political subdivisions | 2,986,758 | 116,341 | (27,384 | ) | — | 3,075,715 | ||||||||||||||||||
Foreign governments | 1,484,818 | 30,647 | (54,411 | ) | — | 1,461,054 | ||||||||||||||||||
Commercial mortgage-backed securities | 379,555 | 62 | (11,796 | ) | — | 367,821 | ||||||||||||||||||
Residential mortgage-backed securities | 875,902 | 13,046 | (16,442 | ) | (2,258 | ) | 870,248 | |||||||||||||||||
Asset-backed securities | 189,646 | 257 | (1,614 | ) | — | 188,289 | ||||||||||||||||||
Corporate bonds | 2,996,940 | 54,777 | (61,650 | ) | (4,889 | ) | 2,985,178 | |||||||||||||||||
Total fixed maturities | 10,129,141 | 224,181 | (203,639 | ) | (7,147 | ) | 10,142,536 | |||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
Insurance, banks and other financial institutions | 422,975 | 592,112 | (4 | ) | — | 1,015,083 | ||||||||||||||||||
Industrial, consumer and all other | 1,143,578 | 1,094,251 | (1,114 | ) | — | 2,236,715 | ||||||||||||||||||
Total equity securities | 1,566,553 | 1,686,363 | (1,118 | ) | — | 3,251,798 | ||||||||||||||||||
Short-term investments | 1,452,270 | 18 | — | — | 1,452,288 | |||||||||||||||||||
Investments, available-for-sale | $ | 13,147,964 | $ | 1,910,562 | $ | (204,757 | ) | $ | (7,147 | ) | $ | 14,846,622 | ||||||||||||
b)The following tables summarize gross unrealized investment losses by the length of time that securities have continuously been in an unrealized loss position. | ||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||
(dollars in thousands) | Estimated | Gross | Estimated | Gross | Estimated | Gross | ||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Holding and | Value | Holding and | Value | Holding and | |||||||||||||||||||
Other-Than- | Other-Than- | Other-Than- | ||||||||||||||||||||||
Temporary | Temporary | Temporary | ||||||||||||||||||||||
Impairment | Impairment | Impairment | ||||||||||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government agencies | $ | 108,250 | $ | (62 | ) | $ | 163,359 | $ | (2,101 | ) | $ | 271,609 | $ | (2,163 | ) | |||||||||
Obligations of states, municipalities and political subdivisions | 58,583 | (542 | ) | 92,441 | (2,817 | ) | 151,024 | (3,359 | ) | |||||||||||||||
Foreign governments | 18,856 | (386 | ) | 56,217 | (655 | ) | 75,073 | (1,041 | ) | |||||||||||||||
Commercial mortgage-backed securities | 45,931 | (210 | ) | 147,558 | (2,392 | ) | 193,489 | (2,602 | ) | |||||||||||||||
Residential mortgage-backed securities | 9,613 | (2,285 | ) | 207,374 | (3,455 | ) | 216,987 | (5,740 | ) | |||||||||||||||
Asset-backed securities | 30,448 | (20 | ) | 45,160 | (662 | ) | 75,608 | (682 | ) | |||||||||||||||
Corporate bonds | 141,176 | (2,263 | ) | 621,821 | (9,997 | ) | 762,997 | (12,260 | ) | |||||||||||||||
Total fixed maturities | 412,857 | (5,768 | ) | 1,333,930 | (22,079 | ) | 1,746,787 | (27,847 | ) | |||||||||||||||
Equity securities: | ||||||||||||||||||||||||
Insurance, banks and other financial institutions | 16,219 | (1,531 | ) | — | — | 16,219 | (1,531 | ) | ||||||||||||||||
Industrial, consumer and all other | 86,062 | (5,834 | ) | — | — | 86,062 | (5,834 | ) | ||||||||||||||||
Total equity securities | 102,281 | (7,365 | ) | — | — | 102,281 | (7,365 | ) | ||||||||||||||||
Short-term investments | 181,964 | (6 | ) | — | — | 181,964 | (6 | ) | ||||||||||||||||
Total | $ | 697,102 | $ | (13,139 | ) | $ | 1,333,930 | $ | (22,079 | ) | $ | 2,031,032 | $ | (35,218 | ) | |||||||||
At December 31, 2014, the Company held 552 securities with a total estimated fair value of $2.0 billion and gross unrealized losses of $35.2 million. Of these 552 securities, 396 securities had been in a continuous unrealized loss position for one year or longer and had a total estimated fair value of $1.3 billion and gross unrealized losses of $22.1 million. All 396 securities were fixed maturities, of which 391 represent securities acquired in the Alterra transaction, for which a new amortized cost was established at fair value as of the Acquisition Date. The Company does not intend to sell or believe it will be required to sell these fixed maturities before recovery of their amortized cost. | ||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||
(dollars in thousands) | Estimated | Gross | Estimated | Gross | Estimated | Gross | ||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Holding and | Value | Holding and | Value | Holding and | |||||||||||||||||||
Other-Than- | Other-Than- | Other-Than- | ||||||||||||||||||||||
Temporary | Temporary | Temporary | ||||||||||||||||||||||
Impairment | Impairment | Impairment | ||||||||||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government agencies | $ | 587,929 | $ | (30,342 | ) | $ | — | $ | — | $ | 587,929 | $ | (30,342 | ) | ||||||||||
Obligations of states, municipalities and political subdivisions | 513,608 | (27,238 | ) | 3,512 | (146 | ) | 517,120 | (27,384 | ) | |||||||||||||||
Foreign governments | 950,040 | (54,411 | ) | — | — | 950,040 | (54,411 | ) | ||||||||||||||||
Commercial mortgage-backed securities | 357,737 | (11,796 | ) | — | — | 357,737 | (11,796 | ) | ||||||||||||||||
Residential mortgage-backed securities | 437,675 | (18,700 | ) | — | — | 437,675 | (18,700 | ) | ||||||||||||||||
Asset-backed securities | 142,011 | (1,614 | ) | — | — | 142,011 | (1,614 | ) | ||||||||||||||||
Corporate bonds | 1,817,737 | (66,539 | ) | — | — | 1,817,737 | (66,539 | ) | ||||||||||||||||
Total fixed maturities | 4,806,737 | (210,640 | ) | 3,512 | (146 | ) | 4,810,249 | (210,786 | ) | |||||||||||||||
Equity securities: | ||||||||||||||||||||||||
Insurance, banks and other financial institutions | 144 | (4 | ) | — | — | 144 | (4 | ) | ||||||||||||||||
Industrial, consumer and all other | 20,943 | (714 | ) | 27,735 | (400 | ) | 48,678 | (1,114 | ) | |||||||||||||||
Total equity securities | 21,087 | (718 | ) | 27,735 | (400 | ) | 48,822 | (1,118 | ) | |||||||||||||||
Total | $ | 4,827,824 | $ | (211,358 | ) | $ | 31,247 | $ | (546 | ) | $ | 4,859,071 | $ | (211,904 | ) | |||||||||
At December 31, 2013, the Company held 1,364 securities with a total estimated fair value of $4.9 billion and gross unrealized losses of $211.9 million. Of these 1,364 securities, nine securities had been in a continuous unrealized loss position for one year or longer and had a total estimated fair value of $31.2 million and gross unrealized losses of $0.5 million. Of these securities, eight securities were fixed maturities and one was an equity security. | ||||||||||||||||||||||||
The Company completes a detailed analysis each quarter to assess whether the decline in the fair value of any investment below its cost basis is deemed other-than-temporary. All securities with unrealized losses are reviewed. The Company considers many factors in completing its quarterly review of securities with unrealized losses for other-than-temporary impairment, including the length of time and the extent to which fair value has been below cost and the financial condition and near-term prospects of the issuer. For equity securities, the ability and intent to hold the security for a period of time sufficient to allow for anticipated recovery is considered. For fixed maturities, the Company considers whether it intends to sell the security or if it is more likely than not that it will be required to sell the security before recovery, the implied yield-to-maturity, the credit quality of the issuer and the ability to recover all amounts outstanding when contractually due. | ||||||||||||||||||||||||
For equity securities, a decline in fair value that is considered to be other-than-temporary is recognized in net income based on the fair value of the security at the time of assessment, resulting in a new cost basis for the security. For fixed maturities where the Company intends to sell the security or it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost, a decline in fair value is considered to be other-than-temporary and is recognized in net income based on the fair value of the security at the time of assessment, resulting in a new cost basis for the security. If the decline in fair value of a fixed maturity below its amortized cost is considered to be other-than-temporary based upon other considerations, the Company compares the estimated present value of the cash flows expected to be collected to the amortized cost of the security. The extent to which the estimated present value of the cash flows expected to be collected is less than the amortized cost of the security represents the credit-related portion of the other-than-temporary impairment, which is recognized in net income, resulting in a new cost basis for the security. Any remaining decline in fair value represents the non-credit portion of the other-than-temporary impairment, which is recognized in other comprehensive income. The discount rate used to calculate the estimated present value of the cash flows expected to be collected is the effective interest rate implicit for the security at the date of purchase. | ||||||||||||||||||||||||
When assessing whether it intends to sell a fixed maturity or if it is likely to be required to sell a fixed maturity before recovery of its amortized cost, the Company evaluates facts and circumstances including decisions to reposition the investment portfolio, potential sales of investments to meet cash flow needs and, ultimately, current market prices. | ||||||||||||||||||||||||
c)The amortized cost and estimated fair value of fixed maturities at December 31, 2014 are shown below by contractual maturity. | ||||||||||||||||||||||||
(dollars in thousands) | Amortized | Estimated | ||||||||||||||||||||||
Cost | Fair Value | |||||||||||||||||||||||
Due in one year or less | $ | 747,997 | $ | 752,715 | ||||||||||||||||||||
Due after one year through five years | 2,007,798 | 2,059,192 | ||||||||||||||||||||||
Due after five years through ten years | 2,026,628 | 2,142,582 | ||||||||||||||||||||||
Due after ten years | 3,664,474 | 3,955,429 | ||||||||||||||||||||||
8,446,897 | 8,909,918 | |||||||||||||||||||||||
Commercial mortgage-backed securities | 427,904 | 430,627 | ||||||||||||||||||||||
Residential mortgage-backed securities | 954,263 | 982,847 | ||||||||||||||||||||||
Asset-backed securities | 100,073 | 99,490 | ||||||||||||||||||||||
Total fixed maturities | $ | 9,929,137 | $ | 10,422,882 | ||||||||||||||||||||
Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties, and the lenders may have the right to put the securities back to the borrower. Based on expected maturities, the estimated average duration of fixed maturities was 5.8 years. | ||||||||||||||||||||||||
d)The following table presents the components of net investment income. | ||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Interest: | ||||||||||||||||||||||||
Municipal bonds (tax-exempt) | $ | 98,262 | $ | 82,308 | $ | 90,316 | ||||||||||||||||||
Municipal bonds (taxable) | 49,345 | 28,041 | 22,663 | |||||||||||||||||||||
Other taxable bonds | 152,789 | 134,377 | 107,270 | |||||||||||||||||||||
Short-term investments, including overnight deposits | 5,959 | 3,573 | 2,755 | |||||||||||||||||||||
Dividends on equity securities | 65,031 | 48,641 | 50,416 | |||||||||||||||||||||
Change in fair value of credit default swap | 2,230 | 10,460 | 16,641 | |||||||||||||||||||||
Income from equity method investments | 4,766 | 21,898 | 1,961 | |||||||||||||||||||||
Other | 108 | 355 | (41 | ) | ||||||||||||||||||||
378,490 | 329,653 | 291,981 | ||||||||||||||||||||||
Investment expenses | (15,260 | ) | (12,280 | ) | (9,874 | ) | ||||||||||||||||||
Net investment income | $ | 363,230 | $ | 317,373 | $ | 282,107 | ||||||||||||||||||
e)Cumulative credit losses recognized in net income on fixed maturities where other-than-temporary impairment was identified and a portion of the other-than-temporary impairment was included in other comprehensive income were $12.7 million at December 31, 2014 and 2013 and $21.4 million at December 31, 2012. | ||||||||||||||||||||||||
f)The following table presents net realized investment gains and the change in net unrealized gains on investments. | ||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Realized gains: | ||||||||||||||||||||||||
Sales of fixed maturities | $ | 8,417 | $ | 13,772 | $ | 18,337 | ||||||||||||||||||
Sales of equity securities | 51,356 | 73,592 | 29,578 | |||||||||||||||||||||
Other | 15,205 | 5,940 | 749 | |||||||||||||||||||||
Total realized gains | 74,978 | 93,304 | 48,664 | |||||||||||||||||||||
Realized losses: | ||||||||||||||||||||||||
Sales of fixed maturities | (18,136 | ) | (25,168 | ) | (563 | ) | ||||||||||||||||||
Sales of equity securities | (802 | ) | (278 | ) | (342 | ) | ||||||||||||||||||
Other-than-temporary impairments | (4,784 | ) | (4,706 | ) | (12,078 | ) | ||||||||||||||||||
Other | (5,256 | ) | — | (4,088 | ) | |||||||||||||||||||
Total realized losses | (28,978 | ) | (30,152 | ) | (17,071 | ) | ||||||||||||||||||
Net realized investment gains | $ | 46,000 | $ | 63,152 | $ | 31,593 | ||||||||||||||||||
Change in net unrealized gains on investments: | ||||||||||||||||||||||||
Fixed maturities | $ | 480,350 | $ | (403,610 | ) | $ | 51,783 | |||||||||||||||||
Equity securities | 500,673 | 665,599 | 302,013 | |||||||||||||||||||||
Short-term investments | 12 | 6 | 12 | |||||||||||||||||||||
Net increase | $ | 981,035 | $ | 261,995 | $ | 353,808 | ||||||||||||||||||
Other-than-temporary impairment losses recognized in net income and included in net realized investment gains included losses attributable to equity securities totaling $4.5 million, $2.8 million and $12.1 million for the years ended December 31, 2014, 2013 and 2012, respectively. Other-than-temporary impairment losses recognized in net income and included in net realized investment gains included losses attributable to fixed maturities totaling $0.3 million and $1.9 million for the years ended December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||
g)The following table presents the components of restricted assets. | ||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
(dollars in thousands) | 2014 | 2013 | ||||||||||||||||||||||
Restricted assets held in trust or on deposit to support underwriting activities | $ | 4,961,061 | $ | 5,161,871 | ||||||||||||||||||||
Investments and cash and cash equivalents pledged as security for letters of credit | 635,340 | 695,072 | ||||||||||||||||||||||
Investments and cash pledged as collateral for credit default swap | — | 33,430 | ||||||||||||||||||||||
Cash held in escrow for Abbey acquisition | — | 199,006 | ||||||||||||||||||||||
Total | $ | 5,596,401 | $ | 6,089,379 | ||||||||||||||||||||
Total restricted assets are included on the Company's consolidated balance sheets as follows. | ||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
(dollars in thousands) | 2014 | 2013 | ||||||||||||||||||||||
Investments, available-for-sale | $ | 5,040,413 | $ | 5,225,701 | ||||||||||||||||||||
Restricted cash and cash equivalents | 522,225 | 786,926 | ||||||||||||||||||||||
Other assets | 33,763 | 76,752 | ||||||||||||||||||||||
Total | $ | 5,596,401 | $ | 6,089,379 | ||||||||||||||||||||
h)At December 31, 2014 and December 31, 2013, investments in U.S. Treasury securities and obligations of U.S. government agencies were the only investments in any one issuer that exceeded 10% of shareholders' equity. | ||||||||||||||||||||||||
At December 31, 2014, the Company's ten largest equity holdings represented $1.9 billion, or 45%, of the equity portfolio. Investments in the property and casualty insurance industry represented $756.3 million, or 18%, of the equity portfolio at December 31, 2014. Investments in the property and casualty insurance industry included a $470.7 million investment in the common stock of Berkshire Hathaway Inc. |
Receivables
Receivables | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Receivables [Abstract] | ||||||||
Receivables | Receivables | |||||||
The following table presents the components of receivables. | ||||||||
December 31, | ||||||||
(dollars in thousands) | 2014 | 2013 | ||||||
Amounts receivable from agents, brokers and insureds | $ | 1,031,519 | $ | 1,058,021 | ||||
Trade accounts receivable | 97,225 | 85,203 | ||||||
Employee stock loans receivable (see note 12(c)) | 15,044 | 12,822 | ||||||
Other | 8,601 | 5,420 | ||||||
1,152,389 | 1,161,466 | |||||||
Allowance for doubtful receivables | (17,172 | ) | (19,693 | ) | ||||
Receivables | $ | 1,135,217 | $ | 1,141,773 | ||||
Deferred_Policy_Acquisition_Co
Deferred Policy Acquisition Costs | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Deferred Policy Acquisition Costs Disclosures [Abstract] | ||||||||||||
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs | |||||||||||
The following table presents the amounts of policy acquisition costs deferred and amortized. | ||||||||||||
Years Ended December 31, | ||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||
Balance, beginning of year | $ | 260,967 | $ | 157,465 | $ | 194,674 | ||||||
Policy acquisition costs deferred | 754,303 | 577,620 | 390,360 | |||||||||
Amortization of policy acquisition costs | (654,916 | ) | (471,915 | ) | (428,109 | ) | ||||||
Foreign currency movements | (6,944 | ) | (2,203 | ) | 540 | |||||||
Deferred policy acquisition costs | $ | 353,410 | $ | 260,967 | $ | 157,465 | ||||||
The following table presents the components of underwriting, acquisition and insurance expenses. | ||||||||||||
Years Ended December 31, | ||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||
Transaction costs and other acquisition-related expenses (1) | $ | — | $ | 75,140 | $ | — | ||||||
Prospective adoption of FASB ASU No. 2010-26 (2) | — | — | 43,093 | |||||||||
Other amortization of policy acquisition costs | 654,916 | 471,915 | 385,016 | |||||||||
Other operating expenses | 805,966 | 765,257 | 501,363 | |||||||||
Underwriting, acquisition and insurance expenses | $ | 1,460,882 | $ | 1,312,312 | $ | 929,472 | ||||||
(1) | In connection with the acquisition of Alterra, the Company incurred transaction costs of $16.0 million for the year ended December 31, 2013, which primarily consist of due diligence, legal and investment banking costs. Additionally, the Company incurred severance costs of $31.7 million, stay bonuses of $14.8 million and other compensation costs totaling $12.6 million related to the acceleration of certain long-term incentive compensation awards and restricted stock awards that were granted by Alterra prior to the acquisition. | |||||||||||
(2) | Effective January 1, 2012, the Company prospectively adopted FASB ASU No. 2010-26, Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts. At December 31, 2011, deferred policy acquisition costs included $43.1 million of costs that no longer met the criteria for deferral as of January 1, 2012 and were recognized into income during 2012, consistent with policy terms. |
Property_And_Equipment
Property And Equipment | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property And Equipment | Property and Equipment | |||||||
The following table presents the components of property and equipment, which are included in other assets on the consolidated balance sheets. | ||||||||
December 31, | ||||||||
(dollars in thousands) | 2014 | 2013 | ||||||
Land | $ | 56,848 | $ | 48,036 | ||||
Buildings | 78,786 | 59,307 | ||||||
Leasehold improvements | 98,098 | 68,363 | ||||||
Land improvements | 70,596 | 57,673 | ||||||
Furniture and equipment | 255,566 | 217,528 | ||||||
Other | 116,884 | 104,690 | ||||||
676,778 | 555,597 | |||||||
Accumulated depreciation and amortization | (255,388 | ) | (207,688 | ) | ||||
Property and equipment | $ | 421,390 | $ | 347,909 | ||||
Depreciation and amortization expense of property and equipment was $51.2 million, $51.5 million and $36.0 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||
The Company does not own any material properties. The Company leases substantially all of the facilities used by its insurance operations and certain furniture and equipment under operating leases. The Company leases offices for the U.S. Insurance segment in Glen Allen, Virginia and in 25 other locations; the Company leases offices for the International Insurance segment in London, England, Hamilton, Bermuda and 35 other locations; and the Company leases offices for the Reinsurance segment primarily in Summit, New Jersey and Hamilton, Bermuda. The Company's Markel Ventures operations own certain of their office, clinic, manufacturing, warehouse and distribution facilities and lease others. The Company believes these facilities are suitable and adequate for the Company’s insurance and non-insurance operations. |
Goodwill_And_Intangible_Assets
Goodwill And Intangible Assets | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||
Goodwill And Intangible Assets | Goodwill and Intangible Assets | |||||||||||||||||||
The following table presents the components of goodwill. As described in note 19, effective January 1, 2014, the Company redefined its segments. As a result, goodwill was reallocated as of December 31, 2012 using a relative fair value allocation approach. The following table presents the components of goodwill by reportable segment. | ||||||||||||||||||||
(dollars in thousands) | U.S. Insurance | International Insurance | Reinsurance | Other(1) | Total | |||||||||||||||
January 1, 2013 | $ | 172,824 | $ | 309,662 | $ | — | $ | 192,444 | $ | 674,930 | ||||||||||
Acquisitions (see note 2) | 107,755 | 65,190 | 122,745 | 1,185 | 296,875 | |||||||||||||||
Foreign currency movements and other adjustments | — | (2,088 | ) | — | (2,000 | ) | (4,088 | ) | ||||||||||||
December 31, 2013 | $ | 280,579 | $ | 372,764 | $ | 122,745 | $ | 191,629 | $ | 967,717 | ||||||||||
Acquisitions (see note 2) | — | 42,989 | — | 61,539 | 104,528 | |||||||||||||||
Impairment loss | — | — | — | (13,737 | ) | (13,737 | ) | |||||||||||||
Foreign currency movements and other adjustments | — | (7,570 | ) | — | (1,823 | ) | (9,393 | ) | ||||||||||||
December 31, 2014 (2) | $ | 280,579 | $ | 408,183 | $ | 122,745 | $ | 237,608 | $ | 1,049,115 | ||||||||||
(1) | Amounts included in Other above are related to the Company's non-insurance operations, which are not included in a reportable segment. | |||||||||||||||||||
(2) | Goodwill is net of accumulated impairment losses of $13.7 million included in Other. | |||||||||||||||||||
Goodwill and indefinite-lived intangible assets are tested for impairment at least annually. The Company completes an annual test during the fourth quarter of each year based upon the results of operations through September 30. As part of our annual impairment test, during the fourth quarter of 2014, the Company recorded a non-cash goodwill impairment charge of $13.7 million to other expenses, to reduce the carrying value of the Diamond Healthcare reporting unit's goodwill to its implied fair value. Diamond Healthcare's operations consist of the planning, development and operation of behavioral health services in partnership with healthcare organizations, and are reported in our non-insurance operations. The Company determined the goodwill for the reporting unit was impaired as a result of lower than expected earnings and lower estimated future earnings. To determine the value of the impairment loss, the Company estimated the fair value of the reporting unit primarily using an income approach based on a discounted cash flow model. | ||||||||||||||||||||
There were no impairment losses recognized during 2013 or 2012. | ||||||||||||||||||||
The following table presents the components of intangible assets with a net carrying amount. | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
(dollars in thousands) | Gross | Accumulated | Gross | Accumulated | ||||||||||||||||
Carrying | Amortization | Carrying | Amortization | |||||||||||||||||
Amount | Amount | |||||||||||||||||||
Customer relationships | $ | 452,157 | $ | (69,483 | ) | $ | 298,886 | $ | (43,286 | ) | ||||||||||
Broker relationships | 175,681 | (34,827 | ) | 178,693 | (23,255 | ) | ||||||||||||||
Trade names | 94,795 | (17,673 | ) | 65,880 | (12,666 | ) | ||||||||||||||
Technology | 62,288 | (22,671 | ) | 56,429 | (16,222 | ) | ||||||||||||||
Insurance licenses | 39,985 | — | 40,185 | (133 | ) | |||||||||||||||
Lloyd's syndicate capacity | 12,000 | — | 12,000 | — | ||||||||||||||||
Other | 18,903 | (8,408 | ) | 14,197 | (5,625 | ) | ||||||||||||||
Total | $ | 855,809 | $ | (153,062 | ) | $ | 666,270 | $ | (101,187 | ) | ||||||||||
Amortization of intangible assets was $57.6 million, $55.2 million and $33.5 million for the years ended December 31, 2014, 2013 and 2012, respectively. Amortization of intangible assets is estimated to be $58.3 million for 2015, $55.2 million for 2016, $52.8 million for 2017, $52.5 million for 2018 and $46.7 million for 2019. Indefinite-lived intangible assets were $58.0 million at December 31, 2014 and December 31, 2013. | ||||||||||||||||||||
In 2014, the Company acquired $204.4 million of intangible assets. The definite-lived intangible assets acquired are expected to be amortized over a weighted average period of 16.8 years. The definite-lived intangible assets acquired during 2014 include customer relationships, trade names and technology, which are expected to be amortized over a weighted average period of 18.6, 12.5 and 7.0 years, respectively. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | Income Taxes | |||||||||||
Income before income taxes includes the following components. | ||||||||||||
Years Ended December 31, | ||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||
Domestic operations | $ | 240,279 | $ | 325,133 | $ | 126,466 | ||||||
Foreign operations | 200,099 | 36,610 | 185,584 | |||||||||
Income before income taxes | $ | 440,378 | $ | 361,743 | $ | 312,050 | ||||||
Income tax expense includes the following components. | ||||||||||||
Years Ended December 31, | ||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||
Current: | ||||||||||||
Domestic | $ | 7,573 | $ | 50,683 | $ | 14,340 | ||||||
Foreign | 24,574 | 23,165 | 1,814 | |||||||||
Total current tax expense | 32,147 | 73,848 | 16,154 | |||||||||
Deferred: | ||||||||||||
Domestic | 43,673 | 23,906 | (3,734 | ) | ||||||||
Foreign | 40,870 | (19,856 | ) | 41,382 | ||||||||
Total deferred tax expense | 84,543 | 4,050 | 37,648 | |||||||||
Income tax expense | $ | 116,690 | $ | 77,898 | $ | 53,802 | ||||||
Foreign income tax expense (benefit) includes United States tax expense (benefit) on foreign operations. | ||||||||||||
State income tax expense is not material to the consolidated financial statements. | ||||||||||||
The Company made income tax payments of $89.5 million, $35.7 million and $30.0 million in 2014, 2013 and 2012, respectively. Current income taxes payable were $37.6 million and $84.2 million at December 31, 2014 and 2013, respectively, and were included in other liabilities on the consolidated balance sheets. | ||||||||||||
Reconciliations of the United States corporate income tax rate to the effective tax rate on income before income taxes are presented in the following table. | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
United States corporate tax rate | 35 | % | 35 | % | 35 | % | ||||||
Tax-exempt investment income | (9 | ) | (9 | ) | (12 | ) | ||||||
Tax credits | (1 | ) | — | — | ||||||||
Foreign operations | — | (4 | ) | (5 | ) | |||||||
Other | 1 | — | (1 | ) | ||||||||
Effective tax rate | 26 | % | 22 | % | 17 | % | ||||||
The following table presents the components of domestic and foreign deferred tax assets and liabilities. | ||||||||||||
December 31, | ||||||||||||
(dollars in thousands) | 2014 | 2013 | ||||||||||
Assets: | ||||||||||||
Unpaid losses and loss adjustment expenses | $ | 239,588 | $ | 283,365 | ||||||||
Life and annuity benefits | 143,102 | 161,209 | ||||||||||
Unearned premiums recognized for income tax purposes | 108,960 | 76,862 | ||||||||||
Net operating loss carryforwards | 36,359 | 43,010 | ||||||||||
Tax credit carryforwards | 32,525 | 33,773 | ||||||||||
Other-than-temporary impairments not yet deductible for income tax purposes | 28,106 | 34,978 | ||||||||||
Differences between financial reporting and tax bases | 132,878 | 139,357 | ||||||||||
Total gross deferred tax assets | 721,518 | 772,554 | ||||||||||
Less valuation allowance | (4,801 | ) | — | |||||||||
Total gross deferred tax assets, net of allowance | 716,717 | 772,554 | ||||||||||
Liabilities: | ||||||||||||
Net unrealized gains on investments | 759,212 | 459,015 | ||||||||||
Amortization of goodwill and other intangible assets | 106,927 | 97,580 | ||||||||||
Deferred policy acquisition costs | 101,766 | 65,543 | ||||||||||
Differences between financial reporting and tax bases | 59,359 | 46,699 | ||||||||||
Total gross deferred tax liabilities | 1,027,264 | 668,837 | ||||||||||
Net deferred tax asset (liability) | $ | (310,547 | ) | $ | 103,717 | |||||||
The net deferred tax liability at December 31, 2014 was included in other liabilities on the consolidated balance sheet. The net deferred tax asset at December 31, 2013 was included in other assets on the consolidated balance sheet. | ||||||||||||
At December 31, 2014, the Company had tax credit carryforwards of $32.5 million. The earliest any of these credits will expire is 2019. | ||||||||||||
At December 31, 2014, the Company had net operating losses of $61.9 million that can be used to offset future income that is taxable in the United States from Markel Capital Limited, a wholly owned United Kingdom subsidiary. The Company's ability to use these losses in the United States expires between the years 2021 and 2032. At December 31, 2014, the Company had net operating losses of $61.2 million that can be used to offset future income that is taxable in the United States. The Company's ability to use these losses in the United States expires between the years 2027 and 2033. | ||||||||||||
The Company believes that it is more likely than not that it will realize $716.7 million of gross deferred tax assets, including net operating losses, recorded at December 31, 2014, through generating taxable income or the reversal of existing temporary differences attributable to the gross deferred tax liabilities. The Company recorded a valuation allowance to offset the deferred tax asset on losses incurred in our Brazilian subsidiary. | ||||||||||||
At December 31, 2014, the Company had unrecognized tax benefits of $17.7 million. If recognized, $15.6 million of these tax benefits would decrease the annual effective tax rate. The Company does not currently anticipate any significant changes in unrecognized tax benefits during 2015. | ||||||||||||
The following table presents a reconciliation of unrecognized tax benefits. | ||||||||||||
Years Ended December 31, | ||||||||||||
(dollars in thousands) | 2014 | 2013 | ||||||||||
Unrecognized tax benefits, beginning of year | $ | 18,219 | $ | 18,870 | ||||||||
Increases for tax positions taken in prior years | 3 | — | ||||||||||
Lapse of statute of limitations | (522 | ) | (651 | ) | ||||||||
Unrecognized tax benefits, end of year | $ | 17,700 | $ | 18,219 | ||||||||
At December 31, 2014, earnings of the Company's foreign subsidiaries, with the exception of certain of our Bermuda subsidiaries, are considered reinvested indefinitely and no provision for deferred United States income taxes has been recorded. It is not practicable to determine the amount of unrecorded deferred tax liabilities associated with such earnings due to the complexity of this calculation. | ||||||||||||
The Company is subject to income tax in the United States and in foreign jurisdictions. With few exceptions, the Company is no longer subject to income tax examination by tax authorities for years ended before January 1, 2011. |
Unpaid_Losses_And_Loss_Adjustm
Unpaid Losses And Loss Adjustment Expenses | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred Claims [Abstract] | ||||||||||||
Unpaid Losses And Loss Adjustment Expenses | Unpaid Losses and Loss Adjustment Expenses | |||||||||||
a)The following table presents a reconciliation of consolidated beginning and ending reserves for losses and loss adjustment expenses. | ||||||||||||
Years Ended December 31, | ||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||
Net reserves for losses and loss adjustment expenses, beginning of year | $ | 8,407,642 | $ | 4,592,652 | $ | 4,607,767 | ||||||
Foreign currency movements, commutations and other | (137,385 | ) | (780 | ) | 30,359 | |||||||
Adjusted net reserves for losses and loss adjustment expenses, beginning of year | 8,270,257 | 4,591,872 | 4,638,126 | |||||||||
Incurred losses and loss adjustment expenses: | ||||||||||||
Current year | 2,638,012 | 2,227,402 | 1,553,070 | |||||||||
Prior years | (435,545 | ) | (411,129 | ) | (399,002 | ) | ||||||
Total incurred losses and loss adjustment expenses | 2,202,467 | 1,816,273 | 1,154,068 | |||||||||
Payments: | ||||||||||||
Current year | 502,107 | 670,928 | 268,745 | |||||||||
Prior years | 1,436,851 | 906,302 | 931,955 | |||||||||
Total payments | 1,938,958 | 1,577,230 | 1,200,700 | |||||||||
Effect of foreign currency rate changes | (19,476 | ) | (7,915 | ) | 1,158 | |||||||
Net reserves for losses and loss adjustment expenses of acquired insurance companies | 21,193 | 3,584,642 | — | |||||||||
Net reserves for losses and loss adjustment expenses, end of year | 8,535,483 | 8,407,642 | 4,592,652 | |||||||||
Reinsurance recoverable on unpaid losses | 1,868,669 | 1,854,414 | 778,774 | |||||||||
Gross reserves for losses and loss adjustment expenses, end of year | $ | 10,404,152 | $ | 10,262,056 | $ | 5,371,426 | ||||||
Beginning of year net reserves for losses and loss adjustment expenses are adjusted, when applicable, for the impact of changes in foreign currency rates, commutations and other items. In 2014, beginning of year net reserves for losses and loss adjustment expenses were decreased by a movement of $127.7 million in foreign currency rates of exchange. In 2013, beginning of year net reserves for losses and loss adjustment expenses were increased by a movement of $0.7 million in foreign currency rates of exchange, which was more than offset by commutations. In 2012, beginning of year net reserves for losses and loss adjustment expenses were increased by a movement of $23.4 million in foreign currency rates of exchange. | ||||||||||||
In 2014, the Company recorded net reserves for losses and loss adjustment expenses of $21.2 million as a result of the acquisition of Abbey. These reserves were recorded at fair value as part of the Company's purchase accounting. | ||||||||||||
In 2014, incurred losses and loss adjustment expenses included $435.5 million of favorable development on prior years' loss reserves, which was due in part to $250.4 million of loss reserve redundancies on our long-tail casualty and professional liability lines within the U.S. Insurance segment and on our professional liability and marine and energy product lines within the International Insurance segment, as actual claims reporting patterns on prior accident years have been more favorable than the Company's actuarial analyses initially anticipated. The favorable development on prior years' loss reserves in 2014 was partially offset by $32.8 million of adverse development in prior years' loss reserves on asbestos and environmental (A&E) exposures. | ||||||||||||
Once a year, generally during the third quarter, the Company completes an in-depth, actuarial review of its A&E exposures. Over the past few years, the number of A&E claims reported each year across the property and casualty industry has been on the decline. However, at the same time, the likelihood of making an indemnity payment has risen, thus increasing the average cost per reported claim. During the 2012 annual review, the Company reduced its estimate of the ultimate claims count, while increasing its estimate of the number of claims that would ultimately be closed with an indemnity payment. During the annual review for both 2014 and 2013, the Company increased its expectation of the severity of the outcome of certain claims subject to litigation. As the ultimate outcome of known claims increases, the Company's expected ultimate closure value on unreported claims also increases. As a result, prior years' loss reserves for A&E exposures were increased by $27.2 million in 2014, $28.4 million in 2013 and $31.1 million in 2012. | ||||||||||||
In 2013, the Company recorded net reserves for losses and loss adjustment expenses of $3.6 billion as a result of the acquisition of Alterra. These reserves were recorded at fair value as part of the Company's purchase accounting. See note 2 for a discussion of the Company's acquisition of Alterra. | ||||||||||||
In 2013, incurred losses and loss adjustment expenses included $411.1 million of favorable development on prior years' loss reserves, which was due in part to $255.2 million of loss reserve redundancies on our long-tail casualty and professional liability product lines within the U.S. Insurance segment and on our professional liability and marine and energy product lines within the International Insurance segment, as actual claims reporting patterns on prior accident years have been more favorable than the Company's actuarial analyses initially anticipated. The favorable development on prior years' loss reserves in 2013 was partially offset by $30.1 million of adverse development in prior years' loss reserves on A&E exposures. | ||||||||||||
Current year incurred losses and loss adjustment expenses for 2012 included $99.6 million of estimated net losses related to Hurricane Sandy. The estimated net losses on Hurricane Sandy were net of estimated reinsurance recoverables of $77.6 million. | ||||||||||||
In 2012, incurred losses and loss adjustment expenses included $399.0 million of favorable development on prior years' loss reserves, which was due in part to $292.3 million of loss reserve redundancies on our long-tail casualty and professional liability lines within our U.S. Insurance segment and on our professional liability and marine and energy product lines within the International Insurance segment, as actual claims reporting patterns on prior accident years have been more favorable than the Company's actuarial analyses initially anticipated. The favorable development on prior years' loss reserves in 2012 was partially offset by $38.2 million of adverse development in prior years' loss reserves on A&E exposures. | ||||||||||||
Inherent in the Company's reserving practices is the desire to establish loss reserves that are more likely redundant than deficient. As such, the Company seeks to establish loss reserves that will ultimately prove to be adequate. As part of the Company's acquisition of insurance operations, to the extent the reserving philosophy of the acquired business differs from the Company's reserving philosophy, the post-acquisition loss reserves will be built until total loss reserves are consistent with the Company's target level of confidence. Furthermore, the Company's philosophy is to price its insurance products to make an underwriting profit. Management continually attempts to improve its loss estimation process by refining its ability to analyze loss development patterns, claim payments and other information, but uncertainty remains regarding the potential for adverse development of estimated ultimate liabilities. | ||||||||||||
The Company uses a variety of techniques to establish the liabilities for unpaid losses and loss adjustment expenses, all of which involve significant judgments and assumptions. These techniques include detailed statistical analysis of past claim reporting, settlement activity, claim frequency and severity, policyholder loss experience, industry loss experience and changes in market conditions, policy forms and exposures. Greater judgment may be required when new product lines are introduced or when there have been changes in claims handling practices, as the statistical data available may be insufficient. The Company's estimates reflect implicit and explicit assumptions regarding the potential effects of external factors, including economic and social inflation, judicial decisions, changes in law, general economic conditions and recent trends in these factors. In some of the Company's markets, and where the Company acts as a reinsurer, the timing and amount of information reported about underlying claims are in the control of third parties. There is often a time lag between cedents establishing case reserves and re-estimating their reserves, and notifying the Company of the new or revised case reserves. This can also affect estimates and require re-estimation as new information becomes available. | ||||||||||||
The Company believes the process of evaluating past experience, adjusted for the effects of current developments and anticipated trends, is an appropriate basis for predicting future events. Management currently believes the Company's gross and net reserves, including the reserves for A&E exposures, are adequate. However, there is no precise method for evaluating the impact of any significant factor on the adequacy of reserves, and actual results will differ from original estimates. | ||||||||||||
b)The Company's exposure to A&E claims results from policies written by acquired insurance operations before their acquisitions by the Company. The Company's exposure to A&E claims originated from umbrella, excess and commercial general liability (CGL) insurance policies and assumed reinsurance contracts that were written on an occurrence basis from the 1970s to mid-1980s. Exposure also originated from claims-made policies that were designed to cover environmental risks provided that all other terms and conditions of the policy were met. | ||||||||||||
A&E claims include property damage and clean-up costs related to pollution, as well as personal injury allegedly arising from exposure to hazardous materials. After 1986, the Company began underwriting CGL coverage with pollution exclusions, and in some lines of business the Company began using a claims-made form. These changes significantly reduced the Company's exposure to future A&E claims on post-1986 business. | ||||||||||||
The following table provides a reconciliation of beginning and ending A&E reserves for losses and loss adjustment expenses, which are a component of consolidated unpaid losses and loss adjustment expenses. Amounts included in the following table are presented before consideration of reinsurance allowances. | ||||||||||||
Years Ended December 31, | ||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||
Net reserves for A&E losses and loss adjustment expenses, beginning of year | $ | 272,194 | $ | 260,791 | $ | 244,772 | ||||||
Commutations and other | 115 | (5,067 | ) | (897 | ) | |||||||
Adjusted net reserves for A&E losses and loss adjustment expenses, beginning of year | 272,309 | 255,724 | 243,875 | |||||||||
Incurred losses and loss adjustment expenses | 32,840 | 30,128 | 38,179 | |||||||||
Payments | (17,426 | ) | (13,658 | ) | (21,263 | ) | ||||||
Net reserves for A&E losses and loss adjustment expenses, end of year | 287,723 | 272,194 | 260,791 | |||||||||
Reinsurance recoverable on unpaid losses | 102,719 | 100,784 | 100,063 | |||||||||
Gross reserves for A&E losses and loss adjustment expenses, end of year | $ | 390,442 | $ | 372,978 | $ | 360,854 | ||||||
At December 31, 2014, asbestos-related reserves were $290.1 million and $218.9 million on a gross and net basis, respectively. Net reserves for reported claims and net incurred but not reported reserves for A&E exposures were $173.8 million and $113.9 million, respectively, at December 31, 2014. Inception-to-date net paid losses and loss adjustment expenses for A&E related exposures totaled $415.7 million at December 31, 2014, which includes $85.7 million of litigation-related expense. | ||||||||||||
The Company's reserves for losses and loss adjustment expenses related to A&E exposures represent management's best estimate of ultimate settlement values. A&E reserves are monitored by management, and the Company's statistical analysis of these reserves is reviewed by the Company's independent actuaries. A&E exposures are subject to significant uncertainty due to potential loss severity and frequency resulting from the uncertain and unfavorable legal climate. A&E reserves could be subject to increases in the future; however, management believes the Company's gross and net A&E reserves at December 31, 2014 are adequate. |
Life_And_Annuity_Benefits
Life And Annuity Benefits | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Liability for Future Policy Benefits [Abstract] | ||||||||
Life And Annuity Benefits | Life and Annuity Benefits | |||||||
The following table presents life and annuity benefits. | ||||||||
December 31, | ||||||||
(dollars in thousands) | 2014 | 2013 | ||||||
Life | $ | 182,604 | $ | 190,765 | ||||
Annuities | 1,031,946 | 1,194,558 | ||||||
Accident and health | 91,268 | 101,251 | ||||||
Total | $ | 1,305,818 | $ | 1,486,574 | ||||
Life and annuity benefits are compiled on a reinsurance contract-by-contract basis and are discounted using standard actuarial techniques and cash flow models. Since the development of the life and annuity reinsurance reserves is based upon cash flow projection models, the Company must make estimates and assumptions based on cedent experience, industry mortality tables, and expense and investment experience, including a provision for adverse deviation. The assumptions used to determine policy benefit reserves were determined at the Acquisition Date and are generally locked-in for the life of the contract unless an unlocking event occurs. To the extent existing policy reserves, together with the present value of future gross premiums and expected investment income earned thereon, are not adequate to cover the present value of future benefits, settlement and maintenance costs, the locked-in assumptions are revised to current best estimate assumptions and a charge to earnings for life and annuity benefits is recognized at that time. | ||||||||
Because of the assumptions and estimates used in establishing the Company's reserves for life and annuity benefit obligations and the long-term nature of these reinsurance contracts, the ultimate liability may be greater or less than the estimates. The average discount rate for the life and annuity benefit reserves was 2.3% as of December 31, 2014. | ||||||||
As of December 31, 2014, the largest life and annuity benefits reserve for a single contract was 33.5% of the total. | ||||||||
No annuities included in life and annuity benefits in the consolidated balance sheet are subject to discretionary withdrawal. |
Senior_LongTerm_Debt_And_Other
Senior Long-Term Debt And Other Debt | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Senior Long-Term Debt And Other Debt | Senior Long-Term Debt and Other Debt | |||||||
The following table summarizes the Company's senior long-term debt and other debt. | ||||||||
December 31, | ||||||||
(dollars in thousands) | 2014 | 2013 | ||||||
7.20% unsecured senior notes, due April 14, 2017, interest payable semi-annually, net of unamortized premium of $3,526 in 2014 and $4,822 in 2013 | $ | 94,155 | $ | 95,451 | ||||
7.125% unsecured senior notes, due September 30, 2019, interest payable semi-annually, net of unamortized discount of $1,343 in 2014 and $1,626 in 2013 | 348,657 | 348,374 | ||||||
6.25% unsecured senior notes, due September 30, 2020, interest payable semi-annually, net of unamortized premium of $53,172 in 2014 and $61,273 in 2013 | 403,172 | 411,273 | ||||||
5.35% unsecured senior notes, due June 1, 2021, interest payable semi-annually, net of unamortized discount of $1,325 in 2014 and $1,531 in 2013 | 248,675 | 248,469 | ||||||
4.90% unsecured senior notes, due July 1, 2022, interest payable semi-annually, net of unamortized discount of $2,095 in 2014 and $2,374 in 2013 | 347,905 | 347,626 | ||||||
3.625% unsecured senior notes, due March 30, 2023, interest payable semi-annually, net of unamortized discount of $1,659 in 2014 and $1,860 in 2013 | 248,341 | 248,140 | ||||||
7.35% unsecured senior notes, due August 15, 2034, interest payable semi-annually, net of unamortized discount of $2,078 in 2014 and $2,185 in 2013 | 197,922 | 197,815 | ||||||
5.0% unsecured senior notes, due March 30, 2043, interest payable semi-annually, net of unamortized discount of $6,327 in 2014 and $6,551 in 2013 | 243,673 | 243,449 | ||||||
Other debt, at various interest rates ranging from 1.6% to 6.5% | 121,094 | 115,630 | ||||||
Senior long-term debt and other debt | $ | 2,253,594 | $ | 2,256,227 | ||||
On February 15, 2013, the Company repaid its 6.80% unsecured senior notes ($246.7 million principal amount outstanding at December 31, 2012). | ||||||||
On March 8, 2013, the Company issued $250 million of 3.625% unsecured senior notes due March 30, 2023 and $250 million of 5.0% unsecured senior notes due March 30, 2043. Net proceeds to the Company were approximately $491.2 million, to be used for general corporate purposes. | ||||||||
On April 16, 2007, Alterra USA Holdings Limited (Alterra USA), a wholly-owned indirect subsidiary of Alterra, privately issued $100 million of 7.20% unsecured senior notes due April 14, 2017 (the 7.20% unsecured senior notes). The 7.20% unsecured senior notes are Alterra USA's senior unsecured obligations and rank equally in right of payment with all existing and future senior unsecured indebtedness of Alterra USA. The 7.20% unsecured senior notes are fully and unconditionally guaranteed by Alterra. The principal amount of the 7.20% unsecured senior notes outstanding as of the Acquisition Date was $90.6 million. As of the Acquisition Date, the 7.20% unsecured senior notes were recorded at their estimated fair value of $95.8 million. | ||||||||
On September 27, 2010, Alterra Finance LLC, a wholly-owned indirect subsidiary of Alterra, issued $350 million of 6.25% unsecured senior notes due September 30, 2020 (the 6.25% unsecured senior notes). The 6.25% unsecured senior notes are Alterra Finance LLC's senior unsecured obligations and rank equally in right of payment with all of Alterra Finance LLC's future unsecured and unsubordinated indebtedness and rank senior to all of Alterra Finance LLC's future subordinated indebtedness. The 6.25% unsecured senior notes are fully and unconditionally guaranteed by Alterra on a senior unsecured basis. The guarantee ranks equally with all of Alterra's existing and future unsecured and unsubordinated indebtedness and ranks senior to all of Alterra's future subordinated indebtedness. As of the Acquisition Date, the 6.25% unsecured senior notes were recorded at their estimated fair value of $416.6 million. Alterra Finance LLC is a finance subsidiary and has no independent activities, assets or operations other than in connection with the 6.25% unsecured senior notes. | ||||||||
On June 30, 2014, Markel Corporation entered into agreements guaranteeing the 7.20% unsecured senior notes and 6.25% unsecured senior notes. These guarantee agreements were issued pursuant to supplemental indentures entered into by the Company on June 30, 2014 and are in addition to the existing guarantees provided by Alterra. | ||||||||
Effective August 1, 2014, both Alterra Finance and Alterra USA provided guarantees for the Company's revolving credit facility. As a result, the Company's revolving credit facility ranks equally with the 6.25% unsecured senior notes and the 7.20% unsecured senior notes. | ||||||||
The Company's 7.35% unsecured senior notes due August 15, 2034 are not redeemable. The Company's other unsecured senior notes are redeemable by the Company at any time, subject to payment of a make-whole premium to the noteholders. None of the Company's senior long-term debt is subject to any sinking fund requirements. | ||||||||
The Company's other debt is primarily associated with its Markel Ventures operations and is non-recourse to the holding company. The debt of the Company's Markel Ventures subsidiaries generally is secured by the assets of those subsidiaries. ParkLand Ventures, Inc. (ParkLand), a subsidiary of the Company, has formed subsidiaries for the purpose of acquiring and financing real estate (the real estate subsidiaries). The assets of the real estate subsidiaries, which are not material to the Company, are consolidated in accordance with U.S. GAAP but are not available to satisfy the debt and other obligations of the Company or any affiliates other than the real estate subsidiaries. | ||||||||
The estimated fair value based on quoted market prices of the Company's senior long-term debt and other debt was $2.5 billion and $2.4 billion at December 31, 2014 and 2013, respectively. | ||||||||
The following table summarizes the future principal payments due at maturity on senior long-term debt and other debt as of December 31, 2014. | ||||||||
Years Ending December 31, | (dollars in | |||||||
thousands) | ||||||||
2015 | $ | 23,340 | ||||||
2016 | 21,850 | |||||||
2017 | 112,942 | |||||||
2018 | 2,348 | |||||||
2019 | 352,199 | |||||||
2020 and thereafter | 1,699,044 | |||||||
Total principal payments | $ | 2,211,723 | ||||||
Net unamortized premium | 41,871 | |||||||
Senior long-term debt and other debt | $ | 2,253,594 | ||||||
On August 1, 2014, the Company entered into a credit agreement for a revolving credit facility, which provides $300 million of capacity for future acquisitions, investments, repurchases of capital stock of the Company and for general corporate purposes. At the Company's discretion, $200 million of the total capacity may be used for secured letters of credit. The Company may increase the capacity of the facility to $500 million subject to certain terms and conditions. The Company pays interest on balances outstanding under the facility and a utilization fee for letters of credit issued under the facility. The Company also pays a commitment fee (0.225% at December 31, 2014) on the unused portion of the facility based on the Company's debt to equity leverage ratio as calculated under the credit agreement. Markel Corporation, along with Alterra Finance and Alterra USA, guaranteed the Company's obligations under the facility. At December 31, 2014, the Company had no borrowings outstanding under this revolving credit facility. This facility replaced the Company's previous $300 million revolving credit facility and expires in August 2019. | ||||||||
Alterra and Markel Bermuda are party to a secured credit facility (the senior credit facility), which expires on December 15, 2015. On August 1, 2014, the Company reduced the capacity of the senior credit facility from $900 million to $650 million. The senior credit facility provides for secured letters of credit to be issued for the account of Alterra, Markel Bermuda and certain other subsidiaries of Alterra and for loans to Alterra and Markel Bermuda. Loans under the senior credit facility are subject to a sublimit of $250 million. Subject to certain conditions and at the request of Alterra, the aggregate commitments of the lenders under the senior credit facility may be increased up to a total of $1.4 billion. The Company pays a fee of 0.40% for outstanding letters of credit under the senior credit facility and a commitment fee of 0.125% on the total unused portion of the senior credit facility. At December 31, 2014 and 2013, the Company had no borrowings outstanding under the senior credit facility. At December 31, 2014, $374.5 million of letters of credit were issued and outstanding under the senior credit facility. | ||||||||
At December 31, 2014, the Company was in compliance with all covenants contained in its revolving credit facility and senior credit facility. To the extent that the Company is not in compliance with its covenants, the Company's access to these credit facilities could be restricted. | ||||||||
The Company paid $125.8 million, $114.5 million and $92.9 million in interest on its senior long-term debt and other debt during the years ended December 31, 2014, 2013 and 2012, respectively. |
Shareholders_Equity
Shareholders' Equity | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||
Shareholders' Equity | Shareholders' Equity | ||||||||||||
a)The Company had 50,000,000 shares of no par value common stock authorized of which 13,961,675 shares and 13,985,620 shares were issued and outstanding at December 31, 2014 and 2013, respectively. The Company also has 10,000,000 shares of no par value preferred stock authorized, none of which was issued or outstanding at December 31, 2014 or 2013. | |||||||||||||
The Company's Board of Directors has approved the repurchase of up to $300 million of common stock under a share repurchase program (the Program). Under the Program, the Company may repurchase outstanding shares of common stock from time to time, primarily through open-market transactions. The Program has no expiration date but may be terminated by the Board of Directors at any time. As of December 31, 2014, the Company had repurchased 34,385 shares of common stock at a cost of $20.5 million under the Program. | |||||||||||||
b)Net income per share was determined by dividing adjusted net income to shareholders by the applicable weighted average shares outstanding. Diluted net income per share is computed by dividing adjusted net income to shareholders by the weighted average number of common shares and dilutive potential common shares outstanding during the year. Average closing common stock market prices are used to calculate the dilutive effect attributable to restricted stock. | |||||||||||||
Years Ended December 31, | |||||||||||||
(in thousands, except per share amounts) | 2014 | 2013 | 2012 | ||||||||||
Net income to shareholders | $ | 321,182 | $ | 281,021 | $ | 253,385 | |||||||
Adjustment of redeemable noncontrolling interests | (8,186 | ) | 1,963 | (3,101 | ) | ||||||||
Adjusted net income to shareholders | $ | 312,996 | $ | 282,984 | $ | 250,284 | |||||||
Basic common shares outstanding | 13,984 | 12,538 | 9,640 | ||||||||||
Dilutive potential common shares from conversion of options | 11 | 12 | 6 | ||||||||||
Dilutive potential common shares from conversion of restricted stock | 62 | 36 | 20 | ||||||||||
Diluted shares outstanding | 14,057 | 12,586 | 9,666 | ||||||||||
Basic net income per share | $ | 22.38 | $ | 22.57 | $ | 25.96 | |||||||
Diluted net income per share | $ | 22.27 | $ | 22.48 | $ | 25.89 | |||||||
c)The Company's Employee Stock Purchase and Bonus Plan provides a method for employees and directors to purchase shares of the Company's common stock on the open market. The plan encourages share ownership by providing for the award of bonus shares to participants equal to 10% of the net increase in the number of shares owned under the plan in a given year, excluding shares acquired through the plan's loan program component. Under the loan program, the Company offers subsidized unsecured loans so participants may purchase shares and awards bonus shares equal to 5% of the shares purchased with a loan. The Company has authorized 100,000 shares for purchase under this plan, of which 20,740 and 33,454 shares were available for purchase at December 31, 2014 and 2013, respectively. At December 31, 2014 and 2013, loans outstanding under the plan, which are included in receivables on the consolidated balance sheets, totaled $15.0 million and $12.8 million, respectively. | |||||||||||||
d)In April 2012, the Company adopted the 2012 Equity Incentive Compensation Plan (2012 Compensation Plan), which replaced the Markel Corporation Omnibus Incentive Plan (Omnibus Incentive Plan). The 2012 Compensation Plan provides for grants and awards of restricted stock, restricted stock units, performance grants, and other stock based awards to employees and directors and is administered by the Compensation Committee of the Company's Board of Directors (Compensation Committee). At December 31, 2014, there were 145,253 shares reserved for issuance under the 2012 Compensation Plan. | |||||||||||||
Restricted stock units are awarded to certain associates and executive officers based upon meeting performance conditions determined by the Compensation Committee. These awards generally vest at the end of the third year following the year for which the Compensation Committee determines performance conditions have been met. At the end of the vesting period, recipients are entitled to receive one share of the Company's common stock for each vested restricted stock unit. During 2014, the Company awarded 17,917 restricted stock units to associates and executive officers based on performance conditions being met. | |||||||||||||
Restricted stock units also are awarded to associates and executive officers to assist the Company in securing or retaining the services of key employees. During 2014, the Company awarded 8,950 restricted stock units to associates and executive officers as a hiring or retention incentive. The restricted stock units had a grant-date fair value of $5.4 million. These awards generally vest over a three-year period and entitle the recipient to receive one share of the Company's common stock for each vested restricted stock unit. | |||||||||||||
During 2014, the Company awarded 1,413 shares of restricted stock to its non-employee directors. The shares awarded to non-employee directors will vest in 2015. | |||||||||||||
The following table summarizes nonvested share-based awards. | |||||||||||||
Number | Weighted Average | ||||||||||||
of Awards | Grant-Date | ||||||||||||
Fair Value | |||||||||||||
Nonvested awards at January 1, 2014 | 98,711 | $ | 449.93 | ||||||||||
Granted | 28,280 | 583.74 | |||||||||||
Vested | (8,479 | ) | 491.51 | ||||||||||
Forfeited | (380 | ) | 411 | ||||||||||
Nonvested awards at December 31, 2014 | 118,132 | $ | 479.11 | ||||||||||
The fair value of the Company's share-based awards issued under the Omnibus Incentive Plan was determined based on the average price of the Company's common shares on the grant date. The fair value of the Company's share-based awards granted under the 2012 Compensation Plan is determined based on the closing price of the Company's common shares on the grant date. The weighted average grant-date fair value of the Company's share-based awards granted in 2014, 2013 and 2012 was $583.74, $517.24 and $412.04, respectively. As of December 31, 2014, unrecognized compensation cost related to nonvested share-based awards issued under the Omnibus Incentive Plan and 2012 Compensation plan was $22.8 million, which is expected to be recognized over a weighted average period of 2.2 years. The fair value of the Company's share-based awards that vested during 2014, 2013 and 2012 was $4.2 million, $2.5 million and $4.7 million, respectively. | |||||||||||||
e)In May 2013, in connection with the acquisition of Alterra, the Company issued 101,875 replacement options and 154,103 restricted stock awards to holders of Alterra options and restricted stock awards. The replacement options and restricted stock awards were issued under the terms and conditions of the Alterra Capital Holdings Limited 2008 Stock Incentive Plan, the Alterra Capital Holdings Limited 2006 Equity Incentive Plan and the Alterra Capital Holdings Limited 2000 Stock Incentive Plan (collectively, the Alterra Equity Award Plans). No further options or restricted stock awards are available for issuance under the Alterra Equity Award Plans. | |||||||||||||
The replacement options issued were fully vested and exercisable as of the Acquisition Date and had a weighted average exercise price of $398.96 and a grant-date fair value of $140.08, which was included in the acquisition consideration. The fair value of the options was estimated on the grant date using the Black-Scholes option pricing model. Assumptions used in the pricing model included an expected annual volatility of 19.04%, a risk-free rate of approximately 0.20% and an expected term of approximately two years. The expected annual volatility was based on the historical volatility of the Company's stock and other factors. The risk-free rate was based on the U.S. Treasury yield curve, with a remaining term equal to the expected term assumption at the grant date. The expected term of the options granted represents the period of time that the options were expected to be outstanding at the grant date. | |||||||||||||
The following table summarizes additional information with respect to these options. | |||||||||||||
Number | Weighted | Weighted Average | Intrinsic Value | ||||||||||
of | Average | Remaining | (in millions) | ||||||||||
Shares | Exercise Price | Contractual Term | |||||||||||
(years) | |||||||||||||
Outstanding and exercisable, January 1, 2014 | 35,941 | $ | 412.39 | ||||||||||
Exercised | 13,636 | $ | 413.06 | ||||||||||
Outstanding and exercisable, December 31, 2014 | 22,305 | $ | 411.98 | 1.7 | $ | 6.1 | |||||||
During 2014, 13,636 options were exercised under the Alterra Equity Award Plans, resulting in cash proceeds of $5.6 million and a current tax benefit of $0.8 million. The intrinsic value of options exercised in 2014 was $2.5 million. From the Acquisition Date through December 31, 2013, 65,934 options were exercised under the Alterra Equity Award Plans, resulting in cash proceeds of $24.3 million and a current tax benefit of $0.8 million. The intrinsic value of options exercised in 2013 was $9.4 million. | |||||||||||||
The replacement restricted stock awards issued by the Company had a grant date fair value of $81.6 million, or $529.59 per share. The awards were partially vested as of the Acquisition Date and had a weighted average remaining service period of approximately one year. As a result, $61.0 million was recognized as part of the Acquisition Consideration and $20.6 million is being recognized as compensation expense over the remaining service period of the awards. The fair value of the replacement restricted stock awards was determined based on the weighted average price of the Company's stock on April 30, 2013, the day preceding the Acquisition Date. The following table summarizes activity related to these nonvested restricted stock awards. | |||||||||||||
Number | Weighted Average | ||||||||||||
of Awards | Grant-Date | ||||||||||||
Fair Value | |||||||||||||
Nonvested awards at January 1, 2014 | 68,411 | $ | 529.59 | ||||||||||
Vested | (34,119 | ) | 529.59 | ||||||||||
Forfeited | (377 | ) | 529.59 | ||||||||||
Nonvested awards at December 31, 2014 | 33,915 | $ | 529.59 | ||||||||||
The Company recognized compensation expense totaling $3.9 million and $12.7 million for the years ended December 31, 2014 and 2013, respectively, related to these restricted stock awards. As of December 31, 2014, unrecognized compensation cost related to the nonvested restricted stock awards was $0.6 million, which is expected to be recognized over a weighted average period of less than one year. The fair value of the restricted stock awards that vested during 2014 and 2013 was $18.1 million and $41.3 million, respectively. |
Other_Comprehensive_Income
Other Comprehensive Income | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Other Comprehensive Income (Loss), Tax [Abstract] | ||||||||||||||||
Other Comprehensive Income | Other Comprehensive Income | |||||||||||||||
Other comprehensive income includes net holding gains arising during the period, changes in unrealized other-than-temporary impairment losses on fixed maturities arising during the period and reclassification adjustments for net gains included in net income. Other comprehensive income also includes changes in foreign currency translation adjustments and changes in net actuarial pension loss. | ||||||||||||||||
The following table presents the change in accumulated other comprehensive income by component, net of taxes and noncontrolling interests. | ||||||||||||||||
(dollars in thousands) | Unrealized | Foreign | Net Actuarial | Total | ||||||||||||
Holding Gains | Currency | Pension Loss | ||||||||||||||
on Available-for- | ||||||||||||||||
Sale Securities | ||||||||||||||||
31-Dec-11 | $ | 704,719 | $ | (2,614 | ) | $ | (41,185 | ) | $ | 660,920 | ||||||
Other comprehensive income before reclassifications | 266,265 | 1,539 | 4,670 | 272,474 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income | (24,051 | ) | — | 1,994 | (22,057 | ) | ||||||||||
Total other comprehensive income | 242,214 | 1,539 | 6,664 | 250,417 | ||||||||||||
31-Dec-12 | $ | 946,933 | $ | (1,075 | ) | $ | (34,521 | ) | $ | 911,337 | ||||||
Other comprehensive income (loss) before reclassifications | 225,404 | (10,171 | ) | 2,517 | 217,750 | |||||||||||
Amounts reclassified from accumulated other comprehensive income | (40,830 | ) | — | 1,548 | (39,282 | ) | ||||||||||
Total other comprehensive income (loss) | 184,574 | (10,171 | ) | 4,065 | 178,468 | |||||||||||
31-Dec-13 | $ | 1,131,507 | $ | (11,246 | ) | $ | (30,456 | ) | $ | 1,089,805 | ||||||
Other comprehensive income (loss) before reclassifications | 687,908 | (32,245 | ) | (16,516 | ) | 639,147 | ||||||||||
Amounts reclassified from accumulated other comprehensive income | (26,161 | ) | — | 1,766 | (24,395 | ) | ||||||||||
Total other comprehensive income (loss) | 661,747 | (32,245 | ) | (14,750 | ) | 614,752 | ||||||||||
31-Dec-14 | $ | 1,793,254 | $ | (43,491 | ) | $ | (45,206 | ) | $ | 1,704,557 | ||||||
The following table summarizes the tax expense (benefit) associated with each component of other comprehensive income. | ||||||||||||||||
Years Ended December 31, | ||||||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||||||
Change in net unrealized gains on investments: | ||||||||||||||||
Net holding gains arising during the period | $ | 328,564 | $ | 93,837 | $ | 122,524 | ||||||||||
Change in unrealized other-than-temporary impairment losses on fixed maturities arising during the period | 614 | (34 | ) | (49 | ) | |||||||||||
Reclassification adjustments for net gains included in net income | (9,890 | ) | (16,382 | ) | (10,881 | ) | ||||||||||
Change in net unrealized gains on investments | 319,288 | 77,421 | 111,594 | |||||||||||||
Change in foreign currency translation adjustments | 1,918 | (1,619 | ) | (446 | ) | |||||||||||
Change in net actuarial pension loss | (3,687 | ) | 1,015 | 1,991 | ||||||||||||
Total | $ | 317,519 | $ | 76,817 | $ | 113,139 | ||||||||||
The following table presents the details of amounts reclassified from accumulated other comprehensive income into income, by component. | ||||||||||||||||
Years Ended December 31, | ||||||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||||||
Unrealized holding gains on available-for-sale securities: | ||||||||||||||||
Other-than-temporary impairment losses | $ | (4,784 | ) | $ | (4,706 | ) | $ | (12,078 | ) | |||||||
Net realized investment gains, excluding other-than-temporary impairment losses | 40,835 | 61,918 | 47,010 | |||||||||||||
Total before taxes | 36,051 | 57,212 | 34,932 | |||||||||||||
Income taxes | (9,890 | ) | (16,382 | ) | (10,881 | ) | ||||||||||
Reclassification of unrealized holding gains, net of taxes | $ | 26,161 | $ | 40,830 | $ | 24,051 | ||||||||||
Net actuarial pension loss: | ||||||||||||||||
Underwriting, acquisition and insurance expenses | $ | (2,084 | ) | $ | (1,934 | ) | $ | (2,590 | ) | |||||||
Income taxes | 318 | 386 | 596 | |||||||||||||
Reclassification of net actuarial pension loss, net of taxes | $ | (1,766 | ) | $ | (1,548 | ) | $ | (1,994 | ) |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value Measurements | Fair Value Measurements | |||||||||||||||
FASB ASC 820-10, Fair Value Measurements and Disclosures, establishes a three-level hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the assets or liabilities fall within different levels of the hierarchy, the classification is based on the lowest level input that is significant to the fair value measurement of the asset or liability. | ||||||||||||||||
Classification of assets and liabilities within the hierarchy considers the markets in which the assets and liabilities are traded and the reliability and transparency of the assumptions used to determine fair value. The hierarchy requires the use of observable market data when available. The levels of the hierarchy are defined as follows: | ||||||||||||||||
Level 1 - Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities traded in active markets. | ||||||||||||||||
Level 2 - Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and market-corroborated inputs. | ||||||||||||||||
Level 3 - Inputs to the valuation methodology are unobservable for the asset or liability and are significant to the fair value measurement. | ||||||||||||||||
In accordance with FASB ASC 820, the Company determines fair value based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, the Company uses various methods, including the market, income and cost approaches. The Company uses valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The following section describes the valuation methodologies used by the Company to measure assets and liabilities at fair value, including an indication of the level within the fair value hierarchy in which each asset or liability is generally classified. | ||||||||||||||||
Investments available-for-sale. Investments available-for-sale are recorded at fair value on a recurring basis and include fixed maturities, equity securities and short-term investments. Short-term investments include certificates of deposit, commercial paper, discount notes and treasury bills with original maturities of one year or less. Fair value for investments available-for-sale is determined by the Company after considering various sources of information, including information provided by a third party pricing service. The pricing service provides prices for substantially all of the Company's fixed maturities and equity securities. In determining fair value, the Company generally does not adjust the prices obtained from the pricing service. The Company obtains an understanding of the pricing service's valuation methodologies and related inputs, which include, but are not limited to, reported trades, benchmark yields, issuer spreads, bids, offers, duration, credit ratings, estimated cash flows and prepayment speeds. The Company validates prices provided by the pricing service by reviewing prices from other pricing sources and analyzing pricing data in certain instances. | ||||||||||||||||
The Company has evaluated the various types of securities in its investment portfolio to determine an appropriate fair value hierarchy level based upon trading activity and the observability of market inputs. Level 1 investments include those traded on an active exchange, such as the New York Stock Exchange. Level 2 investments include U.S. Treasury securities and obligations of U.S. government agencies, municipal bonds, foreign government bonds, commercial mortgage-backed securities, residential mortgage-backed securities, asset-backed securities and corporate debt securities. | ||||||||||||||||
Fair value for investments available-for-sale is measured based upon quoted prices in active markets, if available. Due to variations in trading volumes and the lack of quoted market prices, fixed maturities are classified as Level 2 investments. The fair value of fixed maturities is normally derived through recent reported trades for identical or similar securities, making adjustments through the reporting date based upon available market observable data described above. If there are no recent reported trades, the fair value of fixed maturities may be derived through the use of matrix pricing or model processes, where future cash flow expectations are developed based upon collateral performance and discounted at an estimated market rate. Significant inputs used to determine the fair value of obligations of states, municipalities and political subdivisions, corporate bonds and obligations of foreign governments include reported trades, benchmark yields, issuer spreads, bids, offers, credit information and estimated cash flows. Significant inputs used to determine the fair value of commercial mortgage-backed securities, residential mortgage-backed securities and asset-backed securities include the type of underlying assets, benchmark yields, prepayment speeds, collateral information, tranche type and volatility, estimated cash flows, credit information, default rates, recovery rates, issuer spreads and the year of issue. | ||||||||||||||||
Derivatives. Derivatives are recorded at fair value on a recurring basis and, prior to its scheduled termination in December 2014, included a credit default swap. The fair value of the credit default swap was measured by the Company using an external valuation model with any changes in fair value recorded in net investment income. Due to the significance of unobservable inputs required in measuring the fair value of the credit default swap, the credit default swap was classified as Level 3 within the fair value hierarchy. As of December 31, 2013, the fair value of the credit default swap was included in other liabilities on the consolidated balance sheet. Net investment income in 2014, 2013 and 2012 included favorable changes in the fair value of the credit default swap of $2.2 million, $10.5 million and $16.6 million, respectively. The Company had no other material derivative instruments at December 31, 2014 or 2013. | ||||||||||||||||
Senior long-term debt and other debt. Senior long-term debt and other debt is carried at amortized cost with the estimated fair value disclosed on the consolidated balance sheets. Senior long-term debt and other debt is classified as Level 2 within the fair value hierarchy due to variations in trading volumes and the lack of quoted market prices. Fair value for senior long-term debt and other debt is generally derived through recent reported trades for identical securities, making adjustments through the reporting date, if necessary, based upon available market observable data including U.S. Treasury securities and implied credit spreads. Significant inputs used to determine the fair value of senior long-term debt and other debt include reported trades, benchmark yields, issuer spreads, bids and offers. | ||||||||||||||||
The following tables present the balances of assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy. | ||||||||||||||||
December 31, 2014 | ||||||||||||||||
(dollars in thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | ||||||||||||||||
Investments available-for-sale: | ||||||||||||||||
Fixed maturities: | ||||||||||||||||
U.S. Treasury securities and obligations of U.S. government agencies | $ | — | $ | 673,262 | $ | — | $ | 673,262 | ||||||||
Obligations of states, municipalities and political subdivisions | — | 4,317,547 | — | 4,317,547 | ||||||||||||
Foreign governments | — | 1,611,921 | — | 1,611,921 | ||||||||||||
Commercial mortgage-backed securities | — | 430,627 | — | 430,627 | ||||||||||||
Residential mortgage-backed securities | — | 982,847 | — | 982,847 | ||||||||||||
Asset-backed securities | — | 99,490 | — | 99,490 | ||||||||||||
Corporate bonds | — | 2,307,188 | — | 2,307,188 | ||||||||||||
Total fixed maturities | — | 10,422,882 | — | 10,422,882 | ||||||||||||
Equity securities: | ||||||||||||||||
Insurance, banks and other financial institutions | 1,311,925 | — | — | 1,311,925 | ||||||||||||
Industrial, consumer and all other | 2,825,651 | — | — | 2,825,651 | ||||||||||||
Total equity securities | 4,137,576 | — | — | 4,137,576 | ||||||||||||
Short-term investments | 1,469,975 | 124,874 | — | 1,594,849 | ||||||||||||
Total investments available-for-sale | $ | 5,607,551 | $ | 10,547,756 | $ | — | $ | 16,155,307 | ||||||||
December 31, 2013 | ||||||||||||||||
(dollars in thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | ||||||||||||||||
Investments available-for-sale: | ||||||||||||||||
Fixed maturities: | ||||||||||||||||
U.S. Treasury securities and obligations of U.S. government agencies | $ | — | $ | 1,194,231 | $ | — | $ | 1,194,231 | ||||||||
Obligations of states, municipalities and political subdivisions | — | 3,075,715 | — | 3,075,715 | ||||||||||||
Foreign governments | — | 1,461,054 | — | 1,461,054 | ||||||||||||
Commercial mortgage-backed securities | — | 367,821 | — | 367,821 | ||||||||||||
Residential mortgage-backed securities | — | 870,248 | — | 870,248 | ||||||||||||
Asset-backed securities | — | 188,289 | — | 188,289 | ||||||||||||
Corporate bonds | — | 2,985,178 | — | 2,985,178 | ||||||||||||
Total fixed maturities | — | 10,142,536 | — | 10,142,536 | ||||||||||||
Equity securities: | ||||||||||||||||
Insurance, banks and other financial institutions | 1,015,083 | — | — | 1,015,083 | ||||||||||||
Industrial, consumer and all other | 2,236,715 | — | — | 2,236,715 | ||||||||||||
Total equity securities | 3,251,798 | — | — | 3,251,798 | ||||||||||||
Short-term investments | 1,312,561 | 139,727 | — | 1,452,288 | ||||||||||||
Total investments available-for-sale | $ | 4,564,359 | $ | 10,282,263 | $ | — | $ | 14,846,622 | ||||||||
Liabilities: | ||||||||||||||||
Derivative contracts | $ | — | $ | — | $ | 2,230 | $ | 2,230 | ||||||||
There were no transfers into or out of Level 1 and Level 2 during 2014 or 2013. | ||||||||||||||||
Except as disclosed in note 2, the Company did not have other any assets or liabilities measured at fair value on a non-recurring basis during the years ended December 31, 2014 and 2013. |
Reinsurance
Reinsurance | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Reinsurance Disclosures [Abstract] | ||||||||||||||||||||||||
Reinsurance | Reinsurance | |||||||||||||||||||||||
The Company uses reinsurance and retrocessional reinsurance to manage its net retention on individual risks and overall exposure to losses while providing it with the ability to offer policies with sufficient limits to meet policyholder needs. Historically, the Company's products were written with limits that did not require significant reinsurance. Following the acquisition of Alterra, the Company has certain insurance and reinsurance products that use higher levels of reinsurance. In a reinsurance transaction, an insurance company transfers, or cedes, all or part of its exposure in return for a portion of the premium. In a retrocessional reinsurance transaction, a reinsurance company transfers, or cedes, all or part of its exposure in return for a portion of the premium. The ceding of insurance does not legally discharge the Company from its primary liability for the full amount of the policies, and the Company will be required to pay the loss and bear collection risk if the reinsurer fails to meet its obligations under the reinsurance or retrocessional agreement. | ||||||||||||||||||||||||
A credit risk exists with ceded reinsurance to the extent that any reinsurer is unable to meet the obligations assumed under the reinsurance or retrocessional contracts. Allowances are established for amounts deemed uncollectible. The Company evaluates the financial condition of its reinsurers and monitors concentration of credit risk arising from its exposure to individual reinsurers. At December 31, 2014 and 2013, balances recoverable from the Company's ten largest reinsurers, by group, represented approximately 63% and 62%, respectively, of the reinsurance recoverable on paid and unpaid losses, before considering reinsurance allowances. At December 31, 2014, the Company's largest reinsurance balance was due from the Fairfax Financial Group and represented 10% of the reinsurance recoverable on paid and unpaid losses, before considering reinsurance allowances. | ||||||||||||||||||||||||
To further reduce credit exposure to reinsurance recoverable balances, the Company has received collateral, including letters of credit and trust accounts, from certain reinsurers. Collateral related to these reinsurance agreements is available, without restriction, when the Company pays losses covered by the reinsurance agreements. | ||||||||||||||||||||||||
The following table summarizes the Company's reinsurance allowance for doubtful accounts. | ||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Reinsurance allowance, beginning of year | $ | 76,210 | $ | 71,148 | $ | 69,067 | ||||||||||||||||||
Additions | 10,316 | 13,621 | 24,179 | |||||||||||||||||||||
Deductions | (26,713 | ) | (8,559 | ) | (22,098 | ) | ||||||||||||||||||
Reinsurance allowance, end of year | $ | 59,813 | $ | 76,210 | $ | 71,148 | ||||||||||||||||||
Management believes the Company's reinsurance allowance for doubtful accounts is adequate at December 31, 2014; however, the deterioration in the credit quality of existing reinsurers or disputes over reinsurance and retrocessional contracts could result in additional charges. | ||||||||||||||||||||||||
The following table summarizes the effect of reinsurance and retrocessional reinsurance on premiums written and earned. | ||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
(dollars in thousands) | Written | Earned | Written | Earned | Written | Earned | ||||||||||||||||||
Direct | $ | 3,478,273 | $ | 3,443,912 | $ | 3,143,957 | $ | 2,947,812 | $ | 2,115,353 | $ | 2,057,735 | ||||||||||||
Assumed | 1,327,240 | 1,298,371 | 776,269 | 1,016,853 | 398,328 | 376,186 | ||||||||||||||||||
Ceded | (888,498 | ) | (901,371 | ) | (683,543 | ) | (733,049 | ) | (299,555 | ) | (286,793 | ) | ||||||||||||
Net premiums | $ | 3,917,015 | $ | 3,840,912 | $ | 3,236,683 | $ | 3,231,616 | $ | 2,214,126 | $ | 2,147,128 | ||||||||||||
Incurred losses and loss adjustment expenses were net of reinsurance recoverables (ceded incurred losses and loss adjustment expenses) of $423.1 million, $269.4 million and $165.8 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||||
The percentage of ceded earned premiums to gross earned premiums was 19%, 18% and 12% for the years ended December 31, 2014, 2013 and 2012, respectively. The percentage of assumed earned premiums to net earned premiums was 34%, 31% and 18% for the years ended December 31, 2014, 2013 and 2012, respectively. |
Commitments_And_Contingencies
Commitments And Contingencies | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Commitments And Contingencies | Commitments and Contingencies | |||
a)The Company leases substantially all of its facilities and certain furniture and equipment under noncancelable operating leases with remaining terms up to 20 years. | ||||
The following table summarizes the Company's minimum annual rental commitments, excluding taxes, insurance and other operating costs payable directly by the Company, for noncancelable operating leases at December 31, 2014. | ||||
Years Ending December 31, | (dollars in | |||
thousands) | ||||
2015 | $ | 28,434 | ||
2016 | 23,636 | |||
2017 | 28,124 | |||
2018 | 26,549 | |||
2019 | 25,169 | |||
2020 and thereafter | 151,000 | |||
Total | $ | 282,912 | ||
Rental expense was $42.7 million, $35.3 million and $28.1 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||
b)Contingencies arise in the normal course of the Company's operations and are not expected to have a material impact on the Company's financial condition or results of operations. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions |
The Company engages in certain related party transactions in the normal course of business. These transactions are at arm's length and are not material to the Company's consolidated financial statements. |
Statutory_Financial_Informatio
Statutory Financial Information | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Statutory Financial Information [Abstract] | ||||||||||||
Statutory Financial Information | Statutory Financial Information | |||||||||||
a) Statutory capital and surplus and statutory net income (loss) for the Company's wholly-owned insurance subsidiaries as of December 31, 2014 and 2013 and for the years ended December 31, 2014, 2013 and 2012, respectively, is summarized below. | ||||||||||||
Statutory Capital and Surplus | ||||||||||||
(dollars in thousands) | 2014 | 2013 | ||||||||||
United States | $ | 2,619,001 | $ | 2,396,530 | ||||||||
United Kingdom | $ | 604,564 | $ | 510,426 | ||||||||
Bermuda | $ | 1,890,920 | $ | 1,503,004 | ||||||||
Other | $ | 177,738 | $ | 172,447 | ||||||||
As of December 31, 2014, the amount of statutory capital and surplus necessary to satisfy regulatory requirements is not significant in relation to actual statutory capital and surplus. | ||||||||||||
Statutory Net Income (Loss) | ||||||||||||
Years Ended December 31, | ||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||
United States | $ | 212,909 | $ | 235,009 | $ | 127,179 | ||||||
United Kingdom | $ | 70,632 | $ | 109,983 | $ | 82,573 | ||||||
Bermuda | $ | 162,809 | $ | 249,772 | N/A | |||||||
Other | $ | 1,271 | $ | (12,617 | ) | N/A | ||||||
United States | ||||||||||||
The laws of the domicile states of the Company's U.S. insurance subsidiaries govern the amount of dividends that may be paid to the Company. Generally, statutes in the domicile states of the Company's U.S. insurance subsidiaries require prior approval for payment of extraordinary, as opposed to ordinary, dividends. At December 31, 2014, the Company's U.S. insurance subsidiaries could pay up to $310.6 million during the following 12 months under the ordinary dividend regulations. | ||||||||||||
In converting from U.S. statutory accounting principles to U.S. GAAP, typical adjustments include deferral of policy acquisition costs, differences in the calculation of deferred income taxes and the inclusion of net unrealized gains or losses relating to fixed maturities in shareholders' equity. The Company does not use any permitted statutory accounting practices that are different from prescribed statutory accounting practices which impact statutory capital and surplus. | ||||||||||||
United Kingdom | ||||||||||||
The Company's United Kingdom insurance subsidiary and its Lloyd's managing agent are authorized by the Prudential Regulation Authority (PRA) and regulated by both the PRA and the Financial Conduct Authority (FCA). The PRA oversees compliance with established periodic auditing and reporting requirements, minimum solvency margins and individual capital assessment requirements and dividend restrictions, while both the PRA and the FCA oversee compliance with risk assessment reviews and various other requirements. Markel International Insurance Company Limited (MIICL) is required to give 14 days advance notice to the PRA for any dividends from MIICL. Markel Syndicate Management Limited, the managing agent of the Company's syndicate at Lloyd's, is required to satisfy the solvency requirements of Lloyd's. In addition, the Company's United Kingdom subsidiaries must comply with the United Kingdom Companies Act of 2006, which provides that dividends may only be paid out of profits available for that purpose. As of December 31, 2014, earnings of the Company's United Kingdom subsidiaries are considered reinvested indefinitely for U.S. income tax purposes and will not be made available for distributions to the holding company. | ||||||||||||
Bermuda | ||||||||||||
Markel Bermuda is subject to enhanced capital requirements in addition to minimum solvency and liquidity requirements. The enhanced capital requirement is determined by reference to a risk-based capital model that determines a control threshold for statutory capital and surplus by taking into account the risk characteristics of different aspects of the insurer's business. At December 31, 2014, Markel Bermuda satisfied both the enhanced capital requirements and the minimum solvency and liquidity requirements. | ||||||||||||
Under the Bermuda Insurance Act, Markel Bermuda is prohibited from paying or declaring dividends during a fiscal year if it is in breach of its enhanced capital requirement, solvency margin or minimum liquidity ratio or if the declaration or payment of the dividend would cause a breach. If an insurer fails to meet its solvency margin or minimum liquidity ratio on the last day of any financial year, it is prohibited from declaring or paying any dividends during the next financial year without the approval of the Bermuda Monetary Authority (BMA). Further, Markel Bermuda is prohibited from declaring or paying, in any financial year, dividends of more than 25% of its total statutory capital and surplus as set forth in its previous year's statutory balance sheet unless at least seven days before payment of those dividends it files with the BMA an affidavit stating that it will continue to meet its solvency margin and minimum liquidity ratio. Markel Bermuda must obtain the BMA's prior approval for a reduction by 15% or more of the total statutory capital as set forth in its previous year's financial statements. In addition, as a long-term insurer, Markel Bermuda may not declare or pay a dividend to any person other than a policyholder unless the value of the assets in its long-term business fund, as certified by Markel Bermuda's approved actuary, exceeds the liabilities of its long-term business by the amount of the dividend and at least the prescribed minimum solvency margin. As of December 31, 2014, Markel Bermuda could pay up to $472.7 million during the following 12 months without making any additional filings with the BMA. | ||||||||||||
Other Jurisdictions | ||||||||||||
The Company's other foreign subsidiaries are subject to capital and solvency requirements in their respective jurisdictions of domicile that govern their ability to declare and pay dividends. As of December 31, 2014, earnings of our foreign subsidiaries are considered reinvested indefinitely for U.S. income tax purposes and will not be made available for distributions to the holding company. | ||||||||||||
b) Lloyd's sets the corporate members' required capital annually based on each syndicates' business plans, rating environment, reserving environment and input arising from Lloyd's discussions with, inter alia, regulatory and rating agencies. Such required capital is referred to as Funds at Lloyd's (FAL), and comprises cash and investments. The amount of cash and investments held as FAL as of December 31, 2014 was $784.6 million. The amount which the Company provides as FAL is not available for distribution to the holding company. The Company's corporate members may also be required to maintain funds under the control of Lloyd's in excess of their capital requirements and such funds also may not be available for distribution to the holding company. |
Segment_Reporting_Disclosures
Segment Reporting Disclosures | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ||||||||||||||||||||||||
Segment Reporting Disclosures | Segment Reporting Disclosures | |||||||||||||||||||||||
In conjunction with the continued integration of Alterra into the Company's insurance operations, during the first quarter of 2014, the Company changed the way it aggregates and monitors its ongoing underwriting results. Effective January 1, 2014, the Company monitors and reports its ongoing underwriting operations in the following three segments: U.S. Insurance, International Insurance and Reinsurance. In determining how to aggregate and monitor its underwriting results, the Company considers many factors, including the geographic location and regulatory environment of the insurance entity underwriting the risk, the nature of the insurance product sold, the type of account written and the type of customer served. The U.S. Insurance segment includes all direct business and facultative placements written by the Company's insurance subsidiaries domiciled in the United States. The International Insurance segment includes all direct business and facultative placements written by the Company's insurance subsidiaries domiciled outside of the United States, including the Company's syndicate at Lloyd's. The Reinsurance segment includes all treaty reinsurance written across the Company. Results for lines of business discontinued prior to, or in conjunction with, acquisitions, including the results attributable to the run-off of life and annuity reinsurance business previously written by Alterra, are reported in the Other Insurance (Discontinued Lines) segment. All investing activities related to the Company's insurance operations are included in the Investing segment. | ||||||||||||||||||||||||
The Company's non-insurance operations include its Markel Ventures operations, which primarily consist of controlling interests in various industrial and service businesses. The Company's non-insurance operations also include the results of the Company's legal and professional consulting services, which were acquired through the acquisition of Abbey in January 2014. For purposes of segment reporting, the Company's non-insurance operations are not considered to be a reportable segment. | ||||||||||||||||||||||||
The following table summarizes the Company's gross written premiums by country. Gross written premiums are attributed to individual countries based upon location of risk. | ||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||
(dollars in thousands) | 2014 | % of | 2013 | % of | 2012 | % of | ||||||||||||||||||
Total | Total | Total | ||||||||||||||||||||||
United States | $ | 3,523,239 | 73 | % | $ | 2,934,868 | 75 | % | $ | 1,768,011 | 70 | % | ||||||||||||
United Kingdom | 441,669 | 9 | 245,143 | 6 | 147,891 | 6 | ||||||||||||||||||
Canada | 125,617 | 3 | 128,420 | 3 | 120,542 | 5 | ||||||||||||||||||
Other countries | 714,988 | 15 | 611,795 | 16 | 477,237 | 19 | ||||||||||||||||||
Total | $ | 4,805,513 | 100 | % | $ | 3,920,226 | 100 | % | $ | 2,513,681 | 100 | % | ||||||||||||
Most of the Company's gross written premiums are placed through insurance and reinsurance brokers. During the years ended December 31, 2014 and 2013, the top three independent brokers accounted for approximately 28% and 24% of consolidated gross premiums written. During the years ended December 31, 2014 and 2013, the top three independent brokers accounted for approximately 68%, of gross premiums written in the Reinsurance segment and 41% and 42%, respectively, of gross premiums written in the International Insurance segment. | ||||||||||||||||||||||||
Segment profit for the Investing segment is measured by net investment income and net realized investment gains or losses. Segment profit or loss for each of the Company's underwriting segments is measured by underwriting profit or loss. The property and casualty insurance industry commonly defines underwriting profit or loss as earned premiums net of losses and loss adjustment expenses and underwriting, acquisition and insurance expenses. Underwriting profit or loss does not replace operating income or net income computed in accordance with U.S. GAAP as a measure of profitability. Underwriting profit or loss provides a basis for management to evaluate the Company's underwriting performance. Segment profit or loss for the Company's underwriting segments also includes other revenues and other expenses, primarily related to the run-off of managing general agent operations that were discontinued in conjunction with acquisitions. Other revenues and other expenses in the Other Insurance (Discontinued Lines) segment are comprised of the results attributable to the run-off of life and annuity reinsurance business. | ||||||||||||||||||||||||
For management reporting purposes, the Company allocates assets to its underwriting, investing and non-insurance operations. Underwriting assets are all assets not specifically allocated to the Investing segment or to the Company's non-insurance operations. Underwriting and investing assets are not allocated to the U.S. Insurance, International Insurance, Reinsurance or Other Insurance (Discontinued Lines) segments since the Company does not manage its assets by underwriting segment. The Company does not allocate capital expenditures for long-lived assets to any of its underwriting segments for management reporting purposes. | ||||||||||||||||||||||||
All segment disclosures for the prior periods have been revised to be consistent with the new segment structure. | ||||||||||||||||||||||||
a) | The following tables summarize the Company's segment disclosures. | |||||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||||||
(dollars in thousands) | U.S. Insurance | International Insurance | Reinsurance | Other | Investing | Consolidated | ||||||||||||||||||
Insurance | ||||||||||||||||||||||||
(Discontinued | ||||||||||||||||||||||||
Lines) | ||||||||||||||||||||||||
Gross premium volume | $ | 2,493,823 | $ | 1,200,403 | $ | 1,112,728 | $ | (1,441 | ) | $ | — | $ | 4,805,513 | |||||||||||
Net written premiums | 2,071,466 | 889,336 | 956,584 | (371 | ) | — | 3,917,015 | |||||||||||||||||
Earned premiums | 2,022,860 | 909,679 | 908,385 | (12 | ) | — | 3,840,912 | |||||||||||||||||
Losses and loss adjustment expenses: | ||||||||||||||||||||||||
Current accident year | (1,340,129 | ) | (660,409 | ) | (637,474 | ) | — | — | (2,638,012 | ) | ||||||||||||||
Prior accident years | 216,557 | 166,615 | 79,951 | (27,578 | ) | — | 435,545 | |||||||||||||||||
Amortization of policy acquisition costs | (403,233 | ) | (141,394 | ) | (110,289 | ) | — | — | (654,916 | ) | ||||||||||||||
Other operating expenses | (396,737 | ) | (207,175 | ) | (201,673 | ) | (381 | ) | — | (805,966 | ) | |||||||||||||
Underwriting profit (loss) | 99,318 | 67,316 | 38,900 | (27,971 | ) | — | 177,563 | |||||||||||||||||
Net investment income | — | — | — | — | 363,230 | 363,230 | ||||||||||||||||||
Net realized investment gains | — | — | — | — | 46,000 | 46,000 | ||||||||||||||||||
Other revenues (insurance) | 2,478 | 21,827 | 2,696 | 1,631 | — | 28,632 | ||||||||||||||||||
Other expenses (insurance) | (5,149 | ) | (18,706 | ) | (1,847 | ) | (37,132 | ) | — | (62,834 | ) | |||||||||||||
Segment profit (loss) | $ | 96,647 | $ | 70,437 | $ | 39,749 | $ | (63,472 | ) | $ | 409,230 | $ | 552,591 | |||||||||||
Other revenues (non-insurance) | 854,893 | |||||||||||||||||||||||
Other expenses (non-insurance) | (792,037 | ) | ||||||||||||||||||||||
Amortization of intangible assets | (57,627 | ) | ||||||||||||||||||||||
Interest expense | (117,442 | ) | ||||||||||||||||||||||
Income before income taxes | $ | 440,378 | ||||||||||||||||||||||
U.S. GAAP combined ratio (1) | 95 | % | 93 | % | 96 | % | NM | (2) | 95 | % | ||||||||||||||
(1) | The U.S. GAAP combined ratio is a measure of underwriting performance and represents the relationship of incurred losses, loss adjustment expenses and underwriting, acquisition and insurance expenses to earned premiums. | |||||||||||||||||||||||
(2) | NM — Ratio is not meaningful. | |||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||
(dollars in thousands) | U.S. Insurance | International Insurance | Reinsurance | Other | Investing | Consolidated | ||||||||||||||||||
Insurance | ||||||||||||||||||||||||
(Discontinued | ||||||||||||||||||||||||
Lines) | ||||||||||||||||||||||||
Gross premium volume | $ | 2,252,739 | $ | 1,101,099 | $ | 566,348 | $ | 40 | $ | — | $ | 3,920,226 | ||||||||||||
Net written premiums | 1,915,770 | 840,050 | 480,822 | 41 | — | 3,236,683 | ||||||||||||||||||
Earned premiums | 1,727,766 | 833,984 | 669,826 | 40 | — | 3,231,616 | ||||||||||||||||||
Losses and loss adjustment expenses: | ||||||||||||||||||||||||
Current accident year | (1,173,258 | ) | (588,759 | ) | (465,385 | ) | — | — | (2,227,402 | ) | ||||||||||||||
Prior accident years | 298,113 | 130,660 | 12,938 | (30,582 | ) | — | 411,129 | |||||||||||||||||
Transaction costs and other acquisition-related expenses (1) | (12,724 | ) | (13,366 | ) | (49,050 | ) | — | — | (75,140 | ) | ||||||||||||||
Amortization of policy acquisition costs | (287,795 | ) | (138,626 | ) | (45,494 | ) | — | — | (471,915 | ) | ||||||||||||||
Other operating expenses | (409,886 | ) | (171,666 | ) | (183,817 | ) | 112 | — | (765,257 | ) | ||||||||||||||
Underwriting profit (loss) | 142,216 | 52,227 | (60,982 | ) | (30,430 | ) | — | 103,031 | ||||||||||||||||
Net investment income | — | — | — | — | 317,373 | 317,373 | ||||||||||||||||||
Net realized investment gains | — | — | — | — | 63,152 | 63,152 | ||||||||||||||||||
Other revenues (insurance) | 13,648 | 4,284 | 5,432 | 1,130 | — | 24,494 | ||||||||||||||||||
Other expenses (insurance) | (17,087 | ) | (5,065 | ) | — | (28,126 | ) | — | (50,278 | ) | ||||||||||||||
Segment profit (loss) | $ | 138,777 | $ | 51,446 | $ | (55,550 | ) | $ | (57,426 | ) | $ | 380,525 | $ | 457,772 | ||||||||||
Other revenues (non-insurance) | 686,448 | |||||||||||||||||||||||
Other expenses (non-insurance) | (613,250 | ) | ||||||||||||||||||||||
Amortization of intangible assets | (55,223 | ) | ||||||||||||||||||||||
Interest expense | (114,004 | ) | ||||||||||||||||||||||
Income before income taxes | $ | 361,743 | ||||||||||||||||||||||
U.S. GAAP combined ratio (2) | 92 | % | 94 | % | 109 | % | NM | (3) | 97 | % | ||||||||||||||
(1) | In connection with the acquisition of Alterra, the Company incurred transaction costs of $16.0 million for the year ended December 31, 2013, which primarily consist of due diligence, legal and investment banking costs. Additionally, the Company incurred severance costs of $31.7 million, stay bonuses of $14.8 million and other compensation costs totaling $12.6 million related to the acceleration of certain long-term incentive compensation awards and restricted stock awards that were granted by Alterra prior to the acquisition. | |||||||||||||||||||||||
(2) | The U.S. GAAP combined ratio is a measure of underwriting performance and represents the relationship of incurred losses, loss adjustment expenses and underwriting, acquisition and insurance expenses to earned premiums. | |||||||||||||||||||||||
(3) | NM — Ratio is not meaningful. | |||||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||
(dollars in thousands) | U.S. Insurance | International Insurance | Reinsurance | Other | Investing | Consolidated | ||||||||||||||||||
Insurance | ||||||||||||||||||||||||
(Discontinued | ||||||||||||||||||||||||
Lines) | ||||||||||||||||||||||||
Gross premium volume | $ | 1,595,849 | $ | 788,092 | $ | 129,744 | $ | (4 | ) | $ | — | $ | 2,513,681 | |||||||||||
Net written premiums | 1,418,579 | 677,344 | 118,208 | (5 | ) | — | 2,214,126 | |||||||||||||||||
Earned premiums | 1,360,229 | 672,405 | 114,499 | (5 | ) | — | 2,147,128 | |||||||||||||||||
Losses and loss adjustment expenses: | ||||||||||||||||||||||||
Current accident year | (984,018 | ) | (492,177 | ) | (76,875 | ) | — | — | (1,553,070 | ) | ||||||||||||||
Prior accident years | 225,870 | 172,758 | 21,449 | (21,075 | ) | — | 399,002 | |||||||||||||||||
Prospective adoption of FASB ASU No. 2010-26 (1) | (31,033 | ) | (10,597 | ) | (1,463 | ) | — | — | (43,093 | ) | ||||||||||||||
Other amortization of policy acquisition costs | (243,466 | ) | (130,637 | ) | (10,913 | ) | — | — | (385,016 | ) | ||||||||||||||
Other operating expenses | (327,682 | ) | (153,545 | ) | (19,933 | ) | (203 | ) | — | (501,363 | ) | |||||||||||||
Underwriting profit (loss) | (100 | ) | 58,207 | 26,764 | (21,283 | ) | — | 63,588 | ||||||||||||||||
Net investment income | — | — | — | — | 282,107 | 282,107 | ||||||||||||||||||
Net realized investment gains | — | — | — | — | 31,593 | 31,593 | ||||||||||||||||||
Other revenues (insurance) | 44,968 | 4,964 | — | — | — | 49,932 | ||||||||||||||||||
Other expenses (insurance) | (41,425 | ) | (3,867 | ) | — | — | — | (45,292 | ) | |||||||||||||||
Segment profit (loss) | $ | 3,443 | $ | 59,304 | $ | 26,764 | $ | (21,283 | ) | $ | 313,700 | $ | 381,928 | |||||||||||
Other revenues (non-insurance) | 489,352 | |||||||||||||||||||||||
Other expenses (non-insurance) | (432,956 | ) | ||||||||||||||||||||||
Amortization of intangible assets | (33,512 | ) | ||||||||||||||||||||||
Interest expense | (92,762 | ) | ||||||||||||||||||||||
Income before income taxes | $ | 312,050 | ||||||||||||||||||||||
U.S. GAAP combined ratio(2) | 100 | % | 91 | % | 77 | % | NM | (3) | 97 | % | ||||||||||||||
(1) | Effective January 1, 2012, the Company prospectively adopted FASB ASU No. 2010-26, Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts. At December 31, 2011, deferred policy acquisition costs included $43.1 million of costs that no longer met the criteria for deferral as of January 1, 2012 and were recognized into income during 2012, consistent with policy terms. | |||||||||||||||||||||||
(2) | The U.S. GAAP combined ratio is a measure of underwriting performance and represents the relationship of incurred losses, loss adjustment expenses and underwriting, acquisition and insurance expenses to earned premiums. | |||||||||||||||||||||||
(3) | NM — Ratio is not meaningful. | |||||||||||||||||||||||
b)The following table summarizes deferred policy acquisition costs, unearned premiums and unpaid losses and loss adjustment expenses by segment. | ||||||||||||||||||||||||
(dollars in thousands) | Deferred Policy | Unearned | Unpaid Losses and | |||||||||||||||||||||
Acquisition Costs | Premiums | Loss Adjustment Expenses | ||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||
U.S. Insurance | $ | 165,333 | $ | 1,110,910 | $ | 3,577,166 | ||||||||||||||||||
International Insurance | 47,618 | 491,708 | 3,353,417 | |||||||||||||||||||||
Reinsurance | 140,459 | 643,072 | 2,818,792 | |||||||||||||||||||||
Other Insurance (Discontinued Lines) | — | — | 654,777 | |||||||||||||||||||||
Total | $ | 353,410 | $ | 2,245,690 | $ | 10,404,152 | ||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
U.S. Insurance | $ | 151,015 | $ | 1,058,529 | $ | 3,572,667 | ||||||||||||||||||
International Insurance | 50,425 | 516,689 | 3,399,228 | |||||||||||||||||||||
Reinsurance | 59,527 | 551,897 | 2,811,362 | |||||||||||||||||||||
Other Insurance (Discontinued Lines) | — | — | 478,799 | |||||||||||||||||||||
Total | $ | 260,967 | $ | 2,127,115 | $ | 10,262,056 | ||||||||||||||||||
c)The following table summarizes segment earned premiums by major product grouping. | ||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||||||||||||||
U.S. Insurance: | ||||||||||||||||||||||||
General liability | $ | 491,645 | $ | 431,798 | $ | 354,003 | ||||||||||||||||||
Professional liability | 321,005 | 268,203 | 216,234 | |||||||||||||||||||||
Property | 266,019 | 190,530 | 141,568 | |||||||||||||||||||||
Personal lines | 299,442 | 185,935 | 86,217 | |||||||||||||||||||||
Programs | 244,216 | 205,004 | 135,037 | |||||||||||||||||||||
Workers compensation | 263,164 | 250,790 | 241,208 | |||||||||||||||||||||
Other | 137,369 | 195,506 | 185,962 | |||||||||||||||||||||
Total U.S. Insurance | 2,022,860 | 1,727,766 | 1,360,229 | |||||||||||||||||||||
International Insurance: | ||||||||||||||||||||||||
General liability | 146,178 | 128,171 | 102,875 | |||||||||||||||||||||
Professional liability | 285,300 | 252,816 | 174,590 | |||||||||||||||||||||
Property | 76,691 | 91,497 | 48,483 | |||||||||||||||||||||
Marine and energy | 287,263 | 287,745 | 288,605 | |||||||||||||||||||||
Other | 114,247 | 73,755 | 57,852 | |||||||||||||||||||||
Total International Insurance | 909,679 | 833,984 | 672,405 | |||||||||||||||||||||
Reinsurance: | ||||||||||||||||||||||||
Property | 270,461 | 227,394 | 71,172 | |||||||||||||||||||||
Casualty | 323,390 | 244,981 | 476 | |||||||||||||||||||||
Auto | 152,645 | 84,042 | 21,163 | |||||||||||||||||||||
Other | 161,889 | 113,409 | 21,688 | |||||||||||||||||||||
Total Reinsurance | 908,385 | 669,826 | 114,499 | |||||||||||||||||||||
Other Insurance (Discontinued Lines) | (12 | ) | 40 | (5 | ) | |||||||||||||||||||
Total earned premiums | $ | 3,840,912 | $ | 3,231,616 | $ | 2,147,128 | ||||||||||||||||||
The Company does not manage products at this level of aggregation. The Company offers a diverse portfolio of products and manages these products in logical groupings within each operating segment. | ||||||||||||||||||||||||
d)The following table reconciles segment assets to the Company's consolidated balance sheets. | ||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Segment assets: | ||||||||||||||||||||||||
Investing | $ | 18,531,150 | $ | 17,550,332 | $ | 9,277,697 | ||||||||||||||||||
Underwriting | 5,422,445 | 5,468,731 | 2,387,305 | |||||||||||||||||||||
Total segment assets | 23,953,595 | 23,019,063 | 11,665,002 | |||||||||||||||||||||
Non-insurance operations | 1,246,762 | 936,448 | 891,586 | |||||||||||||||||||||
Total assets | $ | 25,200,357 | $ | 23,955,511 | $ | 12,556,588 | ||||||||||||||||||
Other_Revenues_And_Other_Expen
Other Revenues And Other Expenses | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Other Income and Expenses [Abstract] | ||||||||||||||||||||||||
Other Revenues And Other Expenses | Other Revenues and Other Expenses | |||||||||||||||||||||||
The following table summarizes the components of other revenues and other expenses. | ||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
(dollars in thousands) | Other | Other | Other | Other | Other | Other | ||||||||||||||||||
Revenues | Expenses | Revenues | Expenses | Revenues | Expenses | |||||||||||||||||||
Insurance: | ||||||||||||||||||||||||
Managing general agent operations | $ | 23,324 | $ | 22,527 | $ | 17,399 | $ | 20,382 | $ | 48,056 | $ | 43,069 | ||||||||||||
Life and annuity | 1,631 | 37,132 | 1,130 | 28,126 | — | — | ||||||||||||||||||
Other | 3,677 | 3,175 | 5,965 | 1,770 | 1,876 | 2,223 | ||||||||||||||||||
28,632 | 62,834 | 24,494 | 50,278 | 49,932 | 45,292 | |||||||||||||||||||
Non-Insurance: | ||||||||||||||||||||||||
Markel Ventures: Manufacturing | 575,353 | 513,668 | 495,138 | 437,712 | 366,886 | 328,484 | ||||||||||||||||||
Markel Ventures: Non-Manufacturing | 262,767 | 261,551 | 191,310 | 175,538 | 122,466 | 104,472 | ||||||||||||||||||
Other | 16,773 | 16,818 | — | — | — | — | ||||||||||||||||||
854,893 | 792,037 | 686,448 | 613,250 | 489,352 | 432,956 | |||||||||||||||||||
Total | $ | 883,525 | $ | 854,871 | $ | 710,942 | $ | 663,528 | $ | 539,284 | $ | 478,248 | ||||||||||||
The Company's Markel Ventures operations primarily consist of controlling interests in various industrial and service businesses and are viewed by management as separate and distinct from the Company's insurance operations. While each of the companies is operated independently from one another, management aggregates financial results into two industry groups: manufacturing and non-manufacturing. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ||||||||||||
Employee Benefit Plans | Employee Benefit Plans | |||||||||||
a)The Company maintains defined contribution plans for employees of its United States insurance operations in accordance with Section 401(k) of the IRC. Employees of the Company's Markel Ventures subsidiaries are provided post-retirement benefits under separate plans. The Company also provides various defined contribution plans for employees of its international insurance operations, which are in line with local market terms and conditions of employment. Expenses relating to the Company's defined contribution plans, including the defined contribution plans of Alterra effective May 1, 2013, were $27.2 million, $24.3 million and $19.1 million in 2014, 2013 and 2012, respectively. | ||||||||||||
b)The Terra Nova Pension Plan is a defined benefit plan which covers certain employees in our international insurance operations who meet the eligibility conditions set out in the plan. The plan has been closed to new participants since 2001. The cost of providing pensions for employees is charged to earnings over the average working life of employees according to actuarial recommendations. Final benefits are based on the employee's years of credited service and the higher of pensionable compensation received in the calendar year preceding retirement or the best average pensionable compensation received in any three consecutive years in the ten years preceding retirement. Effective April 1, 2012, employees are no longer accruing benefits for future service in the Terra Nova Pension Plan. The Company uses December 31 as the measurement date for the Terra Nova Pension Plan. | ||||||||||||
The following table summarizes the funded status of the Terra Nova Pension Plan and the amounts recognized on the accompanying consolidated balance sheets of the Company. | ||||||||||||
Years Ended December 31, | ||||||||||||
(dollars in thousands) | 2014 | 2013 | ||||||||||
Change in projected benefit obligation: | ||||||||||||
Projected benefit obligation at beginning of period | $ | 163,010 | $ | 151,327 | ||||||||
Interest cost | 7,572 | 6,533 | ||||||||||
Plan amendments | 495 | — | ||||||||||
Benefits paid | (4,424 | ) | (3,542 | ) | ||||||||
Actuarial loss | 29,609 | 5,459 | ||||||||||
Effect of foreign currency rate changes | (10,706 | ) | 3,233 | |||||||||
Projected benefit obligation at end of year | $ | 185,556 | $ | 163,010 | ||||||||
Change in plan assets: | ||||||||||||
Fair value of plan assets at beginning of period | $ | 189,437 | $ | 164,090 | ||||||||
Actual gain on plan assets | 22,395 | 19,430 | ||||||||||
Employer contributions | 5,610 | 5,338 | ||||||||||
Benefits paid | (4,424 | ) | (3,542 | ) | ||||||||
Effect of foreign currency rate changes | (11,619 | ) | 4,121 | |||||||||
Fair value of plan assets at end of year | $ | 201,399 | $ | 189,437 | ||||||||
Funded status of the plan | $ | 15,843 | $ | 26,427 | ||||||||
Net actuarial pension loss | 61,378 | 42,941 | ||||||||||
Total | $ | 77,221 | $ | 69,368 | ||||||||
Net actuarial pension loss is recognized as a component of accumulated other comprehensive income, net of a tax benefit of $16.2 million and $12.4 million in 2014 and 2013, respectively. The asset for pension benefits, also referred to as the funded status of the plan, at December 31, 2014 and December 31, 2013 was included in other assets on the consolidated balance sheets. | ||||||||||||
The following table presents the changes in plan assets and projected benefit obligation recognized in accumulated other comprehensive income. | ||||||||||||
Years Ended December 31, | ||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||
Net actuarial gain (loss) | $ | (20,521 | ) | $ | 3,146 | $ | 6,065 | |||||
Amortization of: | ||||||||||||
Net actuarial loss | 1,589 | 1,934 | 2,590 | |||||||||
Prior service costs | 495 | — | — | |||||||||
Tax benefit (expense) | 3,687 | (1,015 | ) | (1,991 | ) | |||||||
Total other comprehensive income (loss) | $ | (14,750 | ) | $ | 4,065 | $ | 6,664 | |||||
The following table summarizes the components of net periodic benefit income and the weighted average assumptions for the Terra Nova Pension Plan. | ||||||||||||
Years Ended December 31, | ||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||
Components of net periodic benefit income: | ||||||||||||
Service cost | $ | — | $ | — | $ | 361 | ||||||
Interest cost | 7,572 | 6,533 | 6,815 | |||||||||
Expected return on plan assets | (12,812 | ) | (10,825 | ) | (9,788 | ) | ||||||
Amortization of prior service cost | 495 | — | — | |||||||||
Amortization of net actuarial pension loss | 1,589 | 1,934 | 2,590 | |||||||||
Net periodic benefit income | $ | (3,156 | ) | $ | (2,358 | ) | $ | (22 | ) | |||
Weighted average assumptions as of December 31: | ||||||||||||
Discount rate | 3.8 | % | 4.7 | % | 4.5 | % | ||||||
Expected return on plan assets | 6 | % | 6.6 | % | 6.6 | % | ||||||
Rate of compensation increase | 2.9 | % | 3.2 | % | 3.1 | % | ||||||
The projected benefit obligation and the net periodic benefit income are determined by independent actuaries using assumptions provided by the Company. In determining the discount rate, the Company uses the current yield on high-quality, fixed-income investments that have maturities corresponding to the anticipated timing of estimated defined benefit payments. The expected return on plan assets is estimated based upon the anticipated average yield on plan assets and reflects expected changes in the allocation of plan assets. Asset returns reflect management's belief that 4.5% is a reasonable rate of return to anticipate for fixed maturities given current market conditions and future expectations. In addition, the expected return on plan assets includes an assumption that equity securities will outperform fixed maturities by approximately 3.5% over the long term. The rate of compensation increase is based upon historical experience and management's expectation of future compensation. | ||||||||||||
Management's discount rate and rate of compensation increase assumptions at December 31, 2014 were used to calculate the Company's projected benefit obligation. Management's discount rate, expected return on plan assets and rate of compensation increase assumptions at December 31, 2013 were used to calculate the net periodic benefit income for 2014. The Company estimates that net periodic benefit income in 2015 will include an expense of $2.4 million resulting from the amortization of the net actuarial pension loss included as a component of accumulated other comprehensive income at December 31, 2014. | ||||||||||||
The fair values of each of the plan's assets are measured using quoted prices in active markets for identical assets, which represent Level 1 inputs within the fair value hierarchy established in FASB ASC 820-10. The following table summarizes the fair value of plan assets as of December 31, 2014 and 2013. | ||||||||||||
December 31, | ||||||||||||
(dollars in thousands) | 2014 | 2013 | ||||||||||
Plan assets: | ||||||||||||
Fixed maturity index funds | $ | 114,243 | $ | 70,997 | ||||||||
Equity security index funds | 87,148 | 118,431 | ||||||||||
Cash and cash equivalents | 8 | 9 | ||||||||||
Total | $ | 201,399 | $ | 189,437 | ||||||||
During 2014, the Company revised the target asset allocation and adjusted the investment balances to reduce risk while maintaining long-term return objectives. The Company's target asset allocation for the plan is 46% equity securities and 54% fixed maturities. At December 31, 2014, the actual allocation of assets in the plan was 43% equity securities and 57% fixed maturities. At December 31, 2013, the actual allocation of plan assets was 63% equity securities and 37% fixed maturities. | ||||||||||||
Investments are managed by a third party investment manager. Equity securities are invested in an index fund where 30% is indexed to United Kingdom equities and 70% is indexed to other markets. Assets are also invested in a mutual fund with a diversified global portfolio of equities, government bonds and investment grade debt. The primary objective of investing in these funds is to earn rates of return that are consistently in excess of inflation. Investing in equity securities, historically, has provided rates of return that are higher than investments in fixed maturities. Fixed maturity investments are allocated between five mutual funds; two index funds that include United Kingdom government securities, one index fund that includes securities issued by other foreign governments, one mutual fund that includes investment grade corporate bonds from the United Kingdom and foreign markets and one index fund that includes United Kingdom corporate securities. The assets in these funds are invested to meet the Company's obligations for current pensioners and those individuals nearing retirement. The plan does not invest in the Company's common shares. | ||||||||||||
At December 31, 2014 and 2013, the fair value of plan assets exceeded the plan's accumulated benefit obligation of $166.9 million and $146.0 million, respectively. The Company does not expect to have any required contributions or make any voluntary plan contributions in 2015. | ||||||||||||
The benefits expected to be paid in each year from 2015 to 2019 are $4.0 million, $4.1 million, $4.1 million, $4.2 million and $4.3 million, respectively. The aggregate benefits expected to be paid in the five years from 2020 to 2024 are $23.1 million. The expected benefits to be paid are based on the same assumptions used to measure the Company's projected benefit obligation at December 31, 2014 and include estimated future employee service. |
Markel_Corporation_Parent_Comp
Markel Corporation (Parent Company Only) Financial Information | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||||
Markel Corporation (Parent Company Only) Financial Information | Markel Corporation (Parent Company Only) Financial Information | |||||||||||
The following parent company only condensed financial information reflects the financial position, results of operations and cash flows of Markel Corporation. | ||||||||||||
CONDENSED BALANCE SHEETS | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(dollars in thousands) | ||||||||||||
ASSETS | ||||||||||||
Investments, available-for-sale, at estimated fair value: | ||||||||||||
Fixed maturities (amortized cost of $47,346 in 2014 and $66,154 in 2013) | $ | 48,807 | $ | 67,363 | ||||||||
Equity securities (cost of $193,864 in 2014 and $197,549 in 2013) | 434,714 | 392,123 | ||||||||||
Short-term investments (estimated fair value approximates cost) | 764,953 | 654,971 | ||||||||||
Total Investments | 1,248,474 | 1,114,457 | ||||||||||
Cash and cash equivalents | 243,702 | 207,352 | ||||||||||
Restricted cash and cash equivalents | 959 | 1,010 | ||||||||||
Receivables | 16,110 | 14,326 | ||||||||||
Investments in consolidated subsidiaries | 7,560,862 | 6,826,790 | ||||||||||
Notes receivable from subsidiaries | 212,631 | 168,611 | ||||||||||
Income taxes receivable | 10,951 | 5,320 | ||||||||||
Other assets | 93,434 | 102,193 | ||||||||||
Total Assets | $ | 9,387,123 | $ | 8,440,059 | ||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
Senior long-term debt | $ | 1,635,173 | $ | 1,633,873 | ||||||||
Net deferred tax liability | 74,534 | 40,443 | ||||||||||
Other liabilities | 82,598 | 92,166 | ||||||||||
Total Liabilities | 1,792,305 | 1,766,482 | ||||||||||
Total Shareholders' Equity | 7,594,818 | 6,673,577 | ||||||||||
Total Liabilities and Shareholders' Equity | $ | 9,387,123 | $ | 8,440,059 | ||||||||
CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(dollars in thousands) | ||||||||||||
REVENUES | ||||||||||||
Net investment income | $ | 5,354 | $ | 21,946 | $ | 30,619 | ||||||
Dividends on common stock of consolidated subsidiaries | 217,121 | 806,233 | 337,585 | |||||||||
Net realized investment gains: | ||||||||||||
Other-than-temporary impairment losses | (120 | ) | (15 | ) | (38 | ) | ||||||
Net realized investment gains, excluding other-than-temporary impairment losses | 3,873 | 67,232 | 14,926 | |||||||||
Net realized investment gains | 3,753 | 67,217 | 14,888 | |||||||||
Other | — | 1 | 3 | |||||||||
Total Revenues | 226,228 | 895,397 | 383,095 | |||||||||
EXPENSES | ||||||||||||
Interest expense | 94,097 | 92,743 | 87,391 | |||||||||
Other expenses | 2,685 | 2,617 | 1,166 | |||||||||
Total Expenses | 96,782 | 95,360 | 88,557 | |||||||||
Income Before Equity in Undistributed Earnings of Consolidated Subsidiaries and Income Taxes | 129,446 | 800,037 | 294,538 | |||||||||
Equity in undistributed earnings of consolidated subsidiaries | 163,341 | (520,323 | ) | (61,663 | ) | |||||||
Income tax benefit | (28,395 | ) | (1,307 | ) | (20,510 | ) | ||||||
Net Income to Shareholders | $ | 321,182 | $ | 281,021 | $ | 253,385 | ||||||
OTHER COMPREHENSIVE INCOME TO SHAREHOLDERS | ||||||||||||
Change in net unrealized gains on investments, net of taxes: | ||||||||||||
Net holding gains arising during the period | $ | 32,118 | $ | 66,623 | $ | 10,897 | ||||||
Consolidated subsidiaries' net holding gains arising during the period | 655,617 | 158,922 | 255,528 | |||||||||
Consolidated subsidiaries' change in unrealized other-than-temporary impairment losses on fixed maturities arising during the period | 173 | (141 | ) | (160 | ) | |||||||
Reclassification adjustments for net gains (losses) included in net income to shareholders | (1,874 | ) | (43,220 | ) | 11,847 | |||||||
Consolidated subsidiaries' reclassification adjustments for net gains (losses) included in net income to shareholders | (24,287 | ) | 2,390 | (35,898 | ) | |||||||
Change in net unrealized gains on investments, net of taxes | 661,747 | 184,574 | 242,214 | |||||||||
Change in foreign currency translation adjustments, net of taxes | 1,949 | (2,670 | ) | (242 | ) | |||||||
Consolidated subsidiaries' change in foreign currency translation adjustments, net of taxes | (34,194 | ) | (7,501 | ) | 1,781 | |||||||
Consolidated subsidiaries' change in net actuarial pension loss, net of taxes | (14,750 | ) | 4,065 | 6,664 | ||||||||
Total Other Comprehensive Income to Shareholders | 614,752 | 178,468 | 250,417 | |||||||||
Comprehensive Income to Shareholders | $ | 935,934 | $ | 459,489 | $ | 503,802 | ||||||
CONDENSED STATEMENTS OF CASH FLOWS | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(dollars in thousands) | ||||||||||||
OPERATING ACTIVITIES | ||||||||||||
Net income to shareholders | $ | 321,182 | $ | 281,021 | $ | 253,385 | ||||||
Adjustments to reconcile net income to shareholders to net cash provided by operating activities | (218,396 | ) | 186,574 | (153,773 | ) | |||||||
Net Cash Provided By Operating Activities | 102,786 | 467,595 | 99,612 | |||||||||
INVESTING ACTIVITIES | ||||||||||||
Proceeds from sales of fixed maturities and equity securities | 9,306 | 142,259 | 149,314 | |||||||||
Proceeds from maturities, calls and prepayments of fixed maturities | 15,710 | 2,819 | 64,340 | |||||||||
Cost of fixed maturities and equity securities purchased | (687 | ) | (23,412 | ) | (139,681 | ) | ||||||
Net change in short-term investments | (109,728 | ) | 10,251 | (374,801 | ) | |||||||
Securities received from subsidiaries as dividends or repayment of notes receivable | 89,996 | 249,996 | 260,088 | |||||||||
Decrease in notes receivable due from subsidiaries | 28,506 | 5,302 | 66,802 | |||||||||
Capital contributions to subsidiaries | (74,788 | ) | (67,878 | ) | (198,349 | ) | ||||||
Acquisitions | — | (1,017,988 | ) | (100,409 | ) | |||||||
Cost of equity method investments | — | (5,291 | ) | (38,250 | ) | |||||||
Change in restricted cash and cash equivalents | 51 | (348 | ) | (204 | ) | |||||||
Additions to property and equipment | (342 | ) | (3,653 | ) | (9,437 | ) | ||||||
Other | (2,150 | ) | 3,207 | (4,369 | ) | |||||||
Net Cash Used By Investing Activities | (44,126 | ) | (704,736 | ) | (324,956 | ) | ||||||
FINANCING ACTIVITIES | ||||||||||||
Additions to senior long-term debt | — | 491,235 | 347,207 | |||||||||
Repayment and retirement of senior long-term debt | — | (246,665 | ) | (157,359 | ) | |||||||
Repurchases of common stock | (26,053 | ) | (57,388 | ) | (16,873 | ) | ||||||
Issuance of common stock | 5,691 | 24,518 | 9,145 | |||||||||
Other | (1,948 | ) | (5,023 | ) | 436 | |||||||
Net Cash Provided (Used) By Financing Activities | (22,310 | ) | 206,677 | 182,556 | ||||||||
Increase (decrease) in cash and cash equivalents | 36,350 | (30,464 | ) | (42,788 | ) | |||||||
Cash and cash equivalents at beginning of year | 207,352 | 237,816 | 280,604 | |||||||||
CASH AND CASH EQUIVALENTS AT END OF YEAR | $ | 243,702 | $ | 207,352 | $ | 237,816 | ||||||
Quarterly_Financial_Informatio
Quarterly Financial Information | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Quarterly Financial Information | Quarterly Financial Information (unaudited) | |||||||||||||||
The following table presents the unaudited quarterly results of consolidated operations for 2014, 2013 and 2012. | ||||||||||||||||
Quarters Ended | ||||||||||||||||
(dollars in thousands, except per share amounts) | Mar. 31 | 30-Jun | Sept. 30 | Dec. 31 | ||||||||||||
2014 | ||||||||||||||||
Operating revenues | $ | 1,239,655 | $ | 1,258,971 | $ | 1,299,286 | $ | 1,335,755 | ||||||||
Net income | 87,501 | 41,141 | 76,824 | 118,222 | ||||||||||||
Net income to shareholders | 87,716 | 40,068 | 75,803 | 117,595 | ||||||||||||
Comprehensive income to shareholders | 230,273 | 250,588 | 36,502 | 418,571 | ||||||||||||
Net income per share: | ||||||||||||||||
Basic | $ | 6.28 | $ | 2.67 | $ | 5.33 | $ | 8.1 | ||||||||
Diluted | 6.25 | 2.66 | 5.3 | 8.05 | ||||||||||||
Common stock price ranges: | ||||||||||||||||
High | $ | 596.87 | $ | 655.75 | $ | 666 | $ | 707.36 | ||||||||
Low | 527.17 | 593.76 | 623.9 | 632.65 | ||||||||||||
2013 | ||||||||||||||||
Operating revenues | $ | 819,864 | $ | 1,031,769 | $ | 1,191,665 | $ | 1,279,785 | ||||||||
Net income | 89,263 | 28,676 | 66,967 | 98,939 | ||||||||||||
Net income to shareholders | 88,902 | 27,756 | 65,599 | 98,764 | ||||||||||||
Comprehensive income (loss) to shareholders | 257,684 | (149,054 | ) | 144,409 | 206,450 | |||||||||||
Net income per share: | ||||||||||||||||
Basic | $ | 9.53 | $ | 2.24 | $ | 4.69 | $ | 6.98 | ||||||||
Diluted | 9.5 | 2.24 | 4.67 | 6.95 | ||||||||||||
Common stock price ranges: | ||||||||||||||||
High | $ | 510.05 | $ | 546.94 | $ | 549.09 | $ | 582.59 | ||||||||
Low | 434.98 | 501.76 | 506.64 | 511.06 | ||||||||||||
2012 | ||||||||||||||||
Operating revenues | $ | 733,135 | $ | 693,247 | $ | 765,775 | $ | 807,955 | ||||||||
Net income | 57,713 | 90,768 | 51,674 | 58,093 | ||||||||||||
Net income to shareholders | 57,253 | 89,687 | 49,653 | 56,792 | ||||||||||||
Comprehensive income to shareholders | 205,945 | 73,416 | 147,454 | 76,987 | ||||||||||||
Net income per share: | ||||||||||||||||
Basic | $ | 5.94 | $ | 8.44 | $ | 5.33 | $ | 6.25 | ||||||||
Diluted | 5.92 | 8.42 | 5.32 | 6.23 | ||||||||||||
Common stock price ranges: | ||||||||||||||||
High | $ | 451.9 | $ | 453.5 | $ | 459.9 | $ | 502.2 | ||||||||
Low | 398.65 | 421 | 420 | 425.17 | ||||||||||||
Summary_Of_Significant_Account1
Summary Of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation. The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) and include the accounts of Markel Corporation and its subsidiaries (the Company). All significant intercompany balances and transactions have been eliminated in consolidation. The consolidated financial statements include the results of operations and cash flows of Alterra from the Acquisition Date to December 31, 2014 and not in any prior periods, except with respect to the Supplemental Pro Forma Information included in note 2. The Company consolidates the results of its Markel Ventures subsidiaries on a one-month lag. Certain prior year amounts have been reclassified to conform to the current presentation. |
Use of Estimates | Use of Estimates. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. Management periodically reviews its estimates and assumptions. Quarterly reviews include evaluating the adequacy of reserves for unpaid losses and loss adjustment expenses, life and annuity reinsurance benefit reserves, litigation contingencies, the reinsurance allowance for doubtful accounts and income tax liabilities, as well as analyzing the recoverability of deferred tax assets, estimating reinsurance premiums written and earned and evaluating the investment portfolio for other-than-temporary declines in estimated fair value. Estimates and assumptions for goodwill and intangible assets are reviewed in conjunction with an acquisition, and goodwill and indefinite-lived intangible assets are reassessed at least annually for impairment. Actual results may differ materially from the estimates and assumptions used in preparing the consolidated financial statements. |
Investments | Investments. Available-for-sale investments are recorded at estimated fair value. Unrealized gains and losses on investments, net of deferred income taxes, are included in accumulated other comprehensive income in shareholders' equity. The Company completes a detailed analysis each quarter to assess whether the decline in the fair value of any investment below its cost basis is deemed other-than-temporary. |
Premiums and discounts are amortized or accreted over the lives of the related fixed maturities as an adjustment to the yield using the effective interest method. Dividend and interest income are recognized when earned. Realized investment gains or losses are included in earnings. Realized gains or losses from sales of investments are derived using the first-in, first-out method. | |
Investments accounted for under the equity method of accounting are recorded at cost within other assets on the consolidated balance sheets and subsequently increased or decreased by the Company's proportionate share of the net income or loss of the investee. The Company records its proportionate share of net income or loss of the investee in net investment income. The Company records its proportionate share of other comprehensive income or loss of the investee as a component of other comprehensive income. Dividends or other equity distributions are recorded as a reduction of the investment. The Company reviews equity method investments for impairment when events or circumstances indicate that a decline in the fair value of the investment below its carrying value is other-than-temporary. | |
Cash and Cash Equivalents | Cash and Cash Equivalents. The Company considers all investments with original maturities of 90 days or less to be cash equivalents. The carrying value of the Company's cash and cash equivalents and restricted cash and cash equivalents approximates fair value. |
Receivables | Receivables. Receivables include amounts receivable from agents, brokers and insureds, which represent premiums that are both currently due and amounts not yet due on insurance and reinsurance policies. Premiums for insurance policies are generally due at inception. Premiums for reinsurance policies generally become due over the period of coverage based on the policy terms. The Company monitors the credit risk associated with premiums receivable, taking into consideration the fact that in certain instances credit risk may be reduced by the Company's right to offset loss obligations or unearned premiums against premiums receivable. Amounts deemed uncollectible are charged to net income in the period they are determined. Changes in the estimate of reinsurance premiums written will result in an adjustment to premiums receivable in the period they are determined. |
Reinsurance Recoverables | Reinsurance Recoverables. Amounts recoverable from reinsurers are estimated in a manner consistent with the claim liability associated with the reinsured business. Allowances are established for amounts deemed uncollectible and reinsurance recoverables are recorded net of these allowances. The Company evaluates the financial condition of its reinsurers and monitors concentration risk to minimize its exposure to significant losses from individual reinsurers. |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs. Costs directly related to the acquisition of insurance premiums are deferred and amortized over the related policy period, generally one year. Concurrent with the adoption of Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2010-26, Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts, effective January 1, 2012, the Company only defers acquisition costs incurred that are related directly to the successful acquisition of new or renewal insurance contracts, including commissions to agents and brokers and premium taxes. Commissions received related to reinsurance premiums ceded are netted against broker commissions in determining acquisition costs eligible for deferral. To the extent that future policy revenues on existing policies are not adequate to cover related costs and expenses, deferred policy acquisition costs are charged to earnings. The Company does not consider anticipated investment income in determining whether a premium deficiency exists. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets. Goodwill and intangible assets are recorded as a result of business acquisitions. Goodwill represents the excess of the amount paid to acquire a business over the net fair value of assets acquired and liabilities assumed at the date of acquisition. Indefinite-lived and other intangible assets are recorded at fair value as of the acquisition date. The determination of the fair value of certain assets acquired and liabilities assumed involves significant judgment and the use of valuation models and other estimates, which require assumptions that are inherently subjective. Goodwill and indefinite-lived intangible assets are tested for impairment at least annually. The Company completes an annual test during the fourth quarter of each year based upon the results of operations through September 30. Intangible assets with definite lives are amortized using the straight-line method over their estimated useful lives, generally five to 20 years, and are reviewed for impairment when events or circumstances indicate that their carrying value may not be recoverable. |
Property and Equipment | Property and Equipment. Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization of property and equipment are calculated using the straight-line method over the estimated useful lives (generally, the life of the lease for leasehold improvements, ten to 40 years for buildings, seven to 40 years for land improvements, three to ten years for furniture and equipment and three to 25 years for other property and equipment). |
Redeemable Noncontrolling Interests | Redeemable Noncontrolling Interests. The Company owns controlling interests in various companies through its Markel Ventures operations. In some cases, the Company has the option to acquire the remaining equity interests, and the remaining equity interests have the option to sell their interests to the Company, in the future. The redemption value of the remaining equity interests is generally based on the respective company's earnings in specified periods preceding the redemption date. The redeemable noncontrolling interests generally become redeemable through 2018. |
The Company recognizes changes in the redemption value that exceed the carrying value of redeemable noncontrolling interests to retained earnings as if the balance sheet date were also the redemption date. Changes in the redemption value also result in an adjustment to net income to shareholders in the calculation of basic and diluted net income per share. The adjustment recorded to retained earnings during 2014, 2013 and 2012 was an increase of $8.2 million, a decrease of $2.0 million, and an increase of $3.1 million, respectively. | |
Income Taxes | Income Taxes. The Company records deferred income taxes to reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their tax bases. Deferred tax assets are reduced by a valuation allowance when management believes it is more likely than not that some, or all, of the deferred tax assets will not be realized. The Company recognizes the tax benefit from an uncertain tax position taken or expected to be taken in income tax returns only if it is more likely than not that the tax position will be sustained upon examination by tax authorities, based on the technical merits of the position. Tax positions that meet the more likely than not threshold are then measured using a probability weighted approach, whereby the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement is recognized. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. |
Unpaid Losses and Loss Adjustment Expenses | Unpaid Losses and Loss Adjustment Expenses. Unpaid losses and loss adjustment expenses on our property and casualty insurance business are based on evaluations of reported claims and estimates for losses and loss adjustment expenses incurred but not reported. Estimates for losses and loss adjustment expenses incurred but not reported are based on reserve development studies, among other things. The Company does not discount reserves for losses and loss adjustment expenses to reflect estimated present value, except for reserves assumed in connection with an acquisition, which are recorded at fair value at the acquisition date. Recorded reserves are estimates, and the ultimate liability may be greater or less than the estimates. |
Life and Annuity Benefits | Life and Annuity Benefits. Prior to its acquisition by the Company, Alterra entered into long duration reinsurance contracts for life and annuity benefits which subject the Company to mortality, longevity and morbidity risks. The assumptions used to determine policy benefit reserves were determined at the Acquisition Date and are generally locked-in for the life of the contract unless an unlocking event occurs. To the extent existing policy reserves, together with the present value of future gross premiums and expected investment income earned thereon, are not adequate to cover the present value of future benefits, settlement and maintenance costs, the locked-in assumptions are revised to current best estimate assumptions and a charge to earnings for life and annuity benefits is recognized at that time. Because of the assumptions and estimates used in establishing reserves for life and annuity benefit obligations and the long-term nature of these reinsurance contracts, the ultimate liability may be greater or less than the estimates. |
Results attributable to the run-off of life and annuity reinsurance business are included in other revenues and other expenses in the Company's consolidated statements of income and comprehensive income and as part of the Company's Other Insurance (Discontinued Lines) segment. | |
Revenue Recognition | Revenue Recognition. |
Property and Casualty Premiums | |
Insurance premiums are generally earned on a pro rata basis over the policy period, typically one year. The cost of reinsurance ceded is initially recorded as prepaid reinsurance premiums and is amortized over the reinsurance contract period in proportion to the amount of insurance protection provided. Premiums ceded are netted against premiums written. | |
Assumed reinsurance premiums are recorded at the inception of each contract based upon contract terms and information received from cedents and brokers and are earned on a pro rata basis over the coverage period, or for multi-year contracts, in proportion with the underlying risk exposure to the extent there is variability in the exposure through the coverage period. Changes in reinsurance premium estimates are expected and may result in significant adjustments in any period. These estimates change over time as additional information regarding changes in underlying exposures is obtained. Any subsequent differences arising on such estimates are recorded as premiums written in the period they are determined. The Company uses the periodic method to account for assumed reinsurance from foreign reinsurers. The Company's foreign reinsurers provide sufficient information to record foreign assumed business in the same manner as the Company records assumed business from United States reinsurers. | |
Certain contracts that the Company writes provide for reinstatement of coverage. Reinstatement premiums are the premiums for the restoration of the insurance or reinsurance limit of a contract to its full amount after a loss occurrence by the insured or reinsured. The Company accrues for reinstatement premiums resulting from losses recorded. Such accruals are based upon contractual terms and management judgment is involved with respect to the amount of losses recorded. Changes in estimates of losses recorded on contracts with reinstatement premium features will result in changes in reinstatement premiums based on contractual terms. Reinstatement premiums are recognized at the time losses are recorded and are earned on a pro-rata basis over the coverage period. | |
Other Revenues | |
Other revenues primarily relate to the Company's Markel Ventures operations and consist of revenues from the sale of manufactured products and service revenues. Revenues from manufactured products are generally recognized at the time title transfers to the customer, which typically occurs at the point of shipment or delivery to the customer, depending on the terms of the sales arrangement. Revenues from services are generally recognized as the services are performed. Services provided pursuant to a contract are recognized either over the contract period or upon completion of the elements specified in the contract, depending on the terms of the contract. | |
Stock-based Compensation | Stock-based Compensation. Stock-based compensation expense is recognized as part of underwriting, acquisition and insurance expenses over the requisite service period. Stock-based compensation expense, net of taxes, was $18.7 million in 2014, $18.4 million in 2013 and $4.4 million in 2012. See note 12. |
Foreign Currency Translation | Foreign Currency Translation. The functional currencies of the Company's foreign operations are the currencies in which the majority of their business is transacted. Assets and liabilities of foreign operations are translated into the United States Dollar using the exchange rates in effect at the balance sheet date. Revenues and expenses of foreign operations are translated using the average exchange rate for the period. Gains or losses from translating the financial statements of foreign operations are included, net of taxes, in shareholders' equity as a component of accumulated other comprehensive income. Gains and losses arising from transactions denominated in a foreign currency, other than a functional currency, are included in net income. |
The Company manages its exposure to foreign currency risk primarily by matching assets, other than goodwill and intangible assets, and liabilities denominated in the same currency. To the extent that assets and liabilities in foreign currencies are not matched, the Company is exposed to foreign currency risk. For functional currencies, the related exchange rate fluctuations are reflected in other comprehensive income. The cumulative foreign currency translation adjustment, net of taxes, was a loss of $43.5 million and $11.2 million at December 31, 2014 and 2013, respectively. | |
Derivative Financial Instruments | Derivative Financial Instruments. Derivative instruments, including derivative instruments resulting from hedging activities, are measured at fair value and recognized as either assets or liabilities on the consolidated balance sheets. The changes in fair value of derivatives are recognized in earnings unless the derivative is designated as a hedge and qualifies for hedge accounting. |
The Company's foreign currency forward contracts are generally designated and qualify as hedges of a net investment in a foreign operation. The effective portion of the change in fair value resulting from these hedges is reported in currency translation adjustments as part of other comprehensive income. The ineffective portion of the change in fair value is recognized in earnings. | |
Comprehensive Income | Comprehensive Income. Comprehensive income represents all changes in equity that result from recognized transactions and other economic events during the period. Other comprehensive income refers to revenues, expenses, gains and losses that under U.S. GAAP are included in comprehensive income but excluded from net income, such as unrealized gains or losses on investments, foreign currency translation adjustments and changes in net actuarial pension loss. |
Net Income Per Share | Net Income Per Share. Basic net income per share is computed by dividing adjusted net income to shareholders by the weighted average number of common shares outstanding during the year. Diluted net income per share is computed by dividing adjusted net income to shareholders by the weighted average number of common shares and dilutive potential common shares outstanding during the year. See note 12(b). |
Recent Accounting Pronouncements | Recent Accounting Pronouncements. Effective January 1, 2014, the Company adopted FASB ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. ASU No. 2013-11 requires that a liability related to an unrecognized tax benefit be offset against a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. In that case, the liability associated with the unrecognized tax benefit is presented in the financial statements as a reduction to the related deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward. Otherwise, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The adoption of this guidance did not have an impact on the Company's financial position, results of operations or cash flows. |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which creates a new comprehensive revenue recognition standard that will serve as a single source of revenue guidance for all companies in all industries. The guidance applies to all companies that either enter into contracts with customers to transfer goods or services or enter into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards, such as insurance contracts. ASU No. 2014-09's core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under the current guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU No. 2014-09 becomes effective for the Company during the first quarter of 2017 and may be applied retrospectively or under a modified retrospective method where the cumulative effect is recognized at the date of initial application. Early application is not permitted. The Company is currently evaluating ASU No. 2014-09 to determine the potential impact that adopting this standard will have on its consolidated financial statements. |
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Acquisitions [Abstract] | ||||||||
Calculation Of Total Purchase Price | The Company's total purchase price for Alterra as of the Acquisition Date was calculated as follows: | |||||||
(in thousands, except per share amounts) | ||||||||
Shares of Alterra common stock outstanding as of the Acquisition Date | 96,433 | |||||||
Exchange ratio per the Merger Agreement | 0.04315 | |||||||
Markel share issuance to Alterra shareholders | 4,161 | |||||||
Shares of Alterra restricted stock outstanding as of the Acquisition Date | 2,239 | |||||||
Incentive award ratio per the Merger Agreement | 0.06252 | |||||||
Markel restricted stock issuance to Alterra restricted stock holders | 140 | |||||||
Multiplied by Markel's weighted average stock price on April 30, 2013 (1) | $ | 529.59 | ||||||
Markel share and restricted stock issuance consideration, net of taxes | $ | 2,267,648 | ||||||
Alterra common shares outstanding as of the Acquisition Date that received cash consideration | 96,433 | |||||||
Multiplied by cash price per share component per the Merger Agreement | $ | 10 | ||||||
Markel cash consideration | $ | 964,330 | ||||||
Fair value of Markel warrant issuance to Alterra warrant holders as of the Acquisition Date | $ | 73,685 | ||||||
Fair value of Markel stock option issuance to Alterra stock option holders as of the Acquisition Date, net of taxes | $ | 12,335 | ||||||
Fair value of partially vested Markel restricted stock unit issuance as of the Acquisition Date, net of taxes | $ | 6,867 | ||||||
Unrecognized compensation on unvested restricted stock and restricted stock units | $ | (20,572 | ) | |||||
Total acquisition consideration | $ | 3,304,293 | ||||||
(1) | The fair value of the shares issued by the Company was calculated as the weighted average price of the Company's stock on April 30, 2013, the day preceding the Acquisition Date. | |||||||
Summary Of Fair Value Of Assets Acquired And Liabilities Assumed | The following table summarizes the fair values of the assets acquired and liabilities assumed at the Acquisition Date. | |||||||
(dollars in thousands) | ||||||||
ASSETS | ||||||||
Investments | $ | 6,407,841 | ||||||
Cash and cash equivalents | 1,036,274 | |||||||
Restricted cash and cash equivalents | 414,497 | |||||||
Receivables | 866,388 | |||||||
Reinsurance recoverable on unpaid losses | 1,169,084 | |||||||
Reinsurance recoverable on paid losses | 80,672 | |||||||
Prepaid reinsurance premiums | 317,445 | |||||||
Other assets | 859,884 | |||||||
LIABILITIES | ||||||||
Unpaid losses and loss adjustment expenses | 4,719,461 | |||||||
Life and annuity benefits | 1,477,482 | |||||||
Unearned premiums | 1,075,610 | |||||||
Payables to insurance and reinsurance companies | 342,858 | |||||||
Senior long-term debt | 512,463 | |||||||
Other liabilities | 223,108 | |||||||
Net assets | 2,801,103 | |||||||
Goodwill | 295,690 | |||||||
Intangible assets | 207,500 | |||||||
Acquisition date fair value | $ | 3,304,293 | ||||||
Summary Of Intangible Assets Acquired | The following table summarizes the intangible assets recorded in connection with the acquisition. | |||||||
(dollars in thousands) | Amount | Economic | ||||||
Useful Life | ||||||||
Customer relationships | $ | 132,000 | 18 years | |||||
Broker relationships | 19,000 | 18 years | ||||||
Technology | 18,000 | Ten years | ||||||
Trade names | 1,000 | One year | ||||||
Lloyd's syndicate capacity | 12,000 | Indefinite | ||||||
Insurance licenses | 25,500 | Indefinite | ||||||
Intangible assets as of the Acquisition Date | $ | 207,500 | ||||||
Summary Of Transaction And Acquisition-Related Costs | The following table summarizes transaction and acquisition-related costs incurred by the Company in connection with the acquisition, all of which were included in underwriting, acquisition and insurance expenses in the consolidated statements of income and comprehensive income. | |||||||
(dollars in thousands) | Year Ended | |||||||
31-Dec-13 | ||||||||
Transaction costs | $ | 15,981 | ||||||
Acquisition-related costs: | ||||||||
Severance costs | 31,734 | |||||||
Stay bonuses | 14,804 | |||||||
Acceleration of Alterra long-term incentive compensation awards and restricted stock awards | 12,621 | |||||||
Total transaction and acquisition-related costs | $ | 75,140 | ||||||
Summary Of Results Of Operations | The following table summarizes the results of Alterra from the Acquisition Date through December 31, 2013 that have been included within the Company's consolidated statements of income and comprehensive income. | |||||||
(dollars in thousands) | Year Ended | |||||||
December 31, 2013 | ||||||||
Operating revenues | $ | 912,387 | ||||||
Net loss to shareholders | $ | (93,074 | ) | |||||
Unaudited Pro Forma Consolidated Financial Information | The following table presents unaudited pro forma consolidated information for the years ended December 31, 2013 and 2012 and assumes the Company's acquisition of Alterra occurred on January 1, 2012. The pro forma financial information is presented for informational purposes only and does not necessarily reflect the results that would have occurred had the acquisition taken place on January 1, 2012, nor is it necessarily indicative of future results. Significant adjustments used to determine pro forma results include amortization of intangible assets and amortization of fair value adjustments discussed in c) above, and the corresponding income tax effects. The Company also excluded certain charges from the pro forma results, including transaction costs incurred by the Company ($16.0 million) and Alterra ($23.0 million) totaling $39.0 million for the year ended December 31, 2013, severance costs attributable to the acquisition totaling $31.7 million for the year ended December 31, 2013, and stay bonuses of $14.8 million for the year ended December 31, 2013. The acceleration of compensation expense during the year ended December 31, 2013 related to Alterra's long-term incentive compensation awards and restricted stock awards was attributable to the acquisition; however, the incremental expense recognized during the period only represents a timing difference in the recognition of expense. Therefore, it was not excluded from the pro forma underwriting results. | |||||||
Unaudited | ||||||||
Consolidated Pro Forma | ||||||||
Years Ended December 31, | ||||||||
(in thousands, except per share amounts) | 2013 | 2012 | ||||||
Earned premiums | $ | 3,680,220 | $ | 3,509,834 | ||||
Operating revenues | 4,899,628 | 4,561,107 | ||||||
Net income to shareholders | 422,829 | 308,496 | ||||||
U.S. GAAP combined ratio (1) | 95 | % | 99 | % | ||||
Basic net income per share | $ | 30.33 | $ | 21.79 | ||||
Diluted net income per share | $ | 30.19 | $ | 21.71 | ||||
Weighted average common shares outstanding: | ||||||||
Basic | 14,007 | 14,014 | ||||||
Diluted | 14,069 | 14,065 | ||||||
(1) | The U.S. GAAP combined ratio is a measure of underwriting performance and represents the relationship of incurred losses, loss adjustment expenses and underwriting, acquisition and insurance expenses to earned premiums. |
Investments_Tables
Investments (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||
Available-For-Sale Investments | The following tables summarize the Company's available-for-sale investments. | |||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||
(dollars in thousands) | Amortized | Gross | Gross | Unrealized Other- | Estimated | |||||||||||||||||||
Cost | Unrealized | Unrealized | Than-Temporary | Fair | ||||||||||||||||||||
Holding | Holding | Impairment Losses | Value | |||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government agencies | $ | 662,462 | $ | 12,963 | $ | (2,163 | ) | $ | — | $ | 673,262 | |||||||||||||
Obligations of states, municipalities and political subdivisions | 4,075,748 | 245,158 | (3,359 | ) | — | 4,317,547 | ||||||||||||||||||
Foreign governments | 1,458,255 | 154,707 | (1,041 | ) | — | 1,611,921 | ||||||||||||||||||
Commercial mortgage-backed securities | 427,904 | 5,325 | (2,602 | ) | — | 430,627 | ||||||||||||||||||
Residential mortgage-backed securities | 954,263 | 34,324 | (3,482 | ) | (2,258 | ) | 982,847 | |||||||||||||||||
Asset-backed securities | 100,073 | 99 | (682 | ) | — | 99,490 | ||||||||||||||||||
Corporate bonds | 2,250,432 | 69,016 | (10,441 | ) | (1,819 | ) | 2,307,188 | |||||||||||||||||
Total fixed maturities | 9,929,137 | 521,592 | (23,770 | ) | (4,077 | ) | 10,422,882 | |||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
Insurance, banks and other financial institutions | 523,739 | 789,717 | (1,531 | ) | — | 1,311,925 | ||||||||||||||||||
Industrial, consumer and all other | 1,427,919 | 1,403,566 | (5,834 | ) | — | 2,825,651 | ||||||||||||||||||
Total equity securities | 1,951,658 | 2,193,283 | (7,365 | ) | — | 4,137,576 | ||||||||||||||||||
Short-term investments | 1,594,819 | 36 | (6 | ) | — | 1,594,849 | ||||||||||||||||||
Investments, available-for-sale | $ | 13,475,614 | $ | 2,714,911 | $ | (31,141 | ) | $ | (4,077 | ) | $ | 16,155,307 | ||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
(dollars in thousands) | Amortized | Gross | Gross | Unrealized Other- | Estimated | |||||||||||||||||||
Cost | Unrealized | Unrealized | Than-Temporary | Fair | ||||||||||||||||||||
Holding | Holding | Impairment Losses | Value | |||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government agencies | $ | 1,215,522 | $ | 9,051 | $ | (30,342 | ) | $ | — | $ | 1,194,231 | |||||||||||||
Obligations of states, municipalities and political subdivisions | 2,986,758 | 116,341 | (27,384 | ) | — | 3,075,715 | ||||||||||||||||||
Foreign governments | 1,484,818 | 30,647 | (54,411 | ) | — | 1,461,054 | ||||||||||||||||||
Commercial mortgage-backed securities | 379,555 | 62 | (11,796 | ) | — | 367,821 | ||||||||||||||||||
Residential mortgage-backed securities | 875,902 | 13,046 | (16,442 | ) | (2,258 | ) | 870,248 | |||||||||||||||||
Asset-backed securities | 189,646 | 257 | (1,614 | ) | — | 188,289 | ||||||||||||||||||
Corporate bonds | 2,996,940 | 54,777 | (61,650 | ) | (4,889 | ) | 2,985,178 | |||||||||||||||||
Total fixed maturities | 10,129,141 | 224,181 | (203,639 | ) | (7,147 | ) | 10,142,536 | |||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
Insurance, banks and other financial institutions | 422,975 | 592,112 | (4 | ) | — | 1,015,083 | ||||||||||||||||||
Industrial, consumer and all other | 1,143,578 | 1,094,251 | (1,114 | ) | — | 2,236,715 | ||||||||||||||||||
Total equity securities | 1,566,553 | 1,686,363 | (1,118 | ) | — | 3,251,798 | ||||||||||||||||||
Short-term investments | 1,452,270 | 18 | — | — | 1,452,288 | |||||||||||||||||||
Investments, available-for-sale | $ | 13,147,964 | $ | 1,910,562 | $ | (204,757 | ) | $ | (7,147 | ) | $ | 14,846,622 | ||||||||||||
Summary Of Gross Unrealized Investment Losses By Length Of Time That Securities Have Continuously Been In An Unrealized Loss Position | The following tables summarize gross unrealized investment losses by the length of time that securities have continuously been in an unrealized loss position. | |||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||
(dollars in thousands) | Estimated | Gross | Estimated | Gross | Estimated | Gross | ||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Holding and | Value | Holding and | Value | Holding and | |||||||||||||||||||
Other-Than- | Other-Than- | Other-Than- | ||||||||||||||||||||||
Temporary | Temporary | Temporary | ||||||||||||||||||||||
Impairment | Impairment | Impairment | ||||||||||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government agencies | $ | 108,250 | $ | (62 | ) | $ | 163,359 | $ | (2,101 | ) | $ | 271,609 | $ | (2,163 | ) | |||||||||
Obligations of states, municipalities and political subdivisions | 58,583 | (542 | ) | 92,441 | (2,817 | ) | 151,024 | (3,359 | ) | |||||||||||||||
Foreign governments | 18,856 | (386 | ) | 56,217 | (655 | ) | 75,073 | (1,041 | ) | |||||||||||||||
Commercial mortgage-backed securities | 45,931 | (210 | ) | 147,558 | (2,392 | ) | 193,489 | (2,602 | ) | |||||||||||||||
Residential mortgage-backed securities | 9,613 | (2,285 | ) | 207,374 | (3,455 | ) | 216,987 | (5,740 | ) | |||||||||||||||
Asset-backed securities | 30,448 | (20 | ) | 45,160 | (662 | ) | 75,608 | (682 | ) | |||||||||||||||
Corporate bonds | 141,176 | (2,263 | ) | 621,821 | (9,997 | ) | 762,997 | (12,260 | ) | |||||||||||||||
Total fixed maturities | 412,857 | (5,768 | ) | 1,333,930 | (22,079 | ) | 1,746,787 | (27,847 | ) | |||||||||||||||
Equity securities: | ||||||||||||||||||||||||
Insurance, banks and other financial institutions | 16,219 | (1,531 | ) | — | — | 16,219 | (1,531 | ) | ||||||||||||||||
Industrial, consumer and all other | 86,062 | (5,834 | ) | — | — | 86,062 | (5,834 | ) | ||||||||||||||||
Total equity securities | 102,281 | (7,365 | ) | — | — | 102,281 | (7,365 | ) | ||||||||||||||||
Short-term investments | 181,964 | (6 | ) | — | — | 181,964 | (6 | ) | ||||||||||||||||
Total | $ | 697,102 | $ | (13,139 | ) | $ | 1,333,930 | $ | (22,079 | ) | $ | 2,031,032 | $ | (35,218 | ) | |||||||||
December 31, 2013 | ||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||
(dollars in thousands) | Estimated | Gross | Estimated | Gross | Estimated | Gross | ||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Holding and | Value | Holding and | Value | Holding and | |||||||||||||||||||
Other-Than- | Other-Than- | Other-Than- | ||||||||||||||||||||||
Temporary | Temporary | Temporary | ||||||||||||||||||||||
Impairment | Impairment | Impairment | ||||||||||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government agencies | $ | 587,929 | $ | (30,342 | ) | $ | — | $ | — | $ | 587,929 | $ | (30,342 | ) | ||||||||||
Obligations of states, municipalities and political subdivisions | 513,608 | (27,238 | ) | 3,512 | (146 | ) | 517,120 | (27,384 | ) | |||||||||||||||
Foreign governments | 950,040 | (54,411 | ) | — | — | 950,040 | (54,411 | ) | ||||||||||||||||
Commercial mortgage-backed securities | 357,737 | (11,796 | ) | — | — | 357,737 | (11,796 | ) | ||||||||||||||||
Residential mortgage-backed securities | 437,675 | (18,700 | ) | — | — | 437,675 | (18,700 | ) | ||||||||||||||||
Asset-backed securities | 142,011 | (1,614 | ) | — | — | 142,011 | (1,614 | ) | ||||||||||||||||
Corporate bonds | 1,817,737 | (66,539 | ) | — | — | 1,817,737 | (66,539 | ) | ||||||||||||||||
Total fixed maturities | 4,806,737 | (210,640 | ) | 3,512 | (146 | ) | 4,810,249 | (210,786 | ) | |||||||||||||||
Equity securities: | ||||||||||||||||||||||||
Insurance, banks and other financial institutions | 144 | (4 | ) | — | — | 144 | (4 | ) | ||||||||||||||||
Industrial, consumer and all other | 20,943 | (714 | ) | 27,735 | (400 | ) | 48,678 | (1,114 | ) | |||||||||||||||
Total equity securities | 21,087 | (718 | ) | 27,735 | (400 | ) | 48,822 | (1,118 | ) | |||||||||||||||
Total | $ | 4,827,824 | $ | (211,358 | ) | $ | 31,247 | $ | (546 | ) | $ | 4,859,071 | $ | (211,904 | ) | |||||||||
Schedule Of Amortized Cost And Estimated Fair Value Of Fixed Maturities By Contractual Maturity | The amortized cost and estimated fair value of fixed maturities at December 31, 2014 are shown below by contractual maturity. | |||||||||||||||||||||||
(dollars in thousands) | Amortized | Estimated | ||||||||||||||||||||||
Cost | Fair Value | |||||||||||||||||||||||
Due in one year or less | $ | 747,997 | $ | 752,715 | ||||||||||||||||||||
Due after one year through five years | 2,007,798 | 2,059,192 | ||||||||||||||||||||||
Due after five years through ten years | 2,026,628 | 2,142,582 | ||||||||||||||||||||||
Due after ten years | 3,664,474 | 3,955,429 | ||||||||||||||||||||||
8,446,897 | 8,909,918 | |||||||||||||||||||||||
Commercial mortgage-backed securities | 427,904 | 430,627 | ||||||||||||||||||||||
Residential mortgage-backed securities | 954,263 | 982,847 | ||||||||||||||||||||||
Asset-backed securities | 100,073 | 99,490 | ||||||||||||||||||||||
Total fixed maturities | $ | 9,929,137 | $ | 10,422,882 | ||||||||||||||||||||
Components Of Net Investment Income | The following table presents the components of net investment income. | |||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Interest: | ||||||||||||||||||||||||
Municipal bonds (tax-exempt) | $ | 98,262 | $ | 82,308 | $ | 90,316 | ||||||||||||||||||
Municipal bonds (taxable) | 49,345 | 28,041 | 22,663 | |||||||||||||||||||||
Other taxable bonds | 152,789 | 134,377 | 107,270 | |||||||||||||||||||||
Short-term investments, including overnight deposits | 5,959 | 3,573 | 2,755 | |||||||||||||||||||||
Dividends on equity securities | 65,031 | 48,641 | 50,416 | |||||||||||||||||||||
Change in fair value of credit default swap | 2,230 | 10,460 | 16,641 | |||||||||||||||||||||
Income from equity method investments | 4,766 | 21,898 | 1,961 | |||||||||||||||||||||
Other | 108 | 355 | (41 | ) | ||||||||||||||||||||
378,490 | 329,653 | 291,981 | ||||||||||||||||||||||
Investment expenses | (15,260 | ) | (12,280 | ) | (9,874 | ) | ||||||||||||||||||
Net investment income | $ | 363,230 | $ | 317,373 | $ | 282,107 | ||||||||||||||||||
Summary Of Net Realized Investment Gains And The Change In Net Unrealized Gains On Investments | The following table presents net realized investment gains and the change in net unrealized gains on investments. | |||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Realized gains: | ||||||||||||||||||||||||
Sales of fixed maturities | $ | 8,417 | $ | 13,772 | $ | 18,337 | ||||||||||||||||||
Sales of equity securities | 51,356 | 73,592 | 29,578 | |||||||||||||||||||||
Other | 15,205 | 5,940 | 749 | |||||||||||||||||||||
Total realized gains | 74,978 | 93,304 | 48,664 | |||||||||||||||||||||
Realized losses: | ||||||||||||||||||||||||
Sales of fixed maturities | (18,136 | ) | (25,168 | ) | (563 | ) | ||||||||||||||||||
Sales of equity securities | (802 | ) | (278 | ) | (342 | ) | ||||||||||||||||||
Other-than-temporary impairments | (4,784 | ) | (4,706 | ) | (12,078 | ) | ||||||||||||||||||
Other | (5,256 | ) | — | (4,088 | ) | |||||||||||||||||||
Total realized losses | (28,978 | ) | (30,152 | ) | (17,071 | ) | ||||||||||||||||||
Net realized investment gains | $ | 46,000 | $ | 63,152 | $ | 31,593 | ||||||||||||||||||
Change in net unrealized gains on investments: | ||||||||||||||||||||||||
Fixed maturities | $ | 480,350 | $ | (403,610 | ) | $ | 51,783 | |||||||||||||||||
Equity securities | 500,673 | 665,599 | 302,013 | |||||||||||||||||||||
Short-term investments | 12 | 6 | 12 | |||||||||||||||||||||
Net increase | $ | 981,035 | $ | 261,995 | $ | 353,808 | ||||||||||||||||||
Components Of Restricted Assets | The following table presents the components of restricted assets. | |||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
(dollars in thousands) | 2014 | 2013 | ||||||||||||||||||||||
Restricted assets held in trust or on deposit to support underwriting activities | $ | 4,961,061 | $ | 5,161,871 | ||||||||||||||||||||
Investments and cash and cash equivalents pledged as security for letters of credit | 635,340 | 695,072 | ||||||||||||||||||||||
Investments and cash pledged as collateral for credit default swap | — | 33,430 | ||||||||||||||||||||||
Cash held in escrow for Abbey acquisition | — | 199,006 | ||||||||||||||||||||||
Total | $ | 5,596,401 | $ | 6,089,379 | ||||||||||||||||||||
Schedule Of Restricted Assets | Total restricted assets are included on the Company's consolidated balance sheets as follows. | |||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
(dollars in thousands) | 2014 | 2013 | ||||||||||||||||||||||
Investments, available-for-sale | $ | 5,040,413 | $ | 5,225,701 | ||||||||||||||||||||
Restricted cash and cash equivalents | 522,225 | 786,926 | ||||||||||||||||||||||
Other assets | 33,763 | 76,752 | ||||||||||||||||||||||
Total | $ | 5,596,401 | $ | 6,089,379 | ||||||||||||||||||||
Receivables_Tables
Receivables (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Receivables [Abstract] | ||||||||
Components Of Receivables | The following table presents the components of receivables. | |||||||
December 31, | ||||||||
(dollars in thousands) | 2014 | 2013 | ||||||
Amounts receivable from agents, brokers and insureds | $ | 1,031,519 | $ | 1,058,021 | ||||
Trade accounts receivable | 97,225 | 85,203 | ||||||
Employee stock loans receivable (see note 12(c)) | 15,044 | 12,822 | ||||||
Other | 8,601 | 5,420 | ||||||
1,152,389 | 1,161,466 | |||||||
Allowance for doubtful receivables | (17,172 | ) | (19,693 | ) | ||||
Receivables | $ | 1,135,217 | $ | 1,141,773 | ||||
Deferred_Policy_Acquisition_Co1
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Deferred Policy Acquisition Costs Disclosures [Abstract] | ||||||||||||
Amounts Of Policy Acquisition Costs Acquired, Deferred And Amortized | The following table presents the amounts of policy acquisition costs deferred and amortized. | |||||||||||
Years Ended December 31, | ||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||
Balance, beginning of year | $ | 260,967 | $ | 157,465 | $ | 194,674 | ||||||
Policy acquisition costs deferred | 754,303 | 577,620 | 390,360 | |||||||||
Amortization of policy acquisition costs | (654,916 | ) | (471,915 | ) | (428,109 | ) | ||||||
Foreign currency movements | (6,944 | ) | (2,203 | ) | 540 | |||||||
Deferred policy acquisition costs | $ | 353,410 | $ | 260,967 | $ | 157,465 | ||||||
Components Of Underwriting, Acquisition And Insurance Expenses | The following table presents the components of underwriting, acquisition and insurance expenses. | |||||||||||
Years Ended December 31, | ||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||
Transaction costs and other acquisition-related expenses (1) | $ | — | $ | 75,140 | $ | — | ||||||
Prospective adoption of FASB ASU No. 2010-26 (2) | — | — | 43,093 | |||||||||
Other amortization of policy acquisition costs | 654,916 | 471,915 | 385,016 | |||||||||
Other operating expenses | 805,966 | 765,257 | 501,363 | |||||||||
Underwriting, acquisition and insurance expenses | $ | 1,460,882 | $ | 1,312,312 | $ | 929,472 | ||||||
(1) | In connection with the acquisition of Alterra, the Company incurred transaction costs of $16.0 million for the year ended December 31, 2013, which primarily consist of due diligence, legal and investment banking costs. Additionally, the Company incurred severance costs of $31.7 million, stay bonuses of $14.8 million and other compensation costs totaling $12.6 million related to the acceleration of certain long-term incentive compensation awards and restricted stock awards that were granted by Alterra prior to the acquisition. | |||||||||||
(2) | Effective January 1, 2012, the Company prospectively adopted FASB ASU No. 2010-26, Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts. At December 31, 2011, deferred policy acquisition costs included $43.1 million of costs that no longer met the criteria for deferral as of January 1, 2012 and were recognized into income during 2012, consistent with policy terms. |
Property_And_Equipment_Tables
Property And Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Components Of Property And Equipment | The following table presents the components of property and equipment, which are included in other assets on the consolidated balance sheets. | |||||||
December 31, | ||||||||
(dollars in thousands) | 2014 | 2013 | ||||||
Land | $ | 56,848 | $ | 48,036 | ||||
Buildings | 78,786 | 59,307 | ||||||
Leasehold improvements | 98,098 | 68,363 | ||||||
Land improvements | 70,596 | 57,673 | ||||||
Furniture and equipment | 255,566 | 217,528 | ||||||
Other | 116,884 | 104,690 | ||||||
676,778 | 555,597 | |||||||
Accumulated depreciation and amortization | (255,388 | ) | (207,688 | ) | ||||
Property and equipment | $ | 421,390 | $ | 347,909 | ||||
Goodwill_And_Intangible_Assets1
Goodwill And Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||
Components Of Goodwill | The following table presents the components of goodwill. As described in note 19, effective January 1, 2014, the Company redefined its segments. As a result, goodwill was reallocated as of December 31, 2012 using a relative fair value allocation approach. The following table presents the components of goodwill by reportable segment. | |||||||||||||||||||
(dollars in thousands) | U.S. Insurance | International Insurance | Reinsurance | Other(1) | Total | |||||||||||||||
January 1, 2013 | $ | 172,824 | $ | 309,662 | $ | — | $ | 192,444 | $ | 674,930 | ||||||||||
Acquisitions (see note 2) | 107,755 | 65,190 | 122,745 | 1,185 | 296,875 | |||||||||||||||
Foreign currency movements and other adjustments | — | (2,088 | ) | — | (2,000 | ) | (4,088 | ) | ||||||||||||
December 31, 2013 | $ | 280,579 | $ | 372,764 | $ | 122,745 | $ | 191,629 | $ | 967,717 | ||||||||||
Acquisitions (see note 2) | — | 42,989 | — | 61,539 | 104,528 | |||||||||||||||
Impairment loss | — | — | — | (13,737 | ) | (13,737 | ) | |||||||||||||
Foreign currency movements and other adjustments | — | (7,570 | ) | — | (1,823 | ) | (9,393 | ) | ||||||||||||
December 31, 2014 (2) | $ | 280,579 | $ | 408,183 | $ | 122,745 | $ | 237,608 | $ | 1,049,115 | ||||||||||
(1) | Amounts included in Other above are related to the Company's non-insurance operations, which are not included in a reportable segment. | |||||||||||||||||||
(2) | Goodwill is net of accumulated impairment losses of $13.7 million included in Other. | |||||||||||||||||||
Components Of Intangible Assets | The following table presents the components of intangible assets with a net carrying amount. | |||||||||||||||||||
December 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
(dollars in thousands) | Gross | Accumulated | Gross | Accumulated | ||||||||||||||||
Carrying | Amortization | Carrying | Amortization | |||||||||||||||||
Amount | Amount | |||||||||||||||||||
Customer relationships | $ | 452,157 | $ | (69,483 | ) | $ | 298,886 | $ | (43,286 | ) | ||||||||||
Broker relationships | 175,681 | (34,827 | ) | 178,693 | (23,255 | ) | ||||||||||||||
Trade names | 94,795 | (17,673 | ) | 65,880 | (12,666 | ) | ||||||||||||||
Technology | 62,288 | (22,671 | ) | 56,429 | (16,222 | ) | ||||||||||||||
Insurance licenses | 39,985 | — | 40,185 | (133 | ) | |||||||||||||||
Lloyd's syndicate capacity | 12,000 | — | 12,000 | — | ||||||||||||||||
Other | 18,903 | (8,408 | ) | 14,197 | (5,625 | ) | ||||||||||||||
Total | $ | 855,809 | $ | (153,062 | ) | $ | 666,270 | $ | (101,187 | ) | ||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Components Of Income Before Income Taxes | Income before income taxes includes the following components. | |||||||||||
Years Ended December 31, | ||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||
Domestic operations | $ | 240,279 | $ | 325,133 | $ | 126,466 | ||||||
Foreign operations | 200,099 | 36,610 | 185,584 | |||||||||
Income before income taxes | $ | 440,378 | $ | 361,743 | $ | 312,050 | ||||||
Components Of Income Tax Expense | Income tax expense includes the following components. | |||||||||||
Years Ended December 31, | ||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||
Current: | ||||||||||||
Domestic | $ | 7,573 | $ | 50,683 | $ | 14,340 | ||||||
Foreign | 24,574 | 23,165 | 1,814 | |||||||||
Total current tax expense | 32,147 | 73,848 | 16,154 | |||||||||
Deferred: | ||||||||||||
Domestic | 43,673 | 23,906 | (3,734 | ) | ||||||||
Foreign | 40,870 | (19,856 | ) | 41,382 | ||||||||
Total deferred tax expense | 84,543 | 4,050 | 37,648 | |||||||||
Income tax expense | $ | 116,690 | $ | 77,898 | $ | 53,802 | ||||||
Reconciliations Of United States Corporate Income Tax Rate To Effective Tax Rate On Income Before Income Taxes | Reconciliations of the United States corporate income tax rate to the effective tax rate on income before income taxes are presented in the following table. | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
United States corporate tax rate | 35 | % | 35 | % | 35 | % | ||||||
Tax-exempt investment income | (9 | ) | (9 | ) | (12 | ) | ||||||
Tax credits | (1 | ) | — | — | ||||||||
Foreign operations | — | (4 | ) | (5 | ) | |||||||
Other | 1 | — | (1 | ) | ||||||||
Effective tax rate | 26 | % | 22 | % | 17 | % | ||||||
Components Of Domestic And Foreign Deferred Tax Assets And Liabilities | The following table presents the components of domestic and foreign deferred tax assets and liabilities. | |||||||||||
December 31, | ||||||||||||
(dollars in thousands) | 2014 | 2013 | ||||||||||
Assets: | ||||||||||||
Unpaid losses and loss adjustment expenses | $ | 239,588 | $ | 283,365 | ||||||||
Life and annuity benefits | 143,102 | 161,209 | ||||||||||
Unearned premiums recognized for income tax purposes | 108,960 | 76,862 | ||||||||||
Net operating loss carryforwards | 36,359 | 43,010 | ||||||||||
Tax credit carryforwards | 32,525 | 33,773 | ||||||||||
Other-than-temporary impairments not yet deductible for income tax purposes | 28,106 | 34,978 | ||||||||||
Differences between financial reporting and tax bases | 132,878 | 139,357 | ||||||||||
Total gross deferred tax assets | 721,518 | 772,554 | ||||||||||
Less valuation allowance | (4,801 | ) | — | |||||||||
Total gross deferred tax assets, net of allowance | 716,717 | 772,554 | ||||||||||
Liabilities: | ||||||||||||
Net unrealized gains on investments | 759,212 | 459,015 | ||||||||||
Amortization of goodwill and other intangible assets | 106,927 | 97,580 | ||||||||||
Deferred policy acquisition costs | 101,766 | 65,543 | ||||||||||
Differences between financial reporting and tax bases | 59,359 | 46,699 | ||||||||||
Total gross deferred tax liabilities | 1,027,264 | 668,837 | ||||||||||
Net deferred tax asset (liability) | $ | (310,547 | ) | $ | 103,717 | |||||||
Reconciliation Of Beginning And Ending Unrecognized Tax Benefits | The following table presents a reconciliation of unrecognized tax benefits. | |||||||||||
Years Ended December 31, | ||||||||||||
(dollars in thousands) | 2014 | 2013 | ||||||||||
Unrecognized tax benefits, beginning of year | $ | 18,219 | $ | 18,870 | ||||||||
Increases for tax positions taken in prior years | 3 | — | ||||||||||
Lapse of statute of limitations | (522 | ) | (651 | ) | ||||||||
Unrecognized tax benefits, end of year | $ | 17,700 | $ | 18,219 | ||||||||
Unpaid_Losses_And_Loss_Adjustm1
Unpaid Losses And Loss Adjustment Expenses (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred Claims [Abstract] | ||||||||||||
Reconciliation Of Consolidated Reserves For Losses And Loss Adjustment Expenses | The following table presents a reconciliation of consolidated beginning and ending reserves for losses and loss adjustment expenses. | |||||||||||
Years Ended December 31, | ||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||
Net reserves for losses and loss adjustment expenses, beginning of year | $ | 8,407,642 | $ | 4,592,652 | $ | 4,607,767 | ||||||
Foreign currency movements, commutations and other | (137,385 | ) | (780 | ) | 30,359 | |||||||
Adjusted net reserves for losses and loss adjustment expenses, beginning of year | 8,270,257 | 4,591,872 | 4,638,126 | |||||||||
Incurred losses and loss adjustment expenses: | ||||||||||||
Current year | 2,638,012 | 2,227,402 | 1,553,070 | |||||||||
Prior years | (435,545 | ) | (411,129 | ) | (399,002 | ) | ||||||
Total incurred losses and loss adjustment expenses | 2,202,467 | 1,816,273 | 1,154,068 | |||||||||
Payments: | ||||||||||||
Current year | 502,107 | 670,928 | 268,745 | |||||||||
Prior years | 1,436,851 | 906,302 | 931,955 | |||||||||
Total payments | 1,938,958 | 1,577,230 | 1,200,700 | |||||||||
Effect of foreign currency rate changes | (19,476 | ) | (7,915 | ) | 1,158 | |||||||
Net reserves for losses and loss adjustment expenses of acquired insurance companies | 21,193 | 3,584,642 | — | |||||||||
Net reserves for losses and loss adjustment expenses, end of year | 8,535,483 | 8,407,642 | 4,592,652 | |||||||||
Reinsurance recoverable on unpaid losses | 1,868,669 | 1,854,414 | 778,774 | |||||||||
Gross reserves for losses and loss adjustment expenses, end of year | $ | 10,404,152 | $ | 10,262,056 | $ | 5,371,426 | ||||||
Reconciliation Of Asbestos And Environmental Reserves For Losses And Loss Adjustment Expenses | The following table provides a reconciliation of beginning and ending A&E reserves for losses and loss adjustment expenses, which are a component of consolidated unpaid losses and loss adjustment expenses. Amounts included in the following table are presented before consideration of reinsurance allowances. | |||||||||||
Years Ended December 31, | ||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||
Net reserves for A&E losses and loss adjustment expenses, beginning of year | $ | 272,194 | $ | 260,791 | $ | 244,772 | ||||||
Commutations and other | 115 | (5,067 | ) | (897 | ) | |||||||
Adjusted net reserves for A&E losses and loss adjustment expenses, beginning of year | 272,309 | 255,724 | 243,875 | |||||||||
Incurred losses and loss adjustment expenses | 32,840 | 30,128 | 38,179 | |||||||||
Payments | (17,426 | ) | (13,658 | ) | (21,263 | ) | ||||||
Net reserves for A&E losses and loss adjustment expenses, end of year | 287,723 | 272,194 | 260,791 | |||||||||
Reinsurance recoverable on unpaid losses | 102,719 | 100,784 | 100,063 | |||||||||
Gross reserves for A&E losses and loss adjustment expenses, end of year | $ | 390,442 | $ | 372,978 | $ | 360,854 | ||||||
Life_And_Annuity_Benefits_Tabl
Life And Annuity Benefits (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Liability for Future Policy Benefits [Abstract] | ||||||||
Schedule Of Life And Annuity Benefits | The following table presents life and annuity benefits. | |||||||
December 31, | ||||||||
(dollars in thousands) | 2014 | 2013 | ||||||
Life | $ | 182,604 | $ | 190,765 | ||||
Annuities | 1,031,946 | 1,194,558 | ||||||
Accident and health | 91,268 | 101,251 | ||||||
Total | $ | 1,305,818 | $ | 1,486,574 | ||||
Senior_LongTerm_Debt_And_Other1
Senior Long-Term Debt And Other Debt (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Summary Of Senior Long-Term Debt And Other Debt | The following table summarizes the Company's senior long-term debt and other debt. | |||||||
December 31, | ||||||||
(dollars in thousands) | 2014 | 2013 | ||||||
7.20% unsecured senior notes, due April 14, 2017, interest payable semi-annually, net of unamortized premium of $3,526 in 2014 and $4,822 in 2013 | $ | 94,155 | $ | 95,451 | ||||
7.125% unsecured senior notes, due September 30, 2019, interest payable semi-annually, net of unamortized discount of $1,343 in 2014 and $1,626 in 2013 | 348,657 | 348,374 | ||||||
6.25% unsecured senior notes, due September 30, 2020, interest payable semi-annually, net of unamortized premium of $53,172 in 2014 and $61,273 in 2013 | 403,172 | 411,273 | ||||||
5.35% unsecured senior notes, due June 1, 2021, interest payable semi-annually, net of unamortized discount of $1,325 in 2014 and $1,531 in 2013 | 248,675 | 248,469 | ||||||
4.90% unsecured senior notes, due July 1, 2022, interest payable semi-annually, net of unamortized discount of $2,095 in 2014 and $2,374 in 2013 | 347,905 | 347,626 | ||||||
3.625% unsecured senior notes, due March 30, 2023, interest payable semi-annually, net of unamortized discount of $1,659 in 2014 and $1,860 in 2013 | 248,341 | 248,140 | ||||||
7.35% unsecured senior notes, due August 15, 2034, interest payable semi-annually, net of unamortized discount of $2,078 in 2014 and $2,185 in 2013 | 197,922 | 197,815 | ||||||
5.0% unsecured senior notes, due March 30, 2043, interest payable semi-annually, net of unamortized discount of $6,327 in 2014 and $6,551 in 2013 | 243,673 | 243,449 | ||||||
Other debt, at various interest rates ranging from 1.6% to 6.5% | 121,094 | 115,630 | ||||||
Senior long-term debt and other debt | $ | 2,253,594 | $ | 2,256,227 | ||||
Summary Of Future Principal Payments Due At Maturity On Senior Long-Term Debt And Other Debt | The following table summarizes the future principal payments due at maturity on senior long-term debt and other debt as of December 31, 2014. | |||||||
Years Ending December 31, | (dollars in | |||||||
thousands) | ||||||||
2015 | $ | 23,340 | ||||||
2016 | 21,850 | |||||||
2017 | 112,942 | |||||||
2018 | 2,348 | |||||||
2019 | 352,199 | |||||||
2020 and thereafter | 1,699,044 | |||||||
Total principal payments | $ | 2,211,723 | ||||||
Net unamortized premium | 41,871 | |||||||
Senior long-term debt and other debt | $ | 2,253,594 | ||||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Schedule Of Net Income Per Share | Net income per share was determined by dividing adjusted net income to shareholders by the applicable weighted average shares outstanding. Diluted net income per share is computed by dividing adjusted net income to shareholders by the weighted average number of common shares and dilutive potential common shares outstanding during the year. Average closing common stock market prices are used to calculate the dilutive effect attributable to restricted stock. | ||||||||||||
Years Ended December 31, | |||||||||||||
(in thousands, except per share amounts) | 2014 | 2013 | 2012 | ||||||||||
Net income to shareholders | $ | 321,182 | $ | 281,021 | $ | 253,385 | |||||||
Adjustment of redeemable noncontrolling interests | (8,186 | ) | 1,963 | (3,101 | ) | ||||||||
Adjusted net income to shareholders | $ | 312,996 | $ | 282,984 | $ | 250,284 | |||||||
Basic common shares outstanding | 13,984 | 12,538 | 9,640 | ||||||||||
Dilutive potential common shares from conversion of options | 11 | 12 | 6 | ||||||||||
Dilutive potential common shares from conversion of restricted stock | 62 | 36 | 20 | ||||||||||
Diluted shares outstanding | 14,057 | 12,586 | 9,666 | ||||||||||
Basic net income per share | $ | 22.38 | $ | 22.57 | $ | 25.96 | |||||||
Diluted net income per share | $ | 22.27 | $ | 22.48 | $ | 25.89 | |||||||
Summary Of Options | The following table summarizes additional information with respect to these options. | ||||||||||||
Number | Weighted | Weighted Average | Intrinsic Value | ||||||||||
of | Average | Remaining | (in millions) | ||||||||||
Shares | Exercise Price | Contractual Term | |||||||||||
(years) | |||||||||||||
Outstanding and exercisable, January 1, 2014 | 35,941 | $ | 412.39 | ||||||||||
Exercised | 13,636 | $ | 413.06 | ||||||||||
Outstanding and exercisable, December 31, 2014 | 22,305 | $ | 411.98 | 1.7 | $ | 6.1 | |||||||
2012 Compensation Plan [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Summary Of Nonvested Share-Based Awards | The following table summarizes nonvested share-based awards. | ||||||||||||
Number | Weighted Average | ||||||||||||
of Awards | Grant-Date | ||||||||||||
Fair Value | |||||||||||||
Nonvested awards at January 1, 2014 | 98,711 | $ | 449.93 | ||||||||||
Granted | 28,280 | 583.74 | |||||||||||
Vested | (8,479 | ) | 491.51 | ||||||||||
Forfeited | (380 | ) | 411 | ||||||||||
Nonvested awards at December 31, 2014 | 118,132 | $ | 479.11 | ||||||||||
Alterra Equity Award Plans [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Summary Of Nonvested Share-Based Awards | The following table summarizes activity related to these nonvested restricted stock awards. | ||||||||||||
Number | Weighted Average | ||||||||||||
of Awards | Grant-Date | ||||||||||||
Fair Value | |||||||||||||
Nonvested awards at January 1, 2014 | 68,411 | $ | 529.59 | ||||||||||
Vested | (34,119 | ) | 529.59 | ||||||||||
Forfeited | (377 | ) | 529.59 | ||||||||||
Nonvested awards at December 31, 2014 | 33,915 | $ | 529.59 | ||||||||||
Other_Comprehensive_Income_Tab
Other Comprehensive Income (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Other Comprehensive Income (Loss), Tax [Abstract] | ||||||||||||||||
Change In Accumulated Other Comprehensive Income By Component, Net Of Taxes And Noncontrolling Interests | The following table presents the change in accumulated other comprehensive income by component, net of taxes and noncontrolling interests. | |||||||||||||||
(dollars in thousands) | Unrealized | Foreign | Net Actuarial | Total | ||||||||||||
Holding Gains | Currency | Pension Loss | ||||||||||||||
on Available-for- | ||||||||||||||||
Sale Securities | ||||||||||||||||
31-Dec-11 | $ | 704,719 | $ | (2,614 | ) | $ | (41,185 | ) | $ | 660,920 | ||||||
Other comprehensive income before reclassifications | 266,265 | 1,539 | 4,670 | 272,474 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income | (24,051 | ) | — | 1,994 | (22,057 | ) | ||||||||||
Total other comprehensive income | 242,214 | 1,539 | 6,664 | 250,417 | ||||||||||||
31-Dec-12 | $ | 946,933 | $ | (1,075 | ) | $ | (34,521 | ) | $ | 911,337 | ||||||
Other comprehensive income (loss) before reclassifications | 225,404 | (10,171 | ) | 2,517 | 217,750 | |||||||||||
Amounts reclassified from accumulated other comprehensive income | (40,830 | ) | — | 1,548 | (39,282 | ) | ||||||||||
Total other comprehensive income (loss) | 184,574 | (10,171 | ) | 4,065 | 178,468 | |||||||||||
31-Dec-13 | $ | 1,131,507 | $ | (11,246 | ) | $ | (30,456 | ) | $ | 1,089,805 | ||||||
Other comprehensive income (loss) before reclassifications | 687,908 | (32,245 | ) | (16,516 | ) | 639,147 | ||||||||||
Amounts reclassified from accumulated other comprehensive income | (26,161 | ) | — | 1,766 | (24,395 | ) | ||||||||||
Total other comprehensive income (loss) | 661,747 | (32,245 | ) | (14,750 | ) | 614,752 | ||||||||||
31-Dec-14 | $ | 1,793,254 | $ | (43,491 | ) | $ | (45,206 | ) | $ | 1,704,557 | ||||||
Summary Of Tax Expense (Benefit) Of Other Comprehensive Income | The following table summarizes the tax expense (benefit) associated with each component of other comprehensive income. | |||||||||||||||
Years Ended December 31, | ||||||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||||||
Change in net unrealized gains on investments: | ||||||||||||||||
Net holding gains arising during the period | $ | 328,564 | $ | 93,837 | $ | 122,524 | ||||||||||
Change in unrealized other-than-temporary impairment losses on fixed maturities arising during the period | 614 | (34 | ) | (49 | ) | |||||||||||
Reclassification adjustments for net gains included in net income | (9,890 | ) | (16,382 | ) | (10,881 | ) | ||||||||||
Change in net unrealized gains on investments | 319,288 | 77,421 | 111,594 | |||||||||||||
Change in foreign currency translation adjustments | 1,918 | (1,619 | ) | (446 | ) | |||||||||||
Change in net actuarial pension loss | (3,687 | ) | 1,015 | 1,991 | ||||||||||||
Total | $ | 317,519 | $ | 76,817 | $ | 113,139 | ||||||||||
Reclassifications From Accumulated Other Comprehensive Income Into Income, By Component | The following table presents the details of amounts reclassified from accumulated other comprehensive income into income, by component. | |||||||||||||||
Years Ended December 31, | ||||||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||||||
Unrealized holding gains on available-for-sale securities: | ||||||||||||||||
Other-than-temporary impairment losses | $ | (4,784 | ) | $ | (4,706 | ) | $ | (12,078 | ) | |||||||
Net realized investment gains, excluding other-than-temporary impairment losses | 40,835 | 61,918 | 47,010 | |||||||||||||
Total before taxes | 36,051 | 57,212 | 34,932 | |||||||||||||
Income taxes | (9,890 | ) | (16,382 | ) | (10,881 | ) | ||||||||||
Reclassification of unrealized holding gains, net of taxes | $ | 26,161 | $ | 40,830 | $ | 24,051 | ||||||||||
Net actuarial pension loss: | ||||||||||||||||
Underwriting, acquisition and insurance expenses | $ | (2,084 | ) | $ | (1,934 | ) | $ | (2,590 | ) | |||||||
Income taxes | 318 | 386 | 596 | |||||||||||||
Reclassification of net actuarial pension loss, net of taxes | $ | (1,766 | ) | $ | (1,548 | ) | $ | (1,994 | ) |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Balances Of Assets And Liabilities Measured At Fair Value On A Recurring Basis | The following tables present the balances of assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy. | |||||||||||||||
December 31, 2014 | ||||||||||||||||
(dollars in thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | ||||||||||||||||
Investments available-for-sale: | ||||||||||||||||
Fixed maturities: | ||||||||||||||||
U.S. Treasury securities and obligations of U.S. government agencies | $ | — | $ | 673,262 | $ | — | $ | 673,262 | ||||||||
Obligations of states, municipalities and political subdivisions | — | 4,317,547 | — | 4,317,547 | ||||||||||||
Foreign governments | — | 1,611,921 | — | 1,611,921 | ||||||||||||
Commercial mortgage-backed securities | — | 430,627 | — | 430,627 | ||||||||||||
Residential mortgage-backed securities | — | 982,847 | — | 982,847 | ||||||||||||
Asset-backed securities | — | 99,490 | — | 99,490 | ||||||||||||
Corporate bonds | — | 2,307,188 | — | 2,307,188 | ||||||||||||
Total fixed maturities | — | 10,422,882 | — | 10,422,882 | ||||||||||||
Equity securities: | ||||||||||||||||
Insurance, banks and other financial institutions | 1,311,925 | — | — | 1,311,925 | ||||||||||||
Industrial, consumer and all other | 2,825,651 | — | — | 2,825,651 | ||||||||||||
Total equity securities | 4,137,576 | — | — | 4,137,576 | ||||||||||||
Short-term investments | 1,469,975 | 124,874 | — | 1,594,849 | ||||||||||||
Total investments available-for-sale | $ | 5,607,551 | $ | 10,547,756 | $ | — | $ | 16,155,307 | ||||||||
December 31, 2013 | ||||||||||||||||
(dollars in thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | ||||||||||||||||
Investments available-for-sale: | ||||||||||||||||
Fixed maturities: | ||||||||||||||||
U.S. Treasury securities and obligations of U.S. government agencies | $ | — | $ | 1,194,231 | $ | — | $ | 1,194,231 | ||||||||
Obligations of states, municipalities and political subdivisions | — | 3,075,715 | — | 3,075,715 | ||||||||||||
Foreign governments | — | 1,461,054 | — | 1,461,054 | ||||||||||||
Commercial mortgage-backed securities | — | 367,821 | — | 367,821 | ||||||||||||
Residential mortgage-backed securities | — | 870,248 | — | 870,248 | ||||||||||||
Asset-backed securities | — | 188,289 | — | 188,289 | ||||||||||||
Corporate bonds | — | 2,985,178 | — | 2,985,178 | ||||||||||||
Total fixed maturities | — | 10,142,536 | — | 10,142,536 | ||||||||||||
Equity securities: | ||||||||||||||||
Insurance, banks and other financial institutions | 1,015,083 | — | — | 1,015,083 | ||||||||||||
Industrial, consumer and all other | 2,236,715 | — | — | 2,236,715 | ||||||||||||
Total equity securities | 3,251,798 | — | — | 3,251,798 | ||||||||||||
Short-term investments | 1,312,561 | 139,727 | — | 1,452,288 | ||||||||||||
Total investments available-for-sale | $ | 4,564,359 | $ | 10,282,263 | $ | — | $ | 14,846,622 | ||||||||
Liabilities: | ||||||||||||||||
Derivative contracts | $ | — | $ | — | $ | 2,230 | $ | 2,230 | ||||||||
Reinsurance_Tables
Reinsurance (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Reinsurance Disclosures [Abstract] | ||||||||||||||||||||||||
Reinsurance Allowance For Doubtful Accounts | The following table summarizes the Company's reinsurance allowance for doubtful accounts. | |||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Reinsurance allowance, beginning of year | $ | 76,210 | $ | 71,148 | $ | 69,067 | ||||||||||||||||||
Additions | 10,316 | 13,621 | 24,179 | |||||||||||||||||||||
Deductions | (26,713 | ) | (8,559 | ) | (22,098 | ) | ||||||||||||||||||
Reinsurance allowance, end of year | $ | 59,813 | $ | 76,210 | $ | 71,148 | ||||||||||||||||||
Effect Of Reinsurance On Premiums Written And Earned | The following table summarizes the effect of reinsurance and retrocessional reinsurance on premiums written and earned. | |||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
(dollars in thousands) | Written | Earned | Written | Earned | Written | Earned | ||||||||||||||||||
Direct | $ | 3,478,273 | $ | 3,443,912 | $ | 3,143,957 | $ | 2,947,812 | $ | 2,115,353 | $ | 2,057,735 | ||||||||||||
Assumed | 1,327,240 | 1,298,371 | 776,269 | 1,016,853 | 398,328 | 376,186 | ||||||||||||||||||
Ceded | (888,498 | ) | (901,371 | ) | (683,543 | ) | (733,049 | ) | (299,555 | ) | (286,793 | ) | ||||||||||||
Net premiums | $ | 3,917,015 | $ | 3,840,912 | $ | 3,236,683 | $ | 3,231,616 | $ | 2,214,126 | $ | 2,147,128 | ||||||||||||
Commitments_And_Contingencies_
Commitments And Contingencies (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Minimum Annual Rental Commitments | The following table summarizes the Company's minimum annual rental commitments, excluding taxes, insurance and other operating costs payable directly by the Company, for noncancelable operating leases at December 31, 2014. | |||
Years Ending December 31, | (dollars in | |||
thousands) | ||||
2015 | $ | 28,434 | ||
2016 | 23,636 | |||
2017 | 28,124 | |||
2018 | 26,549 | |||
2019 | 25,169 | |||
2020 and thereafter | 151,000 | |||
Total | $ | 282,912 | ||
Statutory_Financial_Informatio1
Statutory Financial Information (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Statutory Financial Information [Abstract] | ||||||||||||
Actual Statutory Capital And Surplus | Statutory capital and surplus and statutory net income (loss) for the Company's wholly-owned insurance subsidiaries as of December 31, 2014 and 2013 and for the years ended December 31, 2014, 2013 and 2012, respectively, is summarized below. | |||||||||||
Statutory Capital and Surplus | ||||||||||||
(dollars in thousands) | 2014 | 2013 | ||||||||||
United States | $ | 2,619,001 | $ | 2,396,530 | ||||||||
United Kingdom | $ | 604,564 | $ | 510,426 | ||||||||
Bermuda | $ | 1,890,920 | $ | 1,503,004 | ||||||||
Other | $ | 177,738 | $ | 172,447 | ||||||||
Statutory Net Income (Loss) | ||||||||||||
Statutory Net Income (Loss) | ||||||||||||
Years Ended December 31, | ||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||
United States | $ | 212,909 | $ | 235,009 | $ | 127,179 | ||||||
United Kingdom | $ | 70,632 | $ | 109,983 | $ | 82,573 | ||||||
Bermuda | $ | 162,809 | $ | 249,772 | N/A | |||||||
Other | $ | 1,271 | $ | (12,617 | ) | N/A | ||||||
Segment_Reporting_Disclosures_
Segment Reporting Disclosures (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ||||||||||||||||||||||||
Summary Of Gross Written Premiums By Country | The following table summarizes the Company's gross written premiums by country. Gross written premiums are attributed to individual countries based upon location of risk. | |||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||
(dollars in thousands) | 2014 | % of | 2013 | % of | 2012 | % of | ||||||||||||||||||
Total | Total | Total | ||||||||||||||||||||||
United States | $ | 3,523,239 | 73 | % | $ | 2,934,868 | 75 | % | $ | 1,768,011 | 70 | % | ||||||||||||
United Kingdom | 441,669 | 9 | 245,143 | 6 | 147,891 | 6 | ||||||||||||||||||
Canada | 125,617 | 3 | 128,420 | 3 | 120,542 | 5 | ||||||||||||||||||
Other countries | 714,988 | 15 | 611,795 | 16 | 477,237 | 19 | ||||||||||||||||||
Total | $ | 4,805,513 | 100 | % | $ | 3,920,226 | 100 | % | $ | 2,513,681 | 100 | % | ||||||||||||
Company's Segment Disclosures | The following tables summarize the Company's segment disclosures. | |||||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||||||
(dollars in thousands) | U.S. Insurance | International Insurance | Reinsurance | Other | Investing | Consolidated | ||||||||||||||||||
Insurance | ||||||||||||||||||||||||
(Discontinued | ||||||||||||||||||||||||
Lines) | ||||||||||||||||||||||||
Gross premium volume | $ | 2,493,823 | $ | 1,200,403 | $ | 1,112,728 | $ | (1,441 | ) | $ | — | $ | 4,805,513 | |||||||||||
Net written premiums | 2,071,466 | 889,336 | 956,584 | (371 | ) | — | 3,917,015 | |||||||||||||||||
Earned premiums | 2,022,860 | 909,679 | 908,385 | (12 | ) | — | 3,840,912 | |||||||||||||||||
Losses and loss adjustment expenses: | ||||||||||||||||||||||||
Current accident year | (1,340,129 | ) | (660,409 | ) | (637,474 | ) | — | — | (2,638,012 | ) | ||||||||||||||
Prior accident years | 216,557 | 166,615 | 79,951 | (27,578 | ) | — | 435,545 | |||||||||||||||||
Amortization of policy acquisition costs | (403,233 | ) | (141,394 | ) | (110,289 | ) | — | — | (654,916 | ) | ||||||||||||||
Other operating expenses | (396,737 | ) | (207,175 | ) | (201,673 | ) | (381 | ) | — | (805,966 | ) | |||||||||||||
Underwriting profit (loss) | 99,318 | 67,316 | 38,900 | (27,971 | ) | — | 177,563 | |||||||||||||||||
Net investment income | — | — | — | — | 363,230 | 363,230 | ||||||||||||||||||
Net realized investment gains | — | — | — | — | 46,000 | 46,000 | ||||||||||||||||||
Other revenues (insurance) | 2,478 | 21,827 | 2,696 | 1,631 | — | 28,632 | ||||||||||||||||||
Other expenses (insurance) | (5,149 | ) | (18,706 | ) | (1,847 | ) | (37,132 | ) | — | (62,834 | ) | |||||||||||||
Segment profit (loss) | $ | 96,647 | $ | 70,437 | $ | 39,749 | $ | (63,472 | ) | $ | 409,230 | $ | 552,591 | |||||||||||
Other revenues (non-insurance) | 854,893 | |||||||||||||||||||||||
Other expenses (non-insurance) | (792,037 | ) | ||||||||||||||||||||||
Amortization of intangible assets | (57,627 | ) | ||||||||||||||||||||||
Interest expense | (117,442 | ) | ||||||||||||||||||||||
Income before income taxes | $ | 440,378 | ||||||||||||||||||||||
U.S. GAAP combined ratio (1) | 95 | % | 93 | % | 96 | % | NM | (2) | 95 | % | ||||||||||||||
(1) | The U.S. GAAP combined ratio is a measure of underwriting performance and represents the relationship of incurred losses, loss adjustment expenses and underwriting, acquisition and insurance expenses to earned premiums. | |||||||||||||||||||||||
(2) | NM — Ratio is not meaningful. | |||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||
(dollars in thousands) | U.S. Insurance | International Insurance | Reinsurance | Other | Investing | Consolidated | ||||||||||||||||||
Insurance | ||||||||||||||||||||||||
(Discontinued | ||||||||||||||||||||||||
Lines) | ||||||||||||||||||||||||
Gross premium volume | $ | 2,252,739 | $ | 1,101,099 | $ | 566,348 | $ | 40 | $ | — | $ | 3,920,226 | ||||||||||||
Net written premiums | 1,915,770 | 840,050 | 480,822 | 41 | — | 3,236,683 | ||||||||||||||||||
Earned premiums | 1,727,766 | 833,984 | 669,826 | 40 | — | 3,231,616 | ||||||||||||||||||
Losses and loss adjustment expenses: | ||||||||||||||||||||||||
Current accident year | (1,173,258 | ) | (588,759 | ) | (465,385 | ) | — | — | (2,227,402 | ) | ||||||||||||||
Prior accident years | 298,113 | 130,660 | 12,938 | (30,582 | ) | — | 411,129 | |||||||||||||||||
Transaction costs and other acquisition-related expenses (1) | (12,724 | ) | (13,366 | ) | (49,050 | ) | — | — | (75,140 | ) | ||||||||||||||
Amortization of policy acquisition costs | (287,795 | ) | (138,626 | ) | (45,494 | ) | — | — | (471,915 | ) | ||||||||||||||
Other operating expenses | (409,886 | ) | (171,666 | ) | (183,817 | ) | 112 | — | (765,257 | ) | ||||||||||||||
Underwriting profit (loss) | 142,216 | 52,227 | (60,982 | ) | (30,430 | ) | — | 103,031 | ||||||||||||||||
Net investment income | — | — | — | — | 317,373 | 317,373 | ||||||||||||||||||
Net realized investment gains | — | — | — | — | 63,152 | 63,152 | ||||||||||||||||||
Other revenues (insurance) | 13,648 | 4,284 | 5,432 | 1,130 | — | 24,494 | ||||||||||||||||||
Other expenses (insurance) | (17,087 | ) | (5,065 | ) | — | (28,126 | ) | — | (50,278 | ) | ||||||||||||||
Segment profit (loss) | $ | 138,777 | $ | 51,446 | $ | (55,550 | ) | $ | (57,426 | ) | $ | 380,525 | $ | 457,772 | ||||||||||
Other revenues (non-insurance) | 686,448 | |||||||||||||||||||||||
Other expenses (non-insurance) | (613,250 | ) | ||||||||||||||||||||||
Amortization of intangible assets | (55,223 | ) | ||||||||||||||||||||||
Interest expense | (114,004 | ) | ||||||||||||||||||||||
Income before income taxes | $ | 361,743 | ||||||||||||||||||||||
U.S. GAAP combined ratio (2) | 92 | % | 94 | % | 109 | % | NM | (3) | 97 | % | ||||||||||||||
(1) | In connection with the acquisition of Alterra, the Company incurred transaction costs of $16.0 million for the year ended December 31, 2013, which primarily consist of due diligence, legal and investment banking costs. Additionally, the Company incurred severance costs of $31.7 million, stay bonuses of $14.8 million and other compensation costs totaling $12.6 million related to the acceleration of certain long-term incentive compensation awards and restricted stock awards that were granted by Alterra prior to the acquisition. | |||||||||||||||||||||||
(2) | The U.S. GAAP combined ratio is a measure of underwriting performance and represents the relationship of incurred losses, loss adjustment expenses and underwriting, acquisition and insurance expenses to earned premiums. | |||||||||||||||||||||||
(3) | NM — Ratio is not meaningful. | |||||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||
(dollars in thousands) | U.S. Insurance | International Insurance | Reinsurance | Other | Investing | Consolidated | ||||||||||||||||||
Insurance | ||||||||||||||||||||||||
(Discontinued | ||||||||||||||||||||||||
Lines) | ||||||||||||||||||||||||
Gross premium volume | $ | 1,595,849 | $ | 788,092 | $ | 129,744 | $ | (4 | ) | $ | — | $ | 2,513,681 | |||||||||||
Net written premiums | 1,418,579 | 677,344 | 118,208 | (5 | ) | — | 2,214,126 | |||||||||||||||||
Earned premiums | 1,360,229 | 672,405 | 114,499 | (5 | ) | — | 2,147,128 | |||||||||||||||||
Losses and loss adjustment expenses: | ||||||||||||||||||||||||
Current accident year | (984,018 | ) | (492,177 | ) | (76,875 | ) | — | — | (1,553,070 | ) | ||||||||||||||
Prior accident years | 225,870 | 172,758 | 21,449 | (21,075 | ) | — | 399,002 | |||||||||||||||||
Prospective adoption of FASB ASU No. 2010-26 (1) | (31,033 | ) | (10,597 | ) | (1,463 | ) | — | — | (43,093 | ) | ||||||||||||||
Other amortization of policy acquisition costs | (243,466 | ) | (130,637 | ) | (10,913 | ) | — | — | (385,016 | ) | ||||||||||||||
Other operating expenses | (327,682 | ) | (153,545 | ) | (19,933 | ) | (203 | ) | — | (501,363 | ) | |||||||||||||
Underwriting profit (loss) | (100 | ) | 58,207 | 26,764 | (21,283 | ) | — | 63,588 | ||||||||||||||||
Net investment income | — | — | — | — | 282,107 | 282,107 | ||||||||||||||||||
Net realized investment gains | — | — | — | — | 31,593 | 31,593 | ||||||||||||||||||
Other revenues (insurance) | 44,968 | 4,964 | — | — | — | 49,932 | ||||||||||||||||||
Other expenses (insurance) | (41,425 | ) | (3,867 | ) | — | — | — | (45,292 | ) | |||||||||||||||
Segment profit (loss) | $ | 3,443 | $ | 59,304 | $ | 26,764 | $ | (21,283 | ) | $ | 313,700 | $ | 381,928 | |||||||||||
Other revenues (non-insurance) | 489,352 | |||||||||||||||||||||||
Other expenses (non-insurance) | (432,956 | ) | ||||||||||||||||||||||
Amortization of intangible assets | (33,512 | ) | ||||||||||||||||||||||
Interest expense | (92,762 | ) | ||||||||||||||||||||||
Income before income taxes | $ | 312,050 | ||||||||||||||||||||||
U.S. GAAP combined ratio(2) | 100 | % | 91 | % | 77 | % | NM | (3) | 97 | % | ||||||||||||||
(1) | Effective January 1, 2012, the Company prospectively adopted FASB ASU No. 2010-26, Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts. At December 31, 2011, deferred policy acquisition costs included $43.1 million of costs that no longer met the criteria for deferral as of January 1, 2012 and were recognized into income during 2012, consistent with policy terms. | |||||||||||||||||||||||
(2) | The U.S. GAAP combined ratio is a measure of underwriting performance and represents the relationship of incurred losses, loss adjustment expenses and underwriting, acquisition and insurance expenses to earned premiums. | |||||||||||||||||||||||
(3) | NM — Ratio is not meaningful. | |||||||||||||||||||||||
Summary Of Deferred Policy Acquisition Costs, Unearned Premiums And Unpaid Losses And Loss Adjustment Expenses | The following table summarizes deferred policy acquisition costs, unearned premiums and unpaid losses and loss adjustment expenses by segment. | |||||||||||||||||||||||
(dollars in thousands) | Deferred Policy | Unearned | Unpaid Losses and | |||||||||||||||||||||
Acquisition Costs | Premiums | Loss Adjustment Expenses | ||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||
U.S. Insurance | $ | 165,333 | $ | 1,110,910 | $ | 3,577,166 | ||||||||||||||||||
International Insurance | 47,618 | 491,708 | 3,353,417 | |||||||||||||||||||||
Reinsurance | 140,459 | 643,072 | 2,818,792 | |||||||||||||||||||||
Other Insurance (Discontinued Lines) | — | — | 654,777 | |||||||||||||||||||||
Total | $ | 353,410 | $ | 2,245,690 | $ | 10,404,152 | ||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
U.S. Insurance | $ | 151,015 | $ | 1,058,529 | $ | 3,572,667 | ||||||||||||||||||
International Insurance | 50,425 | 516,689 | 3,399,228 | |||||||||||||||||||||
Reinsurance | 59,527 | 551,897 | 2,811,362 | |||||||||||||||||||||
Other Insurance (Discontinued Lines) | — | — | 478,799 | |||||||||||||||||||||
Total | $ | 260,967 | $ | 2,127,115 | $ | 10,262,056 | ||||||||||||||||||
Summary Of Segment Earned Premiums | The following table summarizes segment earned premiums by major product grouping. | |||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||||||||||||||
U.S. Insurance: | ||||||||||||||||||||||||
General liability | $ | 491,645 | $ | 431,798 | $ | 354,003 | ||||||||||||||||||
Professional liability | 321,005 | 268,203 | 216,234 | |||||||||||||||||||||
Property | 266,019 | 190,530 | 141,568 | |||||||||||||||||||||
Personal lines | 299,442 | 185,935 | 86,217 | |||||||||||||||||||||
Programs | 244,216 | 205,004 | 135,037 | |||||||||||||||||||||
Workers compensation | 263,164 | 250,790 | 241,208 | |||||||||||||||||||||
Other | 137,369 | 195,506 | 185,962 | |||||||||||||||||||||
Total U.S. Insurance | 2,022,860 | 1,727,766 | 1,360,229 | |||||||||||||||||||||
International Insurance: | ||||||||||||||||||||||||
General liability | 146,178 | 128,171 | 102,875 | |||||||||||||||||||||
Professional liability | 285,300 | 252,816 | 174,590 | |||||||||||||||||||||
Property | 76,691 | 91,497 | 48,483 | |||||||||||||||||||||
Marine and energy | 287,263 | 287,745 | 288,605 | |||||||||||||||||||||
Other | 114,247 | 73,755 | 57,852 | |||||||||||||||||||||
Total International Insurance | 909,679 | 833,984 | 672,405 | |||||||||||||||||||||
Reinsurance: | ||||||||||||||||||||||||
Property | 270,461 | 227,394 | 71,172 | |||||||||||||||||||||
Casualty | 323,390 | 244,981 | 476 | |||||||||||||||||||||
Auto | 152,645 | 84,042 | 21,163 | |||||||||||||||||||||
Other | 161,889 | 113,409 | 21,688 | |||||||||||||||||||||
Total Reinsurance | 908,385 | 669,826 | 114,499 | |||||||||||||||||||||
Other Insurance (Discontinued Lines) | (12 | ) | 40 | (5 | ) | |||||||||||||||||||
Total earned premiums | $ | 3,840,912 | $ | 3,231,616 | $ | 2,147,128 | ||||||||||||||||||
Segment Assets To The Company's Consolidated Balance Sheets | The following table reconciles segment assets to the Company's consolidated balance sheets. | |||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Segment assets: | ||||||||||||||||||||||||
Investing | $ | 18,531,150 | $ | 17,550,332 | $ | 9,277,697 | ||||||||||||||||||
Underwriting | 5,422,445 | 5,468,731 | 2,387,305 | |||||||||||||||||||||
Total segment assets | 23,953,595 | 23,019,063 | 11,665,002 | |||||||||||||||||||||
Non-insurance operations | 1,246,762 | 936,448 | 891,586 | |||||||||||||||||||||
Total assets | $ | 25,200,357 | $ | 23,955,511 | $ | 12,556,588 | ||||||||||||||||||
Other_Revenues_And_Other_Expen1
Other Revenues And Other Expenses (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Other Income and Expenses [Abstract] | ||||||||||||||||||||||||
Summary Of Other Revenues And Other Expenses By Component | The following table summarizes the components of other revenues and other expenses. | |||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
(dollars in thousands) | Other | Other | Other | Other | Other | Other | ||||||||||||||||||
Revenues | Expenses | Revenues | Expenses | Revenues | Expenses | |||||||||||||||||||
Insurance: | ||||||||||||||||||||||||
Managing general agent operations | $ | 23,324 | $ | 22,527 | $ | 17,399 | $ | 20,382 | $ | 48,056 | $ | 43,069 | ||||||||||||
Life and annuity | 1,631 | 37,132 | 1,130 | 28,126 | — | — | ||||||||||||||||||
Other | 3,677 | 3,175 | 5,965 | 1,770 | 1,876 | 2,223 | ||||||||||||||||||
28,632 | 62,834 | 24,494 | 50,278 | 49,932 | 45,292 | |||||||||||||||||||
Non-Insurance: | ||||||||||||||||||||||||
Markel Ventures: Manufacturing | 575,353 | 513,668 | 495,138 | 437,712 | 366,886 | 328,484 | ||||||||||||||||||
Markel Ventures: Non-Manufacturing | 262,767 | 261,551 | 191,310 | 175,538 | 122,466 | 104,472 | ||||||||||||||||||
Other | 16,773 | 16,818 | — | — | — | — | ||||||||||||||||||
854,893 | 792,037 | 686,448 | 613,250 | 489,352 | 432,956 | |||||||||||||||||||
Total | $ | 883,525 | $ | 854,871 | $ | 710,942 | $ | 663,528 | $ | 539,284 | $ | 478,248 | ||||||||||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ||||||||||||
Funded Status Of The Terra Nova Pension Plan | The following table summarizes the funded status of the Terra Nova Pension Plan and the amounts recognized on the accompanying consolidated balance sheets of the Company. | |||||||||||
Years Ended December 31, | ||||||||||||
(dollars in thousands) | 2014 | 2013 | ||||||||||
Change in projected benefit obligation: | ||||||||||||
Projected benefit obligation at beginning of period | $ | 163,010 | $ | 151,327 | ||||||||
Interest cost | 7,572 | 6,533 | ||||||||||
Plan amendments | 495 | — | ||||||||||
Benefits paid | (4,424 | ) | (3,542 | ) | ||||||||
Actuarial loss | 29,609 | 5,459 | ||||||||||
Effect of foreign currency rate changes | (10,706 | ) | 3,233 | |||||||||
Projected benefit obligation at end of year | $ | 185,556 | $ | 163,010 | ||||||||
Change in plan assets: | ||||||||||||
Fair value of plan assets at beginning of period | $ | 189,437 | $ | 164,090 | ||||||||
Actual gain on plan assets | 22,395 | 19,430 | ||||||||||
Employer contributions | 5,610 | 5,338 | ||||||||||
Benefits paid | (4,424 | ) | (3,542 | ) | ||||||||
Effect of foreign currency rate changes | (11,619 | ) | 4,121 | |||||||||
Fair value of plan assets at end of year | $ | 201,399 | $ | 189,437 | ||||||||
Funded status of the plan | $ | 15,843 | $ | 26,427 | ||||||||
Net actuarial pension loss | 61,378 | 42,941 | ||||||||||
Total | $ | 77,221 | $ | 69,368 | ||||||||
Schedule of Defined Benefit Plan Amounts Recognized in Accumulated Other Comprehensive Income | The following table presents the changes in plan assets and projected benefit obligation recognized in accumulated other comprehensive income. | |||||||||||
Years Ended December 31, | ||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||
Net actuarial gain (loss) | $ | (20,521 | ) | $ | 3,146 | $ | 6,065 | |||||
Amortization of: | ||||||||||||
Net actuarial loss | 1,589 | 1,934 | 2,590 | |||||||||
Prior service costs | 495 | — | — | |||||||||
Tax benefit (expense) | 3,687 | (1,015 | ) | (1,991 | ) | |||||||
Total other comprehensive income (loss) | $ | (14,750 | ) | $ | 4,065 | $ | 6,664 | |||||
Schedule Of Net Periodic Benefit Income And Weighted Average Assumptions | The following table summarizes the components of net periodic benefit income and the weighted average assumptions for the Terra Nova Pension Plan. | |||||||||||
Years Ended December 31, | ||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||
Components of net periodic benefit income: | ||||||||||||
Service cost | $ | — | $ | — | $ | 361 | ||||||
Interest cost | 7,572 | 6,533 | 6,815 | |||||||||
Expected return on plan assets | (12,812 | ) | (10,825 | ) | (9,788 | ) | ||||||
Amortization of prior service cost | 495 | — | — | |||||||||
Amortization of net actuarial pension loss | 1,589 | 1,934 | 2,590 | |||||||||
Net periodic benefit income | $ | (3,156 | ) | $ | (2,358 | ) | $ | (22 | ) | |||
Weighted average assumptions as of December 31: | ||||||||||||
Discount rate | 3.8 | % | 4.7 | % | 4.5 | % | ||||||
Expected return on plan assets | 6 | % | 6.6 | % | 6.6 | % | ||||||
Rate of compensation increase | 2.9 | % | 3.2 | % | 3.1 | % | ||||||
Summary Of Fair Value Of Plan Assets | The following table summarizes the fair value of plan assets as of December 31, 2014 and 2013. | |||||||||||
December 31, | ||||||||||||
(dollars in thousands) | 2014 | 2013 | ||||||||||
Plan assets: | ||||||||||||
Fixed maturity index funds | $ | 114,243 | $ | 70,997 | ||||||||
Equity security index funds | 87,148 | 118,431 | ||||||||||
Cash and cash equivalents | 8 | 9 | ||||||||||
Total | $ | 201,399 | $ | 189,437 | ||||||||
Markel_Corporation_Parent_Comp1
Markel Corporation (Parent Company Only) Financial Information (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||||
Schedule Of Condensed Balance Sheets | CONDENSED BALANCE SHEETS | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(dollars in thousands) | ||||||||||||
ASSETS | ||||||||||||
Investments, available-for-sale, at estimated fair value: | ||||||||||||
Fixed maturities (amortized cost of $47,346 in 2014 and $66,154 in 2013) | $ | 48,807 | $ | 67,363 | ||||||||
Equity securities (cost of $193,864 in 2014 and $197,549 in 2013) | 434,714 | 392,123 | ||||||||||
Short-term investments (estimated fair value approximates cost) | 764,953 | 654,971 | ||||||||||
Total Investments | 1,248,474 | 1,114,457 | ||||||||||
Cash and cash equivalents | 243,702 | 207,352 | ||||||||||
Restricted cash and cash equivalents | 959 | 1,010 | ||||||||||
Receivables | 16,110 | 14,326 | ||||||||||
Investments in consolidated subsidiaries | 7,560,862 | 6,826,790 | ||||||||||
Notes receivable from subsidiaries | 212,631 | 168,611 | ||||||||||
Income taxes receivable | 10,951 | 5,320 | ||||||||||
Other assets | 93,434 | 102,193 | ||||||||||
Total Assets | $ | 9,387,123 | $ | 8,440,059 | ||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
Senior long-term debt | $ | 1,635,173 | $ | 1,633,873 | ||||||||
Net deferred tax liability | 74,534 | 40,443 | ||||||||||
Other liabilities | 82,598 | 92,166 | ||||||||||
Total Liabilities | 1,792,305 | 1,766,482 | ||||||||||
Total Shareholders' Equity | 7,594,818 | 6,673,577 | ||||||||||
Total Liabilities and Shareholders' Equity | $ | 9,387,123 | $ | 8,440,059 | ||||||||
Schedule Of Condensed Statements Of Income And Comprehensive Income | CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(dollars in thousands) | ||||||||||||
REVENUES | ||||||||||||
Net investment income | $ | 5,354 | $ | 21,946 | $ | 30,619 | ||||||
Dividends on common stock of consolidated subsidiaries | 217,121 | 806,233 | 337,585 | |||||||||
Net realized investment gains: | ||||||||||||
Other-than-temporary impairment losses | (120 | ) | (15 | ) | (38 | ) | ||||||
Net realized investment gains, excluding other-than-temporary impairment losses | 3,873 | 67,232 | 14,926 | |||||||||
Net realized investment gains | 3,753 | 67,217 | 14,888 | |||||||||
Other | — | 1 | 3 | |||||||||
Total Revenues | 226,228 | 895,397 | 383,095 | |||||||||
EXPENSES | ||||||||||||
Interest expense | 94,097 | 92,743 | 87,391 | |||||||||
Other expenses | 2,685 | 2,617 | 1,166 | |||||||||
Total Expenses | 96,782 | 95,360 | 88,557 | |||||||||
Income Before Equity in Undistributed Earnings of Consolidated Subsidiaries and Income Taxes | 129,446 | 800,037 | 294,538 | |||||||||
Equity in undistributed earnings of consolidated subsidiaries | 163,341 | (520,323 | ) | (61,663 | ) | |||||||
Income tax benefit | (28,395 | ) | (1,307 | ) | (20,510 | ) | ||||||
Net Income to Shareholders | $ | 321,182 | $ | 281,021 | $ | 253,385 | ||||||
OTHER COMPREHENSIVE INCOME TO SHAREHOLDERS | ||||||||||||
Change in net unrealized gains on investments, net of taxes: | ||||||||||||
Net holding gains arising during the period | $ | 32,118 | $ | 66,623 | $ | 10,897 | ||||||
Consolidated subsidiaries' net holding gains arising during the period | 655,617 | 158,922 | 255,528 | |||||||||
Consolidated subsidiaries' change in unrealized other-than-temporary impairment losses on fixed maturities arising during the period | 173 | (141 | ) | (160 | ) | |||||||
Reclassification adjustments for net gains (losses) included in net income to shareholders | (1,874 | ) | (43,220 | ) | 11,847 | |||||||
Consolidated subsidiaries' reclassification adjustments for net gains (losses) included in net income to shareholders | (24,287 | ) | 2,390 | (35,898 | ) | |||||||
Change in net unrealized gains on investments, net of taxes | 661,747 | 184,574 | 242,214 | |||||||||
Change in foreign currency translation adjustments, net of taxes | 1,949 | (2,670 | ) | (242 | ) | |||||||
Consolidated subsidiaries' change in foreign currency translation adjustments, net of taxes | (34,194 | ) | (7,501 | ) | 1,781 | |||||||
Consolidated subsidiaries' change in net actuarial pension loss, net of taxes | (14,750 | ) | 4,065 | 6,664 | ||||||||
Total Other Comprehensive Income to Shareholders | 614,752 | 178,468 | 250,417 | |||||||||
Comprehensive Income to Shareholders | $ | 935,934 | $ | 459,489 | $ | 503,802 | ||||||
Schedule Of Condensed Statements Of Cash Flows | CONDENSED STATEMENTS OF CASH FLOWS | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(dollars in thousands) | ||||||||||||
OPERATING ACTIVITIES | ||||||||||||
Net income to shareholders | $ | 321,182 | $ | 281,021 | $ | 253,385 | ||||||
Adjustments to reconcile net income to shareholders to net cash provided by operating activities | (218,396 | ) | 186,574 | (153,773 | ) | |||||||
Net Cash Provided By Operating Activities | 102,786 | 467,595 | 99,612 | |||||||||
INVESTING ACTIVITIES | ||||||||||||
Proceeds from sales of fixed maturities and equity securities | 9,306 | 142,259 | 149,314 | |||||||||
Proceeds from maturities, calls and prepayments of fixed maturities | 15,710 | 2,819 | 64,340 | |||||||||
Cost of fixed maturities and equity securities purchased | (687 | ) | (23,412 | ) | (139,681 | ) | ||||||
Net change in short-term investments | (109,728 | ) | 10,251 | (374,801 | ) | |||||||
Securities received from subsidiaries as dividends or repayment of notes receivable | 89,996 | 249,996 | 260,088 | |||||||||
Decrease in notes receivable due from subsidiaries | 28,506 | 5,302 | 66,802 | |||||||||
Capital contributions to subsidiaries | (74,788 | ) | (67,878 | ) | (198,349 | ) | ||||||
Acquisitions | — | (1,017,988 | ) | (100,409 | ) | |||||||
Cost of equity method investments | — | (5,291 | ) | (38,250 | ) | |||||||
Change in restricted cash and cash equivalents | 51 | (348 | ) | (204 | ) | |||||||
Additions to property and equipment | (342 | ) | (3,653 | ) | (9,437 | ) | ||||||
Other | (2,150 | ) | 3,207 | (4,369 | ) | |||||||
Net Cash Used By Investing Activities | (44,126 | ) | (704,736 | ) | (324,956 | ) | ||||||
FINANCING ACTIVITIES | ||||||||||||
Additions to senior long-term debt | — | 491,235 | 347,207 | |||||||||
Repayment and retirement of senior long-term debt | — | (246,665 | ) | (157,359 | ) | |||||||
Repurchases of common stock | (26,053 | ) | (57,388 | ) | (16,873 | ) | ||||||
Issuance of common stock | 5,691 | 24,518 | 9,145 | |||||||||
Other | (1,948 | ) | (5,023 | ) | 436 | |||||||
Net Cash Provided (Used) By Financing Activities | (22,310 | ) | 206,677 | 182,556 | ||||||||
Increase (decrease) in cash and cash equivalents | 36,350 | (30,464 | ) | (42,788 | ) | |||||||
Cash and cash equivalents at beginning of year | 207,352 | 237,816 | 280,604 | |||||||||
CASH AND CASH EQUIVALENTS AT END OF YEAR | $ | 243,702 | $ | 207,352 | $ | 237,816 | ||||||
Quarterly_Financial_Informatio1
Quarterly Financial Information (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Quarterly Results Of Consolidated Operations | The following table presents the unaudited quarterly results of consolidated operations for 2014, 2013 and 2012. | |||||||||||||||
Quarters Ended | ||||||||||||||||
(dollars in thousands, except per share amounts) | Mar. 31 | 30-Jun | Sept. 30 | Dec. 31 | ||||||||||||
2014 | ||||||||||||||||
Operating revenues | $ | 1,239,655 | $ | 1,258,971 | $ | 1,299,286 | $ | 1,335,755 | ||||||||
Net income | 87,501 | 41,141 | 76,824 | 118,222 | ||||||||||||
Net income to shareholders | 87,716 | 40,068 | 75,803 | 117,595 | ||||||||||||
Comprehensive income to shareholders | 230,273 | 250,588 | 36,502 | 418,571 | ||||||||||||
Net income per share: | ||||||||||||||||
Basic | $ | 6.28 | $ | 2.67 | $ | 5.33 | $ | 8.1 | ||||||||
Diluted | 6.25 | 2.66 | 5.3 | 8.05 | ||||||||||||
Common stock price ranges: | ||||||||||||||||
High | $ | 596.87 | $ | 655.75 | $ | 666 | $ | 707.36 | ||||||||
Low | 527.17 | 593.76 | 623.9 | 632.65 | ||||||||||||
2013 | ||||||||||||||||
Operating revenues | $ | 819,864 | $ | 1,031,769 | $ | 1,191,665 | $ | 1,279,785 | ||||||||
Net income | 89,263 | 28,676 | 66,967 | 98,939 | ||||||||||||
Net income to shareholders | 88,902 | 27,756 | 65,599 | 98,764 | ||||||||||||
Comprehensive income (loss) to shareholders | 257,684 | (149,054 | ) | 144,409 | 206,450 | |||||||||||
Net income per share: | ||||||||||||||||
Basic | $ | 9.53 | $ | 2.24 | $ | 4.69 | $ | 6.98 | ||||||||
Diluted | 9.5 | 2.24 | 4.67 | 6.95 | ||||||||||||
Common stock price ranges: | ||||||||||||||||
High | $ | 510.05 | $ | 546.94 | $ | 549.09 | $ | 582.59 | ||||||||
Low | 434.98 | 501.76 | 506.64 | 511.06 | ||||||||||||
2012 | ||||||||||||||||
Operating revenues | $ | 733,135 | $ | 693,247 | $ | 765,775 | $ | 807,955 | ||||||||
Net income | 57,713 | 90,768 | 51,674 | 58,093 | ||||||||||||
Net income to shareholders | 57,253 | 89,687 | 49,653 | 56,792 | ||||||||||||
Comprehensive income to shareholders | 205,945 | 73,416 | 147,454 | 76,987 | ||||||||||||
Net income per share: | ||||||||||||||||
Basic | $ | 5.94 | $ | 8.44 | $ | 5.33 | $ | 6.25 | ||||||||
Diluted | 5.92 | 8.42 | 5.32 | 6.23 | ||||||||||||
Common stock price ranges: | ||||||||||||||||
High | $ | 451.9 | $ | 453.5 | $ | 459.9 | $ | 502.2 | ||||||||
Low | 398.65 | 421 | 420 | 425.17 | ||||||||||||
Summary_Of_Significant_Account2
Summary Of Significant Accounting Policies (Narrative) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 1-May-13 | |
Summary of Significant Accounting Policies [Line Items] | ||||
Deferred policy acquisition cost amortization period | 1 year | |||
Adjustment of redeemable noncontrolling interests | $8,200,000 | ($2,000,000) | $3,100,000 | |
Tax benefit greater than 50% | 50.00% | |||
Insurance premiums revenue recognition period | 1 year | |||
Stock-based compensation expense, net of taxes | 18,700,000 | 18,400,000 | 4,400,000 | |
Cumulative foreign currency translation loss | ($43,500,000) | ($11,200,000) | ||
Alterra Capital Holdings [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Percentage of issued and outstanding common stock acquired | 100.00% |
Recovered_Sheet1
Summary of Significant Accounting Policies (Cash and Cash Equivalents) (Details) (Maximum [Member], Cash And Cash Equivalents [Member]) | 12 Months Ended |
Dec. 31, 2014 | |
Maximum [Member] | Cash And Cash Equivalents [Member] | |
Cash and Cash Equivalents [Line Items] | |
Investment maturity period | 90 days |
Recovered_Sheet2
Summary of Significant Accounting Policies (Goodwill and Intangible Assets) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, estimated useful life | 5 years |
Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, estimated useful life | 20 years |
Recovered_Sheet3
Summary of Significant Accounting Policies (Property and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Building [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 10 years |
Building [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 40 years |
Land Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 7 years |
Land Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 40 years |
Furniture and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 3 years |
Furniture and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 10 years |
Other Property And Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 3 years |
Other Property And Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 25 years |
Acquisitions_Narrative_Details
Acquisitions (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 01, 2013 | 1-May-13 | Jan. 17, 2014 | Jul. 23, 2014 | ||
Schedule of Asset and Business Acquisitions, by Acquisition [Line Items] | ||||||||
Definite-lived intangible assets, weighted-average amortization period | 16 years 9 months 22 days | |||||||
United States corporate tax rate | 35.00% | 35.00% | 35.00% | |||||
Provision for United States income taxes on earnings of the Company's foreign subsidiaries | $0 | |||||||
Acceleration of Alterra long-term incentive compensation awards and restricted stock awards | 12,621,000 | [1] | ||||||
Transaction costs | 15,981,000 | [1] | ||||||
Pro forma transaction costs, total | 39,000,000 | |||||||
Other acquisition related costs, severance costs | 31,734,000 | [1] | ||||||
Other acquisition related costs, stay bonuses | 14,804,000 | [1] | ||||||
Customer Relationships [Member] | ||||||||
Schedule of Asset and Business Acquisitions, by Acquisition [Line Items] | ||||||||
Definite-lived intangible assets, weighted-average amortization period | 18 years 7 months 9 days | |||||||
Trade Names [Member] | ||||||||
Schedule of Asset and Business Acquisitions, by Acquisition [Line Items] | ||||||||
Definite-lived intangible assets, weighted-average amortization period | 12 years 6 months 2 days | |||||||
Essentia Insurance Company [Member] | ||||||||
Schedule of Asset and Business Acquisitions, by Acquisition [Line Items] | ||||||||
Percentage of outstanding shares acquired | 100.00% | |||||||
Other intangible assets recognized, asset acquisition | 35,400,000 | |||||||
Percentage of outstanding shares of Essentia purchased by Hagerty due to the exercise of options | 9.90% | |||||||
Company's ownership interest in Essentia | 90.10% | |||||||
Essentia Insurance Company [Member] | Customer Relationships [Member] | ||||||||
Schedule of Asset and Business Acquisitions, by Acquisition [Line Items] | ||||||||
Definite-lived intangible assets, weighted-average amortization period | 6 years | |||||||
Other intangible assets recognized, asset acquisition | 25,000,000 | |||||||
Alterra Capital Holdings [Member] | ||||||||
Schedule of Asset and Business Acquisitions, by Acquisition [Line Items] | ||||||||
Percentage acquired | 100.00% | |||||||
Number of Markel Corporation shares issued for each outstanding share of Alterra common stock | 0.04315 | |||||||
Cash paid for each oustanding share of Alterra common stock | $10 | |||||||
Total purchase consideration | 3,304,293,000 | |||||||
Cash consideration | 964,330,000 | |||||||
Stock consideration, shares | 4,300,000 | |||||||
Options issued, taxes | 1,900,000 | |||||||
Restricted stock issued, taxes | 10,100,000 | |||||||
Restricted stock units issued, taxes | 700,000 | |||||||
Goodwill recognized | 295,690,000 | |||||||
Goodwill, tax deductible | 0 | |||||||
Indefinite-lived intangible assets | 37,500,000 | |||||||
Finite-lived intangible assets | 170,000,000 | |||||||
Definite-lived intangible assets, weighted-average amortization period | 17 years | |||||||
Investments acquired, adjustment to fair value | 223,100,000 | |||||||
Investments acquired, incremental premium to be amortized to net investment income | 495,500,000 | |||||||
Investments, unamortized incremental premium | 281,100,000 | 398,100,000 | ||||||
Investments, amortization expense on incremental premium | 59,300,000 | 58,300,000 | ||||||
Unearned premiums acquired, adjustment to fair value | -176,300,000 | |||||||
Unearned premiums, weighted average amortization period, years | 1 year | |||||||
Unpaid losses and loss adjustment expenses acquired, adjustment to fair value | 120,800,000 | |||||||
Unpaid losses and loss adjustment expenses acquired pre acquisition adjustment, unamortized balance | 26,500,000 | |||||||
Unpaid losses and loss adjustment expenses, weighted average amortization period, years | 5 years | |||||||
Unpaid losses and loss adjustment expenses, unamortized fair value adjustment | 114,600,000 | 136,500,000 | ||||||
Life and annuity benefits acquired, adjustment to fair value | 329,600,000 | |||||||
Senior long-term debt acquired, adjustment to fair value | 71,900,000 | |||||||
Senior long-term debt acquired, unamortized premium | 56,700,000 | 66,100,000 | ||||||
United States corporate tax rate | 35.00% | |||||||
Net deferred tax assets recognized | 310,100,000 | |||||||
Deferred tax assets recognized, accrued losses and loss adjustment expenses and life and annuity benefits | 343,900,000 | |||||||
Deferred tax liabilities recognized, intangible assets | 64,600,000 | |||||||
Provision for United States income taxes on earnings of the Company's foreign subsidiaries | 0 | |||||||
Pro forma transaction costs, Alterra | 23,000,000 | |||||||
Alterra Capital Holdings [Member] | Customer Relationships [Member] | ||||||||
Schedule of Asset and Business Acquisitions, by Acquisition [Line Items] | ||||||||
Finite-lived intangible assets | 132,000,000 | |||||||
Definite-lived intangible assets, weighted-average amortization period | 18 years | |||||||
Alterra Capital Holdings [Member] | Trade Names [Member] | ||||||||
Schedule of Asset and Business Acquisitions, by Acquisition [Line Items] | ||||||||
Finite-lived intangible assets | 1,000,000 | |||||||
Definite-lived intangible assets, weighted-average amortization period | 1 year | |||||||
Abbey Protection plc [Member] | ||||||||
Schedule of Asset and Business Acquisitions, by Acquisition [Line Items] | ||||||||
Percentage acquired | 100.00% | |||||||
Total purchase consideration | 190,700,000 | |||||||
Cash consideration | 190,700,000 | |||||||
Goodwill recognized | 65,800,000 | |||||||
Goodwill, tax deductible | 0 | |||||||
Finite-lived intangible assets | 113,400,000 | |||||||
Abbey Protection plc [Member] | Customer Relationships [Member] | ||||||||
Schedule of Asset and Business Acquisitions, by Acquisition [Line Items] | ||||||||
Finite-lived intangible assets | 103,500,000 | |||||||
Definite-lived intangible assets, weighted-average amortization period | 20 years | |||||||
Abbey Protection plc [Member] | Trade Names [Member] | ||||||||
Schedule of Asset and Business Acquisitions, by Acquisition [Line Items] | ||||||||
Finite-lived intangible assets | 9,900,000 | |||||||
Definite-lived intangible assets, weighted-average amortization period | 14 years | |||||||
Abbey Protection plc [Member] | International Insurance [Member] | ||||||||
Schedule of Asset and Business Acquisitions, by Acquisition [Line Items] | ||||||||
Goodwill recognized | 43,000,000 | |||||||
Abbey Protection plc [Member] | Non-Insurance Operations [Member] | ||||||||
Schedule of Asset and Business Acquisitions, by Acquisition [Line Items] | ||||||||
Goodwill recognized | 22,800,000 | |||||||
Cottrell Inc [Member] | ||||||||
Schedule of Asset and Business Acquisitions, by Acquisition [Line Items] | ||||||||
Percentage acquired | 100.00% | |||||||
Non-Insurance Acquisitions [Member] | ||||||||
Schedule of Asset and Business Acquisitions, by Acquisition [Line Items] | ||||||||
Total purchase consideration | 187,000,000 | |||||||
Goodwill recognized | 38,700,000 | |||||||
Finite-lived intangible assets | 78,700,000 | |||||||
Non-Insurance Acquisitions [Member] | Customer Relationships [Member] | ||||||||
Schedule of Asset and Business Acquisitions, by Acquisition [Line Items] | ||||||||
Finite-lived intangible assets | 53,700,000 | |||||||
Definite-lived intangible assets, weighted-average amortization period | 17 years | |||||||
Non-Insurance Acquisitions [Member] | Trade Names [Member] | ||||||||
Schedule of Asset and Business Acquisitions, by Acquisition [Line Items] | ||||||||
Finite-lived intangible assets | $13,000,000 | |||||||
Definite-lived intangible assets, weighted-average amortization period | 10 years | |||||||
[1] | In connection with the acquisition of Alterra, the Company incurred transaction costs of $16.0 million for the year ended December 31, 2013, which primarily consist of due diligence, legal and investment banking costs. Additionally, the Company incurred severance costs of $31.7 million, stay bonuses of $14.8 million and other compensation costs totaling $12.6 million related to the acceleration of certain long-term incentive compensation awards and restricted stock awards that were granted by Alterra prior to the acquisition. |
Acquisitions_Calculation_Of_To
Acquisitions (Calculation Of Total Purchase Price) (Details) (Alterra Capital Holdings [Member], USD $) | 0 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | 1-May-13 | 1-May-13 | ||
Business Acquisition [Line Items] | ||||
Exchange ratio per the Merger Agreement | 0.04315 | 0.04315 | ||
Markel share issuance to Alterra shareholders | 4,300,000 | |||
Incentive award ratio per the Merger Agreement | 0.06252 | 0.06252 | ||
Multiplied by Markel's weighted average stock price on April 30, 2013 | $529.59 | [1] | $529.59 | [1] |
Markel share and restricted stock issuance consideration, net of taxes | $2,267,648 | |||
Alterra common shares outstanding as of the Acquisition Date that received cash consideration | 96,433,000 | 96,433,000 | ||
Multiplied by cash price per share component per the Merger Agreement | $10 | $10 | ||
Markel cash consideration | 964,330 | |||
Fair value of Markel warrant issuance to Alterra warrant holders as of the Acquisition Date | 73,685 | |||
Fair value of Markel stock option issuance to Alterra stock option holders as of the Acquisition Date, net of taxes | 12,335 | |||
Fair value of partially vested Markel restricted stock unit issuance as of the Acquisition Date, net of taxes | 6,867 | |||
Unrecognized compensation on unvested restricted stock and restricted stock units | -20,572 | -20,572 | ||
Total acquisition consideration | $3,304,293 | |||
Common Stock [Member] | ||||
Business Acquisition [Line Items] | ||||
Shares of Alterra stock outstanding as of the Acquisition Date | 96,433,000 | 96,433,000 | ||
Markel share issuance to Alterra shareholders | 4,161,000 | |||
Restricted Stock [Member] | ||||
Business Acquisition [Line Items] | ||||
Shares of Alterra stock outstanding as of the Acquisition Date | 2,239,000 | 2,239,000 | ||
Markel share issuance to Alterra shareholders | 140,000 | |||
[1] | The fair value of the shares issued by the Company was calculated as the weighted average price of the Company's stock on April 30, 2013, the day preceding the Acquisition Date. |
Acquisitions_Summary_Of_Fair_V
Acquisitions (Summary Of Fair Value Of Assets Acquired And Liabilities Assumed) (Details) (Alterra Capital Holdings [Member], USD $) | 1-May-13 |
In Thousands, unless otherwise specified | |
Alterra Capital Holdings [Member] | |
ASSETS | |
Investments | $6,407,841 |
Cash and cash equivalents | 1,036,274 |
Restricted cash and cash equivalents | 414,497 |
Receivables | 866,388 |
Reinsurance recoverable on unpaid losses | 1,169,084 |
Reinsurance recoverable on paid losses | 80,672 |
Prepaid reinsurance premiums | 317,445 |
Other assets | 859,884 |
LIABILITIES | |
Unpaid losses and loss adjustment expenses | 4,719,461 |
Life and annuity benefits | 1,477,482 |
Unearned premiums | 1,075,610 |
Payables to insurance and reinsurance companies | 342,858 |
Senior long-term debt | 512,463 |
Other liabilities | 223,108 |
Net assets | 2,801,103 |
Goodwill | 295,690 |
Intangible assets | 207,500 |
Acquisition date fair value | $3,304,293 |
Acquisitions_Summary_Of_Intang
Acquisitions (Summary Of Intangible Assets Acquired) (Details) (USD $) | 12 Months Ended | 0 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 | 1-May-13 |
Schedule of Intangible Assets [Line Items] | ||
Economic useful lives of finite-lived intangible assets, years | 16 years 9 months 22 days | |
Customer Relationships [Member] | ||
Schedule of Intangible Assets [Line Items] | ||
Economic useful lives of finite-lived intangible assets, years | 18 years 7 months 9 days | |
Technology [Member] | ||
Schedule of Intangible Assets [Line Items] | ||
Economic useful lives of finite-lived intangible assets, years | 7 years | |
Trade Names [Member] | ||
Schedule of Intangible Assets [Line Items] | ||
Economic useful lives of finite-lived intangible assets, years | 12 years 6 months 2 days | |
Alterra Capital Holdings [Member] | ||
Schedule of Intangible Assets [Line Items] | ||
Finite-lived intangible assets | $170,000 | |
Indefinite-lived intangible assets | 37,500 | |
Economic useful lives of finite-lived intangible assets, years | 17 years | |
Intangible assets as of the Acquisition Date | 207,500 | |
Alterra Capital Holdings [Member] | Lloyd's Syndicate Capacity [Member] | ||
Schedule of Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 12,000 | |
Economic useful lives of indefinite-lived intangible assets, years | Indefinite | |
Alterra Capital Holdings [Member] | Insurance Licenses [Member] | ||
Schedule of Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 25,500 | |
Economic useful lives of indefinite-lived intangible assets, years | Indefinite | |
Alterra Capital Holdings [Member] | Customer Relationships [Member] | ||
Schedule of Intangible Assets [Line Items] | ||
Finite-lived intangible assets | 132,000 | |
Economic useful lives of finite-lived intangible assets, years | 18 years | |
Alterra Capital Holdings [Member] | Broker Relationships [Member] | ||
Schedule of Intangible Assets [Line Items] | ||
Finite-lived intangible assets | 19,000 | |
Economic useful lives of finite-lived intangible assets, years | 18 years | |
Alterra Capital Holdings [Member] | Technology [Member] | ||
Schedule of Intangible Assets [Line Items] | ||
Finite-lived intangible assets | 18,000 | |
Economic useful lives of finite-lived intangible assets, years | 10 years | |
Alterra Capital Holdings [Member] | Trade Names [Member] | ||
Schedule of Intangible Assets [Line Items] | ||
Finite-lived intangible assets | $1,000 | |
Economic useful lives of finite-lived intangible assets, years | 1 year |
Acquisitions_Summary_Of_Transa
Acquisitions (Summary Of Transaction And Acquisition-Related Costs) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Acquisitions [Abstract] | ||||||
Transaction costs | $15,981 | [1] | ||||
Severance costs | 31,734 | [1] | ||||
Stay bonuses | 14,804 | [1] | ||||
Acceleration of Alterra long-term incentive compensation awards and restricted stock awards | 12,621 | [1] | ||||
Total transaction and acquisition-related costs | $0 | [1] | $75,140 | [1],[2] | $0 | [1] |
[1] | In connection with the acquisition of Alterra, the Company incurred transaction costs of $16.0 million for the year ended December 31, 2013, which primarily consist of due diligence, legal and investment banking costs. Additionally, the Company incurred severance costs of $31.7 million, stay bonuses of $14.8 million and other compensation costs totaling $12.6 million related to the acceleration of certain long-term incentive compensation awards and restricted stock awards that were granted by Alterra prior to the acquisition. | |||||
[2] | In connection with the acquisition of Alterra, the Company incurred transaction costs of $16.0 million for the year ended DecemberB 31, 2013, which primarily consist of due diligence, legal and investment banking costs. Additionally, the Company incurred severance costs of $31.7 million, stay bonuses of $14.8 million and other compensation costs totaling $12.6 million related to the acceleration of certain long-term incentive compensation awards and restricted stock awards that were granted by Alterra prior to the acquisition. |
Acquisitions_Summary_Of_Result
Acquisitions (Summary Of Results Of Operations) (Details) (Alterra Capital Holdings [Member], USD $) | 8 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Alterra Capital Holdings [Member] | |
Business Acquisition [Line Items] | |
Operating revenues | $912,387 |
Net loss to shareholders | ($93,074) |
Acquisitions_Unaudited_Pro_For
Acquisitions (Unaudited Pro Forma Consolidated Financial Information) (Details) (USD $) | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Acquisitions [Abstract] | ||||
Earned premiums | $3,680,220 | $3,509,834 | ||
Operating revenues | 4,899,628 | 4,561,107 | ||
Net income to shareholders | $422,829 | $308,496 | ||
U.S. GAAP combined ratio | 95.00% | [1] | 99.00% | [1] |
Basic net income per share | $30.33 | $21.79 | ||
Diluted net income per share | $30.19 | $21.71 | ||
Weighted average common shares outstanding, basic | 14,007 | 14,014 | ||
Weighted average common shares outstanding, diluted | 14,069 | 14,065 | ||
[1] | The U.S. GAAP combined ratio is a measure of underwriting performance and represents the relationship of incurred losses, loss adjustment expenses and underwriting, acquisition and insurance expenses to earned premiums. |
Investments_Narrative_Details
Investments (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
securities | securities | ||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities in unrealized loss position, number of positions | 552 | 1,364 | |
Available-for-sale securities, estimated fair value | $2,031,032,000 | $4,859,071,000 | |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses | -35,218,000 | -211,904,000 | |
Number of available-for-sale securities positions in a continuous unrealized loss position for one year or longer at period end | 396 | 9 | |
Available-for-sale securities, estimated fair value, 12 months or longer | 1,333,930,000 | 31,247,000 | |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, 12 months or longer | -22,079,000 | -546,000 | |
Estimated average duration of the fixed maturities | 5 years 9 months 22 days | ||
Cumulative credit loss recognized in income | 12,700,000 | 12,700,000 | 21,400,000 |
Other-than-temporary impairment losses recognized in net income | -4,784,000 | -4,706,000 | -12,078,000 |
Percentage threshold of shareholders' equity used to define concentration of investments | 10.00% | 10.00% | |
Ten largest equity holdings | 1,900,000,000 | ||
Ten largest equity holdings, percentage of equity portfolio | 45.00% | ||
Investments in property and casualty | 756,300,000 | ||
Investments in property and casualty, percentage of equity portfolio | 18.00% | ||
Berkshire Hathaway Inc. [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Investments in property and casualty | 470,700,000 | ||
Fixed Maturities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, estimated fair value | 1,746,787,000 | 4,810,249,000 | |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses | -27,847,000 | -210,786,000 | |
Number of available-for-sale securities positions in a continuous unrealized loss position for one year or longer at period end | 396 | 8 | |
Available-for-sale securities, estimated fair value, 12 months or longer | 1,333,930,000 | 3,512,000 | |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, 12 months or longer | -22,079,000 | -146,000 | |
Other-than-temporary impairment losses recognized in net income | -300,000 | -1,900,000 | |
Equity Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, estimated fair value | 102,281,000 | 48,822,000 | |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses | -7,365,000 | -1,118,000 | |
Number of available-for-sale securities positions in a continuous unrealized loss position for one year or longer at period end | 1 | ||
Available-for-sale securities, estimated fair value, 12 months or longer | 0 | 27,735,000 | |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, 12 months or longer | 0 | -400,000 | |
Other-than-temporary impairment losses recognized in net income | ($4,500,000) | ($2,800,000) | ($12,100,000) |
Alterra Capital Holdings [Member] | Fixed Maturities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Number of available-for-sale securities positions in a continuous unrealized loss position for one year or longer at period end | 391 |
Investments_AvailableForSale_I
Investments (Available-For-Sale Investments) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale investments, amortized cost | $13,475,614 | $13,147,964 |
Available-for-sale investments, gross unrealized holding gains | 2,714,911 | 1,910,562 |
Available-for-sale investments, gross unrealized holding losses | -31,141 | -204,757 |
Available-for-sale investments, unrealized other-than-temporary impairment losses | -4,077 | -7,147 |
Available-for-sale investments, estimated fair value | 16,155,307 | 14,846,622 |
U.S. Treasury Securities And Obligations Of U.S. Government Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale investments, amortized cost | 662,462 | 1,215,522 |
Available-for-sale investments, gross unrealized holding gains | 12,963 | 9,051 |
Available-for-sale investments, gross unrealized holding losses | -2,163 | -30,342 |
Available-for-sale investments, unrealized other-than-temporary impairment losses | 0 | 0 |
Available-for-sale investments, estimated fair value | 673,262 | 1,194,231 |
Obligations Of States, Municipalities And Political Subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale investments, amortized cost | 4,075,748 | 2,986,758 |
Available-for-sale investments, gross unrealized holding gains | 245,158 | 116,341 |
Available-for-sale investments, gross unrealized holding losses | -3,359 | -27,384 |
Available-for-sale investments, unrealized other-than-temporary impairment losses | 0 | 0 |
Available-for-sale investments, estimated fair value | 4,317,547 | 3,075,715 |
Foreign Governments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale investments, amortized cost | 1,458,255 | 1,484,818 |
Available-for-sale investments, gross unrealized holding gains | 154,707 | 30,647 |
Available-for-sale investments, gross unrealized holding losses | -1,041 | -54,411 |
Available-for-sale investments, unrealized other-than-temporary impairment losses | 0 | 0 |
Available-for-sale investments, estimated fair value | 1,611,921 | 1,461,054 |
Commercial Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale investments, amortized cost | 427,904 | 379,555 |
Available-for-sale investments, gross unrealized holding gains | 5,325 | 62 |
Available-for-sale investments, gross unrealized holding losses | -2,602 | -11,796 |
Available-for-sale investments, unrealized other-than-temporary impairment losses | 0 | 0 |
Available-for-sale investments, estimated fair value | 430,627 | 367,821 |
Residential Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale investments, amortized cost | 954,263 | 875,902 |
Available-for-sale investments, gross unrealized holding gains | 34,324 | 13,046 |
Available-for-sale investments, gross unrealized holding losses | -3,482 | -16,442 |
Available-for-sale investments, unrealized other-than-temporary impairment losses | -2,258 | -2,258 |
Available-for-sale investments, estimated fair value | 982,847 | 870,248 |
Asset-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale investments, amortized cost | 100,073 | 189,646 |
Available-for-sale investments, gross unrealized holding gains | 99 | 257 |
Available-for-sale investments, gross unrealized holding losses | -682 | -1,614 |
Available-for-sale investments, unrealized other-than-temporary impairment losses | 0 | 0 |
Available-for-sale investments, estimated fair value | 99,490 | 188,289 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale investments, amortized cost | 2,250,432 | 2,996,940 |
Available-for-sale investments, gross unrealized holding gains | 69,016 | 54,777 |
Available-for-sale investments, gross unrealized holding losses | -10,441 | -61,650 |
Available-for-sale investments, unrealized other-than-temporary impairment losses | -1,819 | -4,889 |
Available-for-sale investments, estimated fair value | 2,307,188 | 2,985,178 |
Total Fixed Maturities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale investments, amortized cost | 9,929,137 | 10,129,141 |
Available-for-sale investments, gross unrealized holding gains | 521,592 | 224,181 |
Available-for-sale investments, gross unrealized holding losses | -23,770 | -203,639 |
Available-for-sale investments, unrealized other-than-temporary impairment losses | -4,077 | -7,147 |
Available-for-sale investments, estimated fair value | 10,422,882 | 10,142,536 |
Insurance, Banks And Other Financial Institutions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale investments, amortized cost | 523,739 | 422,975 |
Available-for-sale investments, gross unrealized holding gains | 789,717 | 592,112 |
Available-for-sale investments, gross unrealized holding losses | -1,531 | -4 |
Available-for-sale investments, unrealized other-than-temporary impairment losses | 0 | 0 |
Available-for-sale investments, estimated fair value | 1,311,925 | 1,015,083 |
Industrial, Consumer And All Other [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale investments, amortized cost | 1,427,919 | 1,143,578 |
Available-for-sale investments, gross unrealized holding gains | 1,403,566 | 1,094,251 |
Available-for-sale investments, gross unrealized holding losses | -5,834 | -1,114 |
Available-for-sale investments, unrealized other-than-temporary impairment losses | 0 | 0 |
Available-for-sale investments, estimated fair value | 2,825,651 | 2,236,715 |
Total Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale investments, amortized cost | 1,951,658 | 1,566,553 |
Available-for-sale investments, gross unrealized holding gains | 2,193,283 | 1,686,363 |
Available-for-sale investments, gross unrealized holding losses | -7,365 | -1,118 |
Available-for-sale investments, unrealized other-than-temporary impairment losses | 0 | 0 |
Available-for-sale investments, estimated fair value | 4,137,576 | 3,251,798 |
Short-Term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale investments, amortized cost | 1,594,819 | 1,452,270 |
Available-for-sale investments, gross unrealized holding gains | 36 | 18 |
Available-for-sale investments, gross unrealized holding losses | -6 | 0 |
Available-for-sale investments, unrealized other-than-temporary impairment losses | 0 | 0 |
Available-for-sale investments, estimated fair value | $1,594,849 | $1,452,288 |
Investments_Summary_Of_Gross_U
Investments (Summary Of Gross Unrealized Investment Losses By Length Of Time That Securities Have Continuously Been In An Unrealized Loss Position) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, estimated fair value, less than 12 months | $697,102 | $4,827,824 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, less than 12 months | -13,139 | -211,358 |
Available-for-sale securities, estimated fair value, 12 months or longer | 1,333,930 | 31,247 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, 12 months or longer | -22,079 | -546 |
Available-for-sale securities, estimated fair value | 2,031,032 | 4,859,071 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses | -35,218 | -211,904 |
U.S. Treasury Securities And Obligations Of U.S. Government Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, estimated fair value, less than 12 months | 108,250 | 587,929 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, less than 12 months | -62 | -30,342 |
Available-for-sale securities, estimated fair value, 12 months or longer | 163,359 | 0 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, 12 months or longer | -2,101 | 0 |
Available-for-sale securities, estimated fair value | 271,609 | 587,929 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses | -2,163 | -30,342 |
Obligations Of States, Municipalities And Political Subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, estimated fair value, less than 12 months | 58,583 | 513,608 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, less than 12 months | -542 | -27,238 |
Available-for-sale securities, estimated fair value, 12 months or longer | 92,441 | 3,512 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, 12 months or longer | -2,817 | -146 |
Available-for-sale securities, estimated fair value | 151,024 | 517,120 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses | -3,359 | -27,384 |
Foreign Governments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, estimated fair value, less than 12 months | 18,856 | 950,040 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, less than 12 months | -386 | -54,411 |
Available-for-sale securities, estimated fair value, 12 months or longer | 56,217 | 0 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, 12 months or longer | -655 | 0 |
Available-for-sale securities, estimated fair value | 75,073 | 950,040 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses | -1,041 | -54,411 |
Commercial Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, estimated fair value, less than 12 months | 45,931 | 357,737 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, less than 12 months | -210 | -11,796 |
Available-for-sale securities, estimated fair value, 12 months or longer | 147,558 | 0 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, 12 months or longer | -2,392 | 0 |
Available-for-sale securities, estimated fair value | 193,489 | 357,737 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses | -2,602 | -11,796 |
Residential Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, estimated fair value, less than 12 months | 9,613 | 437,675 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, less than 12 months | -2,285 | -18,700 |
Available-for-sale securities, estimated fair value, 12 months or longer | 207,374 | 0 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, 12 months or longer | -3,455 | 0 |
Available-for-sale securities, estimated fair value | 216,987 | 437,675 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses | -5,740 | -18,700 |
Asset-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, estimated fair value, less than 12 months | 30,448 | 142,011 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, less than 12 months | -20 | -1,614 |
Available-for-sale securities, estimated fair value, 12 months or longer | 45,160 | 0 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, 12 months or longer | -662 | 0 |
Available-for-sale securities, estimated fair value | 75,608 | 142,011 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses | -682 | -1,614 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, estimated fair value, less than 12 months | 141,176 | 1,817,737 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, less than 12 months | -2,263 | -66,539 |
Available-for-sale securities, estimated fair value, 12 months or longer | 621,821 | 0 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, 12 months or longer | -9,997 | 0 |
Available-for-sale securities, estimated fair value | 762,997 | 1,817,737 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses | -12,260 | -66,539 |
Total Fixed Maturities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, estimated fair value, less than 12 months | 412,857 | 4,806,737 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, less than 12 months | -5,768 | -210,640 |
Available-for-sale securities, estimated fair value, 12 months or longer | 1,333,930 | 3,512 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, 12 months or longer | -22,079 | -146 |
Available-for-sale securities, estimated fair value | 1,746,787 | 4,810,249 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses | -27,847 | -210,786 |
Insurance, Banks And Other Financial Institutions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, estimated fair value, less than 12 months | 16,219 | 144 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, less than 12 months | -1,531 | -4 |
Available-for-sale securities, estimated fair value, 12 months or longer | 0 | 0 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, 12 months or longer | 0 | 0 |
Available-for-sale securities, estimated fair value | 16,219 | 144 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses | -1,531 | -4 |
Industrial, Consumer And All Other [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, estimated fair value, less than 12 months | 86,062 | 20,943 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, less than 12 months | -5,834 | -714 |
Available-for-sale securities, estimated fair value, 12 months or longer | 0 | 27,735 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, 12 months or longer | 0 | -400 |
Available-for-sale securities, estimated fair value | 86,062 | 48,678 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses | -5,834 | -1,114 |
Total Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, estimated fair value, less than 12 months | 102,281 | 21,087 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, less than 12 months | -7,365 | -718 |
Available-for-sale securities, estimated fair value, 12 months or longer | 0 | 27,735 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, 12 months or longer | 0 | -400 |
Available-for-sale securities, estimated fair value | 102,281 | 48,822 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses | -7,365 | -1,118 |
Short-Term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, estimated fair value, less than 12 months | 181,964 | |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, less than 12 months | -6 | |
Available-for-sale securities, estimated fair value, 12 months or longer | 0 | |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, 12 months or longer | 0 | |
Available-for-sale securities, estimated fair value | 181,964 | |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses | ($6) |
Investments_Schedule_Of_Amorti
Investments (Schedule Of Amortized Cost And Estimated Fair Value Of Fixed Maturities By Contractual Maturity) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Due in one year or less, amortized cost | $747,997 | |
Due after one year through five years, amortized cost | 2,007,798 | |
Due after five years through ten years, amortized cost | 2,026,628 | |
Due after ten years, amortized cost | 3,664,474 | |
Amortized cost, sub-total | 8,446,897 | |
Fixed maturities, amortized cost | 9,929,137 | 10,129,141 |
Due in one year or less, estimated fair value | 752,715 | |
Due after one year through five years, estimated fair value | 2,059,192 | |
Due after five years through ten years, estimated fair value | 2,142,582 | |
Due after ten years, estimated fair value | 3,955,429 | |
Estimated fair value, sub-total | 8,909,918 | |
Fixed maturities, estimated fair value | 10,422,882 | 10,142,536 |
Commercial Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 427,904 | |
Estimated fair value | 430,627 | |
Residential Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 954,263 | |
Estimated fair value | 982,847 | |
Asset-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 100,073 | |
Estimated fair value | $99,490 |
Investments_Components_Of_Net_
Investments (Components Of Net Investment Income) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Municipal bonds (tax-exempt) | $98,262 | $82,308 | $90,316 |
Short-term investments, including overnight deposits | 5,959 | 3,573 | 2,755 |
Dividends on equity securities | 65,031 | 48,641 | 50,416 |
Change in fair value of credit default swap | 2,230 | 10,460 | 16,641 |
Income from equity method investments | 4,766 | 21,898 | 1,961 |
Other | 108 | 355 | -41 |
Total investment income | 378,490 | 329,653 | 291,981 |
Investment expenses | -15,260 | -12,280 | -9,874 |
Net investment income | 363,230 | 317,373 | 282,107 |
Taxable Municipal Bonds [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Taxable bonds | 49,345 | 28,041 | 22,663 |
Other Taxable Bonds [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Taxable bonds | $152,789 | $134,377 | $107,270 |
Investments_Summary_Of_Net_Rea
Investments (Summary Of Net Realized Investment Gains And The Change In Net Unrealized Gains On Investments) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Gain (Loss) on Investments [Line Items] | |||
Realized gains | $74,978 | $93,304 | $48,664 |
Realized losses | -28,978 | -30,152 | -17,071 |
Other-than-temporary impairment losses recognized in net income | -4,784 | -4,706 | -12,078 |
Net realized investment gains | 46,000 | 63,152 | 31,593 |
Change in net unrealized gains on investments | 981,035 | 261,995 | 353,808 |
Sales Of Fixed Maturities [Member] | |||
Gain (Loss) on Investments [Line Items] | |||
Realized gains | 8,417 | 13,772 | 18,337 |
Realized losses | -18,136 | -25,168 | -563 |
Sales Of Equity Securities [Member] | |||
Gain (Loss) on Investments [Line Items] | |||
Realized gains | 51,356 | 73,592 | 29,578 |
Realized losses | -802 | -278 | -342 |
Other [Member] | |||
Gain (Loss) on Investments [Line Items] | |||
Realized gains | 15,205 | 5,940 | 749 |
Realized losses | -5,256 | 0 | -4,088 |
Fixed Maturities [Member] | |||
Gain (Loss) on Investments [Line Items] | |||
Other-than-temporary impairment losses recognized in net income | -300 | -1,900 | |
Change in net unrealized gains on investments | 480,350 | -403,610 | 51,783 |
Equity Securities [Member] | |||
Gain (Loss) on Investments [Line Items] | |||
Other-than-temporary impairment losses recognized in net income | -4,500 | -2,800 | -12,100 |
Change in net unrealized gains on investments | 500,673 | 665,599 | 302,013 |
Short-Term Investments [Member] | |||
Gain (Loss) on Investments [Line Items] | |||
Change in net unrealized gains on investments | $12 | $6 | $12 |
Investments_Investments_Compon
Investments Investments (Components Of Restricted Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Components Of Restricted Assets [Line Items] | ||
Restricted assets | $5,596,401 | $6,089,379 |
Held In Trust Or On Deposit [Member] | ||
Components Of Restricted Assets [Line Items] | ||
Restricted assets | 4,961,061 | 5,161,871 |
Cash And Cash Equivalents And Securities Pledged As Collateral [Member] | ||
Components Of Restricted Assets [Line Items] | ||
Restricted assets | 635,340 | 695,072 |
Pledged Investments And Cash And Cash Equivalents As Collateral For Credit Default Swap [Member] | ||
Components Of Restricted Assets [Line Items] | ||
Restricted assets | 0 | 33,430 |
Cash Held In Escrow [Member] | ||
Components Of Restricted Assets [Line Items] | ||
Restricted assets | $0 | $199,006 |
Investments_Schedule_Of_Restri
Investments (Schedule Of Restricted Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investments, Debt and Equity Securities [Abstract] | ||
Investments, available-for-sale | $5,040,413 | $5,225,701 |
Restricted cash and cash equivalents | 522,225 | 786,926 |
Other assets | 33,763 | 76,752 |
Total | $5,596,401 | $6,089,379 |
Receivables_Components_Of_Rece
Receivables (Components Of Receivables) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Receivables [Abstract] | ||
Amounts receivable from agents, brokers and insureds | $1,031,519 | $1,058,021 |
Trade accounts receivable | 97,225 | 85,203 |
Employee stock loans receivable (see note 12(c)) | 15,044 | 12,822 |
Other | 8,601 | 5,420 |
Receivables, gross | 1,152,389 | 1,161,466 |
Allowance for doubtful receivables | -17,172 | -19,693 |
Receivables | $1,135,217 | $1,141,773 |
Deferred_Policy_Acquisition_Co2
Deferred Policy Acquisition Costs (Amounts Of Policy Acquisition Costs Acquired, Deferred And Amortized) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Balance, beginning of year | $260,967 | $157,465 | $194,674 |
Policy acquisition costs deferred | 754,303 | 577,620 | 390,360 |
Amortization of policy acquisition costs | -654,916 | -471,915 | -428,109 |
Foreign currency movements | -6,944 | -2,203 | 540 |
Deferred policy acquisition costs | $353,410 | $260,967 | $157,465 |
Deferred_Policy_Acquisition_Co3
Deferred Policy Acquisition Costs (Components Of Underwriting, Acquisition And Insurance Expenses) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Deferred Policy Acquisition Costs Disclosures [Abstract] | ||||||
Transaction costs and other acquisition-related expenses | $0 | [1] | $75,140 | [1],[2] | $0 | [1] |
Transaction costs | 15,981 | [1] | ||||
Other acquisition related costs, severance costs | 31,734 | [1] | ||||
Other acquisition related costs, stay bonuses | 14,804 | [1] | ||||
Other acquisition related costs, other compensation costs | 12,621 | [1] | ||||
Prospective adoption of FASB ASU No. 2010-26 | 0 | [3] | 0 | [3] | 43,093 | [3] |
Other amortization of policy acquisition costs | 654,916 | 471,915 | 385,016 | |||
Other operating expenses | 805,966 | 765,257 | 501,363 | |||
Underwriting, acquisition and insurance expenses | $1,460,882 | $1,312,312 | $929,472 | |||
[1] | In connection with the acquisition of Alterra, the Company incurred transaction costs of $16.0 million for the year ended December 31, 2013, which primarily consist of due diligence, legal and investment banking costs. Additionally, the Company incurred severance costs of $31.7 million, stay bonuses of $14.8 million and other compensation costs totaling $12.6 million related to the acceleration of certain long-term incentive compensation awards and restricted stock awards that were granted by Alterra prior to the acquisition. | |||||
[2] | In connection with the acquisition of Alterra, the Company incurred transaction costs of $16.0 million for the year ended DecemberB 31, 2013, which primarily consist of due diligence, legal and investment banking costs. Additionally, the Company incurred severance costs of $31.7 million, stay bonuses of $14.8 million and other compensation costs totaling $12.6 million related to the acceleration of certain long-term incentive compensation awards and restricted stock awards that were granted by Alterra prior to the acquisition. | |||||
[3] | Effective January 1, 2012, the Company prospectively adopted FASB ASU No. 2010-26, Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts. At December 31, 2011, deferred policy acquisition costs included $43.1 million of costs that no longer met the criteria for deferral as of January 1, 2012 and were recognized into income during 2012, consistent with policy terms. |
Property_And_Equipment_Compone
Property And Equipment (Components Of Property And Equipment) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Property, Plant and Equipment [Abstract] | |||
Land | $56,848,000 | $48,036,000 | |
Buildings | 78,786,000 | 59,307,000 | |
Leasehold improvements | 98,098,000 | 68,363,000 | |
Land improvements | 70,596,000 | 57,673,000 | |
Furniture and equipment | 255,566,000 | 217,528,000 | |
Other | 116,884,000 | 104,690,000 | |
Property and equipment, gross | 676,778,000 | 555,597,000 | |
Accumulated depreciation and amortization | -255,388,000 | -207,688,000 | |
Property and equipment | 421,390,000 | 347,909,000 | |
Depreciation and amortization expense of property and equipment | $51,200,000 | $51,500,000 | $36,000,000 |
Goodwill_And_Intangible_Assets2
Goodwill And Intangible Assets (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Goodwill And Intangible Assets [Line Items] | |||
Goodwill impairment | ($13,737,000) | $0 | $0 |
Amortization of intangible assets | 57,627,000 | 55,223,000 | 33,512,000 |
Estimated amortization of intangible assets for 2015 | 58,300,000 | ||
Estimated amortization of intangible assets for 2016 | 55,200,000 | ||
Estimated amortization of intangible assets for 2017 | 52,800,000 | ||
Estimated amortization of intangible assets for 2018 | 52,500,000 | ||
Estimated amortization of intangible assets for 2019 | 46,700,000 | ||
Indefinite-lived intangible assets | 58,000,000 | 58,000,000 | |
Intangible assets acquired during period | $204,400,000 | ||
Definite-lived intangible assets, weighted-average amortization period | 16 years 9 months 22 days | ||
Customer Relationships [Member] | |||
Goodwill And Intangible Assets [Line Items] | |||
Definite-lived intangible assets, weighted-average amortization period | 18 years 7 months 9 days | ||
Trade Names [Member] | |||
Goodwill And Intangible Assets [Line Items] | |||
Definite-lived intangible assets, weighted-average amortization period | 12 years 6 months 2 days | ||
Technology [Member] | |||
Goodwill And Intangible Assets [Line Items] | |||
Definite-lived intangible assets, weighted-average amortization period | 7 years |
Goodwill_And_Intangible_Assets3
Goodwill And Intangible Assets (Components Of Goodwill) (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Goodwill [Line Items] | |||||
Goodwill, beginning balance | $967,717,000 | $674,930,000 | |||
Acquisitions (see note 2) | 104,528,000 | 296,875,000 | |||
Impairment loss | -13,737,000 | 0 | 0 | ||
Foreign currency movements and other adjustments | -9,393,000 | -4,088,000 | |||
Goodwill, ending balance | 1,049,115,000 | [1] | 967,717,000 | 674,930,000 | |
U.S. Insurance [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill, beginning balance | 280,579,000 | 172,824,000 | |||
Acquisitions (see note 2) | 0 | 107,755,000 | |||
Impairment loss | 0 | ||||
Foreign currency movements and other adjustments | 0 | 0 | |||
Goodwill, ending balance | 280,579,000 | [1] | 280,579,000 | ||
International Insurance [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill, beginning balance | 372,764,000 | 309,662,000 | |||
Acquisitions (see note 2) | 42,989,000 | 65,190,000 | |||
Impairment loss | 0 | ||||
Foreign currency movements and other adjustments | -7,570,000 | -2,088,000 | |||
Goodwill, ending balance | 408,183,000 | [1] | 372,764,000 | ||
Reinsurance [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill, beginning balance | 122,745,000 | 0 | |||
Acquisitions (see note 2) | 0 | 122,745,000 | |||
Impairment loss | 0 | ||||
Foreign currency movements and other adjustments | 0 | 0 | |||
Goodwill, ending balance | 122,745,000 | [1] | 122,745,000 | ||
Other [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill, beginning balance | 191,629,000 | [2] | 192,444,000 | [2] | |
Acquisitions (see note 2) | 61,539,000 | [2] | 1,185,000 | [2] | |
Impairment loss | -13,737,000 | [2] | |||
Foreign currency movements and other adjustments | -1,823,000 | [2] | -2,000,000 | [2] | |
Accumulated impairment losses | 13,700,000 | [1] | |||
Goodwill, ending balance | $237,608,000 | [1],[2] | $191,629,000 | [2] | |
[1] | Goodwill is net of accumulated impairment losses of $13.7 million included in Other. | ||||
[2] | Amounts included in Other above are related to the Company's non-insurance operations, which are not included in a reportable segment. |
Goodwill_And_Intangible_Assets4
Goodwill And Intangible Assets (Components Of Intangible Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Indefinite-Lived And Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross carrying amount | $855,809 | $666,270 |
Intangible assets, accumulated amortization | -153,062 | -101,187 |
Customer Relationships [Member] | ||
Schedule of Indefinite-Lived And Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross carrying amount | 452,157 | 298,886 |
Intangible assets, accumulated amortization | -69,483 | -43,286 |
Broker Relationships [Member] | ||
Schedule of Indefinite-Lived And Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross carrying amount | 175,681 | 178,693 |
Intangible assets, accumulated amortization | -34,827 | -23,255 |
Trade Names [Member] | ||
Schedule of Indefinite-Lived And Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross carrying amount | 94,795 | 65,880 |
Intangible assets, accumulated amortization | -17,673 | -12,666 |
Technology [Member] | ||
Schedule of Indefinite-Lived And Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross carrying amount | 62,288 | 56,429 |
Intangible assets, accumulated amortization | -22,671 | -16,222 |
Insurance Licenses [Member] | ||
Schedule of Indefinite-Lived And Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross carrying amount | 39,985 | 40,185 |
Intangible assets, accumulated amortization | 0 | -133 |
Lloyd's Syndicate Capacity [Member] | ||
Schedule of Indefinite-Lived And Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross carrying amount | 12,000 | 12,000 |
Intangible assets, accumulated amortization | 0 | 0 |
Other [Member] | ||
Schedule of Indefinite-Lived And Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross carrying amount | 18,903 | 14,197 |
Intangible assets, accumulated amortization | ($8,408) | ($5,625) |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Line Items] | |||
Income tax payments | $89,500,000 | $35,700,000 | $30,000,000 |
Income taxes payable | 37,600,000 | 84,200,000 | |
Tax credit carryforwards | 32,525,000 | 33,773,000 | |
Tax credit, expiration date | 31-Dec-19 | ||
Net operating loss carryforwards | 61,200,000 | ||
Estimated gross deferred tax assets including net operating losses realized through reversal of existing temporary differences attributable to gross deferred tax liabilities | 716,700,000 | ||
Unrecognized tax benefits | 17,700,000 | 18,219,000 | 18,870,000 |
Unrecognized tax benefits decrease on effective tax rate | 15,600,000 | ||
Provision for United States income taxes on earnings of the Company's foreign subsidiaries | 0 | ||
Earliest Tax Year [Member] | |||
Income Tax Disclosure [Line Items] | |||
Operating loss carryforwards, expiration date | 31-Dec-27 | ||
Latest Tax Year [Member] | |||
Income Tax Disclosure [Line Items] | |||
Operating loss carryforwards, expiration date | 31-Dec-33 | ||
Markel Capital Limited [Member] | |||
Income Tax Disclosure [Line Items] | |||
Net operating loss carryforwards | $61,900,000 | ||
Markel Capital Limited [Member] | Earliest Tax Year [Member] | |||
Income Tax Disclosure [Line Items] | |||
Operating loss carryforwards, expiration date | 31-Dec-21 | ||
Markel Capital Limited [Member] | Latest Tax Year [Member] | |||
Income Tax Disclosure [Line Items] | |||
Operating loss carryforwards, expiration date | 31-Dec-32 |
Income_Taxes_Components_Of_Inc
Income Taxes (Components Of Income Before Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Domestic operations | $240,279 | $325,133 | $126,466 |
Foreign operations | 200,099 | 36,610 | 185,584 |
Income Before Income Taxes | $440,378 | $361,743 | $312,050 |
Income_Taxes_Components_Of_Inc1
Income Taxes (Components Of Income Tax Expense) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Domestic, current | $7,573 | $50,683 | $14,340 |
Foreign, current | 24,574 | 23,165 | 1,814 |
Total current tax expense | 32,147 | 73,848 | 16,154 |
Domestic, deferred | 43,673 | 23,906 | -3,734 |
Foreign, deferred | 40,870 | -19,856 | 41,382 |
Total deferred tax expense | 84,543 | 4,050 | 37,648 |
Income tax expense | $116,690 | $77,898 | $53,802 |
Income_Taxes_Reconciliations_O
Income Taxes (Reconciliations Of United States Corporate Income Tax Rate To Effective Tax Rate On Income Before Income Taxes) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
United States corporate tax rate | 35.00% | 35.00% | 35.00% |
Tax-exempt investment income | -9.00% | -9.00% | -12.00% |
Tax credits | -1.00% | 0.00% | 0.00% |
Foreign operations | 0.00% | -4.00% | -5.00% |
Other | 1.00% | 0.00% | -1.00% |
Effective tax rate | 26.00% | 22.00% | 17.00% |
Income_Taxes_Components_Of_Dom
Income Taxes (Components Of Domestic And Foreign Deferred Tax Assets And Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ||
Unpaid losses and loss adjustment expenses | $239,588 | $283,365 |
Life and annuity benefits | 143,102 | 161,209 |
Unearned premiums recognized for income tax purposes | 108,960 | 76,862 |
Net operating loss carryforwards | 36,359 | 43,010 |
Tax credit carryforwards | 32,525 | 33,773 |
Other-than-temporary impairments not yet deductible for income tax purposes | 28,106 | 34,978 |
Differences between financial reporting and tax bases | 132,878 | 139,357 |
Total gross deferred tax assets | 721,518 | 772,554 |
Less valuation allowance | -4,801 | 0 |
Total gross deferred tax assets, net of allowance | 716,717 | 772,554 |
Net unrealized gains on investments | 759,212 | 459,015 |
Amortization of goodwill and other intangible assets | 106,927 | 97,580 |
Deferred policy acquisition costs | 101,766 | 65,543 |
Differences between financial reporting and tax bases | 59,359 | 46,699 |
Total gross deferred tax liabilities | 1,027,264 | 668,837 |
Net deferred tax liability | -310,547 | |
Net deferred tax asset | $103,717 |
Income_Taxes_Reconciliation_Of
Income Taxes (Reconciliation Of Beginning And Ending Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefits, beginning of year | $18,219 | $18,870 |
Increases for tax positions taken in prior years | 3 | 0 |
Lapse of statute of limitations | -522 | -651 |
Unrecognized tax benefits, end of year | $17,700 | $18,219 |
Unpaid_Losses_And_Loss_Adjustm2
Unpaid Losses And Loss Adjustment Expenses (Narrative) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Increase (decrease) in reserves for losses and loss adjustment expenses due to movement in foreign currency rates of exchange | ($127,700,000) | $700,000 | $23,400,000 | |
Net reserves for losses and loss adjustment expenses of acquired insurance companies | 21,193,000 | 3,584,642,000 | 0 | |
Favorable development on prior years' loss reserves | -435,545,000 | -411,129,000 | -399,002,000 | |
Prior years' development on asbestos and environmental exposures | 32,840,000 | 30,128,000 | 38,179,000 | |
Liability for asbestos and environmental claims net incurred loss annual claim review | 27,200,000 | 28,400,000 | 31,100,000 | |
Incurred losses and loss adjustment expenses, current year | 2,638,012,000 | 2,227,402,000 | 1,553,070,000 | |
Reinsurance recoverables | 423,100,000 | 269,400,000 | 165,800,000 | |
Asbestos-related reserves, gross loss incurred | 390,442,000 | 372,978,000 | 360,854,000 | |
Asbestos-related reserves, net loss incurred | 287,723,000 | 272,194,000 | 260,791,000 | 244,772,000 |
Asbestos and environmental net reserves for reported claims | 173,800,000 | |||
Asbestos and environmental reserves incurred but not reported, net | 113,900,000 | |||
Liability for asbestos and environmental claims, net claims paid since inception | 415,700,000 | |||
Liability for asbestos and environmental claims, net litigation paid since inception | 85,700,000 | |||
Hurricane Sandy [Member] | ||||
Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Incurred losses and loss adjustment expenses, current year | 99,600,000 | |||
Reinsurance recoverables | 77,600,000 | |||
Asbestos [Member] | ||||
Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Asbestos-related reserves, gross loss incurred | 290,100,000 | |||
Asbestos-related reserves, net loss incurred | 218,900,000 | |||
Long-Tail Casualty And Professional Liability Witihin U.S. Insurance Segment And Professional Liability And Marine And Energy International Segment [Member] | ||||
Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Favorable development on prior years' loss reserves | ($250,400,000) | ($255,200,000) | ($292,300,000) |
Unpaid_Losses_And_Loss_Adjustm3
Unpaid Losses And Loss Adjustment Expenses (Reconciliation Of Consolidated Reserves For Losses And Loss Adjustment Expenses) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred Claims [Abstract] | |||
Net reserves for losses and loss adjustment expenses, beginning of year | $8,407,642 | $4,592,652 | $4,607,767 |
Foreign currency movements, commutations and other | -137,385 | -780 | 30,359 |
Adjusted net reserves for losses and loss adjustment expenses, beginning of year | 8,270,257 | 4,591,872 | 4,638,126 |
Incurred losses and loss adjustment expenses, current year | 2,638,012 | 2,227,402 | 1,553,070 |
Incurred losses and loss adjustment expenses, prior years | -435,545 | -411,129 | -399,002 |
Total incurred losses and loss adjustment expenses | 2,202,467 | 1,816,273 | 1,154,068 |
Payments, current year | 502,107 | 670,928 | 268,745 |
Payments, prior years | 1,436,851 | 906,302 | 931,955 |
Total payments | 1,938,958 | 1,577,230 | 1,200,700 |
Effect of foreign currency rate changes | -19,476 | -7,915 | 1,158 |
Net reserves for losses and loss adjustment expenses of acquired insurance companies | 21,193 | 3,584,642 | 0 |
Net reserves for losses and loss adjustment expenses, end of year | 8,535,483 | 8,407,642 | 4,592,652 |
Reinsurance recoverable on unpaid losses | 1,868,669 | 1,854,414 | 778,774 |
Gross reserves for losses and loss adjustment expenses, end of year | $10,404,152 | $10,262,056 | $5,371,426 |
Unpaid_Losses_And_Loss_Adjustm4
Unpaid Losses And Loss Adjustment Expenses (Reconciliation Of Consolidated A&E Reserves For Losses And Loss Adjustment Expenses) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred Claims [Abstract] | |||
Net reserves for A&E losses and loss adjustment expenses, beginning of year | $272,194 | $260,791 | $244,772 |
Commutations and other | 115 | -5,067 | -897 |
Adjusted net reserves for A&E losses and loss adjustment expenses, beginning of year | 272,309 | 255,724 | 243,875 |
Incurred losses and loss adjustment expenses | 32,840 | 30,128 | 38,179 |
Payments | -17,426 | -13,658 | -21,263 |
Net reserves for A&E losses and loss adjustment expenses, end of year | 287,723 | 272,194 | 260,791 |
Reinsurance recoverable on unpaid losses | 102,719 | 100,784 | 100,063 |
Gross reserves for A&E losses and loss adjustment expenses, end of year | $390,442 | $372,978 | $360,854 |
Life_And_Annuity_Benefits_Narr
Life And Annuity Benefits (Narrative) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Liability for Future Policy Benefits [Abstract] | |
Average reserve valuation rate | 2.30% |
Life and annuity benefits reserve single contract concentration | 33.50% |
Annuities included in life and annuity benefits subject to discretionary withdrawal | $0 |
Life_And_Annuity_Benefits_Sche
Life And Annuity Benefits (Schedule Of Life And Annuity Benefits) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Liability for Future Policy Benefits [Abstract] | ||
Life | $182,604 | $190,765 |
Annuities | 1,031,946 | 1,194,558 |
Accident and health | 91,268 | 101,251 |
Total life and annuity benefits | $1,305,818 | $1,486,574 |
Senior_LongTerm_Debt_And_Other2
Senior Long-Term Debt And Other Debt (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 01, 2014 | Mar. 08, 2013 | 1-May-13 | Apr. 16, 2007 | Sep. 27, 2010 | |
Debt Instrument [Line Items] | ||||||||
Senior long-term debt and other debt, estimated fair value | $2,493,000,000 | $2,372,000,000 | ||||||
Interest on senior long-term debt and other debt | 125,800,000 | 114,500,000 | 92,900,000 | |||||
Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, capacity available | 300,000,000 | |||||||
Line of credit facility, potential increased maximum capacity | 500,000,000 | |||||||
Line of credit facility, unused capacity, commitment fee, percent | 0.23% | |||||||
Borrowings outstanding under the facility | 0 | |||||||
Previous line of credit facility, borrowing capacity | 300,000,000 | |||||||
Senior Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, capacity available | 250,000,000 | |||||||
Line of credit facility, unused capacity, commitment fee, percent | 0.13% | |||||||
Borrowings outstanding under the facility | 0 | 0 | ||||||
Previous line of credit facility, borrowing capacity | 900,000,000 | |||||||
Credit facility, maximum capacity | 650,000,000 | |||||||
Credit facility, potential increased maximum capacity | 1,400,000,000 | |||||||
Line of credit facility, outstanding balance fee, percent | 0.40% | |||||||
Credit facility, letters of credit issued and outstanding | 374,500,000 | |||||||
Secured Letters Of Credit [Member] | Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, capacity available | 200,000,000 | |||||||
Unsecured Senior Notes [Member] | 6.80% Unsecured Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, interest rate | 6.80% | |||||||
Debt instrument, principal amount outstanding | 246,700,000 | |||||||
Unsecured Senior Notes [Member] | 3.625% Unsecured Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, interest rate | 3.63% | 3.63% | ||||||
Debt instrument, face amount | 250,000,000 | |||||||
Unsecured Senior Notes [Member] | 5.0% Unsecured Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, interest rate | 5.00% | 5.00% | ||||||
Debt instrument, face amount | 250,000,000 | |||||||
Unsecured Senior Notes [Member] | 3.625% And 5.0% Unsecured Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Net proceeds from issuance of debt | 491,200,000 | |||||||
Unsecured Senior Notes [Member] | 7.20% Unsecured Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, interest rate | 7.20% | 7.20% | ||||||
Debt instrument, principal amount outstanding | 90,600,000 | |||||||
Debt instrument, face amount | 100,000,000 | |||||||
Debt instrument, estimated fair value | 95,800,000 | |||||||
Unsecured Senior Notes [Member] | 6.25% Unsecured Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, interest rate | 6.25% | 6.25% | ||||||
Debt instrument, face amount | 350,000,000 | |||||||
Debt instrument, estimated fair value | $416,600,000 | |||||||
Unsecured Senior Notes [Member] | 7.35% Unsecured Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, interest rate | 7.35% | 7.35% |
Senior_LongTerm_Debt_And_Other3
Senior Long-Term Debt And Other Debt (Summary Of Senior Long-Term Debt And Other Debt) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ||
Senior long-term debt and other debt | $2,253,594 | $2,256,227 |
Unsecured Senior Notes [Member] | 7.20% Unsecured Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured senior notes | 94,155 | 95,451 |
Debt instrument, interest rate | 7.20% | 7.20% |
Debt Instrument, unamortized premium | 3,526 | 4,822 |
Unsecured Senior Notes [Member] | 7.125% Unsecured Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured senior notes | 348,657 | 348,374 |
Debt instrument, interest rate | 7.13% | 7.13% |
Debt instrument, unamortized discount | 1,343 | 1,626 |
Unsecured Senior Notes [Member] | 6.25% Unsecured Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured senior notes | 403,172 | 411,273 |
Debt instrument, interest rate | 6.25% | 6.25% |
Debt Instrument, unamortized premium | 53,172 | 61,273 |
Unsecured Senior Notes [Member] | 5.35% Unsecured Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured senior notes | 248,675 | 248,469 |
Debt instrument, interest rate | 5.35% | 5.35% |
Debt instrument, unamortized discount | 1,325 | 1,531 |
Unsecured Senior Notes [Member] | 4.90% Unsecured Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured senior notes | 347,905 | 347,626 |
Debt instrument, interest rate | 4.90% | 4.90% |
Debt instrument, unamortized discount | 2,095 | 2,374 |
Unsecured Senior Notes [Member] | 3.625% Unsecured Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured senior notes | 248,341 | 248,140 |
Debt instrument, interest rate | 3.63% | 3.63% |
Debt instrument, unamortized discount | 1,659 | 1,860 |
Unsecured Senior Notes [Member] | 7.35% Unsecured Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured senior notes | 197,922 | 197,815 |
Debt instrument, interest rate | 7.35% | 7.35% |
Debt instrument, unamortized discount | 2,078 | 2,185 |
Unsecured Senior Notes [Member] | 5.0% Unsecured Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured senior notes | 243,673 | 243,449 |
Debt instrument, interest rate | 5.00% | 5.00% |
Debt instrument, unamortized discount | 6,327 | 6,551 |
Subsidiary And Other Debt [Member] | ||
Debt Instrument [Line Items] | ||
Senior long-term debt and other debt | $121,094 | $115,630 |
Debt instrument, interest rate, percentage rate range, minimum | 1.60% | |
Debt instrument, interest rate, percentage rate range, maximum | 6.50% |
Senior_LongTerm_Debt_And_Other4
Senior Long-Term Debt And Other Debt (Summary Of Future Principal Payments Due At Maturity On Senior Long-Term Debt And Other Debt) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ||
2015 | $23,340 | |
2016 | 21,850 | |
2017 | 112,942 | |
2018 | 2,348 | |
2019 | 352,199 | |
2020 and thereafter | 1,699,044 | |
Total principal payments | 2,211,723 | |
Net unamortized premium | 41,871 | |
Senior long-term debt and other debt | $2,253,594 | $2,256,227 |
Shareholders_Equity_Narrative_
Shareholders' Equity (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 8 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 1-May-13 | 31-May-13 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 | |||
Common stock, par value | $0 | $0 | $0 | |||
Common stock, shares issued | 13,961,675 | 13,985,620 | 13,985,620 | |||
Common stock, shares outstanding | 13,961,675 | 13,985,620 | 13,985,620 | |||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | |||
Preferred stock, par value | $0 | $0 | $0 | |||
Preferred stock, shares issued | 0 | 0 | 0 | |||
Preferred stock, shares outstanding | 0 | 0 | 0 | |||
November 2013 Share Repurchase Program [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Board of Directors approved the repurchase of common stock under a share repurchase program, maximum | $300,000,000 | |||||
Cumulative number of common stock shares repurchased | 34,385 | |||||
Cumulative stock repurchased value | 20,500,000 | |||||
Employee Stock Purchase And Bonus Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Bonus calculation percentage based on the value of stocks acquired by employees | 10.00% | |||||
Percentage of bonus shares award to loan program participants | 5.00% | |||||
Shares authorized under Employee Stock Purchase and Bonus Plan | 100,000 | |||||
Shares available for purchase | 20,740 | 33,454 | 33,454 | |||
Loans outstanding under Employee Stock Purchase and Bonus Plan | 15,000,000 | 12,800,000 | 12,800,000 | |||
2012 Compensation Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for issuance | 145,253 | |||||
2012 Compensation Plan [Member] | Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of restricted stock units awarded | 28,280 | |||||
Weighted average grant-date fair value, share-based awards | $583.74 | $517.24 | $412.04 | |||
Unrecognized compensation cost related to nonvested share-based awards | 22,800,000 | |||||
Weighted average remaining service period of share-based awards | 2 years 2 months | |||||
Fair value of the vested share-based awards | 4,200,000 | 2,500,000 | 4,700,000 | |||
2012 Compensation Plan [Member] | Restricted Stock Units (RSUs) [Member] | Non-Employee Directors [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of restricted stock units awarded | 1,413 | |||||
Restricted stock awards, year awards vest | 2015 | |||||
2012 Compensation Plan [Member] | Restricted Stock Units (RSUs) [Member] | Performance Based [Member] | Associates And Executive Officers [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares of common stock issuable for each vested restricted stock unit | 1 | |||||
Number of restricted stock units awarded | 17,917 | |||||
Restricted stock awards, vesting period | 3 years | |||||
2012 Compensation Plan [Member] | Restricted Stock Units (RSUs) [Member] | Rentention And Hiring [Member] | Associates And Executive Officers [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares of common stock issuable for each vested restricted stock unit | 1 | |||||
Number of restricted stock units awarded | 8,950 | |||||
Restricted stock units, grant date fair value | 5,400,000 | |||||
Restricted stock awards, vesting period | 3 years | |||||
Alterra Equity Award Plans [Member] | Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock units, grant date fair value | 81,600,000 | |||||
Weighted average grant-date fair value, share-based awards | $529.59 | |||||
Weighted average remaining service period of share-based awards | 1 year | 1 year | ||||
Fair value of the vested share-based awards | 18,100,000 | 41,300,000 | ||||
Number of awards issued in connection with acquisition | 154,103 | |||||
Recognized compensation expense related to vested restricted stock awards as of the acquisition date | -61,000,000 | |||||
Unrecognized compensation on unvested restricted stock and restricted stock units | -20,600,000 | |||||
Recognized compensation expense related to restricted stock awards | 3,900,000 | 12,700,000 | ||||
Unrecognized compensation cost related to nonvested restricted stock awards | 600,000 | |||||
Alterra Equity Award Plans [Member] | Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of awards issued in connection with acquisition | 101,875 | |||||
Weighted average exercise price of options issued | $398.96 | |||||
Weighted average grant-date fair value of options | $140.08 | |||||
Expected annual volatility, assumption used in pricing model | 19.04% | |||||
Risk-free rate, assumption used in pricing model | 0.20% | |||||
Expected term, assumption used in pricing model | 2 years | |||||
Number of options exercised under option plans | 13,636 | 65,934 | ||||
Cash proceeds resulting from exercise of stock options | 5,600,000 | 24,300,000 | ||||
Current tax benefits resulting from exercise of stock options | 800,000 | 800,000 | ||||
Intrinsic value of options exercised | $2,500,000 | $9,400,000 |
Shareholders_Equity_Schedule_O
Shareholders' Equity (Schedule Of Net Income Per Share) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Line Items] | |||||||||||||||
Net income to shareholders | $117,595 | $75,803 | $40,068 | $87,716 | $98,764 | $65,599 | $27,756 | $88,902 | $56,792 | $49,653 | $89,687 | $57,253 | $321,182 | $281,021 | $253,385 |
Adjustment of redeemable noncontrolling interests | -8,186 | 1,963 | -3,101 | ||||||||||||
Adjusted net income to shareholders | $312,996 | $282,984 | $250,284 | ||||||||||||
Basic common shares outstanding | 13,984 | 12,538 | 9,640 | ||||||||||||
Diluted shares outstanding | 14,057 | 12,586 | 9,666 | ||||||||||||
Basic net income per share (dollars per share) | $8.10 | $5.33 | $2.67 | $6.28 | $6.98 | $4.69 | $2.24 | $9.53 | $6.25 | $5.33 | $8.44 | $5.94 | $22.38 | $22.57 | $25.96 |
Diluted net income per share (dollars per share) | $8.05 | $5.30 | $2.66 | $6.25 | $6.95 | $4.67 | $2.24 | $9.50 | $6.23 | $5.32 | $8.42 | $5.92 | $22.27 | $22.48 | $25.89 |
Stock Options [Member] | |||||||||||||||
Earnings Per Share [Line Items] | |||||||||||||||
Dilutive potential common shares | 11 | 12 | 6 | ||||||||||||
Restricted Stock Units (RSUs) [Member] | |||||||||||||||
Earnings Per Share [Line Items] | |||||||||||||||
Dilutive potential common shares | 62 | 36 | 20 |
Shareholders_Equity_Summary_Of
Shareholders' Equity (Summary Of Nonvested Share-Based Awards) (Details) (Restricted Stock Units (RSUs) [Member], USD $) | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 1-May-13 | |
2012 Compensation Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Number of awards, nonvested awards, beginning balance | 98,711 | |||
Number of awards, granted | 28,280 | |||
Number of awards, vested | -8,479 | |||
Number of awards, forfeited | -380 | |||
Number of awards, nonvested awards, ending balance | 118,132 | 98,711 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Weighted average grant-date fair value, nonvested awards, beginning balance | $449.93 | |||
Weighted average grant-date fair value, granted | $583.74 | $517.24 | $412.04 | |
Weighted average grant-date fair value, vested | $491.51 | |||
Weighted average grant-date fair value, forfeited | $411 | |||
Weighted average grant-date fair value, nonvested awards, ending balance | $479.11 | $449.93 | ||
Alterra Equity Award Plans [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Number of awards, nonvested awards, beginning balance | 68,411 | |||
Number of awards, vested | -34,119 | |||
Number of awards, forfeited | -377 | |||
Number of awards, nonvested awards, ending balance | 33,915 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Weighted average grant-date fair value, nonvested awards, beginning balance | $529.59 | |||
Weighted average grant-date fair value, granted | $529.59 | |||
Weighted average grant-date fair value, vested | $529.59 | |||
Weighted average grant-date fair value, forfeited | $529.59 | |||
Weighted average grant-date fair value, nonvested awards, ending balance | $529.59 |
Shareholders_Equity_Summary_Of1
Shareholders' Equity (Summary Of Options) (Details) (Alterra Equity Award Plans [Member], Stock Options [Member], USD $) | 8 Months Ended | 12 Months Ended |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 |
Alterra Equity Award Plans [Member] | Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding and exercisable, beginning balance, number of shares | 35,941 | |
Exercised, number of shares | 65,934 | 13,636 |
Outstanding and exercisable, ending balance, number of shares | 35,941 | 22,305 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||
Outstanding and exercisable, January 1, 2014, weighted average exercise price (dollars per share) | $412.39 | |
Exercised, weighted average exercise price (dollars per share) | $413.06 | |
Outstanding and exercisable, December 31, 2014, weighted average exercise price (dollars per share) | $412.39 | $411.98 |
Outstanding and exercisable, December 31, 2014, weighted average remaining contractual term | 1 year 8 months 16 days | |
Outstanding and exercisable, December 31, 2014, intrinsic value | $6.10 |
Other_Comprehensive_Income_Cha
Other Comprehensive Income (Change In Accumulated Other Comprehensive Income By Component, Net Of Taxes And Noncontrolling Interests) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income, beginning balance | $1,089,805 | $911,337 | $660,920 |
Other comprehensive income (loss) before reclassifications | 639,147 | 217,750 | 272,474 |
Amounts reclassified from accumulated other comprehensive income | -24,395 | -39,282 | -22,057 |
Total other comprehensive income (loss) | 614,752 | 178,468 | 250,417 |
Accumulated other comprehensive income, ending balance | 1,704,557 | 1,089,805 | 911,337 |
Unrealized Holding Gains On Available-For-Sale Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income, beginning balance | 1,131,507 | 946,933 | 704,719 |
Other comprehensive income (loss) before reclassifications | 687,908 | 225,404 | 266,265 |
Amounts reclassified from accumulated other comprehensive income | -26,161 | -40,830 | -24,051 |
Total other comprehensive income (loss) | 661,747 | 184,574 | 242,214 |
Accumulated other comprehensive income, ending balance | 1,793,254 | 1,131,507 | 946,933 |
Foreign Currency [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income, beginning balance | -11,246 | -1,075 | -2,614 |
Other comprehensive income (loss) before reclassifications | -32,245 | -10,171 | 1,539 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0 |
Total other comprehensive income (loss) | -32,245 | -10,171 | 1,539 |
Accumulated other comprehensive income, ending balance | -43,491 | -11,246 | -1,075 |
Net Actuarial Pension Loss [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income, beginning balance | -30,456 | -34,521 | -41,185 |
Other comprehensive income (loss) before reclassifications | -16,516 | 2,517 | 4,670 |
Amounts reclassified from accumulated other comprehensive income | 1,766 | 1,548 | 1,994 |
Total other comprehensive income (loss) | -14,750 | 4,065 | 6,664 |
Accumulated other comprehensive income, ending balance | ($45,206) | ($30,456) | ($34,521) |
Other_Comprehensive_Income_Sch
Other Comprehensive Income (Schedule Of Tax Expense (Benefit) Of Other Comprehensive Income) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Comprehensive Income (Loss), Tax [Abstract] | |||
Net holding gains arising during the period | $328,564 | $93,837 | $122,524 |
Change in unrealized other-than-temporary impairment losses on fixed maturities arising during the period | 614 | -34 | -49 |
Reclassification adjustments for net gains included in net income | -9,890 | -16,382 | -10,881 |
Change in net unrealized gains on investments | 319,288 | 77,421 | 111,594 |
Change in foreign currency translation adjustments | 1,918 | -1,619 | -446 |
Change in net actuarial pension loss | -3,687 | 1,015 | 1,991 |
Total | $317,519 | $76,817 | $113,139 |
Other_Comprehensive_Income_Amo
Other Comprehensive Income (Amounts Reclassified From Accumulated Other Comprehensive Income Into Income, By Component) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reclassification Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||
Other-than-temporary impairment losses recognized in net income | ($4,784) | ($4,706) | ($12,078) | ||||||||||||
Net realized investment gains, excluding other-than-temporary impairment losses | 50,784 | 67,858 | 43,671 | ||||||||||||
Income Before Income Taxes | 440,378 | 361,743 | 312,050 | ||||||||||||
Underwriting, acquisition and insurance expenses | -1,460,882 | -1,312,312 | -929,472 | ||||||||||||
Income Taxes | -116,690 | -77,898 | -53,802 | ||||||||||||
Net Income | 118,222 | 76,824 | 41,141 | 87,501 | 98,939 | 66,967 | 28,676 | 89,263 | 58,093 | 51,674 | 90,768 | 57,713 | 323,688 | 283,845 | 258,248 |
Reclassification Out Of Accumulated Other Comprehensive Income [Member] | Unrealized Holding Gains On Available-For-Sale Securities [Member] | |||||||||||||||
Reclassification Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||
Other-than-temporary impairment losses recognized in net income | -4,784 | -4,706 | -12,078 | ||||||||||||
Net realized investment gains, excluding other-than-temporary impairment losses | 40,835 | 61,918 | 47,010 | ||||||||||||
Income Before Income Taxes | 36,051 | 57,212 | 34,932 | ||||||||||||
Income Taxes | -9,890 | -16,382 | -10,881 | ||||||||||||
Net Income | 26,161 | 40,830 | 24,051 | ||||||||||||
Reclassification Out Of Accumulated Other Comprehensive Income [Member] | Net Actuarial Pension Loss [Member] | |||||||||||||||
Reclassification Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||
Underwriting, acquisition and insurance expenses | -2,084 | -1,934 | -2,590 | ||||||||||||
Income Taxes | 318 | 386 | 596 | ||||||||||||
Net Income | ($1,766) | ($1,548) | ($1,994) |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain on derivative instrument recognized in earnings | $2,230 | $10,460 | $16,641 |
Fair value, level 1 to level 2 transfers, amount | 0 | 0 | |
Fair value, level 2 to level 1 transfers, amount | 0 | 0 | |
Assets measured at fair value on a non-recurring basis | 0 | 0 | |
Liabilities measured at fair value on a non-recurring basis | $0 | $0 | |
Short-Term Investments [Member] | Maximum [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment maturity period | 1 year |
Fair_Value_Measurements_Balanc
Fair Value Measurements (Balances Of Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, estimated fair value | $10,422,882 | $10,142,536 |
Equity securities | 4,137,576 | 3,251,798 |
Short-term investments | 1,594,849 | 1,452,288 |
Total investments available-for-sale | 16,155,307 | 14,846,622 |
Fixed Maturities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments available-for-sale | 10,422,882 | 10,142,536 |
U.S. Treasury Securities And Obligations Of U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments available-for-sale | 673,262 | 1,194,231 |
Obligations Of States, Municipalities And Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments available-for-sale | 4,317,547 | 3,075,715 |
Foreign Governments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments available-for-sale | 1,611,921 | 1,461,054 |
Commercial Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments available-for-sale | 430,627 | 367,821 |
Residential Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments available-for-sale | 982,847 | 870,248 |
Asset-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments available-for-sale | 99,490 | 188,289 |
Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments available-for-sale | 2,307,188 | 2,985,178 |
Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments available-for-sale | 4,137,576 | 3,251,798 |
Insurance, Banks And Other Financial Institutions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments available-for-sale | 1,311,925 | 1,015,083 |
Industrial, Consumer And All Other [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments available-for-sale | 2,825,651 | 2,236,715 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, estimated fair value | 10,422,882 | 10,142,536 |
Equity securities | 4,137,576 | 3,251,798 |
Short-term investments | 1,594,849 | 1,452,288 |
Total investments available-for-sale | 16,155,307 | 14,846,622 |
Derivative contracts | 2,230 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, estimated fair value | 0 | 0 |
Equity securities | 4,137,576 | 3,251,798 |
Short-term investments | 1,469,975 | 1,312,561 |
Total investments available-for-sale | 5,607,551 | 4,564,359 |
Derivative contracts | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, estimated fair value | 10,422,882 | 10,142,536 |
Equity securities | 0 | 0 |
Short-term investments | 124,874 | 139,727 |
Total investments available-for-sale | 10,547,756 | 10,282,263 |
Derivative contracts | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, estimated fair value | 0 | 0 |
Equity securities | 0 | 0 |
Short-term investments | 0 | 0 |
Total investments available-for-sale | 0 | 0 |
Derivative contracts | 2,230 | |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury Securities And Obligations Of U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, estimated fair value | 673,262 | 1,194,231 |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury Securities And Obligations Of U.S. Government Agencies [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, estimated fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury Securities And Obligations Of U.S. Government Agencies [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, estimated fair value | 673,262 | 1,194,231 |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury Securities And Obligations Of U.S. Government Agencies [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, estimated fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Obligations Of States, Municipalities And Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, estimated fair value | 4,317,547 | 3,075,715 |
Fair Value, Measurements, Recurring [Member] | Obligations Of States, Municipalities And Political Subdivisions [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, estimated fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Obligations Of States, Municipalities And Political Subdivisions [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, estimated fair value | 4,317,547 | 3,075,715 |
Fair Value, Measurements, Recurring [Member] | Obligations Of States, Municipalities And Political Subdivisions [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, estimated fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Foreign Governments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, estimated fair value | 1,611,921 | 1,461,054 |
Fair Value, Measurements, Recurring [Member] | Foreign Governments [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, estimated fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Foreign Governments [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, estimated fair value | 1,611,921 | 1,461,054 |
Fair Value, Measurements, Recurring [Member] | Foreign Governments [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, estimated fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Commercial Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, estimated fair value | 430,627 | 367,821 |
Fair Value, Measurements, Recurring [Member] | Commercial Mortgage-Backed Securities [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, estimated fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Commercial Mortgage-Backed Securities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, estimated fair value | 430,627 | 367,821 |
Fair Value, Measurements, Recurring [Member] | Commercial Mortgage-Backed Securities [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, estimated fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Residential Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, estimated fair value | 982,847 | 870,248 |
Fair Value, Measurements, Recurring [Member] | Residential Mortgage-Backed Securities [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, estimated fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Residential Mortgage-Backed Securities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, estimated fair value | 982,847 | 870,248 |
Fair Value, Measurements, Recurring [Member] | Residential Mortgage-Backed Securities [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, estimated fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Asset-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, estimated fair value | 99,490 | 188,289 |
Fair Value, Measurements, Recurring [Member] | Asset-Backed Securities [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, estimated fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Asset-Backed Securities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, estimated fair value | 99,490 | 188,289 |
Fair Value, Measurements, Recurring [Member] | Asset-Backed Securities [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, estimated fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, estimated fair value | 2,307,188 | 2,985,178 |
Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, estimated fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, estimated fair value | 2,307,188 | 2,985,178 |
Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, estimated fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Insurance, Banks And Other Financial Institutions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 1,311,925 | 1,015,083 |
Fair Value, Measurements, Recurring [Member] | Insurance, Banks And Other Financial Institutions [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 1,311,925 | 1,015,083 |
Fair Value, Measurements, Recurring [Member] | Insurance, Banks And Other Financial Institutions [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Insurance, Banks And Other Financial Institutions [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Industrial, Consumer And All Other [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 2,825,651 | 2,236,715 |
Fair Value, Measurements, Recurring [Member] | Industrial, Consumer And All Other [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 2,825,651 | 2,236,715 |
Fair Value, Measurements, Recurring [Member] | Industrial, Consumer And All Other [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Industrial, Consumer And All Other [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | $0 | $0 |
Reinsurance_Narrative_Details
Reinsurance (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
reinsurer | reinsurer | ||
Reinsurance Disclosures [Line Items] | |||
Number of largest company reinsurers | 10 | 10 | |
Reinsurance recoverables | $423.10 | $269.40 | $165.80 |
Percentage of ceded earned premiums to gross earned premiums | 19.00% | 18.00% | 12.00% |
Percentage of assumed earned premiums to net earned premiums | 34.00% | 31.00% | 18.00% |
Ten Largest Reinsurers [Member] | |||
Reinsurance Disclosures [Line Items] | |||
Recoverable balances as a percentage of the total balance | 63.00% | 62.00% | |
Fairfax Financial Group [Member] | |||
Reinsurance Disclosures [Line Items] | |||
Recoverable balances as a percentage of the total balance | 10.00% |
Reinsurance_Reinsurance_Allowa
Reinsurance (Reinsurance Allowance For Doubtful Accounts) (Details) (Allowance For Reinsurance Recoverable [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance For Reinsurance Recoverable [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Reinsurance allowance, beginning of year | $76,210 | $71,148 | $69,067 |
Additions | 10,316 | 13,621 | 24,179 |
Deductions | -26,713 | -8,559 | -22,098 |
Reinsurance allowance, end of year | $59,813 | $76,210 | $71,148 |
Reinsurance_Effect_Of_Reinsura
Reinsurance (Effect Of Reinsurance On Premiums Written And Earned) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reinsurance Disclosures [Abstract] | |||
Direct premiums written | $3,478,273 | $3,143,957 | $2,115,353 |
Direct premiums earned | 3,443,912 | 2,947,812 | 2,057,735 |
Assumed premiums written | 1,327,240 | 776,269 | 398,328 |
Assumed premiums earned | 1,298,371 | 1,016,853 | 376,186 |
Ceded premiums written | -888,498 | -683,543 | -299,555 |
Ceded premiums earned | -901,371 | -733,049 | -286,793 |
Net premiums written | 3,917,015 | 3,236,683 | 2,214,126 |
Net premiums earned | $3,840,912 | $3,231,616 | $2,147,128 |
Commitments_And_Contingencies_1
Commitments And Contingencies (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Commitments and Contingencies Disclosure [Abstract] | |||
Maximum remaining term of noncancelable operating leases | 20 years | ||
Rental expense | $42.70 | $35.30 | $28.10 |
Commitments_And_Contingencies_2
Commitments And Contingencies (Minimum Annual Rental Commitments) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
2015 | $28,434 |
2016 | 23,636 |
2017 | 28,124 |
2018 | 26,549 |
2019 | 25,169 |
2020 and thereafter | 151,000 |
Total | $282,912 |
Statutory_Financial_Informatio2
Statutory Financial Information (Narrative) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Statutory Accounting Practices [Line Items] | |
Amount of cash and investments held as funds at Lloyd's | 784.6 |
United States [Member] | |
Statutory Accounting Practices [Line Items] | |
Amount available for dividend payment | 310.6 |
United Kingdom [Member] | |
Statutory Accounting Practices [Line Items] | |
Advance notice to declare and pay dividend under PRA | 14 days |
Bermuda [Member] | |
Statutory Accounting Practices [Line Items] | |
Amount available for dividend payment | 472.7 |
Statutory_Financial_Informatio3
Statutory Financial Information (Actual Statutory Capital And Surplus) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
United States [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Actual statutory capital and surplus | $2,619,001 | $2,396,530 |
United Kingdom [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Actual statutory capital and surplus | 604,564 | 510,426 |
Bermuda [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Actual statutory capital and surplus | 1,890,920 | 1,503,004 |
Other Countries [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Actual statutory capital and surplus | $177,738 | $172,447 |
Statutory_Financial_Informatio4
Statutory Financial Information (Statutory Net Income (Loss)) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
United States [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income (loss) | $212,909 | $235,009 | $127,179 |
United Kingdom [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income (loss) | 70,632 | 109,983 | 82,573 |
Bermuda [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income (loss) | 162,809 | 249,772 | |
Other Countries [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income (loss) | $1,271 | ($12,617) |
Segment_Reporting_Disclosures_1
Segment Reporting Disclosures (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
segment | |||
Revenue, Major Customer [Line Items] | |||
Number of reportable ongoing underwriting segments | 3 | ||
Percentage of gross premiums written | 100.00% | 100.00% | 100.00% |
Top Three Independent Brokers [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of gross premiums written | 28.00% | 24.00% | |
Top Three Independent Brokers [Member] | Reinsurance [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of gross premiums written | 68.00% | 68.00% | |
Top Three Independent Brokers [Member] | International Insurance [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of gross premiums written | 41.00% | 42.00% |
Segment_Reporting_Disclosures_2
Segment Reporting Disclosures (Summary Of Gross Written Premiums By Country) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Gross written premiums | $4,805,513 | $3,920,226 | $2,513,681 |
Percentage of gross premiums written | 100.00% | 100.00% | 100.00% |
United States [Member] | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | 3,523,239 | 2,934,868 | 1,768,011 |
Percentage of gross premiums written | 73.00% | 75.00% | 70.00% |
United Kingdom [Member] | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | 441,669 | 245,143 | 147,891 |
Percentage of gross premiums written | 9.00% | 6.00% | 6.00% |
Canada [Member] | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | 125,617 | 128,420 | 120,542 |
Percentage of gross premiums written | 3.00% | 3.00% | 5.00% |
Other Countries [Member] | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | $714,988 | $611,795 | $477,237 |
Percentage of gross premiums written | 15.00% | 16.00% | 19.00% |
Segment_Reporting_Disclosures_3
Segment Reporting Disclosures (Company's Segment Disclosures) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Segment Reporting Information [Line Items] | ||||||
Gross premium volume | $4,805,513 | $3,920,226 | $2,513,681 | |||
Net written premiums | 3,917,015 | 3,236,683 | 2,214,126 | |||
Earned premiums | 3,840,912 | 3,231,616 | 2,147,128 | |||
Losses and loss adjustment expenses, current accident year | -2,638,012 | -2,227,402 | -1,553,070 | |||
Losses and loss adjustment expenses, prior accident years | 435,545 | 411,129 | 399,002 | |||
Transaction costs and other acquisition-related expenses | 0 | [1] | -75,140 | [1],[2] | 0 | [1] |
Transaction costs | -15,981 | [1] | ||||
Other acquisition related costs, severance costs | -31,734 | [1] | ||||
Other acquisition related costs, stay bonuses | -14,804 | [1] | ||||
Other acquisition related costs, other compensation costs | -12,621 | [1] | ||||
Amortization of policy acquisition costs | -654,916 | -471,915 | -428,109 | |||
Prospective adoption of FASB ASU No. 2010-26 | 0 | [3] | 0 | [3] | -43,093 | [3] |
Other amortization of policy acquisition costs | -654,916 | -471,915 | -385,016 | |||
Other operating expenses | -805,966 | -765,257 | -501,363 | |||
Underwriting profit (loss) | 177,563 | 103,031 | 63,588 | |||
Net investment income | 363,230 | 317,373 | 282,107 | |||
Net realized investment gains | 46,000 | 63,152 | 31,593 | |||
Other revenues (insurance) | 28,632 | 24,494 | 49,932 | |||
Other expenses (insurance) | -62,834 | -50,278 | -45,292 | |||
Segment profit (loss) | 552,591 | 457,772 | 381,928 | |||
Other revenues (non-insurance) | 854,893 | 686,448 | 489,352 | |||
Other expenses (non-insurance) | -792,037 | -613,250 | -432,956 | |||
Amortization of intangible assets | -57,627 | -55,223 | -33,512 | |||
Interest expense | -117,442 | -114,004 | -92,762 | |||
Income Before Income Taxes | 440,378 | 361,743 | 312,050 | |||
U.S. GAAP combined ratio | 95.00% | [4] | 97.00% | [4] | 97.00% | [4] |
U.S. Insurance [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Gross premium volume | 2,493,823 | 2,252,739 | 1,595,849 | |||
Net written premiums | 2,071,466 | 1,915,770 | 1,418,579 | |||
Earned premiums | 2,022,860 | 1,727,766 | 1,360,229 | |||
Losses and loss adjustment expenses, current accident year | -1,340,129 | -1,173,258 | -984,018 | |||
Losses and loss adjustment expenses, prior accident years | 216,557 | 298,113 | 225,870 | |||
Transaction costs and other acquisition-related expenses | -12,724 | [2] | ||||
Amortization of policy acquisition costs | -403,233 | -287,795 | ||||
Prospective adoption of FASB ASU No. 2010-26 | -31,033 | [3] | ||||
Other amortization of policy acquisition costs | -243,466 | |||||
Other operating expenses | -396,737 | -409,886 | -327,682 | |||
Underwriting profit (loss) | 99,318 | 142,216 | -100 | |||
Net investment income | 0 | 0 | 0 | |||
Net realized investment gains | 0 | 0 | 0 | |||
Other revenues (insurance) | 2,478 | 13,648 | 44,968 | |||
Other expenses (insurance) | -5,149 | -17,087 | -41,425 | |||
Segment profit (loss) | 96,647 | 138,777 | 3,443 | |||
U.S. GAAP combined ratio | 95.00% | [4] | 92.00% | [4] | 100.00% | [4] |
International Insurance [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Gross premium volume | 1,200,403 | 1,101,099 | 788,092 | |||
Net written premiums | 889,336 | 840,050 | 677,344 | |||
Earned premiums | 909,679 | 833,984 | 672,405 | |||
Losses and loss adjustment expenses, current accident year | -660,409 | -588,759 | -492,177 | |||
Losses and loss adjustment expenses, prior accident years | 166,615 | 130,660 | 172,758 | |||
Transaction costs and other acquisition-related expenses | -13,366 | [2] | ||||
Amortization of policy acquisition costs | -141,394 | -138,626 | ||||
Prospective adoption of FASB ASU No. 2010-26 | -10,597 | [3] | ||||
Other amortization of policy acquisition costs | -130,637 | |||||
Other operating expenses | -207,175 | -171,666 | -153,545 | |||
Underwriting profit (loss) | 67,316 | 52,227 | 58,207 | |||
Net investment income | 0 | 0 | 0 | |||
Net realized investment gains | 0 | 0 | 0 | |||
Other revenues (insurance) | 21,827 | 4,284 | 4,964 | |||
Other expenses (insurance) | -18,706 | -5,065 | -3,867 | |||
Segment profit (loss) | 70,437 | 51,446 | 59,304 | |||
U.S. GAAP combined ratio | 93.00% | [4] | 94.00% | [4] | 91.00% | [4] |
Reinsurance [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Gross premium volume | 1,112,728 | 566,348 | 129,744 | |||
Net written premiums | 956,584 | 480,822 | 118,208 | |||
Earned premiums | 908,385 | 669,826 | 114,499 | |||
Losses and loss adjustment expenses, current accident year | -637,474 | -465,385 | -76,875 | |||
Losses and loss adjustment expenses, prior accident years | 79,951 | 12,938 | 21,449 | |||
Transaction costs and other acquisition-related expenses | -49,050 | [2] | ||||
Amortization of policy acquisition costs | -110,289 | -45,494 | ||||
Prospective adoption of FASB ASU No. 2010-26 | -1,463 | [3] | ||||
Other amortization of policy acquisition costs | -10,913 | |||||
Other operating expenses | -201,673 | -183,817 | -19,933 | |||
Underwriting profit (loss) | 38,900 | -60,982 | 26,764 | |||
Net investment income | 0 | 0 | 0 | |||
Net realized investment gains | 0 | 0 | 0 | |||
Other revenues (insurance) | 2,696 | 5,432 | 0 | |||
Other expenses (insurance) | -1,847 | 0 | 0 | |||
Segment profit (loss) | 39,749 | -55,550 | 26,764 | |||
U.S. GAAP combined ratio | 96.00% | [4] | 109.00% | [4] | 77.00% | [4] |
Other Insurance (Discontinued Lines) [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Gross premium volume | -1,441 | 40 | -4 | |||
Net written premiums | -371 | 41 | -5 | |||
Earned premiums | -12 | 40 | -5 | |||
Losses and loss adjustment expenses, current accident year | 0 | 0 | 0 | |||
Losses and loss adjustment expenses, prior accident years | -27,578 | -30,582 | -21,075 | |||
Transaction costs and other acquisition-related expenses | 0 | [2] | ||||
Amortization of policy acquisition costs | 0 | 0 | ||||
Prospective adoption of FASB ASU No. 2010-26 | 0 | [3] | ||||
Other amortization of policy acquisition costs | 0 | |||||
Other operating expenses | -381 | 112 | -203 | |||
Underwriting profit (loss) | -27,971 | -30,430 | -21,283 | |||
Net investment income | 0 | 0 | 0 | |||
Net realized investment gains | 0 | 0 | 0 | |||
Other revenues (insurance) | 1,631 | 1,130 | 0 | |||
Other expenses (insurance) | -37,132 | -28,126 | 0 | |||
Segment profit (loss) | -63,472 | -57,426 | -21,283 | |||
U.S. GAAP combined ratio - not meaniningful | NM | [4],[5] | NM | [4],[6] | NM | [4],[6] |
Investing [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Gross premium volume | 0 | 0 | 0 | |||
Net written premiums | 0 | 0 | 0 | |||
Earned premiums | 0 | 0 | 0 | |||
Losses and loss adjustment expenses, current accident year | 0 | 0 | 0 | |||
Losses and loss adjustment expenses, prior accident years | 0 | 0 | 0 | |||
Transaction costs and other acquisition-related expenses | 0 | [2] | ||||
Amortization of policy acquisition costs | 0 | 0 | ||||
Prospective adoption of FASB ASU No. 2010-26 | 0 | [3] | ||||
Other amortization of policy acquisition costs | 0 | |||||
Other operating expenses | 0 | 0 | 0 | |||
Underwriting profit (loss) | 0 | 0 | 0 | |||
Net investment income | 363,230 | 317,373 | 282,107 | |||
Net realized investment gains | 46,000 | 63,152 | 31,593 | |||
Other revenues (insurance) | 0 | 0 | 0 | |||
Other expenses (insurance) | 0 | 0 | 0 | |||
Segment profit (loss) | $409,230 | $380,525 | $313,700 | |||
[1] | In connection with the acquisition of Alterra, the Company incurred transaction costs of $16.0 million for the year ended December 31, 2013, which primarily consist of due diligence, legal and investment banking costs. Additionally, the Company incurred severance costs of $31.7 million, stay bonuses of $14.8 million and other compensation costs totaling $12.6 million related to the acceleration of certain long-term incentive compensation awards and restricted stock awards that were granted by Alterra prior to the acquisition. | |||||
[2] | In connection with the acquisition of Alterra, the Company incurred transaction costs of $16.0 million for the year ended DecemberB 31, 2013, which primarily consist of due diligence, legal and investment banking costs. Additionally, the Company incurred severance costs of $31.7 million, stay bonuses of $14.8 million and other compensation costs totaling $12.6 million related to the acceleration of certain long-term incentive compensation awards and restricted stock awards that were granted by Alterra prior to the acquisition. | |||||
[3] | Effective January 1, 2012, the Company prospectively adopted FASB ASU No. 2010-26, Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts. At December 31, 2011, deferred policy acquisition costs included $43.1 million of costs that no longer met the criteria for deferral as of January 1, 2012 and were recognized into income during 2012, consistent with policy terms. | |||||
[4] | The U.S. GAAP combined ratio is a measure of underwriting performance and represents the relationship of incurred losses, loss adjustment expenses and underwriting, acquisition and insurance expenses to earned premiums. | |||||
[5] | NM b Ratio is not meaningful | |||||
[6] | NM b Ratio is not meaningful. |
Segment_Reporting_Disclosures_4
Segment Reporting Disclosures (Summary Of Deferred Policy Acquisition Costs, Unearned Premiums And Unpaid Losses And Loss Adjustment Expenses) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Segment Reporting Information [Line Items] | ||||
Deferred policy acquisition costs | $353,410 | $260,967 | $157,465 | $194,674 |
Unearned premiums | 2,245,690 | 2,127,115 | ||
Unpaid losses and loss adjustment expenses | 10,404,152 | 10,262,056 | 5,371,426 | |
U.S. Insurance [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Deferred policy acquisition costs | 165,333 | 151,015 | ||
Unearned premiums | 1,110,910 | 1,058,529 | ||
Unpaid losses and loss adjustment expenses | 3,577,166 | 3,572,667 | ||
International Insurance [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Deferred policy acquisition costs | 47,618 | 50,425 | ||
Unearned premiums | 491,708 | 516,689 | ||
Unpaid losses and loss adjustment expenses | 3,353,417 | 3,399,228 | ||
Reinsurance [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Deferred policy acquisition costs | 140,459 | 59,527 | ||
Unearned premiums | 643,072 | 551,897 | ||
Unpaid losses and loss adjustment expenses | 2,818,792 | 2,811,362 | ||
Other Insurance (Discontinued Lines) [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Deferred policy acquisition costs | 0 | 0 | ||
Unearned premiums | 0 | 0 | ||
Unpaid losses and loss adjustment expenses | $654,777 | $478,799 |
Segment_Reporting_Disclosures_5
Segment Reporting Disclosures (Summary Of Segment Earned Premiums) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Earned premiums | $3,840,912 | $3,231,616 | $2,147,128 |
U.S. Insurance [Member] | |||
Segment Reporting Information [Line Items] | |||
Earned premiums | 2,022,860 | 1,727,766 | 1,360,229 |
U.S. Insurance [Member] | General Liability [Member] | |||
Segment Reporting Information [Line Items] | |||
Earned premiums | 491,645 | 431,798 | 354,003 |
U.S. Insurance [Member] | Professional Liability [Member] | |||
Segment Reporting Information [Line Items] | |||
Earned premiums | 321,005 | 268,203 | 216,234 |
U.S. Insurance [Member] | Property [Member] | |||
Segment Reporting Information [Line Items] | |||
Earned premiums | 266,019 | 190,530 | 141,568 |
U.S. Insurance [Member] | Personal Lines [Member] | |||
Segment Reporting Information [Line Items] | |||
Earned premiums | 299,442 | 185,935 | 86,217 |
U.S. Insurance [Member] | Programs [Member] | |||
Segment Reporting Information [Line Items] | |||
Earned premiums | 244,216 | 205,004 | 135,037 |
U.S. Insurance [Member] | Workers' Compensation [Member] | |||
Segment Reporting Information [Line Items] | |||
Earned premiums | 263,164 | 250,790 | 241,208 |
U.S. Insurance [Member] | Other Products [Member] | |||
Segment Reporting Information [Line Items] | |||
Earned premiums | 137,369 | 195,506 | 185,962 |
International Insurance [Member] | |||
Segment Reporting Information [Line Items] | |||
Earned premiums | 909,679 | 833,984 | 672,405 |
International Insurance [Member] | General Liability [Member] | |||
Segment Reporting Information [Line Items] | |||
Earned premiums | 146,178 | 128,171 | 102,875 |
International Insurance [Member] | Professional Liability [Member] | |||
Segment Reporting Information [Line Items] | |||
Earned premiums | 285,300 | 252,816 | 174,590 |
International Insurance [Member] | Property [Member] | |||
Segment Reporting Information [Line Items] | |||
Earned premiums | 76,691 | 91,497 | 48,483 |
International Insurance [Member] | Marine And Energy [Member] | |||
Segment Reporting Information [Line Items] | |||
Earned premiums | 287,263 | 287,745 | 288,605 |
International Insurance [Member] | Other Products [Member] | |||
Segment Reporting Information [Line Items] | |||
Earned premiums | 114,247 | 73,755 | 57,852 |
Reinsurance [Member] | |||
Segment Reporting Information [Line Items] | |||
Earned premiums | 908,385 | 669,826 | 114,499 |
Reinsurance [Member] | Property [Member] | |||
Segment Reporting Information [Line Items] | |||
Earned premiums | 270,461 | 227,394 | 71,172 |
Reinsurance [Member] | Casualty [Member] | |||
Segment Reporting Information [Line Items] | |||
Earned premiums | 323,390 | 244,981 | 476 |
Reinsurance [Member] | Auto [Member] | |||
Segment Reporting Information [Line Items] | |||
Earned premiums | 152,645 | 84,042 | 21,163 |
Reinsurance [Member] | Other Products [Member] | |||
Segment Reporting Information [Line Items] | |||
Earned premiums | 161,889 | 113,409 | 21,688 |
Other Insurance (Discontinued Lines) [Member] | |||
Segment Reporting Information [Line Items] | |||
Earned premiums | ($12) | $40 | ($5) |
Segment_Reporting_Disclosures_6
Segment Reporting Disclosures (Segment Assets To The Company's Consolidated Balance Sheets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Segment Reporting Information [Line Items] | |||
Assets | $25,200,357 | $23,955,511 | $12,556,588 |
Non-Insurance Operations [Member] | |||
Segment Reporting Information [Line Items] | |||
Assets | 1,246,762 | 936,448 | 891,586 |
Segment Assets [Member] | |||
Segment Reporting Information [Line Items] | |||
Assets | 23,953,595 | 23,019,063 | 11,665,002 |
Segment Assets [Member] | Investing [Member] | |||
Segment Reporting Information [Line Items] | |||
Assets | 18,531,150 | 17,550,332 | 9,277,697 |
Segment Assets [Member] | Underwriting [Member] | |||
Segment Reporting Information [Line Items] | |||
Assets | $5,422,445 | $5,468,731 | $2,387,305 |
Other_Revenues_And_Other_Expen2
Other Revenues And Other Expenses (Summary Of Other Revenues And Other Expenses By Component) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Revenues and Other Expenses [Line Items] | |||
Other revenues | $883,525 | $710,942 | $539,284 |
Other expenses | 854,871 | 663,528 | 478,248 |
Insurance Operations [Member] | |||
Other Revenues and Other Expenses [Line Items] | |||
Other revenues | 28,632 | 24,494 | 49,932 |
Other expenses | 62,834 | 50,278 | 45,292 |
Non-Insurance Operations [Member] | |||
Other Revenues and Other Expenses [Line Items] | |||
Other revenues | 854,893 | 686,448 | 489,352 |
Other expenses | 792,037 | 613,250 | 432,956 |
Managing General Agent Operations [Member] | Insurance Operations [Member] | |||
Other Revenues and Other Expenses [Line Items] | |||
Other revenues | 23,324 | 17,399 | 48,056 |
Other expenses | 22,527 | 20,382 | 43,069 |
Life And Annuity [Member] | Insurance Operations [Member] | |||
Other Revenues and Other Expenses [Line Items] | |||
Other revenues | 1,631 | 1,130 | 0 |
Other expenses | 37,132 | 28,126 | 0 |
Other Insurance [Member] | Insurance Operations [Member] | |||
Other Revenues and Other Expenses [Line Items] | |||
Other revenues | 3,677 | 5,965 | 1,876 |
Other expenses | 3,175 | 1,770 | 2,223 |
Manufacturing [Member] | Non-Insurance Operations [Member] | Markel Ventures Operations [Member] | |||
Other Revenues and Other Expenses [Line Items] | |||
Other revenues | 575,353 | 495,138 | 366,886 |
Other expenses | 513,668 | 437,712 | 328,484 |
Non-Manufacturing [Member] | Non-Insurance Operations [Member] | Markel Ventures Operations [Member] | |||
Other Revenues and Other Expenses [Line Items] | |||
Other revenues | 262,767 | 191,310 | 122,466 |
Other expenses | 261,551 | 175,538 | 104,472 |
Other Non-Insurance [Member] | Non-Insurance Operations [Member] | |||
Other Revenues and Other Expenses [Line Items] | |||
Other revenues | 16,773 | 0 | 0 |
Other expenses | $16,818 | $0 | $0 |
Employee_Benefit_Plans_Narrati
Employee Benefit Plans (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expenses relating to defined contribution plans | $27,200,000 | $24,300,000 | $19,100,000 |
Consecutive number of years | 3 years | ||
Number of years preceding retirement | 10 years | ||
Tax benefit of the net actuarial pension loss recognized as a component of accumulated other comprehensive income | 16,200,000 | 12,400,000 | |
Percentage of reasonable rate of return on fixed maturities | 4.50% | ||
Expected rate at which equity securities outperform fixed maturities in plan assets | 3.50% | ||
Amortization of the net actuarial pension loss included as a component of accumulated other comprehensive income | 2,400,000 | ||
Percentage of equity securities invested in UK companies | 30.00% | ||
Percentage of equity securities invested in other markets | 70.00% | ||
Number of fixed maturity mutual funds | 5 | ||
Accumulated benefit obligation | 166,900,000 | 146,000,000 | |
Expected plan contributions in 2015 | 0 | ||
Expected benefits to be paid in 2015 | 4,000,000 | ||
Expected benefits to be paid in 2016 | 4,100,000 | ||
Expected benefits to be paid in 2017 | 4,100,000 | ||
Expected benefits to be paid in 2018 | 4,200,000 | ||
Expected benefits to be paid in 2019 | 4,300,000 | ||
Aggregate benefits expected to be paid from 2020 to 2024 | $23,100,000 | ||
United Kingdom [Member] | Foreign Governments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of fixed maturity mutual funds | 2 | ||
United Kingdom [Member] | Corporate Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of fixed maturity mutual funds | 1 | ||
Other Foreign Governments [Member] | Foreign Governments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of fixed maturity mutual funds | 1 | ||
United Kingdom And Other Foreign Governments [Member] | Corporate Bond Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of fixed maturity mutual funds | 1 | ||
Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target asset allocation, percent | 46.00% | ||
Actual asset allocation, percent | 43.00% | 63.00% | |
Fixed Maturities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target asset allocation, percent | 54.00% | ||
Actual asset allocation, percent | 57.00% | 37.00% |
Employee_Benefit_Plans_Schedul
Employee Benefit Plans (Schedule Of Amounts Recognized On The Consolidated Balance Sheets) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation at beginning of period | $163,010 | $151,327 | |
Interest cost | 7,572 | 6,533 | 6,815 |
Plan amendments | 495 | 0 | |
Benefits paid | -4,424 | -3,542 | |
Actuarial loss | 29,609 | 5,459 | |
Effect of foreign currency rate changes | -10,706 | 3,233 | |
Projected benefit obligation at end of year | 185,556 | 163,010 | 151,327 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of period | 189,437 | 164,090 | |
Actual gain on plan assets | 22,395 | 19,430 | |
Employer contributions | 5,610 | 5,338 | |
Benefits paid | -4,424 | -3,542 | |
Effect of foreign currency rate changes | -11,619 | 4,121 | |
Fair value of plan assets at end of year | 201,399 | 189,437 | 164,090 |
Funded status of the plan | 15,843 | 26,427 | |
Net actuarial pension loss | 61,378 | 42,941 | |
Total | $77,221 | $69,368 |
Employee_Benefit_Plans_Schedul1
Employee Benefit Plans (Schedule of Defined Benefit Plan Amounts Recognized in Accumulated Other Comprehensive Income) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Tax benefit (expense) | $3,687 | ($1,015) | ($1,991) |
Total other comprehensive income (loss) | 614,752 | 178,468 | 250,417 |
Net Actuarial Pension Loss [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial gain (loss) | -20,521 | 3,146 | 6,065 |
Net actuarial loss | 1,589 | 1,934 | 2,590 |
Prior service costs | 495 | 0 | 0 |
Tax benefit (expense) | 3,687 | -1,015 | -1,991 |
Total other comprehensive income (loss) | ($14,750) | $4,065 | $6,664 |
Employee_Benefit_Plans_Schedul2
Employee Benefit Plans (Schedule Of Net Periodic Benefit Income And Weighted Average Assumptions) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |||
Service cost | $0 | $0 | $361 |
Interest cost | 7,572 | 6,533 | 6,815 |
Expected return on plan assets | -12,812 | -10,825 | -9,788 |
Amortization of prior service cost | 495 | 0 | 0 |
Amortization of net actuarial pension loss | 1,589 | 1,934 | 2,590 |
Net periodic benefit income | ($3,156) | ($2,358) | ($22) |
Discount rate | 3.80% | 4.70% | 4.50% |
Expected return on plan assets, percent | 6.00% | 6.60% | 6.60% |
Rate of compensation increase | 2.90% | 3.20% | 3.10% |
Employee_Benefit_Plans_Summary
Employee Benefit Plans (Summary Of Fair Value Of Plan Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $201,399 | $189,437 | $164,090 |
Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 201,399 | 189,437 | |
Level 1 [Member] | Fixed Maturities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 114,243 | 70,997 | |
Level 1 [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 87,148 | 118,431 | |
Level 1 [Member] | Cash And Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $8 | $9 |
Markel_Corporation_Parent_Comp2
Markel Corporation (Parent Company Only) Financial Information (Schedule Of Condensed Balance Sheets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Fixed maturities | $10,422,882 | $10,142,536 | ||
Equity securities | 4,137,576 | 3,251,798 | ||
Short-term investments (estimated fair value approximates cost) | 1,594,849 | 1,452,288 | ||
Total Investments | 16,155,307 | 14,846,622 | ||
Cash and cash equivalents | 1,960,169 | 1,978,526 | 863,766 | 703,259 |
Restricted cash and cash equivalents | 522,225 | 786,926 | ||
Other assets | 985,834 | 1,067,922 | ||
Total Assets | 25,200,357 | 23,955,511 | 12,556,588 | |
Net deferred tax liability | 310,547 | |||
Other liabilities | 1,051,931 | 777,850 | ||
Total Liabilities | 17,537,307 | 17,205,318 | ||
Total Shareholders' Equity | 7,594,818 | 6,673,577 | ||
Total Liabilities and Equity | 25,200,357 | 23,955,511 | ||
Parent Company [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Fixed maturities | 48,807 | 67,363 | ||
Equity securities | 434,714 | 392,123 | ||
Short-term investments (estimated fair value approximates cost) | 764,953 | 654,971 | ||
Total Investments | 1,248,474 | 1,114,457 | ||
Cash and cash equivalents | 243,702 | 207,352 | 237,816 | 280,604 |
Restricted cash and cash equivalents | 959 | 1,010 | ||
Receivables | 16,110 | 14,326 | ||
Investments in consolidated subsidiaries | 7,560,862 | 6,826,790 | ||
Notes receivable from subsidiaries | 212,631 | 168,611 | ||
Income taxes receivable | 10,951 | 5,320 | ||
Other assets | 93,434 | 102,193 | ||
Total Assets | 9,387,123 | 8,440,059 | ||
Senior long-term debt | 1,635,173 | 1,633,873 | ||
Net deferred tax liability | 74,534 | 40,443 | ||
Other liabilities | 82,598 | 92,166 | ||
Total Liabilities | 1,792,305 | 1,766,482 | ||
Total Shareholders' Equity | 7,594,818 | 6,673,577 | ||
Total Liabilities and Equity | $9,387,123 | $8,440,059 |
Markel_Corporation_Parent_Comp3
Markel Corporation (Parent Company Only) Financial Information (Schedule of Condensed Balance Sheets - Parenthetical) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Condensed Financial Statements, Captions [Line Items] | ||
Fixed maturities, amortized cost | $9,929,137 | $10,129,141 |
Equity securities, cost | 1,951,658 | 1,566,553 |
Parent Company [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Fixed maturities, amortized cost | 47,346 | 66,154 |
Equity securities, cost | $193,864 | $197,549 |
Markel_Corporation_Parent_Comp4
Markel Corporation (Parent Company Only) Financial Information (Schedule Of Condensed Statements Of Income And Comprehensive Income) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||
Net investment income | $363,230 | $317,373 | $282,107 | ||||||||||||
Other-than-temporary impairment losses | -4,784 | -4,706 | -12,078 | ||||||||||||
Net realized investment gains, excluding other-than-temporary impairment losses | 50,784 | 67,858 | 43,671 | ||||||||||||
Net realized investment gains | 46,000 | 63,152 | 31,593 | ||||||||||||
Other | 883,525 | 710,942 | 539,284 | ||||||||||||
Total Operating Revenues | 1,335,755 | 1,299,286 | 1,258,971 | 1,239,655 | 1,279,785 | 1,191,665 | 1,031,769 | 819,864 | 807,955 | 765,775 | 693,247 | 733,135 | 5,133,667 | 4,323,083 | 3,000,112 |
Interest expense | 117,442 | 114,004 | 92,762 | ||||||||||||
Other expenses | 854,871 | 663,528 | 478,248 | ||||||||||||
Total Operating Expenses | 4,575,847 | 3,847,336 | 2,595,300 | ||||||||||||
Income tax benefit | 116,690 | 77,898 | 53,802 | ||||||||||||
Net Income to Shareholders | 117,595 | 75,803 | 40,068 | 87,716 | 98,764 | 65,599 | 27,756 | 88,902 | 56,792 | 49,653 | 89,687 | 57,253 | 321,182 | 281,021 | 253,385 |
Net holding gains arising during the period | 687,735 | 225,545 | 266,425 | ||||||||||||
Reclassification adjustments for net gains (losses) included in net income to shareholders | -26,161 | -40,830 | -24,051 | ||||||||||||
Change in net unrealized gains on investments, net of taxes | 661,747 | 184,574 | 242,214 | ||||||||||||
Change in foreign currency translation adjustments, net of taxes | -32,241 | -10,143 | 1,534 | ||||||||||||
Total Other Comprehensive Income | 614,756 | 178,496 | 250,412 | ||||||||||||
Comprehensive Income to Shareholders | 418,571 | 36,502 | 250,588 | 230,273 | 206,450 | 144,409 | -149,054 | 257,684 | 76,987 | 147,454 | 73,416 | 205,945 | 935,934 | 459,489 | 503,802 |
Parent Company [Member] | |||||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||
Net investment income | 5,354 | 21,946 | 30,619 | ||||||||||||
Dividends on common stock of consolidated subsidiaries | 217,121 | 806,233 | 337,585 | ||||||||||||
Other-than-temporary impairment losses | -120 | -15 | -38 | ||||||||||||
Net realized investment gains, excluding other-than-temporary impairment losses | 3,873 | 67,232 | 14,926 | ||||||||||||
Net realized investment gains | 3,753 | 67,217 | 14,888 | ||||||||||||
Other | 0 | 1 | 3 | ||||||||||||
Total Operating Revenues | 226,228 | 895,397 | 383,095 | ||||||||||||
Interest expense | 94,097 | 92,743 | 87,391 | ||||||||||||
Other expenses | 2,685 | 2,617 | 1,166 | ||||||||||||
Total Operating Expenses | 96,782 | 95,360 | 88,557 | ||||||||||||
Income Before Equity in Undistributed Earnings of Consolidated Subsidiaries and Income Taxes | 129,446 | 800,037 | 294,538 | ||||||||||||
Equity in undistributed earnings of consolidated subsidiaries | 163,341 | -520,323 | -61,663 | ||||||||||||
Income tax benefit | -28,395 | -1,307 | -20,510 | ||||||||||||
Net Income to Shareholders | 321,182 | 281,021 | 253,385 | ||||||||||||
Net holding gains arising during the period | 32,118 | 66,623 | 10,897 | ||||||||||||
Consolidated subsidiaries' net holding gains arising during the period | 655,617 | 158,922 | 255,528 | ||||||||||||
Consolidated subsidiaries' change in unrealized other-than-temporary impairment losses on fixed maturities arising during the period | 173 | -141 | -160 | ||||||||||||
Reclassification adjustments for net gains (losses) included in net income to shareholders | -1,874 | -43,220 | 11,847 | ||||||||||||
Consolidated subsidiaries' reclassification adjustments for net gains (losses) included in net income to shareholders | -24,287 | 2,390 | -35,898 | ||||||||||||
Change in net unrealized gains on investments, net of taxes | 661,747 | 184,574 | 242,214 | ||||||||||||
Change in foreign currency translation adjustments, net of taxes | 1,949 | -2,670 | -242 | ||||||||||||
Consolidated subsidiaries' change in foreign currency translation adjustments, net of taxes | -34,194 | -7,501 | 1,781 | ||||||||||||
Consolidated subsidiaries' change in net actuarial pension loss, net of taxes | -14,750 | 4,065 | 6,664 | ||||||||||||
Total Other Comprehensive Income | 614,752 | 178,468 | 250,417 | ||||||||||||
Comprehensive Income to Shareholders | $935,934 | $459,489 | $503,802 |
Markel_Corporation_Parent_Comp5
Markel Corporation (Parent Company Only) Financial Information (Schedule Of Condensed Statements Of Cash Flows) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Financial Statements, Captions [Line Items] | |||
Net income to shareholders | $321,182 | $281,021 | $253,385 |
Net Cash Provided By Operating Activities | 716,792 | 745,521 | 392,533 |
Proceeds from sales of fixed maturities and equity securities | 1,286,871 | 879,564 | 336,548 |
Proceeds from maturities, calls and prepayments of fixed maturities | 1,420,817 | 1,475,938 | 510,697 |
Cost of fixed maturities and equity securities purchased | -3,153,055 | -1,651,397 | -426,439 |
Net change in short-term investments | -129,164 | -470,423 | -428,292 |
Cost of equity method investments | -16,081 | -38,018 | -40,650 |
Change in restricted cash and cash equivalents | 264,701 | -263,014 | -37,642 |
Additions to property and equipment | -82,132 | -47,725 | -45,519 |
Other | -2,368 | 1,103 | -2,158 |
Net Cash Provided (Used) By Investing Activities | -622,205 | 187,387 | -377,130 |
Additions to senior long-term debt | 89,480 | 547,214 | 492,792 |
Repurchases of common stock | -26,053 | -57,388 | -16,873 |
Issuance of common stock | 5,691 | 24,518 | 9,145 |
Other | -21,357 | -23 | -19,485 |
Net Cash Provided (Used) By Financing Activities | -67,124 | 175,367 | 141,962 |
Increase (decrease) in cash and cash equivalents | -18,357 | 1,114,760 | 160,507 |
Cash and cash equivalents at beginning of year | 1,978,526 | 863,766 | 703,259 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 1,960,169 | 1,978,526 | 863,766 |
Parent Company [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net income to shareholders | 321,182 | 281,021 | 253,385 |
Adjustments to reconcile net income to shareholders to net cash provided by operating activities | -218,396 | 186,574 | -153,773 |
Net Cash Provided By Operating Activities | 102,786 | 467,595 | 99,612 |
Proceeds from sales of fixed maturities and equity securities | 9,306 | 142,259 | 149,314 |
Proceeds from maturities, calls and prepayments of fixed maturities | 15,710 | 2,819 | 64,340 |
Cost of fixed maturities and equity securities purchased | -687 | -23,412 | -139,681 |
Net change in short-term investments | -109,728 | 10,251 | -374,801 |
Securities received from subsidiaries as dividends or repayment of notes receivable | 89,996 | 249,996 | 260,088 |
Decrease in notes receivable due from subsidiaries | 28,506 | 5,302 | 66,802 |
Capital contributions to subsidiaries | -74,788 | -67,878 | -198,349 |
Acquisitions | 0 | -1,017,988 | -100,409 |
Cost of equity method investments | 0 | -5,291 | -38,250 |
Change in restricted cash and cash equivalents | 51 | -348 | -204 |
Additions to property and equipment | -342 | -3,653 | -9,437 |
Other | -2,150 | 3,207 | -4,369 |
Net Cash Provided (Used) By Investing Activities | -44,126 | -704,736 | -324,956 |
Additions to senior long-term debt | 0 | 491,235 | 347,207 |
Repayments and retirement of senior long-term debt | 0 | -246,665 | -157,359 |
Repurchases of common stock | -26,053 | -57,388 | -16,873 |
Issuance of common stock | 5,691 | 24,518 | 9,145 |
Other | -1,948 | -5,023 | 436 |
Net Cash Provided (Used) By Financing Activities | -22,310 | 206,677 | 182,556 |
Increase (decrease) in cash and cash equivalents | 36,350 | -30,464 | -42,788 |
Cash and cash equivalents at beginning of year | 207,352 | 237,816 | 280,604 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | $243,702 | $207,352 | $237,816 |
Quarterly_Financial_Informatio2
Quarterly Financial Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||
Operating revenues | $1,335,755 | $1,299,286 | $1,258,971 | $1,239,655 | $1,279,785 | $1,191,665 | $1,031,769 | $819,864 | $807,955 | $765,775 | $693,247 | $733,135 | $5,133,667 | $4,323,083 | $3,000,112 |
Net income | 118,222 | 76,824 | 41,141 | 87,501 | 98,939 | 66,967 | 28,676 | 89,263 | 58,093 | 51,674 | 90,768 | 57,713 | 323,688 | 283,845 | 258,248 |
Net income to shareholders | 117,595 | 75,803 | 40,068 | 87,716 | 98,764 | 65,599 | 27,756 | 88,902 | 56,792 | 49,653 | 89,687 | 57,253 | 321,182 | 281,021 | 253,385 |
Comprehensive income (loss) to shareholders | $418,571 | $36,502 | $250,588 | $230,273 | $206,450 | $144,409 | ($149,054) | $257,684 | $76,987 | $147,454 | $73,416 | $205,945 | $935,934 | $459,489 | $503,802 |
Basic net income per share (dollars per share) | $8.10 | $5.33 | $2.67 | $6.28 | $6.98 | $4.69 | $2.24 | $9.53 | $6.25 | $5.33 | $8.44 | $5.94 | $22.38 | $22.57 | $25.96 |
Diluted net income per share (dollars per share) | $8.05 | $5.30 | $2.66 | $6.25 | $6.95 | $4.67 | $2.24 | $9.50 | $6.23 | $5.32 | $8.42 | $5.92 | $22.27 | $22.48 | $25.89 |
Common stock price, high (dollars per share) | $707.36 | $666 | $655.75 | $596.87 | $582.59 | $549.09 | $546.94 | $510.05 | $502.20 | $459.90 | $453.50 | $451.90 | |||
Common stock price, low (dollars per share) | $632.65 | $623.90 | $593.76 | $527.17 | $511.06 | $506.64 | $501.76 | $434.98 | $425.17 | $420 | $421 | $398.65 |